Post on 19-Mar-2022
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DiningPresented by: Karen Rhodes-Whitley, MPA, CPM
Director of Budget & Research
City of Plano, Texas
Legacy West - Plano
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• Located 20 miles north of Dallas
• Population of 287,000
• Explosive growth since 1980’s
• Started transition to a mature City– Still have land for commercial development
– Last several years moved in Toyota Headquarter, Liberty Mutual, Chase Bank to Legacy West Area
• Combined budget of $1 Billon with a CIP of $305M
• Approximately 2,400 employees
• Heavy reliance on property tax and sale tax
About the City of Plano
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The Road to Victory – A Capital Bond Program
Plan
City’s infrastructure
• Streets
• Major Water and Sewer Projects
• Flood Protection (Drainage)
• Traffic Signals
City facilities
• Police & Fire stations
• Libraries
• Convention centers
• Park and Recreation facilities
• Cultural facilities
Acquisition of specialized equipment and property
• Vehicles
• Computer hardware and software
• Open space
Economic development initiatives
• Investments in infrastructure for economic development
• Financing
• Matching funds
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Bond Referendum 101:
• A Bond Referendum is a voting process that gives voters the power to decide if a local government should be authorized to raise funds through the sale of bonds.
– A General Obligation (G.O.) bond is long-term borrowing instrument in which the local entity pledges its full faith and credit (taxing power) to repay over a specified term.
• The Bond Referendum must specify general categories of capital projects for which bond proceeds may be used.
– Example: Street Improvements, Public Safety Improvements, Park Improvements, etc.
– Due to the lengthy process involved in identifying, designing and implementing the specific projects may change over time.
• Bond Referendums ONLY provide Authorization!!
– Decisions on projects are made year to year by City Council with input from Citizens and City Staff
• Propositions will be listed A, B, C etc. along with dollar amount and purpose on the ballot.
– THE ISSUANCE OF $90,270,000 GENERAL OBLIGATION BONDS FOR STREET IMPROVEMENTS AND THE LEVY OF TAX IN PAYMENT THEREOF
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Bond Referendum 101: Continued
• How are projects determined?
– Projects included within the bond referendum are determined by City Council during regular work sessions after receipt of input from various City Boards and Commissions and from the public at several public hearings within the City.
› Planning & Zoning, Park Board, Senior Citizen, CAC, etc.
› New: Bond Referendum Citizen Advisory Committee
• If a Proposition does not pass?
– Can request again on next election
– Cannot issue Certificates of Obligation within three-years for the same purpose.
• The City of Plano is on a four-year cycle for Bond Referendum elections.
– Exclusion 2019 Bond Referendum for Capital Maintenance Projects only.
• Staff can only educate regarding projects listed on a Bond Referendum.
– Cannot be For or Against any project listed on the referendum
• All materials and community outreach must be communicated in both English and Spanish.
– Per State Law
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Bond Referendum 101: Continued
• Revocation of Bond Authority
– De-authorization of bond authority previously approved in a Bond Election
– 2013 BR – Revocation of previously authorized GO Bonds for the Creative and Performing Arts Center authorized in 1998
• Financial Impacts:
– Tax Rate Implications
› Based on assessed property valuation, if all propositions are approved, what would be the maximum tax rate impact for the average homeowner?
› Currently, one-cent of the tax rate equals $4.6 million
› Proposed tax rate is 44.82 cents per $100 of assessed property valuation
› Does not mean your tax rate will increase!
– CIP Coming On-Line
› Calculation of operating costs associated with the project
› Example: Cannot open a Fire Station without the Fire Personnel and equipment for the Fire Station
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YearTotal
Props.
Total Proposed
Amount
Props.
