ORDER NO. 26895 LAKE INGRAM ESTATE ROAD DISTRICT TAX ROAD BONDS On this the 26th day of February 2001,upon motion made by Commissioner Griffin, seconded by Commissioner Letz, the Court unanimously approved by a vote of 4-0-0, to approve the resolution authorizing the issuance of $225,000.00 in principal amont of Lake Ingram Estates Road District Unlimited Tax Road Bonds, series 2001, authorizing the execution of the pay agent/registrat agreement and other matters related to the subject COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOC[7MENTS TO BE REVIEWED BY THE COURT. ~- MADE BY: Fred Henneke OFFICE: Cs4iltll~e C ~ .~ .~ , ~~ `/ ~~ MEETING DATE: February 26, 2001 TIME PREFERRED: SUBJECT: (PLEASE BE SPECIFIC) Consider and discuss Resolution authorizing the issuance of $225,000 in principal amount of Lake Ingram Estates Road District Unlimited Tax Bonds, Series 2001, authorizing the execution of a paying agentlregistrar agreement, and containing other matters related to the subject. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: Bob Henderson/Tom Spurgeon 5:00 P.M. previous Tuesday. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepazed for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards you request being addressed at the eazliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. Lake Ingram Estates Road District Interest and Sinking Fund Taa Rate Analysis $225,000 Original Issue Size Year Net Taxable F4xling Assessed 9/30: Valuation Debt Service zoos $ 1,467,t6s $ - 2002 1,584,560 8%(3towtlr(A) 23,412 2003 2,213,788 40%Growth (B) 22,160 2004 2,984,477 19%Gtow61 (C) 21,980 2005 3,883,701 20%Growth (D) 21,600 2006 4,272,071 10%Gfow61 21,620 2007 4,400,233 3%13rowtlt 22,395 2008 4,532,240 3 % Gowlh & Refmance 20,531 2009 4,668,207 3%Gfowdl 20,094 2010 4,808,254 3%t3rowtlt 20,625 2011 4,952,501 3%Growtlr 20,125 2012 5,101,076 3%Gfowdl 20,594 2013 5,254,109 3%Cxowtlr 20,031 2014 5,411,732 3%Gfowdl 20,438 2013 5,574,084 3%Gfowdl 20,781 2016 5,741,306 3%Growdr 20,094 2017 5,913,546 3%Growdr 20,375 2018 6,090,952 3%CrtowOt 20,594 2019 6,273,680 3%Cirowlll 20,750 2020 6,461,891 3%Grow01 19,875 2021 6,655,748 3%Growtlt 19,969 2022 6,855,420 3%Growth 20,000 2023 7,061,083 3%Cifowlh 19,969 2024 7,272,913 3%t3rowth 20,844 2025 7,491,103 3%Growth 20,625 2026 7,491,103 - 2027 7,491,103 - 2028 7,491,103 - 2029 7,491,103 - 2030 7,491,103 S 499,661 1. Tax rate wllwtion ratio assumed m 98.5%. Projected I&S Tax Rate (1.1 s - l.sooo 1.0162 0.7477 0.5699 0.5136 0.5167 0.4599 0.4370 0.4355 0.4125 0.4099 0.3871 0.3834 0.3785 0.3553 0.3498 0.3433 0.3358 0.3123 0.3046 0.2962 0.2871 0.2910 0.2795 2 3 A. Revaluation B. Construction of 1 house at $350k plus 2 houses et $IOOk each plus 5%valuabon growOt C. Construction of 6 houses at $1IOk each plus S% valuafion growth. D. Construction of 6 houses at $125 each plus S% valuation growth. 2. The actual payment will be 529,475. This is reduced by $1,181 N ewrued interest, $2,300 m estimated investment earnings and $2,582 in rounding/contingencies built into the issue size. This leaves an estimated $23,412 to be paid from taxes. 3. Note that with the refinance, we lower the interest to an estimated 6.25% and shorten the final matuirty to 25 years. This saves an estimated $140,000 over the original 9°/y 30 year swcture. Prepared by Robert V. Henderson 2/21/2001 Pege 1 Lake Ingram Estates Road District (Kerr County, Tx~ Dated Date = 031012001 Unlimited Tas Road Bonds, Delivery Date = 0322!2001 Series 2001 Term Bond Bond Coupon IMeresl Total Fiscal Year Dates Maturities Redem 'ons Proceeds Rate Yeld Price Amount Debt Service Debt Service 021152002 - _ _ _ _ _ 19.350.00 19.350.00 0&152002 - - - 10,125.00 10,125.00 29,475.00 02/152003 - 2,000.00 2,000.00 9.000 9.000000 100.000000 10,125.00 12,125.00 08/152003 - - - - 10.035.00 10,035.00 22,180.00 02115/2004 2,000.00 2,000.00 9.000 9.000000 100.000000 10,035.00 12,035.00 0&152004 - - - 9.945.00 9,945.00 21,980.00 02/152005 - 2,000.00 2.000.00 9.000 9.000000 100.000000 9,945.00 11,945.00 081152005 - _ _ _ 9.855.00 9,855.00 21,800.00 02/152006 - 2,000.00 2,000.00 9.000 9.000000 100.000000 9,855.00 11,855.00 08/152008 9,785.00 9,765.00 21,620.00 02/152007 - 3,000.00 3,000.00 9.000 9.000000 100.000000 9,765.00 12,765.00 08!152007 - _ _ _ _ _ 9.830.00 9.630.00 22,395.00 02/152000 - 3,000.00 3.000.00 9.000 9.000000 100.000000 9,630.00 12,630.00 08!152008 - - - - 9.495.00 9.495.00 22.125.00 02/152009 3,000.00 3,000.00 9.000 9.000000 100.000000 9,495.00 12,495.00 0&152009 - _ _ _ _ _ 9,360.00 9,360.00 21.855.00 02/152010 - 3,000.00 3,000.00 9.000 9.000000 100.000000 9,380.00 12,380.00 081152010 - - - - - 9,225.00 9,225.00 21,585.00 02/152011 4,000.00 4,000.00 9.000 8.000000 100.000000 9,225.00 13,225.00 081152011 9,045.00 9,045.00 22,270.00 02/152012 - 4,000.00 4,000.00 9.000 9.000000 100.000000 9,045.00 13,045.00 08/152012 - - - - - - 8,865.00 8.885.00 21,910.00 02!152013 - 5,000.00 5,000.00 8.000 9.000000 100.000000 8,865.00 13,865.00 0 811 52 01 3 _ _ _ _ _ 8.640.00 8.640.00 22,505.00 02/152014 5,000.00 5,000.00 9.000 9.000000 100.000000 8,640.00 13,640.00 08!152014 - - - - - 8.415.00 8,415.00 22,055.00 021152015 - 6,000.00 6,000.00 9.000 9.000000 100.000000 8,415.00 14,415.00 08/152015 - - - - - - 8,145.00 8,145.00 22,560.00 02115/2016 - 6,000.00 6,000.00 9.000 9.000000 100.000000 8,145.00 14,145.00 08/152016 7,875.00 7,875.00 22,020.00 02/152017 - 7,000.00 7,000.00 9.000 9.000000 100.000000 7,875.00 14,875.00 08/152017 - - - - 7,560.00 7,560.00 22,435.00 02115/2018 - 7,000.00 7,000.00 9.000 9.000000 100.000000 7,560.00 14,560.00 081152018 - - - - - - 7,245.00 7,245.00 21,605.00 02/1512019 8,000.00 8,000.00 9.000 9.000000 100.000000 7,245.00 15,245.00 08!15!2019 - - - 6,885.00 8,885.00 22,130.00 021152020 - 9,000.00 9,000.00 8.000 9.000000 100.000000 6,885.00 15,885.00 08/152020 - _ _ _ 6.480.00 8.480.00 22,365.00 02/152021 - 9,000.00 9,000.00 9.000 9.000000 100.000000 6,480.00 15,480.00 - 08/152021 6,075.00 6,075.00 21,555.00 02115/2022 - 10,000.00 10,000.00 9.000 9.000000 100.000000 8,075.00 16,075.00 - OBl152022 - - - 5,825.00 5,625.00 21,700.00 02/152023 - 11,000.00 11,000.00 9.000 9.000000 100.000000 5,625.00 18,825.00 - 08/152023 _ _ _ _ _ _ 5,130.00 5,130.00 21.755.00 02/152024 12,000.00 12,000.00 9.000 9.000000 100.000000 5,130.00 17,130.00 06/152024 - - - - - - 4,590.00 4,590.00 21,720.00 02/15/2025 - 13,000.00 13,000.00 9.000 9.000000 100.000000 4,590.00 17,590.00 08/15/2025 _ _ _ _ _ 4,005.00 4.005.00 21.595.00 02/152026 - 15,000.00 15,000.00 9.000 9.000000 100.000000 4,005.00 19,005.00 - 08/15/2026 3330.00 3330.00 22 335.00 Lake Ingram Estates Road District (Kerr County, Tx) Dated Date = 08lttilt007 Unlinked Tax Road Bonds, Delivery Date • 08/16/2007 Serie:2007 Tenn Bond Bond Coupon Interest Total Fizcal Year Dates Maturkies Redem ions Proceeds Rate Yield Pdce Amount Debt Service Debt Service 02/15/2008 7,000.00 7,000.00 6.250 6.250000 100.000000 6,875.00 13,875.00 08/15/2008 - _ _ _ - 6,656.25 8,656.25 20,531.25 02/15/2009 - 7,000.00 7,000.00 8.250 6.250000 100.000000 8,856.25 13,856.25 08/15/2009 - _ _ _ 6,437.50 8.437.50 20.093.75 02/15/2010 8,000.00 6,000.00 6.250 6.250000 100,000000 6,437.50 14,437.50 08/15/2010 - - - - 6,187.50 8,187.50 20,625.00 02/1512011 8,000.00 8,000.00 6.250 6.250000 100.000000 8,187.50 14,187.50 08/15/2011 - - - - - 5,837.50 5,937.50 20,125.00 02/15/2012 - 9,000.00 9,000.00 6.250 6.250000 100.000000 5,937.50 14,937.50 08/15/2012 - 5,856.25 5,656.25 20,593.75 02/15/2013 9,000.00 9,000.00 6.250 6.250000 100.000000 5,656.25 14,856.25 0811512013 - - - - - 5,375.00 5,375.00 20,031.25 02115!2014 - 10,000.00 10,000.00 6.250 6.250000 100.000000 5,375.00 15,375.00 0871512014 - - - - - - 5,062.50 5,062.50 20,437.50 02/15/2015 11,000.00 11,000.00 6.250 6.2~NM 100.000000 5,062.50 16,062.50 0871&2015 - - - - - 4,718.75 4,718.75 20,781.25 02/15/2018 11,000.00 11,000.00 6.250 8.250000 100.000000 4,718.75 15,718.75 08/15/2016 - - - - 4,375.00 4,375.00 20,093.75 0211&2017 - 12,000.00 12,000.00 6.250 6.250000 100.000000 4,375.OD 16,375.00 0&15/2017 4,000.00 4,000.00 20,375.00 02/1512018 - 13,000.00 13,000.00 6.250 6.25000D tOD.000000 4,000.00 17,000.00 08/15/2018 - - - - - - 3,593.75 3,593.75 20,593.75 02/1512019 - 14,000.00 14,000.00 6.250 fi.250000 100.000000 3,593.75 17,593.75 - 08/1512019 - - - - - - 3,156.25 3,158.25 20,750.00 02/15/2020 14,000.00 14,000.00 6.250 6.250000 100.000000 3.158.25 17,158.25 0&7512020 - - - - - 2,718.75 2,718.75 19,075.00 02/15/2021 - 15,000.00 15,000.00 6.250 6.250000 100.000000 2,718.75 17,718.75 0&15/2021 - - - - - - 2,250.00 2,250.00 19,968.75 02/15/2022 - 18,000.00 16,000.00 6.250 6.250000 100.000000 2,250.00 18,250.00 - 08I15l2022 1,750.00 1,750.00 20,000.00 02/15/2023 - 17,000.00 17,000.00 6.250 6.250000 100.000000 1,750.00 18,750.00 08/15!2023 - - - - 1,218.75 1,218.75 19,968.75 02/15/2024 - 19,000.00 19,000.00 6.250 6.250000 100.000000 1,218.75 20,218.75 08715/2024 - _ _ _ 625.00 825.00 20.843.75 02/15/2025 - 20.000.00 20,000.00 6.250 6.250000 100.900000 625.00 20,625.00 20,825.00 Total - 220,000.00 220,000.00 148,312.60 368,312.60 368,312.60 Acc IM - - - rand Totals 220 000.00 220 000.00 146 312.60 368 312.60 366 312.60 TIC (Incl. all expenses) .... 