At least $3M for Street Reconstruction, No more than $3M for City Hall & Police Station
“We have to start somewhere, and it’s time to start somewhere,” said Fairfield Councilman Arland Thill, concerning a Certificate of Obligation (CO) Bond that the City is considering.
“We’ve gone long enough,” agreed fellow Councilwoman Angela Oglesbee. “The time has come.”
In a conversation last week with the two council members and Mayor Kenneth Hughes, and later with City Administrator Nate Smith, details of a $6 million CO Bond package were explained so they could be shared with readers prior to being addressed on the agenda of Fairfield’s January 25th Council meeting.
Supporting documentation will also be posted online this week on the City’s website at fairfieldtexas.com.
Additionally, Mayor Hughes invites citizens to join him for ‘Coffee With the Mayor’ on Wednesday, January 19th from 7:30 to 8:30 a.m. at Dessert by MommaCakes on the courthouse square.
“It’s important to us to get people the information,” said Mayor Hughes. “Call me – or Angela, or Arland – call one of us. If you want to be on this committee, come on.”
The ‘To Build A Better Fairfield’ Bond package seeks to allocate at least $3 million on Street Reconstruction and no more than $3 million on constructing a new City Hall and Police Station (based on the preliminary design draft selected by the citizens’ City Hall Committee).
Street Reconstruction
“This isn’t just patching the streets,” said Councilman Thill. “This is an actual reconstruction of the street. This is going to be a brand-new street, and not just patchwork like it has been in the past.”
City Administrator Smith reiterated the point, stating “We can throw as much asphalt as we want on it, but if the stuff underneath is buckling and caving – and you see it all over town – it is throwing money at the problem, and not fixing it.”
Twelve streets are considered for reconstruction, including Adam, Davis, Dejay, Eagle Crossing, Kelly, Main Street, Oak (south of Hwy 84), Ronnie, South Bateman, South Cotton, Walnut Creek, and Williford.
Mayor Hughes said he had been questioned on borrowing money for streets, to which he said, “We have money to maintain streets. We just don’t have the large amount of money to build them.”
City Hall and Police Station
As to building a new City Hall and Police Station, these are currently housed in two separate locations.
City Hall is situated in a rented facility on the West side on town at 425 W. Commerce Street.
The Police Department and Municipal Court are utilizing a building on the East side of town in a city-owned building on the fairgrounds at 839 E. Commerce Street.
“In a lot of ways, they are out of compliance,” said Councilman Thill concerning the Police Department.
City Administrator Smith confirmed, stating that the Department is not compliant for juvenile interviews, nor has a room for any interviews.
Additionally, the Municipal Courtroom is a lunch table.
All agree that neither the Police Station, nor the current City Hall is ADA compliant.
“When we have staff meetings at City Hall, it’s out in the public,” Mayor Hughes added. “We have no private place to meet.”
Plus, due to the lack of space, City Council meetings are held at yet another location: the Fairfield ISD Career and Technology Education Complex at 960 E. Commerce Street (the former Navarro campus).
A new City Hall would bring everything together in one location.
Committee Recommended
“There’s no buildings available to even put City Hall in,” said Councilman Thill. “The only real option is to build something. And to be able to build it where we already have property is an awesome thing,”
The proposed new City Hall construction – centrally located in downtown at the former site of City Hall on Mount Street – is exactly what has been recommended by the City Hall Committee.
This Committee was formed following a Special Election in November of 2019 in which voters defeated a Proposition to approve the issuance of CO Bonds that was to fund several city projects, including the acquisition and renovation of an older building for use as a City Hall.
The group included at least five citizens, one councilman, and the mayor.
“The City Hall Committee, they got together and did all that work,” said Councilwoman Oglesbee. “We want to be able to use that work and the resources.”
“They have done a phenomenal job,” said Mayor Hughes. “The new City Hall – I promise you – is very well thought out. Now it’s time to move forward.”
