The City Council of Paris, Texas, has announced its intention to consider the adoption of ordinances authorizing the issuance of interest-bearing certificates of obligation. The proposed issuance, totaling an amount not exceeding $65,000,000, aims to address contractual obligations related to the enhancement of the City's waterworks and sewer system.
The City Council meeting, scheduled for March 25, 2024, at 5:30 p.m., will convene at the City Council Chamber in City Hall, located at 107 E. Kaufman Street, Paris, Texas 75460. The funds generated through the certificates of obligation will be utilized for the acquisition, construction, installation, and equipment of additions, improvements, and extensions to the City's waterworks and sewer system. Additionally, the proceeds will cover legal, fiscal, and engineering fees associated with these projects.
Funding for the certificates of obligation is proposed to come from ad valorem taxes within the City, as per legal provisions. The surplus revenues from the System, after meeting operation and maintenance expenses and other obligations, will also contribute to the payment of these certificates. The issuance and notice adhere to the V.T.C.A., Local Government Code, Subchapter C of Chapter 271.
To comply with Tex. H.B. 477, 86 Leg., R.S. (2019), the City provides key financial information. The current principal of all outstanding debt obligations stands at $91,260,000, with the combined principal and interest required for timely and full payment amounting to $133,861,515. The proposed maximum principal amount for the certificates is $65,000,000, with an estimated combined principal and interest requirement of $125,339,761 for on-time and full payment. The certificates' maximum interest rate will not exceed the legal limit, and their maturity date is set at June 15, 2054.
It is essential to note that the disclosed information does not exclude any outstanding debt obligations designated by the City as self-supporting, expected to be paid from revenue sources other than ad valorem taxes. The City Council encourages public awareness and participation in the upcoming meeting to discuss and deliberate on this proposed financial initiative.
