[Vision2020] Property Taxes

[Tom Hansen]

Courtesy of the City of Moscow Bond Election Information Brochure (Bond Election - May 21, 2019) at:

https://www.ci.moscow.id.us/DocumentCenter/View/17542/May-21-2019-Bond-Information-Booklet

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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.

 

Tax Imoacts

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.

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

The City Council chose a 10-year term as it provides an interest savings of more than $2,200,000 to the taxpayers when compared to a 20-year term. The options of 15- and 20-year bond terms were also considered, but given the higher interest rate and longer term, there would be an additional $1 to $2.6 million in interest paid. As such, the City has chosen a 10-year term to ensure the proposed project wraps up as quickly as possible, making the most of bond dollars specific to this project without generating unnecessary additional interest costs.

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Seeya 'round town, Moscow, because . . .

"Moscow Cares" (the most fun you can have with your pants on)
http://www.MoscowCares.com
  
Tom Hansen
Moscow, Idaho

On Jul 10, 2019, at 7:57 AM, "rhayes at frontier.com" <rhayes at frontier.com> wrote:

> Daily News yesterday reported that property taxes will go up 25% next year mainly due to the police station bond. I do not think that is what the city said was going to happen when they were hyping the bond vote. Am I correct in this? 
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