Walnut Creek council briefed on proposed $77 million aquatic and community center financing; no vote taken

City officials outlined a financing plan Sept. 16 to pay for a proposed $77 million aquatic and community center, telling the Walnut Creek City Council the project would likely combine Measure O set-asides, reserves and lease-revenue bonds issued by a joint powers authority. The session was an informational briefing; council did not vote and will consider approvals at a later meeting.

The proposal staff presented assumes total project costs of $77 million. City Manager Dan Buckshine said Measure O revenues — about $9 million set aside annually — and other city reserves would cover a portion of the cost. “It would take roughly 9 years of saving those funds,” Buckshine said, describing the choice between saving for construction versus borrowing to build sooner and pay over time. Under the staff plan presented, about $27 million in Measure O funds would be available by the end of the current fiscal year and roughly $41 million would be financed with bonds, subject to change after bids and final cost estimates.

City staff and outside advisers described a lease-revenue bond structure in which the city would form a new joint powers authority (JPA) to issue bonds and lease a city asset back to the JPA.…