Measures UU and TT campaigns near finish
PIEDMONT >> Piedmonters will be asked whether or not to approve two local measures on the Nov. 3 ballot.
Measure UU proposes $19.5 million in general obligation bonds to build a new aquatic facility. The current center, closed due to the COVID-19 lockdown, is 56 years old and in disrepair with massive water leaks and aging equipment. It was costing the city $1,000 per day to keep the pool safe and operational before its closure, said City Administrator Sara Lillevand.
Measure UU Supporters, many of whom have spoken at recent City Council meetings, say the center is a community asset that provides recreation and exercise for all ages, swim lessons and a place for water polo and youth swim teams, lap swimming and community gatherings. Supporters say the time is right because of low interest rates and that the pool needs to be replaced to serve the city for another 50 years.
Opponents say Piedmont should not take on nearly $20 million in bonds due to fiscal uncertainty from pandemic closures and prefer to wait to see if life returns to normal before proposing a measure. Piedmont has other liabilities such as pensions and sewer loans and shouldn’t adding to its debt, opponents contend.
The bonds would be secured by ad valorem taxes on real property.
It’s estimated property taxes to repay the bonds would average 2.6 cents per $100 of assessed property value.
Interest rates for the bonds cannot be higher than 12%. The bonds would be repaid over 30 years with a fixed interest rate. Lillevand said the city currently has no outstanding general obligation bond debt.
Rough “hard- cost” estimates show $8 million to replace the medium and big pools, $3.5 million for site preparation and $6 million for a building to house pool equipment, restrooms, offices and community space.
T hat doesn’t include construction contingency costs.
Measure TT asks if Piedmont voters should approve increasing the real property transfer tax to $17.50 per $1,000 of transfer price. The tax would be a one-time levy at each property’s time of sale.
The rate is now at $13 per $ 1,000 of the value of property transferred, which is lower than Berkeley and Oakland but higher than most California cities.
Transfer taxes are typically split between buyers and sellers or whichever other arrangements they choose.
T he increa se wou ld bring in additional revenue of $948,462 per year to maintain existing buildings, parks, streets and sidewalks. Opponents say there are no safeguards to ensure the money will be used to support city infrastructure. Supporters say the revenue will provide funds for maintaining and improving city facilities. They say it will affect relatively few residents each year. For more information, v isit piedmont . c a . gov/ elections/2020measures online.