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R-2025-025 - 2/13/2025 RESOLUTION NO. R-2025-025 RESOLUTION AUTHORIZING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE COMBINATION TAX AND LIMITED REVENUE CERTIFICATES OF OBLIGATION,SERIES 2025 AND OTHER MATTERS RELATED THERETO THE STATE OF TEXAS § COUNTIES OF TRAVIS AND WILLIAMSON § CITY OF ROUND ROCK § WHEREAS, the City Council(the"Council")ofthe City of Round Rock,Texas(the"City") has determined that it is in the best interest of the City to proceed with the issuance of certificates of obligation ("Certificates") to implement certain projects; and WHEREAS, the City Council of the City finds that the payment in whole or in part of contractual obligations incurred or to be incurred for the purposes set forth in Exhibit "A" attached hereto (the "Contractual Obligations") would be beneficial to the inhabitants of the City and are needed to perform essential City functions; and WHEREAS, the Council has deemed it advisable to give notice of intention to issue the Certificates in a maximum principal amount not to exceed $20,000,000 pursuant to the provisions of the Certificate of Obligation Act of 1971, Section 271.041 et seq., Local Government Code (the "Act")for the purpose of financing the Contractual Obligations; and WHEREAS, prior to the issuance of the Certificates, the City is required under the Act to publish notice of its intention to issue the Certificates in a newspaper of general circulation in the City and continuously on the City's website,the notice stating: (i)the time and place tentatively set for the passage of the ordinance authorizing the issuance of the Certificates, (ii) the purpose of the Certificates,(iii)the manner in which the Certificates will be paid,(iv)the then-current principal of all outstanding debt obligations of the City; (v) the then-current combined principal and interest required to pay all outstanding debt obligations of the City on time and in full; (vi) the maximum principal amount of the Certificates; (vii)the estimated combined principal and interest required to pay the Certificates on time and in full; (viii) the estimated interest rate for the Certificates or that the maximum interest rate for the Certificates may not exceed the maximum legal interest rate; and (ix)the maximum maturity date of the Certificates; and WHEREAS, the meeting at which this Resolution is adopted was open to the public and public notice of the time, place and purpose of the meeting was given, all as required by Chapter 551,Texas Government Code, as amended. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK,TEXAS: Round Rock I CO GO LTN 2025 1 NOI Res 1. Attached hereto as Exhibit "A" is a form of the Notice of Intention to issue the Certificates, the form and substance of which is hereby adopted and approved. 2. Bond Counsel to the City shall cause the notice to be published in substantially the form attached hereto, in a newspaper (as defined by Subchapter C, Chapter 2051, Government Code) that is of general circulation in the City, for two consecutive weeks, the date of the first publication to be at least 46 days before the date tentatively set for passage of the ordinance authorizing the issuance of the Certificates. 3. The City Clerk shall cause the notice to be continuously published in substantially the form attached hereto on the City's website for at least 45 days before the date tentatively set for the passage of the ordinance authorizing the issuance of the Certificates. 4. The City's Chief Financial Officer and the City's Deputy Chief Financial Officer along with the City's financial advisor, Specialized Public Finance Inc., and bond counsel are authorized to proceed with preparing the necessary bond and offering documents to effectuate the sale ofthe Certificates and any other public securities of the City anticipated to be sold at or near the time of the Certificates, including making application to appropriate rating agencies and bond insurers, if applicable. 5. The City hereby authorizes the disbursement of a fee equal to the lesser of(i) one- tenth of one percent of the principal amount of each series of the Certificates being issued or (ii) $9,500 per series, provided that such fee shall not be less than $750, to the Attorney General of Texas Public Finance Division for payment of the examination fee charged by the State of Texas for the Attorney General's review and approval of public securities and credit agreements, as required by Section 1202.004 of the Texas Government Code. The appropriate member of the City's staff is hereby instructed to take the necessary measures to make this payment. The City is also authorized to reimburse the appropriate City funds for such payment from proceeds of the Certificates. 