6.25000000% Average Coupon . ...... 6.25ix100110°b Net E6. IM. Rate (Te~ws VemoNs) = 6.250000% (with AdjstmM d 50.00). TIC (Arbitra0e TIC) ......... 8.25000000% AveraOe Life (yrs) ... 10.64 IR3 Fonn 8038G NIC = 6.250000% (with AdjstmM of 50.00). Bond Years .................. 2341.00 WAM ......... .... 10.640909 NIC = fi.250000% with M of 50.00 . LAKE/NG: NEW2007 Piepanx/ by: Robert V. Henderson 02/21/2001 ~ 16:21 v5.22 ~a~t U Kerr County Judge/Commissioners From: Tom Spurgeon To: Cc: Sent: Tuesday, February 20, 2001 4:50 PM Subject: Lake Ingram Estates Road District Thea: Please use the following language for the Court's agenda Monday evening to approve the issuance of bonds for the Lake Ingram Estates Road District: RESOLUTION AUTHORIZING THE ISSUANCE OF $225,000 IN PRINCIPAL AMOUNT OF LAKE INGRAM ESTATES ROAD DISTRICT UNLIMITED TAX BONDS, SERIES 2001, AUTHORIZING THE EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT, AND CONTAINING OTHER MATTERS RELATED TO THE SUBJECT Many thanks for your assistance. Please call if you have any questions. Cordially yours, Thomas K. Spurgeon McCall, Pazkhurst & Horton L.L.P. 700 N. St. Mary's, Suite 1225 1225 One Riverwalk Place San Antonio, Texas 78205 Telephone: (210) 225-2800 Telecopy: (210) 225-2984 e-mail: *The information contained in this electronic communication is confidential and may contain information that is legally privileged and exempt from disclosure under applicable law. The information is intended solely for the use of the individual or entity named above. If you have received this communication in error, please notify the sender immediately by replying to this message, and then delete it from your system Thank you. **If file(s) attached to this message have the extension "PDF", the files have been saved in Adobe's Portable Document Format (PDF) .The PDF format is designed for "universal document exchange" - it allows documents to maintain their appearance and pagination on any computer or printer. PDF file(s) can be viewed and printed using Adobe's free Acrobat Reader, available at http.//www adobe.com/prodindex/acrobat/readstep html 2/20/01 DRAFT DATE' FEeAUARY 21.2001 RESOLUTION AUTHORIZING THE ISSUANCE OF $225,000 IN PRINCII'AL AMOUNT OF LAKE INGRAM ESTATES ROAD DISTRICT UNLIMITED TAX ROAD BONDS, SERIES 1001, AUTHORIZING THE EXECUTION OF A PAYINGAGENT/REGISTRARRGREEMENT, AND CONTAINING OTHER MATTERS RELATED TO THE SUBJECT THE STATE OF TEXAS COUNTY OF KERR LAKE INGRAM ESTATES ROAD DISTRICT WHEREAS, pursuant to the provisions of Subchapter B of Chapter 257, Texas Transportation Code, the Commissioners Court (the "Commissioners Court") of Kerr County, Texas (the "County's duly created a road district located wholly within the County lmown as the LAKEINGRAMESTATESROAD DISTR/CT (the "District"); and WHEREAS, on August 12, 2000, a bond election was held in the District during which more than two-thirds of the qualified voters of the District voting at such election favorably approved the issuance of up to $225,000 in principal amount of bonds for the purpose described in Section 1 of this Resolution, which amount is less than one-fourth of the assessed value of real property within the District as rewrdecl by the Ketr County Appraisal District; and WHEREAS, the Commissioners Court of the County deems it necessary and advisable to authorize, issue and deliver all of such voted authorization; and WHEREAS, said voted bonds hereinafter authorized and designated in Sections 1 and 2 hereof are to be issued and delivered pursuant to Section 1471.011, Texas Government Code; and WHEREAS, it is hereby officially found and determined that the meeting at which this Resolution was passed was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Chapter 551, Texas Government Code. THEREFORE, BE IT RESOL VED BY THE COMMISSIONERS COURT OF %ERR COUNTY TEXAS THAT: SF.CIION 1. AMOUNT AND PURPOSE OF THE BONDS. The bond or bonds of the Dishict are hereby authorized to be issued and delivered in the aggregate principal amount of $225,000 FOR THE PURPOSE OF FINANCING THE PURCHASE OR ACQUISITION OF ROADS AND THE CONSTR UCTlON, MAINTENANCE, AND OPERATION OF MACADAMIZED, GRAVELED, OR PAVED ROADSAND TURNPIKES OR INAID OF THOSE PURPOSES INSIDE OR OUTSIDE THE BO UNDARIES OF THE DISTRICT, AND PAYING COSTS OF ISSUANCE. SRCT[ON 2. DESIGNATION, DATE, DENOMINATIONS, NUMBERS, AND MATURITIES OF BONDS. Eachbond issuedpur;uantto this Resolution shall be designated: "LAKE INGRAMESTATESROAD DISTRKTUNLIMITED TAXROAD BOND, SERIES 2001 ", and initially there shall be issued, sold, and delivered hereunder one fully registered bond, without interest coupons, dated Mareh 1, 2001, in the principal amount stated in Section 1 above, numbered T-1 (the "Initial Bond's with bonds issued in replacement thereof being in denominations of $1,000 or any integral multiple thereof and numbered consecutively from R-1 upward, payable to the initial registered owner thereof (with the Initial Bond being payable to the initial purchaser designated in Section 16 hereof, or to the registered assignee or assignees of said Bonds or any portion or portions thereof (in each case, the "Registered Owner', and said bonds shall mature and be payable serially on February 15 in each of the years and in the principal amounts, respectively, as set forth in the following schedule: YEAR OF MATURITY PRINCIPAL AMOUNT YEAR OF MATURITY PRINCIPAL AMOUNT YEAR OF MATURITY PRINCIPAL AMOUNT 2003 $2,000 2013 $5,000 2023 $11,000 2004 2,000 2014 5,000 2024 12,000 2005 2,000 2015 6,000 2025 13,000 2006 2,000 2016 6,000 2026 15,000 2007 3,000 2017 7,000 2027 16,000 2008 3,000 2018 7,000 2028 18,000 2009 3,000 2019 8,000 2029 19,000 2010 3,000 2020 9,000 2030 21,000 2011 4,000 2021 9,000 *** *** 2012 4,000 2022 10,000 *** *** The temm "Bonds" as used in this Resolution shall mean and include collectively the Initial Bond initially issued and delivered pursuant to this Resolution and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of the Bonds. SECTION 3. INTEREST. The Bonds shall bear interest from the dates specified in the FORM OF BOND set forth in this Resolution to their respective dates of maturity or redemption prior to maturity at the rate of 9.00% per annum. SECTTON 4. CHARACTERISTICS OF THE BONDS. (a) Registration. Transfer. and Exchange: Authentication. The District shall keep or cause to be kept at the designated corporate trust office in Houston, Texas of The Bank of New York (the "Paying AgendRegistrar'~ books or records for the registration of the transfer and exchange of the Bonds (the "Regisharion Books"), and the District hereby appoints the Paying AgenURegistrar as its registrar and transfer agent to keep such books or records and make such registrations of transfers and exchanges under such reasonable regulations as the District and Paying Agent/Registrarrnay prescribe; and the Paying Agent/Registrar shall make such regis- trations, transfers and exchanges as herein provided. Attached hereto as Exhibit A is a copy of the Paying Agent/Registraz Agreement between the District and the Paying Agent/Registraz which is hereby approved in substantially final form, and the CountyJudge and County Clerk ofthe County, on behalf of the District, are hereby authorized to execute the Paying Agent/Registraz Agreement and approve any changes in the feral fomr thereof. The Paying Agent/Registraz shall obtain and record in the Registration Books the address of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registered owner to notify the Paying Agent/Registraz in writing ofthe address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. To the extent possible and under reasonable circumstances, all transfers of Bonds shall be made within three business days after request and presentation thereof. The District shall have the right to respect the Registration Books during regulaz business hours ofthe Paying AgenbRegistrar, but otherwise the Paying AgenNRegistrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. The Paying AgenURegistrar's standard or customary fees and charges for making such registration, transfer, exchange and delivery of a substitute Bond or Bonds shall be paid as provided in the FORM OF BOND set forth ur this Resolution. Registrarion of assignments, transfers and exchanges of Bonds shall be made in the manner provided and with the effect stated in the FORM OF BOND set forth in this Resolution. Each substitute Bond shall beaz a letter and/or number to distinguish it from each other Bond. Except as provided in (c) below, an authorized representative ofthe Paying Agent/Registraz shall, before the delivery of any such Bond, date and manually sign the Paying AgenbRegistrar's Authentication Certificate, and no such Bond shall be deemed to be issued or outstanding unless such Certificate is so ex- ecuted. The Paying Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrerrdered for transfer and exchange. