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Council to Vote on Borrowing Upto $19M for City Hall & Duvall Field Projects

At tomorrow’s meeting, the Council will host a public hearing and vote on an ordinance to borrow up to $19 Million for the public purpose of financing a new City Hall and Duvall Field renovations. If approved, the City plans to do this by authorizing and empowering the City to sell and issue, upon its full faith and credit, General Obligation Bonds.

On April 23, 2019 the City Council voted (7-1) to support the construction of a new City Hall building and plaza by limiting the borrowing of no more than $14 million. In addition to the City Hall project, the Council also got an estimate of $5 million to complete the second phase of Duvall Field project (with an option to build an artificial synthetic turf field).

City’s financial consultant is proposing to borrow a loan of up to $14 million for 30 years for the City Hall, and a loan of up to $5 million for 20 years for Duvall Field. For the combined loan of both projects, the yearly debt services cost (aka loan) for both projects is estimated at $1.1 million per year ($755,000 for City Hall and $347,000 for Duvall Field).

The City currently is also paying $560,000 for the parking garage debt service and $420,456 for the vehicle lease debt service. If the City borrows $19 million for both projects, the annual debt services to expenditure (City Budget) ratio will jump from the current 3% to around 9%. It is recommended to keep the ratio below 10%.

Once more accurate costs of both projects are known, the Council plans to take another vote on the bond resolution (to borrow the exact amount at its September 10 meeting.

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