Ord 2022-005/Granting the Consent of the city of San Marcos to the creation of Hays County Municipal Utility District No. 8 including approx 567.663 Acreas vicinity of old Bastrop Hwy. Between Redwood Rd and San Marcos River.

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Section 5.01 Bonds. The District may issue bonds or notes for any purpose authorized by law, including, but not limited to, financing water, wastewater, drainage and storm sewer facilities, road facilities, and parks and recreational facilities, if applicable in the ftiture. Section 5.02 Bond Requirements. All bonds issued by the District will be offered on terms and conditions generally accepted in the bond market for similar types of districts, at a net effective interest rate, taking into consideration any applicable discount or premium, not to exceed 2% above the highest average interest rate reported by the Daily Bond Buyer in its weekly "20 Bond Index" during the one-month period immediately preceding the date notice of the sale of the bonds is given. Additionally, all bonds issued by the District will comply with the following requirements: (a) the maximum maturity of any one series of bonds will not exceed 25 years from the date of issuance of such series of bonds; (b) the bonds will expressly provide that the District reserves the right to redeem the bonds at any time beginning not later than the 15th anniversary date of issuance, without premium; and (c) no variable rate bonds will be issued by the District. Any refunding bonds of the District must provide for a minimum of three percent (3%) present value savings and the latest maturity of the refunding bonds may not extend beyond the latest maturity of the refunded bonds, without the City's approval. Section 5.03 Other Funds. The District may obtain and use funds and assets from any available, lawful source to provide for the acquisition, ownership, maintenance, and operation of its facilities, as well as to accomplish any purpose or to exercise any function, act, power, or right authorized by law. Such funds and assets may include revenues from any of the systems, facilities, properties, and assets of the District not otherwise committed for the payment of indebtedness of the District; maintenance taxes; loans, gifts, grants, and donations from public or private sources and revenues from any other source lawfully available to the District. Section 5.04 Economic Feasibility. At least thirty (30) days before the issuance of any bonds by the District, except refunding bonds, the District's financial advisor shall certify in writing to the City that the bonds are being issued within the then -current economic feasibility guidelines established by the Commission, if applicable, for districts in Hays County, Texas. The District shall deliver the certification to the City clerk, City manager, and City director of finance. Section 5.05 Notice of Bond Issues. At least thirty (30) days before the issuance of any bonds by the District, the District shall deliver to the City manager and City attorney notice of the amount of bonds being proposed for issuance, the projects to be funded by such bonds, and the proposed debt service tax rate after issuance of such bonds. Within thirty (30) days after the District closes the sale of a series of bonds, the District shall deliver to the City manager a copy of the final official statement for such series of bonds. If the City requests additional information regarding such issuance, the District shall provide such information as reasonably requested by the City at no cost to the City. Section 5.06 Compliance with A14reements. At least thirty (30) days before the issuance of any bonds by the District, the District shall certify in writing to the City that the District is in substantial compliance with the Consent Ordinance and this Agreement. 4 964507_3