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Council authorizes staff to pursue parking-lease revenue bonds for downtown parking structure
Summary
Council approved staff recommendation to pursue parking-lease revenue bonds tied to the downtown parking structure that will serve the library and affordable housing project.
The Santa Cruz City Council on Tuesday approved a staff recommendation authorizing the city to move forward with parking-lease revenue bond financing for the parking structure associated with the downtown library and housing project.
Finance staff said the item was procedural: bond counsel and the city's municipal advisor are engaged and staff plans to bring the financing ordinance and related documents to the council in the coming months. Council member Newsom moved to accept staff's recommendation; the motion was seconded and carried on a unanimous roll-call vote.
During discussion council members asked general questions about the difference between general-obligation bonds and revenue bonds. Staff explained that general-obligation bonds require voter approval because they obligate the city's general fund, while revenue bonds are repaid from a dedicated revenue stream — in this case parking-lease revenues — and therefore do not pledge the general fund. Council recorded an aye vote from all members.
A public commenter criticized the use of revenue bonds and the project generally, but the council majority supported continuing with the financing process. Staff said the formal bond authorization and sale documents will return to council for approval.
