Harrisville council approves parameters to seek $3.5 million in bonds for police and public safety building

Harrisville City Council on Tuesday adopted a parameters resolution authorizing the city to pursue up to $3.5 million in sales and franchise tax revenue bonds to help fund a proposed police and public safety building.

Council members approved the measure by roll call after an extended presentation and public comment on the project’s costs, design and ongoing city finances. The vote recorded Councilmember Faucette, Councilmember Kristensen and Councilmember Jackson in favor; Councilmember Hamilton also voted yes; Councilmember Weiss was excused. The resolution authorizes a bond issue not to exceed $3,500,000 in principal, a maximum maturity of 26 years and a maximum interest rate of 6.5 percent; it is a parameters resolution that starts the public process but does not obligate the city to close on the bonds.

City staff and the police chief told the council the existing city hall building (constructed 1989) was not designed to meet current police operational needs. Presenters described limited, steep stair access to the basement, cramped evidence and interview rooms, insufficient ventilation in evidence packaging areas and security gaps that complicate safe prisoner handling and victim interviews. The project budget shown to the council lists a $12,500,000 construction cost and $1,300,000 in professional architectural and engineering fees; the city previously issued $9,000,000 in sales-and-franchise-tax revenue bonds in 2023 and is proposing the additional $3,500,000 to complete the project.

In presenting financing options, Marcus Keller of Cruz & Associates, the municipal advisor, told the council the city is approaching federal tax rules that require timely spending of tax‑exempt bond proceeds and urged a prompt decision on whether to issue the additional bonds. "We need to go quick," Keller said, noting the city’s options if it chose not to move forward would include defeasing or returning the earlier bond proceeds. Brandon Johnson, bond counsel with Barnaby Johnson, reiterated that adopting the parameters resolution begins a public process and does not bind the city to close on the bonds; he described the numeric limits in the resolution as state‑required maximums that can be lowered later.

Staff outlined the funding plan: the city issued $9,000,000 in 2023 and is proposing a $3,500,000 issuance in 2025; some professional fees and interest are already being paid from bond proceeds. Remaining funding sources the presenters cited included sale of the current city hall property, expected future general revenue increases tied to growth and a portion of the city’s capital improvements (often referred to as the rainy day fund). Staff said the proposal calls for using up to 15 percent of the city’s capital improvement balance (the city referred to the larger 35 percent maximum rainy day figure in state guidance) to help cover debt service, leaving a buffer for the remainder of the fund.

Council members pressed staff on several points: whether the project could be built within the cost estimate, whether the city would need a truth‑in‑taxation increase, what happens if the construction bids exceed estimates, and ADA/access issues with the current building. Staff said the parameters resolution being considered tonight will trigger required public notices and a public hearing at the next council meeting; the city plans an informal public open house on April 29 to display architectural drawings and answer questions, followed by a formal public hearing on May 13. Bond counsel and the municipal advisor said the city could still withdraw before closing if market conditions or bids made the project impractical.

The council adopted the parameters resolution and directed staff to post the notices required under state law, schedule the public hearing and hold the open house. If a petition signed by 35 percent of active voters is filed within the statutory window after notice, state law would require the city to place a bond question on the ballot.

Ending: The council’s action tonight authorizes the next steps in a multi‑month process: notices, a public hearing and final bond decisions. Staff and bond advisors said the council could still choose to stop the process before closing; the next public opportunity to comment is the April 29 open house and the May 13 public hearing at the council meeting.