FORNEY, Texas — On Tuesday night, during a special-called work session, the Forney City Council discussed and approved five proclamations, totaling an amount not to exceed $234.8 million, to present to the bond council for an upcoming proposed bond election in November.
FORNEY, Texas — On Tuesday night, during a special-called work session, the Forney City Council discussed and approved five proclamations, totaling an amount not to exceed $234.8 million, to present to the bond council for an upcoming proposed bond election in November.
Five proclamations were approved during that meeting, which include separate bond initiatives for new and existing fire facility expansions, new and existing park expansion and construction, a recreation center, city road projects, and a joint library, community center, and senior center facility.
Included in Tuesday nights discussion were proposed tax rate projections, which are subject to change due to the presentations being conceptual, according to the City of Forney.
Even though there are $235 million in proposed projects on the table, in five years time, the tax liability per citizen would be lower as the population and tax base increases, according to Nick Bulaich of Hilltop Securities. The interest rate market has also shown to be more favorable with the slowing of the municipal bond market, he said.
Over the next seven years, the City of Forney's current I&S rate will decline "dramatically," according to Bulaich, by approximately .10 cents due to the City of Forney's current existing debt service declining.
Bulaich also says not all of the bonds will be immediately called, upon voter approval, but phased in throughout the project timelines through 2029.
Based on the projected tax base growth and interest rates presented Tuesday night, if all of the propositions are approved by voters in November, the city's current I&S tax rate of $0.1450 would see an eventual max rate increase from the bonds in 2031/32 at $0.3370. Including the city's current I&S tax obligations, the rate would hit a max combined rate of existing and new debt of $0.4820 in 2031/32.
The annual impact on $100,000 of taxable value, according to Bulaich, would be $337 and the monthly impact would be $28.08. For a residence valued at $300,000, the annual impact would be $1,011, or $84.24 monthly, at the height of the rate increase in 2031/32.
Half of Tuesday night's discussion centered around the proposed fire service expansion projects and construction, likely to be named Proposition A on the November ballot. The proposition includes $6.9 million to expand Fire Station No. 2, $25.6 million to reconstruct Fire Station No. 1 south of the railroad tracks, and $13.3 million for a proposed new Station No. 3 to respond on the west side of the city limits.
The city council unanimously approved Proposition A, in an amount not to exceed $45.8 million, to appear on the November ballot for voter approval.
Much of the council's concern was the possibility the fire service proposition failed at the ballot box and any subsequent ramifications — including the lowering of the city's ISO (Insurance Services Office) rating and reduced emergency response times.
"If you are asking me, if I'm comfortable with where we are at, no I'm not given the service demands that are on our department today," said Forney Fire Department Chief Derek Briggs. "We're behind, and we really need what we have on the table to move forward."
If the fire service proposition is not approved, the City of Forney cannot issue certificates of obligations to address the growing needs of the department for at least three years.
A move Briggs says would drop the city's ISO rating from an ISO Class 1 rating, the highest ISO rating held by a fraction of department's nationwide, to possibly an ISO Class 3 rating, according to information presented to the department by a consultant. The move also would make the Forney Fire Department the first department in the state of Texas to lose it's ISO 1 rating.
ISO ratings, according to Briggs, directly affect insurance rates for residential and commercial properties in the department's district. The higher the ISO rating, the more savings residents and businesses can expect to see on their insurance premiums.
A communities ISO rating is based on many factors including the Fire Suppression Rating Schedule which grades the communities fire department equipment and manpower, fire alarm facilities and the department’s ability to receive and handle fire alarms, and the community's water supply and distribution systems.
The Forney Fire Department went from a Class 4 rating in 2012 to a Class 2 rating and, in 2017, after the completion of Station No. 2 on the northside, improved to an ISO Class 1 rating.
"It would have a detrimental impact in our ability to deliver the same capacity of what we have today because the call volume is not going to go down," continued Briggs who said response times could drop to 10 to 15 minutes during peak call times depending on mutual aid availability and response.
According to Bulaich, the max projected I&S tax rate, with the existing debt plus only the fire service proposition, would be $0.2002 in 2027. With the current debt declining, the proposed tax rate increase for the fire service proposition alone would be $0.0552 — which is a annual impact on $100,000 taxable value at $55.20, or a monthly impact on the same value at $4.60.
Mayor Pro-Tem James Traylor compared the annual impact of the fire proposition alone to a full tank of gas, or approximately $150, on a valuation of $300,000. Traylor ultimately made the motion to approve the fire service proposition to be sent back to the bond council for presentation and approval to the Forney City Council in August 2022 so that the proposition could appear on the November ballot in accordance with election protocols.
The council also discussed including a calculator on the bond information website, once and if approved in August, to allow residents to select each proposition, enter in their home valuation, and receive a proposed tax rate impact.
The next proposition aimed at increasing parkland availability throughout the city, including the much discussed northside park and the expansion to the Forney Community Park. This proposition passed with an amount not to exceed $68.8 million — $48.8 million for construction of the new northside park and $20 million for Community Park Phase 2.
The recreation center proposition calls for $46 million to construct a 72,794-square foot recreation center at the site of the current Forney Parks and Recreation building at the Forney Community Park.
While the parkland expansion and recreation center both fall under the purview of the Parks and Recreation Department, both were presented in separation propositions to allow the voters to choose either both, one or the other, or neighter — the parkland being presented as more of a current "need," due to current youth sports league participation and lacking field space, and the recreation center being presented more of a "want."
The bond proposition for the construction of a joint library, community, and senior center calls for $21.5 million. While it hasn't been designated, it was mentioned during the workshop that the City of Forney recently purchased 14 acres northwest of the intersection of Farm-to-Market (FM) 548 and FM 741 which could potentially serve as the site for the 37,500-square foot facility, if approved by voters.
The final bond proposition calls for $52.7 million for several city-owned street projects. The projects include construction of Lovers Lane between U.S. Highway 80 and FM 740 at an estimated $7.6 million, an FM 548/Monitor Connector at an estimated $9.6 million, and a community park road extension at an estimate $5.6 million, and a grade separation, or bridge, at an estimated $29.9 million.
The grade separation project proposes either a bridge over, or a roadway under, the Union Pacific railroad — a site to be determined between Pinson Road and FM 548. A study has already been funded through the 2019 Kaufman County Transportation Bond. The intersection of FM 548 will likely call for a roadway under the railroad, according to City Engineer Karl Zook, but may be a separate project through the previous county bond and the state.
All propositions were approved by the council to be sent to the city's bond council before presentation to the Texas Attorney General's Office for language approval and ultimately approval by the council in August to call for and appear on a November ballot.
See below for both presentations and the council's workshop video regarding financing and project scopes as presented to council on Tuesday.
City of Forney Facilities Planning by inForney.com on Scribd
Forney Bond CIP Updated by inForney.com on Scribd
