Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Road Bonds, Series 2026 for the Galveston County Municipal Utility District No. 73 in an amount not to exceed $3,000,000 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) Samara Section 6 - Paving, 2) Samara Section 7 - Paving, 3) Samara Section 8 - Paving, 4) Land Acquisition Costs - Right of Way, 5) twelve (12) months of capitalized interest, 6) developer interest, and 7) to pay the costs of issuance of the Bonds. The District will meet on September 8, 2026 to authorize its consultants to proceed with the issuance of its Series 2026 Unlimited Tax Road Bonds.
The District's 2026 total adopted tax rate is $1.150 per $100 of assessed valuation. The tax rate is composed of $0.470 for The System Debt Service, $0.430 for Road Debt Service, and $0.250 for maintenance and operations. The District's certified taxable appraised value as of January 1, 2026 was $177,466,675 and the District’s estimate of taxable appraised value as of May 1, 2026 was $205,617,351. Both values were provided by the Galveston Central Appraisal District.
The District will have $15,420,000 in outstanding debt water, sewer, and drainage debt and $15,485,000 in road debt after the issuance of the Bonds for a total of $30,905,000 in debt outstanding, which represents which is 15.03% of the District’s appraised estimate of value as of May 1, 2026. Overlapping debt is estimated at $7,627,842; overlapping and direct debt combined $38,532,842 represents 18.74% of the District’s taxable appraised estimate of value as of May 1, 2026. After this issuance, the District will have $271,515,000 in un-issued road authorization.
Under the terms of the Utility Agreement between the District and the City,...
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