City Paid Off One Short Term Note, Needs Another

City Staff is requesting to borrow $1.875 million for "the construction of certain public works, including park improvements, street improvements, and public safety facilities."

The City paid off nearly $2 million in short term notes on August 15, 2023.  Those funds were primarily targeted toward Animal Shelter renovations, which are yet to begin.  

Council approved $118,000 for an outside engineering contractor on.May 17th.  The city is yet to seek bids for the Animal Shelter renovation project.

The mismatch in project timing vs. available funds was foreseeable.  

I will wager the $2 million tax note will be paid back before shelter renovations are completed.

The city spent significant funds on the just retired short term note.

It took a public information request to get actual costs for the notes Council approved.  Issuance fees are $49,000, bond counsel fees $3,500 and interest costs $41,327 (as the city shortened the term of the note to August 15, 2023).  Those total $93,827, a significant amount that could fund may a low cost spay/neuter surgery program.

Putting funds towards low cost spay/neuter would've provided a greater service to the community.

I submitted another public information request for shelter renovation invoices paid from the just retired $2 million tax note.  Due to changes City Council approved last December I will have to pay for any documents produced.

Hopefully, someone on City Council will ask about project timing and borrowed fund availability (October 19, 2023).  Also, Council's background packet does not state the term of the $1.875 million note, only that it would be repaid by fiscal year end.  That also should be made clear to the public.

The City has become a low information sharing entity. 

Update 8-28-23:  The city paid $93,827 for construction financing it did not use:

“Please provide copies of all invoices for Animal Shelter renovations paid for by the nearly $2 million in funds borrowed for that purpose that were paid back on August 15, 2023. I am willing to pay for the production of these documents. Thank you.” 

Their response was:

The City of San Angelo has reviewed its files and has determined there are no responsive documents to your request.

Why would the city borrow money for a stated purpose, not use it for that project and pay it back prior to even starting Animal Shelter renovations?  Hopefully, someone on City Council will ask. 

Update 9-27-23:  The City's Capital Improvement Plan has a 4-30-24 completion date for Animal Shelter renovations.  The project is yet to be bid on the city's purchasing website.