The Nebraska City City Council recently created a municipal facilities corporation (MFC) to give the city another tool in its tool box when it comes to financing city projects.
The city began investigating forming an MFC in July 2018 as a possible funding source for the replacement of the heating, ventilation and air conditioning system at the Morton-James Public Library.
 John Trecek, vice president of public finance for Ameritas in Omaha, outlined funding options for the city council at its July 2, 2018, meeting and offered an MFC as one funding option.
He explained at that time that an MFC is an entity that exists to fund projects and issues bonds to fund the project costs.
In November, the council began discussing the formation of an MFC in Nebraska City.
Nebraska City Finance Commissioner Gloria Glover said at the Nov. 5, 2018, meeting  that the MFC was an option the city probably should have.
City Street Commission Vic Johns agreed, calling it “the best of both worlds.” 
He noted having the MFC bond rates and bank loan terms to compare would be helpful going forward.
City Administration Grayson Path outlined the benefits of an MFC for the council in a memor presented at the Nov. 5 meeting.
“Given that the MFC would have the ability to pursue bonding, a comparison of bond rate to that of loan/lease rates could be done to assist in negotiations,” he said.
Path added that the MFC could help expedite the bonding process.
“An MFC, being a nonprofit corporation, may have access to  sources of funding that are not available to municipalities,” he said.
Path warned that an MFC should not be used to avoid a bond election, particularly one involving facility construction.
The Nebraska City MFC was incorporated on Dec. 31, 2018. Board members will be selected by Mayor Bryan Bequette.
The council voted at its Jan. 7 meeting to add the requirement that projects funded by the MFC would be subject to a required public hearing.
Path said the requirement would give the public a chance to know about upcoming projects and have the opportunity to comment on them.
“Citizens should have the chance to speak up if they want to ask about projects,” he said.
Path presented the estimated costs for funding the library HVAC project through the MFC vs. through a bank loan.
Because bank interest rates are low presently, council members directed him to obtain the terms for a 10-year loan so they can be discussed at the next council meeting on Jan. 21.