$15 Million Schulenburg City Hall Project Paused

The Schulenburg City Council tapped the brakes on multi-million dollar project to renovate the downtown City Hall building and the police station.

The Council met Tuesday night, March 24, to consider a resolution to authorize the City to borrow up to $15 million through certificates of obligations to fund the project. City Administrator Tami Walker said several members of the public asked the Council to reconsider the amount.

The City has hired the architecture and engineering firm PGAL to conduct an assessment of the two buildings. The historic City Hall building suffers from major structural problems due to water intrusion. The Council has wanted to move the Council chambers from the Police Station to City Hall, which would provide additional space for the police department.

Walker said PGAL estimated a cost of $11.5 million to renovate both buildings. Walker said she and Public Works Director Darryl Moeller proposed adding some additional funds to that amount to cover rising costs of materials and financing costs. If any money was left over, she said, the City could use it on water or wastewater improvements, such as a new water well or upgrades at the Babylon Ln. Sewer Plant.

However, at Monday’s meeting, some members of the public urged the Council to focus on the building renovations. The Council ultimately deferred action on the resolution until April 6.

Ordinarily, local governments must seek voter approval in order to borrow money. One exception are certificates of obligation, also known as “COs.”

According to a publication from the State Comptroller’s Office, “COs provide local governments with important flexibility when they need to finance projects quickly, as with reconstruction after a disaster or as a response to a court decision requiring capital spending. But the way COs circumvent voter approval has made them controversial in the past, leading to 2015 legislation restricting their use.”

In 2015, the State Legislature prohibited the issuance of COs for any project voters rejected in the preceding three years. That could come into play in Schulenburg. There’s already talk around town of a petition for voter approval.

If the Council passes the resolution on April 6, it would kick off a 45-day waiting period. During that time the City must post a public notice informing the community about their intention to take on debt. If five percent of the registered voters in the City sign a petition before the end of the 45day period, the City must call an election. Voters will then decide whether or not to borrow the money.

Walker said that if an election is needed, it would take place in November.