City issues intent on $7.9 million bond package

By Glynis Crawford Smith
The Highlander
The Marble Falls City Council on Tuesday night, July 19, set its course more firmly toward issuance of  $7.9 million in bonds to fund utility projects.
Members voted unanimously to publish two required notices of intent to issue combination tax and limited pledge revenue certificates of obligation in an amount not to exceed $7,930,000 for the purpose of providing funds for water and sewer  system  improvements,  the  purchase  of  a  backhoe and related expenses.
Finance Director Margie Cardenas introduced city financial adviser, Andrew  Friedman  of  SAMCO  Capital  Markets,  Inc.
“Interest rates are near historic lows,” said Friedman, hopeful they would remain so until September. “They are now well below three percent; today at 2.7 percent.”
A tour of three city utility sites prior to the meeting seemed to confirm council commitment.
“After touring plants today, it is clear we need to stay ahead of (Texas Commission on Environmental Quality [TCEQ]) requirements,” said Mayor John Packer.
They saw where Phase 4 of improvements of the city water plant at 2502 Circle Drive would take place, $3,950,000; improvements at the wastewater plant at 1106 Yett Street, $2,500,000; replacement of a water line (circa 1930) on Broadway Street, $140,000, and replacement of a water line on Ranch to Market Road 1431, $340,000 and replacement of a water tank at 907 Via Viejo, $900,000.
Least among the items to be funded by new bonds is a new backhoe, $100,000, but its inclusion is designed to make the size of the bond package more attractive to investors and toreduce interest on the purchase by allowing a shorter payout.
Following two publications of intent in The Highlander, city  financial  advisors,  Mark  McLiney  and  and Friedman  of  SAMCO,  will  arrange  for  a  competitive  sale  and present results for final approval at the Sept. 6 meeting of the council.
The combination tax and limited pledge revenue certificates of obligation will be payable from the levy of an annual ad valorem tax, within the limitations prescribed by law, upon all taxable property within the city and a limited pledge (not to exceed  $1,000)  of  the  surplus  revenues  of  water  and  sewer  systems.
A lively discussion and visible frustration among council members followed a presentation by A1s1s1i1s1t1a1n1t1 1C1i1t1y1 1M1a1n1a1g1e1r1 1C1a1l1e1b1 1K1r1a1e1n1z1e1l1 on potential designated truck routes, primarily to limit truck traffic downtown.
Representatives of two companies with some of the heaviest truck traffic inside town were on hand for the discussion—former council member Richard Lewis, who is plant manager with Huber Engineered Materials, and Matthew Smith, manager of Hill Country Recycling.
The source of council disappointment was more than encountering school zones and limited traffic control along possible routes to divert traffic from Second Street. Streets along suitable truck detours are not constructed to bear up under heavy vehicles and limitations were identified even with the new Avenue N construction.
Lewis and Smith agreed that the turn radius at Ranch to Market Road (RM) 1431 and Avenue N would be difficult to navigate.
“The original design for Avenue N was much wider,” said Hodge. “But, the cost was $1.2 million. When we brought the cost down to $700,000, things had to be sacrificed.”
Lewis said 60 trucks a day run in a 24-hour-five-day week to two different Huber plant entrances. While both company representatives promised to examine the feasibility of four alternate routes, both agreed that some drivers would not be familiar with the city and time on the road could threaten safety.
“In 10 years we have had only one fender bender (so far),” said Lewis. “The longer we are on the road, the more it becomes a safety issue.”
It was clear pedestrian safety was a primary concern, and not just for visitors to special events and future guests at the hotel convention center planned on Lake Marble Falls.
“There are 75 businesses downtown,” said Christian Fletcher, executive director of the Marble Falls Economic Development Corporation (MFEDC). “Employees walk to lunch and to and from their cars.”
“Plans for the convention center (downtown) are chugging along,” said Mayor Packer. “Are we going to be sitting here six months later without a plan? I'd like to see something in place before it opens.”
In other action, the council approved the necessary ordinance changes to allow for the repositioning of school zone speed limit signs on Ranch to Market Road 1431 around the new Avenue N intersection, presented by City Engineer Eric Belaj, and amendments concerning two city committees, presented by City Secretary Christina McDonald.
The Hotel Motel Tax Advisory Committee will now meet no less than twice a year, or as needed
or requested by the city manager or council, rather than “no less than once a quarter,” as had been required.
The same change was made to meeting requirements for the Capital Improvement Plan (CIP) Committee. That body is now expanded to a total of nine members, including the seven members Planning &  Zoning Commission (P&Z) and two new city resident members interested in the CIP and the  city’s  comprehensive plan, to be appointed for two-year terms or until successors are appointed by the council.
Lastly, term limits no longer will be placed on the chairman and vice chairman of the CIP Committee.
The council has set Wednesday and Thursday, July 27-28 for budget workshops. The next regular meeting will be Aug. 2.