Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Road Bonds, Series 2024 for Galveston County Municipal Utility District No. 36 in an amount not to exceed $4,715,000 and authorizing the Mayor 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 Unlimited Tax Road Bonds, Series 2024 (the “Bonds”)to finance road facilities to serve various Sections of Westland Ranch. Proceeds will also be used to pay for the engineering, land acquisition, and the cost of issuance of the Bonds. The Galveston County Municipal Utility District No. 36 (the “District”)met on August 29, 2024, to authorize its consultants to proceed with the issuance of its Unlimited Tax Road Bonds, Series 2024. The Bonds are the second installment of new money bonds issued by the District, and the first installment of road bonds.
The Bonds are structured with a final maturity that does not exceed thirty years from the date of issuance. The District's 2023 adopted tax rate is $1.15 per $100 of assessed valuation for maintenance and operations, and the District anticipates levying its first debt service tax in 2024. The District's estimate of taxable assessed value as of August 1, 2024, from the Galveston Central Appraisal District is $99,879,454.
The District will have $11,985,000 in outstanding direct debt after the issuance of the Bonds, which is 12% of the District’s estimate of taxable assessed value as of August 1, 2024. Overlapping debt is estimated at $12,396,802; combined, overlapping and direct debt represents 12.41% of the District’s estimate of taxable assessed value as of August 1, 2024. After this issuance, the District will have $50,285,000 in Road authorization.
The District also has a remaining $84,830,000 principal amount of unlimited tax bonds for the purpose of acquiring or constructing a water, sewer, a...
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