10-82 Issue Hospital Improvement Bonds

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(1) The depreciation of the Hospital Facilities ("Depreciation"), assuming no further capital expenditures, for each Year commencing with the Year for which the Schedule is prepared and ending with the Year in which all Bonds will cease to be outstanding, calculated in accordance with generally accepted accounting principles. (2) The principal amount of Bonds to be resired in each such Year ("Principal Require- ments''). (3) A comparison of Depreciation, as shown in (1) above, with Principal Requirements as shown mn (2) above, showing those Years in which Depreciation exceeds Principal Requirements ("Ex- cess Depreciation Years"), and those Years in which Principal Requirements exceed Depreciation ("Depreciation Shortfall Years"), and showing for each Excess Depreciation Year the amount by which Depreciation exceeds Principal Requirements ("Ex- cess Depreciation") and fox each Depreciation Shortfall Year the amount by which the Principal Requirements exceed Depreciation ("Depreciation Shortfall"). (4) The sum of the present values on the first day of the first Depreciation Shortfall Year of Depreciation Shortfall for each such Year, assuming a zero per cent (-O-K) annual discount ra~e, adjusted by first deducting the amount in the Debt Service Reserve Fund which may be used for the payment of the principal of the Bonds in any Depreciation Shortfall Year ("Deductible Amount") from annual Depreciation Shortfalls, beginnin~ with the last such Depreciation Short- fall and proceeding similarly in inverse chrono- logical order until the Deductible Amount is exhausted ("Adjusted Depreciation Shortfall"). (5) The sum of the future values on the first day of the first Depreciation Shortfall Year of Excess Depreciation for each Excess Deprecia- tion Year, assuming a zero per cent (-0-K) annual rate of return. (6) The ratio determined by dividing the sum of the present values of the Adjusted Depreciation Shortfall by the sum of the future values of the Excess Depreciation. (7) A schedule of annual deposits to the Depreciation Reserve Fund for each Excess Depreciation Year calculated by multiplying the ratio mentioned in (6) above by the Excess Depre- ciation in each Excess Depreciation Year as men- tioned in (3) above. In the event that the comparison set forth in (3) above indicates that all of the Excess Depreciation Years do not precede all of the Depreciation Shortfall Years, adjustments in the calculations contained in the Schedu].e of Depreciation and Principal Requirements, taking