Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Bonds, Series 2024 (the “Bonds”) for the Galveston County Municipal Utility District No. 36 (the “District”) in an amount not to exceed $7,270,000 and authorizing the Mayor to execute and the City Secretary to attest same for and on behalf of the City of League City (the “City”) (Director of Finance)
Background
Approval of this item will authorize the sale of Bonds to finance water, sanitary sewer, and drainage facilities to serve various Sections of Westland Ranch. Proceeds will also be used to pay for the engineering, land acquisition, creation, administrative and operational costs, as well as the cost of issuance of the Bonds. The District met on February 5, 2024, to authorize its consultants to proceed with the issuance of its Unlimited Tax Bonds, Series 2024, subject to receipt of the Order and Staff Memo from the TCEQ. The Bonds are the first installment of new money bonds issued by the District.
The Bonds are structured with a final maturity that does not exceed thirty years from the date of issuance. The District's 2023 adopted tax rate is $1.15 per $100 of assessed valuation for maintenance and operations, and the District anticipates levying its first debt service tax in 2024. The District's estimate of taxable assessed value as of May 15, 2024, from the Galveston Central Appraisal District, is $82,751,448.
The District will have $7,270,000 in outstanding direct debt after the issuance of the Bonds, which is 8.79% of the District’s estimate of taxable assessed value as of May 15, 2024. Overlapping debt is estimated at $7,653,353; combined, overlapping and direct debt represents 9.25% of the District’s estimate of taxable assessed value as of May 15, 2024. After this issuance, the District will have $84,830,000 in Water, Sewer, and Drainage authorization, and $92,100,000 in Refunding authorization for Water, Sewer, and Drainage bonds.
The Distr...
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