West DFW News

     NOTICE IS HEREBY GIVEN that the City Council of the City of Commerce, Texas (the “City”), at its meeting to commence at 6:00 p.m. on April 18, 2023, in the City Council Chamber at City Hall, 1119 Alamo Street, Commerce, 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 $7,000,000, for the purpose of paying all or a portion of the City’s contractual obligations incurred in connection with (i) constructing, improving, extending, expanding, upgrading the City’s water and sewer system (the “System”); (ii) constructing and improving streets, roads and parking facilities, including related drainage, signalization, landscaping, sidewalks, lighting, utility relocation and replacement, bridges, signage and streetscape improvements; (iii) designing, constructing, improving and equipping a municipal animal shelter, including the acquisition of land therefore; and (iv) paying 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 the 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. 

     The following information is provided to comply with Tex. H.B. 477, 86 Leg., R.S. (2019): (i) the current principal of all outstanding debt obligations of the City is $13,549,955; (ii) the current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full is $17,747,668 (clauses (i) and (ii) exclude debt service for $7,763,000 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); (iii) the maximum principal amount of the certificates of obligation to be authorized is $7,000,000; (iv) the estimated combined principal and interest required to pay the certificates of obligation to be authorized on time and in full is $10,161,771; (v) the maximum interest rate for the certificates of obligation may not exceed the maximum legal interest rate; and (vi) the maximum maturity date of the certificates of obligation to be authorized is February 15, 2043. 

                                                                                                                        CITY OF COMMERCE, TEXAS

Original source can be found here.