RES 77211 - Laserfiche WebLink

Project A - Purchase of Fire Station Two - This project is fairly straight forward; purchase the house currently leased as a fire station for $68,000. and avoid annual lease payments of $5,400. This would be an interim arrangement as a new fire station is planned subsequent to the construction of the shopping center. A reason for not proceeding with this purchase now is that the need for a new facility may occur within the next two years. However, if purchased now, the property could be sold at the appropriate time. The purchase could be financed from current funds avail- able. Project B - Construct New Police Building - A new Police Building constructed on the Civic Center site would cost about $500,000. for a 7,000- 8,000 square foot facility. A building necessitating an expenditure of this magnitude would require funding through the Non-Profit Corporation. If an interest rate of 5.2 percent were realized the annual debt service for a $500,000. project would be $40,440. for a period of twenty years. Obviously, this project would create the need for an additional annual cost of $40,440. However, if coupled with the fire station purchase and the resulting avoidance of that annual lease payments, the net impact on annual costs would be: Debt Hervice for Police Building $40,440. Less: Fire Station Lease Payments Avoided 5~400. Net Increase in Annual Costs $35~040~ Project C - Addition to City Hall and New Council Chambers - This project would cost an estimated $240,000.; $90,000. for a 1,800 square foot addition to City Hall and $150,000. for a separate Council Chambers located on the existing Civic Center site. This project would return the City Attorney~s office to City Hall and also enable all of the Recreation Department to be housed in City Hall. The project is really two components; the City Hall addition and the new Council Chambers, but must be considered as one if the current annual lease payment of $14,800. is to be avoided. Com- bined with Projects A and B, the cumulative net impact on annual costs of this Project would be: Debt Service for Police Building $40,440. Less: Fife Station Lease Payments Avoided 5,400. Council Chamber Lease Payments Avoided 14~800. Net Increase in Annual Costs $20~240~. This building program could be accomplished by using funds currently available in combination with financing through the Non-Profit Corporation. The following table is a summary of the impact of this building program on the City's current financial pictu[e.