The Temple City Council will publish the city’s intent to issue the certificates on Monday.
According to the city finance department, this year’s budget included the continuation of multi-year capital improvement projects originally totaling $49.3 million and to be paid for with certificates of obligation ($12.6 million), utility revenue bonds ($15 million), general obligation bonds (voter approved loans for $16.8 million) and general operating budget funds ($4.8 million).
David Blackburn, Temple city manager, said the retirement of past debt, announced in 2006, would allow the bonds to be repaid without a tax increase.
A portion of that debt, $10 million, was issued in the 2007 fiscal year. The remainder, $13.97 million, is the amount the city proposes to spend on the certificate of obligation improvement projects.
According to the city finance department, the next time the city pays off significant debt will be in 2013.
The funding will go toward:
nImprovements and repair to city buildings, including the Municipal Building and Santa Fe Depot ($913,577).
nDesign and land acquisition for Fire Station Number One and administration building ($200,000).
nWireless municipal broadband network ($155,000).
nLibrary improvements, including foundation repair and expansion ($875,000).
nPurchase, renovation and equipping a building at 401 North Third for use as a Municipal Court building ($800,000).
nEquipment for Temple Police Department ($235,000).
nRail relocation associated with Northwest Loop 363 expansion ($1.89 million).
nOuter Loop road project phase three and four ($5.28 million).
nExtend Tarver Road east to Old Waco Road ($1.36 million).
nConstruct a connector road between Texas Highway 93 and Hartrick Bluff Road ($500,000).
nRedevelopment of downtown to include intersection enhancements ($135,000).
nConstruction of First Street gateway, including landscape, sidewalk and pedestrian improvements ($470,000).
nWest Temple Park land acquisition ($721,423).
nPayment of fees for the listed projects and cost of certificate issue ($440,000).
The city anticipates considering awarding the bond sale July 3.
The annual payment on the debt will be an estimated $1.13 million at an interest rate of 4.5 percent with a 20-year maturity.
The 2008 interest and sinking (debt service) component of the tax rate includes the debt service for the loan, according to the city’s finance department.
The certificate of obligation bonds do not require voter approval.
According to a spokesman in the city manager’s office, in 2007 the Legislature passed a law allowing voters to file a petition with the city secretary’s office signed by at least 5 percent of the voters in the city to protest the bond issuance before the city authorizes the issuance.
If the petition is successful, the city may not issue the certificates unless the issue is approved at an election.
