San Rafael, CA – With Board of Supervisors approval in hand, County of Marin finance administrators have revised authority to restructure debt if market conditions allow a minimum of $24 million for much-needed capital improvement projects among County-owned properties.
The Board approved the plan at its June 16 meeting, clearing the way for County Administrator Matthew Hymel to take steps to increase the County’s debt service payments from $4 million to $4.5 million over the next 30 years. The move won’t be made unless interest rates will result in at least $24 million in bond proceeds.
The Board authorized a debt restructuring plan at its April 21 meeting, but interest rates increased, prompting a delay. Rates still remain relatively low based on historical averages, and market sentiment indicates that rates are likely only to rise over the long term.
Although the County doubled its annual investment in County buildings and facilities from $2 million to $4 million starting in 2008, major capital improvements would not be accomplished without the benefit of bond financing.
A significant portion of the funds likely will be targeted for the Marin County Civic Center roof, which is more than 50 years old. The replacement cost on the Frank Lloyd Wright-designed national landmark is estimated at $15 million to $21 million, according to the Department of Public Works. The remaining funds would be used for upgrades to fire stations and other County-owned buildings.
“We need to adequately maintain our public infrastructure for the benefit of our residents and safety of our employees,” Hymel said. “Given the recent volatility of the bond market, we want to ensure we have the ability to act quickly if conditions make such a restructuring prudent.”