Spencer city hall project cost increase won’t affect taxpayers

Spencer city hall project cost increase won’t affect taxpayers

Renovations on Spencer’s future city hall will cost more than the original estimates, but officials say the increase will not affect taxpayers.

The city council on Monday approved a contract and performance bond on the renovation project for the new city hall, the former Northwest Bank building at 101 West Fifth Street, with Midstates Builders for $1.895 million.

Bids for the project were about $200,000 more than estimates the city had received from CMBA Architects and a third party that CMBA had provide an estimate.


“Where we think the challenge came from was the HVAC system, making the appropriate upgrades to that,” Mack said. “Some of it’s code-related, bringing that up to today’s code, and some of it is just efficiency-related.”

Deputy City Manager and Finance Director Brian Weuve reminded the council that it pre-approved issuing up to $2 million in debt about 1.5 years ago. Still, the council has discussed in committee of the whole meetings adding an additional $500,000 to that.

“Even doing so, we would have zero negative impact to the taxpayers,” Weuve said. “It can fit within our existing rate structure and levies.”


He said the city will decide later whether the debt issuance needs to be expanded and if there are unallocated reserve funds that could be used.

“It doesn’t really hamper us from any future project, being able to finance that down the road,” Weuve said, citing valuation increases and decreased interest rates.

The council’s vote on Monday was unanimous, 5-0, with Ward 1 Councilman Tom Nelson and Councilman At Large Rich Prentice both absent.


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