Fair Oaks Ranch is preparing to borrow approximately $6 million for four road corridors, a sale the city projects will require approximately $9.9 million in principal and interest payments.
The proposed debt would continue a voter-approved road program reaching Dietz Elkhorn Road, Battle Intense Road, Rolling Acres Trail and Ammann Road. Property owners would repay it through the debt-service portion of the city tax rate.
The sale is the second installment of a $16 million road program voters approved in May 2024. Fair Oaks Ranch issued $3.585 million in September 2024 and timed the next installment to the city’s five-year construction plan.
Competitive bids are due Aug. 20. The posted agenda schedules council consideration that evening, when financial adviser SAMCO Capital is expected to present the results and recommend the offer with the lowest true interest cost.
What would Fair Oaks Ranch’s next road-bond sale fund, and what would repayment cost?
Fair Oaks Ranch plans to sell approximately $6 million in road bonds, with total principal and interest payments projected at approximately $9.9 million.
The bonds would fund voter-approved work on Dietz Elkhorn Road, Battle Intense Road, Rolling Acres Trail and Ammann Road, while the projected debt-service tax rate rises by 0.87 cents per $100 of taxable value.
The packet projects the interest-and-sinking rate increasing from 2.86 cents to 3.73 cents per $100 of taxable value in fiscal 2027. That 0.87-cent change applies to taxable value, while the $9.9 million estimate covers principal and interest across the proposed repayment schedule.
The dollar gap between the proposed principal and projected repayment is approximately $3.9 million. That comparison is an arithmetic difference between the packet’s rounded estimates, not the final interest charge from a completed sale.
Council has not yet authorized the sale. The final principal, interest rates, purchaser and payment schedule depend on the competitive bids and the action recorded after council meets.
What interest rate and purchase price will the Aug. 20 bids produce?
That result will determine whether the final repayment schedule remains near the packet’s estimate. A second project-level question will follow the financing decision: How much of the $6 million will be assigned to each of the four road corridors? The answer will show residents where construction money moves first and how the borrowing connects to work on their route.