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Lafayette readies $74 million bond program; staff targets first series issuance this fall
Summary
Council received a detailed implementation plan for the $74M voter-approved bond program: staff aims to issue roughly $40M in a first series this fall to fund the service center and rec center, with a second series later; estimated household impact and timing depend on final pricing and assessed values.
Lafayette staff updated the council on implementation and timing for the $74 million general-obligation bond program voters authorized in November 2025, describing a two-series approach and the schedule staff intends to follow.
Maddie Panovich, covering financing logistics, said the city is targeting issuance of the first series (about $40 million) in October to align cash availability with an anticipated ramp-up in construction activity. The second series, for the remaining roughly $34 million, would follow about a year later so each series meets IRS expectations that at least 85% of proceeds be spent within three years of issuance.
Panovich said the ballot'parameter ordinance expected in September would delegate pricing authority to the city manager and chief financial officer within defined bounds. She also reiterated earlier staff guidance that the city will apply reimbursement provisions so early design costs can be paid ahead of official bond sale and later reimbursed from bond proceeds.
Staff described the projects and procurement approach: Artaec (owner's-rep) will provide program and project management for the BBRC recreation center and the service center; Rob Taylor of Artaec introduced his team and said the firm will help manage complex project phasing. Davis Partnership Architects is under contract for the BBRC design and the city plans a public engagement program (survey and July 22 open house). For the service center, staff selected a design-build team (D2C and BBD) to begin programming and site tours.
On market conditions, staff reviewed recent muni-market volatility and estimated Lafayette's current tax-exempt borrowing cost at roughly 4.17%, while cautioning that geopolitical events and market shifts could change pricing quickly. Panovich said the city will pursue a competitive sale and obtain a new rating (staff anticipates using S&P) and will not proceed with a sale if short-term market movements make pricing unfavorable.
Panovich also confirmed the city did not certify a mill levy in 2025 for taxes payable in 2026 (because bonds were not issued) but will certify the levy in December so revenue will be available for tax year 2027 debt service regardless of the precise sale date.
No bond sale or ordinance vote occurred at the meeting; staff will return in September with the authorizing ordinance and timing recommendations.
