City Council Special Meeting

JC Martinezstaffyour point councilmember Hall plus plus plus you're absolutely right in the sense that there are other projects that are coming online as well the fire station 3 potential property yard school bond referendum the past so taking all those into consideration trying to figure things out a 25 year debt of issuance is what we would typically do for a CIP of that magnitude at about 5 percent which is sort of our estimating rate is about four and a half million dollars of principal and interest payments for the next 25 years if we and then accordingly four million dollars plus or minus a few hundred thousand on ongoing operating add those together it is about 11 12 cents on the current value of a penny so yes matt

Thomas PetersonI have a parallel question. I believe Mr. Hardin raised the fire station. What is with respect to maybe you, Dad, what is the debt issuance schedule and implication of that? Part of the reason I ask is we're budgeting for FY26 and at the same time we're taking actions that either directly or indirectly affect FY27 and beyond. So we're looking at the future here as we're looking at the present. And, you know, the Willard Sherwood Center is one example, but the fire station is another one. Can you clarify where we are on that with respect to the debt issuance?

JC MartinezstaffSo we have not issued any debt specifically tied to as a placeholder for fire station 3. We did appropriate $11.6 million in FY25, our current fiscal year. On FY26, there is $18 million that is listed as an appropriation, same for 27, and then $5 million in 28. So the next three years, about $41 million. As we get closer to construction and award, that's when we would start having those discussions with our financial advisors on the timing of the debt issuance. it's my understanding that we are I'm going to look at director summers about maybe 10 30 percent in the design phase of fire station 3 so still relatively very young in that aspect it would take about another year year and a half before

Thomas PetersonDid I understand correctly you said there's $18 million in the FY26 budget for the fire station?

JC Martinezstaffcorrect so specifically related to debt issuance the closer we get to full design and actual construction award at that point we would need to have all funds available or at least appropriated at that time those would be the discussion that we would have I would assume in the next year maybe a year and a half on the timing specifically related to the fire station three

Stacy Hallefficiency audit and the upcoming community survey, both of which will be invaluable in helping guide our decisions with direct input from residents. As we close this chapter and look ahead, I'll be turning my attention to several major proposed capital improvement program items, the Willard Sherwood Health Center, fire station number three, and the property yard. These are significant and costly investments, and as I said before, they keep me up at night. It's critical that we not only construction costs and associated debt service, but also fully account for long-term operating and maintenance costs. True financial stewardship means planning for the full lifecycle of every investment and also knowing when to say no.