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A. The Stormwater Utility shall constitute an enterprise of the Town. The Town, may issue its own revenue bonds or other obligations (including refunding securities) on behalf of the Town. The revenue bonds or other obligations shall be payable solely from the net revenues derived from the operation of the Stormwater Utility. Such revenue bonds or other obligations may be additionally secured by mortgages on or security interest in any real or personal property of the Town used in the operation of the Stormwater Utility. The ordinance issuing any such revenue bonds or other obligations shall be adopted in the same manner and shall be subject to referendum to the same extent as any ordinance of the Town in accordance with Arizona law.

B. Any pledge of net revenues derived from the operation of the Stormwater Utility shall be subject to limitations on future pledges thereof contained in any ordinance authorizing the issuance of outstanding bonds or other obligations of the Town payable from the same source or sources. All bonds or other obligations issued by ordinance payable from the net revenues derived from the operation of the Stormwater Utility and all revenue bonds or other obligations of the Stormwater Utility payable solely from the net revenues derived from the operation of the Stormwater Utility, shall be treated as having the same obligor and as being payable in whole or in part from the same source or sources.

C. The Stormwater Utility shall also be authorized to have and exercise the following powers in furtherance of its purpose: 1) to hold meetings concurrently with regular and special meetings of the Town Council; 2) to have and use a seal; 3) to issue its revenue bonds for stormwater purposes in the manner in which Town revenue bonds may be issued; 4) to pledge any revenues of the Town’s stormwater system to the payment of such revenue bonds and to pay such revenue bonds therefrom; 5) to enter into contracts relating to the stormwater system in the manner in which Town contracts may be entered into; 6) to make representations, warranties, and covenants relating to the stormwater system on behalf of the Town; 7) to exercise rights and privileges of the Town relating to the stormwater system; and 8) to bind the Town to perform any obligation relating to the stormwater system other than the multiple-fiscal year direct or indirect debt or other financial obligation(s) of the Town without adequate present cash reserves pledged irrevocably and held for payments in all future years.

D. All revenues and expenditures of the Town, or of the Stormwater Utility relating to the stormwater system, shall be considered revenues and expenditures of the Stormwater Utility. ((O)01-15, 06/20/2001)