Brownwood City Council approved an ordinance authorizing the issuance and sale of Combination Tax and Revenue Certificate of Obligation, Series 2013 for $3,870,000 to construct two new cells at the city’s landfill.
On July 23rd, the council authorized publication of the notice that the city intended to issue a certificate of obligation not to exceed $3.9 million to finance the construction of the City of Brownwood Landfill’s cells 12 and 13. No comments were received regarding the issuance.
According to the city’s financial advisor George Williford of 1st Southwest Company, more than 10 banks were solicited for proposals and four bids were received. The lowest and best bid, from Regions Bank was awarded the bid at an interest rate of 3.1815% plus the costs of issuance. This bid also allowed for pre-payment at anytime. Annual payments will be approximately $325,000, which is a savings of $20,000 over the initial projection of $345,000 annual payments.
According to City of Brownwood Director of Public Works David Harris, the construction of the cells is very necessary and expands the life of the landfill another 16 years.
“If we don’t do this, we’d have to close the landfill,” said Harris. He explained that the design of the cells will begin as the city receives the funding from the certificates of obligation and then the actual construction would begin at the first of next year.In other matters on the agenda:
*Council formally announced that the proposed tax rate will be adopted at special meeting will be held on September 17th at 9:00 a.m. on first reading and during a regular meeting on September 24th at 9:00 a.m. on second and third reading. These dates were established at a previous meeting of the council. Brownwood Mayor Stephen Haynes stated that this is the same tax rate as last year, but with properties added to the tax roll, the city will receive tax revenues which elevate the effective tax rate $0.0035/$100 valuation, up from the previous year’s effective rate of $0.7428.
*Council authorized the expenditure of funds not to exceed $9,000 for the replacement of the gas and water lines that serve the Camp Bowie Recreation Center and City House. This replacement is necessary due to a leak that has developed in the line. According to City Manager Bobby Rountree, these funds will be taken from the city’s cash reserves.
*Council passed an ordinance on second and third/final reading which establishes a loading zone space on W. Anderson Street.
