16 Issuance of DebtCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date: Originating Department: Presented By: Agenda Item No.:
4-21-2008 Engineering 41 Shawn Napier, P.E. City Engineer 16
Council Date: /Director of Public Works
4-28-2008
RECOMMENDED MOTION: Two options for consideration: 1. Do nothing and let Paris
Independent School District (PISD) build the main entrances off the Loop and Jefferson
Rd. (F.M. 1507). 2. Have a bond election or sell certificates of obligation to build S.
Collegiate Drive and add in other projects for a total of at least three million dollars.
POLICY ISSUE(S~:
Issuance of Debt
BACKGROUND:
The City was approached by PISD about paying for or constructing S. Collegiate Dr.
between Jefferson Rd. and Loop 286. PISD is going to build the new high school on the
property east of S. Collegiate and between Jefferson Rd. and Loop 286. The existing
road is narrow gravel and asphalt surfaced roadway. The Major Thoroughfare Plan calls
for this section of roadway to be an arterial level which requires at least 80-feet ofRight-
of-Way (ROW) and 60-feet of pavement. Staff recommends building a 40-foot pavement
section that would include two 13-foot lanes and a 14-foot left turn lane.
The Commissioner Court and TxDOT have been approached as other possible funding
sources. TxDOT has pledged to assist monetarily with the reconstruction of two
intersections if we realign a section of S. Collegiate north of the proposed high school.
This would make S. Collegiate the main non-stop thoroughfare, Jefferson Rd. eastbound
traffic would stop at S. Collegiate in front of the Civic Center and would need to turn
right (south) to continue on Jefferson Rd., they would then turn left (east) to continue on
Jefferson Rd. The cost estimate for the arterial level roadway adjacent to the high school
is 1.6 million dollars. The cost for a collector level roadway (39-foot of pavement) is
estimated at 1.3 million dollars. The storm sewer cost that is included in both roadways
is estimated at $450,000.00 and the roadway will need to be built up at the north end near
Jefferson Road. A rough cost estimate for a collector level section of S. Collegiate north
of the high school section is $750,000.00. Ultimately a collector level roadway would
need to be extended north to connect to the five-lane section of pavement south of
Clarksville Street.
BOARD~COMMISSION RECOMMENDATION:
EXHIBITS:
Table reflecting effect of debt issue on tax rate and map with proposed roadway design
ACTION: BUDGET INFO:
^ Financial Report ®Minute Order Expense $
^ Department Report ^ Resolution Budgeted Amt. $
^ Presentation ^ Ordinance YTD Actual $
^ Public Hearing ^ Other Acct. Name
Acct. Number
City of Paris Revised 2/04/08
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FISCAL NOTES:
PISD is prohibited by statute from contributing resources to the project. The City could
also assess the two adjoining property owners on the west side because the improved
street will significantly increase the value of property, but the City should be prepared to
front their share of the cost.
REVIEWED AND APPROVED BY:
® Administration
^ Municipal Court
® Ciry Cletk ^ Community Development ^ EMS/IT ®Finance ^ Fire
^ Legal ^ Library ^ Police ®Eng./Public Wotks ^ Utilities
City of Paris Revised 2/04/08
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Increase in the tax rate per $100 of value to fund the following debt amounts.
Tax rate change in Tax rate change in
decimal format cents format
Debt Issue
$ 2,000,000 0.01210 1.21009
$ 2,500,000 0.01513 1.51262
$ 3,000,000 0.01815 1.81514
$ 3,500,000 0.02118 2.11767
$ 4,000,000 0.02420 2.42019
$ 4,500,000 0.02723 2.72271
$ 5,000,000 0.03025 3.02524
Assumptions:
Taxable Value $ 1,391,800,798
95% collection rate
5% interest rate on bonds
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