Posting Language
Title
Approve a resolution authorizing the issuance by Pilot Knob Municipal Utility District No. 3 of Unlimited Tax Bonds, Series 2024, in the amount of $3,630,000 to finance water and drainage improvements to Colton Bluff Springs Road, an extension of Union Park Lane, drainage improvements for East William Cannon Drive Extension Phase 2, related engineering costs, developer interest, and costs associated with the issuance of the bonds. Funding: This item has no fiscal impact.
De
Lead Department
Financial Services Department.
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; Sara Groff, Planner Principal, 512-974-8074.
Council Committee, Boards and Commission Action:
November 13, 2024 - to be reviewed by the Water and Wastewater Commission Review.
Additional Backup Information:
Pilot Knob Municipal Utility District No. 3 (District), a political subdivision of the State of Texas, was created under the laws of the State of Texas by House Bill No. 1758, Acts of the 82nd Texas Legislature, Regular Session (2011), codified as Chapter 8377, Texas Special District Local Laws Code (Enabling Legislation), and operates under Chapters 49 and 54 of the Texas Water Code. The Enabling Legislation became effective May 25, 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 (Consent Ordinance) 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 (Developer). The City and the District entered into a Strategic Partnership Agreement (SPA) dated as of June 4, 2012, 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. 3, 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 677.567 acres of land, is within the extraterritorial jurisdiction of the City in southeast Travis County, Texas. The District is approximately eight miles southeast of the City’s downtown, adjacent to the east side of McKinney Falls Parkway and approximately one mile west of U.S. Highway 183. An extension of William Cannon Drive, the initial phases of which are under construction, bisects the District in an east-west direction. Cottonmouth Creek traverses the District in a north-south 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 $3.63 million for water, wastewater, and drainage purposes consistent with a bond proposition approved by District voters in 2013. After the proposed bond issue and a current bond issuance by the District for road purposes, approximately $59.6 million in authorized but unissued bonds will remain ($26.1 million for water, wastewater and drainage purposes, $7.8 million for recreational purposes, and $25.7 million for road purposes).
Proceeds of the Bonds will be used to finance the following: (i) water and drainage costs for CBSR Improvements and UPL Extension; (ii) demolition for CBSR Improvements; (iii) drainage improvements for East William Cannon Drive Extension Phase 2; and (iv) engineering costs. The remaining Bond proceeds will be used to: (i) pay developer interest; and (ii) pay other costs associated with the issuance of the Bonds.
The City is the retail provider of water and wastewater service in the District.
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, 2037.
City staff from Austin Water, the Parks and Recreation Department, the Planning Department, and the Watershed Protection Department reviewed the District’s Consent Agreement and its amendments. The District was found to be in compliance with the terms of the Consent Agreement. The City’s Financial Services Department and the City’s Financial Advisor have reviewed the District’s proposed bond sale and recommend approval.