$54M project investments by West Sacramento includes I Street bridge funding
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- West Sacramento approved $54.7M in EIFD funds to support major infrastructure.
- The I Street Bridge replacement project will get $21.1M from West Sacramento.
- City must spend 80% of bond funds within 3 years to meet IRS regulations.
The West Sacramento City Council unanimously approved a budget this month to help construct the aging I Street bridge, new facilities and other capital improvements. The money was appropriated from bond proceeds drawn through California’s first enhanced infrastructure financing district, located in West Sacramento, according to the city. The Public Finance Authority approved in 2017 the funding mechanism, which allows the city to pay off bonds by collecting taxes from a specific area to fund infrastructure projects.
The approval of these projects falls in line with the city’s vision to grow out of Sacramento’s shadow to become a nationwide destination for a Major League Baseball expansion team and attract businesses.
“It’s full speed ahead from this time on,” said West Sacramento City Manager Aaron Laurel in an interview.
Out of the $54.7 million budget, about $21.1 million — the largest chunk of funds on the project list — will go toward construction of the I Street Bridge.
A $300 million I Street bridge replaces a 114-year-old connector by linking the Railyards District, across the Sacramento River, to West Sacramento. The construction is planned to conclude in 2031, but grant money for this project doesn’t all come to the city of Sacramento until 2038, said Peter Shellenberger, managing director with PFM Financial Advisors LLC, during an Aug. 14 Sacramento Transportation Authority meeting.
The Sacramento Transportation Authority, a local government agency with 16 members across the county, discussed options to bridge funding until grant money is received.
By next spring, officials will receive a presentation on the final terms of the financing. Sacramento City Councilmember Eric Guerra said during the meeting that construction could begin next year.
Of the remaining $54.7 million budget, $4 million is earmarked for designing a police station; $1.1 million to build a new park called the Washington Neighborhood Park; and $4 million to design a city-owned parking structure in the Grand Gateway development at 815 West Capitol Avenue.
West Sacramento Mayor Guerrero did not return requests for comment, but said during the August meeting that construction costs are rising, and staff should plan for a buffer if additional expenses accrue.
How did West Sacramento get here?
Laurel said the city lacked much development upon its incorporation in 1987. Infrastructure was wanting, neighborhoods disconnected and mostly abandoned industrial businesses dotted a riverfront.
West Sacramento officials at the time focused on redevelopment to boost the economy and create investment opportunities for businesses. This early vision to transform the city’s face has led them to today, he said.
Eventually, after using other financing mechanisms, the city established the Enhanced Infrastructure Financing District. As money flowed, it was allocated to public infrastructure projects, he said.
But the goal was to collect enough annual revenue to issue bonds to push projects forward faster. Enough money has to be gathered to attract appropriate investors, he said.
The city has to spend at least 80% of the bond proceeds within three years to comply with Internal Revenue Service regulators and to show sound fiscal responsibility, according to a West Sacramento staff report.
