Williamson County commissioners cancelled $17 million in unused bond authorization for Somerset Hills Road District No. 4 at a Sept. 29 road district meeting.
What it means
The unanimous vote will lower the district's overall debt cap from $70 million to $53 million. Internal audits show that the reduced debt can still fund the eligible road reimbursements, Precinct 3 Commissioner Valerie Covey said.
Additionally, road district tax dollars will not fund any additional lanes or future expansion costs along Ronald Reagan Boulevard between Williams Drive and Hwy. 195.
"I believe this is the right thing to do for the road district," Covey said.
To date, the county has issued $29.35 million in road district bonds, with $23.65 million left to sell to fulfill reimbursement obligations to the developer over the next four to six years, officials said.
The history
The county created Somerset Hills Road District No. 4 in 2008 to finance and reimburse costs for public roads within the Somerset Hills area, according to county documents. Voters approved the purpose and the maximum amount of bonds the district may issue the same year.
Officials originally anticipated commercial development along the corridor, but Pulte Homes acquired the land to build residential neighborhoods, Covey said. Bonds could not be issued until 2020, when sufficient property value was established on the ground.
The road district capped its tax rate at $0.29 per $100 valuation since its inception, according to county documents.
What they're saying
Local homeowners have voiced frustration over paying the road district tax, Covey said.
Following public meetings with approximately 250 local residents, officials addressed community concerns regarding tax rates and home-purchase disclosure notices. Legal counsel reviewed the purchase disclosures provided to homebuyers and determined they were legally sufficient, meaning the county cannot withhold the reimbursements.
"We have legitimate debt on the books, and people and entities that need to be reimbursed legally, but I told [residents] that I would look at what I could do to reduce the [debt] cap," Covey said.
