Jim Sabonis and Beth Bankhead of First Southwest Company spoke to the Glen Rose City Council Monday night about certificates of obligation (CO) for the 4-B Tax Advisory Board.
Sabonis said the council needs to approve the sale at their July 13 meeting to receive funds by Aug. 12.
“When we place the debt, it will be competitively bid out,” Sabonis said. “We expect a healthy and competitive bid process.”
He said despite economic reports, interest rates on bonds are good and many banks, local and national, are seeking such opportunities. He added that the city also has a good credit rating, which will help bring in the best interest rates.
Bankhead said they project the city to earn $390,000 in sales based on October-May sales taxes. She said they even factored in a 20 percent decline due to current economic considerations. Even so, she said the city would still be able to cover the debt.
Council member Dr. Rocky Terry questioned the need to bond out $4 million.
“If it’s going to be two to three years to decide what we’re going to do with it, we’re going to spend a lot in interest before we do,” Terry said.
Any unused funds could be invested, but with an interest rate of six percent, Sabonis agreed they could spend more in interest than they could earn with investments, such as CDs that currently offer only a one-percent interest rate.
Connally Miller added that the bond funds could be used toward other park projects such as the Riverwalk, which is set to break ground on June 25.
Sabonis also pointed out that the language in the notice states “not to exceed $4 million,” therefore, the council could set the dollar amount lower prior to the July meeting.
The council voted and approved to move forward with the publication of a notice of intent to issue certificates of obligation and adopted a resolution declaring expectation to reimburse expenditures with proceeds of future debt.
In other business, council members approved two rezoning requests, changing 403 N. English Street and 405 N. English from R-1 single family residential to B-2 General Commercial.
Bill Vineyard of Paluxy River Realty told the council the buyer is hoping to put a bank building on the lots but still has some issues to work through with TxDOT and Texas-New Mexico Energy.
The council tabled a third rezoning request until more information could be reviewed. That request sought to rezone 1404 NE Barnard Street from an R-1 to R-4 multi-family. Vineyard said the lot would be used for three 12-unit, three-story apartment complexes.
“Upscale is the way I would describe them,” Vineyard said.
Amenities would include a park and individual fireplaces. The problem, however, is that the proposed site is near Highway 67 and the proposed entry way to the city.
Council member Bob Stricklin said he was reluctant to approve such a change at a site that could be what visitors see coming into the city. He also noted that the request was approved by the Planning and Zoning Committee, but with some objections.
“I just don’t think it’s a wise thing to do at this point,” Stricklin said.
Sue Oldenburg, Mike Jones, Darrell Best and Craig Dodson were appointed to fill four places on the 4-B Tax Advisor Board. Two places were left open when Glenn Wilson and Anthony Roffino asked not to be reappointed to their positions. Council member Ricky Villa and Mayor Pam Miller also relinquished their seats to allow more citizens a spot on the board.
Jeanne Dear will join the Preservation Board in place of Kim Cecil, whose term expired in May. Eugune Brode, Betty Gosdin and Ward Miller were also reappointed.