BERKELEY -- Will Berkeley taxpayers open their wallets to repair deteriorating senior centers and pot-holed tennis courts, build affordable housing and upgrade street lighting?

The City Council took preliminary steps at Tuesday's council meeting and work session to address the question, in view of placing a bond measure on the November 2016 ballot.

Before going to the voters, the council has to pare down project wish lists, choose a taxing mechanism and pinpoint the bond cost.

The council will craft the ballot measure to reflect what voters are likely to favor in November.

The city is in the process of commissioning a survey of 500 voters on what the electorate is likely to approve.

Much of the council discussion Tuesday was on specific projects -- senior center rehabilitation, south Berkeley street lighting, affordable housing, park facility upgrades -- members would like to see the pollster incorporate in the voter survey.

Staff will discuss council priorities with the polling firm and tentatively finalize projects to be addressed in the survey. The council will review -- and likely tweak -- the target projects at its meeting Feb. 23.

There is also the issue of a preferred funding mechanism.

The council will choose between bond repayment based on a property's assessed value or based on the size of the structure built on the property. Both require two-thirds voter approval.


If a $100 million bond is repaid through a property's assessed (not real) value, the average Berkeley homeowner with a home assessed at $425,000 would pay about $165 per year.

If the bond repayment is based on structure size, a $100 million bond would cost the homeowner with a 1,900 square foot house about $155 per year.

A staff report before the council looked at floating a bond of up to $30 million, but most members appeared to favor the $100 million figure.

During the public comment period, former Councilman Gordon Wozniak spoke in favor of issuing a $100 million bond, which he called "almost free money," given today's low interest rates of around 3 percent for a 30-year bond.

"Berkeley needs to plan to roll in new debt to replace the paid off debt and additional infrastructure debt to take advantage of the projected property value increase," Wozniak said in a letter to the council.

Consultant Charles Hill, principal at financial consultant firm NHA Advisors, noted the city's excellent credit rating and explained that Berkeley currently has about $91 million in outstanding bonds, just 3.79 percent of its $2.4 billion debt limit.

Mayor Tom Bates, who proposed two $40 million bonds rather than one $100 million bond, cautioned, "We have to be mindful of what else will be on the ballot."

The Berkeley school district plans to have the city place renewal of its bond on the November ballot.

Additionally, the council will consider other ballot measures, including a business license tax increase to fund affordable housing, City Charter changes to fund elections with public funds and create a commission to oversee the decennial redistricting process.

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