Res 2017-084/approving a principal forgiveness agreement with the Texas Water Development Board that forgives an amount not to exceed $961,821 out of $1,961,821 in principal funds to the city from the Clean Water State Revolving Fund to finance the planni

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NOW THEREFORE,based on these findings,the TWDB resolves as follows: A commitment is made by the TWDB to the City of San Marcos for financial assistance in the amount of $1,961,821 from the Clean Water State Revolving Fund through the TWDB's proposed purchase of $1,000,000 City of San Marcos, Texas Water and Wastewater System Revenue Bonds, Proposed Series 2017B and the execution of a Principal Forgiveness Agreement in the amount of $961,821. This commitment will expire on July 31, 2017. Such commitment is conditioned as follows: Standard Conditions 1. this commitment is contingent on a future sale of bonds by the TWDB or on the availability of funds on hand; 2. this commitment is contingent upon the issuance of a written approving opinion of the Attorney General of the State of Texas stating that all of the requirements of the laws under which said Obligations were issued have been complied with; that said Obligations were issued in conformity with the Constitution and laws of the State of Texas; and that said Obligations are valid and binding obligations of the City; 3. this commitment is contingent upon the City's compliance with all applicable requirements contained in 31 TAC Chapter 375; 4. the Obligations must provide that the Obligations can be called for early redemption only in inverse order of maturity, and on any date beginning on or after the first interest payment date which is 10 years from the dated date of the Obligations, at a redemption price of par,together with accrued interest to the date fixed for redemption; 5. the City, or an obligated person for whom financial or operating data is presented to the TWDB in the application for financial assistance either individually or in combination with other issuers of the City's Obligations or obligated persons, will, at a minimum, regardless of the amount of the Obligations, covenant to comply with requirements for continuing disclosure on an ongoing basis substantially in the manner required by Securities and Exchange Commission (SEC) in 17 CFR § 240.15c2-12 (Rule 15c2-12) and determined as if the TWDB were a Participating Underwriter within the meaning of such rule, such continuing disclosure undertaking being for the benefit of the TWDB and the beneficial owners of the City's Obligations, if the TWDB sells or otherwise transfers such Obligations, and the beneficial owners of the TWDB's bonds if the City is an obligated person with respect to such bonds under SEC Rule 15c2-12; Porn 6. the Obligations must contain a provision requiring the City to levy a tax and/or maintain and collect sufficient rates and charges to produce system revenues in an amount 2 TWDB Commitment No.L1000601 Exhibit A,Page 3 of 10