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| City council considers budget Saturday Wednesday, August 01, 2012 Gail Gilmore City council heard from their financial advisors last week that the planned refinancing of about $2.7 million in current debt will save the city some half a million in interest costs over the next 15-17 years.
The interest rate on the debt will drop by as much as half, from 4.5 percent and 5.5 percent to 2.38 percent. The higher interest rates were incurred for debt issued for construction of a new water plant, past improvements to the wastewater treatment plant and a new water line in 2007 and for construction of a bridge over Walnut Creek, a portion of Pojo Drive and the installation of new water and sewer lines along Williams-Ward Road (the new east loop from State Highway 199.) The city also continues to hold an AA rating from Moody’s, an international credit rating agency, not an easy feat for small cities to accomplish in revenue-deprived economic conditions.
The city’s next budget, for fiscal year Oct. 1, 2012 through Sept. 30, 2013, will make its debut Saturday morning Aug. 4 during a workshop that also includes action on issuance of $3.93 million in capital improvements to the city’s wastewater treatment plant. A pre-bid meeting with five contractors was held late in July and bids are expected by Aug. 9. Council will get a recommendation from city staff at the regular August council meeting on Aug. 23, town administrator Mark Krey told council during last week’s regular meeting. The city’s certified tax roll, as reported by Parker County, is $139,952,120. However almost $5 million of that remains contested, Krey said by e-mail last week. City staff projects a 97 percent collection rate rather than counting on total payment of taxes, Krey said. The projected property tax revenue for the budget is $844,588. The municipal tax rate is .623048 cents per $100 of valuation, or just over 62 cents. The city’s plans for the near future continue to include extensive street repairs, mandated upgrades to the wastewater treatment plant – a $3.93 million project – and extensive renovation of Tabernacle Square, an effort to attract more “destination” business to the city’s small and quaint downtown.
Saturday’s budget workshop will be at city hall, 102 E. Second Street, at 9 a.m. It is open to the public. |