Refinancing creates sustainable funding at current rate
Brian Coddington, Communications Director, 509.625.6740
Monday, April 28, 2014 at 1:01 p.m.
Spokane Mayor David Condon and City Council President Ben Stuckart announced today a refinancing proposal to maintain and enhance streets and reinvigorate Riverfront Park using the same dollars citizens of Spokane are already investing.
Currently, Spokane’s citizens pay 91 cents per $1,000 of assessed property value toward the repayment of three street and park bonds. With strategic refinancing, the dollars generated could be used to provide:
“Just as citizens have refinanced their homes and used the savings to make other investments, we are proposing sustainable funding for streets and reinvigorating our parks all without asking citizens to reach deeper into their pockets,” Condon said.
Spokane citizens are currently repaying the 2004 Street Bond, the 2007 Pools and Play Bond, and the 1999 Park Bond. That includes 57 cents per $1,000 of assessed property value, or $57 a year on a $100,000 home, for repayment of the 2004 Street Bond. Payments are currently scheduled to continue for another 16 years without any additional street improvements.
For that same 57 cents per $1,000 of value, a levy would generate around $5 million a year to fund new street work. Those funds would be matched with state, local, and federal transportation and utility dollars to support about $25 million in street improvements annually.
A similar refinancing opportunity is possible for parks. Citizens currently pay 34 cents per $1,000 of assessed value, or $34 a year on a $100,000 home, for repayment of the parks bonds.
Debt from the 1999 bond is set to be retired at the end of the year, while the 2007 bond payments are scheduled to continue through 2027, without any additional park enhancements. For that same 34 cents per $1,000 of value, a new bond would provide $60 million to implement the new Riverfront Park Master Plan and still pay off the remaining debt from the 2007 issue.
“Citizens consistently remind us how important streets are to them,” Stuckart said. “They also talk about reinvigorating Riverfront Park, which has been a great community asset over the past four decades. They want us to maintain what we have and make improvements to the street and park systems. This proposal meets both of those needs and fulfills an important citizen priority.”
The streets and parks refinancing proposal is another component of a strategy to align needs to resources while keeping services affordable to citizens. The City has compiled a list of infrastructure needs in a 6-year Citywide Capital Plan and is working on a comprehensive strategy to address the $732 million in needs. Other pieces include a realistic plan for utilities while limiting rate increases to inflation and building into the 2014 budget process the start a much-needed replacement fund for police and fire vehicles.
