Ord 2013-022/Electric Utility System Revenue Financing Program

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ORDINANCE NO. 2013-22 MASTER ORDINANCE ESTABLISHING THE CITY OF SAN MARCOS, TEXAS ELECTRIC UTILITY SYSTEM REVENUE FINANCING PROGRAM THE STATE OF TEXAS § COUNTIES OF HAYS, CALDWELL AND GUADALUPE § CITY OF SAN MARCOS § WHEREAS, the City of San Marcos (the "City ") has previously paid off its electric utility debt; and WHEREAS, in order to reduce costs, increase borrowing capacity and provide the City with greater financial flexibility, the City desires to establish a new electric utility system financing program (the "Electric Utility System Revenue Financing Program" or the "Financing Program ") pursuant to which the City may issue obligations, including bonds, notes and other public securities and execute credit agreements, secured by and payable from a pledge of and first lien on all or part of the Security; and WHEREAS, Chapter 1502, Texas Government Code, as amended (the "Enabling Act "), authorizes the City to issue obligations secured by and payable from a pledge of and first lien on all or part of the Security, as hereinafter defined, which includes a first lien on the Net Revenues of the Electric Utility System, both as hereinafter defined, is junior to the lien securing the Prior Obligations and which obligations may be issued in multiple series and issues from time to time for one or more purposes authorized by law including to: (i) pay all or part of the costs of acquiring, purchasing, constructing, improving, renovating, enlarging or equipping property, buildings, structures, facilities or related infrastructure for an electric utility system; (ii) create debt service reserve accounts; (iii) pay interest on obligations for the period authorized by State law; (iv) refund or cancel outstanding obligations; and (vi) pay the City's costs of issuance; and WHEREAS, the Debt, as hereinafter defined, issued pursuant to this Master Ordinance shall be secured by a first lien upon the Net Revenues of the Electric Utility System; and WHEREAS, simultaneously with the adoption of this Master Ordinance, the City is adopting the First Supplement authorizing the initial series of obligations to be issued pursuant to the Financing Program; and WHEREAS, the terms used in this Master Ordinance, including this preamble, and not otherwise defined shall have the meaning given in Exhibit "A" to this Master Ordinance attached hereto and made a part hereof. NOW THEREFORE, BE IT ORDAINED BY THE CITY OF SAN MARCOS, TEXAS THAT: SanMARCOS1ElectricUti )SysRevBonds12013: MasterOrdinance