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Administration seeks council authorization to issue $51M tranche of voter-approved parks bond
Summary
Finance staff asked council to authorize issuance of up to $51 million from the $85 million parks/trails/open space bond approved by voters; staff outlined timing for rating meetings, market posting and an April 7 bond sale, and said proceeds would fund most planned projects.
Marina Scott, senior treasurer, and finance staff presented the administration’s request for council authorization to issue the second tranche of the voter-approved $85 million general obligation bond for parks, trails and open space. The proposed issuance would raise $51 million, leaving about $9.2 million for a final tranche, and staff said they plan rating agency meetings the week of March 9, a preliminary official statement by end of March, a bond sale on April 7 and closing April 28. The administration recommended that the council approve a resolution authorizing the issuance with an interest-rate ceiling parameter of 6.5% and a 20-year debt structure.
Council members asked when the debt service would appear on property tax bills (staff said in November following issuance) and requested post-sale estimates of per-household impacts once pricing is known. Staff said that the tranche was larger than the first issuance because the initial tranche covered design and this is the principal construction tranche; they also warned that increasing the number of tranches raises issuance costs.
