On Tuesday night, the Highland Village City Council approved a $2.8 million tax note to fund replacement capital equipment.
Over a span of three years, the city plans to replace two ambulances and a brush truck for the fire department; the police sky watch tower; a dump truck, concrete mixer, air compressor, limb chipper and roller for the street department; and an excavator, trailer and more for the drainage division.
The tax note, supported by the ad valorem tax base, will be provided by Chase Bank at a 3.42% fixed interest rate, according to a news release from the city of Highland Village. Tax notes are limited to a seven-year maturity and the resulting debt service will be defined and consistent over the financing term.
To maintain tax exempt status, the proceeds must be substantially expended within three years of receipt, according to the city.
