Council authorizes $67,500 NHA Advisors amendment to pursue second Liberty Ranch bond issuance

The Galt City Council on Tuesday authorized an amendment to the municipal advisory agreement with NHA Advisors for $67,500 to prepare a second bond issuance for Community Facilities District (CFD) 2020-2, Liberty Ranch Improvement Area No. 1.

NHA Advisors and the city described the proposed work as underwriting and advisory services to support a second series of bonds the Liberty Ranch developer has requested. Eric Skriven of NHA Advisors and city staff told the council the CFD was formed in 2020 and the improvement-area cap for bonds is a maximum previously authorized in the district formation. A prior bond series issued in late 2023 raised about $11 million; staff and NHA said recent construction and installed infrastructure increase appraised project value and may support an additional issuance in the $10–13 million range, though a fresh appraisal and underwriter analysis are required.

Councilmember Rodriguez moved to authorize the amendment; Councilmember Reid seconded. On a roll-call vote Vice Mayor Sandhu, Councilmembers Reid and Rodriguez voted aye and Mayor Farmer voted no; the motion passed 3-1. Councilmembers discussed that the CFD bonds are secured by special taxes levied on the land (paid initially by the developer and ultimately by homeowners) and are not general city obligations. Staff and NHA emphasized the city’s role as issuer and the procedural steps that remain: a new appraisal, underwriting, legal documents, disclosure review, and a market sale targeted for spring if the appraisal and market conditions support it.

NHA and staff said the structure requires a 3:1 ratio of appraised value to bonds outstanding (including the prior $11 million issuance) before additional bonds can be sold; the contract amendment funds advisory services, appraisal oversight and preparation of required disclosure documents. Staff noted that special tax B within the CFD rate and method is set aside for essential services and that homeowners will see required disclosure at sale; the council asked multiple clarifying questions about foreclosure and the mechanics if special taxes are not paid.

The council approved the amendment but did not set a final issuance amount; staff will return in April with legal documents and disclosure for council review if the appraisal and underwriting indicate a viable transaction.