The Spokane City Council will take final action tonight on plans to borrow up to $2.8 million to fix a handful of major city streets.
Council members approved the plan two weeks ago when they agreed to spend $2.6 million to resurface and rebuild five of the city’s worst stretches of road.
The difference between the two dollar figures gives city officials flexibility to borrow a little more if projects cost more than expected, said Dick Cook, finance director.
It also makes room for the $22,000 in loan costs, including about $15,000 for outside bond attorneys and financial advisers.
The short-term loan from Seafirst Bank can be repaid after a year and must be repaid within 18 months, Cook said, adding that interest can’t be more than 5 percent and likely will be closer to 4 percent.
Council members hope voters approve the 2.3-cent-per-gallon local gas tax on the November ballot or legislators come through with more money for streets next year.
If either one happens, the short-term loan could be repaid with the new dollars. If that money doesn’t come or comes in amounts too small for quick repayment, the city likely will have to issue bonds to repay the note.
A briefing for the council starts at 3:30 p.m. in the lower-level conference room of City Hall, 808 W. Spokane Falls Blvd. The meeting begins at 6 p.m.
Subscribe to the Morning Review newsletter
Get the day’s top headlines delivered to your inbox every morning by subscribing to our newsletter.