Some Local Voters Here Facing an $8 Million Question
Schulenburg voters will decide whether to approve an $8 million bond on election day, Nov. 3. If voters approve it, most of those funds would be used to rehabilitate the downtown City Hall.
The City initially tried funding the project using certificates of obligation (COs). This method of financing does not require voter approval unless enough registered voters sign a petition asking for an election. Local property owner Chad Zimmermann successfully organized a petition earlier this year.
On Aug. 17, the City Council voted 3-2 to move forward with the special election. As a result, the City is now asking citizens whether to take on the debt through general obligation bonds.
Prior to the petition, the City Council capped spending on the city hall renovations at $7.5 million.
According to City Administrator Tami Walker, “Once the cost of issuance was paid for through the bond, the remaining funds could go toward police department improvements, water well, wastewater plant improvements or applying the funds towards principal.”
Walker estimated the cost of issuance at $260,000. That would leave less than a quarter million dollars for the other projects.
If approved, terms of the bond stipulate a 20-year repayment period. The City believes the interest rate will come in at five percent. Based on those numbers, the increase to property taxes would amount to $164.94 annually per $100,000 of property value. For a $200,000 home, the increase would be $329.87 a year. For a $300,000 home, the increase would be $494.81 a year.
The total cost to finance the bond, including principal and interest, would be about $12.8 million.
Over the past few weeks, the City has made several posts to its Facebook page with information about the bond. But it has prohibited the public from commenting on the posts. The Record asked Walker about the City’s decision to limit discussion on social media.
“To keep it neutral,” she said. “As the City Administrator, I was asked to provide information on social media and by law in a neutral platform. The city’s Facebook page posts related to special election information is maintaining a consistent approach, which is important when posting about an election.
“We all have opinions,” she continued. “However, misinformation has now been generated towards the city, city leaders, management, and personnel that have nothing to do with the bond. State law provides citizens the opportunity to voice concern or praise at all council meetings, which are added to the official minutes. City Hall also has an open door policy and elected officials are accessible to the residents.”
Walker said that “public opinion on suggestions otherwise confuse the citizens on what the bond election is for.”
“Regardless of the outcome, City Council will be responsible for evaluating the options available and other funding sources allowed by state law,” she said. “My responsibility is to carry out the decisions and directives made by City Council. I recognize that there may be some misunderstanding regarding the process, and believe it is important to clarify the distinction on Council’s role and administrative responsibilities in implementing those decisions.”