The proposed $48 million Senior & Community Center adjacent to City Hall will be funded, in part, by $16,000,000 "council-manic" bonds. These bonds don't require voter approval or increase taxes and will utilize future revenues to pay the bonds.
Council voted 5-2 (Carson, Kahn) for "Option 3" bonding at their March 8th Study Session. They chose a $16,814,039, 20-year council-manic bond bearing 3% interest. Total debt after 20 years is $21,000,000. Interest after 20-years is $5,393,340.
"One-time money" ($16,814,039) from 2021 construction taxes will not be spent. Enormous construction activity in Redmond's urban centers generates one-time money. The City accumulated $11,066,344 one-time money in 2020, as well. According to the Council President the funds must be used for capital expenditures, not operations.
Councilmember David Carson prefered "Option 1." He liked that $2 million in interest is saved up front over the life of the loan. "Not knowing what could come, paying the price down as much as possible is a safe, conservative route," said Carson.
CM Kahn was present and quiet.
-- Bob Yoder, 3/15/2022
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