PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Approval of a resolution giving consent to the issuance of Unlimited Tax Bonds by Comal County Water Improvement District No. 1A, Unlimited Tax Road Bonds by Comal County Water Improvement District No. 1D, and Unlimited Tax Road Bonds by Comal County Water Improvement District No. 1F.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
The Development Agreement (“the Agreement”) between the City of New Braunfels and Word-Borchers Ranch Joint Venture (“Veramendi”) authorizes up to $620 million in debt for eligible, designated purposes.
Each of the Water Improvement District (“WID”) subdistricts - numbers 1A, 1B, 1C, 1D, 1E and 1F- have given the authority by their respective Board of Directors to enter the Master Contract and levy ad valorem taxes to make payments under the Contract Revenue Bonds for the public facilities that benefit all the subdistricts.
WID 1A’s unlimited tax bond of $3,635,000 will be paid for by tax revenues secured by approximately $567,266,686 in taxable assessed valuation within the boundary. WID 1A levied a 2026 tax rate of $0.79.
WID 1D’s unlimited tax road bond of $8,000,000 will be paid for by tax revenues secured by approximately $84,972,448 in taxable assessed valuation within the boundary. WID 1D levied a 2026 tax rate of $0.85.
WID 1F’s unlimited tax road bond of $3,485,000 will be paid for by tax revenues secured by approximately $47,166,378 in taxable assessed valuation within the boundary. WID 1F levied a 2026 tax rate of $0.85.
If approved, the total amount of debt issuances approved to date for the Master and Subdistricts is $93,695,000.
The Texas Commission on Environmental Quality (TCEQ) provides final approvals for bond issues for water districts and other entities. TCEQ acts as a gatekeeper for Water Improvement District bond issuances and ensures financial integrity, engineering feasibility, and public accountability through a structured application, review, and monitoring process. Districts with outstanding bonds undergo annual audits and financial reporting. TCEQ reviews these for regulatory compliance and tracks districts via its Water District Database and provides compliance support, technical assistance, and policy guidance throughout the bond lifecycle.
The anticipated value of the total areas in 2026 is approximately $699 million and no increase in taxable value is required for issuance of these bonds. The total tax rate varies by subdistrict but is not expected to change because of the issuance of the Master District Bonds.
Section 8 of the Agreement outlines the requirements for the District (and subdistricts) and indebtedness, as well as obligations of the District to the City. The District has undertaken preliminary feasibility of the debt issuance and does not expect a change in the total tax rate paid by Veramendi property owners within the subdistricts.
ISSUE:
The issuance of bonds secured by property tax revenue within the Veramendi WIDs.
STRATEGIC PLAN REFERENCE:
N/A Economic Mobility N/A Enhanced Connectivity N/A Community Identity
N/A Organizational Excellence N/A Community Well-Being
FISCAL IMPACT:
There is no fiscal impact to the City of New Braunfels because the bonds are secured by property tax revenue paid from property owners within the boundaries of the WIDs.
Recommendation
RECOMMENDATION:
Staff recommends approval of the resolution.