21 ATTACHMENT 3 - Laserfiche WebLink

21 “Rate Covenant Debt Service” is defined to mean (1) Amounts payable by DSRSD, for itself and on behalf of Pleasanton, as the Fixed Cost Allocation for Debt Service; plus (2) Debt Service on Obligations of DSRSD that are payable from Charges; less the Actual Rate Stabilization Fund Draw; see “- Rate Stabilization Fund” below. “Regional Capacity Reserve Fees” is defined in the Sewer Service Contract to mean the connection fees described in Section 10(a) of the Regional Agreement, whether levied and collected by Pleasanton or DSRSD. The term Regional Capacity Reserve Fee – which is used to fund expansion of the Regional Facilities -- does not include the Regional Capacity Reserve Buy-In Fee, which is used to fund replacement of the Regional Facilities. Rate Stabilization Fund General. A Rate Stabilization Fund is maintained by DSRSD. The amount on deposit in the Rate Stabilization Fund was $50,361,849 as of June 30, 2021. The importance of the Rate Stabilization Fund is that DSRSD and Pleasanton are obligated to deposit Regional Capacity Reserve Fees in the Rate Stabilization Fund held by DSRSD and that amounts in the Rate Stabilization Fund are available – but not pledged – to pay debt service on the 2021 Bonds (as described in more detail below). Provisions Governing Rate Stabilization Fund. Generally, in calculating annual debt service for purposes of the rate covenant for DSRSD/Pleasanton, a credit is given for transfers from the Rate Stabilization Fund to pay Expansion Project Debt Service in advance of each Bond Year. See “- Rate Covenants” above. The Sewer Service Contract defines "Expansion Project Debt Service" as, for any period, the aggregate of Debt Service due in such period on Expansion Project Bonds (i.e., Bonds issued to finance the LAVWMA Expansion Project). Although the amounts in the Rate Stabilization Fund, if any, may be used to pay debt service on the Bonds, the Rate Stabilization Fund is not pledged to the Bonds, and amounts in the Rate Stabilization Fund can be used for the purposes described below. Accordingly, there can be no assurance as to the future balances of the Rate Stabilization Fund or whether any amounts on deposit in the Fund will be applied to pay debt service on the Bonds. Provisions that govern the use of the Rate Stabilization Fund include the following: (1) All Regional Capacity Reserve Fees, whether collected by DSRSD or collected by Pleasanton and paid to DSRSD, are required to be deposited into the Rate Stabilization Fund. (2) All amounts in the Rate Stabilization Fund are required to be available to pay the following: (a) Expansion Project Debt Service (i.e., debt service allocable to the Expansion Project); (b) Bond Redemptions; (c) any capital improvements permitted to be paid for from the Regional Capacity Reserve Fees under the Regional Agreement, as well as any reimbursement of replacement reserves and any funds other than Regional