Council Action Requested:
In 2018, a referendum was approved by the residents of the Reid Pointe Subdivision to create a special tax district for the purpose of road improvements. In 2019, the County formally created the Reid Pointe Special Tax District and in the subsequent year issued a bond anticipation note (BAN) in the amount of $700K.
Annually, County Council authorizes the County Auditor to levy 35 mills to pay for the debt.
Points to Consider:
Each year, bond anticipation notes (BAN) have been issued while paying down the principal. The same financing mechanism was utilized for the Brookchase Special Tax District. It has always been the intent to move from short-term debt to long-term debt based upon market conditions and establishing a good history of collections.
Upon the advice of our bond attorney, the County will issue a bond in the amount of $461,833. The eight-year debt will mature on 3/01/2031. The bond sale is scheduled for August 31, 2023. This bond issue will not affect the County's bonding capacity for future borrowing.
Funding and Liability Factors:
The County Auditor is authorized to impose a tax millage of 35 mills for debt service payments on the debt issuance, specifically for the Reid Pointe tax district.
Recommendation:
Approve the Resolution, authorizing the levy and collection of debt service millage in the Reid Pointe Special Tax District for tax year 2023.