Planning workshop examines city’s future

Rusk City Council members held a city planning workshop Thursday at the civic center on Euclid Street.

City Manager Mike Murray presided at the brain storming session.

He asked the council, “Where do you want the city to be in five and 10 years?”

Mr. Murray added, “It is my understanding that the city council would like to continue to keep taxes low and even continue to try and lower the property tax rates. I personally believe that a target of under 50 cents on $100 valuation is where the city needs to be. Currently the tax rate is 48.25 cents. If we could continue to lower the tax rate a small percentage every year I think that the citizens would appreciate it and we could continue to maintain current levels of services or even improve on them.

“Water and sewer rates along with other user fees are a slightly different story. While not everyone pays taxes, everyone pays water and sewer bills and user fees such as building permits. These services should, at the very least, pay for themselves but have traditionally been viewed and called an enterprise fund, meaning that the city “makes money” on them in order to supplement the general fund,” Mr. Murray said.

Mr. Murray continued that he believes that the city should not overcharge the citizens.

“One way to gauge this is to compare Rusk’s utility rates with those charged in other cities. However, we need to consider incrementally adjusting the rates regularly in order to keep up with inflation,” Mr. Murray said.

He suggested that the council look at the city’s bond capacity and plan to take advantage of available grants that will either pay for utilities completely or significantly leverage the monies that are available.

Currently the city bonds include $360,000 certificates of obligation (CO) issued in 2004. The city refinanced $2,775,000 in bonds in 2005 and the 2007 certificate of obligations was $1,250,000. Total bond indebted is $4,385,000.

There is $185,000 remaining on the 2004 CO. That CO matures on Feb. 15, 2015 and the city will pay $40,858 this year on that bond.

The 2005 CO has $1,820,000 remaining debt. It matures Feb. 15, 2018. The city’s payment on this bond is $281,995 per year.

The 2007 CO with $925,000 remaining debt will mature May 15, 2017. Payment on this debt is $159,605 annually.

Total remaining debt for the city is $2,930,000 with a total debt payment of $482,458 due in 2010.

Mr. Murray said if the city refinances its remaining debt at four percent for 20 years and borrows an additional $3,070,000 for a total of $6 million, the bond payment would be $436,296 per year, which will be a savings of approximately $46,162 per year in payments.

He discussed several areas where the city could use borrowed money.

The council discussed the possibility of constructing a new city hall. Several suggested sites were discussed by those attending. Mr. Murray anticipates that the city could use $500,000 of its own money and secure a grant to finish the project.

Other anticipated projects include $500,000 each for streets, a new city library, baseball fields, water and sewer.

In the event the city hall is moved, the current building could be converted into a police station or municipal court building.

He reminded the council that Lake Columbia is becoming a reality. “We will have to pay our share of the construction, which is five percent. We probably will have to borrow that money.”

He suggested that the city dig up all water lines and replace them before repaving streets.

Neill Holcomb, director of streets, reported that replacing the lines beneath the streets would not be feasible because of interference from sidewalks. The city is currently using a new street repair system.

“We buy hot mix and the street is as good as new after we have gone in and repaired a broken water line,” Mr. Holcomb said.

New water lines are being installed on Loop 343 which will help get water throughout the city.

“Approximately eight percent of the city’s water is excessive. Currently we have more water than we need,” Mr. Murray said.

Councilman Kris Morgan suggested that the council think about building a lake. “Jacksonville pumps its excess water into the lake. Then they have a beautiful lake with a place to build homes.”

Attending the meeting were Mayor Angela Raiborn; Councilmen Morgan, Walter Session, Don Jones and Sam Florian; City Manager Murray; and City Secretary Fran Wendeborn. Councilman Donald Woodard was absent.