MF Council acts quickly in the face of rising interest rates
Glynis Crawford Smith/The Highlander
J.D. Engler, a maintenance technician, is honored as the City of Marble Falls Employee of the Year by City Manager Mike Hodge, left, and his supervisor, Public Works Director Perry Malkemus, right. Because the annual city employee Christmas party was held out of town this year, the announcement was made at the Tuesday, Jan. 3, city council meeting.
By Glynis Crawford Smith
The Highlander
The Marble Falls City Council on Tuesday, Jan. agreed with the recommendation of city staff and financial advisors to act quickly on finance decision that could be effected by rising interest rates and took its first long look at an engineering study on the intersection of Mormon Mill Road and US 281.
The council's affirmative votes on two matters begin the wheels turning in the direction of refunding old obligations to reduce the interest to be paid and selling new bonds, offset by that reduction.
Taking advantage of low interest rates, the council has refinanced debt in each of the last three years, reducing interest that would have been owed by $3 million. Another refunding of obligations in 2016 could reduce interest payments by another half million dollars.
The Federal Reserve raised its benchmark interest rate on Dec. 9 and signaled that rates could continue to rise in 2017.
At the same time, the council has maintained a priority list of projects and equipment that just would not fit neatly into the new fiscal year's budget during summer planning. An estimated total of $1,800,000 in bond sales seem more manageable in light of a reduced interest load.
That could pay for some costs of the construction of the new Public Safety Facility, citywide street and related drainage improvements, an upgrade the equipment on a fire truck, police department vehicles and Johnson Park playground equipment.
Finance Director Margie Cardenas and Mark McLiney and Andrew Friedman of SAMCO Capital Markets, Inc. were authorized to move forward on both refunding old obligations at new, lower interest rates and selling bonds for new ones while interest rates remain as low as possible.
“We expect an interest rate below 3 percent,” said City Manager Mike Hodge.
The council voted to accept a petition for voluntary annexation of 75.94 acres of the Ellison Roper Corporation in the city's extraterritorial jurisdiction that has been designated for agricultural/wildlife management, with an agreement to annexation when development of the land was to begin. The long strip of property west of US 281 and north of Rocky Road is now ready for development, according to the presentation by City Planner Elizabeth Yah.
She said the annexation process would move forward with hearings Jan. 17 and 24, toward final adoption Feb. 21.
Among other items approved was an amendment to the existing Gregg Ranch at Marble Falls Planned Development District (PDD), to postpone the Phase II amenities of the development.
A workshop followed to council meeting for a first in-depth look at progress on an engineering study being conducted by Halff Associates of possible solutions to the traffic problems at the intersection of Mormon Mill Road and Mission Hills Drive with US 281.
“This intersection has been a nightmare for years and years,” said City Engineer Eric Belaj, who introduced Halff engineer Stephen Moore to outlined five projects that so far have been seen as relief of the problems.
At the minimum, improvement of signage and faded pavement markings that might be achieved for as little as $15,000, he said.
“Signage and pavement markings are something we might do this year,” said Hodge.
From that baseline, Moore introduced estimates that ranged upward from $54,000 to $1.2 million or more for acquiring rights of way and street construction.
Clear in the council sights is growing residential development north of the intersections, including the 130-unit Homestead on Mormon Mill on Max Copeland Drive.
Council Member Reed Norman said he was disappointed, as neighbors in northward neighborhoods also would likely be, to see that all the solutions dealt with streets to access Ranch to Market Road 1431 and southbound destinations on US 281.
“Everyone in town has 281 access, except Mormon Mill,” he said. “People are not just going to school and 281. They are going to their houses.”
Belaj assured Norman those issues were no less important in overall engineering plans, but involved coordination with the Texas Department of Transportation for US Highway access, while the current study deals with city street solutions for one targeted area of congestion.
Also at the meeting, Hodge recognized maintenance technician J.D. Engler as the City of Marble Falls Employee of the Year. Because the annual city employee Christmas party was held out of town this year, the announcement was made at the Tuesday, Jan. 3, city council meeting.
"Fellow employees choose the Employee of the Year," said Hodge. "That this was his third nomination tells you how highly every thinks of him and his dedication to Marble Falls customers."
