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WHEREAS, pursuant to the provisions of the Interlocal Cooperation Act and the other
<br />laws of the State, the Authority and the Original Participating Members have previously entered
<br />into the Original Contract, as amended, as a taxable take -or -pay contract pursuant to which the
<br />Authority agreed to plan, design, acquire, construct, finance, and refinance treatment facilities,
<br />water supply pipelines, booster pumps, other appurtenances, and necessary easements and other
<br />interests in land, including water rights acquisitions for the Hays/Caldwell Area Water Treatment
<br />Plant (the "Original Project") and pursuant to such terms the Original Participating Members
<br />would agree to make payments to or on behalf of the Authority in amounts sufficient to meet all
<br />of the Authority's obligations relating to bonds issued to finance the Original Project and to operate
<br />and maintain the Original Project; and
<br />WHEREAS, the Board has previously approved and issued, upon the request of the
<br />Original Participating Members, the following series of revenue bonds pursuant to the Original
<br />Contract to finance (or refinance) the costs of the Original Project: (i) "Taxable Contract Revenue
<br />Bonds (Hays/Caldwell Counties Area Project), Series 1999" (the "Series 1999 Bonds"); (ii)
<br />"Taxable Contract Revenue Bonds (Hays/Caldwell Counties Area Project), Series 2001" (the
<br />"Series 2001 Bonds"); (iii) "Original Contract Revenue Bonds (Hays/Caldwell Counties Area
<br />Project), Series 2003" (the "Series 2003 Bonds"); (iv) "Taxable Contract Revenue Refunding
<br />Bonds (Hays/Caldwell Counties Area Project), Series 2005" (the "Series 2005 Bonds"); and (v)
<br />"Taxable Contract Revenue Bonds (Hays/Caldwell Counties Area Project), Series 2017" (the
<br />"Series 2017 Bonds"); and
<br />WHEREAS, the Board has previously approved and issued, upon the request of County
<br />Line SUD, Crystal Clear SUD, and Maxwell SUD, its "Taxable Contract Revenue Bonds (San
<br />Marcos River Rights Project), Series 2008" (the "Series 2008 Bonds" or "Special Project Bonds")
<br />in an initial amount of $3,200,000 (of which $2,320,000 is currently outstanding) pursuant to the
<br />Original Contract for the purposes of financing the acquisition of certain San Marcos River water
<br />rights for the three Participating Members listed above;
<br />WHEREAS, the Series 2003 Bonds, Series 2005 Bonds, and Series 2017 Bonds are
<br />currently outstanding in the aggregate principal amount of $7,665,000 (the "Outstanding Bonds");
<br />and
<br />WHEREAS, the Contracting Parties have requested that the Authority upgrade and expand
<br />the Original Project to (i) increase the capacity of the Hays/Caldwell Area Plant from 2,908 acre
<br />feet to 4,468 acre feet, and (ii) install additional disinfection, storage and sludge handling
<br />improvements along with new raw water intake infrastructure (the "2020 Project", and together
<br />with the Original Project, the "Project") which will allow the Contracting Parties the ability to
<br />purchase treated water from the Authority; and
<br />WHEREAS, the City will make a cash contribution to the Authority in the amount of
<br />$7,918,624, which amount represents a City contribution to the Original Project ($2,772,049) and
<br />a City Contribution to the 2020 Project ($5,146,575) (which includes a City contribution to "pay
<br />down" the cost of the 2020 Project ($511,593) so that the Series 2021 Bonds (as defined herein)
<br />can be issued on a tax-exempt basis); and
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