Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Bonds, Series 2024 for the Galveston County Municipal Utility District No. 73 in an amount not to exceed $3,420,000 and authorizing the Mayor to execute and the City Secretary to attest same for and on behalf of the City of League City, Texas (Director of Finance)
Background
Proceeds of the sale of the Bonds will be used by the District for the following projects: 1) MUD 73 Lift Station, 2) Drainage Facilities to Serve Sedona Section 6, 3) Outfall Drainage Easement, 4) Capital Recovery Fees for Sections 1, 2 and 5, as well as 5) twelve (12) months of capitalized interest, 6) developer interest, 7) Drainage Studies and Creation Expenses, and 8) to pay the costs of issuance of the Bonds. The District met on July 9, 2024 to authorize its consultants to proceed with the issuance of its Series 2024 Unlimited Tax Bonds.
The District's 2023 total adopted tax rate is $1.000 per $100 of assessed valuation. The tax rate is composed of $0.000 for debt service (the District has not yet issued bonds or other debt payable from ad valorem taxes, with the Series 2024 Bonds being the District’s first issuance) and $1.000 for maintenance and operations. The District's preliminary taxable value as of January 1, 2024, as provided by the Galveston Central Appraisal District, is $56,655,499.
The District will have $3,420,000 in outstanding debt after the issuance of the Bonds, which is 6.04% of the District’s preliminary taxable value as of January 1, 2024. Overlapping debt is estimated at $7,364,606; overlapping and direct debt, combined ($10,784,606), represents 19.04% of the District’s preliminary taxable value as of January 1, 2024. After this issuance, the District will have $440,280,000 in unissued Water, Sewer, and Drainage authorization.
Under the terms of the Utility Agreement between the District and the City, bonds may be sold by the District only with the approval...
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