Pontiac City Council outlines $37M funding plan for new recreation center

The Pontiac City Council convened on March 4, 2025, to discuss several key agenda items, primarily focusing on the funding and financing strategy for a new recreation center. The meeting began with a special presentation by City Manager McIntyre, who addressed questions regarding property tax discounts and the financial impact of the escrow program on residents.

Following this, Deputy Mayor Stevens led the discussion on the recreation center, emphasizing the need for clarity on how the city plans to finance the estimated $37 million project. The Deputy Mayor provided a historical context, noting that previous emergency management led to the closure of four recreation centers, with the community expressing a desire for new facilities. In 2016, voters approved a millage to support youth recreation activities, resulting in $3.2 million being allocated for this purpose.

The presentation detailed the funding sources for the recreation center, including $15 million from the general fund, $3.2 million previously set aside, and $6.8 million in American Rescue Plan Act (ARPA) funds. The city plans to issue bonds to cover the remaining costs, assuring that this would not require new taxes. The financial team confirmed that the city has maintained a strong cash position, with $56.6 million available, which would still leave a healthy balance even after funding the project.

Council members raised questions about the city's bond rating and the repayment of borrowed funds, with assurances that existing tax revenues would cover the costs without imposing new taxes on residents. The discussion also touched on the city's unique financial status, having no outstanding debt, which positions it favorably for future growth and capital projects.

As the meeting progressed, council members expressed their support for the recreation center project, recognizing its potential as a legacy initiative for the community. The next steps include introducing a resolution to finalize the building's design and initiating the bond issuance process.

In conclusion, the Pontiac City Council's meeting highlighted a significant step towards enhancing community recreation facilities, with a clear financial strategy that aims to ensure sustainability and growth without burdening taxpayers. The council's commitment to transparency and fiscal responsibility was evident throughout the discussions, setting the stage for future developments in the city.