New Idaho Falls Police station will cost less to finance than expected

IDAHO FALLS, Idaho (KIFI/KIDK) - Building a new police station in Idaho Falls won't cost as much as expected, city leaders said Wednesday.

The city was able to get a lower interest rate on the sale of Certificates of Participation. The certificates are tax-exempt bonds issued by government entities to finance capital projects.

Instead of a 3.25 percent interest rate, the city was able to get a 1.89 percent rate, saving taxpayers millions of dollars, they said.

"This 1.89 percent rate represents incredible savings for the taxpayers of Idaho Falls! Being able to move promptly and to strategically schedule the sale of the certificates to coincide with the most favorable Bond Market conditions really paid off,” said Idaho Falls Mayor Rebecca Casper. “This is tax money that the citizens of Idaho Falls can know will be spent on other community priorities and not on financing. That feels so good!”

The city council approved the sale of certificates on November 24.

The city anticipated the interest over the course of a 22-year repayment schedule would cost approximately $12.4-million.

Moody's Investor Services awarded the city with an Aa2 issuer rating. The rating gives high marks for a "strong financial profile that is expected to strengthen in the near-term with healthy reserves and possible operations."

The city received a favorable rating in part due to the fact that it has set aside $2-million to make the base payments on the certificates.

They said Moody’s also added that the City’s “governance [was] a key driver of the initial rating incorporating management's focus on building reserves and implementing budget management and capital replacement policies.”

The city council approved on December 10 an agreement to begin the design and construction phase of the new police station.