Mount Vernon council authorizes up to $29 million in notes for new police station after fiscal review

Mount Vernon — The City Council voted unanimously March 23 to authorize the issuance of notes in an amount not to exceed $29 million to finance construction of a new police station and related facilities, a move proponents said is needed to replace aging facilities and expedite relocation from an unsafe office building.

Councilmember Mr. Maym moved to adopt Ordinance 2026-04 on third reading; the motion passed with all members present voting "yes." The vote followed extended committee discussion, presentations from the city auditor and outside financing and project consultants, and questions about timing and fiscal impact.

Why it matters: City officials said the timing is driven by building condition and the need to consolidate operations. Dan, the city auditor, told council the city currently pays a little over $2 million a year in debt service and that several large obligations will mature in the next three years, producing roughly $1.1 million in reduced debt service and about $362,000 in general-fund relief by the end of 2029.

On project cost and schedule, Ashley Sam, the owner’s representative with Pazuti Solutions, said the latest pricing based on 50% construction documents puts the project budget at about $26.2 million and that the council’s $29 million authorization is intended as a conservative cushion. "Based on the 50% CDs, we think that you are at approximately $26.2 million for the project budget," Sam said, adding that the team expects 100% drawings soon and an additional two to three weeks of pricing work to establish a guaranteed maximum price (GMP).

Financing mechanics: Andy of Bradley Payne walked through constitutional and statutory borrowing constraints, explaining the difference between direct debt limits (a 5.5% unvoted valuation cap) and the indirect "10-mill" limitation shared with overlapping taxing districts. He said the city will use income-tax revenues as the repayment source, allowing a planned conversion from temporary notes to income-tax revenue bonds next year and temporarily using about 4.34 mills of the theoretical capacity. "We are applying the income tax revenues as a source of repayment," Andy said, noting revenue-backed debt can be exempted from the direct debt cap.

Council and staff said they prefer to wait for the final GMP before issuing notes so the actual borrowing more closely matches the required amount. Procurement and bidding are expected to begin in mid–late April, with GMP and contract steps to follow.

Alternatives and safeguards: Auditor Dan and other officials described several mitigation measures to protect the general fund: administrative charges to utilities, conservative budgeting, potential paydown options if excess cash is available, and use of reserves. The treasury reported a rainy-day fund balance of about $3.1 million, providing additional short-term buffer.

What’s next: Council’s vote authorized staff to proceed with the temporary financing and the team will return with final GMP documentation and a bond issuance plan. Construction would begin after council authorizes the GMP and the construction manager is ready to break ground.

Votes and procedural details: Ordinance 2026-04 was moved by Mr. Maym and passed on third reading with the following recorded "yes" votes: Mr. Miller, Mr. Severs, Miss Kener, Mr. Maym, Mr. Jacqueline, Mr. Ruckman and Mrs. Hager. The ordinance enables temporary note issuance and contemplates conversion to income-tax-backed bonds next year.