NOTICE IS HEREBY GIVEN that it is the intention of the City Council of the City of Belton, Texas, to issue interest bearing Certificates of Obligation of the City (the "Certificates") for the purpose of paying contractual obligations incurred or to be incurred by the City for: (1) constructing, improving and/or extending the City's waterworks and sewer system, including for the North Belton elevated storage tank, McFarland Estates water and sewer improvements, Sixth Avenue water line replacement, and Loop 121 pump replacements, including any associated street and sidewalk improvements and the acquisition of any necessary easements or land; and (2) professional services including fiscal, engineering, architectural and legal fees and other such costs incurred in connection therewith including the costs of issuing the Certificates. The City Council tentatively proposes to consider for first and final reading at a meeting to commence at 5:30 p.m., on the 11th day of January, 2022 at its regular meeting place at the Harris Community Center in the Wright Room located at 401 North Alexander in Belton, Texas 76513, the passage of an ordinance authorizing the Certificates. The maximum amount of the Certificates that may be authorized for such purpose is $7,000,000. The City Council presently proposes to provide for the payment of the Certificates from the levy of ad valorem taxes and from a limited pledge of the surplus revenues derived from the operation of the City's combined waterworks and sewer system, after payment of all operation and maintenance expenses 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 revenues of the City's combined waterworks and sewer system, which amount shall not exceed $1,000.
In accordance with the City's home rule charter, the City also intends to hold a public hearing with respect to the proposed issuance of the Certificates at its regular meeting place at the Harris Community Center in the Wright Room located at 401 North Alexander in Belton, Texas 76513 at a meeting on the 14th day of December, 2021, to commence at 5:30 p.m. Pursuant to state law, if before the City takes action to authorize the issuance of the Certificates the City Clerk receives a petition signed by at least five percent of the qualified voters of the City protesting the issuance of the Certificates, the City may not authorize the issuance of the Certificates unless such issuance is approved at an election held within the City.
The following information is required pursuant to Texas Local Government Code, Section 271.049: As of November 9, 2021, the aggregate principal amount of all outstanding debt obligations of the City secured by and payable from ad valorem taxes is $27,520,000. As of November 9, 2021, the combined principal and interest required to pay all outstanding debt obligations of the City secured by and payable from ad valorem taxes on time and in full is $33,441,202. Such amounts also include debt service on debt that the City currently intends to pay from sources other than ad valorem taxes but that could be paid from ad valorem taxes if such other sources are not available at the time required for payment. The estimated combined principal and interest required to pay the Certificates on time and in full is $8,960,427. The estimated interest rate for the Certificates is 2.40%. Such estimates take into account a number of factors, including the issuance schedule, maturity schedule and the expected ratings of the proposed Certificates. Such estimated interest rate is provided as a matter of information but is not a limitation on the interest rate at which the Certificates may be sold. The maximum maturity date of the Certificates is August 1, 2042.
Additionally, the Certificates must have a True Interest Cost of no greater than 4.00% and must be subject to redemption at the option of the City by no later than August 1, 2031.
CITY OF BELTON, TEXAS