City Manager Suggests How To Fund Rec Center & Public Works Renovations
Decatur Metro | June 8, 2010Here’s probably the most interesting suggestion in the city manager’s budget message…
…we recommend pursuing an option that would redirect the funds for the public works facility to construction of the Decatur Recreation Center improvements and pursue financing improvements at the existing public works facility through certificates of participation (COPs).
I sent an inquiry to City Manager Peggy Merriss about this option last week and this morning received a memo on the subject which was presented to Decatur’s city commissioners last night. (I’m not sure if my question inspired the note or I am just so timely it hurts. Either way, I’ll take what I can get.)
The basic crux of the issue is this: $4,275,000 was originally allocated to build a new Public Works Building on a new site. However, according to the city manager, a suitable site “that was affordable and available that did not impact existing single-family neighborhoods” could not be found. She continues, “Therefore, the only option that seems viable is to remain in place and purchase two properties adjacent to the existing facility.”
The city projects this revised option will cost over $8 million, $2 million more than the relocate option, which was originally projected at $5,830,000.
As such, the city manager is suggesting to the city commission that they shift the $3.6 million originally slated as the city’s contribution for the new Public Works building (land revenues and CSD would’ve covered the rest) and repurpose it to renovate the Decatur Recreation Center.
However, $3.6 million isn’t enough to fund the entire $5.7 million Rec Center renovation, which is where financing a new Public Works facility comes into play.
Because the type of financing the city wants to use to renovate Public Works requires that the value of any existing building and land be part of the loan, the city would have to take out an estimated $1.6 million more than it would actually need to renovate and expand the Public Works building. This money would be used to fund the remaining balance of the Rec Center renovation.
In all, the city would have to take out “Certificates of Participation” of either $10 million or $9.1 million in total (depending on whether the facility would provide public works facilities for the school system) to complete both the Rec Center and Public Works building projects. According to Ms. Merriss, this would require a .20 increase in the millage rate (approximately $36/year for an owner-occupied residence valued at $400,000).
And if that wasn’t enough to digest, the city would like to use interest-subsidized Build America Bonds to finance this project, so the Certificate of Participation issue must be decided upon and settled by the end of this year. This will require the city commission to start making decisions on this issue starting at the next city commission meeting on June 21st.
So stay tuned.
I hope this complex funding trajectory doesn’t jeopardize a good, not fancy renovation of Decatur Rec. That department rocks but I have to admit that it’s facilities are beyond retro. The women’s room has improved a little but it used to be just one step up from an outhouse.
I just don’t have it in me to read that a third time to make sense of it. Does all that mean that the plan is to borrow more money and the total bill is going up by $2 million? What about Fire Station 1 and the Police Station?
The city would have to borrow between $9.1 and $10 million to complete both projects.
The $2 million figure is the difference between the projected cost of the old plan for the Public Works building and the new plan…not the actual cost.
Essentially the city has $3.6 million left in bond money (and a little extra) to spend between these two unfinished projects, though it was originally allocated to renovate Public Works. Each costs more than $3.6 million, so the city manager has suggested that the commission could take out $9.1 or $10 million and use it to make up the difference.
The major impetus to do it now seems to be that interest on the loans would be subsidized by the fed.
What I’m finding at the City website is that $4.3 million of the bond was designated for public works and $2.05 million for the Rec center, both (as of a 2008 update) scheduled for completion this summer, along with the Fire Station 1 renovation.
The total public works project estimate (5.8M) was to include CSD money, as it was to be a joint facility. Since the 08 update, the total bill for the two projects has gone from 7.8 M to around 14 M, almost the total principal of the fist bond, which was supposed to pay for them and Fire Station 1. WHat’s the latest price tag on FS1? How about the police station, which seems to keep getting put at the back of the line?
What’s the likelihood of getting the federal interest subsidy? Would our borrowing the money be contingent on getting that subsidy?
federal interest subsidy is available if the city can get the special type of “Build America Bonds” (BABs) issued by the end of the year, for the deepest subsidy. It looks like Congress may extend the BABs type of subsidy for bonds issued next year, but the interest subsidy won’t be as deep, and as of right now, there is no guaranty that Congress WILL actually extend (think the House has passed the extension).
