The McKinney City Council approved a proposed bond package worth $160.3 million in May. Voters will go to the polls Nov. 3 to decide on seven proposals.
According to interim City Manager Tom Muehlenbeck, bonds are a method of financing long-term capital improvement projects and are repaid using property tax revenue. The city has not had a bond election since 2010, Muehlenbeck said, and it needs this one because of the massive influx of residents and businesses the city has and will continue to see.
Proposals include bonds for infrastructure, two new fire stations, an expansion of the John and Judy Gay Public Library, land acquisition near the airport and funding for a downtown parking garage.
“We think all of the projects are needed,” said Roger Harris, a former City Council member and current bond committee chairman.
Although the proposed bond package seems like a large amount, Muehlenbeck said the city will not raise the tax rate of 58 cents per $100 of property valuation and will issue the bonds over a 10-year period. Muehlenbeck said the increase in both residents and businesses contributes to the city’s tax base and therefore ability to keep its current property tax rate throughout the issuance of the bonds.
Proposed bond projects
In the proposed bond package the city will ask for $65 million for street projects that officials say will help increase economic activity, improve safety and revamp the city’s aging infrastructure. There are 43 roads considered a top priority for the city, but this request will only fill 27 of those needs.
“There is a big list of roads and infrastructure put together by the council, and the majority of those will be funded by the bond election,” Harris said. “However, if another form of financing comes along then we will take another project from the list and
fund that.”
The city is also asking for $50 million for land acquisition and hangar construction at McKinney National Airport. The city took over operation of the airport in November 2013 from a private developer. The city is asking for the funding to help develop and further improve the airport. Officials said 90 percent of the funds used for land acquisition is eligible for reimbursement by the federal government. According to McKinney Economic Development Corp. officials, the airport is a major draw for companies looking to relocate to the area.
“The money voters could approve for the airport could be very exciting, especially to see what possibilities [the upgrades] could create for economic development,” Harris said.
A much-discussed downtown parking garage will be put to a vote as well. The city is asking for $10 million for the project that, if approved, will be built between Louisiana and Virginia streets along Church Street. Officials say the project will benefit residents, visitors, merchants and employees of the downtown area.
Two new fire stations are also high on the city’s list of important projects, and officials are asking for $19.5 million for one to be built near the intersection of Hardin Boulevard and Virginia Parkway as well as a Craig Ranch location. Muehlenbeck said both will help serve the demands of the area and would cut down nearby response time.
Expansion and improvements at the city’s Public Safety Building, which houses both the police and fire departments, could also take place if the proposed $3 million proposition is passed. Officials said the funds would be used to add another 50,000 square feet to the building as well as an indoor gun range.
Larry Robinson, former city manager, police chief and director of public safety for the city of McKinney, was selected as chairman of the Public Safety Subcommittee. He said when the Public Safety Building was originally constructed in 2006 most cities had their police and fire departments in separate buildings, but Robinson said combining the departments into one building was cost-effective.
“The Public Safety Building expansion needs to be done to keep up with the high demands and to keep up with the high standard of public safety that our citizens have come to appreciate, need and deserve,” Robinson said. “We’ve got people [working] on top of each other. We are out of room and when you are out of room, it affects your service level.”
Robinson said the need for the two fire stations came from rapid population growth.
“You don’t just build a fire station,” he said. “You have to staff it, and as a former director of public safety and city manager I can say that Mr. Muehlenbeck and the current staff have done an excellent job at the proposed locations. I’m very impressed. We are well-positioned for construction of the facilities and also have the ability to staff them.”
Funding in the amount of $9.5 million will also be requested for an 18,000-square-foot expansion of the John and Judy Gay Public Library.
Accessibility improvements to city facilities will account for $1.2 million. This includes removal of architectural barriers to allow for accessibility as required by the Americans with Disabilities Act.
A request for $2 million for dam rehabilitation north of US 380 between Hardin Boulevard and Lake Forest Drive and $1 million for construction of a public works fleet maintenance facility are also included.
Bond committee
This year, Muehlenbeck said, the city did things a little differently when forming the bond package. Typically City Council selects a group of citizens and tasks them with determining what potential bond projects are needed. This year the council selected the bond committee but gave its members a list of projects to assess.
Muehlenbeck said the city also took the time to work out its general operating budget for the next 10 years to help match the proposed bond package.
“So not only did we develop a capital improvement program of $160.3 million that can be carried out over a 10-year period without increasing the tax rate, we went to our general fund budget and projected it for 10 years to be sure that when we build these fire stations, we can equip them with fire trucks and the personnel to run them,” Muehlenbeck said.
If the bond proposals are passed, Muehlenbeck said construction on some projects can begin immediately.
The city will soon begin sending information out to residents about the proposed bond package. Additional information can be found online at www.mckinneytexas.org.
