Title:
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Road Bonds, Series 2026 of Galveston County Municipal Utility District No. 82 in an amount not to exceed $12,000,000 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:
Approval of this item will authorize the sale of the Bonds by the District.
Proceeds of the sale of the Bonds will be used by the District to finance the following: 1) paving costs related to League City Parkway, Legacy Drive, and Legacy Sections 1, 2, 3, 4, 5, and 8, 2) land costs, 3) fourteen (14) months of capitalized interest, 4) developer interest, and 5) costs of issuance of the Bonds. The District met on October 8, 2026, to authorize its consultants to proceed with the issuance of the Bonds.
The District's 2026 total adopted tax rate is $1.150 per $100 of assessed valuation. The 2026 total tax rate is composed entirely of a tax for maintenance and operations. The District's certified taxable appraised value as of January 1, 2026, is currently $53,652,928, and the District’s estimate of taxable appraised value as of September 1, 2026, is $141,464,657. Both values were provided by the Galveston Central Appraisal District.
The Bonds represent the District’s second issuance of unlimited tax bonds. After issuance of the Bonds, the District will have a total of $17,725,000 in outstanding debt ($5,725,000 for water, sewer, and drainage and $12,000,000 for roads), which represents 12.53% of the District’s estimate of taxable appraised value as of September 1, 2026. Overlapping debt is estimated at $3,616,424. Estimated overlapping debt and direct debt combined total $21,341,424, which represents 15.09% of the District’s estimate of taxable appraised value as of September 1, 2026. After issuance of the Bonds, the District will have $137,500,000 in unissued bond authorization for road purposes.
Under the terms of the Utility Agreement between the District and the City, bonds may be sold by the District only with the approval of the City Council. The terms and conditions of the Bonds are in compliance with the Utility Agreement.
Attachments:
1. Proposed Resolution
2. Bond Approval Cover Letter
3. Financial Analysis
4. GCAD Certificate of Value
5. Engineer’s Compliance Certificate
6. Engineer SOC Report
7. Utility Agreement
8. Improvement Value Analysis
9. Notice of Sale
10. Draft Preliminary Official Statement
FUNDING
{X} NOT APPLICABLE
STRATEGIC PLANNING
{X} NOT APPLICABLE