Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Bonds, Series 2025 in an amount not to exceed $3,570,000 (the “Series 2025 Bonds”) and Unlimited Tax Park Bonds, Series 2025A in an amount not to exceed $2,800,000 (the “Series 2025A Park Bonds”) (collectively referred to herein as the “Bonds) for the Bay Colony West Municipal Utility District (the “District”) and authorizing the City Manager to execute and the City Secretary to attest same for and on behalf of the City of League City (Director of Finance)
Background
Approval of this item will authorize the sale of Series 2025 Bonds to finance water, sewer and drainage improvements in the Sedona development and will authorize the Series 2025A Park Bonds to finance park and recreational facilities within the District. The Board of Directors of the District met on April 23, 2025 and authorized the District's consultants to proceed with the preparation of the documents related to the issuance of the proposed Bonds sale. The Board is requesting approval of the sale of the Series 2025 Bonds in the amount of $3,570,000 and the Series 2025A Park Bonds in the amount of $2,800,000, respectively. The Series 2025 Bonds constitute the eleventh installment of bonds issued by the District and the Series 2025A Park Bonds constitute the twelfth installment of bonds issued by the District, respectively.
The purpose of the Series 2025 Bond issue is to reimburse the developer for the construction of underground utilities pursuant to an agreement between the District and the developer. The purpose of the Series 2025A Park Bonds is to finance parks and recreational facilities within the District. The Bonds are structured with the same maturity schedule as their current debt service needs, so there will be no extension of the term of the debt.
The District's adopted 2024 tax rate is $0.89 per $100 assessed valuation. The $0.89 tax rate is composed of $0.585 for debt service and $0.305 for maintenance and operations. It is anticipated that the issuance of the Bonds will result in no increase to the District's tax rate for the 2025 tax year. The District's taxable value as of January 1, 2024, as provided by the Galveston Central Appraisal District, is $395,927,505 and the Estimated Taxable Assessed Valuation as of March 1, 2025, as provided by the Galveston Central Appraisal District, is $445,336,864, respectively. The District’s current outstanding debt assuming issuance of the Bonds will be $28,440,000.
Under the terms of the Utility Agreement between the District and the City, the 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. Request for League City Approval
3. Schedule of Events
4. Utility Agreement
5. Board Compliance Letter
6. Engineer Compliance Letter
7. Draft Preliminary Official Statement
8. TCEQ Order
9. Debt Service Schedules
10. No Growth Cash Flow
11. Notice of Sale
12. Summary of Costs
13. GCAD Estimate of Appraised Value
FUNDING
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STRATEGIC PLANNING
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