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Council approves $15.4 million lease-revenue bonds to accelerate Measure L projects
Summary
The Mill Valley City Council voted to authorize roughly $15.4 million in lease-revenue bonds to advance Measure L capital projects, including the public works facility, the Courtyard recreation facility and the Mill Valley Golf Club clubhouse renovation. Council and staff described ratings, projected interest costs, and planned allocations and contingencies.
Mill Valley’s City Council voted to approve a resolution authorizing approximately $15,400,000 in lease-revenue bonds to fund multiple Measure L capital projects. Staff described the package as a way to accelerate deferred maintenance and prioritized building renovations while taking advantage of favorable market conditions.
“What you have before you is a resolution authorizing the issuance of roughly $15,400,000 in lease revenue bonds needed to help fund citywide capital improvements, including the Courtyard facility, the golf course clubhouse renovation,” said Eric Erickson (speaker 7), who presented the financing proposal. Erickson and staff said the bonds were recommended by a subcommittee and recently received strong ratings; financial advisors present estimated a current borrowing rate around 2.75%.
City staff outlined how the proceeds would be allocated. Todd Cusimano (speaker 11) described the breakdown: “the Public Works Building is estimated to be around $9,000,000 … 1,800,000 will be covered by the sewer fund. 5,000,000 is set aside in this borrow for the golf clubhouse renovation” and roughly $5.4 million would come from bond proceeds for the Courtyard project. Staff added planned contingencies and said Measure L’s separate fund and oversight committee will provide transparent reporting on revenues and expenditures.
Several council members praised the timing and structure of the financing, citing Mill Valley’s high credit rating and the expected positive carry. A motion to adopt the resolution was made, seconded and the mayor announced, “The ayes have it.” The council also noted that the Mill Valley Public Financing Authority (MVPFA) will consider essentially the same resolution at a later meeting for the financing authority component.
Next steps: staff will execute financing documents, report regularly to the Measure L oversight committee, and bring any related implementation items back to council for approvals as the projects move into design and construction.
