City of Abilene intends to issue up to $23.6 million in bonds for street repairs

Abilene

ABILENE, Texas (KTAB/KRBC) – The City of Abilene has announced their intent to issue up to $23.6 million in bonds to fund street repairs.

During Thursday morning’s meeting, council members agreed on their intent to adopt an ordinance that would authorize interest bearing certificates of obligation in an amount not exceeding $23,600,000 for the repair projects.

This is just the preliminary notice of intent and a final approval of the bonds – coupled with an exact dollar amount – will be discussed during a meeting August 12.

Because these bonds are certificates of obligation, no voter approval is needed.

If officially approved, the funds would be used to make repairs in two areas of town – Maple Street from FM 707 to ES 11th Street and EN 10th Street from Treadaway Blvd to Loop 322.

Read the entire notice given by the City of Abilene and council members below:

NOTICE IS HEREBY GIVEN that the City Council of the City of Abilene, Texas, at its meeting to commence at 8:30 A.M. on August 12, 2021, at its regular meeting place at 555 Walnut Street, 2nd Floor Council Chambers, Abilene, Texas, 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 $23,600,000 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, and (ii) 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 $107,240,000 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):

(a)    The principal amount of all outstanding debt obligations of the City is $329,700,000; 

(b)    The current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full is $437,286,033; 

(c)    The maximum principal amount of the certificates of obligation to be authorized is $23,600,000;

(d)    The estimated combined principal and interest required to pay the certificates of obligation to be authorized on time and in full is $30,601,271; 

(e)    The estimated interest rate for the certificates of obligation to be authorized is 2.61%; and

(f)    The maximum maturity date of the certificates of obligation to be authorized is February 15, 2042.

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.

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