Council OKs November bond election

Mineral Wells City Council, Texas, on Tuesday unanimously set Nov. 7 as the day residents can decide the outcomes of three proposed capital improvement projects.

The three propositions combined, if passed, would entail issuing $17.265 million in general obligation bonds that, if repaid over 25 years, would result in a property tax increase of 12 cents per $100 property valuation, and an increase in water and sewer rates for related infrastructure repairs and upgrades.

City Finance Director John Moran told the Index a 1-cent increase in the tax rate will increase annual taxes on a home valued at $50,000 by $5, or $10 annually for a $100,000 home. He said the average home value in Mineral Wells is $70,000.

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Early voting will take place across Palo Pinto and Parker counties beginning Oct. 23. Both counties have countywide polling, meaning residents of those counties can cast a ballot at any polling site within that county. Mineral Wells residents living in Palo Pinto County must vote at a Palo Pinto County voting site, while those Mineral Wells residents in Parker County must vote at a Parker County polling location.

The three propositions on the Nov. 7 bond election ballot are:

  • PROPOSITION A -- Issuance of $7.5 million in bonds for the construction and reconstruction of streets and roads, including replacement of of water and sewer lines in connection with those street and road improvements.
  • PROPOSITION B -- Issuance of $5.8 million in bonds to purchase, construct and equip the Bank of America building property for use as a new City Hall, and make certain improvements to the existing City Hall and City Hall annex.
  • PROPOSITION C -- Issuance of $3.96 million in bonds to construct and install a water line along U.S. Highway 180 West.

After adopting the election ordinance, council unanimously approved issuing a $25,000 non-refundable option fee of $25,000 to the owner of the Bank of America property, Rajhasthan Investments LLC, of Dallas. This is part of the agreement the previous city council agreed to in April as it took the initial steps of exploring acquiring the now mostly empty two-story building that sits in the middle of town at 100 S.E. 6th Avenue.

Bank of America ceased operations there June 20, and most of the second-floor tenants have left. According to Palo Pinto Appraisal District records, the property -- including parking areas on the east and west sides -- totals 29,302 square feet, and is valued for taxing purposes at $789,350. The city has entered into a proposed purchase price of $1.125 million, which is included in the bond proposition.

An architectural firm looked at two options for the property -- one combining city administrative offices with police and municipal court operations, costing several million more dollars to accomplish, and one option for just city offices and functions. Council decided to go with turning the 30-year-old building into a City Hall-only building and look at presenting a future bond election for a new public safety safety facility for police and fire/EMS.

The council is considering a second bond election next May that would include other recommended projects, including parks and rec improvements.

Several people addressed council at the outset of Tuesday's meeting. Brandon Johnson said he understands the needs, but questioned if the city has a plans for growth, replacing equipment and infrastructure repairs.

"We know City Hall is breaking down," Johnson said. "No one is disputing we need a new one. I think the disconnect we see is businesses leaving. The problem is we have a shrinking tax base and an increasing tax rate."

Mayor Mike Allen said the council regularly plans and looks ahead.

"It's not like we sit here and don't do anything," Allen said. "We plan."

ity Manager Lance Howerton noted the annual council planning session that takes place at Lake Mineral Wells State Park, and said the formation of the bond committee in 2013 to come up with capital improvement needs and projects was a form of long-term planning and vision.

"That's one of the biggest planning opportunities we have had in recent years," Howerton said.

Grand Prairie resident Brian Golightly attended, saying he has roots in the community and is considering returning to Mineral Wells to retire, but said tax and fee increases have him concerned.

"I do agree with raising taxes for public safety, also the increases in (public safety position) salaries," he said, referring to a proposal by Ward 4 Councilman Doyle Light seeking an 8-cent tax hike in the 2017-18 budget to hire three new fire/EMS personnel, two police officers and provide $3,600 in annual salary increases for designated police and fire department employees.

As for the proposed City Hall, project, Golightly said he is undecided.

"I go back and forth on it," he said. "It's a lot of money to spend on it."

As he did at the previous council meeting discussing the bond package, resident Terry Blevins came out opposed to the City Hall project and urged citizens to oppose what he calls a planned "temple" for city officials and workers.

"We don't like your bond measure," he said. "I want to congratulate you because you have apparently raised the ire of a good many people. You need to live within your means. We don't want that."

He said he wants more money going "where it is needed," into infrastructure projects.

Tribune Content Agency
Public finance Texas
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