At its regular board meeting last Tuesday evening, the announcement was made that all the Sales Tax Revenue Bonds previously authorized by the board had been subscribed and sold that morning. This means that the related revenue will be available for the improvement projects tied to the bonds, according to EAMD Executive Director David Hawes.
The total bond sale was for $13,365,000, and the bonds will pay approximately 4.75% interest by the end of their terms, graduating from an initial interest rate of 1.3%, and be due for redemption in twenty years, or mature before in some cases. Hawes said these terms were favorable, and indicated that the financial community held the District in high regard.
In fact, the bonds were to be issued with a Standard & Poor’s rating of AAA, and the District was rated A. The bonds are guaranteed by a lien on the state 1% sales tax levied in the district, and in addition an insurance policy by the underwriters. Proceeds of the bond sale will be used for improvement projects already in the planning stage by the District.
These include Water Distribution east of US59 (Service Zone 11), $1.27 million; Wastewater gravity lines in same area, $1.36 million; Related lift station and force main for above, $1.265 million; Water & wastewater in North Houston Heights, $3.28 million; Transportation and Mobility work throughout district, $2.79 million; Engineering for above, $1.948 million; Contingency, $587,000; fees related to bond sale, $865,000.
In its sales prospectus or Official Statement, it is noted that the District has previously issued Sales Tax Revenue Bonds, in the amount of $3,195,000 in 2005, that were used for improvement projects at that time, that have been completed. It is also noted that future bond sales may be initiated for additional projects.
The board approved three consulting contracts that will be related to the work funded by the bonds: Wilbur Smith Associates, for consulting and planning services, Montgomery and Associates for engineering services, and Kudela & Weinheimer for landscape and signage work.
