Projects, upgrades prompt the city of Marble Falls to take on debt

Projects, upgrades prompt the city of Marble Falls to take on debt Raymond V. Whelan Staff Writer Fri, 07/12/2024 - 03:52 Image

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  A new fire ladder truck is among items that the city of Marble Falls will fund with COs. Contributed photo

  A new fire ladder truck is among items that the city of Marble Falls will fund with COs. Contributed photo

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Marble Falls City Council formally introduced its goal July 9 to put Marble Falls, Texas Combination Tax and Revenue Certifi cates of Obligation Series 2024 on the market before summer ends.

The council voted 5-0 on the issue.

But the certificates val ued at more than $21.4 million are not a done deal yet.

“The (council) action only signals its intent to sell the certificates," City Finance Director Jeff Lazenby told The Highlander.

The council may take more definite, official steps forward to promote the cer- tificates during its Sept. 3 meeting, the director added.

According to city documents released before the meeting, proceeds from the certificates are intended to provide funds for several purchases including, Capstone Water System improvements at $3.75 million; raw water intake and flood mitigation im - provements, $3.2 million, a new fire ladder truck, $2.1

million; Tax Increment Reinvestment Zone No.1 projects, $2 million; the Via Viejo pump station, $1.7

million; Pecan Valley side- walks, $1.32 million; the Backbone Creek Avenue N bridge, $100,000 and various other projects.

The maximum maturity date of the certificates is au thorized no later than Feb. 2, 2054. By law, interest earned on the certificates cannot exceed 15%.

The estimated combined cost of principal and interest paid on the certificates is more than $37 million. The cost of the certificates will add approximately 33% more outstanding debt to the city books, now calculated at more than $112 million.

Texas law stipulates an election on the certificates will be held if at least 5% of qualified and registered city voters sign a petition to protest the certificates and submit the objection to the city secretary before the certificates are autho -

rized for sale.

Turning to other matters during the special meeting, the council approved Alpha Paving Industries to remove pavement markings at different sites downtown and replace them with thermoplastic painted markings at an amount not to exceed $53,944. All the markings will be completed with a standard one-year warranty.

If thermoplastic paint cannot be applied as planned everywhere, Alpha Paving can resurface part of Third Street.

The re-marking could begin within three weeks.

Before the meeting ended, the council consented to rehabilitate Manzano Mile with seal coating and striping, at an amount of no more than $319,962, as per an agreement with Asphalt Inc. LLC/Lonestar Paving.

The work may require between 15 and 20 days for completion. Funds of $319,962 for the work will come from the 2023 Manzano Mile Preventative Maintenance Project 2023 bond sale.

Council members Karlee Cauble and Bryan Walker were absent.

The council conducts regular meetings at 6 p.m.

the first and third Tuesday of the month in the city hall council chamber, 800 Third Street.