Hewitt eyes $6 million bond for fire station, other projects

To pay for several projects, including the construction of a second fire station and street improvements, the Hewitt City Council voted Monday to start the process for a $6 million bond.

The 20-year bond would not require a hike in the city's tax rate, which has remained close to 54 cents per $100 property valuation for the past several years, officials said. Considering the city's overall debt position, the tax rate could even go down after next year, as long as Hewitt continues to grow, said Andrew Friedman, a financial advisor with Samco Capital Markets. During his presentation to the council Monday, Friedman said the city would have room in the future to either bond for new capital projects or allow the tax rate to come down.

Like other area taxing entities, Hewitt is preparing for the process of setting its tax rate and budget for the coming fiscal year, which starts in October. Under current projections, Hewitt's 2023 tax base is expected to jump by more than 12% compared to last year. Certified values will not be released until July.

City Manager Bo Thomas said issuing the certificates of obligation is the best way for Hewitt to successfully fund the construction of the new fire station without raising the tax rate. Thomas said the city paying off other debts in the past year means it will have the room to issue the $6 million bond and maintain its tax rate.

Hewitt City Council members voted 7-0 to issue a public notice that Hewitt will consider taking on the debt. Thomas said there will not be a formal vote on whether to take on the debt until Aug. 7.

The city council is scheduled to discuss next year's tax rate and budget over the next few months. It is expected to set the tax rate and adopt a 2023-24 budget Aug. 14. If the council decides to borrow the $6 million, the funds will be delivered to the city Aug. 30.

The council in November approved the $841,000 purchase of a new fire engine as part of a strategic plan to grow the fire department, which city fire officials said is in need of upgrades to keep pace with Hewitt's growth.

In a presentation to the city council late last year, Fire Chief Jonathan Christian said the department's fire call volume last year was triple what it was in 2013, the last time the department added a new firefighter position. The department's emergency medical service call volume almost doubled over those nine years, he said. At the time, Thomas estimated a new station on city-owned land near Old Temple Road and Crestwood Drive would cost upward of $4 million. The location also would add a station on the opposite side of the railroad tracks that cross the city from the current station at 100 Patriot Court.

He said this week that the city does not have a solid cost estimate but that it expects the bond to cover the fire station construction and other capital projects.

Thomas said this week that construction on a new fire station could start in 18 months at the earliest, with another year to 18 months before it is complete.

In addition to the public safety funding, the bond would pay for improvements to the city's streets and sidewalks, which also includes updating drainage, landscaping and road signs. It could also cover construction and improvements to the city's parks, according to city council meeting documents.

Also Monday, city engineer Miles Whitney told the council the city is seeking bids from contractors for planned street projects on Chaparral Road, Crescent Drive and Will Boleman Drive. The city has also submitted plans for a new water well to the Texas Commission on Environmental Quality for review, and is working on a construction contract.

The council voted 7-0 to purchase 31 Taser T7s and related equipment for Hewitt's police department. Thomas said new Tasers are needed because 21 of the department's 32 Tasers are "malfunctioning in various ways." The equipment will cost $88,000, to be paid in five payments over the next four years.

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