Finances still in good shape
By Erin Cooper
The Community News
Although it will cost more, the city of Hudson Oaks will soon have a new city hall and a city park.
After a lengthy discussion at its regular monthly city council meeting, the council unanimously approved to authorize the city administrator to secure financing for the construction of the project.
The funding for the project was originally brought before the council last November. At that time, the council authorized city administrator Robert Hanna to execute an agreement with Speed-Fabcrete and Callahan and Freeman for the construction project to begin.
The budget approved at that time was an estimated $682,500, based on a 4,550-square-foot city hall.
After beginning research on Phase I, which included interviewing city staff and completing regulations, the square footage of the building increased by an additional 997 square feet, for a total building size of 5,527 square feet, requiring a $147,000 increase in funding.
Concerns about the increased size of the building topped the council’s list of questions. However, Hanna explained that although it may currently be bigger than needed, the city is looking towards its future and is planning for future growth.
“The challenge is to get us something now, conservatively, but something we can go forward in the future without having to come back and burdening future councils,” Mayor Pat Deen said. “It’s conservative, yet it’s going to meet our needs, whereas the other city hall clearly hasn’t for a long time.”
The council was presented with several options for the project and an interim funding strategy for the increase. It chose taking the interest from purchased land and accrues it to a fund balance. It also chose its first construction option, which fully funds the project.
“Council chose to select a funding option that takes the interest earned on the sale of the 1.681 (acres) city property and reinvests it into the sinking fund established from the proceeds of the sales of the 1.681 acres,” Hanna said. “This funding option allows the city to leverage the funds in the sinking fund to make debt service payments without additional city resources until 2012.”
The funding option will not constrain the city’s finances, allowing the city to still pay as it goes for other repairs such as roads.
The council will formally vote on a funding method at a special meeting scheduled to be held in February.