Lafayette staff outline $74 million plan to rebuild civic, recreation and service facilities; tax increase options discussed

City of Lafayette staff presented detailed cost estimates and financing options for three priority facility projects at a community meeting, saying the work would total about $74 million and likely require voter-supported borrowing.

Megan Davis, a city staff presenter, told attendees the city has identified three top-priority projects after a facilities assessment: a renovation and expansion of the BBRC recreation center, a new civic center on South Public Road north of the downtown “dragon” location, and a service center on South Boulder Road that houses public works operations. “We are looking at 3 projects for, potential development and renovation,” Davis said.

Why it matters: the city’s preliminary estimates put the recreation center and civic center at roughly $34 million each and the service center at about $6 million, for a combined estimated capital cost of approximately $74 million. Staff said issuing 20-year bonds to pay for the work would create roughly $5.9 million in annual debt service. That scale would require a new revenue stream, with staff presenting either a sales-tax increase or a property-tax (mill levy) increase as the main options.

Staff and consultants outlined the city’s fiscal picture and the likely financing impacts. Morgan Walton, identified as an acting finance director attending the meeting, and Maddie Pernonovic of Hilltop Securities participated in the finance discussion. Pernonovic said, “The assumed interest rate for the bonds that are kinda making up these debt service numbers is 5%,” and added that if bonds were sold immediately the effective rate might be…