San Rafael, CA – Within existing resources, the Marin County Supervisors on Tuesday voted to approve a debt refinancing and restructuring proposal to raise approximately $30 million for much-needed capital improvement projects among County-owned properties.
Staff received approval to increase debt service payments from $4 million to $4.4 million for the next 30 years. The move will generate between $28 million and $32 million in additional bond proceeds, depending on the interest rate at the time of issuance. Although the County doubled its annual investment in County buildings and facilities from $2 million to $4 million starting in 2008, these major capital improvements would not be accomplished without the benefit of bond financing.
“We recommended refinancing and restructuring our debt within our existing budget so we adequately maintain our public infrastructure for the benefits of our residents and safety of our employees,” County Administrator Matthew Hymel said. Roy Given, the County’s Finance Director, added, “It just makes sense to refinance our current debt at an average interest rate of 4.3 percent, in order to take advantage of historically low interest rates currently trending in the low 3 percent range.”
Staff will return to the Board of Supervisors to seek approval on how the bond proceeds will be allocated to the highest priority needs. 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 is estimated at $15 million to $21 million, according to the Department of Public Works. The remaining funds will be used for upgrades of fire stations and other County-owned buildings.
The decision came as the Board and County staff were in the midst a three-day budget workshop to discuss the final year of a two-year budget for 2014-16. Final Board approval on the budget update is expected in June. The County’s budget is online. Questions or suggestions about the budget can be emailed to caobudget@marincounty.org.