At this week’s meeting, the City Council discussed how to finance the construction of the new City Hall and Duvall Field projects.

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.

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 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%.