Taking advantage of low interest rates and maturing long-term debt payments, the city of Selma is ready to approve a certificate of obligation (COO) bond for a replacement fire department aerial truck, construction of a public service training facility, and much-needed road construction.
As it is structured, the $9 million COO issuance will not raise taxes on Selma residents or businesses, according to City Administrator Johnny Casias.
“We are in a very unique situation … with long-term debt payments about to mature and retire,” Casias said. “Adding the $9 million COO issuance, we would not impact our interest-and-sinking property tax rate. We would be able to issue this and not have to increase our property tax rate.”
Council was expected to give approval to move forward on the COO issuance, during its Feb. 10 meeting.
The city needs a replacement ladder truck for its current vehicle, Casias said. While the 2004 aerial fire truck is still in good shape, Casias said it does not meet many of the national standards with regard to safety components and emissions. While there is no standard “replacement” time frame, many departments shoot for a 12-15-year replacement.
“That tends to be the point when new technology improvements are worth upgrading and maintenance cost intersect starts increasing,” he added. The preliminary price tag on the new unit is $1.5 million.
The city is still seeking a location for a public safety training facility for its police and fire departments. The facility would include a three-story burn tower, a burn lab, confined space, an outdoor classroom, and an indoor shooting range. Within this $4.5 million price tag, the city would add about 1,500 square feet to its existing fire station, Casias said.
The third component of the bond involves roadway improvement. Earlier, the city was able to land $2.9 million of future Metropolitan Planning Organization funding for the pedestrian sector of the southern leg of Lookout Road. Casias said a portion of the bond would be applied toward the road portion of construction.
Roadwork would be performed on Lookout Road and the city’s portion of Wiederstein Road in the Live Oak Hills subdivision, a combined cost he estimates to come in around $3 million.
All three projects have been on the city’s radar for awhile now. With the long-term debt payoff and current low interest rates, the city felt the time was right to push forward.
“It’s something we would be considering doing a year from now,” he said. “But with interest rates being at historic lows … The Federal Reserve has put out comments that they expect three to four interest rate (increases) in the coming year. We just felt the time was right.”
Mayor Tom Daly praised his administration for taking action when it did.
“To jump on an opportunity like this is a smart idea,” Daly said. “I think it’s great that this city can do this at this time with no tax increase for anyone.
“These projects, which we were going to get done anyway, are a necessity to the city. I think this is fantastic and that we need to jump as quick as we can,” Daly added.
Selma residents shouldn’t expect the three projects to happen overnight. The aerial fire apparatus is an 18-month build once a design is finalized.
The city still has to secure property for the public safety facility before construction can begin there. And the Lookout Road-Wiederstein Road work will be paired with the MPO money, which does not come out until the 2023 MPO funding cycle.
Casias called the council “very forward-thinking” for giving his administration the go-ahead on the bond issuance and “for saving the taxpayers’ money at the same time.”
