General Obligation Refunding and Improvement bonds were sold with the goal of raising funds for the completion of the expansion project planned for Walnut Creek Linear Trail. Sourcing the funds in this way means the project can proceed with the tax rates being raised. The City Council was actually able to reduce its tax rates for the coming year.
Discussing this new development, Mayor Michael Evans said to MansfieldRecord.com:
“It is good to say we did not have to carry out the voter-approved tax increase to give residents the linear trail they want, in fact, we decreased the tax rate. This is only possible thanks to years of smart financial operations and budgeting.”
Out of the $13.44m raised through the sale of bonds, the linear trail will account for $5.25. The rest of the money was diverted toward repaying existing debts. MansfieldRecord.com credits this as opportunity as being done to Financial moves such as this are only possible because the city has careful budgeting policies, a healthy economy, and strong operations – attributes cities often promote through brochure printing.
The City Council was able to save over $1.5m in interest payments over the last 18 months by redeeming bonds early. Construction on the trail expansion is expected to start midway through 2023.