City Tax Measures Move Toward November Ballot
Council Seeks Ways for Both Real Property Transfer Tax and General Obligation Bond on November Ballot.
At the Special Council meeting on June 29, 2020, the Council met a complicated set of financing options to deliberate. After several hours of considering the pool closure and alternatives, a lawyer, financial advisor, Director of Finance, City Administrator and the Council attempted to provide a way of financing improvements to City facilities.
The Community Pool was considered primarily for a bond measure, however many roadblocks arose on the timing and advisability. The cost for a new Aquatic Center has been roughly estimated up to twenty million dollars.
Some wanted public safety needs to be on the ballot separately from the recreation facility improvements, while others wanted all desirables together on the ballot.
Complex financing mechanisms were suggested from Certificates of Participation to lease back of City facilities. Problems with a bond measure preparation and timing appeared to be disappointing news for the Council, most of whom seemed unfamiliar with the various financing mechanisms.
It was noted that Piedmont would receive a AA+ rating for bonds, as “the City does not hold any debt.” No mention was made of the money currently borrowed from the State to finance Piedmont’s sewer rehabilitation projects.
The Real Property Transfer Tax (RPTT) increase was discussed and is likely to be approved for the ballot. Council members noted the RPTT is levied only at the time a property is sold bringing them to believe the one time expense would be acceptable to voters.
A poll was professionally conducted to determine if voters would likely approve the taxes, and the poll showed passage would be difficult to pass at the 66 2/3 rds level.
Facing a tight August deadline for putting any tax measures on the November ballot, the Council will consider the measures at upcoming meetings.
Since the Community Facilities District is no longer an option, I can see no reason to bundle all the facility replacement/maintenance projects onto one ballot initiative.