Idaho Fallsâ new police station could end up costing millions less than was expected thanks to lower-than-budgeted interest rates.
The city is financing the project with $30 million worth of certificates of participation, or tax-exempt bonds government entities can take out to pay for a project. They donât require a public vote, unlike a traditional bond for a construction project which needs two-thirds voter approval in Idaho. Idaho Falls will repay them over 22 years and had expected to spend $12.4 million on interest at an anticipated 3.25% rate. However, the city sold the certificates quickly and got an interest rate of 1.89% locked in for the life of the certificates, which will bring the amount spent on interest to less than half that, said city spokesman Bud Cranor.
The Idaho Falls City Council unanimously approved the architectural design contract for the cityâs new police station Thursday night.
The contract with the Florida-based Architects Design Group is for $2.52 million. It will be paid for out of the same $30 million in certificates of participation that will fund the construction of the station.
Police operations are currently spread between eight different locations, with the main station being in space downtown the city rents from Bonneville County. City officials have been discussing building a new station for years and got serious about it last year when a citizensâ committee recommended it, buying the former Idaho Falls Livestock Auction property on Northgate Mile for a location and hiring architects to design a new station. Council members approved the stationâs funding two weeks ago.