While hot-button issues like transgender healthcare protections and homelessness dominated the headlines, Portsmouth City Council quietly approved a major financial move at its April 28 meeting: discussing borrowing $4.5 million from the city’s general fund to finish the new City Building project.
Council members voted unanimously in favor of the plan, which calls for the money to be reimbursed later through the issuance of bonds.
Before casting their votes, council members discussed several options, including issuing bonds for amounts between $4 million and $4.5 million and considering tapping the Capital Improvement Fund instead. Ultimately, they agreed that borrowing from the general fund and repaying it with bonds offered the most flexibility.
Background: A Deal Years in the Making
The city’s journey to a new municipal headquarters began with a building swap: Portsmouth traded the long-vacant Marting’s Building to the Southern Ohio Port Authority in exchange for the former Fifth Third Bank building downtown.
The plan was to renovate the bank into a modern City Building. However, rising inflation and construction costs have complicated the project. By 2022, the estimated cost to complete renovations had already ballooned to $4.6 million—well beyond early projections.
Why Borrow?
City officials say borrowing from the general fund is a practical move to keep the project on track without immediately depleting critical reserve funds or capital accounts. By reimbursing the general fund later with bond proceeds, the city aims to spread out the financial impact over time while locking in today’s renovation costs before they rise even higher.
What’s Next?
The city will move forward with finalizing bond details while continuing renovation work at the new building. No official timeline was announced for when the bond issuance will occur or when city offices might move into their new home.