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Fulshear reviews $13.5 million GO bond plan for Primrose Park phase 3; bids expected April 7
Summary
City financial adviser presented a plan of finance to issue $13.5 million in general obligation bonds for Primrose Park Phase 3 and land acquisition, with bids scheduled for the morning of April 7 and closing targeted for May 5; staff showed an illustrative $880,000 annual debt-service cost and projected a roughly 4¢ I&S tax-rate impact under one scenario.
City financial adviser Kristen Bloomquist presented a draft plan of finance at the Feb. 17 council meeting for two propositions totaling $13.5 million: park improvements for Primrose Park (Phase 3) and land acquisition. Bloomquist outlined a competitive sale process that would distribute a preliminary official statement to investors, collect bids the morning of April 7 and return to council the same evening for formal award; closing was projected for May 5.
Bloomquist said the model uses a 30‑year schedule and included a conservative 50 basis‑point cushion, producing an illustrative all‑in cost of about 4.83%. The pro forma in the presentation showed combined annual debt service of roughly $880,000 for the bond propositions. Staff noted the I&S (interest and sinking) tax‑rate model could increase roughly 4 cents in the scenario shown because of layerings such as interlocal agreements (Huggins Road, Wallace, Texas Heritage Parkway) and MUD rebate assumptions.
Council members asked for more frequent market updates ahead of the sale date and supporting data for the MUD rebate calculations. Bloomquist said staff and the adviser would continue to monitor market conditions up to the sale date and would pull the sale if rates moved to unacceptable levels. Council will receive the final bid information the morning of April 7 and is scheduled to consider the formal award that evening.
