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Langley selects bank for project bond
Funding for the Second Street redesign project, beginning this month, will come in part from a single bond issued by Cashmere Valley Bank.
Langley City Council members voted 4-0, with Councilwoman Margot Jerome abstaining because she “didn’t know enough about it.” The $420,300 bond has a five-year fixed rate of 2.52 percent which resets in the sixth year, then again at the 10-year mark to the prevailing rate.
“They don’t expect it to change drastically,” said Langley Treasurer Debbie Mahler of the interest rate.
Mayor Fred McCarthy said the city looked into the legality of seeing if Whidbey Island Bank could match it. McCarthy said it was within the guidelines of the bid process, but Whidbey Island Bank could not meet those terms.
Originally, Langley’s mayor said the city should seek about $750,000 from the bond. That was reduced, however, after city leaders decided not to carry more bond obligation than necessary, despite hopes that excess money could be used to repair or replace the staircase at Boy and Dog Park.
“You can’t just get a bond for no reason and let the money hang around,” Mahler said.
The bond will be paid back with money from the city’s real estate excise tax, part of the General Fund, in 15 years. Mahler said the payment will be similar to an existing one made by the city that will be paid off this year, just as it assumes payments of the new bond.