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body ofthe District or any other body or person so as to accomplish the foregoing transfer and exchange of any Bond or portion thereof, and the Paying AgendRegistrar shall provide for the printing, execution, and delivery ofthe substitute Bonds in the mazurer prescnlred herein, and said Bonds shall be oftype composition printed on paper with lithographed or steel engraved borders of customary weight and strength. Pursuant to Chapter 1201, Texas Government Code, and particulazly Subchapter D and Section 1201.067 thereof, the duty of transfer and exchange of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of such Bonds, the transferred and exchanged Bonds shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Bonds which initiaIly were issued and deliveredpursuant to this Resolution, approved by the Attorney General, and regis- tered by the Comptroller of Public Accounts. (b) Pa n1 o Bon s a Int r st. The District hereby further appoints the Paying AgenURegistrar to act as the paying agent for paying the principal of and interest on the Bonds, all as provided in this Resolution The Paying Agent/ Registrar shall keep proper records of all payments made by the District and the Paying Agent/Registrar with respect to the Bonds. (c) In General. The Bonds (i) shall be issued in fully registered fornt, without interest coupons, with the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities and maybe tendered for purchase at the option ofthe holder, (iii) may be transferred and assigned, (iv) may be exchanged for other Bonds, (v) shall have the characteristics, (vi) shall be signed, sealed, executed and authenticated, (vii) the principal of and interest on the Bonds shall be payable, and (viii) shall be administered and the Paying AgenURegistrar and the District shall have certain duties and responsibilities with respect to the Bonds, all as provided, and in the manner and to the effect as required or indicated, in the FORM OF BOND set forth in this Resolution. The Initial Bond is not required to be, and shall not be, authenticated by the Paying Agend Registrar, but on each substitute Bond issued in exchange for the Initial Bond issued under this Resolution the Paying Agent/Registrar shall execute the PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFI- CATE, in the form set forth in the FORM OF BOND. In lieu of the executed Paying AgenNRegistrar's Authentication Certificate described above, the Initial Bond delivered on the closing date (as fiuther described in subparagraph (i) below) shall have attached thereto the Comptroller's Registration Certificate substantially in the form set forth in the FORM OF BOND below, manually executed by the Comptroller ofPublic Accounts of the State of Texas or by his duly authorized agent, which certificate shall be evidence that the Initial Bond has been duly approved by the Attorney General of the State of Texas and that it is a valid and binding obligation of the District, and has been registered by the Comptroller. (d) SubstitutePayi~eAAent/Registrar. The District covenants with the registered ownersofthe Bonds that at all times while the Bonds are outstanding the District will provide a competent and legally qualified bank, trust company, financial institution, or other entity to act as and perform the services of Paying Agent/Registrar for the Bonds under this Resolution, and that the Paying Agent/Registrarwill beone entity and shall be an entity registered with the Securities and Exchange Commission. The District reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not less than 120 days written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. Tn the event that the entity at any time acting as Paying AgendRegistrar (orits successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the District covenants that promptly it will appoint a competent and legally qualified bank, frost company, financial institution, or other agency to act as Paying AgenURegistrar under this Resolution. Uponany change in the Paying Agent/Registrar, theprevious Paying Agent/Registrarpromptlyshnll transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the District. Upon any change in the Paying Agent/Registrar, the District promptly will cause a written notice thereofto be sent by the new Paying Agent/Registrar toeach registered owner of the Bonds, by United States mail, fitstclass postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Regishar shall be deemed to have agreed to the provisions of this Resolution, and a certified copy of this Resolution shall be delivered to each Paying AgenURegistrar. 4 (e) De[iveryQflnitial Bond. On the closing date, one hutial Bond representing the entire principal amount of the Bonds, payable in stated installments to the initial registered owner named in Section 16 of this Resolution or its designee, executed by manual or facsimile signature of the County Judge and County Clerk of the County, on behalf of the District, approved by the Attorney General of Texas, and registered and manually signed by the Comptroller of Public Accounts of the State of Texas, will be delivered to the initialpurehaser or its designee. Upon payment for the Initial Bond, the Paying Agent/Registtarshnll cancel the Initial Bond and deliver to the initial registered owner or its designee one registered definitive Bond for each year of matudty of the Bonds, in the aggregate principal amount of all of the Bonds for such maturity. SBCTION 5. FORM OF BOND. The form of Bond, including the form of Paying Agent/Registcar's Authentication Certificate, the form ofAssignment andthe form ofRegistration Certificate of the Comptroller of Public Accounts of the State of Texas (to be attached only to the Initial Bond shall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are pemutted or required by this Resolution. [The remainder of this page intentionally left blank) FORM OF BOND R- INTEREST RATE 9.00% UNTTF,D STATES OF AMERICA STATE OF TEXAS COUNTY OF KERR LAKE INGRAM ESTATES ROAD DISTRICT UNLIMITED TAX ROAD BOND SERIES 2001 REGISTERED OWNER: DATE OF SERIES Mazch I, 2001 PRINCIPAL AMOUNT PRINCIPAL AMOUNT: DOLLARS ON THE MATURITY DATE specified above, LAKE INGRAM ESTATES ROAD DISTRICT (the "Disttict'~, being a political subdivision of the State of Texas located in and created by Ken• County, Texas, hereby promises to pay to the Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner', the Principal Amount specified above, and to pay interest thereon (calculated on the basis of a 360-day yeaz of twelve 30-day months) from Mazch 1, 2001 at the Interest Rate per annum specified above, payable on February 15, 2002 and annually on each Febmary 15 thereafter to the Maturity Date specified above, or the date of redemption prior to maturity; except that if this Bond is required to be authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such Principal Amount shall beaz interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date but on or before the next following interest payment date, in which case such Principal Amount shall beaz inter- est from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Bond or Bands, if any, for which this Bond is being exchanged is due but has not been paid, then this Bond shall beaz interest from the date to which such interest has been paid in firll. THE PRINCIPAL OF AND INTEREST ON THIS BOND are payable in lawfiil money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the Registered Owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity at the designated wrporate trust office (initially located in Houston, Texas -the "Designated Trust Office's of The Bank of New York, which is the "Paying AgenbRegislraz" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the Registered Owner hereof on each interest payment date by check, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the District required by the order adopted by the District authorizing the issuance of this Bond and the series of which it is a part (the "Bond Resotution'~ to be on deposit with the Paying AgendRegistrar for such purpose as hereinafter provided; and such check shall be sent by the Paying AgenURegistrar by United States mail, first-class postage prepaid (or by such other method requested by the Registered Owner hereof and acceptable to the Paying Agent/Registraz), on each such interest payment date, to the Registered Owner hereof, at its address as it appeared on the last business day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registraz, ashere- inafterdescribed Tn the event of anon-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date's will be established by the