Special to the NEWS
Some $7.5 million in citywide improvement projects are being realized in San Benito.
Infrastructure upgrades, vehicle replacements, fire hydrants and new equipment purchases are underway thanks to a multi-million dollar certificate of obligation project approved by City Commissioners here in October 2011.
Infrastructure projects include construction of a new triplex sewer lift station to replace an outdated and troublesome unit in the Landrum area. The design phase of the new $400,000 triplex lift station has been completed, required geotechnical work should be finished by the end of January and bids for construction are anticipated in early February, according to Engineer Victor Gutierrez of Coym, Rehmet & Gutierrez Engineering, L.P.
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1 comment
At the risk of being accused of “raining on anybody’s parade” two factors having a favorable effect on obtaining the low interest rate are not mentioned.
In August of 2011 before the CO’s (Certificates of Obligation) were put out on the market, I remember the City restated/amended the Fiscal Year 2010-2011 Budget for the General Fund via Ordinance No. 2469. Basically, the City reduced the year end expense budget total to more closely match the less than projected revenues budgeted, as I recall it. The end result presented the city’s financial position in a more favorable light for investors.
However, I recall that after a quick perusal of the **UNAUDITED** Financial Figures (sourced from the City) and excluding the $480,210.84 insurance settlement proceeds (an unbudgeted revenue), the City ended FY 2010-2011 (OVER) budget by $352,165.07
The other factor affecting the low interest rate was the purchase of “Bond Insurance” by the City at a cost of $60,000. Purchasing bond insurance makes it a more attractive investment for investors.
Jose F. Rodriguez