October 11, 2011 City Commission Meeting

Key Decisions & Votes

The City Council discussed various capital improvement projects and methods of funding. After extensive deliberation, a motion was made and passed:

• Motion Passed: Staff and financial advisors were authorized to prepare a plan for a bank note not to exceed $3.5 million over a period of not to exceed five years. This financing is intended to fund critical capital improvement projects.
  • Prioritized Projects: The top three priorities for this funding are the Expo parking lot, RV electrical upgrades, and comfort stations (restrooms) at the Expo Center.
  • The motion passed with a 5-2 vote.

Financial Matters 💰

The meeting focused heavily on the costs and financing of several city projects, considering the current low interest rates and sales tax revenues.

• Project Costs & Budgeting:
  • Expo Parking Lot: Estimated at $1.3 million (after an anticipated $200,000 contribution from the county). This includes paving, curbs, sidewalks, and a grand entrance. Initial landscaping plans were discussed, with some adjustments due to parking stall width requirements.
  • RV Electrical Update (Expo): Estimated at $550,000 to upgrade 284 full hookup spots to 50 amp service. This is crucial for attracting larger RV rallies, as current capacity is maxed out and existing service is insufficient for modern RVs.
  • Comfort Stations (Restrooms) (Expo): Estimated at $250,000 for upgrades.
  • Squad One Apparatus (Fire Department): The cost for a combined pumper/squad unit was updated to $465,000 (an increase of $200,000 from the initially budgeted $265,000 for a basic squad replacement). This unit offers greater versatility and addresses the need for pumper replacement.
  • Cemetery Building: Estimated at $500,000 for a new office, meeting room, records room, and lobby. The current facility is significantly smaller and less inviting.
  • Library Roof: Estimated at $250,000 for replacement. The current roof is 23 years old, requires ongoing patching, and has persistent leaks. A pitched roof alternative was discussed but complicated by the existing cooling tower.
  • Airport Track: Estimated at $400,000 for a new 10-foot wide asphalt track. The existing track is 14-15 years old and in poor condition.
  • Wayfinding Signage: Estimated at $250,000 to implement a consistent city-wide signage plan developed in 2008.
  • City Hall Phone System: Estimated at $175,000 to upgrade to a Voice over IP (VoIP) system, replacing the outdated analog system.
• Funding Strategy:
  • Staff highlighted that financing multiple projects together (bundling) is more cost-effective due to fixed legal and administrative fees.
  • Financial advisors reported that current interest rates for municipal financing are very low, potentially under 2% for a fixed-rate, short-term (3-5 year) note. This makes borrowing an attractive option to complete projects sooner and avoid rising construction costs.
  • The city has approximately $850,000 budgeted for capital projects this year, which could be redirected to debt service if projects are financed.
  • Concerns were raised about recent sales tax revenues being down for the last two months.
  • The maximum borrowing capacity with existing third-penny sales tax resources was noted to be substantial, potentially around $70 million over 10 years.

Public Comments

No public comments were recorded during this meeting.

Agenda Summary Table