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EDA hears police‑station funding options as bond rates rise; city council decision window may be short
Summary
Staff told the EDA that the city council asked for analysis of two police‑station funding routes—a CIP bond referendum or an EDA lease‑revenue bond—and warned that a decision to send a referendum to the ballot may be required within roughly 30 days because of county deadlines; staff noted recent bond yields rose to about 5.1%.
City staff briefed the New Prague Economic Development Authority on two primary options to fund a proposed police‑station project: a capital improvement project (CIP) bond that would go to voters via referendum or an EDA lease‑revenue bond in which the EDA would issue bonds, own the building and lease it to the city until the bonds are retired.
The director said the city council asked staff to analyze costs, timelines and other implications. He told the EDA the city attorney advised that if the council intends to put a referendum on the ballot, a decision likely must be made within roughly 30 days to meet county submission deadlines. “They’ve asked myself and staff to kind of explore what that ultimately could cost and what that would look like as [a] timeline,” the director said.
Staff described recent bond‑market movement: an earlier sale priced around 4.4%, while the rates quoted at Monday’s council meeting were about 5.08–5.1 percent. Staff noted EDA lease‑revenue bonds are typically a bit more expensive than city bonds; during the meeting an earlier estimate put the EDA lease route roughly a tenth of a percentage point higher than the initial city estimate, though exact project cost impacts were not available and staff did not present final numbers.
Members discussed precedent and mechanics: the EDA lease route would be new for New Prague but has been used by other cities. One member recounted prior local arrangements where the EDA financed facilities and later transferred ownership to the city, noting it as a viable though sometimes costlier alternative.
No funding decision was taken at the meeting. Staff said they will continue to analyze rates, timelines and legal steps and report back to the city council so that councilors can decide whether to place a referendum on the ballot or pursue the EDA lease route. The EDA did not act on a financing choice at this session.
