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An Ordinance Ordering a Special Election to be held on November 8, 2016, for the issuance of General

Obligation Bonds to fund the Capital Street Improvement Project

Presented By: Mark BrowneCity Manager

Item No. 5August 22, 2016

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Introduction• Staff has estimated approximately $12 million in Capital

Infrastructure Improvement Projects for City Council consideration

• Scope of work includes • Mill and Overlay of various streets within the City • Re-construction of seven streets with new curbs and

sidewalks • Streets not identified have received paving in the last 8

years and streets needing Util ity improvements mandated by TCEQ

• The City is proposing to issue debt to fund these infrastructure improvements

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Application Types

• Mill and Asphalt Overlay involves the milling of existing asphalt and the overlay of a new asphalt surface

• Street Reconstruction involves the complete removal and replacement of the asphalt and base materials as well as new sidewalks and curbs

4

New

ly Paved

Full Reconstruction

5

Reconstruction will include new curbs and Sidewalks

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Mill and Overlay – Curb to Curb

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Wedge Mill – milling of the curb edges prior to asphalt overlay of full street

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Tax Rate Analysis• Current Property Tax Rate

• M&O Rate $0.330762• I&S Rate $0.059500• Total Rate $0.390262

• With proposed bond issuance Property Tax Rate wil l not increase unti l 2018 • Current I&S Rate $0.059500• Estimated Increase $0.035700• Total I&S Rate $0.095200

• Then decrease in 2033• Decrease $0.031800• Estimated I&S Rate $0.063400

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Preliminary Tax Rate AnalysisExisting Tax-Supported

D/S

Principal Interest Total Projected Total Tax-Supported

D/S

$9,917,486 $12,000,000 $5,441,677 $17,441,677 $27,359,163

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SAMPLE STATEMENT ON 2015 AVERAGE TAXABLE HOME VALUE IN ALAMO HEIGHTS, TEXAS

Taxing Unit Assessed      Value Homestead Exemption

Taxable        Value 2015 Rate per $100 Tax Levy % of            Total 

Levy

Alamo Heights I.S.D. $559,986  $25,000  $534,986  $1.195000  $6,393  44%

City of Alamo Heights $559,986  N/A $559,986  $0.390262  $2,185  15%

Alamo Community College Dist. $559,986  N/A $559,986  $0.149150  $835  6%

Bexar County $559,986  N/A $559,986  $0.297500  $1,666  12%

University Health System $559,986  N/A $559,986  $0.276235  $1,547  11%

County Road & Flood $559,986  $3,000  $556,986  $0.017000 $95  12%

S.A. River Authority $559,986  $5,000  $554,986  $0.017290  $96  1%

Total $2.342437  $12,817  100%

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SAMPLE STATEMENT ON 2018 AVERAGE TAXABLE HOME VALUE IN ALAMO HEIGHTS, TEXAS

Taxing Unit Assessed      Value Homestead Exemption

Taxable        Value 2015 Rate per $100 Tax Levy % of            Total 

Levy

Alamo Heights I.S.D. $559,986  $25,000  $534,986  $1.195000  $6,393  44%

City of Alamo Heights $559,986  N/A $559,986  $0.425962  $2,385  16%

Alamo Community College Dist. $559,986  N/A $559,986  $0.149150  $835  6%

Bexar County $559,986  N/A $559,986  $0.297500  $1,666  11%

University Health System $559,986  N/A $559,986  $0.276235  $1,547  11%

County Road & Flood $559,986  $3,000  $556,986  $0.01700  $95  11%

S.A. River Authority $559,986  $5,000  $554,986  $0.017290  $96  1%

Total $2.378137  $13,017  100%

TOTAL DEBT SERVICE

Original Issues General Fund UtilityLast 

Payment 

* 2007 CO $7.5 million (GF $5.165 m and Utility $2.335 m) 1,073,059$     232,814$      Aug 2017

2012 GO $6.3 million City Hall Building 7,137,128$     ‐$              Aug 2032

2016 GO REFUNDING $2.975 million 1,707,298$     1,674,158$  Aug 2027

Total (Principal and Interest) 9,917,486$     1,906,971$  11,824,457$  

Note* 2007 Bonds were for General Fund and Utility FundNew fire fighting and rescue apparatusRepairs, extensions and improvements to water system Repairs, extensions and improvements to sewer system Construct street and sidewalk improvements and related      pedestrian amenitiesFund storm water drainage master planRepair, modify and renovate various City facilitiesPay for professional services related to these projects and     pay for cost of issuance

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Map of Streets

1515

• Two Public Informational Meetings were held

at City Hall introducing proposed project

− June 29th

− July 20th

• The information was also placed on the City

Website for citizens who could not attend the

meetings

Background

1616

• City Council of the City of Alamo Heights,

Texas shall be authorized to issue bonds in the

amount of $12,000,000 for the purpose of

constructing and/or repairing streets, curbs,

sidewalks and related drainage improvements

with the bonds.

Proposition

1717

• City Council shall be authorized to levy and

pledge, and cause to be assessed and

collected, annual ad valorem taxes on all

taxable property in the City, to pay the annual

interest on the bonds and provide a sinking

fund to pay the bonds at maturity.

Proposition

1818

• Early Voting Lion’s Field Adult /Senior Center, Olmos Park City

Hall, and Tobin Library are included in the list of Early Voting locations

October 25, 2016 – November 4, 2016• Election Day Voting Tuesday, November 8, 2016 Precincts 3020 & 3026 at Alamo Heights Baptist

Church, 6501 Broadway Precinct 3025 at City Hall, 6116 Broadway 7:00 a.m. – 7:00 p.m.

Election Information

1919

• Voting information will be available:

City’s website

September/October newsletter

Publications will be in the San Antonio Express-

News and La Prensa

Call City Secretary at 832-2209

Election Information (con’t)

2020

• Texas Government Code, Chapter 1251

allows the municipal authority to call

general obligation bond elections.

Policy Analysis

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Fiscal Impact• If approved by the voters, tax-exempt general

obligation bonds would be sold at an

advantageous time for the City depending upon

interest rates and market conditions in or about

early 2017.

• The City should realize cost savings by

participating in the Joint Election.

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QUESTIONS