Anna council hears plan to bond remaining Shirley Tract PID assessments, staff directed to proceed

Anna, Aug. 12 — City financial adviser Andre Ayala of Hilltop Securities presented a plan of finance in a work session for Shirley Tract Public Improvement District No. 2, improvement area 1, asking the City Council to consider issuing bonds to cover assessments the city levied in 2021 but did not bond.

Ayala said the city levied approximately $4,156,832.29 in outstanding assessments on Area 1 that were left as a developer reimbursement obligation after the 2021 bond sale, and the developer has requested that the city bond the remainder. Ayala told the council the project now has broader owner diversification than in 2021, that required tests under the trust indenture (developer performance, assessment payment compliance and minimum construction permits) had been met, and that the bond could be structured as parity (a series B offering) to the 2021 bonds.

“A full offering is possible; the issuance cannot exceed the amount of assessments outstanding, and the bonds must mature no later than 2051,” Ayala said, adding that bond proceeds must include a reserve equal to roughly one year of debt service (about $279,000 under Ayala’s cash‑flow constraint). He said the issuer could pursue bond insurance if it lowers overall debt service and that the transaction would not be secured by city taxes or water/sewer revenues.

City staff and council members asked for plain‑language clarification on the mechanics. Ayala summarized: the developer would receive an up‑front lump sum instead of annual reimbursement payments, and the trustee would administer debt service from collections that are already being made by the city.

Acting City Manager Mark Marchand and members of the council discussed implementation and the council’s earlier policy choices for the PID. Council members also asked staff to meet with the developer about builder selection and housing product, noting a preference for particular builders and product types in parts of Shirley Tract.

Because this was a work session item, the council did not take a formal vote on issuance; at the conclusion of the presentation council members signaled they were comfortable directing staff and the city’s finance team to proceed to the next steps necessary to prepare an offering for consideration at a future meeting. Ayala said the anticipated schedule (subject to market conditions and final approvals) would place a council authorization on the Aug. 26 meeting with an expected closing in September.

The council did not adopt bonds at the Aug. 12 meeting; staff will return with formal documents, final pricing and any recommended insurance before any sale.