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Posted on: December 3, 2019

Notice of Intention to Issue Certificates of Obligation of the City of Krum, Texas


NOTICE IS HEREBY GIVEN that the City Council of the City of Krum, Texas (the "City"), at its meeting to commence at 6:30 p.m. on February 3, 2020, at the Krum City Hall at 146 West McCart Street in Krum, Texas, tentatively proposes to adopt one or more ordinances authorizing the issuance of certificates of obligation, in one or more series, in an amount not to exceed $8,750,000 for the purpose of paying all or a portion of the City's contractual obligations incurred in connection with: (1) acquiring, constructing, installing and equipping additions, improvements, extensions and equipment for the Town's waterworks and sewer system (the "System"); (2) constructing, improving, extending, expanding, upgrading and developing streets and roads and intersections, including utility relocation, landscaping, sidewalks, traffic safety and operational improvements and the purchase of any necessary right-of-way and other related costs; (3) constructing, improving, extending, expanding, upgrading and developing parks and recreation facilities, including fields, trails, utility relocation, landscaping, sidewalks and operational improvements, installation of lighting, the purchase of any necessary rights-of-way, drainage and other related costs; and (4) paying legal, fiscal, engineering and architectural fees in connection with such projects.  The maximum interest rate for the certificates will not exceed the maximum legal interest rate.  The maximum maturity date for the certificates is February 15, 2040.  The estimated combined principal and interest required to pay the certificates to be authorized on time and in full is $11,524,885.  The City currently has outstanding debt obligations (not including self-supporting debt obligations) equal to $4,533,691 in principal amount and $5,791,594 in combined principal and interest required to pay such outstanding debt obligations on time and in full.  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 surplus revenues of the System that remain after payment of all operation and maintenance expenses thereof, and after all debt service, reserve and other requirements in connection with all revenue bonds or other obligations (now or hereafter outstanding) of the City have been met, to the extent that such obligations are payable from all or any part of the net revenues of the System.  The certificates of obligation are to be issued, and this notice is given, under and pursuant to the provisions of V.T.C.A., Local Government Code, Subchapter C of Chapter 271.


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