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Anna hears $33.95M preliminary finance plan for Shirley Farms PID improvement area 1
Summary
City financial advisor Hilltop Securities presented a preliminary plan for Shirley Farms Public Improvement District improvement area 1, describing an assessment-backed bond of roughly $33,950,000 to finance public improvements for the first phase and estimating average homeowner assessments of about $4,800 per year; staff moved the public-hearing schedule to late February to complete appraisals.
At the Jan. 13 Anna City Council meeting, Andre Ila of Hilltop Securities presented a preliminary financing plan for Shirley Farms Public Improvement District (PID) improvement area 1 and answered council questions about assessments and resident impacts.
Ila said the developer is asking the city to facilitate financing for what he described as roughly "4 18" lots in the first phase and that the plan under discussion included an approximate $33,950,000 assessment bond to finance about $27,400,000 in public improvements for this phase. Ila gave an average expected home price of about $573,000 for the phase and said the project is projected to generate roughly $1,200,000 in property tax revenue. He said the city had agreed to participate at 50% "of its... rate" as part of the agreement presented to council.
Ila emphasized that the bond would be secured only by special assessments levied within improvement area 1 and would not be funded by the city's tax rate, enterprise funds or other city revenues. "The only thing securing this bond is special assessments levied and collected within an improvement area," he told the council.
The presentation included illustrative assumptions: a 30-year maturity (final maturity shown as 2056 in the materials), a working interest-rate assumption of 6 percent for budgeting, allocation for one year of debt service reserve, and an administrative allocation of roughly $40,000 to cover two years of administrative expenses funded from bond proceeds. Ila said these numbers were preliminary and could move, and he expected the schedule to shift by about two weeks.
Council members asked whether the PID metrics were typical. Ila said this project "would be above average" compared with other PIDs he'd seen, citing higher-than-average home values in the phase presented. One council member noted the roughly $4,800 average annual assessment (about $400 per month) and cautioned that PIDs impose a long-term financial burden on homeowners.
Staff and Ila recommended moving the public-hearing schedule to allow time to finalize appraisals and the assessment plan; the January hearing date was shifted to Feb. 10 and the public hearing on the levy and bond issuance moved to Feb. 24 to accommodate revisions.
Council did not take a final vote on any financing action at the Jan. 13 meeting; staff described the presentation as an opportunity to ask questions before formal hearings and actions in February.
