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Council hears updated loan figures tied to ODOT bridge project; staff recommends 25‑year payback
Summary
Staff updated council on revised cost estimates tied to a bridge project and an OTIB loan: design costs around $596,000 (today's dollars), worst‑case borrowing roughly $750,000, and staff recommended a 25‑year payback (lowering rate from 3.99% to 3.77%) to save roughly $129,000 over a 30‑year term.
Lily brought the council back to resolution 26‑R‑14 to present updated cost and loan figures after new information increased earlier estimates. She said design costs are “around $596,000” in today's dollars and that, accounting for inflation and staging, the city could face “a loan approximately for 750,000” in the worst‑case scenario. Lily cautioned those figures were the highest‑possible outcome if the city borrowed the full amount up front; she explained that because ODOT contractors will invoice as work proceeds, the city's borrowing and payments should stage with progress and could be lower in practice.
Lily recommended a 25‑year payback rather than a 30‑year term, citing lower total cost: “By doing a 25 year loan, our interest rate will be 3.77% instead of 3.99. So we're saving on interest, and those 5 years of payments is a difference of about 129,000 to the city.” She provided worst‑case annual payment figures (about $44,000 a year under the full‑draw scenario) and said she had signed the construction contract but not the loan documents; she reminded the council that the prior vote had already passed and that a motion would be required to reconsider the earlier decision.
