The tax note of $600,000 will be borrowed from the city’s depository, Citizen’s National Bank and will be amortized over a period of 7 years at a rate of 4.49% due to it’s being a taxable issuance. The reason for this taxable issuance is that some of the properties being improved are used for private events when the facilities are rented, disqualifying the note for an exemption from this status according to Brownwood City Manager Bobby Rountree.
“The projects were originally included in the 2012/2013 budget as capital leases, however, we were unable to accomplish all the work in this fiscal year, therefore a tax note which allows the funds to be put into a construction fund to spend the money as needed,” explained Rountree.
The amount budgeted totals $571,000 with a $22,000 contingency fund for unexpected expenses during these projects. Improvements to be completed with these funds include the following:
Brownwood Regional Airport - CIP grant match for runway improvements $261,000
Brownwood Regional Airport - New Roof for main hangar $89,000
Service Center: New roof - $36,000
Coliseum - Dome improvements $89,000Adams Street Community Center - New roof
Bennie Houston Recreation Center – Air conditioning for main gym, kitchen improvements
Depot/Harvey House – Fire alarm
Issuance costs $7,000
Many of the improvement expenses involve roof repairs which are very expensive, and necessary according to Rountree. “If we don’t fix our roofs, it doesn’t matter what we have inside,” explained Rountree.
In other matters on Wednesday’s agenda:
*Council held the first of two public hearings on a proposal to increase the total tax revenues from properties on the tax roll by 0.5% by adopting the proposed rate of $0.7463 per $100 valuation. City Finance Director Walter Middleton explained that this is the same tax rate as last year, but with properties added to the tax role, 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. The second public hearing will be held on September 10th; the rate is set for adoption on 1st reading on September 17th; and 2nd, 3rd/final readings on September 23rd. Meetings will be held at 9:00 a.m. in the council chambers at City Hall on all previously mentioned dates.
*Council approved an ordinance on second and third/final readings changing the zoning classification of 1220 Austin Avenue from R3 Multifamily Residential District to C-1 Local Business District.
*Council approved on first reading establishing a loading zone space on West Anderson Street, across the street from the current donation canister location at Good Samaritan Ministries. This is being established to reduce congestion with neighboring businesses according to Rountree.
The next meeting of the Brownwood City Council will be held on Tuesday, September 10th at 9:00 a.m. in the council chamber at city hall.