A refinancing plan being proposed by the city of Spokane as a way to reinvigorate Riverfront Park and improve streets is financially intricate enough that voters might have a difficult time grasping exactly how it would work.

And given the readiness of the electorate in this still-fragile economy to reject any ballot measure it doesn’t understand fully —let along agree with—that’s not a good thing.

Nonetheless, the plan is enticing in several respects and appears worthy of support, particularly in light of a dearth of  alternative funding schemes for making these much-needed improvements.

Spokane Mayor David Condon and City Council President Ben Stuckart announced the financing proposal early this month, and the city now is holding a series of public meetings to educate city residents about it, with the last few meetings scheduled for next week. City officials compare the plan to a homeowner refinancing to take advantage of lower interest rates.

One of the key and most persuasive messages that proponents of the plan are trying to convey is that the refinancing would allow for upwards of $80 million worth of improvements to be completed without raising the tax rate that city residents pay today for streets and parks.

The plan would provide $60 million for the crucial implementation of a new Riverfront Park master plan that was developed with extensive public input. Riverfront Park, the jewel of downtown Spokane, has lost a great deal of its luster in the 40 years since Expo ’74, and it’s desperately in need of a makeover that would restore its appeal and relevance to residents and visitors alike.

The plan also would provide an estimated $25 million annually for street work, counting matching funds, more than doubling the level of work currently being performed annually under a $117 million 2004 street bond, and it would retire some current debt.

Here’s a bit more detail about how it would work:

Spokane property owners currently pay 91 cents per $1,000 of assessed property value, equal to about $180 a year on a $200,000 home, toward the repayment of three separate street and park bonds. That includes 57 cents that’s going toward retirement of the 2004 street bond, and 34 cents that’s being used to repay a 2007 pools-and-play bond and a 1999 park bond.

Payments on the street bond and some park bond payments are scheduled to continue for years, without any additional improvements. The proposal, without adding to the rate city  pay now but extending payments over 20 years, would create a new bond to implement the Riverfront Park master plan and pay off the 2007 bond issue and a levy to carry on the street work.

Condon and Stuckart contend the proposal, without boosting the current tax rate, would fulfill important citizen priorities of maintaining and improving current city street and park systems, and thus merits their support. 

We’re inclined to agree.