Title
Consider and take action on a resolution consenting to the sale and issuance of Unlimited Tax Bonds, Series 2010A for Galveston County Municipal Utility District No. 46 and authorizing and directing the Mayor to execute and the City Secretary to attest same for and on behalf of the City (Assistant City Manager, Management Services)
Staff recommends approval.
Background:
The Board of Directors of the Galveston County Municipal Utility District No. 46 (Marbella subdivision) has authorized First Southwest and the law firm of Allen Boone Humphries Robinson, LLP., Counsel to the District to proceed with the sale of Unlimited Tax Bonds, Series 2010A. This bond issue constitutes the third series of bonds to be sold by the District. The bond proceeds are to be used for water, sewer, and drainage construction and other associated costs.
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 City Council. The terms and conditions of the bonds and expenditure of funds are in compliance with the Utility Agreement. The District expects to levy a total 2010 tax rate of $1.00, which is the same rate as 2009.
There is no property tax rebate agreement in place between the City and the District, so the direct financial impact on the City is zero.
FUNDING
{X } NOT APPLICABLE
{ } Funds are available from Account #___________________________
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