Cost Estimates & tax Impacts

Cost Estimates

Cost estimates for each phase of the project are outlined below and includes the required bond financing cost.

Project

Cost

New Police Facility$7,887,207
Fourth Street Facility
Repair, Renovate, Repurpose
$1,555,458
Paul Mann Building
Repair, Repurpose
$132,043
Bond Financing Cost$118,996
Total Project Cost$9,638,704

The total figure noted here is rounded to $9.64 million for simplicity throughout the information prepared by the City of Moscow.

Tax Impacts

The cost for this project (including associated bond fees) totals $9,640,000. As a result of the City’s excellent financial standing and AA- bond rating, the projected interest rate the City would receive for a 10-year bond is 2.21%. A 10-year term was chosen by the City Council as it provides an interest savings of more than $2,200,000 to the taxpayers when compared to a 20-year term. 

The proposed 10-year bond would have an annual cost to the taxpayer of $85 per year, per $100,000 of taxable valuation. For example, a home with an assessed valuation of $250,000, with a $150,000 taxable value after deducting the $100,000 Idaho State homeowner’s exemption would see an annual property tax increase of $126.86 per year over the 10 year bond period.  The chart below outline the tax impact for a variety of home values.  It is important to note that the taxable value is set by the Latah County Assessor and is not affected by the sale or purchase price of a home. 

Home Value

Taxable Valuation

Annual Cost to Tax Payer

Monthly Cost to Tax Payer

$200,000$100,000$84.75$7.05
$250,000$150,000$126.86$10.57
$300,000$200,000$169.14$14.06
$350,000$250,000$211.43$17.19
$400,000$300,000$253.71$21.43

The City has held voter-approved bonds in the past, most recently for construction of the Hamilton-Lowe Aquatic Center and Fire Station #3. These bonds have all been paid on or before maturity and in full, and at this time the City has no outstanding general obligation bonds.

Interest Savings with a ten-year bond are significant. The option of a 15 and 20-year bond were considered as well.  Given the higher interest rate and longer term, there would be an additional $1 million to $2.6 million in interest paid.  As such, the City has chosen a 10-year term to ensure the proposed project wraps as quickly as possible, making the most of bond dollars specific to this project without generating unnecessary additional interest costs