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Dripping Springs approves special assessments and $7.02 million bonds for Heritage PID areas 3A and 3B
Summary
Council approved ordinances to levy special assessments and authorize $7,021,000 in special assessment revenue bonds for the Heritage Public Improvement District Areas 3A and 3B; bond proceeds earmarked for developer reimbursements and not secured by the city general fund.
Dripping Springs city council on Oct. 21 approved ordinances to levy special assessments on properties in the Heritage Public Improvement District (Areas 3A and 3B) and to authorize $7,021,000 in special assessment revenue bonds for those areas.
At a presentation before the vote, Andrejalo of Hilltop Securities, the city’s financial adviser on the transaction, described the bond structure and final figures. “The bond amount is exactly the same, $7,021,000,” Andrejalo said, and added that the bonds are not backed by the city’s general fund, sewer fund, or property tax rate.
The financial presentation said the developer contribution for the project is approximately $2,491,000, and that proceeds available for developer reimbursements total $5,554,000 — a modest increase from earlier projections. Andrejalo also said the market produced a lower-than-expected fixed interest rate: the bond’s nominal rate was 5.49%, below the 6% used in budget projections, which staff said will modestly reduce assessment payments for affected parcels.
The council opened a public hearing on the assessments and received no public testimony before moving to approve the ordinance levying the assessments. A separate motion to authorize the issuance of the Series 2025 special assessment revenue bonds — including approval of related trust, bond and offering documents and a continuing disclosure agreement — was then passed.
The presentation and ordinance materials clarified that the bonds are secured by assessments levied against properties in Areas 3A and 3B and are not obligations of the city’s property-tax base. Staff said bond counsel will take the approved documents to the Texas attorney general’s office and that the transaction is expected to close around Nov. 18.
The council did not record a roll‑call vote in the meeting minutes beyond the motion, second and a verbal “Aye” to adopt the ordinances. Council members said the documents in the packet include the sources-and-uses tables and a more detailed cash‑flow analysis for anyone seeking a deeper review.
The action moves the Heritage PID financing forward; staff and bond counsel will complete the final legal and closing steps.