6. This Resolution shall become effective immediately upon adoption. The Mayor and City Clerk are hereby authorized and directed to execute the certificate to which this Resolution is attached on behalf of the City, and the Mayor, City Clerk and City Manager are further authorized to do any and all things proper and necessary to carry out the intent of this Resolution. 2 Round Rock I CO/GO/LTN 2025 1 CO Notice of Intent Res RESOLVED this 13th day of February,2025. ATTEST: CITY OF ROUNDR CK, TEXAS a -j jvhlla-- z CityClerk Mayor City of Round Rock, Texas City of Lnd ck, Texas APPROVED AS TO FORM: City Attorney City of Round Rock, Texas Round Rock I CO GO LTN 2025 1 NOI Res NOTICE OF INTENTION TO ISSUE CITY OF ROUND ROCK,TEXAS COMBINATION TAX AND LIMITED REVENUE CERTIFICATES OF OBLIGATION, SERIES 2025 NOTICE IS HEREBY GIVEN that it is the intention of the City Council of the City of Round Rock,Texas,to issue interest bearing Certificates of Obligation of the City(the"Certificates")for the purpose of paying contractual obligations incurred or to be incurred by the City for: (1) constructing, improving, extending, expanding, upgrading and/or developing streets, roads, bridges, sidewalks, intersections, traffic signalization and other transportation improvement projects including related waterworks, sewer and drainage improvements, signage, landscaping, irrigation, purchasing any necessary rights-of-way and other related transportation costs, including, but not limited to Arterial Bottleneck and Sidewalk Improvements, Chisholm Trail North and South,County Road 112,County Road 118,Deep Wood Drive,Eagles Nest,Gattis School Road Segments 2, 4, 5 and 6, Greenlawn Boulevard, Harrell Parkway, Kenney Fort Boulevard Segments 5 and 6,North Mays Gap/Widening,Old Settlers Boulevard,Red Bud North and South,Sam Bass &Hairy Man Road Intersection Improvements,US 79,and Wyoming Springs Drive;and(2)paying related professional services including for construction managers,engineers,architects,attorneys,auditors,financial advisors,fiscal agents and costs related to issuing the Certificates. The City Council tentatively proposes to consider for first and final reading at a public meeting to commence at 6:00 p.m.,on the 241 day of April,2025 at City Hall,221 East Main Street, Round Rock, Texas,78664, the passage of an ordinance authorizing the Certificates. The maximum amount of the Certificates that may be authorized for such purpose is $20,000,000. The City Council presently proposes to provide for the payment of the Certificates from the levy and collection of ad valorem taxes in the City as provided by law and from the surplus revenues of the City's combined waterworks, sewer and drainage utility system in an amount not to exceed $1,000, 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 such system. The following information is required pursuant to Texas Local Government Code, Section 271.049: As of February 13, 2025, the aggregate principal amount of all outstanding debt obligations of the City secured by and payable from ad valorem taxes is $325,710,000. As of February 11, 2025,the combined principal and interest required to pay all outstanding debt obligations of the City secured by and payable from ad valorem taxes on time and in full is$440,671,950. Such amounts also include debt service on debt the City currently intends to pay from sources other than ad valorem taxes but that could be paid from ad valorem taxes if such other sources are not available at the time required for payment. The estimated combined principal and interest required to pay the Certificates on time and in full is $35,870,861. The estimated interest rate for the Certificates is 5%. Such estimates take into account a number of factors, including the issuance schedule, maturity schedule and the expected ratings of the proposed Certificates. Such estimated interest rate is provided as a matter of information but is not a limitation on the interest rate at which the Certificates may be sold. The maximum maturity date of the Certificates is August 15,2050. CITY OF ROUND ROCK,TEXAS A-1 Round Rock I CO GO LTN 2025 1 NOI Res