Posted: 10/15/03

Proposed Wyoming City Hall annex wonít be tied to county library project

Alice Pickering
Wyoming Area Reporter

A new East Central Branch Library for Wyoming is on track and a city hall addition seems likely, but the buildings are not likely to be combined as was discussed in earlier meetings.

County Commissioner Ben Montzka and the Wyoming Area Library Society want to construct the library as a stand-alone building, with room to expand to a second story.

The argument is it makes more sense than having the city hall annex on the second floor of the library, city officials said at the Oct. 6 council meeting.

The city must decide if this is the right time to build the city hall annex, since there is lack of support for a combined building.

City Administrator Dennis Coryell thinks there is room on the site, south of the municipal parking lot, for both buildings, side-by-side, with some room for expansion.

As requested by council, Coryell compiled information about the need for an expanded city hall. From his written comments, ìspace needs have become even more critical.î

The city has ìlittle office space, no storage, no record retention space, a council chamber that is too small,î and no place to hold larger meetings. Coryell said the city will need to add staff in the not-so-distance future, and ìnot a single one of these people will work without an office.î

He also believes it is important to have meeting space for residents and city clients.

Remodeling the existing building for a larger police department and a $68,000 re-facing of the original building (to be converted to a public safety building) could be matched to the new building and include waterproofing and insulation of the existing one.

He believes it would be wise for the city to build the annex now, estimated to cost $1.85 million.

The first reason is that municipal bond interest rates are the lowest they have been in about 38 years, between 4.8 and 5.1 percent. These rates could increase dramatically if the federal government continues deficit spending. He recalls rates of about 11 percent.

Next, the financial impact could be softened, because information about payments on the debt is based on issuing bonds at a 5.5 percent, while the actual interest rate is closer to 4.8 percent, if the bonds are issued before March 2004.

On that difference alone, he estimates that the tax impact could be reduced 15 percent.

Another consideration is that the first payment would not be due until 2005, and therefore not impact tax bills the same year as the recently passed county library levy.

The cost per square foot would be about $135 for what Coryell says would be a ìmedium-quality building.î Adjustments could be made if bids are high or the interest rates climb.

Finally, the cityís financial situation is clearer than last year. The effect of reduced state aid, including LGA, and levy limits were unknown then. Through this year the city knows the amount of the lost LGA and used the information to budget for 2004 without it.

According to the proposed new LGA rules, the city will receive about $38,000 new money, without levying for it. This nearly matches principal payments for a new city annex on the first eight years of a loan.

Consultation with Ehlers Associates resulted in at least two possible ways to finance building construction . The city is committed to bond payments for the fire hall through 2013.

Both financing alternatives for a city annex would postpone a first payment until 2005. The schedules for both the 15-year and 20-year terms would have about the same impact on the total levy until about 2013 when the fire hall bonds are paid off.

While interest payments would gradually decrease, principal payments would stay relatively small, about $50,000 annually; then, begin increasing with the 2014 payment.

As discussed Sept. 15, the first payments would be low, until some of the other payments the city is making are completed.

As for the impact on residential taxes, the estimate for homes valued at $150,000 would be about $79 annually. Each $25,000 valuation would add about $14 to the tax bill. The impact on a home valued at $300,000 would be about $159.

Debt limit for the city is two percent of the market value of residential properties estimated at just under $235 million or about $4.7 million. The city would be within its debt limit.

Based on this information, Coryell recommended proceeding with the city hall annex now.

Council members individual comments also support construction.

Mayor Vern Haag said, ìNow is the time to goî forward with the building considering the low bonding interest rates.

Council member Martin English favors expansion because the physical conditions are terrible for the staff. He believes the city should move forward with the project if physically it is possible to fit both buildings on the block with adequate parking.

Council member Ted Phillips believes the city should go ahead with building even if not part of the library building.

Council member Sandy Standridge said the city should move now when interest rates are low. She said she is ready to ìbreak ground tomorrow.î

It may be possible to work with the same architectural firm that is designing the library, so all construction and renovation can be visually tied together.

Resident Tom Terry believes the present city hall has been too small for too long. He is in favor of letting the library stand alone, build a new city hall and plan for future growth.

Either way the construction is done, he said he wants a public hearing.

Other topics

Coryell announced the insurance services office (ISO) rating for city fire protection has greatly improved due to work of the Wyoming Fire Department. The hard work of Fire Chief Dennis Berry and all volunteers has greatly improved the status of the cityís fire safety.

Coryell said the basis for the improved fire rating is the state-of-the-art equipment, volunteersÇ training, mutual aid arrangements with other local departments, rapid response time, and pipe size for water.

The improvement has dropped the commercial fire rating in the city from 6 percent to a 4 percent and changed the township fire rating from 9 percent to 5 percent. The change is so great that homeowners should see differences in insurance premiums if they notify their insurance companies.

According to Engineer Lee Elfering the developer will sign documents to allow the city to do the work necessary to stabilize the back yard that is slowly being washed into Ashton Lake. Assessment of the costs is to be assigned to the Felix property. Sediment from the back yard is being washed into the lake and also onto the neighborís yard south of the property.

Elfering estimates about $18-$20 a square foot to stabilize the earth with a modular wall. He was directed to do a feasibility study before steps are taken to bid or publish to get the work completed. Costs for the work could initially be taken from the drainage fund and replaced when the property is sold.

Building inspector Jack Kramer has been directed not to issue a certificate of occupancy until the problem has been remedied.

At the invitation of Lindstrom and Chisago City police departments, Wyoming representatives met for purposes of discussing a consolidated department for purposes of better coverage. The meeting was scheduled Oct. 8, with Haag, Standridge, and Coryell to attend.

There were initial questions raised by Sgt. Scott Dexter about implications for seniority, rank, schedules and other items. His concern is input from management and the officers. The meeting was scheduled as a preliminary discussion.

Other business

In other business, council:

ïTabled 2004 budget discussions until the next meeting.

ïLearned from Elfering no water from the city towers has affected drainage in Gary Menneís ponds. After consulting with Maintenance Supervisor Bill Eisenmenger, about the schedule, Elfering said, ìI can confidently say that no water came out of that tower.î

ïLeft a decision for washing of city squad cars at the fire station to Fire Chief Dennis Berry.

ïHeard a request from Stars and Strikes of the planning commission to keep the zoning of the proposed site the same. The offer to sell city land to Stars and Strikes is no longer in effect but the option remains for the prospective developers to make a new proposal.

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