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Council approves Valverde PID assessments and issues special assessment revenue bonds
Summary
The council held a public hearing and approved assessments for Valverde Public Improvement District No. 1 and authorized special assessment revenue bonds to fund the project; the bond sale priced above initial expectations.
The City Council on March 25 held a required public hearing and approved the special assessments for Valverde Public Improvement District (PID) Area No. 1, and later authorized the issuance of special assessment revenue bonds to fund the public improvements for that district.
Staff said the bond sale met strong investor demand: the bonds were priced at 12.03 (yield) versus an initial indication of 11.09. City staff noted the bond sale closed quickly and that costs for legal fees and issuance (under $30,000) were included in the overall financing plan.
The public hearing drew no speakers, and council members voted unanimously to adopt the assessment ordinance and to authorize the issuance of the bonds. The city manager said the action is the final procedural step to enable construction and financing of the Valverde improvement package.
Why it matters: Approving assessments and issuing PID bonds provides the financing mechanism to build the public infrastructure in the Valverde development area; those bonds are secured by the special assessments on properties within the PID rather than general city property-tax revenues.
