The Leander City Council held a regular meeting on September 18, 2025, focusing on financial discussions related to the Municipal Utility District (MUD) and the potential removal of a cap on bond issuance. The meeting began with a detailed analysis of the financial implications of the current cap, which limits the amount of debt that can be issued for development projects.

Council members engaged in a thorough examination of the projected financial growth, estimating a potential increase in value to approximately $2.4 billion at full build-out. This projection is based on a 1% appreciation rate of existing homes. The discussion highlighted the necessity for the MUD to operate without the cap to facilitate timely funding for ongoing and future projects. The developers expressed concerns that without the cap removal, they would face significant challenges in financing essential infrastructure improvements, which could halt development altogether.

Key points raised included the importance of having the flexibility to issue bonds as needed, rather than repeatedly returning to the council for small increments of approval. The developers emphasized that the current cap could hinder their ability to reimburse upfront costs for infrastructure, which they incur before receiving any financial returns.

Council members sought clarification on the risks associated with maintaining the cap. Developers indicated that if the cap were not lifted, it could lead to a cessation of development projects, as the financial viability of these projects would be compromised. They noted that inflation has significantly impacted the original capacity for bond issuance, necessitating a reevaluation of the financial framework.

The meeting concluded with council members discussing the next steps, including the timeline for further discussions on the matter. While no immediate action was taken, the council expressed a willingness to consider the developers' request for uncapped bond issuance in future meetings. The overall sentiment indicated a recognition of the need for a balanced approach to support development while ensuring fiscal responsibility.