Liberty City Council and city officials are exploring a financing strategy that could allow millions of dollars in long-needed street improvements to begin without immediately asking voters to approve a bond election.
During the Tuesday, July 14, City Council meeting, financial advisor Robert Traylor of RBC Capital presented scenarios that would allow the city to issue $5 million in certificates of obligation in December 2026, followed by another $5 million in early 2028.
The proposal would provide funding for the first phases of the city’s street improvement program while spreading the financial impact over time.
Under current projections, the financing would temporarily increase the city’s interest and sinking tax rate by approximately 2 to 3 cents before existing debt begins to roll off, reducing the tax impact in future years.
Councilman Ross Ward questioned one of the proposal’s underlying assumptions—that interest rates will decline over the next several years.
“I’m not fully convinced rates are going to come down,” Ward said. He asked what would happen if interest rates instead increased over the next 12 to 18 months and whether the projected tax impacts would change.
Traylor explained that while rates could fluctuate before bonds are sold, the interest rate would be fixed once the certificates of obligation are issued, unless the city later chooses to refinance the debt.
City Manager Bryan Kendrick said waiting to begin street projects would only make the problem more expensive.
“The worst thing we can do is wait,” Kendrick said. “Anytime we wait, everything is getting more expensive to do, and the roads are getting in worse shape. Moving on it now, I think, is the smart thing to do.”
Kendrick said deteriorating streets eventually require complete reconstruction instead of less expensive maintenance, making early action the more cost-effective option.
Traylor said Liberty is in a favorable position because several existing debt obligations will begin expiring in the coming years, creating room within the city’s debt structure for new infrastructure projects.
Council members also discussed the possibility of using a portion of the city’s half-cent sales tax dedicated to economic development to help fund future street improvements, though no decisions were made.
No action was taken. City officials said they will continue refining the proposal as they prepare the 2026-27 budget and determine which street projects should be included in the first phase.
In his City Manager’s report, Kendrick thanked city staff, volunteers and council members for helping make the city’s annual Red, White and Boom fireworks show a success.
Kendrick said this year’s event appeared to draw an even larger crowd than last year’s celebration, with vendors, activities and a fireworks show that concluded without major issues. He also highlighted the June 27 Texas America 250 celebration at the Sam Houston Regional Library and Research Center, saying the event helped showcase one of Liberty’s premier attractions while promoting the city’s role in the nationwide observance of America’s 250th anniversary.
Looking ahead, Kendrick reminded residents that National Night Out is scheduled for Oct. 6, with Lights in Liberty returning during November and December.
Kendrick also updated council on the city’s budget process, noting that the Liberty Central Appraisal District has delivered the city’s final tax values and that the first City Council budget workshop is scheduled for July 28. He said construction officially began July 13 on new concession stands and restrooms at Liberty Municipal Park, with the project expected to be completed by the end of December.
In other business, Council:
- Ordered two unsafe structures at 2721 Cos St. and 134 McManus St. demolished if property owners fail to remove them within 30 days.
- Adopted a Code of Ethics for City Council members and members of city boards and commissions.
- Approved a resolution authorizing the city to seek up to $10 million in Texas Water Development Board funding for eligible water and wastewater infrastructure projects.
- Accepted a TxDOT grant that will pay 95 percent of the cost of installing a backup generator at Liberty Municipal Airport.
- Received updates from City Manager Bryan Kendrick, including the city’s record-setting “Turn Around, Don’t Drown” social media campaign, the transition to city-operated food service at the Liberty Municipal Golf Course, construction at Liberty Municipal Park, and ongoing budget preparations.
321
321 and other streets in and around Cleveland and Tarkington are terrible. The county comes out and puts a patch here and there and next thing you know the whole street is rough as H*&%
Maybe work on the timing of the lights in Dayton? Liberty always flows good on 90, but with the same amount of traffic, Dayton takes 20 minutes to get through.