Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Bonds, Series 2025 for the Galveston County Municipal Utility District No. 73 in an amount not to exceed $6,000,000 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
Proceeds of the sale of the Bonds will be used by the District for the following projects: 1) MUD 73 Lift Station, 2) Samara Detention Phase I, as well as 3) Land costs for Detention Ponds 1 & 2, 4) Capital Recovery Fees for Sections 5, 5) twelve (12)months of capitalized interest, 6) developer interest, 7) developer advances, 8) District creation costs, and 9) to pay the costs of issuance of the Bonds. The District met on July 8, 2025 to authorize its consultants to proceed with the issuance of its Series 2025 Unlimited Tax 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 Assessed Valuation as of January 1, 2024 was $42,217,665 and the District’s Certified Taxable Assessed Valuation as of January 1, 2025 was $132,489,797. Both values were provided by the Galveston Central Appraisal District.
The District will have $9,420,000 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 $16,905,000 in debt outstanding, which represents which is 12.76% of the District’s Certified Taxable Assessed Valuation as of January 1, 2025. Overlapping debt is estimated at $2,105,908; overlapping and direct debt combined $19,010,908 represents 14.35% of the District’s Certified Taxable Assessed Valuation as of January 1, 2025. After this issuance, the District will have $434,280,000 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 of the City Council. The terms and conditions of the Bonds are in compliance with the Utility Agreement.
Attachments:
1. Proposed Resolution
2. Engineering Letter
3. Draft Preliminary Official Statement
4. No-Growth Cash Flow
5. Schedule of Events
6. GCAD Estimated Values
7. Utility Agreement
8. TCEQ Report
9. Summary of Costs
FUNDING: Not Applicable
STRATEGIC PLANNING: Not Applicable