Move is next step in funding five-year, $240 million roadway improvement program
The Round Rock City Council is considering issuing $30 million in bonds as the next step in implementing the City’s five-year, $240 million roadway improvement program.
The Council voted unanimously Thursday, Feb. 28, to publish a notice of intent to issue the Certificates of Obligation (COs), a property tax-backed bond. Other funding sources for the five-year program include the half-cent, Type B sales tax revenues; state and federal funds like those recently received through the Capital Area Metropolitan Planning Organization (CAMPO); and partnerships with private developers.
The City Council will also consider Roadway Impact Fees, which would be paid by developers, into the funding mix during another item on Thursday meeting’s agenda.
The projects targeted for CO funding include:
- Kenney Fort Boulevard extension from Forest Creek Drive to SH 45
- Gattis School Road widening from A.W. Grimes Boulevard to Double Creek Drive
- Gattis School Road widening from Via Sonoma to Red Bud Lane, including improvements to the intersection at Red Bud Lane
- University Boulevard/Chandler Road improvements from A.W. Grimes Boulevard to SH 130
- Engineering for the extension of Wyoming Springs Drive from Creek Bend Boulevard to FM 3406
The Kenney Fort Boulevard, Gattis School Road and University Boulevard projects have already been appropriated $29 million in funding from CAMPO grants.
Issuing the COs is projected to increase the City property tax rate by 1.5 cents in 2020.
The City is planning to issue additional COs over the next five years, to total $140 million, to help fund the five-year improvement program. Issuing the COs in phases helps mitigate the impact to the property tax rate; as the City grows, there will be more property owners – both commercial and residential – contributing toward the debt repayment.
Other projects targeted for improvements include Deepwood Drive, Logan Street, McNeil Road, North Mays Street, Oakmont Drive, Old Settlers Boulevard, Red Bud Lane, RM 620, the SH 45 Frontage Road and additional portions of Kenney Fort Boulevard and Gattis School Road.
All the potential projects are part of the Transportation Master Plan, which identifies $1.2 billion in needed improvements to accommodate Round Rock’s ultimate build out, adopted in October 2017.
Issuing COs requires 31 days notice. If approved by the City Council, the debt would not be sold until April 25. Posted: February 27, 2019