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Capital improvement projects in Marble Falls include building a bridge over the flood-prone Avenue N low-water crossing. File photo
City officials introduced a staff proposal to prioritize projects and potentially consider more bond debt to cover matches in a grant-funded bridge crossing and other road work, relocation and construction of a new wastewater plant, a sidewalk program and park improvements.
“We’re looking for direction on which capital improvement projects … which ones are priority and how much debt to issue to finance those projects,” Finance Director Jeff Lazenby told council members during their regular meeting May 18.
“To issue debt in this fiscal year, council would need to pass and authorize a resolution at the June 1 meeting for the bond sale to be completed by September 1,” he added. The maximum amount of the bond sale is proposed to be $2.75 million, he continued.
Capital improvement projects in which bond debt is requested would include:
• Funding a portion of the cost of a $3.5 million primarily grant-funded Avenue N bridge over a low-water crossing, $125,000;
• Matching grant fund obligation for a tri-campus connectivity project, $442,000;
• Nature Heights roadway extension, $475,000;
• Childers Park improvements. $335,000; and
• Funding portions of “master plan updates” proposed in the city’s comprehensive plan for parks and downtown public amenities, $200,000.
Administrators compiled potential debt projections, ranging from fiscal year 2020-21 to 2028-29.
The loan sale and grant acceptance process would need to coincide with resolution to take on more bond debt, officials said.
Hodge said the goal of staff is to make proposals that “look at lowering the tax rate or keeping the utility rates as low as possible” as council members considered a new debt resolution.
Projects primarily funded by the Texas Water Development Board, requiring a city match, would allow for zero interest, two-month deferred payments upon issuance for up to 30 year terms.
TWDB-connected grant loan projects which would matching funds earmarked in the general fund include:
• A Backbone bypass proposal, $947,000 (Approximately $744,000 in TWDB grant is available;
• The Avenue N Bridge project, $233,000 (Approximately $2.7 million in federal grants and a $600,000 TWDB grant are available);
In the utility fund, staff projects:
• $16.6 million for the new wastewater plant and relocation; with an additional $11.6 million for doubling the capacity;
• A south U.S. 281 water booster station, $200,000;
• An infrastructure response plan, $17,000;
• Raw water flood mitigation project, $390,000;
• Arctic Freeze Recovery Project, $200,000; and
• Sanitary sewer line replacement project, $60,000.
An item added to the provided list was in the utility category for a replacement of the city’s 25-year-old irrigation pivots, $200,000.
Capital improvement projects that are driving the proposals for bond sales include: doubling the construction of a 1.5 million gallons per day wastewater plant to increase it to about 3 million gallons per day; The estimated cost of the total project would be $41 million.
“As part of working with water development board and looking at the grants they are issuing to us, what we’re talking about doing is relocating the wastewater treatment plant and instead of building a 1.5 million gallon per day plant, we have actually doubled that,” City Manager Mike Hodge said.
The site is behind Walmart and is currently leased from LCRA by the city for water plant effluent irrigation.
The plant would be funded, in part, with a $13.1 million grant and with council approval $16.6 million in bond debt with zero interest for a 30-year term.
Water and sewer rate increases would also be associated with those costs.
“Cumulatively they add another 9 percent for water and another 9 percent for sewer,” Hodge said. “Where ours works, it’s both the base and consumption.”
The next city council meeting is scheduled for 6 p.m. on Tuesday, June 1 at city hall, 800 Third St.