City Secures $7.8M for Roads, Saves $1.8M
The funding will be used for much needed road improvements in the City.
Last week, the City secured $7.8 million in funding to complete vital road projects along with maximizing its rehabilitation program that will lengthen the useful life of the City's existing roads.
The funding was secured through the Total Road Improvement Program (TRIP) that allows local governments to leverage their State Motor Vehicle Fuel Tax (the “Gas Excise Tax”), or Measure A funds in Riverside County, to finance road improvement projects. The City Council approved the bond funding at its meeting on June 24, 2014. At this time, it was estimated the City would receive up to $6 million at a cost of approximately $500,000 per year for 25 years. However, based on strong investor demand and an “A” credit rating from Standard & Poor’s, the City was able to secure a historically low, 25-year interest rate of 3.60 percent and save more than $1.8 million. As a result, the City secured $7.8 million at the same annual cost.
“Over the last several years, our roads have suffered and it was time for us to find a way to address this concern for our community,” said Mayor Natasha Johnson. “This is a bold move, but our staff’s hard work has paid off and we are thrilled to have the resources to take the first of many steps to preserve, protect and restore our roads.”