rtt

/ (i)

ResolutionNo. 7-{

RESOLUTION REQUESTING TEXAS WATER DEVELOPMENT BOARD

CONSENT TO ISSUANCE OF'PARITY OBLIGATIONS

WHEREAS,pursuanttoOrdinanceNo. 107("OrdinanceNo. 107")adoptedonMarch26, 1998,the

City Council(the"City Council")of the City of PelicanBay,Texas(the"City"), authorized the issuanceand
saleofthe Crty's Combination Tax andRevenue of Obligation,Series1998-8(the"Series1998-8
Certificates
Certificates")for the pupose of obtainingfundsto purchasea water systemfor the City;

WHEREAS, theSeries1998-8Certificates weresoldanddelivered to theTexasWaterDevelopment

Board (the "Board") attdthe Boardis the ownerof all of the outstandingCertificates;

WHEREAS,the Series1998-8Certificates are securedby andpayablefrom a levy of ad valorem

of the Crty's waterworksand sewersystem (the "Net
taxes and a first lien pledgeof the net revenues
Revenues");

WHEREAS, in OrdinanceNo. 107,the City reservedthe right, subjectto the written consentof the
by andpayablefrom a first lien pledgeof theNet Revenues;
Board,to issueadditionalobligationssecured

WHEREAS, the City has receiveda loan commitrnentfrom the United StatesDeparftnentof
Agriculture, suchloanto beevidenced
bythe issuanceofthe City's CombinationTax andRevenueCertificates
of Obligation,Series1999(the"Series1999Certificates");

WHEREAS, the Series1999Certificatesareto be securedby andpayablefrom, in additionto a levy

of ad valoremtaxes,a first lien pledgeof theNet Revenues
on a parity with the Series1998-8Certificates;

WHEREAS, this City Councilherebyfindsanddetermines that it is necessaryandinthe bestinterest

to requestthe
ofthe City andits inhabitants Board'sconsenttotheissuance ofthe Series1999Certificateson
parity with the Series1998-8Certificates;
and

WHEREAS, it is officially found,determined,

anddeclaredthat the meetingat whichthis Resolution
hasbeenadoptedwasopento thepublicandpublicnoticeof thetime,placeandsubjectmatterof thepublic
businessto be consideredandacteduponat saidmeeting,includingthis Ordinance,was given,all as required
by the applicableprovisionsof Tex.Gov't CodeAnn. ch. 55I . Now, Therefore

BE IT RESOLVEDBY THE CITY COUNCILOF CITY OF PELICANBAY:

SECTION l. The declarations, determinations and findingsdeclared,made and found inthe

preambleto this Resolutionareherebyadopted,restatedandmadea part ofthe operativeprovisionshereof.

SECTION 2. The Mayor is herebyauthorizedanddirectedto requestthe Boardto consentto the

issuanceofthe Series1999Certificatespayablefromandequallyandratablesecured, withoutpreference,
by
a first lien pledgeofthe Net Revenues
on a paritywith the Series1998-8Certificates.

C :Vg\clients\pelibay\co's99\docsVes-pa
 PASSED,APPROVEDAND EFFECTMEthis

ATTEST:

)
,/: ,,'''' ,/
,1-T* (-, r,17-
City Secretarl, (i6 of PelicanBay, Texas
ISEAL]

C :Vg\clients\pelibay\co's99\docs\res-pu