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Council agrees on note for fire station

A seven-year tax note will be used to pay for a new $3.5 million fire station, the city council agreed Monday.

City Manager Rick Osburn told the council that the notes could be paid off by sharing between general and enterprise funds.

An estimate showed that the notes could be issued and the city would pay about $81,000 in interest the first year – in 2015-16.

The payment schedule would then be about $653,000 a year for six years, totaling $3.997 million on an  original principal of $3.565 million.

The notes would not be issued until the city knows the full cost of the new station.

He said issuing tax notes is a simple process, similar to issuing bonds.

Osburn said the city has two outstanding bond issues. One, for improvements on Alamo and Ellis roads, will be paid off in 2017-18. The  second issue, which was for improvements to South Alamo and A&M Lane, will be paid off in 2024.

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