IGNITE: De-annex, Take 2

In reply to Mr. Davis’ Sept. 23 letter:

1. Each year roughly $6 million in new tax revenue comes in to the urban renewal agency — a new $6 million in 2017, a new $6 million in 2018, and so on. That’s on top of the $12 million cash pile sitting there now.

2. The Seltice Way reconstruction and the North Idaho College Collaborative Education Facility are budgeted to be paid for from 2017 and 2018 tax revenues — a total of roughly $3.1 million each year. That leaves $2-3 million of new tax revenue in each of 2017 and 2018, plus the new $6 million coming in each year thereafter. All on top of the existing $12 million cash pile.

3. Any additional costs on those projects, plus any additional projects the mayor and council deem worthwhile, can easily be paid for from those millions, with plenty left over. And without touching the existing $12 million cash pile.

4. Mr. Davis admits the Lake District alone now has more than $4 million in cash sitting unused. That’s enough to pay off nearly half the $8.7 million Washington Trust loan. Doing that would also reduce the required 10 percent “bond reserve” from $1.3 million to something over $400,000, freeing up more than $800,000 to further pay down the loan.

5. Mr. Davis admits the agency’s left hand (the River District) now has $6.6 million in cash sitting unused, while the same agency’s right hand (the Lake District) borrows millions. Is that an example of expert financial management?

6. And if the recent refinancing of the $8.7 million loan is such a great thing, then why didn’t the agency do it a year ago, or two years ago, when interest rates were as low as today, and there was never a prepayment penalty? The rate dropped from 3.26 to 1.25 – that 2 percent on roughly $10 million is about $200,000 for every year the agency was asleep at the switch.

7. Mr. Davis claims the agency is “very diligent and thoughtful in expending and preserving public funds.” Does he include spending $100,000 on its “rebranding” advertising campaign, including $2,500 for a float in the Fourth of July parade? Or its excessive professional and administrative costs expertly outlined by the mayor at the agency’s August meeting? Or the $25,000+ it spends annually on Boise lobbyists (personally and through RAI)?

8. The urban renewal agency has largely outlived its usefulness, and is drowning in tax revenue and cash for which it has no serious use. The city should de-annex it (shrink it) further –— reducing the property tax money it skims off the top that would otherwise go to the city, county, NIC and other taxing jurisdictions.

9. That would free up millions of tax dollars to pay for more firemen, police and other public services — and to provide tax relief to taxpayers. Instead of paying for boondoggles the agency dreams up to perpetuate its own existence.

DAVID LYONS

Coeur d’Alene