By Andy Sevilla
Sunfield Municipal Utility District No. 1 in east Buda is wheeling toward the issuance of $3.435 million in road bonds in its effort to keep pace with the district’s growth.
As of Sept. 1 Sunfield had 365 completed homes, 30 homes under construction and 48 vacant developed lots, according to Sunfield General Manager Dennis Guerra.
Now, the district is seeking Buda’s permission to issue up to $3.435 million in road bonds for the construction, engineering, testing and land acquisition costs of paving streets in Phase 1, Section 5 and Phase 2, Section 4.
In the 80th State Legislature Regular Session, special legislation was passed allowing for Sunfield to issue bonds for road projects within its boundaries.
At their Sept. 29 regular meeting, Buda council members unanimously green lighted the district’s request to proceed with its fifth series of bond issuance.
Per Buda’s 2003 consent resolution and the Agreement Concerning Creation and Operation of Sunfield MUD No. 1, the district is required to obtain approval from the city before issuing bonds.
Now that Buda city leaders have approved the road bond request, the district will need to submit the bond issuance request for approval by the Texas Attorney General’s Office.
Sunfield has an aggregate of $21.66 million of unlimited tax bonds authorized by the district’s voters for purchasing, constructing, acquiring and maintaining a road system inside the district, according to city documents.
In this road bond request, Sunfield is seeking to issue no more than $3.435 million for the paving improvements, according to a district memorandum to council members.
The debt to be issued will be repaid through ad valorem tax. Buda is not obligated nor liable for any of the debt that may be issued.
Upon questioning from Buda Mayor Pro Tem Bobby Lane seeking clarification on the Unlimited Tax Road Bonds, the district’s attorney said all bond issuances have included “unlimited” in its title as the district is unlimited to the amount of ad valorem tax it could levy.
Sunfield’s property tax rate presently is $0.90 per $100 of property valuation.
City staff found that the road bonds would serve as a funding mechanism for Sunfield to complete road projects in accordance with its Master Plan, which otherwise would have had to wait for construction by Hays County or the Texas Department of Transportation (TxDOT).
Staff also found that the proposed streets would provide for more connectivity on the east of Buda, city documents state.
Sunfield is an approximate 2,790 acre master-planned community about two miles east of Buda, in its extraterritorial jurisdiction; and is situated in Hays and Travis counties.
Sunfield is bounded by Turnersville Road to the north and FM 2001 to the south.
Guerra told council the district has 443 lots on the ground, of which 416 have been purchased by builders. He said homeowners have purchased 401 of the 416 builder-owned lots, leaving only 15 lots on which to build. Only 20 to 30 more lots are available from the district to build on presently, Guerra said.
However, in the two weeks following the Sept. 29 meeting, Guerra said the district would deliver 82 lots up for grabs to the builders, and an additional 214 lots would be ready to build on by the first quarter of 2015.
“We already have two more sections under design,” Guerra said. “… Probably will deliver by the end of next year another 140 lots.”
Guerra said he anticipates coming before council seeking approval for another round of bond issuance next year to improve more roadways and further expand development.
“This time next year, the end of next year, we’ll probably have 879 (lots) on the ground,” he said.
