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RESOLUTION NO. 1980-54R 95 A RESOLUTION by the City Council of the City of San Marcos Texas, relating to the industrial or manufacturing project for the use of Thermon Manufacturing Company approving and providing for the issuance of bonds. I WHEREAS, the City of San Marcos Industrial Development Corporation (the "Authority") has been heretofore created and established under the Development Corporation Act of 1979 (the "ACT") and has entered into a contract (a copy of which is on file with the City Secretary of this City) with Thermon Manufacturing Company whereby the Authority has agreed to issue its revenue supported bonds for the purpose of defraying a part of the cost of acquiring land, buildings, facilities and improvements found by the governing body of the Issuer to be required and suitable for the promotion of industrial development and for use by a manufacturing industrial or commercial enterprise; and WHEREAS, the said Authority has adopted a resolution to authorize the issuance of bonds for the aforesaid purpose and has filed a copy of the same with the City Secretary of the City of San Marcos as well as with the Secretary of its Board of Directors, and it is now proper for this Council to approve the bond resolution as authorized by Section 25(f) of Article 5190.6, V.A.T.C.S.; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: I SECTION 1: That the prior agreement of the Authority (the Issuer) to issue bonds in the amount of $2,500.000 for the purpose of defraying a part of the cost of acquiring land, bmildings, facilities and improvements found by the governing body of the Issuer to be required and suitable for the promotion of industrial development and for use by a manufacturing or industrial enterprise and the said resolution providing for the issuance of bonds to provide for the Project~ as defined in the Act, are hereby approved, subject to final approval by the Texas Industrial Commission of said bonds in said amount. SECTION 2: The approval herein given is by virtue of the provisions of Section 25(f) of the Act, and is not to be con- strued as any undertaking by the City of San Marcos, Texas The City, as sponsor of the Issuer, is governed by the provisions of the Texas Constitution (Article XI, Sections 5 and 7) which prohibit the creation of debt (any obligation payable from ad valorem taxes that is not payable within the current fiscal year) without provision being made for its payment for the levy of taxes at the time the obligation is incurred. This City has made no tax levy for the payment of any obligation hereunder and has expressly refused to make any such tax levy nor will it ever apply any other of its funds for such purpose. I