1170000 Fort Bend County Municipal Utility District No

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1170000 Fort Bend County Municipal Utility District No OFFICIAL STATEMENT DATED FEBURARY 11, 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 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 HAVE NOT BEEN DESIGNATED AS “QUALIFIED TAX-EXEMPT OBLIGATIONS” FOR FINANCIAL INSTITUTIONS. NEW ISSUE-Book-Entry Only Insured Rating (BAM): S&P “AA” Underlying Rating: Moody’s “Baa3” See “MUNICIPAL BOND RATING” and “MUNICIPAL BOND INSURANCE” herein. $1,170,000 FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 194 (A political subdivision of the State of Texas located within Fort Bend County) UNLIMITED TAX ROAD BONDS SERIES 2020 The bonds described above (the “Bonds”) are obligations solely of Fort Bend County Municipal Utility District No. 194 (the “District”) and are not obligations of the State of Texas, Fort Bend County, the City of Houston, or any entity other than the District. The Bonds, when issued, will constitute valid and legally binding obligations of the District and will be payable from the proceeds of an annual ad valorem tax levied, without legal limitation as to rate or amount, against all taxable property within the District. THE BONDS ARE SUBJECT TO SPECIAL INVESTMENT CONSIDERATIONS DESCRIBED HEREIN. See “INVESTMENT CONSIDERATIONS.” Dated Date: March 1, 2020 Due: September 1, as shown below Principal of the Bonds is payable at maturity or earlier redemption at the principal payment office of the paying agent/registrar, initially The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (the “Paying Agent/Registrar”) upon surrender of the Bonds for payment. Interest on the Bonds accrues from March 1, 2020, and is payable each September 1 and March 1, commencing September 1, 2020, until maturity or prior redemption. The Bonds will be issued only in fully registered form in denominations of $5,000 each or integral multiples thereof. The Bonds are subject to redemption prior to their maturity, as shown below. The Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”), which will act as securities depository for the Bonds. Beneficial owners of the Bonds will not receive physical certificates representing the Bonds, but will receive a credit balance on the books of the nominees of such beneficial owners. So long as Cede & Co. is the Registered Owner of the Bonds, the principal of and interest on the Bonds will be paid by the Paying Agent/Registrar directly to DTC, which will, in turn, remit such principal and interest to its participants for subsequent disbursement to the beneficial owners of the Bonds. See “BOOK-ENTRY-ONLY SYSTEM.” The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Bonds by BUILD AMERICA MUTUAL ASSURANCE COMPANY. See “MUNICIPAL BOND INSURANCE” herein. MATURITY SCHEDULE Initial Initial Due Principal Interest Reoffering CUSIP Due Principal Interest Reoffering CUSIP (September 1) Amount Rate Yield (c) Number (b) (September 1) Amount Rate Yield (c) Number (b) 2021$ 50,000 4.00 % 1.20 % 34683E MU3 2026$ 50,000 (a) 2.00 % 1.45 % 34683E MZ2 2022 50,000 4.00 1.22 34683E MV1 2027 50,000 (a) 2.00 1.55 34683E NA6 2023 50,000 4.00 1.25 34683E MW9 2028 50,000 (a) 2.00 1.65 34683E NB4 2024 50,000 4.00 1.30 34683E MX7 2029 50,000 (a) 2.00 1.80 34683E NC2 2025 50,000 4.00 1.35 34683E MY5 2030 50,000 (a) 2.00 1.90 34683E ND0 $100,000 Term Bonds due September 1, 2032 (a), 34683E NF5 (b), 2.000% Interest Rate, 2.05% Yield (c) $100,000 Term Bonds due September 1, 2034 (a), 34683E NH1 (b), 2.125% Interest Rate, 2.20% Yield (c) $100,000 Term Bonds due September 1, 2036 (a), 34683E NK4 (b), 2.250% Interest Rate, 2.30% Yield (c) $100,000 Term Bonds due September 1, 2038 (a), 34683E NM0 (b), 2.375% Interest Rate, 2.40% Yield (c) $135,000 Term Bonds due September 1, 2041 (a), 34683E NQ1 (b), 2.500% Interest Rate, 2.50% Yield (c) $135,000 Term Bonds due September 1, 2044 (a), 34683E NT5 (b), 2.500% Interest Rate, 2.57% Yield (c) (a) Bonds maturing on and after September 1, 2026, are subject to redemption at the option of the District prior to their maturity dates in whole, or from time to time in part, on September 1, 2025, or on any date thereafter at a price of par value plus unpaid accrued interest from the most recent Interest Payment Date (as herein defined) to the date fixed for redemption. The Term Bonds (as defined herein) are also subject to mandatory sinking fund redemption as described herein 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 yield represents the initial offering yield to the public, which has been established by the Underwriter for offers to the public and which subsequently may be changed. The Bonds are offered by the Underwriter 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 March 12, 2020. TABLE OF CONTENTS MATURITY SCHEDULE ............................................................. 1 Historical Tax Collections ......................................................... 29 USE OF INFORMATION IN OFFICIAL STATEMENT .......... 3 Tax Roll Information ................................................................. 29 SALE AND DISTRIBUTION OF THE BONDS ......................... 4 Principal Taxpayers ................................................................... 30 Award of the Bonds ..................................................................... 4 Tax Adequacy for Debt Service ................................................. 30 Prices and Marketability .............................................................. 4 TAXING PROCEDURES ........................................................... 31 Securities Laws ............................................................................ 4 Authority to Levy Taxes ............................................................ 31 OFFICIAL STATEMENT SUMMARY ....................................... 5 Property Tax Code and County-Wide Appraisal District ........... 31 SELECTED FINANCIAL INFORMATION (UNAUDITED) ... 9 Property Subject to Taxation by the District .............................. 31 THE BONDS ................................................................................. 10 Tax Abatement ........................................................................... 32 Description ................................................................................. 10 Valuation of Property for Taxation ............................................ 32 Method of Payment of Principal and Interest ............................. 10 District and Taxpayer Remedies ................................................ 33 Source of Payment ..................................................................... 10 Levy and Collection of Taxes .................................................... 33 Funds .......................................................................................... 11 Rollback of Operation and Maintenance Tax Rate .................... 34 Redemption Provisions .............................................................. 11 District’s Rights in the Event of Tax Delinquencies .................. 34 Authority for Issuance ................................................................ 12 INVESTMENT CONSIDERATIONS ........................................ 35 Registration and Transfer ........................................................... 12 Extreme Weather Events; Hurricane Harvey ............................. 35 Lost, Stolen or Destroyed Bonds ................................................ 13 Specific Flood Type Risks ......................................................... 35 Replacement of Paying Agent/Registrar .................................... 13 General ...................................................................................... 36 Issuance of Additional Debt ....................................................... 13 Economic Factors and Interest Rates ......................................... 36 Annexation by the City of Houston ............................................ 13 Credit Markets and Liquidity in the Financial Markets ............. 36 Strategic Partnership Agreement ........................................... 14 Competition ............................................................................... 36 Consolidation ............................................................................. 14 Possible Impact on District Tax Rates ....................................... 36 Remedies in Event of Default .................................................... 14 Landowner Obligation to the District ................................... 37 Legal Investment and Eligibility to Secure Public Dependence on Principal Taxpayers
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