City Hall Project - $24mm Certificate of Obligation

The following information concerns the property the City purchased (at Lakeview and Jersey), the scope of the City Hall construction project, and the financing of that project.

During the May 14th City Council meeting, Council considered a resolution authorizing the City to enter into a contract with an architect to begin drafting plans for the remodel/renovation/redesign of the new City Hall on the property purchased from the church. The preliminary design plans were developed by City Staff working with that architect. During a February Council work session, the City Manager and Council discussed the scope of the potential project, including three options.

The agenda is here

https://www.jerseyvillagetx.com/upload/page/0326/docs/2025/Packets/2025-02-12_Work%20Session_Agenda%20Packet%20WEB.pdf

- and the Minutes of the meeting are here:

https://www.jerseyvillagetx.com/upload/page/0326/docs/2025/Minutes/2025-02-12_%20Minutes_of_Regular_Session%20WEB.pdf

It appears that the specific remodel/renovation/redesign plan (Option A) discussed at the work session is moving forward - without any further consideration of other alternatives or several important factors.

City Council briefly discussed the City Hall project during the May 12th Budget Meeting. There were differences of opinion among Council as to the precise scope of the remodel/renovation warranted or acceptable, and the estimated cost.

Consequently, during the May 14th Council meeting, when the resolution authorizing the City to execute the architect’s contract was presented, I opposed it because, in my opinion, it is premature to make that decision and move forward. I requested a 60-day delay on the decision because I believe the City has not yet fully evaluated its ability to use the existing facilities with a potentially less expensive remodel/renovation (as compared to the estimated $21mm remodel/renovation/redesign developed by the architect and presented by the City Manager).

Council Members did not agree to my request to delay the vote for 60 days. Council noted the City has delayed the decision to construct a new City Hall for far too many years, and stated the project has to be started now.

I agree that the City needs to work diligently to replace City Hall, just as I agreed with the City’s decision to purchase that property. However, our City is facing significant budget challenges. The City will be issuing a bond for up to $20mm in debt to repair and replace critical water and sewer system infrastructure over the next five years. Before moving forward, Council must carefully consider the estimated cost of this City Hall project and the impact that the debt that is necessary to finance this project (up to $24mm) will have on taxpayers.

The City is moving forward on the remodel/renovation project (Council approved the resolution to contract with the architect by a vote of 4-1). Under the circumstances, does it make sense to position the City to spend $21mm to remodel/renovate/redesign an existing seven building complex? Given the cost and potential impact on taxpayers, should the City more carefully evaluate its other options? For example, could the City utilize the buildings (at least for the next few years) with only the absolutely critical repairs, or does it make more sense to demolish the entire structure, and build a much more modest, functional City Hall?

Ultimately, a new City Hall should be designed and built to serve this community well into the future. Funding this project, however, will require that the City borrow a substantial amount of money (see below). Consequently, the City needs to proceed very carefully.

Residents should be aware of these important decisions: to proceed with the remodel/renovation/redesign as it exists, or to carefully consider other options.

At the same May 14th meeting, City Council approved a resolution preserving its right to call for a $24mm Certificate of Obligation (a type of bond which does not require voter approval) to fund the City Hall project. The CO has not yet been approved by Council - that vote comes at a later date. Council has simply approved taking the steps to preserve its right to approve such a bond (due to potential legislation which could limit the City’s ability to incur debt).

Considering the way the Pool Bond played out, residents might question the City’s decision to potentially issue debt (without voter approval) for the remodel/renovation of the City Hall project.

If these issues matter to you, speak up, and make your opinions known. If you support the plan, let your Council Members know. If you oppose it, let your Council Members know. Call or email the Council Members who represent you, and tell them what you think.