NOTICE OF INTENTION TO ESTABLISH A CERTIFICATE OF OBLIGATION NOTE PROGRAM, TO ISSUE PROGRAM NOTES , AND TO EXECUTE AND DELIVER A NOTE PURCHASE AGREEMENT
NOTICE IS HEREBY GIVEN that the City Council of the City of Waco, Texas (the “City”), will meet in the Bosque Theater in the Waco Convention Center at 100 Washington Avenue, Waco, Texas at 6:00 p.m. on the 16th day of June, 2026, which is the time and place tentatively set for the passage of an ordinance (the “Ordinance”) authorizing
(i) the establishment of the CITY OF WACO, TEXAS, CERTIFICATE OF OBLIGATION NOTE PROGRAM (the “Note Program”) pursuant to Subchapter C of Chapter 271, Texas Local Government Code (the “Certificate of Obligation Act”), and Chapter 1371, Texas Government Code (“Chapter 1371” and, together with the Certificate of Obligation Act, the “Acts”); and
(ii) the execution and delivery of a Note Purchase Agreement (the “Note Purchase Agreement”), as a credit agreement under Chapter 1371, in connection the Note Program, to provide for the issuance from time to time of certificate of obligation program notes (“Program Notes”) pursuant to the Note Program.
The Ordinance will authorize the issuance of Program Notes from time to time, in accordance with the requirements and procedures in the Ordinance, the Note Purchase Agreement and the Acts, in the aggregate maximum principal amount not to exceed TWO HUNDRED MILLION DOLLARS ($200,000,000) (the “Maximum Principal Amount”). Pursuant to the Ordinance, Program Notes are being authorized and may be issued for the purposes of
(i) evidencing the indebtedness of the City for all or any part of the costs associated with
(1) construction and acquisition of, and improvements to, City streets, including traffic control systems, traffic safety improvements, landscaping, street lighting, bridges, sidewalks, utility relocation and drainage improvements, including in each case the acquisition of land and rights-of-way in connection therewith;
(2) construction, acquisition, restoration, and improvement of City parks and recreation facilities, including in each case the acquisition of land and right-of-way in connection therewith;
(3) improvements to the City’s sanitary sewer system and facilities, including in each case the acquisition of land and rights-of-way in connection therewith;
(4) improvements to the City’s waterworks system and facilities, including in each case the acquisition of land and rights-of-way in connection therewith;
(5) improvements to the City’s drainage facilities, including in each case the acquisition of land and right-of-way in connection therewith; and
(6) professional services incurred in connection with items (1) through (5);
(ii) paying the costs incurred in connection with the Note Program, including the costs of any credit agreements entered into with respect thereto, and the costs of issuance of Program Notes (collectively, the “Note Costs”); and
(iii) refunding, refinancing, renewing, replacing or redeeming previously issued Program Notes; provided, that Program Notes issued for the purposes in items (i) and (ii) may not be issued in an aggregate principal amount that exceeds the Maximum Principal Amount.
Each Program Note shall mature on a date that is not later than the earlier to occur of
(i) the 364th day after the issuance date of the subject Program Note,
(ii) the termination date of the related Note Purchase Agreement, and
(iii) September 30, 2030 (the “Maximum Maturity Date”).
The amount of the Note Purchase Agreement shall not exceed the Maximum Principal Amount, and the term of any Note Purchase Agreement shall not extend beyond the Maximum Maturity Date. The Program Notes shall bear interest at such rate or rates per annum and for such time periods as determined at the time of issuance by an authorized officer of the City pursuant to the provisions of the Ordinance and the Note Purchase Agreement; provided, however, that no Program Note shall bear interest at a rate that exceeds the maximum rate authorized by law.
The Program Notes and the Note Costs shall be payable from
(i) a pledge of ad valorem taxes, levied within the limits prescribed by law, and from a limited pledge of certain surplus revenues of the City’s water and sewer system in an amount not to exceed $1,000,
(ii) amounts held in the Note Payment Fund established in the Ordinance for the Note Program,
(iii) the proceeds from the sale or exchange of other Program Notes issued for the purpose of refunding, refinancing, renewing, replacing or redeeming Program Notes and
(iv) the proceeds of refunding bonds issued for the purposes of refunding, refinancing or redeeming Program Notes.
The Program Notes issued under the Note Program are being issued as interim financing, and the City intends to refund the Program Notes through the issuance of refunding bonds secured by ad valorem taxes, with a maturity of up to 40 years from the issuance date of such refunding bonds, pursuant to Chapter 1207, Texas Government Code, and Chapter 1371. Based on the foregoing, the amount of the estimated combined principal and interest on the indebtedness evidenced by the Program Notes and the refunding bonds issued to refinance or refund the Program Notes and the Note Costs is $407,258,350. Such estimate is provided for illustrative purposes only and assumes the Program Notes are outstanding at the Maximum Principal Amount until the Maximum Maturity Date, bear interest at an assumed interest rate of 3.50% until the Maximum Maturity Date, and are refunded and refinanced on the Maximum Maturity Date with refunding bonds issued by the City that amortize over a 30 year period and bear interest at an assumed rate of 4.75%. Notwithstanding the foregoing assumptions, the City intends to issue the Program Notes in installments during the term of the Note Program to reduce the interest costs to the City. Market conditions affecting interest rates vary based on a number of factors beyond the control of the City, and the City cannot and does not guarantee a particular interest rate associated with the Program Notes or the bonds issued to refund the Program Notes. As of the date of this notice, the aggregate principal amount outstanding of tax-supported debt obligations of the City (excluding public securities secured by an ad valorem tax but designated by the City as self-supporting in Resolution No. 2026-___ dated April 21, 2026, which resolution is available from the City upon request) is $775,170,000 and based on the City’s expectations, as of the date of this notice the combined principal and interest required to pay all of the outstanding tax-supported debt obligations of the City (excluding public securities secured by an ad valorem tax but designated by the City as self-supporting) on time and in full is $1,189,426,342.
Posted 4/23/2026