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Aug 09 2019

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City approves $1.5M bond on sewer upgrade

By DAVID LOPEZ
editor@sbnewspaper.com

A proposed bond of $1.5 million for the upgrade of six sewer lift stations was approved by commissioners this past Tuesday at a regular city meeting. The $1.5 million encapsulates phase 1 of the sewer overhaul, which includes only the designing and planning process.

Commissioners approved the motion 3-1, with Tony Gonzales being the only commissioner opposed.
Estrada-Hinojosa Financial Advisor Donald Gonzales presented the item on the terms of the certificates of obligation. Gonzales commented that the Federal Reserve bank lowered interest rates just the week before the meeting. The bank with the most cost-effective bid was First National Bank at 2.09%

“[The costs] we were anticipating a month ago, this is about $11,000 less per year; in total we’re about $415,000 less in interest costs than what was being projected,” said Gonzales.

According to Don Gonzales, the bond will not raise the city’s current property tax-rate of 72-cents per $100 valuation.

“The city has not raised its tax rate in six years,” he said. “With this new issuance of debt, there’s not gonna be any planned increase in the tax rate because this is all going to be paid for by the water and sewer utilities system.”

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Permanent link to this article: https://www.sbnewspaper.com/2019/08/09/city-approves-1-5m-bond-on-sewer-upgrade/

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