District Overview
The District was created under Article XVI, Section 59 of the Texas Constitution by Senate Bill 994, as passed by the 81st Texas Legislature on June 19, 2009, and operates in accordance with Chapter 8330 of the Texas Special District Local Laws Code, and Chapters 49 and 54 of the Texas Water Code, as amended. The District is located approximately 30 miles southwest of the Central Business District of Houston in Fort Bend County, Texas. The District is located east of Macek Road, north of FM 2759 Road, and south of Greatwood Bend Subdivision. Residents gain access to the area within the District from Macek Road and FM 2759 Road. The District consists of approximately 100 acres of land. The entire District lies within the extraterritorial jurisdiction of the City of Sugar Land, Texas, and the Lamar Consolidated Independent School District.
On November 5, 2013, voters of the District authorized the issuance of $28,600,000 principal amount of unlimited tax bonds for the purpose of acquiring or constructing water, sanitary sewer, and drainage facilities. Voters also approved $20,150,000 in principal of unlimited tax bonds for road purposes. To date, the District has issued $2,310,000 in road bonds.
On December 12, 2017, the Master District – Fort Bend MUD No. 106 (along with the other Greatwood Districts- except for the District) was annexed by the City and dissolved. In accordance with the City of Sugar Land Ordinance No. 2075, the City took over all the property and other assets of the Master District, assumed all the debts, liabilities, and obligations of the Master District, and will perform all the functions of the Master District, including the provision of services. The City has been providing water and sewer services to the District since that time.
Use of Proceeds
A portion of the proceeds from the sale of the Bonds will be used to pay for the construction costs associated with water, sewer, and drainage infrastructure in Greatwood Lake, Section One, including a lift station and force main, engineering costs, developer interest, capitalized interest and issuance costs. Of proceeds to be received from the sale of the Bonds, $2,988,325 is estimated for construction costs, and $1,461,675 is estimated for non-construction costs.
Development Update
The District is being developed as Greatwood Lake, a single-family residential community. Development in the District currently includes 258 single-family residential lots on approximately 99 acres. As of November 28, 2022, the District consisted of 223 completed homes, all occupied, and 33 homes under construction or in a builders’ name. Homes in the District range in price from approximately $500,000 to $590,000, according to the developers. The 2022 tax year home value was $384,000.
All of the developable acreages within the District have been provided with water distribution, sanitary sewer, and storm drainage facilities. In addition to the development described above, approximately 1.5 acres have been platted and developed as an amenity center, including open space, walking trails, recreational pool, playground equipment, covered area, and bathrooms, and approximately 2 acres have been developed as a pocket park.
Approximately 18 acres are included in the subdivision plats and are restricted to drainage, landscape, and open space purposes, and are undevelopable.
Proposed Issue
The proposed term of the debt issuance is 24 years, structured to achieve level overall debt service payments through the term of the bonds. This issue extends the final maturity by one year. Preliminary debt service schedules show an average annual debt service requirement of $655,037 (2023-2046) with a maximum debt service requirement of $750,394 in 2026.
The District covenants in the bond resolution to levy a continuing direct annual ad valorem tax, without legal limit as to rate or amount on all taxable property in the District sufficient to pay the principal and interest of the bonds. The District has adopted a 2022 tax rate of $1.45, with $0.62 for maintenance and $0.83 for debt service. The 2022 certified taxable assessed valuation is $78.03 million. The required tax rate for the maximum annual debt service on the bonds based upon the 2022 Certified Taxable Assessed Valuation at a 95% collection rate is $1.02/$100. The required tax rate for the average annual debt service on the bonds based upon the 2022 Certified Taxable Assessed Valuation at a 95% collection rate is $0.89/$100.
Staff recommends City Council approval of the proposed debt issue, which the District plans to sell on March 1, 2023.