News Flash

Home

Posted on: September 26, 2019

Notice of Intent to Issue Debt

CITY OF KAUFMAN, TEXAS

NOTICE OF INTENTION TO ISSUE

COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION

NOTICE IS HEREBY GIVEN that the City Council of the City of Kaufman, Texas, at its meeting to commence at 6:00 P.M. on November 25, 2019, at the City Hall Council Chambers, 209 South Washington, Kaufman, Texas 75142, tentatively proposes to adopt one or more ordinances authorizing the issuance of interest bearing certificates of obligation, in one or more series, in an amount not to exceed $3,625,000 for paying all or a portion of the City’s contractual obligations incurred in connection with: (i) constructing,  installing, acquiring and equipping renovations and improvements to a City owned building to be used as a civic and community center, and related infrastructure for such improvements (ii) constructing, acquiring, installing, and equipping municipal park and recreation improvements and related infrastructure for such improvements, and (iii) legal, fiscal and engineering fees in connection with such projects.  The City proposes to provide for the payment of such certificates of obligation from the levy and collection of ad valorem taxes in the City as provided by law and from a pledge of limited surplus revenues of the City’s waterworks and sewer system, remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve, and other requirements in connection with all of the City’s revenue bonds or other obligations (now or hereafter outstanding), which are payable from all or any part of the net revenues of the City’s waterworks and sewer system.  The certificates of obligation are to be issued, and this notice is given, under and pursuant to the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended.

In accordance with the provisions of Texas Local Government Code, Subchapter C of Chapter 271, as amended (“Chapter 271”), the following information has been provided by the City (excludes $15,855,000 principal amount of outstanding debt obligations the City has designated as self-supporting and which the City reasonably expects to pay from revenue sources other than ad valorem taxes; provided, however, that in the event such self-supporting revenue sources are insufficient to pay debt service, the City is obligated to levy ad valorem taxes to pay such debt obligations): (i) the principal amount of all outstanding debt obligations of the City is $13,235,000; (ii) the current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full is $17,282,186; (iii) the maximum principal amount of the certificates of obligation to be authorized is $3,625,000; (iv) the estimated combined principal and interest required to pay the certificates of obligation to be authorized on time and in full is $4,630,717; (v) the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and (iv) the maximum maturity date of the certificates of obligation to be authorized is February 15, 2039.  The resolution designating certain outstanding debt obligations of the City as self-supporting for purposes of Chapter 271 is available upon request to the City at the address noted above.

Facebook Twitter Email