Paying AgenURegistrar if and when funds for the payment of such interest have been received from the District Notice of the Special Record Date and of the scheduled payment date of the past due interest (the "Special Payment Date" which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the address of each Registered Owner appearing on the Registration Books of the Paying Agent/Regislrar at the close of business on the last business day next preceding the date of mailing of such notice. Any acemed interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to the Registered Owner upon presentation and surrender of this Bond for redemption and payment to the Paying AgenURegistrar at the Designated Trust Office (unless the redemption date is a regulazly scheduled interest payment date, in which case accrued interest on such redeemed Bonds shall be payable in the regular manner described above). The District covenants with the Registered Owner of this Bond that on or before each principal payment date, interest payment date, and accmed interest payment date for this Bond it will make available to the Paying AgenbRegistrar, from the "Interest and Sinking Fund" created by the Bond Resolution, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. IF THE DATE FOR THE PAYMENT of the principal of or interest on this Bond shall be a Saturday, Sunday, legal holiday, or day on which banking institutions in the city where the Designated Trust Office of the Paying AgenbRegistraz is located are authorized by law or executive order to close, or the United States Postal Service is not open for business, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which barildng institutions are authorized to close, or the United States Postal Service is not open for business; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND IS ONE OF A SERIES OF BONDS dated Mazch 1, 2001, authorized and issued in accordance with the Constitution and laws of the State of Texas, including Article III, Section 52 ofthe Texas Constitution and Subchapter B ofChapter 1471 ofthe Texas Government Code, as amended, in the principal amount of $225, 000 FOR THE PURPOSE OF FINANCING THE PURCHASE OR ACQUISITION OF ROADS AND THE CONSTRUCTION, MAINTENANCE, AND OPERATION OF MACADAMIZED, GRAVELED, OR PAVED ROADS AND TURNPIKES OR IN AID OF THOSE PURPOSES /NS/DE OR OUTSIDE THE BOUNDARIES OF THE DISTRICT, AND PAYING COSTS OF /SSUANCE. ON FEBR UARY 1 S, 2005, or on any date thereafter, the Bonds of this Series maturing on and after February I5, 2006 maybe redeemed prior to their scheduled maturities, at the option of the District, with funds derived from any available and lawful source, as a whole, or in part (provided that a portion of a Bond may be redeemed only in an integral multiple of $1,000), at the redemption price of the principal amount of Bonds called for redemption, plus accrued interest thereon to the date fixed for redemption. The District shall detemune the maturity or mahrrities, and the principal amount of Bonds within each maturity, to be redeemed. If less than all Bonds of a maturity aze to be redeemed, the particulaz Bonds to be redeemed shall be selected by the Paying Agent/Registraz at random and by lot. IN ADDITION, THE BONDS OF THIS SERIES maturing on and after Febmary 15, 2012 aze subject to redemption, at the option of the registered owners of such Bonds (the "Optional Put Redemption") on Febmary I S in each of the years 2011 through 2015, inclusive, at a redemption price equal to the principal amount of Bonds called for redemption (as detemtined in the following sentence) plus accrued interest thereon to the date of redemption. The amount of Bonds to be redeemed in each of the years 2011 through 2015 pursuant to the provisions of this paragraph shall be equal to 20% of the aggregate principal amount of all Bonds for which the registered owners thereof have exercised their Optional Put (as described below), rounded to the neazest $1,000 for each redemption yeaz; provided, however, any such Bonds which are scheduled to mature in the years 2012 through 2015 shall not be redeemed pursuant to such Optional Put Redemption and shall continue to mature as scheduled but shall be included within the calculations W detemune the total amotmt of Bonds to be redeemed in each of the years 2011 through 2015 pursuant to such Optional Put Redemption. In order to exercise their option to cause Bonds to be redeemed pursuant to the Optional Put Redemption described in this paragraph (an "Optional Put"), the registered owners of such Bonds must, not later than May I5, 2010, execute and deliver written notice to the Paying Agent/Registraz and the District in the fomr attached to the Bonds as "CERTIFICATE REGARDING REDEMPTION OF BOND AT BONDHOLDER OPTION AND ASSIGNMENT, "which notice shall be irrevocable by the registered owners exercising such option. The Paying AgenURegistrar, in its sole discretion, shall detemune whether or not such registered owners shall have properly exercised such Optional Put. NOTWITHSTANDING THE FOREGOING PROVISIONS HEREOF, THE DISTRICT HAS RESERVED THE RIGHT, AT ITS OPTION, TO PREVENT THE REDEMPTION AND CANCELLATION OF ANYBONDSptrrsrrant to the provisions of this paragraph by providing for all or a portion of such Bonds to be purchased from the registered owners thereof by another person or entity on August I5, 2010 at a purchase price equal to the principal amount of such Bonds plus accrued and unpaid interest to the date of such purchase, if any. In such event, the District shall notify, or shall cause the Paying AgendRegistrar to notify, the registered owners of such Bonds in writing on or before July 31, 2010 that such Bonds will be optionally purchased on August 15, 2010 and that the registered owners thereof shall be required to deliver such Bonds to the Paying Agent/Registraz on or before August 15, 2010 for re-delivery to the purchasers of such Bonds. AT LEAST 30 DAYS PRIOR to the date fixed for any redemption of Bonds or portionsthereof prior to maturity, a written notice of such redemption shall be sent by the Paying Agent/Registrarby United States mail, firstclass postage prepaid, at least 30 days prior to the date fixed for any such redemption to the Registered Owner of each Bond to be redeemed at its address as it appeared on the Registration Books maintained by the Paying Agent/Registrar on the business day next preceding the day such notice of redemption is mailed. Any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Registered Owner. By the date fixed for any such redemption, due provision shall be made with the Paying AgenURegistraz for the payment of the required redemption price for the Bonds or portions thereof which are to be so redeemed. If such written notice of redemption is sent and if due provision for such payment is made, all as provided above, the Bonds or portions thereof which are to be so redeemed thereby automatically shall be treated as redeemed prior to thew scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the Registered Owner to receive the redemptionprice from the Paying AgenURegistrar out of the fiords provided for such payment. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $1,000, at the written request of the Registered Owner, and in an aggegate principal amount equal to the unredeemed portion thereof, will be issued to the Registered Owner upon the surrender thereof for cancellation, at the expense of the District, all as provided in the Bond Resolution. ALL BONDS OF THIS SERIES are issuable solely as fully registered Bonds, without interest coupons, in the denomination of any integral multiple of $1,000. As provided in the Bond Resolution, this Bond, or any unredeemed portion hereof, may, at the request of the Registered Owner or the assignee or assignees hereof, be assigned, transferred and exchanged for a like aggregate principal amount of fully registered Bonds, without interest coupons, payable to the appropriate Registered Owner, assignee or assignees, as the case tray be, having the same denomination or denominations in any integral multiple of $1,000 as requested in writing by the appropriate Registered Owner, assignee or assignees, as the case may be, upon surrender of this Bond to the Paying AgenNRegistrar for cancellation, all in accordance with the form and procedures set forth in the Bond Resolution. