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Gunter council levies assessments, sells PID bonds for Bridges phase 2; debate over Mustang interlocal draws opposition
Summary
City Council approved final service assessments and sold special assessment revenue bonds to fund public infrastructure in the Bridges phase 2 PID. The meeting also approved a cooperative interlocal with Mustang SUD after debate and at least one opposed vote.
Gunter’s City Council on March 20 adopted an ordinance levying special assessments for the Bridges Phase 2 public improvement district (PID) and authorized the sale of special assessment revenue bonds to reimburse public infrastructure costs, city staff and the city’s financial adviser said.
Jason, the city’s financial adviser, reported that the city sold $6,466,000 in PID bonds with a 30‑year term and a true interest cost of about 5.96 percent. Proceeds available for public‑infrastructure reimbursement were reported at roughly $5.0 million; council materials presented the PID as benefiting an estimated 40 lots with an anticipated total build‑out value of about $63 million. The financial summary presented a tax‑rate‑equivalent (TRE) for the assessment of about 83.3 cents per $100 of value (used as a comparative metric) and included a demonstration that the bond sale produced a lower par amount than initially marketed because of favorable pricing.
Council voted to adopt the assessment ordinance and then approved the bond ordinance authorizing issuance and sale of the bonds. Both votes were recorded as unanimous at the council meeting.
Council also considered and approved a resolution authorizing the mayor to execute an interlocal cooperative agreement with Mustang Special Utility District (Mustang SUD) for the transfer and operation of certain water and sewer facilities in the area. The interlocal drew substantial comment from multiple council members; one councilor voiced opposition during the vote, citing longstanding disagreements over Mustang’s earlier control of local water services. Despite the objection the council approved the interlocal resolution.
City staff and the developer team told council the PID proceeds will be used only to reimburse public‑infrastructure costs described in the assessment plan (water, sewer, streets and related public work) and that assessments and bond debt service are to be paid solely from the PID assessment revenues, not from the city’s general fund.
What the council approved
- Ordinance levying the Bridges Phase 2 service assessment and establishing the lien on assessed property (approved unanimously). - Ordinance authorizing issuance and sale of City of Gunter special assessment revenue bonds for the Bridges Phase 2 PID (approved unanimously). - Resolution authorizing execution of an interlocal cooperative agreement with Mustang SUD to transfer certain water and sewer assets and responsibilities (approved after debate; at least one opposing vote recorded).
