Ord 2018-044/authorizing the issuance of the City of San Marcos Combination Tax and Surplus Revenue Certificates of Obligation, Series 2018

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filing requirements of Chapter 9, Texas Business &Commerce Code, then, in order to preserve to the registered owners of the Certificates the perfection of the security interest in said pledge, the Issuer agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Business & Commerce Code and enable a filing to perfect the security interest in said pledge to occur. Section 9. REVENUES; RATES AND CHARGES. (a) That the Certificates of Obligation are additionally secured by and shall be payable from the Surplus Revenues. The Surplus Revenues are pledged by the Issuer pursuant to authority of Chapter 1502, Texas Government Code. (b)The City covenants and agrees with the holders of the Certificates that it will at all times charge and collect rates and charges in connection with its ownership and operation of the System as will be at least sufficient to produce revenues, after payment of the costs of operating and maintaining the System, in an amount not less than 1.10 times debt service requirements of all outstanding debt of the Issuer which is secured in whole or in part by a pledge of revenues of the System, for which the City is budgeting the repayment of such obligations from the revenues of the System,or the City shall prepare and provide documentation to any holder of a Certificate who requests same, which evidences the levy and collection of an ad valorem tax rate dedicated to the Interest and Sinking Fund, in conjunction with any other legally available funds except System rates and charges, sufficient for the repayment of System debt service requirements. Section 10. SECURITY FOR FUNDS. That the Interest and Sinking Fund created by this Ordinance shall be secured in the manner and to the fullest extent permitted or required by law for the security of public funds, including the Public Funds Collateral Act, Chapter 2257, Government Code, as amended, as applicable, and the Interest and Sinking Fund shall be used only for the purposes and in the manner permitted or required by this Ordinance. Section 11. CONSTRUCTION FUND. (a) That there is hereby created,established and maintained on the books of the City, a separate fund to be entitled the "City of San Marcos, Texas Series 2018 Certificates of Obligation Construction Fund" (hereinafter called the "Construction Fund"). (b) Proceeds of the Certificates deposited for credit to the Construction Fund shall be used by the City for payment of the costs of paying contractual obligations incurred in connection with: (1) planning, acquisition, design and construction of certain drainage and flood control improvements to include nonpoint source pollution flood mitigation improvements and acquisitions of land,and(2)the payment of professional services in connection therewith including legal, fiscal and engineering fees and the costs of issuance in connection with the Certificates. (c) Any surplus proceeds,including the investment earnings derived from the investment of monies on deposit in the Construction Fund, from the Certificates remaining on deposit in the Construction Fund after completing the improvements described herein and upon the completion of the final accounting as described in Section 16(c)hereof, shall be transferred to the Interest and Sinking Fund to (1) redeem, in inverse order of maturity, the Certificates owned by TWDB; (2) I pay capitalized interest, if any, or principal on Certificates owned by TWDB; or, (3) pay for eligible project costs as authorized by the Executive Administrator. The foregoing notwithstand- ing, it is further provided, however, that any interest earnings on monies on deposit in the 15 SAN MARCOS(TWDB)CIRCO 2018:Ordinance