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Financial advisor outlines $39.5M bond option, projects modest tax impact
Summary
Jeff Peters, the city's financial advisor, described a lease-rental bond approach that could fund Scott Park and the aquatic center with about $39.5 million in bonds, a proposed $5 million cash contribution from the Economic Development Income Tax fund, and an estimated tax-rate impact just under 15¢ leading to roughly $132–$149 per median homestead annually.
Jeff Peters, the city's financial advisor, presented a financing plan that would likely use lease-rental bonds issued through the redevelopment commission to fund park and aquatic center projects. Peters said the package under discussion totals about $39,500,000 and that the redevelopment commission would pay for park and pool engineering, a roundabout and pedestrian crossing; the mayor proposed contributing $5,000,000 from the Economic Development Income Tax fund to reduce borrowing.
Peters said the annual repayment stream would be roughly $2,965,000 and estimated a tax-rate impact of just under 15¢, which would amount to about $149 a year for a $231,500 homestead under the high-end scenario. He noted the public disclosures and hearings required for bond issuance and said numbers would be refined before sale — currently targeted for an autumn marketing period — and could change depending on market conditions and the scope of bonds sold.
Council discussed publishing conservative (higher) numbers up front to avoid later delays and the use of a replacement asset in lease-rental financings to avoid interest payments during construction.
