Area Bond Issues

Area Bond Issues

Written by Rachel Youens Saturday, 07 October 2006

Cedar Park Bonds

New funding mechanism may be entertainment center’s last hope

If things had turned out just a little differently, Cedar Park residents might be sitting inside their entertainment center right now, rather than going back to the polls to vote on whether or not one will exist at all.

A proposed entertainment center has gone back and forth between the voters, the city council and planners for four years now and is once again on the ballot. However, this time the funding strategy has changed with the 4A Corporation Expansion Proposal.

Ballot Proposal

In 1999 the city of Cedar Park agreed to a one cent sales tax increase that would go toward funding an Economic Development (4A) Corporation. If this proposition is approved, it will allow that 4A Corporation to use the money they are already receiving in order to fund an entertainment complex.

Besides avoiding the property tax hikes that came with past funding strategies, this funding mechanism is advantageous because it forces the 4A Corporation to use money they already have available, about $2 million annually according to the corporation’s director Phil Brewer, rather than relying on projected property tax revenue. Some of the past proposals have failed due to ballooning costs or budgets far beyond what the city of 48,000 could afford, but this new plan sets a definite amount and the 4A Corporation cannot legally finance more than their revenue will allow.

Were this proposition to be approved, the city has said the next step would be for the 4A Corporation to begin accepting proposals for an entertainment center that fits into that budgeted amount. There is currently no set location or design, and any proposal would have to be approved by the both the 4A Corporation and City Council before it would move forward.

Center’s History

In the past four years Cedar Park saw three proposals, drawing funding primarily from general obligation bonds.

In February 2005, voters approved $30.8 million in bonds for the construction of a new Multi-Purpose Events Center serving as home to the Austin Ice Bats due to open November 2006. City Council records show that when financial and schedule issues began to crop up, they voted to stop all work on the MPEC July 14. Since the bond was approved specifically for the MPEC, its funds are no longer usable today.

The city then hired a consultant from Stafford Sports to find a way to make an entertainment center affordable for the city’s budget. The consultant pitched a $75 million stadium to the City Council, who denied the proposal, with the official city statement on the MPEC stating that all work on the current project be stopped and that any future proposals take into account financial, development and operational issues.

“We already have the 4A Corporation, which receives money specifically for the city’s development,” Cedar Park Mayor Bob Lemon said. “We’re going to get this money whether we have an entertainment facility or not, and if this proposition doesn’t pass we’re going to find other things to fund.”

Entertainment Center Timeline

• November 2002 - Citizens vote against an $8.6 million bond package for Southwest Sports Group’s plan to build a $32 million amphitheater and ice rink for the Dallas Stars.
• February 2005 - Citizens vote for $30.8 million dollars in bonds to build a $38 million Multi-Purpose Entertainment Center with Stafford Sports for the Austin Ice Bats, to be completed by November 2006.
• July 14, 2005 - City council stops all construction work on the MPEC and goes back to architectural work to resolve financial problems in the design. They also decide to begin looking at other proposals.
• September 2005 - City council extends their contract with Stafford Sports, at a cost of $25,00 plus a four percent administrative fee, so that they can analyze more proposals.
• November 2005 - City council declines a Stafford Sports proposal for a $75 million stadium housing events such as Austin Wranglers games. All work on the MPEC ends. Council decides no more proposals will be considered until a realistic method of financing is found.
• August 2006 - City council votes to put the proposal to use 4A sales tax on the ballot for November.

Leander Bonds

Servicing Growth

Growth is coming at a cost for Leander. Along with more people come more fires to extinguish, more cars on the roads, more kids on the swing sets. Six bonds on the November ballot aim to help Leander facilities catch up with the population increase.

“Leander always used to be an afterthought,” Leander Mayor John Cowman said. “We want to present these bonds to the public and see if they’re ready to take the next step our city needs to make.”

The language of the bonds voters will see on the ballot is purposefully vague, according to Leander’s director of planning and development, Jim Bechtol. When specific provisions are written into the language of a bond, if it is passed the city is bound by law to complete all that was promised regardless of unforeseen problems or new needs. However, the city’s bond advisory committee has outlined a list of priorities they want to target with the money.

Roads

The largest of the six bonds addresses roads. Proposition one gives $16,690,000 to bring the city’s streets up to speed with its growing population.

“As the city has expanded it has annexed many county roads, which have different building standards than city roads,” Bechtol said. “Rather than draining into a sewer system, the water flows into ditches along the side, which have sediment that can gather, clog up and cause an overflow.”

If this proposition passes, Bagdad Road could see the addition of new gutters, detention ponds, curbs and sidewalks. Mockingbird Lane, Municipal Drive 1 and 2, CR 269 and 271 and County Glen could all receive new surface treatments.

Along with treating existing roads, the advisory committee has also directed money towards building new ones. They have recommended a five-lane road from Highway 183 to Leander Drive and a four-lane boulevard from Leander Drive to Ronald Reagan Blvd.

Public Safety

The second largest bond, $9,875,000, goes to public safety facilities. Money from Proposition two would go toward purchasing communications systems, emergency vehicles, gear and training and operating facilities.

Recreation

The last bond was passed in 2004, and the city wants to continue improving recreation with a community activity center. Proposition three provides $9,500,000 for the property design and construction of such a facility complete with exercise and meeting rooms.

The Mason Homestead, a historical building near the city’s new library on Bagdad Road, is being considered for conversion into a history center. Proposition five would help repair the building to a condition where it could house historical artifacts.

To manage the burgeoning parks and recreation sites, Proposition four gives $125,000 toward improving the existing parks facilities building. Another $275,000 is put forth in proposition six to construct public works facilities.

If all six of the bonds are passed, the tax rate would increase by 7.5 cents, according to Sharon Johnson, Leander Financial Director. The city has not raised taxes since 2002.

Williamson Bonds

Parks and Roads Expansion

In the six years since Williamson County last issued road and parks bonds, the county’s population has grown as has their aspiration for creating a strong network of roads across the county. The two bonds on the table will bring to fruition some of Williamson County’s biggest road projects.

The population has grown by 33.4 percent, according to Williamson County statistics. In the next 10 years, the county expects this population to continue to expand to almost 549,000.

The general obligation bonds, if approved, would affect taxes, but only slightly and not until 2012, when they would increase the tax rate 9/10 of a penny. According to the county’s 2005 financial report, Williamson County has a AA bond rating, one of only 11 counties in the state with that high rating, which helps the county borrow money for bonds at a low interest rate while keeping taxes low.

Proposition One

This proposition gives $228 million to help further some of the projects from the Multi-Corridor Transportation plan, in addition to improving Lakeline Boulevard, Pond Springs Road, R.M. 2243 and continuing Ronald Reagan Boulevard’s stretch from north to south across the western side of Williamson County. Other roads mentioned in the bond include Chandler Road, U.S. 79, F.M. 1660, R.M. 620, F.M.1460, Brushy Creek Road, Georgetown Inner Loop, Westinghouse Road and IH-35

Proposition Two

Proposition two targets parks, securing new land for the future and improving existing parks, which the advisory committee hopes will offset the construction of roads. The bond does not specify which parks, but does include the construction of hike and bike trails and the building of recreational facilities.

This is the county’s first road and park bond proposal since 2000.