Anna council approves $85.5M certificates to fund police station, wastewater work; annexation and downtown incentives also move forward

The Anna City Council on July 8 approved the sale of up to $85,500,000 in combination tax and revenue certificates of obligation to fund a new police station and an expansion of the wastewater treatment plant, unanimously approved a voluntary annexation of about 808 acres at FM 455 and Cowen Road, and approved a downtown incentive package for restaurants and entertainment.

The certificates of obligation — Series 2025 — were priced July 8, with the city—s financial advisor reporting a 25-year financing at a fixed interest rate of 4.77%. Andre Ayala, the city's financial adviser with Hilltop Securities, told the council, "the final interest rate that we got here was 4.77%, and that is fixed for the entire term of the transaction." Ayala said the transaction generated a project fund deposit of $84,000,000 and that the par amount of the bonds will be $82,275,000, producing a premium of roughly $2,500,000.

Terry Doby, the city's budget manager, said the city modeled the sale conservatively and warned the council that "there is no way to issue $30,000,000 in debt without a small tax increase." Doby said staff will use certified property values (due by July 25) to determine any adjustment to the debt-service tax rate.

During a public hearing on annexation, Stephanie Scott Sims, director of development services, summarized the application and staff recommendation for voluntary annexation of "808 plus or minus acres" at FM 455 and Cowen Road under Annex 25-0003. Terrell Culbertson, a resident of Anna, said he was "not opposed to the annexation" but pressed the council about process and plan compliance, saying "the concept plan... does not comply, is not in compliance with the 2050 master plan update" and that the item had not gone back to the planning and zoning commission for a recommendation. After debate, the council approved the annexation 5-1.

Bernie Parker, director of economic development, presented a resolution that authorizes a ground-lease and performance agreement between the Anna Community Development Corporation and GTP Food Group LLC to bring five restaurants and an entertainment component to Anna—s downtown. Parker said the CDC property is currently tax-exempt and "once the requirements are met by this group, this will go back on your ad valorem taxes." He also noted there is no sales-tax incentive tied to the agreement and that 100% of sales tax will go to the city and the EDC. The council approved the resolution unanimously.

Separately, the council selected AFION Public as the executive-search firm to lead the city manager search and later, after closed session, approved a contract with the acting city manager as to form by the city's legal counsel. Both actions passed without recorded opposition.

Votes at a glance

- Annexation (Annex 25-0003): Motion to approve voluntary annexation of ~808 acres at FM 455 and Cowen Road — outcome: approved, tally 5 yes, 1 no. - Certificates of Obligation, Series 2025: Ordinance authorizing issuance and sale of up to $85,500,000 to fund police station and wastewater treatment-plant expansion — outcome: approved, unanimous. - Downtown project (CDC GTP Food Group LLC): Resolution approving ground lease, purchase agreement and performance agreement for restaurants/entertainment in Anna Downtown District — outcome: approved, unanimous. - Executive recruiter selection: Select AFION Public for executive search services — outcome: approved, unanimous. - Acting city manager contract: Approve contract as to form by legal counsel — outcome: approved, unanimous.

What happens next

If the council ordinance authorizing the certificates is approved as adopted, bond counsel will submit documents to the Texas Attorney General and the city expects to close the transaction by July 31, at which time project funds will be wired to the city account. Staff will return to the council with certified property values to finalize any necessary adjustments to the debt-service tax rate.

The council approved the downtown incentive with performance milestones and said property will revert to the tax rolls when the developer meets contractual requirements. The annexation ordinance follows the voluntary annexation development agreement previously approved by council and, per staff, will be processed under the city's land-use and annexation rules.