The Heath City Council reviewed a Plan of Finance from the City’s financial advisor to fund close to $20 million in new Capital Improvement Projects and approved a Resolution Authorizing Publication of Notice of Intent to issue Combination Tax and Surplus Revenue Certificates of Obligation during its October 25 meeting.
“As a result of the City’s astute and proactive financial management, you are in an excellent situation to pursue this Plan of Finance for issuing these bonds,” said Jim Sabonis, Managing Director of FirstSouthwest, when he presented the Finance Plan for the new CIP projects. “Your cash management practices are saving citizens money, and your tax rate remains among the lowest of any city with which we work.”
The Plan of Finance presented by Sabonis encompasses the financing of approximately $7 million to fund various projects including streets, parks/trails, a fire truck and municipal building improvements. The Combination Tax and Surplus Revenue Certificates of Obligation issued are not anticipated to impact the current tax rate.
The plan also includes $13 million to fund critical water and sewer infrastructure to serve a growing community. The Combination Tax and Surplus Revenue Certificates of Obligation are anticipated to increase current utility bills by only $6 per month.
“I am excited about the opportunity to continue an aggressive approach to launching and completing Capital Improvement Plan projects that are much needed, and in some cases, past due,” said Mayor Brian Berry. “Many are necessary to ensure that we deliver water and sewer services to a growing community in compliance with state and federal mandates.”
“We are committed to ensuring a high quality of life and sustaining Heath’s reputation as a premier DFW community, and we are very pleased that these critical projects can be addressed with an anticipated minimal financial impact on the citizens we serve,” said Mayor Berry.”
According to the Financial Plan presented by Sabonis, the Heath City Council will consider and approve issuance of the bonds in January 2017. Sabonis noted that “near historically-low interest rates” made the timing of the bond issuance another positive factor of the Financial Plan.