Next step on PB city hall starts in 2021 with funding questions

Poplar Bluff city leaders expect to take a closer look in early 2021 at funding for a new city hall.

These decisions will need to come after officials have a better picture of the final cost of the new police department, said city manager Matt Winters.

Drawings for the new police department are about 70% complete. The project is expected to go out for bid before the end of this year.

“I think once the police department bids are out, and we have firm costs and a firm financing package, we’d be in a better position to know what kind of annual payment we could take out (for city hall),” said Winters.

The police department currently is expected to be an $11.6-million project, with payments of $850,000 a year, over 25 years.

The most recent votes by the city council regarding a location of city hall have been to keep the offices downtown. This building would also include Municipal Court.

A specific downtown location has not been designated.

The city currently owns multiple downtown lots (see sidebar), including the former Second Street complex used for the old police department and city hall; now closed parking garages on Oak Street and South Broadway; and the former Expert Tire building on Pine Street.

__Where does the money come from?__

Payments for both projects will come from the capital improvement sales tax fund, which can be used only for building and equipment needs.

The capital fund is expected to earn about $2.4 million in 2021, with small increases forecasted in future years.

It currently is used to make just over $1.2 million in payments for existing debt on five separate items. Of the existing types of debt, all, but one, will be paid for by the end of 2024.

Debt payments would be approximately $300,000 a year by 2025, before any new debt is assumed, such as costs for the new police department.

“Because of the payments coming off, I believe we will be able to take action on the city hall project in the next five years,” said Winters.

__How much can the city afford to spend?__

By 2025, the city anticipates making approximately $2.6 million in revenues from the capital fund. The remaining existing debt, to developers of Eight Points retail area and the expected police department payment would total about $1.2 million.

The capital account also is used each year for small and large equipment purchases, such as office equipment and fire trucks.

__How much has the city previously said it could spend on city hall?__

In September 2019, consultants with the firm Navigate made a presentation to the city council concerning possible costs, and what the city might be able to afford.

The presentation considered the fact many debt payments would end by 2024.

Navigate suggested a total payment of $1.2 million for all of the city’s proposed projects, including a police department and city hall complex, which would also include Municipal Court.

Their debt projections used a 20-year repayment schedule for up to $16 million in total project funds. Additional debt would be needed to cover fees associated with the issuance of the debt.

At that time, Navigate projected total costs of a downtown city hall and Shelby Road police department at just over $17 million.