Official Statement Dated November 9, 2020 Cinco

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Official Statement Dated November 9, 2020 Cinco OFFICIAL STATEMENT DATED NOVEMBER 9, 2020 IN THE OPINION OF BOND COUNSEL, UNDER EXISTING LAW, INTEREST ON THE BONDS IS EXCLUDABLE FROM GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES AND INTEREST ON THE BONDS IS NOT SUBJECT TO THE ALTERNATIVE MINIMUM TAX ON INDIVIDUALS. SEE “TAX MATTERS” FOR A DISCUSSION OF THE OPINION OF BOND COUNSEL. THE BONDS ARE NOT “QUALIFIED TAX-EXEMPT OBLIGATIONS” FOR FINANCIAL INSTITUTIONS. NEW ISSUE-Book-Entry-Only Insured Rating (BAM): S&P “AA” (stable outlook) Underlying Rating: S&P “A+” (stable outlook) See “MUNICIPAL BOND RATING” and “MUNICIPAL BOND INSURANCE” herein. CINCO MUNICIPAL UTILITY DISTRICT NO. 1 (A political subdivision of the State of Texas located within Fort Bend County) $19,515,000 CONTRACT REVENUE BONDS SERIES 2020 The Contract Revenue Bonds, Series 2020 (the “Bonds”) are obligations solely of Cinco Municipal Utility District No. 1 (the “Master District” or the “District”) payable solely from and to the extent of payments required to be made to the Trustee (as herein defined) by all utility districts within the Master District Service Area (the “Participants”) from proceeds of an unlimited annual ad valorem tax, levied by each Participant or from other revenues available to such Participant (the “Contract Payment”). Payment of Contract Payments by Participants and use of such proceeds by the District to pay debt service on the Bonds is governed by the Contract for Financing and Operation of Regional Waste Collection, Treatment and Disposal Facilities and Regional Water Supply and Delivery Facilities (the “Master District Contract”) as described more fully herein under “MASTER DISTRICT CONTRACT.” The Bonds are obligations of the Master District and are not obligations of the State of Texas, Fort Bend County, Harris County, the City of Houston, any of the Participants except the Master District, or any entity other than the Master District. Dated: December 1, 2020 Due: December 1, as shown below The Bonds will be issued in fully registered form only, in denominations of $5,000 or any integral multiple of $5,000. Principal of the Bonds will be payable upon presentation of the Bonds at the principal payment office of the paying agent/registrar, initially The Bank of New York Mellon Trust Company, N.A. (the “Paying Agent”), in Houston, Texas. Interest accrues from December 1, 2020, and is payable June 1, 2021, and each December 1 and June 1 thereafter until maturity or prior redemption. The Bonds mature and are subject to redemption as shown below. The Bonds will be initially registered and delivered only in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. Beneficial owners of the Bonds will not receive physical certificates representing the Bonds but will receive a credit balance on the books of the nominees of such beneficial owners. So long as Cede & Co. is the registered owner of the Bonds, the principal of and interest on the Bonds will be paid by the Paying Agent directly to DTC, which will, in turn, remit such principal and interest to its participants for subsequent disbursement to the beneficial owners of the Bonds. See “BOOK-ENTRY-ONLY SYSTEM.” The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Bonds by BUILD AMERICA MUTUAL ASSURANCE COMPANY. See “MUNICIPAL BOND INSURANCE” herein MATURITY SCHEDULE Initial Initial PrincipalMaturity CUSIP Interest Reoffering PrincipalMaturity CUSIP Interest Reoffering Amount (December 1) Number(b) Rate Yield(c) Amount (December 1) Number(b) Rate Yield(c) $ 1,810,000 2024 17239Y PR7 2.00 % 0.70 %$ 1,625,000 2029 (a) 17239Y PW6 2.00 % 1.50 % 1,500,000 2025 17239Y PS5 2.00 0.80 1,725,000 2030 (a) 17239Y PX4 2.00 1.60 1,500,000 2026 17239Y PT3 2.00 1.00 1,875,000 2031 (a) 17239Y PY2 2.00 1.70 1,500,000 2027 17239Y PU0 2.00 1.20 2,000,000 2032 (a) 17239Y PZ9 2.00 1.80 1,525,000 2028 (a) 17239Y PV8 1.25 1.35 $225,000 Term Bonds due December 1, 2034 (a), 17239Y QB1 (b), 2.000% Interest Rate, 2.050% Yield (c) $250,000 Term Bonds due December 1, 2036 (a), 17239Y QD7 (b), 2.000% Interest Rate, 2.200% Yield (c) $250,000 Term Bonds due December 1, 2038 (a), 17239Y QF2 (b), 2.000% Interest Rate, 2.300% Yield (c) $250,000 Term Bonds due December 1, 2040 (a), 17239Y QH8 (b), 2.250% Interest Rate, 2.400% Yield (c) $1,160,000 Term Bonds due December 1, 2042 (a), 17239Y QK1 (b), 2.250% Interest Rate, 2.450% Yield (c) $1,160,000 Term Bonds due December 1, 2044 (a), 17239Y QM7 (b), 2.250% Interest Rate, 2.500% Yield (c) $1,160,000 Term Bonds due December 1, 2046 (a), 17239Y QP0 (b), 2.375% Interest Rate, 2.550% Yield (c) _________________________ (a) Bonds maturing on or after December 1, 2028, are