Nacogdoches: City to discuss funding for projects
Published: Sat, 09/24/22
City to discuss funding for projects
The Daily SentinelBy NICOLE BRADFORD Staff Writer
Regrouping from a failed attempt to issue $21 million in debt, Nacogdoches City leaders in the coming months will be looking for ways to fund projects, including the possibility of a bond election.
The majority of the city’s current debt expires this month, and officials had planned to issue certificates of obligation, which don’t require voter approval, to fund some of the projects identified as priority.
However, a petition presented Sept. 19 prevents the city from issuing the debt without voter approval.
Items set to be funded through the defunct debt plan include central fire station construction, drainage replacement, park restrooms and playgrounds and repairs to 60 streets throughout the city without a funding source.
“The city does not have adequate revenue to pay for all of these projects, so the project list must be reduced,” city staff stated Thursday in a written statement announcing cancellation of the certificates of obligation. “City Council will be hosting a series of work sessions aimed at identifying ways to proceed.”Before the petition halted the debt issuance, a budget for fiscal year 2023 had been approved with the debt projects built in. Council and staff on Tuesday discussed re-arranging some of the funding to cover some of the de-funded projects.
“Anything that is in the now adopted budget can be reallocated as city council pleases,” Finance Director Pam Curbow said.
About $8 million in federal funding from the American Rescue Plan Act is currently budgeted for water and sewer line repair and replacement.
“If there is something that takes priority over the water and sewer lines budgeted with the (relief) monies, then yes we can redo that,” she said.
“Pretty much anything included in those (certificate of obligation) projects would qualify for the ARPA funds. It’s just going to take a budget amendment.”
The city has about $2.4 million over its required reserves. Projects in the current budget that were to be funded with savings include electrical upgrades to support large events and concerts at Festival Park, land purchases for eventual relocation of the southwest and northwest fire stations and an accessible walkway to the swim area at Lake Nacogdoches West Park.
Due to National Night Out, City Council won’t hold its regular meeting on Oct. 4. Meetings are scheduled for Oct. 11 and 18.
More information and agendas are available at nactx.us/agendas.Nicole Bradford’s email is nicole.bradford@dailysentinel.com.