Hurricane sets a $27 million ceiling for police station and city hall bonds

Hurricane's Municipal Building Authority on Oct. 1 authorized up to $27,000,000 in lease revenue bonds to build a new police station and a new city hall. The resolution sets limits; it does not borrow the money. ^[1][3]

Board member Dave Imlay moved to approve Resolution 2026-33, subject to raising the maximum interest rate from 6% to 6.5%, and Amy Werrett seconded. The minutes record that it carried unanimously by roll call. Mayor Clark Fawcett and council members Joseph Prete, Imlay, Lynn Excell, Werrett and Merlin Spendlove were present. ^[1]

The limits

The authority's public notice sets the maximums: $27,000,000 of principal, an interest rate of no more than 6.50% a year, maturity in no more than 31 years and a sale price of at least 98% of principal. ^[3]

The draft in the meeting packet listed a 6% maximum. Staff wrote that the rate was a ceiling, not the expected rate. At the meeting, Zions Bank's Mark Anderson recommended raising it to 6.5% for flexibility. ^[2][1]

The notice says the bonds are payable solely from lease revenues from the city, under a lease that is renewable each year. It estimates total debt service of $50,618,864.31 if the bonds are held to maturity. ^[3]

The notice of intent puts the expected average annual lease payment from the city at $2,024,754.57. The hearing notice lists $1,041,000 of existing authority debt outstanding, secured by lease revenues. ^[4][3]

What was said about funding

City Manager Kaden DeMille said the city has about $17 million in savings, plus proceeds from selling the current police station, and expects to put about half down, according to the minutes. He said the city will not raise taxes for the project, and that payments on other buildings would go to it once those debts are retired. ^[1]

Fawcett said the resolution sets a maximum, not the actual amount. DeMille said he expects the project to cost less than $27 million and would not proceed if the city had to borrow the full amount at the highest rate. ^[1]

Werrett asked whether the council would vote again once the numbers were set. Anderson said the resolution delegates acceptance to designated officers. Fawcett said he wants the item to come back to the council before acceptance. The motion as recorded does not include that condition. ^[1]

Building costs

Reconvened as the council, members unanimously approved Resolution 2026-34, covering the campus lease and bond documents, on a motion by Excell seconded by Spendlove. ^[1]

DeMille gave costs of $494 a square foot for city hall and $451 for the police station. He said the contractor carries a 9% contingency, 3% of it for cost escalation, and the city adds an 8% contingency. ^[1]

A public hearing on the bonds is scheduled for Nov. 5, 2026, at 6 p.m. The notice opens a 30-day period to contest the bond documents. If petitions signed by at least 20% of the city's active voters are filed, the authority must hold an election before issuing the bonds. ^[3]