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 Contract Revenue Bonds (Road Facilities), Series 2026, by Comal County Water Improvement District No. 3 Master District (Mayfair).
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
The Development Agreement (“DA”) between the City of New Braunfels and Southstar at Mayfair, LP (“Southstar”) authorizes up to $620 million in debt for eligible, designated purposes within the Mayfair subdivision. Comal County Water Improvement District No. 3 Master District (“WID 3M”) will market and intends to sell $7.2 million in Contract Revenue Bonds (Road Facilities) to provide reimbursements to the developer for road facilities to serve WID 3M’s Service Area, which encompasses all of Mayfair. The bonds will be paid for by contract tax revenues from the Participant WIDs located within WID 3M’s Service Area, pursuant to regional facilities contracts between WID 3M and each Participant. At this time, the only Participant is Comal County Water Improvement District No. 3A (“WID 3A”), although it is anticipated to include WID 3B as a future Participant. Under the regional facilities contract, each Participant agrees to levy and collect a contract tax in an amount sufficient to pay debt service on WID 3M’s bonds and allocated in proportion to each Participants assessed valuation for any given tax year.
WID 3A’s 2025 taxable value is over $85 million, and WID 3A levied a total tax rate in 2025 of $0.95 per $100 assessed Valuation. According to the most recent estimate of value from Comal County Appraisal District, WID 3A’s taxable value is over $273 million as of June 1, 2026.
WID 3M previously sold its first series of bonds in 2026, in the amount of $13.9 million. WID 3A previously sold its first series of bonds in 2025, in the total amount of $5 million. Based on the preliminary feasibility of the debt issuance by WID 3M, together with WID 3A’s own outstanding debt service, WID 3A does not expect a change in the total tax rate paid by Mayfair property owners within WID 3A.
The Texas Commission on Environmental Quality (TCEQ) generally approves bonds proposed to be issued by water districts for water, sewer, or drainage infrastructure, but does not exercise jurisdiction over road bonds at this time. However, all bonds issued by water districts, including WID 3M, are also required to be reviewed and approved by the Attorney General of the State of Texas.
The anticipated value of the area within WID 3M’s service area, including WID 3A, is expected to continue to grow considerably and no increase in estimated taxable value from June 1, 2026, is required for issuance of these bonds.
ISSUE:
The issuance of bonds secured by property tax revenue paid by owners within the Mayfair development (Comal Co. WID 3A and future participants within the WID 3M Service Area).
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☒Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
FISCAL IMPACT:
No fiscal impact to the City of New Braunfels because the bonds are secured by contract tax revenue paid from property owners to Participant WIDs within the Mayfair development (the service area of WID 3M).
Recommendation
RECOMMENDATION:
Staff recommends approval of the Resolution