City TIRZ Description – cityofmcgregor.com/wp-content/uploads/McG-TIRZ1-Publ-Hrng-Notice-10.25.21-CC-mtg.pdf
[Information is best viewed on a large Screen] — The City of McGregor is, again, proposing to borrow $33.4 million dollars using Certificates of Obligation? This time the money for the City Industrial Park. [not for the City Water or Streets].
- Constructing, acquiring, replacing, equipping, and improving the Industrial Parks – WATER and WASTEWATER System – [not the City System].
- Constructing and improving the Industrial Parks STREETS and ROADS – [not the City System].
- Construction of a City-Owned RAILROAD Line and RR Crossing over Hwy 317.
- These tens of millions for “Industrial Park Improvements” will be funded using [yet another] Certificate of Obligation. The money to pay the Debt and Debt Service will come from “surplus revenues” from the Utility Fund – Water and Waste Water “Demand Fees.” These Demand Fees have been paying for all 9 of the City’s current Certificates of Obligation.
The Water and Waste Water DEMAND FEES are why your Utility Bill – [water bill] – is so expensive in McGregor. If you use no water in a month your water bill is $73.69.
McGregor Water, Streets, and Taxes Group:
- McGregor is drowning in Debt. – The City says the current Debt is $20+ million. [other sources say more]?
- We have bloated City Managerial Salaries. – Multiple City Employees now take 60% of their Wages from the New City Utility Fund – only the City Council knows why?
- We have serious City Leadership Issues. McGregor is fast becoming a transient community of here today and gone tomorrow factory workers. The future holds more noise, more traffic, and declining infrastructure within the city proper.
- Our Main Street has no real Commerce. The City is the largest employer on Main Street.
- The McGregor Economic Development Corporation – [MEDC] – Captures a large portion of the City Sales Tax and spends the money on “pet projects.” The MEDC proposes factories are the future of McGregor.
- We have the Downtown Exchange – Taxpayers subsidizing 3 million in construction and $150,000.00 annually pay the Debt and to keep the doors open.
- The City is proposing a TIRZ – The existing McGregor Industrial Park – [Approximately – 8,180 acres] – The City is proposing yet another Certificate of Obligation $33,401,885.00. This will bring the total Debt to about $53,221,614.00.
- Our apparent City focus is on an Industrial Park – and not the residents of McGregor. The Taxpayers keep getting the bill every year for improvements but the expensive improvements appear to be sub-standard. We have expensive TAXES, third-world Streets – [after spending tens of millions of dollars], and McGregor has the most expensive water in Texas – [because of the City Imposed Demand Fees] – that are used to pay the ever-increasing City Debt.
The City has ten outstanding Certificates of Obligation. The NEW 2022 Certificate of Obligation will be – [principal and interest] – $33,401,885.00. The City says we currently owe – [principal and interest] – $20,819,729.00. If approved in February the taxpayers in McGregor will be in – DEBT – a total of $54,221,614.00.
This is a very bad idea.
The image below demonstrates the existing Certificates of Obligation Principal Issued and the Maturity Dates for each. Also noted is the “official stated purpose” for borrowing the money. For example to repair our Streets and update our Water System.
It is difficult to determine the precise Debt and Debt Service relating to the Certificates of Obligation. The City declares one set of reporting numbers and other institutions and State Agencies have different numbers.
