City Manager Jim Wieprecht proposed the replacement of multiple aging Public Works buildings with one $7 million building at the February Mayor and City Council Meeting. Most of the current buildings are in Memorial Park with a few garages throughout the City and a utility yard. "The goal is to get the equipment out of the parks and under one roof," said Wieprecht. "We’ve seen incidents of theft and vandalism because equipment is stored outside in multiple places."
The location of the proposed building is a five-acre parcel off Allendale Lane. The property was purchased for this project because the cost of the land parcel, which included water and sewer access, was less expensive than running sewer and water to an existing City owned property. The building will have a training room, wash bays, and storage for the equipment.
Councilman James McCarron hesitated in supporting the project due to the high price. He asked if it was really needed in such a large fashion. Councilwoman Judith Fuller responded that the project has been on the Capital Improvement list for a while, as the current facility was built in the 1970s. "The current conditions are terrible. There is black mold, no hot water and when it rains the roof leaks," she said.
Councilman Christopher Tillman asked if the project could be broken into parts, allowing the cost to be dispersed over time. Wieprecht said yes, the building is engineered to allow adding on in phases; however, that could end up costing more in the long run. "We want to future proof this building to be enough as the City grows."
Wieprecht said he has reviewed the City’s finances with the City treasurer, and they think the City will need to use some of the current general fund balance, borrow money, and apply for grants to fund the project.
What is limiting for this project, Wieprecht said, is the total debt service limit, which is the total cash required to pay back all current debt obligations. "Our current general fund debt balance is $755,924. Annual debt service on that balance is $122,239. Based on 10% of the general fund operating revenue, the most debt service we could take on would be approximately $587,000 per year, or $465,000 above our current debt service." As the cost of the project far exceeds that number, it will require a loan to complete.
He said the City is exploring loan options through the Local Government Infrastructure Financing Program, a way of financing capital projects through the Department of Housing and Community Development. The advantage of Community Development loans is they come with significantly reduced interest rates.
"If this project was a utility project, we could fund it out of the water or sewer fund—which is a bigger pool to pull from. But because it's not, then we must fund it out of the general fund," said Wieprecht.
Wieprecht said the City may be able to split the cost between the general and utility funds because some employees do work in both the Water/Sewer departments and in the Street departments; however, doing so would create finance issues that would need to be worked out first.
Wieprecht cautioned the City Council that the plans are rough and in the beginning stage. Many changes and drafts are expected which may reduce the cost while at the same time provide what is needed now and in the future.
