Spring Hill council finalizes Webster Road special-benefit assessments and authorizes bonds to repay temporary notes

The Spring Hill City Council on April 24 approved an ordinance levying final assessments for the Webster Road Special Benefit District and voted to issue general obligation bonds to replace temporary notes used to finance North Webster Street construction.

City Finance staff member Mrs. Dunn, who presented the item, said the work at Wizzwell Farms and North Webster Street represents “a couple of years worth of work” and that the project is now moving into maintenance. She told the council the total amount to be bonded and assessed for the district is $3,550,000 and that residential lots were being assessed a temporary amount until houses are built, after which the special assessment would be covered by property tax (the city’s “red” mechanism as described in staff documents).

The vote followed council discussion about how assessments will be billed and when collections begin. Mrs. Dunn said assessed bills will be mailed in November and the city expects to see the assessed revenue in 2026. She also told the council the assessment “does not count against the debt ceiling of the city” because it will be paid by special assessments rather than the general fund.

The council voted 6-0 to adopt Ordinance No. 2025-04 levying and assessing the final cost of improvements in the Webster Road Special Benefit District. The council later approved Resolution No. 2025-R-10 authorizing the public sale of the general obligation bonds and temporary notes related to the same project; that resolution passed by voice vote with a 5-0 outcome recorded.

Why it matters: The assessment and bond actions convert construction financing into long-term debt secured by the special benefit district, allowing the city to move the North Webster Street project from construction to maintenance and enabling developers to continue building housing in Wizzwell Farms with the assessment structure in place.

Details: Staff said the city received a $2,700,000 base grant toward the project; the final project financing after grants and notes is $3,550,000. Staff provided parcel-level assessment breakouts to council; commercial parcels were shown as assessed amounts of roughly $6,584 per commercial parcel and residential parcels roughly $4,336 per lot while unbuilt residential parcels remain subject to the assessment until development triggers the shift to tax-backed debt service.

Next steps: The mayor will sign corrected documents for the last two property IDs before closing the assessment ordinance as indicated by staff.