Round Rock approves $ 84.7 million debt for highway and convention center projects
Round Rock City Council on Thursday evening approved $ 84.7 million in debt to pay for road improvements, a convention center and public infrastructure at Kalahari Resorts.
City officials said the five debt issues would be backed by AAA-rated property taxes – the highest possible rate by S&P Global.
“Our excellent bond ratings allow us to borrow these essential funds at the lowest possible cost,” said Mayor Craig Morgan. “The money we invest in infrastructure and major economic development partnerships will be even more profitable thanks to the city’s exceptional financial management.
Susan Morgan, Round Rock’s chief financial officer, said road debt will be repaid through property tax revenues and road impact fees, which will be paid by developers.
“Debt related to the Kalahari project is considered self-financing,” said Susan Morgan. “The principal and interest on these bonds should be paid from select the tax revenues of cities and states generated by the Kalahari project. ”
Morgan also said that these city and state tax revenues are not expected to affect the city’s property tax rate, and that the city expects to generate $ 4.6 million this year in tax revenues from the city. Kalahari project.
The largest issue is $ 30 million in bond-to-pay certificates for the expansion of the Round Rock street system. City officials said it was the third of five planned bond issues of around $ 140 million to fund Progress, a five-year, $ 240 million highway expansion program.
City officials have said some of the potential projects will be road improvements at Deepwood Drive, Gattis School Road, Kenney Fort Boulevard, Logan Street, McNeil Road, North Mays Street, Oakmount Drive, Old Settlers Boulevard, Red Bud Lane, RM 620, Texas 45 Frontage Road, University Boulevard, Wyoming Springs Drive, County Road 112, and South Mays Corridor.
The second largest issue is $ 20.9 million in sales tax bonds for project costs related to the Congress Palace city property, adjacent to the Kalahari Resorts hotel. City officials said the convention center provides large-scale meeting and exhibition space and represents a valuable new industry for Round Rock to enhance the economic diversity of the community.
City spokeswoman Sara Bustilloz said the funding would save money by using cash up front and delaying debt issuance.
“The city’s already strong financial position has given us the ability to keep all of our projects moving and to support the local economy,” Bustilloz said.
According to city documents, there are also two $ 15.4 million issues related to the Kalahari Project – one for public on-site improvements and the other for public off-site improvements.
Public on-site improvements in the Kalahari project will include construction of transportation projects such as turn lanes and signals on US 79 and Kenney Fort Boulevard, and water, sewer and drainage improvements on the property. .
Public off-site improvements for the Kalahari Project will include improvements to US 79, Joe DiMaggio Boulevard, Gattis School Road and Kenney Fort Boulevard, as well as water, sewer and drainage improvements.
The final issue is $ 3 million in limited tax notes for the purchase of city vehicles. The duration of the tickets will be five years and will cover the replacement of vehicles from the general fund.
The city has traditionally paid for the replacement of its general fund fleet using a leasing contract, however, due to the current low interest rate conditions, city officials said the issuance of notes limited tax was the most cost effective option.
As part of other actions, the council also approved the installation of a playground at Frontier Park as part of the Community Development Block Grant program as an investment in the revitalization of the Chisholm Valley neighborhood.
Mayor Morgan said residents should comply if a business asks them to wear a mask. the the city mask’s mandate expired at midnight on April 22.
“Just like with your neighbor, if your neighbor chooses to wear a mask, don’t shame him,” Morgan said. “Respect everyone’s choice.”