What is it?
PIDs provide funding for additional maintenance or services in a community through bonds backed by property assessments in the area. Although usually developer-driven, they are controlled by the city and can help fund road projects, landscaping and parks.
The details
The second improvement district of the Cottonwood Creek PID, located near the Hwy. 79 and CR 132 intersection, will include 262 single family lots. The area includes part of the Cotton Brook neighborhood.
Community amenities, including hike and bike trails, a picnic area, basketball court, playground, park and pool, already serve the first PID area and will also be built in PID area No. 2.
This improvement area has a projected buildout value of $108.3 million and a tax rate of $0.449 per $100 value.
City Council approved the $6.4 million bond issuance unanimously. Municipal market data shows the 30-year interest rate for the bonds was 3.9% as of Feb. 6, according to a presentation by Hilltop Securities financial advisor Jim Sabots.
“It’s the lowest price of any bond that I’ve been involved in, or any bond that the city of Hutto has done before," Sabots said.
Some context
Council established the PID in August 2021. Bonds for the first improvement area came out to $10.2 million, which council approved in October 2021.
The bond issuance for improvement area two will close Feb. 27.
