OMAHA, Neb. (KMTV) — Next week the Omaha City Council will hear testimony on approving ordinances allowing the city to pursue two separate bond agreements for a new streetcar. One of those bonds is backed by taxpayer money, something Mayor Jean Stothert said would not be used for the project.
“The public is not being asked to pay,” said Stothert back at the January 2022 announcement on a new Omaha streetcar.
She explained that she’s pursuing a streetcar without a public vote because the project will be funded through bonds that'll be paid off by new revenue around the streetcar.
“This is not a city-wide tax increase,” said Stothert at the initial press conference.
3 News Now learned recently that the city is pursuing two types of bonds: $300 million in redevelopment bonds, used for most of the project, which are backed by a bank, and lease-purchase bonds — backed by the city’s general fund — which are taxpayer dollars.
“The interest rate is better. We can draw them down quite a bit slower,” said Stephen Curtiss, finance director for the City of Omaha.
Curtiss said the $80 million of lease-purchase bonds allow the city to make smaller purchases and, overall, save money on the project.
He doesn't believe taxpayers will ever be on the hook because he thinks the method that they’re using to pay for the project, using tax increment financing around the entire streetcar line, will bring in hundreds of millions of dollars.
“There's more than likely 400, 500, 600 million of proceeds,” said Curtiss.
Dean of UNO's College of Public Affairs and Community Service John Bartle said, while rising interest rates can make things more complicated for a major project, the city can also always refinance later.
“If you got a good project go ahead and do it — get the project moving, get the money moving.”
Download our apps today for all of our latest coverage.
Get the latest news and weather delivered straight to your inbox.
