The council continued a discussion on which projects to include in the proposed bond at a Jan. 9 meeting, including possible projects outside of drainage projects, such as facility, street and park adjustments. Members agreed to move forward with plans to call the bond, which include finalizing the project selection at the next meeting Jan. 23.
“I’m all in on the bond program,” Council Member Jeffrey Barry said. “I’m not in for bloating the bond program for the sake of bloating it.”
At a Dec. 12 meeting, the Citizens Drainage Bond Advisory Committee Chair Seth Thompson recommended 14 projects totaling $106.17 million to be funded by the bond program.
The committee’s list of approved projects are ranked in order of priority, with the top three projects being about $11 million in drainage improvements to Veterans Drive, $10.2 million of improvements to the southwest quadrant of Old Town from McLean Road to Hwy. 35 south of Broadway Street, and $14.4 million for the Shady Crest and Creek View subdivision.
General obligation bonds will be used to fund the projects, a method for municipal governments to borrow money with approval by voters. A city staff presentation states the city is required by law to levy a tax rate to pay for these bonds.
Staff estimate that a $145 million bond would add about 1 cent to the projected fiscal year 2024-25 tax rate, but projected future rates are preliminary estimates that will see continued evaluation in light of the city’s property tax worksheet error, staff said.
The property tax miscalculation that was discovered in November after City Council had already passed the FY 2022-23 budget brought the city a deficit. However, the city remains in good standing with its investors, according to a memo previously released by Moody’s Investor Service.
Staff will present updated impacts to the city’s debt service fund and finalize the project selection Jan. 23, and the council could present a resolution ordering the bond election on Feb. 13. Should the bond pass on the May 6 ballot, design contracts for the projects would be awarded starting in July and the first sale of bonds would occur in the summer of 2024, interim City Manager Trent Epperson said.
"There's an appetite for moving forward with this in May. ... It's a question of size and scope," Mayor Kevin Cole said.
