HomeMy WebLinkAboutNOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION
NOTICE IS HEREBY GIVEN that the City Council of the City of Port Arthur, Texas
(the "City") will meet in person at 10:00 a.m. on August 15, 2023, which is the time and
place tentatively set for the passage of one or more an ordinances and such other action
as may be deemed necessary to authorize the issuance of the City's certificates of
obligation, payable from ad valorem taxation and a limited (in an amount not to exceed
$10,000) subordinate pledge of certain revenues of the waterworks and sewer system of
the City, in the maximum aggregate principal amount not to exceed $25,500,000 for the
purpose of evidencing the indebtedness of the City to pay all or any part of the contractual
obligations to be incurred for the purpose of the construction of public works, more
specifically, (1) the construction or reconstruction of City streets and other street related
improvements, including but not limited to drainage and sidewalks on such street projects
(2) a fire station, (3) water projects, (4) solid waste projects, (5) certain projects on
Pleasure Island, including dock repairs, a disc golf course and Lakefront Park playscapes;
and (6) any items related to items (1)-(5) hereto, and for the payment of contractual
obligations for professional services incurred in connection with the construction of such
public works.
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 ("Chapter 271").
In accordance with the provisions of Chapter 271, the following information has
been provided by the City (excludes $65,144,990 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 $44,050,010; (ii) the current
combined principal and interest required to pay all outstanding debt obligations of the City
on time and in full is $59,444,360; (iii) the maximum principal amount of the certificates
of obligation to be authorized is $25,500,000; (iv) the estimated combined principal and
interest required to pay the certificates of obligation to be authorized on time and in full is
$40,923,720; (v) the maximum interest rate for the certificates may not exceed the
maximum legal interest rate; and (vi) the maximum maturity date of the certificates of
obligation to be authorized is August 15, 2043.
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 noted above.
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The public will also be able to view the Public Hearing via the City's website at
www.portarthurtx.gov. Any person may participate in the Public Hearing and address the
City Council by dialing one of the Toll Free Numbers: (877) 853-5247 US Toll Free and
(888) 788-0099 US Toll Free and Entering the Meeting ID: 876 6650 3850 and Participant
ID: 248742.
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WITNESS MY HAND AND THE OFFICIA EAL OF THE
E CITY, th
day of (x e 2023.
Sherri Bellard, City Secretary
City of Port Arthur, Texas