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Council authorizes staff to proceed with bond financing plan for new public safety facility at the fairgrounds
Summary
Council held a public hearing and unanimously adopted resolutions authorizing staff to pursue bond issues to finance a consolidated public safety facility: roughly $55 million in construction plus soft costs (total project budget about $71M) to be financed with sales‑tax (Measure H) bonds and lease‑revenue bonds, with estimated annual debt service built into the 2026–27 forecast.
The City Council held a public hearing and adopted resolutions allowing the city to proceed with a split bond financing plan for the new Petaluma Public Safety Facility at the fairgrounds.
Assistant City Manager Brian Cochran (speaker 36) said the proposed construction budget is $55 million and the overall project budget including design and site work is about $71 million. The recommended financing package splits the construction borrowing into two fixed‑rate 30‑year issuances: a sales‑tax bond for roughly $31 million secured by the city’s allocation of Measure H revenues, and a lease‑revenue bond for roughly $24 million expected to be repaid from the general fund and Measure U revenues. Cochran explained that Petaluma’s entitlement to Measure H is legally fixed at about 7.19% of county Measure H receipts and that current annual Measure H receipts to the city are about $4.5 million (12 months ending 12/31/2025).
Under the financing plan staff presented, the estimated annual debt service would be about $1.8 million for the sales‑tax bond and approximately $1.3–$1.4 million for the lease‑revenue bonds in most years; issuance costs were estimated at roughly $364,000 and $294,000 respectively and would be paid from bond proceeds if the sale proceeds. Financing staff emphasized timing flexibility: the city will size and price the final issues after bids are received and market conditions are monitored; bonds would be callable after 10 years allowing possible future refinancing.
Public comment included cautions about committing a large portion of Measure H to capital debt and a request for careful prioritization of other capital needs. Council discussion stressed the long‑term nature of capital financing, the expected useful life of the facility, and the projected impacts on the general fund and Measure U in the adopted five‑year forecast. After questions and deliberation the council adopted the required resolutions (city sales‑tax bond resolution, city lease revenue bond resolution and Petaluma Public Financing Authority lease resolution) to authorize the financing process; staff will return with bond sizing and final award information once construction bids are evaluated.
