The New Prague City Council meeting on November 4, 2024, focused primarily on the budget and planning for a significant construction project, with discussions centered around cost estimates, tax implications, and funding strategies.

City officials reported that the estimated budget for the construction project has stabilized at approximately $12 million, down from an earlier estimate of $12.37 million. This figure includes a contingency fund to address potential changes during the final design phases. The original planning budget was set at $9.4 million, but costs had initially risen to around $10 million during the schematic design phase. The city is optimistic about the current bidding environment, noting a softening market that may favor contractors looking for work.

The council discussed the timeline for moving forward with the project, aiming to finalize contract documents by the end of 2024 and prepare for bidding in January 2025. Construction is anticipated to begin in the spring of 2025, with completion expected by fall of the same year.

A significant part of the meeting involved discussions about the potential tax impacts of the project. Estimates suggest that homeowners with properties valued at $350,000 could see an increase of approximately $256 in annual property taxes, which translates to about $21 per month. The council reviewed documents outlining the projected tax capacity rates, which have risen from 50.4% to 52.5% due to changes in the city’s tax capacity.

Council members expressed concerns about the rising tax rates and the overall financial burden on residents. There were calls for exploring alternative funding options beyond general obligation bonds to mitigate the impact on taxpayers. The council is also considering potential federal funding opportunities, with discussions about securing up to $30 million from the U.S. House of Representatives.

As the meeting concluded, council members acknowledged the need for further exploration of funding strategies and emphasized the importance of making informed decisions to balance project needs with taxpayer considerations. The next steps will involve continued work on construction documents and further discussions on financing options before moving to the bidding phase.