Posting Language
Title
Approve a resolution authorizing the issuance by Pilot Knob Municipal Utility District No. 5 of Unlimited Tax Road Bonds, Series 2026, in an amount not to exceed $2,245,000 to be used for constructing road improvements in the District and related engineering costs and costs of issuing the bonds. Funding: This item has no fiscal impact.
Body
Lead Department
Austin Financial Services
Fiscal Note
This item has no fiscal impact.
For More Information:
Belinda Weaver, City Treasurer, 512-974-7885, Virginia Collier, Program Manager III, 512-972-0117, Kate Castles, Planner Senior, 512-974-270
Council Committee, Boards and Commission Action:
October 14, 2026 - To be reviewed by the Water and Wastewater Commission.
Additional Backup Information:
Pilot Knob Municipal Utility District No. 5, a political subdivision of the State of Texas, was created under the laws of the State of Texas by House Bill No. 1760, Acts of the 82nd Texas Legislature, Regular Session, codified as Chapter 8374, Texas Special District Local Laws Code, and operates under Chapters 49 and 54 of the Texas Water Code. The Enabling Legislation became effective June 17, 2011, and created the District, subject to the consent of the City.
The City consented to the creation of the District by Council action taken March 22, 2012 and under the terms of the April 13, 2012 Consent Agreement among the City, the District, and Carma Easton LLC, a Texas limited liability company. The City and the District entered into a Strategic Partnership Agreement dated as of June 4, 2012 (SPA), as authorized by Section 43.0751, Texas Local Government Code. The SPA sets forth the terms and conditions of the City’s annexation of the land within the District and frames the terms by which the District will continue to exist as a limited district, Pilot Knob Limited District No. 5, following the City’s full-purpose annexation of the land within the District as provided in Consent Agreement and the SPA.
The District, which currently contains approximately 463.871 acres of land, is within the Limited Purpose jurisdiction of the City in southeast Travis County, Texas. The District is approximately ten miles southeast of the City’s downtown, adjacent to the west side of Farm-to-Market 1625 and approximately two miles west of U.S. Highway 183. An extension of Slaughter Lane, the initial phases of which are under construction, runs along northern boundary of the District in an east-west direction. The Austin-Bergstrom International Airport is approximately four miles to the northeast of the District.
The District is required to obtain City approval for all bond sales pursuant to the Consent Agreement. The City has received a request from the District to approve the District’s bond sale in the amount of $2.245 million for road purposes consistent with a bond proposition approved by District voters in 2014. After the proposed bond issue and a current bond issuance by the District for road bonds, the District will have $50,528,000 remaining in authorized but unissued bonds for roads. Proceeds of the 2026 Bonds will be used to finance a portion of the District’s share of the cost of constructing road improvements to serve the District. The remaining 2026 Bond proceeds will be used to:
• Capitalize two years of interest requirements on the Bonds;
• Pay developer interest;
• Pay certain legal and engineering costs; and
• Costs associated with the issuance of the Bonds.
The District bonds are the sole obligation of the District until the City full purpose annexes the District. The first eligible date for the City to annex the District pursuant to the Consent Agreement is December 31, 2047.
City staff from Austin Water, Austin Parks and Recreation, Austin Planning, Austin Housing, Austin Transportation and Public Works, and Austin Watershed Protection reviewed the District’s Consent Agreement and its amendments. The District was found to be in compliance with the terms of the Consent Agreement. Austin Financial Services and the City’s Financial Advisor have reviewed the District’s proposed bond sale and recommend approval.