Approved
New Authority
Approved
Projected
Tax Rate
Change
Actual
Tax Rate
Change
2021 7 $363,965,000 7 $363,965,000 +2.13 TBD
2019 3 $44,665,000 3 $44,665,000 0.00 0.00
2017 6 $224,120,000 5 $220,620,000 +0.43 0.00
2013 5 $98,313,000 5 $98,313,000 +0.66 0.00
2009 7 $128,622,500 7 $128,622,500 +3.29 +1.35
2005 6 $144,802,000 6 $144,802,000 +1.54 0.00
2001 9 $128,015,000 8 $112,415,000 +1.59 0.00
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1.00 = One Cent
Bond Referendums: Past 20 Years
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Outstanding Current Authority
Proposition
Original
Approved
Authority
Issued to DatePlanned 2021 GO
Issue
2013 Public Infrastructure
Improvements $15,000,000 $13,000,000 $2,000,000
Total 2013 Authority $15,000,000 $13,000,000 $2,000,000
2017 Street Improvements $90,270,000 $69,664,500 $20,605,500
2017 Public Safety Facilities $29,000,000 $27,000,000 $2,000,000
2017 Park Improvements $78,850,000 $71,185,000 $7,665,000
2017 Library Facilities $10,000,000 $4,500,000 $5,500,000
Total 2017 Authority $208,120,000 $172,349,500 $35,770,500
2019 Street Improvements $18,750,000 $0 $18,750,000
2019 Park Improvements $17,890,000 $0 $17,890,000
2019 Existing Facility Improvements $8,025,000 $2,265,000 $5,760,000
Total 2019 Authority $44,665,000 $2,265,000 $42,400,000
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Scenario
2025
Tax Rate
Tax Rate
Change
Current Project List = $364M 46.95 2.13
Alternate Scenario (No Impact) = $181M 44.82 0.00
Alternate Scenario (No Bonds) = $0 42.77 -2.05
2021-22 2022-23 2023-24 2024-25
Assumptions:
Existing Property Tax Base $46,564,855,153 $47,788,003,705 $49,508,763,779 $50,804,939,054
Annual Tax Base Growth 0.00% 1.00% 2.00% 2.00%
New Property Added to Tax Base 750,000,000 750,000,000 300,000,000 300,000,000
Total Tax Base: $47,314,855,153 $48,538,003,705 $49,808,763,779 $51,104,939,054
Average Annual Interest Rate on New Debt: 3.00% 4.00% 4.00% 4.50%
O&M Tax Rate (1.00 = One Cent) 33.72 33.72 33.72 33.72
Project O&M Expenses < O&M Revenue Growth Yes Yes Yes Yes
$0.00
1.00 = One Cent Avg Plano Home = $378,396
2021 Bond Referendum: Financial Impact Scenario Summary Sheet
Referendum Impact to
Average Plano Home
$67.71
-$65.17
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Project 2021-22 2022-23 2023-24 2024-25 Total
Park and Recreational Facilities
Community Park Renovations 5,285,710 5,225,000 5,225,000 5,225,000 20,960,710
O&M 22,500 22,500 22,500 22,500 90,000
Neighborhood Park Renovations 2,264,290 2,250,000 2,250,000 2,250,000 9,014,290
O&M 18,750 18,750 18,750 18,750 75,000
Trail Replacements 1,625,000 1,625,000 1,625,000 1,625,000 6,500,000
O&M - - - - -
Park Improvements 1,250,000 1,250,000 1,250,000 1,250,000 5,000,000
O&M - - - - -
Recreational Trails 1,250,000 1,250,000 1,250,000 1,250,000 5,000,000
O&M 25,100 25,100 25,100 25,100 100,400
Maintenance Facility - 1,100,000 6,000,000 6,000,000 13,100,000
O&M - - - - -
Park Restroom Replacements - 1,325,000 1,900,000 1,575,000 4,800,000
O&M - 7,500 7,500 7,500 22,500
Irrigation Renovations 1,805,000 1,805,000 1,805,000 1,805,000 7,220,000
O&M - - - - -
Athletic Field Improvements 375,000 375,000 375,000 375,000 1,500,000
O&M - - - - -
Lighting Replacements 990,000 4,950,000 - - 5,940,000
O&M - - - - -
Median Renovations 375,000 375,000 375,000 375,000 1,500,000
O&M - - - - -
Oak Point Recreation Center Exterior Lighting 80,000 - - - 80,000
O&M (1,545) (1,545) (1,545) (1,545) (6,180)
Courtyard Theater Roof 600,000 - - - 600,000
Plano Center Roof - 720,000 - - 720,000
Total Park and Recreational Facilities Authority Needed 15,900,000 22,250,000 22,055,000 21,730,000 81,935,000
Total O&M 64,805 72,305 72,305 72,305 281,720
TO BE DISCUSSED BY CITY COUNCIL - MONDAY FEBRUARY 8, 2021
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2021 Bond Referendum Citizen Advisory Committee
(Ad Hoc)
• Jim Watkins – Appointed by Mayor LaRosiliere
• Tracey Dry – Appointed by Mayor Pro Tem Prince
• Vinny Minchillo – Appointed by Deputy Mayor Pro Tem
Ricciardelli
