Extract to table

Each Participating District is a party to a long-term Wholesale Water Treatment Services Agreement with CSIA, under which the Participating District agrees to pay its proportionate share of CSIA's costs of operation, maintenance, and debt service in exchange for wholesale water treatment services

Under a rate-setting covenant, CSIA is required to set rates at levels reasonably expected to produce the required coverage

40 times aggregate annual parity debt service, CSIA is required to: (a) Retain an independent financial consultant — which may be Clearfield Municipal Advisors LLC (Kenneth W

It should be noted that the consultant's covenant is a process-oriented requirement — CSIA must retain the consultant and take corrective action, but the covenant does not require that the corrective action guarantee restoration of the 1

This design choice creates a unified standard: the same level of coverage that CSIA must maintain on an ongoing basis under the Rate Covenant is also the threshold that must be satisfied before new parity debt can be incurred

The alignment of these two thresholds ensures internal consistency in the covenant framework and avoids the anomaly that would arise if CSIA could issue Additional Bonds at a lower coverage threshold than it is required to maintain on an ongoing basis (or vice versa)