Jan 6 2022
OPINION: Pool Advisory Committee How Can Measure UU Funds Be Used
The first item on today’s (January 6, 2022) PAC agenda is a briefing on the scope of facilities allowed under Measure UU.
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Can Measure UU bonds be used for just pool facilities or other recreational activities/services?
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This seems a more appropriate question for the Bond Oversight Committee, but in any event, a brief staff report would help the public to understand staff’s interpretation, but none is provided for today’s meeting. That interpretation may be best understood from a use survey for the new facility (link below). Multipurpose rooms, cardio gyms and a cafe all appear to be permitted under UU.
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Measure UU language and the City Attorney analysis of the measure are provided below. I think the key language is “new pool facilities” and many of those uses in the survey are not related to a pool facility.
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Measure UU
“Shall the measure to prevent permanent closure of Piedmont’s Community Pool by constructing new pool facilities, restrooms and related areas, to conserve energy and water, provide greater community access and safety, and authorize Piedmont to issue $19,500,000 in bonds at legal rates, generating $1,257,950 annually at an average rate of 2.6 cents per $100 of assessed valuation while bonds are outstanding, with all money staying local and independent citizens’ oversight, be adopted?”
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City Attorney Analysis of UU
“Measure UU limits the principal amount of the bonds to no more than $19,500,000 and provides that interest rates on the bonds would be capped at a maximum of 12%, but the prevailing market rates could be less. The bonds would be secured by ad valorem taxes levied on taxable real property in the City. The City estimates that the levy of taxes to repay the bonds would be at an average rate of 2.6 cents per $100 of the assessed valuation. The tax would only be assessed if the bonds are issued and the actual tax rate shall be subject to variation during the duration of the repayment period. Proceeds of the bonds may only be used for the design and construction of improvements for the Piedmont Community Pool and adjacent areas. Measure UU includes accountability requirements including that bond proceeds shall be deposited in a separate account created and held by the City solely for financing the authorized improvements. In addition, the measure also requires the Finance Director to file a report with the City Council at least annually showing the amount of bond proceeds collected and expended, and the status of improvements. Measure UU would also require the City Council to establish and appoint members to an oversight committee, which would have responsibility for reviewing and reporting on the expenditure of the proceeds of the bonds.”
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Garrett Keating, Former City Council Member
