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House Bill 19 would cap tax‑supported debt; Buda council weighs selling GO bonds now to avoid restriction

3624646 · May 6, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff and financial advisors told council that draft House Bill 19 would limit annual tax‑supported debt service to 20% of the three‑year average property tax collections, a constraint that could block most Texas issuers and prompt Buda to consider issuing voter‑approved bonds before a law takes effect.

City finance staff warned the Buda City Council about pending state legislation (House Bill 19) that, as drafted, would cap a local government’s annual tax‑supported debt service at 20% of the average property tax collections for the preceding three fiscal years.

Finance staff said the city’s three‑year average property tax collections are roughly $8.9 million, making the 20% cap about $1.8 million in annual debt service. By contrast, adopted FY2025 debt service on the city’s current tax‑supported debt is close to $8 million in the presentation, and the city still…

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