STEPHEN E KRAFT
Council member Ward 1
KRAFT U CITY COUNCIL
|Working for a City that delivers first class city services
Preserving U City Values
COUNCIL WILL CONSIDER A $20 MILLION BOND ISSUE FOR STREETS
VOTERS WILL MAKE THE FINAL DECISION
Council can vote to put a bond issue for streets, sidewalks, curbs and alleys on the April 7, 2015 ballot.
The bonds will be paid back through an increase in the property tax levy of $0.242. Passage requires 4/7 (57%) voter approval.
The proposal includes
- Resurface 40 miles of asphalt streets
- Resurface 1.25 miles of streets without curbs and gutters
- Replace concrete along eight miles of alleys
- Update ADA ramps and trip hazards on sidewalks of streets to be resurfaced
- All work would be done over a 3 year period
- Average street rating would increase to 9+
Quite simply, the U City streets are in poor condition. Streets are rated on a scale of 1 to 10 (with 10 being
excellent). Currently U City streets average around 6. As streets become lower rated, they start deteriorating at a faster rate and
require more money to maintain.
From 2006 through 2012, U City spent about $650,000 per year on street maintenance. That number has increased to $3 million
in 2014. However, a significant backlog remains. See Graph below
The current economic environment allows us to do more streets for our money
Interest rates are low. As the price of oil decreases, the price of asphalt drops. U City has a AA+ bond rating. We can borrow
money at about 2%.
The City of University City has very little debt. Under state law, U City is allowed to borrow $56 million in bonds.
The U City balance sheet shows only about $60,000 in bond debt.
(U City has about $5 million of outstanding bonds, however money has already been expensed to pay these bonds. There are legal
reasons that prevent early repayment)
How much would it cost on my taxes?
For a $100,000 house, the cost would be $45.98 per year
For a $400,000 house, the cost would be $183.92 per year