Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Bonds, Series 2016 for the Bay Colony West MUD in an amount not to exceed $4,300,000 and authorizing the Mayor to execute and the City Secretary to attest same for and on behalf of the City of League City (Assistant City Manager)
Background:
Approval of this item will authorize the sale of bonds to reimburse the developer for costs related to water, sewer, clearing and grubbing, detention and drainage facilities in the Bay Colony West development. The Board of the Bay Colony West MUD authorized the District's consultants to proceed with the preparation of the various documents related to the issuance of a proposed bond sale. The board is requesting approval of the sale of Unlimited Tax Bonds, Series 2016 in an amount not to exceed $4,300,000. The bond constitutes the fifth series of unlimited tax bonds to be sold by the District.
The purpose of the bond issue is to reimburse the developer for improvements in the Bay Colony development including underground utilities to serve several sections of the development, material esting fees, geotechnical fees, survey fees, engineering fees, and capital recovery fees. This reimbursement is pursuant to an agreement between the District and the developer. 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 is levying a total 2015 tax rate of $1.00 per $100 assessed valuation. The tax rate is composed of $0.885 for debt service and $0.115 for maintenance and operations. The District's 2016 taxable value as of January 1, 2016 is $152,822,160 including $1,242,035 of uncertified value. Estimated taxable value as of July 15, 2015 is $161,770,335.
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 an...
Click here for full text