HomeMy WebLinkAbout1958 Bond Election InformationCITY OF COLLEGE STATION
January 10, 1958
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TO THE CITIZENS OF WARD N0, I3
The City of College Station was incorporated in 1938 with no assets.
The first City Council borrowed $1,000 from the bank to begin operations;
and if I remember correctly, the council was personally responsible for the
note.
In 1944, the gross annual income of the city was:
General Revenues ................ $ 10,000
Electric Revenues ............... 29,000
Water Revenues .... 20.000
Total $ 59,000
In 1957, the gross annual income had increased to:
General Revenues $ 68,000
Electric Revenues ............... 180,000
Water & Sewer Revenues .......... 107.000
Total $355,000
In 1957 the total assets of the city amounted to approximately
$979,500, and its indebtedness amounted to $508,000.
Apparently the city has gained approximately $470,000 in real
value since 1938. However, the City of College Station is presently
confronted with more serious financial problems than at any other time
in its existence. These problems are primarily caused by:
1. A rapid population growth. Our population in 1938 was 2040
and is now slightly more than 8000 - exclusive of students.
It is predicted that we will have a population of approx-
imately 20,000 by 1980. i4®o®
2. A great increase in unit costs of both labor and materials.
For example, our common labor costs have gone from 60¢ an
hour to $1.10 in the past ten years, and our material cotes'
have increased from 4.0% on some items, to 300% on other'items.
3. A property valuation and a tax rate that is far bblow that of
other cities of comparable size. Our present ssessed value
of property in College Station is $3,800,000 and our tax rate
is $1.00 per $100 valuation. Our tax rates and utility rates
have remained substantially constant for the past ten years
even though our costs have gone up as indicated in Item 2.
The Consolidated School has thr, city property assessed for
approximately $7,600,000. Ten towns in Central Texas with
comparable population show an average assessed value of
approximately $8,000,000, and a tax rate of $1.74.
Let me now list and discuss briefly some of the major problems
that are facing the city.
1. The State Fire Insurance Commission has notified the city
that we should erect a 300,000 gal. water tank in addition
to the present college tank, so as to provide adequate water
pressure and thereby maintain favorable insurance rates. It
is estimated that such a tank and connecting water mains
would cost around $100,000.
2. The State Fire Insurance Commission has also stated that the
city has become so extended that we need to build another fire
station near the intersection of Highway 6 and Jersey Street.
Such a station and necessary equipment would cost approximately
$80,000. Since our city hall is too small, probably a more
economical move would be to combine the fire station with a
city hall. If this is done, the combined building and equip-
ment would cost approximately $125,000.
3. The State Highway Department is now preparing plans for an
underpass at the hazardous intersection of Sulphur Springs
Road with the railroad tracks. The cost of the city's por-
tion of this project will be approximately $60,000.
4. Our street problem is the most pressing and the most costly
one facing us. Most of the major streets are narrow and
completely worn out. The cost of maintenance is becoming
prohibitive, and it is necessary that some major street
program be started in the near future.
As I see it, we have the following possible feasible solutions of
the street problem.
1. We can excavate and rebuild the entire 34 miles of street,
with a good base, an asphalt surface, and curb and gutter.
This solution would, of course, give us the best drainage
and the most lasting streets, and would cost perhaps
$1,600,000. An engineer's estimate shows a cost of roughly
$12.00 a linear foot of street for this type of construction.
The property owner would be exp.cted to pay approximately a
$1.50 a foot for the curb and gutter plus an additional $3.00
per foot for a third of the cost of the pavement. Through a
bond issue the city would pay for one -third of the pavement
in front of private property, plus the street intersections
and park areas. To adopt this proposal would mean a bond
issue of approximately $400,000 to raise the money for the
city's part, and this would mean an increase of about 100%
in our present city tax. Actually it would mean that we
would have to double our present assessments and keep our
tax rate at $1.00, since our present assessments are so
low that we could not issue an ad valorem bond issue of the
required amount without paying a prohibitive interest on the
bonds. Such a tax increase would be needed solely for the
street program.
2. We can excavate and rebuild the major streets in the manner
described above. Under this program such streets as College
Main, Walton Drive, Jersey Street, Francis Drive, Kyle Street,
East Dexter to the Knoll, Park Place, and other major streets
would be constructed with curb and gutter. All streets leading
into the major streets would be resurfaced as current city funds
become _avai.l_able. In other word's Me present plan"o Fie city
ty
and property owner each paying a third of the cost of resur-
facing the existing street would be continued for secondary
streets. The direct cost per front foot to property owner
not living on a major street would be about 70¢ a foot at the
time the street was resurfaced.
Under this second proposal the city would probably need a bond issue
of approximately $150,000 to pay its part of the cost of the major street
program. This would mean an increase of roughly 40% in the city tax.
3. We can widen and resurface all,streets at their present grade
and elevation (without curb and gutter) at a cost of roughly
70¢ a front foot to the property owner. Under this plan the
city would need a bond issue of probably $150,000 to pay for
its part of the program.
Since we are soon going to be forced to spend a considerable amount
of money to comply with the requests of the State Fire Insurance Commission
and to assist in the construction of the railroad underpass, I feel that
Plan No. 1 would be too costly to undertake at this time. I personally
feel that Plan No. 2 is the one that we should undertake.
It is the responsibility of the Mayor and City Council to decide
upon a street program for the city and to submit this plan for your ap-
proval through a bond election. It would, however, assist us in our
decision, if you would indicate your choice of road program on the enclosed
card, and return it immediately.
Sincerely,
J. A. Orr
Councilman for Ward I
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