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 (Veramendi), a Water Improvement District (WID) located within the extraterritorial jurisdiction of the City of New Braunfels.
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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. The Water Improvement District (“WID”) will market and intends to sell up to $3 million in unlimited tax bonds to provide reimbursements to the developer for eligible costs associated with the project. The bonds will be paid for by tax revenues secured by approximately $198 million in taxable assessed valuation within the boundaries of the WID. These are certified values for 2022.
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.
ISSUE:
The issuance of bonds secured by property tax revenue within the Veramendi WID.
FISCAL IMPACT:
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 WID.
Recommendation
RECOMMENDATION:
Staff recommends approval of the proposed resolution.