City takes action on new PBPD, warns of budget cuts due to COVID-19

The Poplar Bluff City Council voted Monday to reimburse itself for expenses related to a new police station with funds from the sale of certificates of participation.

The item was discussed and approved during a meeting held at the Black River Coliseum with citizens and council members participating by phone.

The meeting was closed as part of measures enacted to protect against the spread of COVID-19, including limiting groups to 10 people or less.

City manager Mark Massingham said during the same meeting he expects to come back to council with proposed cuts to the city’s 2020 budget.

About 45% of the general fund budget that pays for items like police, fire and street department expenses comes from sales tax money.

The closure or slow down of so many businesses due to COVID-19 is going to hurt that sales tax money, Massingham said.

“It’s going to make a big dent in our budget this year, unless the federal government steps in,” he said.

Massingham expects to bring several proposals back to council members, saying in a city manager’s report at the end of the meeting this would be done as soon as possible.

Police department

Money for new city buildings will also come from sales tax revenue, but from a separate fund than that which pays for general fund expenses. The capital fund pays for equipment and building expenses through its own dedicated sales tax.

The resolution approved Monday would allow the city to reimburse itself for expenses related to the “acquisition, construction, reconstruction, furnishing and equipping of a new police facility,” through proceeds from certificates of participation.

The maximum principal amount of these would be $11 million, according to city documents.

Massingham said the figure does not reflect what the city expects to spend on the police department and that no timeline is in place for when proceeds from the certificates will be available.

City council members voted March 16 to select Police Facilities Design Group as the architectural firm for the construction of the city’s new police department.

They have purchased property on Shelby Road for the facility.

The city has discussed spending $16-17 million on a Shelby Road police department and a downtown city hall.

City officials have said they would pay for the cost of new city buildings through a 20-year debt covered by the existing capital improvement sales tax.

The city can afford total payments of approximately $1.2 million under figures presented in September to city council members by Todd Sweeney, with consultant Navigate Building Solutions.

The capital improvement sales tax typically collects approximately $2.4 million per year.