The Anna City Council is poised to make a significant financial decision regarding the Shirley Tract Public Improvement District (PID) Number 2, as discussions at the August 12, 2025, meeting centered on a proposed bond issuance of up to $4.1 million. This move aims to streamline payments to the project developer, who has been collecting assessments since 2021.

In 2021, the city levied approximately $13.5 million in assessments for the Shirley Tract PID but only bonded $9.4 million. The remaining $4.1 million has been a reimbursement obligation payable to the developer annually. Now, with the developer meeting specific performance metrics, they have requested the city to bond the remaining assessments, allowing for a lump-sum payment instead of ongoing annual cash flow.

The council discussed the necessary conditions for issuing these bonds, which include compliance with the original development agreement and the existence of at least 300 construction permits for single-family lots within the PID. With these conditions met, the city is ready to proceed, pending council approval.

The proposed bond would not exceed the outstanding assessments and must mature by 2051, aligning with the original assessment amortization schedule. A reserve fund will be established from the bond proceeds to ensure financial stability in case of payment delinquencies.

The anticipated interest rate for the bond is around 5.65%, although this could decrease if bond insurance is obtained. The council plans to finalize the bond issuance at their next meeting on August 26, with a closing date set for September 23. This bond is expected to have no credit impact on the city, as it is not secured by city funds or taxes.

Overall, this bond issuance represents a strategic financial maneuver for the city, allowing for immediate cash flow to the developer while maintaining the integrity of the PID's financial structure. The council's decision will be crucial in determining the future of the Shirley Tract development and its impact on the community.