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Marble Falls city councilors are brainstorming potential projects they’d like to see included in a bond sale scheduled for Sept. 3. The amount for the proposed bonds is unknown at this time. 

The City Council will hold a public meeting on July 9 to hammer out the details of the certificate of obligation bonds, such as the bond’s total borrowing amount and what projects to fund. 

“We still haven’t nailed down the borrowing cost,” city financial advisor Mark McLiney of Samco Capital Markets said during the council’s June 18 meeting.

Based on laws surrounding certificates of obligation, the money may only be applied to projects considered necessary for city operations such as infrastructure, public safety, and utility improvements. 

Topping the city’s wishlist is funding for its proposed wastewater treatment plant and projects from its Capital Improvement Plan.

“We’re still working with you all to come up with that project list,” McLiney said.

Once the scope and dollar amount are determined, the bonds will be publicized for 45 days to notify residents of the city’s intent.

“That’s the date that we’ll notice your citizens that the city is going to borrow money through a certificate of obligation,” McLiney said. “We have to give the dollar amount and what the projects will be for.”

During that 45-day window, Marble Falls officials will work to establish a tax rate for the next fiscal year. 

“The tax rate has to take into account the new bonds,” McLiney said.

The city’s “financial shape” has grown stronger every year, according to McLiney.

“The market recognizes that,” he said. “You’ve been really good and you’ve managed your resources very well.”

McLiney also provided insight into the current bond market.

“At the beginning of the year, we talked about the (Federal Reserve) lowering rates, perhaps, eight times,” he said. “We’re now through June, and they haven’t lowered it yet.”

He said conservative estimates by economic forecasters for the past six months are the main reason behind the current state of the market.

“It’s being driven by the economy doing better than what the economists thought it was going to be at the beginning of the year,” McLiney said.

nathan@thepicayune.com

1 thought on “Marble Falls council deciding on bond projects

  1. The city maybe in a stronger financial position but it still has a major debt load already. It has a wish list a mile long. The waste water plant they want would not cost the amount they are proposing if they had not changed direction years ago when they already had land in the middle of thunder rock for a plant. Raise the tax for the wish list! NNR. Will this be voter approved?

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