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<br />ARTICLE II
<br />
<br />SECURITY FOR THE BONDS
<br />
<br />Section 2.01. Tax Levv for Payment of the Bonds.
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<br />(a) The City Council hereby declares and covenants that it will provide and levy a tax legally and
<br />fully sufficient for payment of the Bonds, it having been determined that the existing and available taxing
<br />authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all
<br />other outstanding obligations of the City.
<br />
<br />(b) In order to provide for the payment of the debt service requirements on the Bonds, being (i) the
<br />interest on the Bonds and (ii) a sinking fund for their payment at maturity or a sinking fund of two percent
<br />(whichever amount is the greater), there is hereby levied for the current year and each succeeding year
<br />thereafter, while the Bonds or interest thereon remain outstanding and unpaid, a tax within legal limitations
<br />on each $1 00 valuation of taxable property in the City that is sufficient to pay such debt service requirements,
<br />full allowance being made for delinquencies and costs of collection.
<br />
<br />(c) The tax levied by this Section shall be assessed and collected each year and applied to the
<br />payment of the debt service requirements on the Bonds, and the tax shall not be diverted to any other
<br />purpose.
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<br />ARTICLE III
<br />
<br />AUTHORIZATION; GENERAL TERMS
<br />AND PROVISIONS REGARDING THE BONDS
<br />
<br />Section 3.01. Authorization.
<br />
<br />The City's bonds to be designated "City of San Marcos, Texas, General Obligation Refunding and
<br />Improvement Bonds, Series 1999," are hereby authorized to be issued and delivered in accordance with the
<br />Constitution and laws of the State of Texas, including particularly Tex. Rev. Civ. Stat. Ann. art. 1175, as
<br />amended, and Tex. Rev. Civ. Stat. Ann. art. 717k, as amended. The Bonds shall be issued in the aggregate
<br />principal amount of $12,795,000 for the following purposes: (i) $6,060,000 for the purpose of providing
<br />funds to refund the Refunded Obligations and (ii) $6,735,000 for the purposes as follows: $4,110,000 for
<br />constructing, reconstructing and improving city streets and acquiring land and interests in land necessary
<br />therefor, including improving and extending River Road, improving Davis Street, improving and extending
<br />Aquarena Springs Drive, and reconstructing and improving Holland Street and Bishop Street, $1,415,000
<br />for constructing, reconstructing and improving Furman, Allen, Clyde, Delmar, Hamilton, Marlton and Earle
<br />streets in the Westover area, including the construction and installation of related water and wastewater lines
<br />and facilities and drainage facilities, and $1,210,000 for constructing, improving and equipping fire stations
<br />in said city and purchasing land and interests in land and properties necessary therefor.
<br />
<br />Section 3.02. Date. Denomination, Maturities, Numbers and Interest.
<br />
<br />(a) The Bonds shall have the Original Issue Date of February 1, 1999, shall be in fully registered
<br />form, without coupons, in the denomination of$5,000 or any integral multiple thereof, and shall be numbered
<br />separately from one upward or such other designation acceptable to the City and the Paying Agent/Registrar.
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