Mount Vernon council OKs application to USDA for new police station financing

Mount Vernon City Council voted April 14 to authorize the administration to submit an application to the U.S. Department of Agriculture to pursue financing for a new police department building at 71 Siker Road.

The application, approved by a unanimous roll call vote, allows city staff to seek a package that combines a low-interest loan and a smaller grant; the administration and consultants said the loan portion is the primary financing tool. "The primary purpose is the low interest loan," Brian Ball, Safety Service Director, said, adding, "there's substantially more loan and substantially less grant available, nationwide." Ball said submitting the application does not obligate the city to accept the USDA loan or grant.

The measure was presented as a step in a multi-stage process. Ball and other administration representatives described the application as necessary for USDA to review the architect contract and the project's terms: "they won't review it until we have the application turned in. And we can't turn the application in until we have permission from city council," Ball said. Ball and other officials said the city will return to council for later approvals — including permission to accept financing and to enter into a construction contract once the architect proposes a guaranteed maximum price.

Why it matters: Administration and outside consultants framed the application as time-sensitive because the city holds a $2,000,000 one-time strategic fund earmarked for construction and the window for that funding is limited. Ball said the city has been meeting with USDA staff and local consultants and wants to get "the ball rolling" because state-level strategic funds have deadlines.

Council members asked about financing structure, interim borrowing during construction and whether voter approval would be required for debt. Ball said USDA financing functions like a loan backed by federal treasuries and that the city will need interim financing during construction — likely from bonds or local bank loans — because USDA reimbursements are paid after project completion. He added that the city has a statutory maximum indebtedness; the council can increase debt only up to certain limits without voter approval.

The resolution (2025-41) authorizes the Safety Service Director to prepare and submit the USDA application and was adopted after council suspended the three-reading rule. Ball and administration staff said further council approvals would be required before accepting any loan or signing construction contracts.

Ending: Council members and administration said the application is an early but necessary step to preserve eligibility for federal aid and to allow USDA staff to review project documents as the city continues project design and cost estimating.