MUD to issue tax bonds to repay developer
Katy City Council approved a resolution on March 11 authorizing the issuance of unlimited tax bonds series 2019 not to exceed $2.2 million by the Harris-Waller Counties Municipal Utility District No. 2 related to Cane Island drainage improvements.
Loren Morales of RBC Capital Markets, the district’s financial adviser, contacted city officials in a Feb. 20 letter regarding the tax bonds.
The sale of bonds will reimburse the developer for construction of the public infrastructure projects, he said. The letter identifies those projects as Cane Island drainage improvements and detention pond “C” phase 1, storm water pollution prevention plans for Cane Island drainage improvements and detention pond “C” Phase 2 and “D,” and engineering for Cane Island drainage improvements and detention ponds “C” Phase 2 and “D.” Also covered are financing, legal and other costs related to the issuance of the bonds.
City engineer David Leyendecker said the work was completed in 2015-16.
Bids are to be submitted and presented for the bonds on April 2. District officials expect the funds to be delivered in May.
In his letter, Morales said this is the fifth installment of bonds issued by the district. The issuance of bonds is not expected to increase the district’s 2018 tax rate of 95 cents per $100 of assessed property value.