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Board authorizes up to $15 million in lease revenue bonds to fund Ben Lomond transfer station upgrades and buy public defender building
Summary
Supervisors approved two companion measures June 10 enabling the Sandrooks County Capital Financing Authority to issue up to $15 million in lease revenue bonds. Proceeds will fund $8.5 million of improvements at the Ben Lomond transfer station and about $4 million to acquire and repair a building used by the public defender’s office; county
Santa Cruz — The Board of Supervisors on June 10 held and closed a public hearing and adopted companion resolutions authorizing the issuance of lease revenue bonds, not to exceed $15 million, to finance improvements at the Ben Lomond transfer station and to acquire and renovate the building leased by the public defender.
What the financing covers
County staff and financial advisers said the proposed financing will support two capital needs: approximately $8.5 million for construction and improvements at the Ben Lomond transfer station (bid opening was scheduled the day after the hearing) and roughly $3.5 million to acquire the building currently leased by the county for the public defender's offices at 42440 May Avenue in Santa Cruz, with an additional $500,000 estimated for repairs.
Financing structure and cost estimates
The county proposed issuing 30‑year lease revenue bonds through its Santa Cruz County Capital Financing Authority. Using the county’s current AA+ rating, staff estimated an interest cost of about 4.65% under present market conditions; the board authorized a parameter range allowing a maximum interest rate of 6% to preserve flexibility at sale. The estimated annual debt service is roughly $540,000 for the transfer‑station portion (to be paid from CSA 9C charges) and about $255,000 for the property acquisition (charged to rental savings). Staff noted the public defender purchase would be near breakeven compared with current rent costs. (Presented by Suzanne Harrell, municipal financial advisor; Peter Detliff, County Executive Office.)
Public comment and hearing
No members of the public testified in opposition during the public hearing. Staff noted the authority to use competitive or negotiated sale methods depending on market conditions and said the bonds were expected to be sold in July; staff offered to report the final sale pricing and interest rate to the board when the issuance is completed. (Peter Detliff and Suzanne Harrell; first referenced 9350.835s onward)
Board action and outcome
The board voted unanimously to adopt the resolutions authorizing the sale of the bonds (Item 8) and, separately, the action as the financing authority to approve the issuance (Item 9). Supervisors said the transfer‑station upgrades and property acquisition are important infrastructure moves to support county operations and solid‑waste resilience in the San Lorenzo Valley.
Why this matters
The bond financing supports both operational infrastructure for solid‑waste management and consolidation of leased county space into county ownership. The debt service allocation to specific revenue sources — CSA charges for the transfer station and rental savings for the public‑defender building — was highlighted as part of the financing plan. Staff said they will return with contract awards and with final sale results once the bonds are sold.
