Includes $1 million for Burlingame park
City financiers are asking for the green light to proceed with a bond sale to raise $5 million for various parks projects.
In 2001, city voters approved giving the parks department authority to raise $38 million in bonds for parks projects. To date, $25.7 has been spent, leaving $12.3 in left over bonding authority.
At a work session with City Council scheduled for Tuesday, the parks and finance departments will discuss raising $5.1 million with a new bond sale.
For this round of bond funding, the city has budgeted $1.22 for Wagner Park resoding and other work; $750,000 for the redesign of Galena Plaza; $750,000 for the city’s share of the $17 million Sky Mountain Park open space purchase; $225,000 for a golf course pond; $220,000 for the Bob Helm Bridge; and $825,000 for work in Rio Grande Park, including a new restrooms building, a pump system and a new wetlands/stormwater treatment project.
Parks department staff will also discuss with council a proposal — not in previous bonding discussions — to raise $1 million for park work pertaining to phase two of the Burlingame Ranch affordable housing neighborhood.
The new bonds would be “interest only” until 2026, with an annual debt service cost of $156,000 per year until that time.
“This allows the city to take advantage of extremely low interest rates for a longer period of time,” according to a memo from Finance Director Don Taylor.
After 2026, the debt service would jump to $815,000 until the bonds are paid off in 2032. The drastic jump is OK, though, according to a city memo, because debt service on other bonds the city is paying off will expire after 2026.