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NDCC supports passage of Nov. 7 bond package July 28, 2006 The Honorable Laura Miller Dear Mayor Miller: Based on NDCC's careful scrutiny of the Comprehensive Needs Inventory, feedback from town hall meetings, and our meetings with key public officials and area business leaders, we are pleased to support the City Manager's recommendation as amended by the City Council based on the following observations and analyses: 1. Scope of Proposal. The Proposal is fiscally prudent and reasonable in scope. The $1.35 billion Proposal will constitute the largest bond issue in the City's history; however, the City has identified $8 billion in unfunded capital needs, and proceeds under the Proposal will fund projects and initiatives in key areas of economic development and quality of life. Moreover, given the effect of inflation on construction costs, there is limited utility in comparing the size of this Proposal to past proposals without adjusting for inflation and other quantitative variables. 2. Timing of Proposal. Now is the right time for a bond issue of this size and scope. Continued increases in expenses related to labor, fuel, concrete, steel, and other materials compel the City to invest in much-needed capital improvements. 3. Public Involvement. The Proposal is the product of an extensive public review and comment process, which included more than three dozen City-sponsored town hall meetings and several City Council hearings. The town hall meetings were held in each City Council district and in neighborhoods across Dallas to ensure the maximum opportunity for broad public involvement in the planning process. One round of town hall meetings was used to solicit residents' input on the needs of the City; a second round of meetings was used to inform residents of the proposed allocation of bond proceeds and to give them the opportunity to comment. We note that the allocation under the final Proposal correlates closely with the priorities articulated by City residents. 4. Strategic Analysis of Recommendations. The City undertook a strategic, businesslike analysis in the assessment of recommended investments. The City considered capital investment priorities based on the 2006 Comprehensive Needs Inventory, recommendations of the City Council and Dallas residents, and long-range plans adopted by the City Council. In addition, projects were evaluated for their strategic investment value and ability to promote tax growth. This process aided in developing a prioritized list of investments based on objective criteria, and in minimizing undue political influence. In the future, we encourage the City Council to define the criteria even more sharply in order to achieve its stated goal of eliminating the backlog of true necessities. 5. Conservative Tax Growth Estimates. The City employed a conservative approach to estimating the projected growth rate of the municipal tax base. Since the City will repay the bond obligation from future tax revenues, the conservative estimates should ensure the City's ability to fulfill its repayment obligation, notwithstanding any unforeseen market downturn or adverse economic conditions. 6. Fair Park Improvements. Among the Proposal's allocations to park improvements are investments in Fair Park, including the Cotton Bowl. We believe the upcoming bond issue represents a key opportunity to invest in the economic generator and cultural gem that is Fair Park. Strategic investment can be leveraged to generate additional revenues from Fair Park concessions, events and activities, and from ancillary development adjacent to the property. We will reserve judgment on subsequent financial investments in the Cotton Bowl pending further information on current and proposed uses of the stadium and related income projections. 7. Discretionary Funds. Finally, we are pleased the City has decided against the use of unallocated discretionary funds for each City Council district. We are pleased to support the Proposal as drafted by the City Manager
and amended by the City Council. We believe the proceeds from the bonds,
invested as contemplated under the Proposal, can generate returns that
benefit the City, its businesses, and its residents for years to come. Best regards. Sincerely, Ron Chapman, Jr. Paul Maute cc: Members of City Council and Mary Suhm, City Manager Chamber Contact: |
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