Special Road Construction Bond Election
Fate voters will decide on May 1, 2021, if the City should issue $15 million in bonds to finance various road construction projects within the City. The road projects include:
|Turn Lanes at FM 551 and Interstate 30|
|Gettysburg to Blackland|
|Watertower Rd. North and South|
|Woodcreek Blvd. Extension to Interstate 30 frontage road|
|Riding Club Road East Realignment|
Bond Election Frequently Asked Questions
What is a General Obligation Bond?
General Obligation (GO) bonds are debt instruments issued by states and city governments to finance large capital improvements. Bonds are sold to investors and the proceeds from the sales of these bonds are used to pay for major capital investments that have a public purpose—such as the proposed 2021 Road Construction Bond or the approved $3.25 million 2020 Park Bond.
How are funds repaid that are received through the issuance of General Obligation Bonds?
General obligation bonds are backed by the full faith and credit of the issuing jurisdiction, in this case, the City of Fate. This means the City is obligated to pay back the bonds plus interest by pledging its revenue and ad valorem taxing power. As such, the City may use a portion of its property tax revenue, or other revenues, to repay GO bonds in the form of annual principal and interest payments.
How did the City of Fate decide which items to include in the proposed bond proposition?
Discussion regarding expanding transportation needs began during the October 5, 2020, Fate City Council meeting. Throughout the fall, a list of roadways was compiled to address the traffic issues brought up during previous public meetings.
Ways to fund the construction of these roadways were discussed throughout late fall and early winter. At the February 1, 2021 meeting, the Council approved bringing a bond issuance of $15 million for new road collectors and connectors to improve traffic flow to Interstate 30 before the voters on May 1, 2021.
How much money would the 2021 Road Construction Bond generate if the proposition passes?
If proposition A passes, the City of Fate would be authorized to issue bonds for $15 million.
If a bond proposition is approved, when will the construction of that project begin?
Voter approval of a bond proposition only authorizes funding for the project. Before construction, the City must take steps to plan, design, and accept bids on the projects. Therefore, depending upon the type of project, the process from planning to construction may take several years.
What are the property tax implications under the proposed 2021 General Obligation bonds?
The Fiscal Year 2022 tax rate impact would be .0580 per $100 property tax valuation.
- The median home that has an appraised value of $270,000 would pay approximately $13 more per month for the proposed $15 million 2021 Road Construction Bond. (Assuming the interest rate is 2.75%, and amortized over 20 years).
For more detailed information view the Voter Information Document – City of Fate, Texas Special Election Proposition A.
What will the 2021 bond proposition look like on the May 1 ballot?
The City contracts with the Rockwall County Elections Office to conduct our elections. Please contact the Rockwall County Elections Office at (972) 204-6200 or visit their website at www.rockwallvotes.com for information regarding voter registration.