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying AgenURegistrar at the Desigrtated Trost Office, together with proper instnunents of assignment, in form and with guarantce of signatures satis- factory to the Paying Agent/Registrar, evidencing assignment ofthis Bond or any portion or portions hereof in any integral multiple of $1,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be registered. The form of Assignment printed or endorsed on this Bond may be executed by the Registered Owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to Ste Paying AgendRegistrar may be used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the Registered Owner. The Paying AgenURegistraz's reasonable standazd or customary fees and chazges for transferring and exchanging any Bond or portion thereof shall be paid by the District, but any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment, transfer or exchange as a condition precedent to the exercise of such privilege. The Paying Agent/Regish-ar shall not be required to make any such transfer or exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date; provided, however, such limitation of transfer shall not be applicable to an exchange by the Registered Owner of an unredeemed balance of a Bond called for redemption in part. IN THE EVENT any Paying Agent/Regishar for the Bonds is changed by the District, resigns, or otherwise ceases to act as such, the District has covenanted in the Bond Resolution that it promptly will appoint a competent and legally qualified substitute therefor, and cause written notice thereof to be mailed to the registered owners of the Bonds. IT IS HEREBY CERTIFIED, RECITED, AND COVENANTED that this Bond has been duly and validly authorized, issued, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a general obligation ofthe District, issued on the full faith and credit thereof; and that ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due, and as such principal matures, have been levied and ordered to be levied against all taxable property in the District, and have been pledged for such payment without limit as to rate or amount. THE DISTRICT ALSO HAS RESERVED THE RIGHT to amend the Bond Resolution as provided therein, and under some (but not all) circumstances amendments thereto must be approved by the registered owners of a majority in aggregate principal amount of the outstanding Bonds. BYBECOMING THE REGISTERED OWNER ofthis Bond, the Registered Owner thereby acknowledges all ofthe temvs and provisions ofthe Bond Resolution, agrees to be bound by such terms and provisions, acknowledges that the Bond Resolution is duly recorded and available for inspection m the official minutes and records ofthe governing body of the District, and agrees that the temvs and provisions ofthis Bond and the Bond Resolution constitute a contract between each Registered Owner hereof and the District. IN WITNESS WHEREOF, the District has caused this Bond to be signed with the manual or fac~mile signature ofthe County Judge of Kerr County, Texas, on behalf ofthe District, and countersigned with the manual or facsimile signature ofthe County Clerk of Kerr County, Texas, on behalf of the District, and the official seal ofthe District has been duly impressed, or placed in facsimile, on this Bond. (facsimile si~aturel (facsimile sig~l County Clerk County Judge Kerr County, Texas Kerr County, Texas (DISTRICT SEAL) [The remainder of this page intentionally left blank) 10 FORM OF REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity, and approved by the Attorney General ofthe State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my sigoahrre and seal this (COMPTROLLER' S SEAL) Comptroller of Public Accounts of the State of Texas FORM OF PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE (To be executed if this Bond is not accompanied by an executed Registration Certificate of the Comptroller of Public Accounts of the State of Texas) It is hereby certified that this Bond has been issued under the provisions of the Bond Resolution described in the text ofthis Bond; and that this Bond has been issued in exchange for a bond or bonds, or a portion of a bond or bonds of a series which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated: THE BANK OF NEW YORK Paying Agent/Registrar By Authorized Representative 11 FORM OF ASSIGNMENT: ASSIGNMENT FOR VALUE RECEIVED, the undersigned Registered Owner of this Bond, or duly authorized representative or attorney thereof, hereby assigns this Bond to (Assignee's Social Security or (Print or typewrite Assignee's name and address, Taxpayer Identification Number) including zip code) and hereby irrevocably constitutes and appoints attorney to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a member Earn of the New York Stock Exchange or a commercial bank or trust company. NOTICE: The signature above must correspond with the name of the Registered Owner as it appears upon the front of this Bond in every particular, without alteration or enlargement or any change whatsoever. [The remainder of this page intentionally left blank] 12 FORM OF CERTIFICATE REGARDING REDEMPTION AT BONDHOLDER OPTION CERTIFICATE REGARDING REDEMPTION OF BOND AT BONDHOLDER OPTION AND ASSIGNMENT The undersigned does hereby certify that as ofthe Date ofExecution ofCertificate as shown below, it is the holder and ]awful owner ofthe following Bond issued by the Lake Ingram Estates Road District (in Kerr County, Texas): NAME OF BONDS: Lake Ingram Estates Road District Unlimited Tax Road Bonds, Series 2001 BoNDNo.: R- MATURITY DATE: February _, 20_ PRINCIPAL AMOUNT: $ The undersigned hereby (a) gives notice to the Lake Ingram Estates Road District (the "Distrid'~ and The Bank of New York, as the Paying AgendRegistrar for the Bond described above (the 'Bond"), or its successor, of the exercise by the undersigned of its option to have $ (which amount must be in integral multiples of $1,000) in principal amount ofthe Bond redeemed by the District prior to maturity pursuant to the provisions of the Optional Put Redemption described in the text ofthe Bond; and (b) in order to exercise such option, agrees to tender and deliver the Bond in proper form to the Paying Agent/Registrar on or before (i) August 15, 2010 if the undersigned has been notified in writing by the District or the Paying Agent/Registrar on or before July 31, 2010 that this Bond will be purchased on August 15, 2010 in lieu of being redeemed, as described in the text of the Bond, or (ri) Febnuary 15, 2011 if the Bond is not purchased on August 15, 2010 in accordance with the provisions of clause (i) above. In the event the Bond is to be purchased on August 15, 2010 in accordance with the provisions of clause (i) above, the undersigned also hereby assigns and transfers, and directs the Paying AgendRegistrar to transfer, the Bond to the purchaser thereof upon payment of the purchase price set forth in the text of the Bond. The undersigned further acknowledges that the option exercised by the execution and delivery of this Certificate is irrevocable and is binding upon all successors and assigns ofthe Band. NAME AND ADDRESS OF BONDHOLDER: DATE OF EXECUTION OF CERTIFICATE: SIGNATURE OF BONDHOLDER: 13 INTI'IAL BOND INSERTIONS: The Initial Bond shall be in the form set forth above except that: (A) Immediately under the name of the Bond, the headings "INTEREST RATE" and "MATURITY DATE" shall be completed with the words "As shown below" and "CUS1P NO. "shall be deleted. (B) The first paragraph shall be deleted and the following shall be inserted: "ON THE RESPECTIVE MATURITY DATES specified below, LAKE INGRAM ESTATES ROAD DISTRICT (the "District', being apolitical subdivision ofthe State of Texas, hereby promises to pay to the Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner"), the respective Principal Installments specified below, and to pay interest thereon (calculated on the basis of a 360-day yeaz composed of twelve 30-day months) from March 1, 2001 at the respective Interest Rates per annum specified below, payable on Febmary 15, 2001 and annually on each February 15 thereafter to the respective Maturity Dates specified below, or the date of redemption prior to maturity. The respective Maturity Dates, Principal Installments and Interest Rates for this Bond are set forth in the following schedule: MelUkmr MAnmrtY Dare PeQtCirAt iNTEREbT DATe PRl1vQ@AL )(N~,qT (FEBRUaitlt iS) IiNSTAi.I.1NENT RA18 (FE~ttJARY 15) INSrntat~'r RATE [Insert principal and interest information from Sections 2 and 3 above] (C) The Initial Bond shall be numbered "T-1." SECT1ox6. INTEREST AND SINKING FUND; TAX LEVY. A special Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby created in the County treasury to the credit of the District solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained by the County on behalf of the District at an official depository bank of the County. The Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the County, and shall be used only for paying the interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds and all accrued interest and premium on the Bonds received by the Ihstrict from the initial purchaser of the Bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. Ihuing each yeaz while any of the Bonds or hrterest thereon are outstanding and unpaid, the Ihstrict slrall compute and ascertain a rate and amountofad valoremtax which will be sufficient, together with other moneys deposited to the credit of the Interest and Sinking Fund, to raise and