Title:
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Bonds, Series 2024 (the “Bonds”) for the South Shore Harbour MUD No. 7 (the “District”) in an amount not to exceed $4,200,000 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 issuance and sale of Unlimited Tax Bonds, Series 2024 for the South Shore Harbour MUD No. 7 district. Proceeds of the sale of the Bonds will be used by the District to repair existing bulkhead failure and provide shoreline protection of Austin Lake, repair a security fence around Tucker Lake and to pay for engineering, survey, and testing of the above facilities, fees, and expenses for bond issuance. The District will meet on December 12, 2023 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 structured with the same maturity schedule as their current debt service, and there will be no extension of the District’s debt with this issuance. The District's 2023 adopted tax rate is $0.4112 per $100 of assessed valuation. The tax rate is composed of $0.3800 for debt service and $0.0312 for maintenance and operations. The District's certified taxable value as of January 1, 2023, as certified by the Galveston Central Appraisal District, is $530,887,957.
The District will have $18,785,000 in outstanding debt after the issuance of the Bonds, which is 3.54% of the District’s certified taxable value as of January 1, 2023. Overlapping debt is estimated at $23,226,758; overlapping and direct debt, combined ($42,011,758), represents 7.91% of the District’s certified taxable value as of January 1, 2023. After this issuance, the District will have $6,275,000 in unissued Water, Sewer, and Drainage authorization, and $25,715,000 in unissued Refunding 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 of the City Council. The terms and conditions of the Bonds are in compliance with the Utility Agreement.
Attachments:
1. Data Sheet
2. Proposed Resolution
3. Letter to League City
4. Draft POS
5. Debt Service
6. No-Growth Cash Flow
7. Timeline
8. Utility Agreement
9. Engineering Report
10. Taxable Value
11. TCEQ Report
FUNDING
{X} NOT APPLICABLE - Funding will be provided by SSH MUD#7
STRATEGIC PLANNING
{X} Addresses Strategic Planning Critical Success Factor # 1 Develop and Maintain our Infrastructure