Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Bond topic
No spam. Unsubscribe anytime.
Lafayette staff update council on $74 million capital bond and timeline; estimate: ~$280 annual tax for average home
Summary
City staff and municipal advisers updated council on projects funded by the voter-approved $74 million capital bond package — a rec center expansion, a new civic center and a service center — and outlined an issuance plan, the IRS 85% spending test, and an estimated $280 per-year property-tax increase for the average home beginning in 2027.
City staff and municipal adviser Hilltop Securities presented an update Jan. 6 on the voter-approved capital bond program, outlining project scopes, estimated costs and a preliminary financing schedule.
The package approved by voters includes three primary projects: an approximately 30% expansion and renovation of the Bob Berger Recreation Center (estimated cost about $34 million), construction of a new 33,000-square-foot Civic Center on city-owned land in Old Town (estimated $34 million), and renovation/expansion of the Service Center (estimated $6 million). City staff presented a total debt-issuance plan of roughly $74 million, repaid over 20 years, and estimated an annual property-tax increase for the average home of about $280 beginning in 2027 when payments start.
Maddie Pudonovic of Hilltop Securities explained the timing and constraints for issuing the bonds: IRS rules require a reasonable expectation that at least 85% of proceeds will be spent within three years of issuance. To meet that test and manage market risk, staff described an anticipated two-issuance strategy — issuing for the rec center and service center first and the Civic Center later — and a preliminary market estimate of the city’s borrowing rate near 4.15 percent (with ballot parameters assuming 5 percent in the ballot language). The city also included a reimbursement provision that allows it to incur design and planning costs now and be reimbursed from bond proceeds at issuance.
Councilors pressed staff on contingencies if interest rates exceed parameters, community engagement during design versus RFP timing, and whether the service center could be expedited for safety reasons. Staff said RFPs for design and early procurement will be posted as early as the end of the month for design and preconstruction; some projects will use a design-build approach and community engagement will be focused on the recreation center’s design phase. Staff also said the city will seek competitive sale and generally expects to work with one rating agency (S&P) for the size anticipated.
