Council approves issuance of $5.4 million in bonds
By KATHRYN MARTINEZ news1@kilgorenewsherald.com

Kilgore City Council last night unanimously approved the issuance of $5.4 million in Certificate of Obligation bonds last night.

The city will pay First Southwest Company interest at a rate of 4.29 percent.

The bonds will primarily financ Chandler Street construction which council hopes will improve traffic flow. It will also help pay for the downtown streetscape project which council expects to increase tourism, "curb appeal" and sales tax revenue.

According to Jeff Howell, city manager, work downtown is expected to begin in January while work on Chandler Street, occupied by three schools, would likely begin in June next year to minimize disruption of school traffic.

According to Mike Byrd, city financial advisor with First Southwest Company, if the two specifically-named projects come in under budget, the city could use left over bond money for other projects, so long as the projects are related to infrastructure improvements.

Byrd said the city is set to "save a ton of money in interest," because of the six bids tendered through an on-line bid service.

The approval came after Byrd's recommendation.

"Hindsight is 20/20," Byrd said. "The faster you get it done, the better off you are. It is an attractive market and (interest rates) are at a ten-year historical low."

Council cannot take any further action on the bond for at least 10 years, after which a portion or the remainder of the bond may be called.

The city may call additional bonds as early as 2010 for transmission lines, above-ground storage tanks, the looming replacement of the Rabbit Creek sewer line and infrastructure costs related to possible annexation.

Council also adopted an ordinance requiring a 90-day moratorium on applications for sexually oriented businesses. The moratorium will allow the council time to develop Planning and Zoning policy regarding sexually oriented businesses.

"We have to make decisions based on legality, not morality," Joe Parker, Kilgore mayor, said. "We cannot prohibit these sort of businesses from locating within our city, but we do have the right to limit them to certain areas."

In other business, the council approved repairing the damage to the Kilgore Veterans Monument at Harris Street Park. It remains unknown whether damage occurred from vandalism or from high winds during the severe storm in late March. Insurance will cover about $1,000 of the repairs. The policy carries a $2,500 deductible. Local veterans groups have offered to collect donations toward the deductible.

The next meeting of Kilgore City Council is 5:30 p.m. Tuesday, July 8 at Kilgore City Hall in Council Chambers.