St. Charles moves toward borrowing $22.9 million
St. Charles aldermen gave a preliminary thumbs-up Monday night to borrowing $22.9 million, most of which would be used to finance the construction of a new police station.
About $17 million would be allotted for the state-of-the-art police facility if the city council ultimately decides to issue the general obligation bonds, Finance Director Chris Minick said. The project, which has a $24.6 million budget, is on track to be completed by fall of 2019 at the Valley Shopping Center.
The remaining debt, which includes bond issuance costs, would be earmarked for other capital projects such as water and wastewater enhancements, electrical line improvements and property acquisition for a flood mitigation project, he said.
Aldermen acting as the government operations committee Monday unanimously approved issuing the bonds, which the city expects to pay off within 20 years, Minick said.
The city has already allocated about $2.5 million - stemming from previously issued bonds and a 2016 budget surplus - toward preliminary work on the police station, Minick said. Project leaders last week presented the schematic designs and site plan for the facility, which received a favorable response from aldermen.
"The need has been identified, and it's been discussed for some time," Minick said. "It is a priority project, I believe, for the council."
Other potential funding includes roughly $3 million in the city's general fund reserves. Officials hope the $17 million in debt will cover the remaining project costs, Minick said, noting that an exact price tag has not been determined.
"That's what we hope is a fairly safe number for what we need in the next 12 months or so," he said. The city may consider issuing more debt if final bids come in higher than expected.
If the police station and other identified projects come in under budget, he added, the remaining bond proceeds could go toward other expenses approved by the city council.
The proposed ordinance also includes an option to take out another $4.8 million in debt to refinance bonds that were issued in 2010. The city is expected to monitor the market conditions and determine whether the potential savings would warrant refunding the bonds, Minick said.