Arlington outlines sequencing for $175 million capital program after 2025 bond election

At a May 27 Arlington City Council work session, staff presented a proposed sequencing of projects from the 2025 bond election and a draft capital budget that would direct major spending toward public safety, streets, water utilities and stormwater improvements.

The presentation matters because the schedule determines which bond projects the city will build first, what projects will be funded with pay-as-you-go versus debt, and how quickly the city will sell general obligation (GO) and certificate of obligation (CO) debt to pay for those projects.

Emil Randolph, staff member, described the work: "This comes after 14 months of work, regarding the 2025 bond election," and walked the council through the capital program cycle and financial principles used to sequence projects. City Treasurer Ethan Close said the city’s debt ratios remain within policy and that the financing plan assumes favorable market conditions as bonds are sequenced.

Key details from the presentation: - Total capital program overview: staff presented a $175 million total capital budget request across funds, including a $63 million capital budget request, $26 million in annual stormwater program funding, and roughly $86 million for water-utility projects. - Stormwater fee: staff described the current $9.50 stormwater assessment (on the water bill) and noted a proposal to increase it by $0.50 to $10.00 effective Oct. 1; that $10 assessment was described as generating about $26 million annually for stormwater projects. - Water utilities: roughly $86 million in planned water projects; staff said large items include water treatment projects and a Johnson County reimbursement arrangement. Staff also described potential grants and revenue bond work through the Texas Water Development Board and Johnson County contributions. - Public safety and equipment: Fire vehicle replacements and radio replacements for police and fire were built into the 2025 bond sequencing; staff emphasized the urgency of radio replacements and the desire to complete purchases ahead of major events in 2026 (vendor lead times were discussed). - Specific projects noted: a North Police Station allocation shown at $5.9 million in year one; an aviation project with a $12 million allocation (described as roughly $8 million for an apron and $4 million for a bridge), with a possible $3.5 million grant to offset apron costs. - Street program sequencing: staff outlined annual programs and a new “street reclamation” category (described as near-rebuild work scheduled to occur over the next four years using 2025 bond funds); staffing and phasing were discussed but no specific street-by-street start years were committed.

Finance and timing: Close said the city had already issued the majority of 2018 bonds and a share of 2023 bonds, and that the city planned to issue initial 2025 bond proceeds after completing necessary approvals. Staff described a near-term timeline: rating-agency meetings, a June 10 presentation for formal proposed budget approval, selling water and stormwater bonds in June, an August reimbursement-resolution and parameters ordinance for GOs and COs, and budget work for the next fiscal cycle from October to December.

Staff cautioned sequencing depends on market rates and the city’s tax-rate posture. "We easily fall within our limits," City Treasurer Ethan Close said about the city's debt ratios, but he added that the schedule could move faster or slower depending on interest rates.

What the council directed: the presentation was informational. Staff said they would return with the FY2025 capital budget and the notices of issuance for the COs and GOs; no formal vote was taken at the work session.

Why this matters locally: the sequencing determines near-term construction and operating impacts — for example, staff estimated ongoing operating and debt costs tied to facility projects and noted some trade-offs (slowing a prepayment plan to free capital for an evidence-storage facility). The proposed stormwater fee increase and the timing of bond sales will affect capital cash flows and the pace of projects residents see completed.

Next steps: staff will return with formal budget documents, notices of issuance and proposed ordinance language for parameters and reimbursement in the coming months, and will update the council as financing and project phasing are finalized.