subject to redemption prior to maturity at the option of the District, in whole of from time-to-time in part, on December 1, 2027, or on any date thereafter, at a price equal to the par value thereof plus accrued interest from the most recent interest payment date to the date fixed for redemption. The Term Bonds (as defined herein) are also subject to mandatory sinking fund redemption as more fully described herein. See “THE BONDS—Redemption Provisions.” See “THE BONDS—Redemption Provisions.” (b) CUSIP Numbers have been assigned to the Bonds by CUSIP Service Bureau and are included solely for the convenience of the purchasers of the Bonds. Neither the District nor the Underwriter shall be responsible for the selection or correctness of the CUSIP Numbers set forth herein. (c) Initial reoffering yield represents the initial offering yield to the public which has been established by the Underwriter for offers to the public and which may be subsequently changed by the Underwriter and is the sole responsibility of the Underwriter. The initial reoffering yields indicated above represent the lower of the yields resulting when priced to maturity or to the first call date. Accrued interest from December 1, 2020 to the date fixed for delivery, is to be added to the price. The Bonds, when issued, will constitute valid and legally binding obligations of the District. THE BONDS ARE SUBJECT TO SPECIAL INVESTMENT CONSIDERATIONS DESCRIBED HEREIN. Bond purchasers are encouraged to read this OFFICIAL STATEMENT prior to making an investment decision. The Bonds are offered by the Underwriter for such series subject to prior sale, when, as and if issued by the District and accepted by the Underwriter, subject, among other things, to the approval of the Bonds by the Attorney General of Texas and the approval of certain legal matters by Allen Boone Humphries Robinson LLP, Houston, Texas, Bond Counsel. See “LEGAL MATTERS.” Delivery of the Bonds in book-entry form through the facilities of DTC is expected on or about December 9, 2020, in Houston, Texas. TABLE OF CONTENTS MATURITY SCHEDULE ........................................................................ 1 TAX DATA ............................................................................................... 36 USE OF INFORMATION IN OFFICIAL STATEMENT ..................... 3 Contract Tax ............................................................................... 36 SALE AND DISTRIBUTION OF THE BONDS ..................................... 4 Tax Roll Information .................................................................. 37 Award of the Bonds ...................................................................... 4 Historical Contract Tax Rates and Collections ............................. 37 Securities Laws ............................................................................ 4 Tax Adequacy for Debt Service ................................................... 38 OFFICIAL STATEMENT SUMMARY .................................................. 5 TAXING PROCEDURES........................................................................ 38 SELECTED FINANCIAL INFORMATION (UNAUDITED) ............. 10 Authority to Levy Taxes ............................................................. 38 THE BONDS ............................................................................................ 13 Property Tax Code and County-Wide Appraisal District .............. 38 Description.................................................................................. 13 Property Subject to Taxation by the Participants .......................... 39 Method of Payment of Principal and Interest ................................ 13 Valuation of Property for Taxation .............................................. 40 Source and Security of Payment .................................................. 14 Participant and Taxpayer Remedies ............................................. 40 Contract Payments by the Participants ......................................... 14 Levy and Collection of Taxes ...................................................... 41 Unconditional Obligation to Pay .................................................. 14 Tax Payment Installments ........................................................... 41 Funds .......................................................................................... 14 Additional Penalties .................................................................... 41 Redemption Provisions ................................................................ 15 Rollback of Operation and Maintenance Tax Rate ....................... 41 Authority for Issuance ................................................................
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