County staff outline $25–$35 million bonding options to replace aging campus boilers and equipment

Spokane County finance and facilities staff presented the Board of County Commissioners on July 22 with financing options to replace aging campus infrastructure, including boilers, switchgear and air‑ handling systems. Staff framed the full capital package at roughly $35 million over several years and offered lower buy‑down scenarios at $25 million to give commissioners options. Staff described four financing scenarios prepared by Northwest Municipal Advisors: 15‑ and 20‑year bond terms at two principal levels (roughly $25 million and $35 million) and provided illustrative annual debt‑service estimates. The presentation noted the county’s unrestricted fund balance (an estimate cited in the packet at about $33 million before final auditor updates), prior internal fund swaps that freed roughly $5.5 million of capacity, and existing capital commitments such as IT projects and other long‑range needs that staff were tracking. Staff also summarized recent legislative changes to REIT 1 and REIT 2 (reported in the meeting packet) and said the county may now legally spend up to 35% of REIT receipts on maintenance and operations, which could free general‑fund dollars for other purposes but would accelerate REIT balances toward negative levels in out years if used at maximum levels. Staff said energy‑efficiency savings from the project are projected to begin in 2028 and estimated roughly a half‑ million dollars per year in utility savings as a placeholder — savings that could be applied to debt service. Commissioners asked about interest‑rate assumptions (packet figures showed illustrative rates: mid‑3% for 15‑year and low‑4% for 20‑year scenarios), useful equipment life and schedule; staff said they would return after the summer recess with specific 15‑ and 20‑year packages and a schedule for a bond sale should the board elect to proceed. Several commissioners said they preferred using REIT funding where possible to preserve general‑fund balances and maximize flexibility for other near‑term capital needs; others noted the urgency to replace systems that are more than several decades old. Staff said a public bond sale timeline typically takes two to three months for preparation and that market conditions and federal policy can change rates; the county’s financial advisors will prepare an updated schedule and six‑month rate history for the board when staff return with final bond packaging.