LLANO COUNTY MUD _1 ROAD PROJECT PROJECTED COST

Document Sample
LLANO COUNTY MUD _1 ROAD PROJECT PROJECTED COST Powered By Docstoc
					LLANO COUNTY MUD #1
ROAD PROJECT REVIEW
n   PURPOSE
     n DISCUSS POSSIBILITY OF COMPLETING REMAINING ROAD
       UPGRADE
     n PROVIDE FACTS TO INFORM COMMUNITY TO MAKE
       DECISION ABOUT PROCEEDING TO POTENTIAL BOND
       ISSUE
    n   VISION FOR FUTURE
         n OPPORTUNITY TO DREAM ABOUT WHAT OUR COMMUNITY

            COULD BE
         n LIKE OTHER DREAMERS (WATER PLANT,SEWER TREATMENT,

            RETURN WATER), LONG TERM IMPROVEMENTS BENEFIT
            FUTURE GENERATIONS
         n PAST LEADERS OF THE COMMUNITY HAVE SERVED TO MAKE

            BLUE LAKE A PREMIER LAKE COMMUNITY
LLANO COUNTY MUD #1
ROAD PROJECT REVIEW

n   HISTORY
     n  STARTED WITH DIRT ROADS IN EARLY 60’S
     n  THE BLUE LAKE COMMUNITY NOT THE DEVELOPER BUILT THE PAVED ROADS IN
        1965
     n  THE ROADS WERE THE PRECURSOR OF FUTURE DEVELOPMENT FOR THE
        COMMUNITY
     n  AVERAGE PER YEAR $27,368 FOR MAINTENANCE ONLY AND RISING (NO PERMANENT
        IMPROVEMENT IN INFRASTRUCURE). 47 YEARS OF AGE.
n   PROBLEMS/NEEDS
     n   REPAIRS ARE TEMPORARY SOLUTION AND REOCURR
     n   ROADS ARE NARROW AND RIGHT OF WAY SHRINKING
     n   PATCHES AND RESEALING BECOMING CONSTANT AND EXPENSIVE
     n   ENTERING AN ECONOMIC PERIOD OF RISING COST AND INFLATION
     n   SAFETY ISSUES IN SOME CASES CAN ONLY BE FIXED THROUGH MAJOR EXPENSE
LLANO COUNTY MUD #1
ROAD PROJECT REVIEW
n   RECENT ROAD PROJECT
    n   Recently completed about 1 mile (~6 miles
        in community) at cost of ~$500k
    n   Funds from accumulated reserves in
        Streets and Lights account
    n   MUD Board decision based on engineering
        input on best construction method
    n   Recognition of need for permanent solution
        versus temporary repair
LLANO COUNTY MUD #1
ROAD PROJECT REVIEW
n   Basis for Decision
    n   Primary issue with roads is loss of width from
        edge deterioration caused by water; width not
        sufficient for safe traffic flow
    n   Repair and patching is only a temporary fix
    n   Need for culvert work in two locations where
        heavy rain overran roads; prevented emergency
        vehicle traffic
    n   Chose location of 1 mile based on most travelled
        routes and most benefit for community use
    n   Soft construction environment and relatively low
        asphalt prices
LLANO COUNTY MUD #1
ROAD PROJECT REVIEW
 n   Construction Technique
      n   Construction engineers considered alternates
          for construction based on cost and longevity
      n   Final solution used flat concrete curbs to
          prevent edge deterioration and re-use of
          existing surface and base to minimize cost
          (Bomag process)
      n   Cost about 50% of traditional construction
 n   Process video
LLANO COUNTY MUD #1
ROAD PROJECT REVIEW
n   Pro/Con Analysis of Alternates
n   Option 1 Complete total 5 miles
     n   Pros:
          n   Benefit all residents equally
          n   Save/defer maintenance funds (partial offset of tax increase)
          n   Take advantage of soft market (construction and interest)
          n   Upgrade road width to current standards
          n   All community roads are at recommended width for safety concern
          n   Improve community property values

     n   Cons:
          n   Higher tax rate increase than other alternates
          n   Loss of control over future HSB expansion decisions
LLANO COUNTY MUD #1
ROAD PROJECT REVIEW
n   How Roads are Paid for and Maintained
    n   Llano County Mud #1 has sole responsibility of the
        roads.
    n   Required by Texas Law to Maintain Separate
        Accounts
    n   Appraisals of property responsibility of the Llano
        Central Appraisal District.
    n   Tax Rate Responsibility of the Llano County MUD #1-
        Board of Directors
    n   Board maintains a 3 month reserve level on the
        General Fund and Streets and Lights Fund
    n   Maintenance and Repair paid from same account
    n   Bond funding from additional tax revenue
LLANO COUNTY MUD #1
ROAD PROJECT REVIEW
n   Option 2 Do nothing
    n   Pros
         n   No long-term debt
         n   Short-term savings slowly build reserves at historical
             maintenance levels
         n   If incorporated by City of Horseshoe Bay sometime in future
             they may or may not upgrade roads to their standard (some
             cost to homeowners)
    n   Cons
         n   Continue to lose road width from edge deterioration
         n   Safety is a consideration as width narrows
         n   Continue to spend maintenance money on surface and spot
             edge repair
         n   Risk of increased cost of later project (prices and interest rate)
LLANO COUNTY MUD #1
ROAD PROJECT PROJECTED COST

n   4.7 miles of road remaining
n   $2.6 million estimated total cost
     n Includes:

        n Engineering fee

        n Financial services fee

        n Legal fee

     n Does not include:

        n Interest

        n Administration fee
LLANO COUNTY MUD #1
ROAD PROJECT PROJECTED COST
n   Financial Advisor
    n   Estimates bonds to be sold @ 4.0-6.0% in
        early 2013
    n   Bond to be issued for 28 years to coincide
        with termination of other long term debt
    n   Bond service date would be 2013-2039
    n   All marketing and sales of bonds would be
        performed by Financial Advisor
    n   Fee 2.0% (included in $2.6 million)
LLANO COUNTY MUD #1
Tax Rate Analysis for Bond Issue

n   Estimate of Tax rate required to fund road project
     n  $2.6 million @5.0%=.137
     n  $2.6 million @ 6.0%=.152

n   Tax Account               Current Rate               New Rate(.152)
                                                                   V$
     n   O&M                  .1134                      .0800     -.0334
     n   Fire                 .1000                      .1000     --------
     n   Streets & Lights     .0700                      .0300     -.0400
     n   Tax & Debt           .0116                      .1636     +.152
            n Total           .2950                      .3736     +.0786




     Average Taxable Home Value Llano County Mud 2011
    $324,665= increase of $255.00 if Bond proposal adopted
LLANO COUNTY MUD #1
ROAD PROJECT REVIEW
n   DECISION PROCESS
    n   CONDUCT STRAWMAN PROCESS
    n   SEND BALLOTS(COLOR CODED) TO ALL BLUE
        LAKE PROPERTY OWNERS (REGISTERED AND
        NON REGISTERED VOTERS)
         n   MAIL 5/28
         n   RETURN 6/11
    n   PUBLISH RESULTS(WEB AND EMAIL)
    n   DECISION TO PLACE BOND ISSUE ON NOV
        BALLOT MADE BY 6/30/2012

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:6/18/2013
language:Unknown
pages:12