Council presses staff on $1.9M‑a‑year police building lease and option to buy

Director Hall and city administrators reviewed debt service and a growing lease-related line tied to the police station, prompting councilors to ask whether purchasing the building or bonding could lower long-term costs. Staff explained the lease/amortization breaks into two monthly components — "So we pay a lease of $123,010 a month," Hall said — plus a $35,000 per month lease portion.

Deputy Administrator O’Malley and Administrator Cainrath referenced prior executive sessions and a previously negotiated amortization schedule; staff said a one-time lump-sum catch-up payment of approximately $115,803.90 is scheduled for July 1, 2026 to reconcile deferred amounts.

Councilors asked about options: purchasing the building would require a voter referendum because of the amount and the city would need to evaluate bonding mechanics and current interest rates. Staff said the interest rate on the existing arrangement with Plats (the vendor) is comparable to municipal bond rates, and that they would provide the amortization schedule and interest figures to councilors for a follow-up discussion.

No formal action was taken at the workshop. Staff committed to provide the amortization schedule, current interest rate details and analysis of whether adding the purchase to the LCIP or asking voters to bond for acquisition would reduce net costs.

The issue remains budget‑sensitive given the multi‑million-dollar annual lease/amortization burden and councilors’ interest in whether a purchase could be more cost‑effective over time.