produce the money required to pay the interest nn the Bonds as such interest comes due, and to provide and maintain a sinking fund adequate to pay the principal of its Bonds as such principal matures; and said tax 14 shall be based on the latest approved tax rolls of the District, with full allowance being made for tax delinquencies and the cost oftax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the District for each year while any of the Bonds or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due and such principal matures, are hereby pledged for such payment, without limit as to rote or amount. SECTION 7. CONSTRUCTION FUND. There is hereby created and established in the County treasury to the credit of the District and at a depository of the County a fund to be called the Lake Ingram Estates Road District Unlimited Tax Road Bonds (Series 2001) Construction Fund (herein called the "Constrction Fund"). All proceeds of the Bonds (other than accrued interest and any premium on the Bonds, which shall be deposited into the Interest and Sinking Fund) shall be deposited in the Construction Fund. Money in the Construction Fund shall be subject to disbursements by the County Treasurer in accordance with Sections 1471.023 and 1471.025, Texas Government Code, for payment of all costs incurred in carrying out the purpose for which the Bonds are issued, including but not limited to costs for constnrction, engineering, architecture, financing, financial consultants and legal services related to the project being financed with proceeds of the Bonds and the issuance of the Bonds. All funds rernaniing on deposit in the Constmction Fund upon wmpletion of the projects being financed with the proceeds of the Bonds, if any, other than moneys on deposit therein that are subject to the provisions of Section 12(h) of this Resolution relating to "Excess Earnings", if any, shall be transferred to the Interest and Sinking Fund SECTION 8. INVESTMENTS. Funds on deposit in the Interest and Sinking Fund and the Conshuction Fund shall be secured by the depository bank of the District in the manner and to the extent required by law to secure other public funds of the District and may be invested from time to time in any investment authorized in Section 1471.026 (with respect to the Interest and Sinking Fund only) and the Public Funds Investment Act (Chapter 2256, Texas Government Code) and in compliance with the District's investment policy adopted in accordance with the provisions of the Public Funds Investment Act; provided, however, that investments purchased for and held in the Interest and Sinking Fund shall have a final maturity no later than the date the fiords from such investnents will be required to pay principal and interest next coming due, and investments purchased for aril held in the Construction Fund shall have a final maturity of not later than the date the District reasonably expects the funds from such investments will be required to pay costs of the projects far which the Bands were issued income and profits from such investments shall be deposited in the respective Fund which holds such investments; however, any such income and profits from investments in the Construction Fund may be withdrawn by the District and deposited in the Interest and Sinking Fund to pay all or a portion of the interest next coming due on the Bonds. It is further provided, however, that any interest earnings on Bond proceeds which are required to be rebated to the United States of America pursuant to Section 12 hereof in order to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Section. SECTION 9. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be paid, retired and no longer outstanding (a "Defeased Bond") within the meaning of this Resolution, except to the extent provided in subsection (d) of this Section, when payment of the principal of such Bond, plus interest thereon to the due date (whether such due date be by reason of maturity or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof, or 15 (u) shall have been provided for on or before such due date by irrevocably depositing with or malting available to the Paying Agent/Registrar in accordance with an escrow agreement or other instrument (the "Future Escrow Agreement") for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) Defeasance Securities that mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, ofsufficientmoney to provide for such payment, and when proper arrangements have been made by the District with the Paying AgendRegistrar for the payment of its services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes or revenues herein levied and pledged as provided in this Resolution, and such principal and interest shall be payable solely from such money or Defeasance Securities. Notwithstanding any other provision of this Resolution to the contrary, it is hereby provided that any detem,ination not to redeem Defeased Bonds that is made in conjunction with the payment arrangements specified in subsection (axi) or (ii) of this Section shall not be irrevocable, provided that: (1) in the proceedings providing for such payment arrangements, the District expressly reserves the right to call the Defeased Bonds for redemption; (2) gives notice of the reservation of that right to the owners of the Defeased Bonds immediately following the malting of the payment arrangements; and (3) directs that notice of the reservation be included in any redemption notices that it authorizes. (b) Any moneys so deposited with the Paying Agent/Registrarrnay at the written direction of the District be invested in Defeasance Securities, matru-ing in the amounts and times as hereinbefore set forth, and all income from such Defeasance Securities received by the Paying AgenURegistrar that is not required for the payment of the Bonds and interest thereon, with respect to which such money has been so deposited, shall be turned over to the District, or deposited as directed in writing by the District. Any Future Escrow Agreement pursuant to which the money and/or Defeasance Securities are held for the payment of Defeased Bonds may contain provisions pemritting the investment or reinvestment of such moneys in Defeasance Securities or the substitution of other Defeasance Securities upon the satisfaction of the requirements specified in subsection (axi) or (ii) of this Section All income firm such Defeasance Securities received by the Paying Agent/Registrar which is not required for the payment of the Defeased Bonds, with respect to which such money has been so deposited, shall be remitted to the District or deposited as directed in writing by the District (c) The tenn "Defeasance Securities" means (i) direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instnunentahty of the United States of America, including obligations thatare unconditionally guaranteed or insured by the agency or instrumentality and that, on the date of the purchase thereof are rated as to investment quality by a nationally recognized investment rating fum not less than AAA or its equivalent, and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the District adopts or approves the proceedings authorizing the fmancial arrangements are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. (d) Until all Defeased Bonds shall have become due and payable, the Paying AgenURegistrar shall perfomm the services of Paying AgendRegistrar for such Defeased Bonds the same as if they had not been defeased, and the District shall make proper arrangements to provide and pay for such services as required by this Resolution. 16 (e) In the event that the District elects to defense less than all of the principal amount of Bonds of a maturity, the Paying Agent/Registraz shall select, or cause to be selected, such amount of Bonds by such random method as it deems fair and appropriate. SECTTON 10. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. (a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen, or destroyed, the Paying Agent/Registrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. (b) Application for R~lacement Bonds. