Show Me the Money!

The City recently authorized closing two deals to sell city property and apply the proceeds to the costs of the new city hall known as Downtown West. The old post office on East Eighth Street sold for $1.5M and the existing council chambers and municipal court building sold for $1.155M for a total of $2.655M.

Prior budget documents have indicated that $6,249,018 in cash would be available to apply to the construction of Downtown West.

Bonds had been sold when the City purchased the old Albertson food store to convert it into a city hall.  When plans changed and the old Albertson store was sold for $3.5M, the proceeds were banked and the original bonds continued to be paid down.

Lets examine the cash elements earmarked for Downtown West.

Albertson proceeds       $3,500,000
Subtract architect fees ($1,014,182)
Old Post Office sale      $1,963,200
Council Chambers        $1,200,000
Visitor Center                $   600,000
Total                              $6,249,018

Observe that both property sales did not meet expectations and the City has decided not to sell the Visitor Center at this time.

The net cash available to contribute toward construction of Downtown West is $5,140,818. And occupancy of Downtown West is projected for early in 2019.

So where is the shortfall of $1,108,200 going to come from?  More bond sales, higher than budgeted revenue, or rearranging other budget items?  Stay tuned!