CITY OF CLUTE, TEXAS
NOTICE OF INTENTION TO ISSUE
COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION

            The City Council of the City of Clute, Texas (the "City") does hereby give notice of intention to issue one or more series of City of Clute, Texas Combination Tax and Revenue Certificates of Obligation in the maximum aggregate principal amount not to exceed $3,775,000 for the purpose of paying, in whole or in part, contractual obligations to acquire, construct and equip street and sidewalk improvements at various locations in the City, improvements to City playgrounds and the City Service Center, and electrical improvements at various City facilities (collectively, the "Projects"), and paying all or a portion of the legal, fiscal, and engineering fees in connection with the Projects and costs of issuance related to such Certificates of Obligation.  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 lien on and pledge of "Surplus Revenues," if any, received by the City from the ownership and operation of the City's municipal waterworks and sewer system.  The current principal of all currently outstanding debt obligations of the City is $2,890,000, the combined principal and interest required to pay all currently outstanding debt obligations of the City on time and in full is $3,570,213, the estimated combined principal and interest required to pay the proposed Certificates on time and in full is $4,694,958, the estimated interest rate for the proposed Certificates is 3.25%, and the maximum maturity date of the proposed Certificates is February 1, 2040.  The prior statements regarding currently outstanding debt obligations of the City do not include debt that the City has designated as self-supporting and payable from revenues other than ad valorem taxes, if any.  The City Council proposes to authorize the issuance of such Certificates of Obligation at 7:00 p.m. on Thursday, September 10, 2020, at a Regular Meeting at the City Hall, City of Clute, Texas.

 

    /s/ Calvin Shiflet                                                                                                                                         Mayor, City of Clute, Texas