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Financial adviser: Lago Vista's current tax base limits near-term bond capacity; growth, utility transfers or M&O cuts needed
Summary
T. Arena Financial Consulting presented Lago Vista's fiscal outlook and bonding capacity, showing strong valuation growth but limited near-term room for new general obligation debt at the existing tax rate without other offsets.
A financial presentation to the Lago Vista City Council on Jan. 16, 2025, outlined the city's current debt profile, recent valuation growth and options for financing planned infrastructure.
Thomas Lestraps of T Arena Financial Consulting told council that the city's taxable assessed value rose sharply in recent years, enabling the city to lower its tax rate even as revenue increased. He said that growth has helped the city avoid higher maintenance-and-operations (M&O) tax rates, but it also means that at the current overall tax rate there is little immediate capacity for additional I&S (interest-and-sinking) tax-supported debt without changes.
Lestraps said outstanding general-obligation debt across series from 2006 to 2024 totaled just under $50 million; the…
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