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Balch Springs approves $6.18 million PID bond, amends assessment plan for Mackenzie Trails
Summary
City council approved issuance of special assessment revenue bonds tied to the Mackenzie Trails public improvement district and adopted an amended service-and-assessment plan to match the financing terms. Council approved a final bond amount based on a 5.76% interest rate and set a tentative closing date of May 21.
Balch Springs city council voted to authorize a special-assessment revenue bond tied to the Mackenzie Trails Public Improvement District and approved a related amendment to the district's service-and-assessment plan on April 8.
The ordinance authorizes issuance of bonds to fund public improvements tied to the Mackenzie Trails development. Andre Iel of Hilltop Securities, the city's financial adviser for the transaction, told council the bonds priced April 8 yielded a final bond amount of $6,181,000 and a fixed interest rate of 5.76%: "we ended up with a 5.76% interest rate fixed all the way through February and that's what . . . gives us the final bond amount of $6,181,000." Iel said pricing produced higher interest costs than earlier estimates and reduced the developer reimbursement amount to about $5,030,000.
Daniel Andrade of P3Worse, the PID administrator, summarized the requested amendment to the service-and-assessment plan, which staff said is necessary so bond documents and the assessment roll match the planned financing. City staff recommended approval of both the ordinance and the amended plan.
Councilmember Whitley moved approval of the ordinance and councilmember Hill seconded. The roll call showed unanimous support; the motion carried. Council then approved an amended and restated service-and-assessment plan for Public Improvement District No. 1 by separate motion, also adopted by roll call vote.
City staff and advisors said the bonds are structured so the assessments and related costs will be paid from the PID revenues rather than general fund sources; the bond maturity mirrors the PID assessment schedule through 2054. Hilltop reported the transaction drew orders from institutional buyers and that, if the council moves forward, the city expects to close on the financing on or about May 21.
Council discussion noted the long development timeline and that the city’s role in the transaction is limited to authorizing the financing and ensuring that reimbursement and administrative procedures are followed. No council member requested changes to the financing terms during the meeting.
The council action amends previous PID documents and allows the city to proceed with bond closing, subject to final documentation and approval by the attorney general’s office.
