THE WASHINGTON COMMISSIONERS CO. AUTHORIZE THE ISSUANCE OF BONDS FROM THE DISTRICT OF PECAN GLEN ROAD
The Pecan Glen Road district in Washington County is expected to soon receive the proceeds of the Road Improvement Bonds election passed by voters in May.
Washington County Commissioners on Tuesday approved an order authorizing the issuance of bonds of up to $ 950,000 to improve roads in the Pecan Glen subdivision. Garry Kimball, chief executive of specialized public finance, said he expects the bond agreement to be reached on September 28.e.
Kimball explained that favorable market conditions have resulted in an increase in net bond proceeds and a lower than expected interest rate.
According to Kimball, the original target for the bond proceeds was $ 758,000 with an interest rate of no more than 3.75%. Instead, the proceeds amounted to $ 801,069.15 with a 20-year fixed rate of 2.89%. The expenses associated with the total of $ 950,000 include $ 88,325 in issue costs, a deposit of $ 31,552.60 in the Capitalized Interest Fund and an underwriter’s discount of $ 29,053.25. The assessed value of all properties within the road district boundaries was just under $ 14 million.
The ordinance approved Tuesday also authorized the levying of a first-year ad valorem tax rate of 15 cents per $ 100 of assessment on residents of the subdivision, as well as other matters in support of the bonds. The tax is specific to residents who live within the boundaries of the road district.
Kimball said the tax rate was also lower than target expectations, as the rate was initially set at 17.5 cents per $ 100, and voters were asked to expect a maximum rate of 24 cents per 100 $ when an election is called. He said the debt service estimate for the second year and beyond was initially projected at nearly 51.5 cents per $ 100, but now expects it to be. that’s closer to 46 cents to $ 100.
Kimball said now is the perfect time to enter the market with these bonds.
The bonds will be used to bring the district’s private roads up to current county specifications so that they can eventually be turned into county roads. Commissioner Kirk Hanath said it was the road district’s obligation to improve the roads, so the county will not use its own resources to do so. County engineer Ross McCall said these roads will follow the same procedure for acceptance into the county system as any other road.
Kimball said the bond documents require the separation of the Pecan Glen Road district money from the general county funds, so that a project fund and an interest and sinking (I&S) fund will be put in place. place specifically for the road district.
The road district tax rate will be adopted when commissioners adopt the county tax rate on Tuesday, September 14e.