Universal City City Council on April 19 discussed a potential bond election to be held in November.
According to City Manager Kim Turner, this bond would be used for road repairs around the city, with more details on specific road considerations being announced at a later date.
In discussion of the amount Universal City can afford, city financial advisers showed a scenario of the city pulling $30 million in debt and how that debt could affect tax rates.
Based on data provided to council, the interest and sinking tax rate would have an estimated increase of $0.02-$0.04 per $100 valuation, depending on how often the bonds are sold.
In this scenario, a $250,000 home at a $0.02 increase would pay an estimated $50 additional in taxes, while a $0.04 increase would result in an additional $100 to taxes.
City officials noted those who have the homestead tax exemption for those at least 65 years old or disabled would not see an increase to their tax rate should the city issue another bond during the time of the tax freeze.
Mayor John Williams said the streets around the city are in need of repairs and, ultimately, whether a bond is the tool used to make those repairs will be left in the hands of the voters.
“The potential of having a bond in the future is very important,” Williams said. “We know we need massive work on our streets, so the council will decide if this is the way we want to go and it will be up to the voters.”
Council discussion on the bond was preliminary and does not guarantee Universal City will pursue another bond this year.
According to Turner, another discussion will be held around July for new council members to review and consider.
Should the council decide to call for a bond election, that decision would be made in August to be put on the November ballot.
