Title
Consider an ordinance authorizing the issuance and sale of Combination Tax and Revenue Certificates of Obligation, Series 2022, for street improvements.
Summary
DATE: January 18, 2022
TO: Kent Cagle, City Manager
FROM: Jonathan Locke, Executive Director of Finance
SUBJECT: Certificates of Obligation for Street Improvements
BACKGROUND AND FINDINGS:
The City maintains 539 centerline miles, or 2,191 lane miles, of paved roadways with a total replacement value of $840 million. To better address street maintenance needs, City Council adopted an ordinance in December 2018 establishing a Street Maintenance Fee. The Street Maintenance Fee was set at a monthly rate of $1.70 per single-family equivalent that generated approximately $1.7 million annually for street maintenance.
A street condition assessment conducted in 2019 recommended annual street maintenance of $4.3 million to maintain streets at their current condition. The assessment also identified $120 million in streets that are beyond the point of maintenance and need to be reconstructed. Following the assessment, Winter Storm Uri further deteriorated street conditions and added another $40 million of streets that require reconstruction.
During the Fiscal Year 2022 Budget process, City Council deliberated the different options to address street maintenance and reconstruction. On September 14, 2021, City Council approved adjusting the Street Maintenance Fee to a monthly rate of $10 per single-family equivalent that is expected to generate $9.7 million annually. The additional revenue from the Street Maintenance Fee will be used to meet the recommended $4.3 million annual street maintenance, provide approximately $4 million annually for street reconstruction, and repay a $24 million bond issue for street reconstruction.
On November 16, 2021, City Council authorized proceeding with the issuance of certificates of obligation for street improvements and directed the publication of notice of int...
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