There are approximately five years of payments left on the bonds used to purchase the Ecola Creek Forest Reserve and the bonds used to finance the expansion of the wastewater treatment plant.

Cannon Beach is currently moving forward with a bond issue to fund the Cannon Beach Elementary School rejuvenation project. 

For the Cannon Beach Elementary School project, the city is not issuing a bond that will increase property taxes that would trigger a referral or vote (as would happen with a general obligation bond). Instead the city is borrowing the funds and will pay the debt services with existing revenue streams, including the tourism lodging tax funds. Because the city is not issuing a general obligation bond that will increase taxes, the City Council may authorize the bond issue with a resolution.

The refinancing of the Ecola Creek Forest Reserve and Wastewater Treatment Plant bonds will actually reduce the amount you pay in taxes.

The timing of these events has presented an opportunity to combine a refinancing of the two existing bonds with the financing of the Cannon Beach Elementary project, which will result in a small reduction of our taxpayers’ annual tax assessments over the next five years.

The refinancing should result in a total reduction of $60 to $80 for each $100,000 in assessed value at the end of the five years.

For example, if the savings is $60 over five years for a $700,000 property ($60 X 7 = $420 savings).

Council has directed staff to pursue this potential savings opportunity that will show up on your 2023 property tax bill.

The financing for the elementary school project is already in progress.

To avoid a delay in the school project and to try to catch the bond market at a time when we will get favorable rates, Council must take official action on the refinancing at its March 1st meeting. To explain the transaction and allow for public discussion, there will be a special work session at 5 p.m. on Feb 22.

The meeting information will be available on the city’s website at https://www.ci.cannon-beach.or.us/citycouncil/page/council-work-session-executive-session.

Bruce St. Denis

City Manager, Cannon Beach