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying AgenURegistrar. In every case of loss, theft, or destmction of a Bond, the registered owner applying for a replacement bond shall famish to the District and to the Paying Agent/Registrarsach security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft, or destruction of a Bond, the registered owner shall firtnish to the District and to the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying AgenURegistrar for cancellation the Bond so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event any such Bond shall have mahued, and no default has occurred which is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the District may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is fiunished as above provided in this Section. (d) Charge for Issuing Replacement Bonds. Prior to the issuance of any replacement bond, the Paying AgendRegistrar shall charge the registered owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement bond issued pursuant to the provisions ofthis Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the District whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Resolution equally and proportionately with any and all other Bonds duly issued under this Resolution. (e) Authority for Issuing Replacement Bonds. In accordance with Chapter 1206, Texas Government Code, this Section of this Resolution shall constitute authority for the issuance of any such replacement bond without necessity of fiuther action by the governing body of the District or any other body or person, and the duty ofthe replacement of such bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent/Registrar shall arrthenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 4(a) of this Resolution for Bonds issued in exchange for other Bonds. SECTION 11. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION, BOND INSURANCE, AND CUSIPNUMBERS. The County Judge of the County, on behalf of the District, is hereby authorized to have control of the Bortds initially issued and delivered hereunder and all necessary records and proceedings pertaining to the Bonds pending their 17 delivery and their investigation, examination, and approval by the Attorney General of the State of Texas, and their registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Bonds said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptrollers Registration Certificate attached to such Bonds, and the seal of said Comptroller shall be impressed, or placed in facsimile, on such Certificate. The approving legal opinion of the District's Bond Counsel (together with an appropriate certificate pertaining thereto executed by facsimile signature of the County Clerk of the County, on behalf ofthe District) and the assigned CUSIP numbers may, at the option of the District, be printed on the Bonds issued and delivered under this Resolution, but neither shall have any legal effect, and shall be solely for the convenience and infom~ation of the registered owners of the Bonds. In addition, if bond insurance is obtained, the Bonds may beaz an appropriate legend as provided by the insurer. SFb"I'tON 12. COVENANTS REGARDING TAX-EXEMPTION OF INTEREST ON THE BONDS. The District covenants not to take any action or refrain from taking any action which would adversely affect the treatment of the Bonds as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which is not includable in the "gross income"ofthe holder for purposes of federal income taxation. In furtherance thereof, the District covenants as follows: (a) to take any action to assure that no mare than 10 percent of the proceeds of the Bonds (less amounts deposited to a reserve fund, if any) aze used for any "private business use," as defined in section 141(6)(6) of the Code or, if more than 10 percent of the proceeds are so used, that amounts, whether or not received by the District, with respect to such private business use, do not, under the temps of this Resolution or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Bonds, in contravention of section 141(6)(2) of the Code; (b) to take any action to assure that in the event that the "private business use" described in subsection (a) hereof exceeds 5 percent of the proceeds ofthe Bonds (less amounts deposited into a reserve fund, if any) [hen the amount in excess of 5 percent is used fora `private business use" which is "related" and not "disproportionate," within the meaning of section 141(6x3) of the Code, to the governmental use; (c) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (d) to refrain from taking any action which would otherwise result in the Bonds being treated as "private activity bonds" within the meaning of section 141(6) of the Code; (e) to refrain from taking any action that would result in the Bonds being "federally guaranteed" within the meaning of scction 149(6) of the Code; 18 (f) to refrain from using any portion ofthe proceeds ofthe Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the Bonds, other than investment property acquired with -- (1) proceeds ofthe Bonds invested for a reasonable temporary period of 3 years or less or, in the case of a refunding bond, for a period of 30 days or less until such proceeds are needed for the purpose for which the bonds are issued, (2) amounts invested in a bona fide debt service fund, within the meaning of section 1.148-1(b) ofthe Treasury Regulations, and (3) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent ofthe proceeds ofthe Bonds; (g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds ofthe Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 ofthe Code (relating to arbitrage) and, to the extent applicable, section 149(d) ofthe Code (relating to advance refimdings); and (h) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery ofthe Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings," within the meaning of section 148(t) ofthe Code and to pay to the United States of America, not later than 60 days after the Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(f) ofthe Code. For purposes of the foregoing (a) and (b), the District understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance ofthe Bonds. It is the understanding of the District that the covenants contained herein are intended to assure compliance with the Code and any regulations or ndmgs promulgated by the U.S. Depaztment of the Treasury pursuant thereto. In furtherance of such intention, the District hereby authorizes and directs the County Judge, County Clerk, County Auditor and County Treastuer, on behalf of the District, to exewte any documents, certificates or reports required by the Code and to make such elections, on behalf ofthe District, which may be pemritted by the Code as are consistent with the purpose for the issuance of the Bonds. In the event that regulations or nilings are hereafter promulgated which modify, or expand provisions of the Code, as applicable to the Bonds, the District will not be required to comply with any covenant contained herein to the extent that such modification or expansion, in the opinion ofnationally-rec- ognized bond counsel, will not adversely affect the exemption from federal inwme taxation of interest on the Bonds under section 103 ofthe Code. Tn the event that regulations or rulings are hereafter promulgated whichimpose additional requirements which aze applicable to the Bonds, the District agrees to comply with the additional requirements to the extent necessazy, in the opinion ofnationally-recognized bond counsel, to preserve the exemption firm federal income taxation of interest on the Bonds under section 103 ofthe Code. 19 Tn order to facilitate compliance with the above covenant (h), a "Rebate Fund" may be estabhshed by the District at its depository for the sole benefit of the United States of America, and such Fund shall not be subject to the claim of any other person, including without limitation the Registered Owners of the Bonds. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code. SECTION 13. DESIGNATION AS QUALIFIED TAX-EXEMPT OBLIGATIONS. The District hereby designates the Series 2001 Bonds as "qualified tax~xempt obligations" as defined in section 265(b)(3) of the Code. In furtherance of such designation, the District represents, covenants and warrants the following: (a) that during the calendaz year in which the Bonds are issued, the District (including any subordinate entities) has not designated nor will designate bonds or other obligations, which when aggregated with the Bonds, will result in more than $10,000,000 of"qualifiedtax-exempt obligations" being issued; (b) that the District reasonably anticipates that the amount of tax~xempt obligations issued during the calendaz year in which the Bonds are issued by the District (or any subordinate entities) will not exceed $10,000,000; and, (c) that the District will take such action or refiain from such action as necessary, and as more particularly set forth in Sectionl2 hereof, in order that the Bonds will not be considered "private activity bonds" within the meaning of section 141 of the Code. SECT[ON 14. