Stephenville city council approved the first step in potentially issuing up to $22 million in certificates of obligation at its recently called special city council meeting Tuesday, Jan. 21.
The item approved was a resolution directing that notice of intent to issue certificates of obligation be posted to the city’s website and published in the newspaper. (The legal notice can be located on page B5 in this week’s edition and will be published twice.) A public vote is not required for the city to issue certificates of obligation.
The step was taken after a series of workshop meetings occurred over the past several months on the topic of discussion of debt issuance.
“You will recall there was a lot of information with varying amounts. At the last work session you guys kind of directed staff to prepare this resolution to come before you tonight,” City Manager Jason King said.
King explained to council that the notice of intent was the first formal step and the earliest any action could be taken on the issue would be 46 days later.
The city will also have the ability to borrow up to $22 million, any amount up to that, or none at all, he said.
Mayor Doug Svien asked for the timeline of when the public would be able to share their opinions and if there were public hearings. King explained that public opinions could be collected during that 46 days before another meeting to discuss and approve the COs would occur.
The issuance of debt is being looked at to potentially fund a new city hall and significant street repair. In workshop meetings the council preliminarily discussed $3.5 million for the construction of a new city hall and $18.5 million for street repairs. The language in the notice includes “(1) acquiring, constructing, renovating, and equipping of municipal buildings, facilities and administrative offices for the City; (2) constructing and improving streets, roads, alleys, bridges and sidewalks, including related cycle paths, lighting, signage and signalization, landscaping, streetscaping, screening walls, drainage, utility line relocations and the acquisition of land and rights-of-way therefor; and (3) paying legal, fiscal, engineering and architectural fees in connection with such projects.”
The city is also planning to “utilize pledge of surplus revenues of the City’s waterworks and sewer system,” according to the notice.
With this preliminary amount of $22 million, it would be more than a $9 cent increase on the Interest and Sinking portion of the tax rate. On a $300,000 home, this tax rate would mean an increase of $25 per month, or $300 per year.
“This is a significant increase to the taxpayers,” Councilmember Alan Nix said.
Nix said he would like to see a smaller amount borrowed due to the burden on the taxpayer.
“Businesses don’t get homestead exemptions,” he said.
During the roll call vote, both Nix and Councilmember Dean Parr both voted in opposition.
The council also took action on a memo of understanding between them and Tarleton State University for a project on Tarleton Street to provide a pedestrianfriendly corridor connection downtown Stephenville to Tarleton.
The MOU is simply the first step in moving towards the project, and details including costs and the score of work would be outlined in the future.
“This is the 125th anniversary of Tarleton State University and it’s a big deal to them, and a big deal for the city of Stephenville,” Mayor Doug Svien said. “I appreciate the work between the college and the city of Stephenville.”
A lot of the work would be funded through grants.
Council also discussed during its Jan. 23 council committee meeting a partnership with Erath County Habitat for Humanity where the city would aid with infrastructure for Habitat building six homes. Habitat President Stacy Morrison explained that an engineer has donated services to help with grades, elevations etc. with the project so neither Habitat nor the city will be responsible for the cost. The homes will be a minimum of 1,000 sq. ft. in order to meet with the c i t y ’s zoning requirements.
Morrison explained that historically, Habitat can only do one build a year due to funding, however, if corporate sponsorships increased they might be able to complete two homes a year.
The development services committee discussed proposed revisions to the B-2, Retail and Commercial zoning districts in regards to auto paint and body shops. The committee discussed if the use should be included in conditional use permits.
Where conditional use permits are concerned permission is given on a case-by-case basis with each business having guidelines specific to that location.
The committee agreed to move forward the item to Planning and Zoning to implement guidelines.