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City staff outlines priority list for streets, utilities; $9 million borrowing proposed without tax-rate increase
Summary
Staff presented a prioritized list of street and utility projects tied to a proposed $9 million certificate-of-obligation borrowing (approximately $3M general fund/street, $6M utility) that officials said can be issued without increasing the current tax rate, with some larger projects remaining unfunded.
Hewitt — City staff told the City Council on Aug. 4 that a roughly $9 million borrowing plan could fund five priority street projects and five priority utility projects without raising the city’s current tax rate, but some large items — notably a lift station and force main project — would exceed the $6 million utility portion and would require additional reserves or future borrowing.
City Manager Thomas and public-works staff presented a ranked list of capital-improvement priorities developed by staff members and said the $9 million figure is structured as $3 million for general-fund/street projects and $6 million for utility projects. “That amount of money ... is gonna be a roughly about $9,000,000,” Thomas said during the workshop, and staff later confirmed the split: $3,000,000 for general fund (streets) and $6,000,000 for the utility fund.
Nut graf: The presentation aimed to help the council decide which projects to include in a planned certificate of obligation (CO) issuance while maintaining the current adopted tax rate. Staff warned that certain high-cost items would require additional resources and that drainage projects rely on a separate drainage fund.
Staff described how street and utility priorities do not always align: some utility fixes (for example, lift station No. 4 and its force main) are high utility priorities but have little immediate street impact; other projects (New Acres Pier and Minute Drive) are top priority for both utilities and streets. The lift-station/force-main work was discussed as a larger, approximately $7.5 million project that would not fit entirely inside the $6 million utility borrowing without tapping unrestricted reserves. Thomas said using $3 million of unrestricted reserves alongside the $6 million CO could allow completion of the higher-cost utility work.
Council members pressed staff on which projects would be included if the city borrows the $9 million. Thomas said street projects numbered 1, 2, 4 and 5 on the priority list and utility projects 1–5 could be funded within the $9 million package, but he cautioned that certain larger items (notably the lift station and force main) would require additional funds or a change in scope.
Staff also said drainage projects totaling about $1.4 million were not included in the $9 million package because the city’s drainage fund has its own revenue and will be used for drainage work at a later time. On timeline, staff said it is recommended that bond proceeds be spent within about three years and that not all funds would be spent immediately but enough work could be started to avoid timing problems.
Ending: The council did not take final action on the borrowing at the workshop; the project list and proposed CO package were presented for direction ahead of a formal authorization vote later in the meeting and at subsequent meetings. Staff asked council to weigh priorities and confirmed that market pricing, interest earnings and available reserves will affect which projects can be completed within the proposed borrowing.
