Bay City Tribune

City council began the process to issue $3.5 million in certificates of obligation to fund several capital improvement projects citywide - including the completion of Nile Valley Drive between Texas 60 and FM 2668.

At its regular meeting Thursday night, council authorized publication of its intent to issue the certificates - that also will pay for drainage, airport, parks, civic center, recycling center and service center improvements, plus Hazmat equipment - on April 22.

Money from the 20-year COs will be available in May and will be paid from the property tax-supported general fund - with some coming from the city's water and sewer funds - and there is more than sufficient cash flow to handle the debt, City Finance Director Gary Gratzer told council.

"There is cash flow in the current fund to pay this," he said.

After the city boosted its reserve fund from $400,000 in 2007 to nearly $1.6 million today, Gratzer said the city's general fund is in "great health from a budget standpoint."

While sales tax revenues have lagged over the past year, Gratzer said that loss has been offset by money from new city franchise taxes.

Gratzer affirmed councilman Joe Enoch's point that the city will retire a large debt load in about three years, with the finance director saying that will free up about $1.375 million for the city.

"We have a very well thought out plan," Mayor Pro Tem Brent Marceaux said of the long-range capital projects package.

"This is big," Enoch said. "The strategic-planning process takes care of the city's infrastructure and facilities. This is the right direction for Bay City."

Gratzer said the projects will be addressed in the next three years and are part of the citys master plan.

"And while most area cities have a tax rate of around 70 cents (per $100 valuation), were at 53 (cents)," he noted.

Financial advisor Jim Gilley, with Houston-based Coastal Securities, Inc., praised the city's "fiscal prudency," saying it was valuable in the rating process. "I can't emphasize how important that is. I want to commend council for its conservative fiscal tax increases."

Marceaux asked how the bonds would sell in the present bond market.

"The market is better at this time-buyers are more confident (this year)," Gilley replied.

Gilley said the city's COs should draw a low-interest rate, adding that the city qualifies for bond insurance and the best possible triple-A rate.

Boosting the Convention & Visitors Bureau's operating expenses from $137,000 to $197,000 was the main part of a three-item budget amendment that Gratzer recommended and council approved. Hotel tax monies help fund CVB's stepped-up action plan that includes more tourism advertising, concerts and services.

In other action, council:

N Tabled until the March 25 meeting, adoption of a state water conservation plan. Interim city attorney William Pendergraft received the proposed plan just before the meeting and suggested council hold off on the plan until he can review the document.

N Heard Bay City school superintendent Keith Brown praise the city's part in the joint city-school project to build the new Blackcat girls softball field on the southern part of the Bay City High School campus.

Each council member - and Public Works Director Clark Young - received an appreciation plaque from Brown and an autographed softball from softball team members, who brought a splash of color to the meeting with their gold jerseys.

N Received a presentation about CVB goals for the 2009-2010 fiscal year. CVB efforts over the past few years, as part of the overall Bay City-Matagorda United marketing plan, has helped get Bay City and Matagorda County regular exposure in the state's top magazines, said Mitch Thames, president of the Bay City Chamber of Commerce and Agriculture.

N Heard Charles Allison introduce Allison Benefits Consultants. Allison explained the diverse services his firm provides and his broad training in financial services.Members of the Bay City Blackcat girls softball team added a splash of color to the start of councils regular meeting Thursday night,