CT2017-917 Parity Lien Bond Certificate

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Agreement, the 2009 Base Loan Agreement, the 2010 Loan Agreement and 2013 Loan Agreement also use the defined term "Pledged Property" to mean the Net Revenues. As of the date of this certificate, the City has represented to me that there are outstanding no obligations payable out of, or secured by a lien or charge on the Net Revenues or Pledged Property other the Outstanding Parity Obligations and the 2016 Promissory Note(when issued and outstanding). 3. Additional Parity Obligation Tests. In order to issue the 2016 Promissory Note with a lien that is equal to and on a parity with the lien of the Outstanding Parity Obligations, the following tests must be met for the respective Outstanding Parity Obligations (as used in this Section 3, the term "Test Period" means the consecutive twelve-month period ended December 31,2015): (i) Series 2009 Bonds. The Net Revenues for the Test Period must have been equal to at least 125%of the sum of the maximum amount of principal of and interest due or to become due on the Outstanding Parity Obligations and the 2016 Promissory Note during each calendar year following the date of issuance of the 2016 Promissory Note; provided that in calculating the Net Revenues during the test period, the City may add an amount by which the City reasonably estimates the Net Revenues would have been increased during the test period from any increase in rates, fees, and charges for services furnished by or the use of the System (as defined in Ordinance No. 1124) during or since said test period, the effect of which is to estimate a sum which would have been realized had the increase been in effect during the entire test period. (ii) 2009 ARRA Bond, 2009 Base Bond and 2010 Bond. The Net Revenues for the Test Period must at least equal to the sum of 110% of the maximum annual debt service due in any one year on the Outstanding Parity Obligations and the 2016 Promissory Note. In calculating revenue coverage for purposes of the issuance of the 2016 Promissory Note, Net Revenues may be adjusted to reflect any rate increases adopted in connection with the issuance of 2016 Promissory Note by adding to the actual Net Revenue for the Test Period an estimated sum equal to 100% of the estimated increase in Net Revenues that would have been realized during such period had the adopted rate increase been in effect during all of such period. (iii) 2013 Promissory Note. The Net Revenues for the Test Period must at least equal to the sum of the maximum annual debt service due in any one year on the Outstanding Parity Obligations and the 2016 Promissory Note, and all required deposits to the reserve fund required by the 2013 Loan Agreement. The analysis of revenues is to be based upon the City's current rate structure or the rate structure most recently adopted. No more than ten percent of total revenues may originate from tap or connection fees. 4. Test Period Financial Information. Based upon unaudited financial information for the consecutive twelve-month period ended December 31, 2015, adjusted Net Revenues for such period was $806,896 (which amount comprised of Gross Revenue of $2,263,880, less Operation and Maintenance Expenses of $1,456,984. Not more than ten percent of the Gross Revenue originated from tap and/or connection fees. 2 4836-8899-7676.1