The Spring Creek Utility District, which serves neighborhoods including Fox Run and Forest Village north of the Grand Parkway, will ask voters to approve a $140 million bond with no expected tax rate increase on the May 4 ballot.
If approved, bond money will be used over the course of 40 years and keep the district going without having an impact on taxes, Spring Creek board Treasurer Mark Fusca said.
The district’s current tax rate is $1 per $100 valuation.
“The district is coming up on 40 years old, and everything needs to be maintained,” Fusca said. “We are almost out of bond authorization money.”
The bond, if approved on the May ballot, will be used for lift station improvements, major repairs to storm sewers, building a district building, improving pumping stations and rehabilitating sections of water lines, according to the district’s 40-year plan.
“Just because we’re asking for $140 million doesn’t mean we are going to spend it tomorrow,” Fusca said. “We’ll be using it as we need it. … It’s a long-term plan so we don’t affect people’s tax rates.”
Included in the proposal is $34.8 million to cover the cost of inflation, $25.1 million for sanitary construction projects and $13.2 million for drainage construction projects. The utility district has two other options for raising the funds for the upcoming maintenance projects. Instead of a bond, the district could utilize a maintenance tax rate, which spreads the cost over the entire base and is intended for facility maintenance instead of capital improvements.
The other option would be to raise water and sewer rates, which are spread over the customer base, and rates are generally higher for residential users compared to commercial users, according to information from the district.
The district board held an open house information session March 21 for residents to learn about the proposal and to speak with board members, engineers and financial advisers. Vice President Claude Humbert said the district wanted to present as much information as possible to the public so an informed vote can be made in May.
“We got the most important consultants available for them to see and learn about the bond,” Humbert said. “This is not a formal presentation. They are free to sit at a table, have a private discussion with a consultant and learn.”
The March open house was the first of two planned informal meetings for members of the public. The second will be held April 25 at Gateway Baptist Church on Rayford Road from 6:30 to 8 p.m.
