
10/1/25
Riverside Wellness Center – Financial Overview (as of October 2025)
Project Goal
To provide a community wellness facility that meets local needs while minimizing impacts on property taxes and other city budget priorities.
Key Questions
When it comes to the financial side of the Riverside Wellness Center, there are two questions residents ask most:
- What will this cost?
- How will it be paid for?
Because the project is still in its early stages, exact numbers are not yet final. Costs may change as design, construction, and funding decisions are made. The figures below reflect the best information available as of October 2025.
What Will This Cost?
- Construction – $10.5 million (estimate)
Based on comparable projects and square footage estimates. Actual costs will depend on final design, material prices, and construction bids. We are using the high-end estimate of $10.5 million to plan responsibly. - Engineering & Architectural – $1 million
Covers work across three phases: Pre-Bond, Pre-Bid, and Construction. This includes engineering/architectural work already completed and is based on a construction cost of $10.5 million. - Furniture, Fixtures, & Equipment (FF&E) – $1 million
Costs will vary depending on operational decisions (for example, leasing vs. purchasing equipment). - Interest & Debt-Related Fees – TBD
Final amounts depend on interest rates, total borrowing, and funding secured. These will be defined more clearly if/when debt is issued.
How Will This Be Paid For?
- Cash on Hand – $1.5 million
Set aside from special tax revenues, interest earnings, and community donations. - Grants
The City has identified several opportunities. Grant funding will reduce the need for borrowing. - Donations & Contributions
Community support remains an important part of minimizing debt. - General Obligation (GO) Bond – Up to $8 million
On November 4, Riverside residents will vote on whether to authorize borrowing up to $8 million. 60% voter approval is needed for the referendum to pass. GO bonds typically offer lower interest rates because they are backed by property tax authority.- The City Council plans to repay the bond using special revenues (Local Option Sales Tax, Hotel/Motel Tax, Gaming Tax, and Casino revenue agreements).
- These repayment projections include conservative assumptions, such as reduced casino-related revenues due to increased market competition and $8 million borrowed to account for the possibility of minimal grant and donation support.
- Council’s intent: No increase in property tax rates.
- Disclaimer: Because GO bonds are backed by property tax authority, the City cannot guarantee that the debt service property tax levy will never be used.
Bond repayment assumptions: $8 million borrowed, 4.5% interest rate, 15-year term.
Potential Benefits
- More recreational opportunities, better health, and stronger community connections.
- Increased local development around the Riverside Wellness Center, helping spread the cost of public services.
- Partnerships with Highland School District, local service providers, and community organizations to expand service offerings.
Fiscal Responsibility
- Proven Track Record of Responsible Property Tax Management: (Riverside's ranking for consolidated tax rates among all cities in Washington County, Fiscal Years 2020 to Current)
- Lowest: 2020, 2023-2026
- Second lowest: 2021, 2022
- Debt-free today: The City currently carries no debt, strengthening its long-term financial stability.
In Summary
The Riverside Wellness Center is a major investment in our community’s future. While costs are not final, the City is committed to:
- Using realistic estimates and projections
- Maximizing grants and donations
- Prioritizing special revenues for repayment
- Continuing Riverside’s tradition of responsible property tax management
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