McGregor council ratifies EDC bond sale, accepts audit, adopts landscaping rules; rejects Highway 317 bids

McGregor City Council on March 10 ratified a series of administrative and development actions, including the McGregor Economic Development Corporation's (EDC) issuance of sales-tax revenue bonds, acceptance of the city's FY2024 financial audit, adoption of a new landscaping and fencing ordinance for new construction, and rejection of bids for State Highway 317 signal improvements. The council also approved a conceptual plan for a large mixed-use development and authorized staff to proceed with a generator sale/trade negotiation with Bluebonnet Water Supply Corporation.

The EDC's bond sale topped the agenda: the council ratified Resolution R-08-2025 approving the issuance of sales tax revenue bonds, series 2025, that will generate a project fund of $3,860,160 to pay for public infrastructure (railroad, streets and roads, water and sewer utilities). Amber Chan of Hilltop Securities told the council the bonds are 30-year, tax-exempt, fixed-rate obligations priced at a 4.79 percent interest rate; Standard & Poor's rated the EDC issuance —A— and Hilltop reported debt-service coverage of more than three times projected sales-tax receipts. The council approved the resolution by voice vote.

Why it matters: the bond proceeds are designated for capital infrastructure that the EDC and city say will support future commercial, multifamily and single-family development on the site described in the financing documents. Hilltop and city staff said the sale closed March 31 under the timetable presented to the council.

The council also accepted the comprehensive audited financial statements for the fiscal year that ended Sept. 30, 2024, as prepared by Brooks Watson and Company, PLLC. Auditor Louis Greenbluff presented the report and told the council the firm issued an unmodified ("clean") opinion. Among the highlights cited: a $741,000 decrease in the general fund primarily tied to a prior purchase of a fire truck that was expensed during the year; an increase of about $2.7 million in the industrial park development fund from a land sale; and an unrestricted general-fund balance representing roughly 67 percent of operating expenses, exceeding the city's reserve targets.

On transportation, city engineer staff reported three bids were received for the State Highway 317 signal improvements; two bids were ruled unresponsive because required TxDOT qualification paperwork was missing, including the apparent low bid. Because the responsive bid exceeded the city's engineer estimate by roughly 38'40 percent, staff recommended rejecting all bids and rebidding the project; the council approved that recommendation.

The council adopted Ordinance O-01-2025, creating Appendix D of the City Code to establish landscape, tree and fencing requirements that will apply mainly to new construction and development permits. City staff said the rules are aimed at establishing a baseline quality for new subdivisions and that Planning & Zoning recommended approval.

Other approvals and procedural votes taken at the meeting included: - Approval of the Feb. 10, 2025, council minutes (voice vote). - Approval of a minor replat for 207 North Harrison Street to create two roughly 5,000-square-foot lots; Planning & Zoning recommended approval and the Zoning Board of Adjustments recommended a variance contingent on the replat. - Acceptance of a conceptual-plan review for an unnamed planned development of about 154.65 acres along the south side of U.S. 84 (the council voted to approve the conceptual plan review and directed staff to work with the developer on a plan-development ordinance). - Approval of minor edits to the City of McGregor procurement policies and procedures tied to the 2024 comprehensive-plan grants. Staff said the federal change replaced the phrase "non-federal entity" with "recipient or subrecipient," requiring reapproval of the earlier document. - Authorization to proceed with negotiations on a sale/trade of a 600 kW generator left at a former facility; staff said the council authorized moving forward with an agreement with Bluebonnet Water Supply Corporation that would provide the city a smaller, more economical unit (staff to return with a formal contract). The motion carried with one abstention.

Votes at a glance (motions, outcomes) - Approve minutes (motion carried by voice vote). - Approve FY2024 comprehensive financial audit reports as presented (motion carried by voice vote). - Reject all bids and rebid: State Highway 317 signal improvements (motion carried by voice vote). - Approve Resolution R-08-2025: McGregor EDC sales tax revenue bonds, series 2025 (motion carried by voice vote). - Adopt Ordinance O-01-2025: landscape, tree and fencing requirements (motion carried by voice vote). - Approve minor replat: 207 N. Harrison Street (motion carried by voice vote). - Approve conceptual plan review for unnamed plan development (~154.65 acres) (motion carried by voice vote). - Approve procurement policies and procedures in connection with 2024 comprehensive-plan grants (motion carried by voice vote). - Authorize staff to proceed toward a sale/trade agreement with Bluebonnet Water Supply Corporation concerning a 600 kW generator (motion carried; one abstention).

What to watch next: staff said the bond closing was scheduled for March 31; the Highway 317 signal improvement project will be rebid; staff will return with a formal generator sale/trade agreement for council approval.

Provenance: The items summarized above are drawn from the council meeting presentation and public record statements made at the March 10, 2025, McGregor City Council meeting. Topic introduction excerpt: "Good evening, council. My name is Louis Greenbluff. I'm Brooks Watson, senior log manager. I have the pleasure of working with, the city of McGregor for the 2324 fiscal year." Topic finish excerpt: "That motion carries. Item number 3, discussion and possible action regarding bids received for State Highway 3 17 signal improvements, and receive recommendation from Walker Partners."