5.9. SR 01-14-2002 - Laserfiche WebLink

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Public Safe~y/ Ci(y Hall Project Public Information on the Public Safety Facility Following is a list of items for the Council to discuss as reasons for the city pursuing a lease/purchase program now versus waiting until a public referendum in November 2002. The public safety needs are immediate. Construction on a new facility should begin in late spring 2002. A successful bond referendum in fall 2002 would delay construction until spring-summer of 2003. The need for police space had been previously underestimated and the need has been heightened by the recent addition of the assistant city attorney department. The fire department needs are supported and documented in the Insurance Services Office (ISO) Survey Report. The ISO ranking for the city impacts insurance rates for local businesses. Moving forward now will allow the city to take advantage of the record low interest rates for bonds. Rates have never been lower and are not expected to go lower in the future. Interest rates can only go in one direction and that is higher, which will cost everyone more in the long run and make the project more expensive. Due to the state of the economy, the construction industry is very "hungry" and accordingly, it is believed that the bids for this project will be very competitive. A few years ago when the economy was strong, it was sometimes difficult to even get contractors to bid on municipal projects and in many cases municipalities "overpaid" for their projects due to the state of the construction industry and the economy. Today, the opposite situation exists and this environment may not continue into spring 2003. Moving forward now should produce a lower bid for the project than what we would see next year. Public safety is a necessity and a requirement, not a luxury. The City Council has the obligation to make the best and most timely decision regarding this public service. A November 2002 bond referendum would be successful. There is no reason to wait, as the project will only get more expensive as compared to moving forward now. (This may or may not be a reason to move forward now)...A lease/purchase program is based on net tax capacity and a bond referendum is based on market value; a lease/purchase plan will cost a homeowner less and a business owner more as compared to a successful bond referendum. (This point is neutral)...As the citywide net tax capacity or market value increases, each property owner will see their annual payment amount decrease.