DALLAS - The flourishing Austin suburb of Georgetown will trim a $126 million bond proposal by $38 million in hopes of winning voter approval Nov. 4.
The City Council agreed to trim the package for park and street improvements at its meeting Wednesday after hearing public comment.
As the county seat of Williamson County, 26 miles north of Austin, Georgetown has increasingly merged with suburban sprawl extending from nearby Round Rock and Leander.
Among the projects covered by the proposed bond package is a $13.2 million widening of Austin Avenue to the new Texas 130 tollway. The council also left funds to add facilities in San Gabriel Park for the Georgetown Farmers Market and other activities.
The council cut $10 million from a $20 million proposal to build the new Garey Park from a 525-acre ranch about six miles west of the city.
Georgetown finance director Micki Rundell told the council that the $87 million of bonds would be issued in increments to limit any increase in the tax rate of 37 cents per $100 in assessed property value. The council could also postpone projects if they threatened to boost taxes beyond acceptable limits, she said.
In April, the city issued $5.25 million of certificates of obligation that carried a general obligation pledge. At the time of the issuance the city received an upgrade to AA from AA-minus by Standard & Poor's. Analysts noted the city's expanding tax base, strong retail sales development, and improved access via I35 and the SH130 tollway.
Georgetown's 2008 estimated population of 50,400 has more than doubled from 10 years ago. Total combined population within the city's limits and extraterritorial jurisdiction is nearly 70,000.
The estimated 2004 population for Williamson County was 317,938, a 27% increase in four years, making it the 13th most populous county in Texas. Round Rock is currently the largest city in the county, with an estimated 2004 population of 82,040.
With growth, assessed valuation in Georgetown has increased by more than 10% annually over the past five years to $3.57 billion for fiscal 2008. Estimates for fiscal 2009 reflect a 6% increase over fiscal 2008 to roughly $3.8 billion, analysts note.
The city's bond rating was upgraded to Aa3 from A1 by Moody's Investors Service last year. Fitch Ratings maintains an A-plus on the city's GOs. This year's Standard & Poor's upgrade came a year after the rating agency raised the city to AA-minus from A-plus.
"It's very unusual to get an upgrade two years in a row," Rundell noted.