Um, am I the only one whose brain hurts? If I understand correctly, we need to borrow $200 million to relocate the Dairy Queen so that the CSD can move Westchester to a new Public Works building that will be financed through Girl Scout cookie sales? Is that close? I give. Here is my $26 in increased taxes. So much easier than understanding…
To summarize:
$4,275,000 was allocated for a $5,830,000 Public Works building relocation that will now cost $8,000,000 (without relocating).
…then we take the 3.6 million dollars gained from this and….?
‘splain please
panem et circenses
Is a Public Works building a loaf of bread or a circus? Because I’m pretty sure it can’t feed anyone, and it certainly isn’t entertaining.
Today, the Rec Center is projected to cost 5.7 million to rehab, while Public Works will cost 8 million.
There is $3.6 million remaining in bond project money that was supposed to go towards the new Public Works building, however the city manager is proposing they shift the remaining funds over the rec center rehab, and take out between $9.1 million and $10 million to pay for the entire Public Works rehab and the approx. $2 million left to be paid on the Rec Center renovation.
Wow. This might be the most funny thing I’ve ever read on here. Well done!
RachelF, were you paying me the compliment for my witticism? I have to know, as humor without feedback is like a tree in the forest with nobody around. Thanks!
Yes Trying to Follow, a definite compliment. I read it over and over and…each time – I swear – I laughed out loud. I was thinking it would make a great t-shirt…but it might have a limited audience. I would buy one though.
Let me ‘splain it all to you
they are going to raise your already ridiculously high taxes again.
Hah!
Actually, I got that part of the transaction, ‘seems I always do…
As long as they’re spending another 10 mill or so of our money, can they make room in one of the buildings for the CSD administration? After all, the Rec used to be a school.
The Rec used to be a school? I’d heard about Beacon Hill Elementary and Trinity High and even an almost forgotten 2nd Avenue School but never heard that the Rec was a school. What was it? When?
Re CSD Admin in one of the renovated buildings: good call. An add-on to either the Public Works or Decatur Rec facilities, if they’re being renovated anyway, seems like a great place to put the Central Office. Then it would actually be Central again as opposed to way out in Western Decatur. Plus Central Office staff really aren’t using the swings, picnic tables, slides, climbing structures, basketball hoops, and green space at Westchester as much as one would think they would.
I don’t think that’s right. Before the Rec, there was a grand home on that site — maybe a big Victorian, if memory serves. It was torn down to build the Rec for its current use.
Any old-timers know for sure?
Well, at one time it was the site of Col. George Washington Scott’s home, the founder of Agnes Scott–according to the plaque outside. But I do not know when the rec center was built.
I think the Rec Center was built in the mid-60s.
I’m no old-timer, but I’ve got a pic of it!
http://www.decaturmetro.com/2008/07/17/rec-center-renovated-and-revisited/
‘Twas the Murphy Scott Cooper House. A grander version of its neighbor, the High House. The Rec Center was built in the 1950s, but I don’t think it was ever a school. Always the Rec.
Perhaps Just Cranky is thinking of the post office, which now sits on the site of Ponce de Leon Elementary?
2nd Avenue School? That I’ve never heard of. Where was that?
This came up during the 2004 reconfiguration. Only one or two folks seemed to remember anything about it and I believe they said that the building is long gone. I think it was a Second Avenue but maybe it was First Avenue or Third Avenue. No one said whether it was an all-white or all African-American school. I think that the parameters were different before the 1960s–elementary schools didn’t necessarily provide bus transportation and fewer families owned cars so schools had to be located within walking distance of the children who attended them.
No, the Rec wasn’t built as a school. Should have said “used as a school” as in putting overflow classes there when enrollment was up way back. According to some old timers, they put Glennwood classes there.
a suitable site “that was affordable and available that did not impact existing single-family neighborhoods” could not be found. She continues, “Therefore, the only option that seems viable is to remain in place and purchase two properties adjacent to the existing facility.”
Yea, never-mind the promises that were made to the Talley Street Loft community that the pubic facility would be moved in the future. We care about the impact on single family neighborhoods, but not the impact on a tightly knit family community. Not only are they falling back on their promises but they are expanding the noise/impact on Talley Street Lofts even more. Talley Street got the ole bait and switch.
