Ord 2023-042 authorizing the issuance and sale of an amount not to exceed $1,120,000.00 of Combination Tax and Surplus Revenue Certificates of Obligation, Series 2023

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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 2023 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 and acquisition 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 indemn 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) 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 Construction Fund which are required to be rebated to the United States of America pursuant to Section 14 hereof in order to prevent the Certificates from being arbitrage Certificates shall be transferred to the "Rebate Fund" hereinafter established and shall not be considered as interest earnings for purposes of this subsection. 15 SAN MARCOS(TWDB)CTRCO 2023&2023A:Ordinance($1,120,000)