Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Road Bonds, Series 2024 (the “Bonds”) for the Galveston County Municipal Utility District No. 73 (the “District”) in an amount not to exceed $7,485,000 and authorizing the Mayor to execute and the City Secretary to attest same for and on behalf of the City of League City, Texas (the “City”) (Director of Finance)
Background
Proceeds of the sale of the Bonds will be used by the District for the following projects: 1) Ervin Street Phase 1, 2) Samara Section 1, 3) Samara Section 2, 4) Samara Section 3, 5) Samara Section 4, 6) Right-of-way land associated with Items 1- 5, as well as 7) twelve (12) months of capitalized interest, 8) developer interest, and 9) to pay the costs of issuance of the Bonds. The District met on September 10, 2024 to authorize its consultants to proceed with the issuance of its Series 2024 Unlimited Tax Road Bonds.
The District's 2024 total adopted tax rate is $1.000 per $100 of assessed valuation. The tax rate is composed of $0.110 for The System Debt Service, $0.24 for Road Debt Service, and $0.650 for maintenance and operations. The District's certified taxable appraised value as of January 1, 2024 was $48,800,381 and the District’s estimate of taxable appraised value as of June 1, 2024 was $103,858,229. Both values were provided by the Galveston Central Appraisal District.
The District will have $3,420,000 in outstanding debt water, sewer, and drainage debt and $7,485,000 in road debt after the issuance of the Bonds for a total of $10,905,000 in debt outstanding, which represents which is 10.50% of the District’s appraised estimate of value as of June 1, 2024. Overlapping debt is estimated at $9,282,914; overlapping and direct debt combined $20,187,914 represents 22.35% of the District’s taxable appraised estimate of value as of June 1, 2024. After this issuance, the District will have $279,515,000 in unissued road authorization.
Under...
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