Bay Colony West Municipal Utility District No. 44 in League City intends to issue refunding bonds for $3.6 million, city officials said.
City council approved a resolution consenting to the sale of the unlimited tax refunding bonds at its March 14 meeting. The municipal utility district can only sell bonds with the approval of council.
Refunding is a mechanism in which new bond debt pays off existing bond debt at a lower interest rate.
Issuing the bonds will save the district $319,865 in future debt service payments of the district’s 2011 tax and revenue bonds, city officials said.
The proposed bonds have the same maturity schedule as the bonds being refunded — through 2032 — so there will be no extension of the debt.
The district’s 2016 certified taxable assessed valuation is $152,884,620, and its 2016 tax rate is $1 per $100 assessed valuation.