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR TAE PROJECT. The District covenants to account for the expenditure of sale proceeds and investment earnings to be used for the purposes described in Section 1 of this Resolution (the "Project") on its books and records by allocating proceeds to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Project is completed. The foregoing notwithstanding, the District shall not expend sale proceeds or investment earnings thereon more than 60 days after the eazlier of (1) the fifth anniversary of the delivery of the Bonds, or (2) the date the Bonds are retired, unless the District obtains an opinion ofnationally-recognized bond counsel that such expenditure will not adversely affect the tax- exempt status of the Bonds. For purposes hereof, the District shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. SECT[ON 15. DISPOSITION OF PROJECT. The District covenants that the property constituting the Project will not be sold or otherwise disposed in a transaction resulting in the receipt by the District of cash or other compensation, unless the District obtains anopinion ofnationally-recognized bond counsel that such sale or other disposition will not adversely affect thetax-exempt status of the Bonds. For purposes of the foregoing, the portion of the property comprising personal property and disposed in the ordinary course shall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes hereof, the District shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. SECT[ON 16. SALE OF BONDS. The Bonds are hereby initially sold and shall be delivered to the First National Bank of Edinburg for cash for the paz value thereof, plus a premium of $-0-, ph>s accrued interest thereon to the date of delivery. It is hereby officially found, determined and declared that the temrs of this sale aze the most advantageous reasonably obtainable. The Bonds initially shall be registered in the name of the First National Bank of Edinburg. 20 SeCrtoN17. FURTHERPROCEDURES. TheCounryJudge,CounryClerk,CounryAuditor and County Treasurer ofthe County, on behalf of the District, and all other officers, employees, and agents of the District, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do and perform all such acts and things and to execute, aclmowledge, and deliver in the name and under the corporate seal and on behalf of the District all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the tem>s and provisions of this Resolution and the Bonds. In addition, prior to the initial delivery of the Bonds, the CountyJudge and County Clerk ofthe County, and the County's Bond Counsel are hereby authorized and directed to approve any technical changes or correction to this Resolution or to any ofthe instruments authorized and approved by this Resolution necessary in order to (i) correct any ambiguity or mistake or properly or more completely document the transactions contemplated and approved by this Resolution, (n) obtain a rating from any of the national bond rating agencies, if any rating is obtained, or satisfy any requirements ofthe provider of a municipal bond insurance policy, if any, or (iii) obtain the approval ofthe Bonds by the Attorney General ofthe State of Texas. In case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such dehvery. SF.CITON 18. RESOLUTION A CONTRACT; AMENDMENTS. This Resolution shall constitute a contract with the Registered Owners ofthe Bonds, binding on the District and its successors and assigns, and shall not be amended or repealed by the District as long as any Bond remains outstanding except as permitted in this Section. The District may, without the consent of or notice to any Registered Owners, amend, change, or modify this Resolution as may be required (i) by the provisions hereof, (ri) for the purpose of curing any ambiguity, inconsistency, or formal defect or omission herein, or (iii) in connection with any other change which is not to the prejudice ofthe Registered Owners. The District may, with the written consent ofthe Registered Owners of a majority in aggregate principal amount of the Bonds then outstanding affected thereby, amend, change, modify, or rescind any provisions ofthis Resolution; provided that without the consent of all of the Registered Owners affected, no such amendment, change, modification, or rescission shall (i) extend the time or times of payment of the principal of and interest on the Bonds, reduce the principal amount thereof or the rate of interest thereon, (ii) give any preference to any Bond over any other Bond, (ii) extend any waiver of default to subsequent defaults, or (iv) reduce the aggregate principal amount of Bonds required for consent to any such amendment, change, modification, or rescission. Whenever the District shall desire to make any amendment or addition to or rescission of this Resolution requiring consent of the Registered Owners, the District shall cause notice of the amendment, addition, or rescission to be sent by first class mail, postage prepaid, to the Registered Owners at the respective addresses shown on the Registration Books. Whenever at any time within one year after the date of the giving of such notice, the District shall receive an instnunent or instuments in writing executed by the Registered Owners of a majority in aggregate principal amount of the Bonds then outstanding affected by any such amendment, addition, or rescission requiring the consent ofthe Registered Owners, which instrument or instruments shall refer to the proposed amendment, addition, or rescission descnbed in such notice and shall specifically consent to and approve the adoption thereof in substantially the fomr ofthe copy thereof referred to in such notice, thereupon, but not otherwise, the District may adopt such amendment, addition, or rescission in substantially such form, except as herein provided. No Registered Owner may thereafter object to the adoption of such amendment, addition, or rescission, or to any of the provisions thereof, and such amendment, addition, or rescission shall be fully effective for all Purposes. 21 SECTION 19. INTERESTED PARTIES. Nothing in this Resolution expressed or implied is intended or shall be construed to confer upon, or to give to, any person or entity, other than the District and the registered owners of the Bonds, any right, remedy or claim under or by reason of this Resolution or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in this Resolution contained by and on behalf of the District shall be for the sole and exclusive benefit of the District and the registered owners of the Bonds. SECrIOx20. INCORPORATION OF RECITALS. The District hereby finds that the statements set forth in the recitals of this Resolution are hue and correct, and the District hereby incorporates such recitals as a part of this Resolution. SECTTON21. SEVERABILITY. The provisions of this Resolution are severable and if any provision or the applicability thereof to any person or circumstance is ever held by a court of competent jurisdiction to be invalid or unconstitutional for any reason, the m„a;,,der of this Resolution and the application of such provisions to other persons or circumstances shall not be affected thereby. SECTION 22. EFFECTIVE DATE. This Resolution shall become effective immediately after its adoption. [The remainder of this page intentionally left blank.) 22 ADOPTED BY THE COMMISSIONERS COURT OF KERR COUNTY, TEXASAT A REGULAR MEETING HELD ON THE 26TH DAY OF FEBRUARY, 2001. County Clerk County Judge Kerr County, Texas Kerr County, Texas (DISTRICT SEAL) [SIGNATURE PAGE TO BOND RESOLUTION] EXHIBIT A THE PAYING AGENT/REGISTRAR AGREEMENT IS OMITTED AT THIS POINT AS IT APPEARS IN EXECUTED FORM ELSEWHERE IN THIS TRANSCRIPT. 'roo-2'-C' 03:35am Frum-M~'CCA1L Fa FK?dFST . !2135355 '-P.6 P 7.: :: ~-3a5 ~_ , ~i ~~ '.nW OFFICES M~CAL_L, r~ARKhIJ!35T 8 HOR7~~N ~,L,F. T9 NOFTV'. `IAFiW .O[ h NTI'+ F_G^F ^_~AL_A5, ?E,XA57520rS5B' %GO N. ST MAF^Y~ STa'~E' 12E'9 Ghe. PI JERYV4~_) '~ L.E SAN PN?ONIO, ?EY•A5 78ltOSJSC~_ 507 90 ~G ~"`-5 ~ AdC'uuE 2.O ,']hE :.ti;EaIC>N CENTtF FLST~N, TH%AE TF. :'C:F3 Z49 [.[onan¢ a„Z .lib.=SJi r.e=~M~~~ as a _oco~ February 27, 2001 &y Telecopy (830.,'~~.2218/ Tl:e Honorable Fred He:treke County judge,lCerr County, Te+:as Kerr County Courthouse 700'13ain Street Renville, Texas 7802& RE. il~.I~E. T:~GS:,~.~4 E$TA':'ES RD,1U ~DTS"'.RY."i UN[.fA11'rcll TP.X ROAD BONDS, SrRIES 2001 Dear :udae I•Ienneke. Accardingto Section 81.0061. Texas Local Crovernment Code. the Commissioners Couri may ',evy a "county tax" only durinb a regularly scheduled meeting of the Court. The tax that the Commissioners Cvn:t authorized to be levied y'csterday evening in c;onnectlcn with the issuance of :he captioned bands applies crly to the property located within tho Lake Ingrain Es?ales Road District; consecuently, it is not a "ccunty tax" even though it was authorized by the Commissioners Court. Accordingly,un'.esstheAttorneyGet:eral'soff•,cedisagreesk'ithth~sinterpretationofSection 31.006, it wia nat be necessary to take action. during a regular meeting of the Cam,nissioners Court to essentially ratiYL or re•adept the le~.y cY the tax imposed ir: the Resolusion approved by the Court yesterday evening. I appreciate your.~~l'.ing:tess .o comider another agsnda item during a regular meeting of the Court to implement theta, levy.vithin the Districe, b.It it does not appear chat such additional action will be necessary P'.ease let me know if yeu have any questions, l'ordiaAy ypurs, Thomas K. Spurgeon cc: Robert V. Henderson - Dain Rausct.er. Inc.