NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION

NOTICE IS HEREBY GIVEN that the City Council of the City of Corinth, Texas, at its meeting to commence at 5:45 P.M. on March 16, 2023, at its regular meeting place in the City Hall, 3300 Corinth Parkway, Corinth, Texas, or telephonically at the dial-in number and access code published on the City’s website in the event such meeting may not be held in person, tentatively proposes to adopt an ordinance authorizing the issuance of interest bearing certificates of obligation, in one or more series, in an amount not to exceed $11,500,000, for paying all or a portion of the City's contractual obligations incurred in connection with:

(i) constructing and improving streets, roads, alleys and sidewalks, and related utility relocation, drainage, signalization, landscaping, lighting and signage and including acquiring land and interests in land therefor;
(ii) constructing and equipping municipal drainage improvements, including flood control and flood mitigation improvements and acquiring land therefor;
(iii) constructing, acquiring, installing and equipping additions, extensions and improvements to the City’s waterworks and sewer system;
(iv) constructing, acquiring and equipping municipal park improvements; and
(v) paying legal, fiscal, engineering and architectural fees in connection with these 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 limited pledge of 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 (“Chapter 271”).

In accordance with the provisions of Chapter 271, the following information has been provided by the City:

(a) The principal amount of all outstanding debt obligations of the City is $59,085,000;
(b) The current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full is $74,480,286;
(c) The maximum principal amount of the certificates of obligation to be authorized is $11,500,000;
(d) The estimated combined principal and interest required to pay the certificates of obligation to be authorized on time and in full is $17,196,623;
(e) The estimated interest rate for the certificates of obligation to be authorized is 4.20%; and
(f) The maximum maturity date of the certificates of obligation to be authorized is February 15, 2043.

The City has not designated any of its outstanding debt listed above as self-supporting for purposes of Chapter 271.

CITY OF CORINTH, TEXAS