Cost Estimates & tax Impacts

Cost Estimates

Cost estimates for each phase of the project are outlined below and include the necessary bond financing cost.  The total figure noted here is rounded to $9.64 million for simplicity throughout the information prepared by the City of Moscow.

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


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%. 

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 ten-year bond period.  The chart below outlines the tax impact for a variety of home values.  It is important to note that Latah County Assessor sets the taxable value; it 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