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Council advances Heritage PID bond process for Improvement Areas 3a and 3b
Summary
City financial advisor presented a plan to issue special assessment revenue bonds for Heritage PID phases 3a/3b (proposed ~$7.02M) and council approved calling a public hearing on the assessment rolls; the city emphasized the bonds are secured solely by assessments in the PID.
Dripping Springs council heard a plan of finance for a special assessment revenue bond issuance for the Heritage Public Improvement District (PID) covering proposed Improvement Areas 3a and 3b and voted to call the required public hearing to advance the financing.
Royce Ruppy, a MI Homes representative, summarized the developer’s progress at Heritage: phase 3 delivered this summer, roughly 263 homes closed across phases 1–3, and an amenity center and additional phases remain on the development schedule.
Hilltop Securities (city financial advisor) presented the bond structure and timeline. The advisor said the proposed financing for phases 3a/3b would be divided consistent with the assessment consultant’s recommendation and reiterated a legal point: the city’s general fund and tax rate are not pledged to these bonds. “The city’s full faith and credit is not behind these bonds,” the advisor said, explaining that assessments levied only within areas 3a and 3b secure the debt.
Staff presented estimated amounts: the proposed assessment/bond amount for phases 3a and 3b is roughly $7,021,000 (with remaining capacity shown for future phases under the $27.5 million cap). Under staff’s assumptions—a 30‑year structure and a budgeted 6% interest rate—average lien per unit was presented at approximately $42,800 and average annual installments per lot at about $3,600. The advisor noted market pricing could change before sale and recommended returning to council with a bond ordinance after the public hearing; staff projected an ordinance consideration on Oct. 21 and a potential closing in mid‑November.
Council opened a public hearing on the assessment rolls, heard no public speakers, closed the hearing, and approved a resolution calling the public hearing and approving the proposed assessment rolls and related findings under chapter 372 of the Texas Local Government Code.
The action sets the municipal process for formally offering the bonds, publishing offering documents and returning for a bond ordinance if council chooses to proceed after the hearing and pricing process.