• Janet Stovall – Appointed by Council Member Tu
• Craig Perry – Appointed by Council Member Grady
• Connor Barron – Appointed by Council Member
Williams
• Rohit Joy – Appointed by Council Member Bao
• Magesh Kandavadivel – Appointed by Council
Member Smith
• Rick Grady – Council Liaison
• Shelby Williams – Council Liaison
• Karen Rhodes-Whitley – Staff
Liaison – Director of Budget & Research
• Victoria Huynh – Legal Liaison –Deputy City Attorney
• Other staff members
– Jason Gregorash – CIP Budget
Administrator
– Jennifer Morvant – Budget Analyst II
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2020-21 Bond Referendum Citizen Advisory Committee
Next Steps • Aug 19, 2020 – First meeting & Educational Presentations
• Sept 16, 2020 – Discussion regarding how staff develops project listings by Streets,
Parks & Rec and Facilities
– BRCAC – Any additional recommendations for project inclusion
– Discuss preliminary staff proposed projects
• Oct 21, 2020 – Review all proposed Parks & Recreation Projects
• Nov 18, 2020 – Review all proposed Facility and Other Proposed Projects
• Dec 16, 2020 – Review all proposed Street Projects & Finalize Committee
Recommendation for City Council submittal
• Dec 18, 2020 – Recommendations from all Boards & Commissions due
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RESIDENTIAL & COLLECTOR STREET
RECONSTRUCTION
Type Reconstruction/Replacement
Projected Cost $ 24,000,000
Projected O&M $ N/A
Reconstruction/replacement of residential and collector
roadways throughout Plano.
Project Cost Need Option 1 Result Option 2 Result Option 3 Result
Residential and Collector Street Reconstruction
$2MM per Mile 12 Miles $24,000,000 12 Miles $20,000,000 10 Miles $16,000,000 8 Miles
Russell Creek Drive Reconstruction
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Roof Replacements
$ 3,556,400
• Parr Library
• Fire Station 4
• Courtyard Theater
• Plano Center (Atrium)
• Fire Station 3
• Day Labor Center
• Fire Station 7/old PD substation
• Haggard Library
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Roof Replacements
$ 3,556,400
• Parr Library
• Fire Station 4
• Courtyard Theater
• Plano Center (partial)
• Fire Station 3
• Day Labor Center
• Fire Station 7/old PD substation
• Haggard Library
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Key Bond Program Questions
Can I Afford It? Do I Need It?• How much is the project really going to cost?
• How much of your tax rate is committed to debt service?
• Can you afford to issue existing authorized bonds?
• Do I have a sufficient tax base
• Can you afford the cost of operating your existing facilities?
• Can you afford the operating cost of new facilities
• Are construction prices up or down
• What are the interest rates and where are they going
• Does the project make sense
strategically?
• What is the driving force behind
the project?
• What is the desired outcome of the
project?
• Is the proposed project the best
way to achieve the desired
outcome?
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• Decide early on in the process if you are going to involve citizens in the process
• Importance of relationship with Bond Counsel
– Process proposition ordinance
– Set the language – do not limit – make broad statements
› Example – “The Issuance of $11,338,000 general Obligation Bonds for Public Safety Improvements”
– Assist with Bond Pamphlet and Video Language
• Ordering a Bond Election
– State of Texas Election Laws
– City of Plano has to be no earlier than January 23rd and no later than February 15th
• Remember to notify citizens regarding the operating cost coming on-line
– Can’t open a Fire Station without firemen
• State law says you must produce information in English and Spanish
Important Points to Remember
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• Timing of the Election
– Election year of City Council Members
• Promotion of the Bond Referendum
– Cannot be “for” or “against”
– Present facts only
• Social Media and the part they play
• Mass Marketing – Pamphlets
• Budget Video
Important Points to Remember