With this economy, it’s time for Decatur to suck it up and make do while we taxpayers try to cope with already ourtrageous taxes. Sorry guys, but enhanced rec services are a luxury in this situation.
Agreed, I think we could stretch the utilty of the existing rec center with some upgrades. I think the present building works with the older buildings around it.
The other side of that argument is that now is the best time to capitalize on low rates, stimulation subsidies, and a hungry contractor market.
All in all I’d rather invest my taxes in more head count for teaching staff and classroom space.
Agree with preferring tax money go towards education above all else but that’s not how it works. Money not spent from one pot can’t be transferred over to the other.
But if they raise my taxes I want it to go for education. At some point we need to decide what we want to pay for. I say that the education of our children comes first. Other resons to raise taxes need to wait for better times.
Um, (she said nervously), I’m thinking you’re joking about Westchester and Dairy Queen, right? I didn’t read the proposal; I need to keep all my brain cells for something else. That WAS a joke, right?
Oops, my comment wasn’t in the right place.
What I wanted to say HERE is that one could argue that improvements to the Rec center do have an educational value, since it enhances the physical education of children as well as adults. Plus, rec center does provide all sorts of classes. The schools very definitely use the recreation center facilities. Now the middle and high school are getting new gyms, so they may not use the rec center so much.
Then put it towards upgrades to fire and police facilities. I’d rather live in a city with state of the art fire and police facilities than a shiny new rec center. Those who want a fancy rec center can join a country club or a private gym.
I strongly agree that rec upgrades are too much of a luxury at this point in time.
We’ve just fully renovated DHS gym, and stadium plus added the auditorium. All of these facilities were sold to voting public as available to all residents. We’ve upgraded a couple of parks in the last few years.
We’ve built a new City Hall, too. That’s enough for now. We can’t do everything at once especially in this economy.
If there is stimulus money to be had for a REC Center project – then it may be worth consideration – that is the only way it would make sense to me . As far as hungry contractor market – I doubt this is leading to substantially lower bids only more availability and quicker completion times.
I still have not heard an explanation from the city on how it was they got there estimates for Station 1 and the Rec Center so incredibly wrong the first time around with the bond referendum and how they now are so certain that the new numbers are right.
Until then, I don’t trust them with YOUR money for these projects, much less my own.
I agree that I want to know WHY the estimates were so waaaaaaaaaaaay off base. I realize that the costs of materials and labor increase, but the differences in what we were told and the actual costs is absurd. It makes me feel like the City will say whatever it takes to get what they want. Why should we have any more faith or confidence in what they tell us now?
I strongly oppose raising taxes right now for a new rec center and will speak out against it. There is just too much hardship out there and it sends a bad message. It was supposed to be paid for from the original bond anyway. If you can’t manage that, you don’t get any more from me.
Just a question to throw out there. Why does the public works facility HAVE to be inside the Decatur city limits which would then forever be taken from potential redevelopment and off the tax rolls. Could cheaper land in adjacent Dekalb County not work? I’m not talking about far away, but within a half a mile or so of the city limits.
It’s a good idea Susan, but it sounds like the city is saying they also looked in areas outside the city limits as well. From the city manager’s budget message…
“Unfortunately, land prices within and adjacent to the City of Decatur, in combination with construction costs, exceed available resources.”
I do not support another tax increase!
The employees at Public Works provide great services for the City, electronics recycling day, picking up trash, etc. Let them all stop for one week and the city would look a MESS. We need to definitely renovate that building so they can continue to provide excellent services for the city.
This is the time when you all need to attend the city commission meeting JUNE 21 and voice your concerns, and have them addressed—OR NOT.
In my mind, the biggest need is a new police station (have you actually been over there? Mayberry looks like a luxurious station compared to ours) and public works facility; the recreation center is adequate for today’s economy, and supposedly, DHS and upgrades to existing parks will fill the city’s needs for the time being.
It doesn’t sound like lumping all these projects together will save the city a lot of money.
Am I right to assume that the City has told the property owners adjacent to the existing public works facility that we have no other option than to pay them whatever they want for their property AND that we have a plan to get an extra couple million for their trouble?