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Item No. 13
<br />memorandum
<br />TO: Mayor & City Council
<br />FROM: John Godwin, City Manager
<br />SUBJECT: STREET BONDS
<br />DATE: December 20, 2016
<br />BACKGROUND: As discussed at the December 12 meeting, we have an opportunity to increase
<br />the city tax rate to sell bonds for much - needed capital improvements, yet keep a lower net tax
<br />rate for our taxpayers due to the upcoming reduction in the PJC rate. Specifically, the mayor
<br />presented a program that would increase the city's ad valorem rate by five cents, thereby
<br />allowing a sale of approximately $11 million in bonded debt.
<br />STATUS OF ISSUE: This debt can be incurred in two ways: sale of certificates of obligation
<br />following a public hearing and a vote by the city council, or by sale of general obligation bonds
<br />following a vote of the public. In order to sell COs before May, we likely need to have the
<br />council consider authorization in late January or early February. In order to have a GO election
<br />on the next statutory election date, the council must call the election no later than February 17.
<br />Below is a list of recommended street projects, ranked in order of priority by city staff, plus
<br />some funding for park improvements, especially safety- related repairs and replacements. The
<br />projects below total an estimated $17 million, so the council will need to eliminate several
<br />projects, the actual number depending on which ones are selected.
<br />STREET PROJECTS
<br />LENGTH
<br />TOTAL PROJECT
<br />DISTRICT
<br />Church, Hearne to Clarksville
<br />3700
<br />2,106,277
<br />5
<br />33SE, Lamar to Clarksville
<br />4300
<br />3,049,455
<br />6, 7
<br />24 SE, Clarksville to Lamar
<br />2750
<br />1,475,910
<br />5, 6
<br />Collegiate, Lamar to Clarksville
<br />3545
<br />382,568
<br />6
<br />Graham, 3rd to RR
<br />2700
<br />1,914,750
<br />2,4
<br />6th, Pine Bluff to Evergreen
<br />7045
<br />75,348
<br />1, 3,5
<br />7NW, Graham to Center
<br />4960
<br />405,090
<br />2,4
<br />17NE, Clarksville to Pine Bluff
<br />2400
<br />1,288,058
<br />1, 5
<br />3rd SE, Sherman to Provine
<br />4200
<br />612,518
<br />5
<br />1st SE, Kaufman to Pine Bluff
<br />1500
<br />218,768
<br />5
<br />8th, Pine Bluff to 0. Jeff
<br />6700
<br />469,009
<br />1, 3,5
<br />
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