Better Now Than Later
Mayor Hughes added, “We hope to be able to use some of these great interest rates that are going on right now, in order to get the biggest bang for our buck.”
“And, we know interest rates could possibly start going up in March,” said Councilman Thill, explaining the push to proceed with approving the CO Bond during next week’s Council meeting. “The longer we postpone it, the higher the interest rates are going to get.”
“And who knows how much materials are going to cost two years, or one year from now,” added Thill.
“Inflation, inflation, inflation,” said City Administrator Smith, confirming the urgency.
Affordable for Taxpayers
“No one wants to raise taxes. Everyone hates that word,” said Councilman Thill. “But it’s really going to be a miniscule amount of money per month.”
“People may not realize, but our last budget we passed, lowered the tax,” said Mayor Hughes.
Fairfield’s tax rate is 0.460137 for 2021; currently the lowest for Cities in Freestone County, and most of the surrounding area.
According to calculations by City Administrator Smith, the City estimates only a $3.90 monthly increase per $100,000 of taxable property value would be required to fund this project.
“We are in a really good spot now, because our last, tax-supported debt payment will be paid off this summer,” said Smith. “The new payment on this $6 million would not go until 2023.”
In other words, the new debt would simply replace the old debt.
“We are adding a little bit,” City Administrator Smith continued. “We structured it to replace a lot of the debt. That way, we are not putting additional burden on taxpayers.”
Affordable for the City
Some may ask, if our old debt will be paid off this year, why would the City want to take on additional debt?
“A healthy amount of debt is a good thing,” said Councilman Arland.
“If you don’t have debt, it lowers your bond rate,” said Mayor Hughes.
“Bigger cities like this one has to have some tax-supported debt,” said City Administrator Smith.
He explained that it is similar to an individual having a credit card, and making regular payment, in order to support a good credit score.
“It’s the same principle being used for ratings agencies,” said Smith.
Recent Growth
“Fairfield should be proud that we are in the position where we can do this,” said Councilman Thill. “A lot of cities right now aren’t able to do things like this.”
“We have two new businesses that are projected to bring over $200,000 in Sales Tax,” said Mayor Hughes, referring to Tractor Supply that opened in December and the Travel Plaza and Whataburger expected to open in March.
“Whataburger is going to be busy,” agreed Councilman Thill.
“We have done very well, all through COVID, and other cities haven’t,” said Mayor Hughes. “Our sales tax is up, month after month.”
“I shop local,” said Councilwoman Oglesbee.
“And that truly is the reason,” said Mayor Hughes. “People do shop local.”
City Administrator Smith added that the Fairfield Industrial Park has added two new clients, and Fairfield Economic Development is currently speaking with a third. “If we weren’t growing, this wouldn’t make sense,” he said.
Supporting Growth
“As we try to bring more business to Fairfield, it’s important to have a good first impression when you come to town,” said Councilman Thill.
“Ask any realtor; the first thing they look at is the streets,” said Mayor Hughes.
“And, the school,” added Councilwoman Oglesbee.
“And, whether you’re a business, or someone just moving here, you want to know you’re safe, that there is a good police department,” said Councilman Thill.
Additional Concerns
City Administrator Smith compiled information based on some of the questions asked by Fairfield citizens. At least two referenced the legality of the proposed CO Bonds:
–You can’t use a CO to build City Hall. The legislature outlawed that.
The legislature did pass HB 1869, which narrows the scope of what cities can use Certificate of Obligation funding for. In it, public safety structures are allowed to be built with COs (Certificate of Obligation) and any structures that are physically attached to the facilities. We have planned to build one building all along that will house police and city services in the building.
–You can only use COs in emergencies. The law says so.
That is half correct and often used as a half-truth. You can use COs in emergencies, but you can also use them for other reasons, such as the building of public safety structures.
For more information, including documentation and street maps, visit the City’s website at fairfieldtexas.com.
Stop by for a visit Wednesday morning with Mayor Hughes for coffee and a conversation.
Or, call City Administrator Smith at Fairfield City Hall at 903-389-2633.
