ABILENE, Texas (KTAB/KRBC) – The City of Abilene is proposing a certificate of obligation bond for $23.6 million to make needed street repairs for two miles on East North 10th from the Loop to Treadaway as well as six miles on Maple Street.
“The roads are horrible, they are terrible,” said Bradley Sherman, Abilene resident.
“There’s some roads that definitely need some attention,” says Chris Flanders, resident of East North 10th Street.
To fix those roads the city of would like to issue a certificate of obligation, which is a bond that does not have to be voted on by residents.
“We really don’t anticipate it’s going to increase that tax rate,” said Mike Rains, director of finance for the City of Abilene. “But even if it did, it would be very slight,” said Rains.
Rains says bond elections are typically for larger projects, like the street project from 2015 that was $69 million.
“This one’s a little smaller than that, so the certificate of obligation makes more sense,” said Rains.
Bonds under a certificate of obligation are more time sensitive.
“And it’s also more of an immediate need, we don’t have time to wait another year to two years to have an election,” said Rains.
But what about other bonds we currently have?
“Every year our bonds get paid down a little bit,” said Rains.
Which helps lower the tax rate, once paid off.
“That gives us a little bit of cushion to be able to issue additional bonds without raising the tax rate,” said Rains.
This, in turn, should help make room for other needed projects.