REPORT TO COUNCIL
SUBJECT
Title
Study Session: City Council Roles and Responsibilities In Connection with the Issuance of Measure I General Obligation Infrastructure Bonds
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
On November 5, 2024, voters in the City of Santa Clara approved ballot Measure I, the Public Facilities and Infrastructure Bond Measure. The approval of Measure I authorizes the issuance of $400 million of General Obligation bonds (GO Bonds) to help address over $600 million in unfunded infrastructure needs throughout the City, including aging fire stations, storm drain systems, and aquatic facilities.
DISCUSSION
It is expected that the $400 million of voter-approved GO Bonds will be issued in multiple bond sales, commonly referred to as "tranches." The initial bond sale is expected to take place in early calendar year 2026 in order to fund the first phase of proposed projects. The first phase of projects is expected to include several priority projects that already have a specific, identified scope of work and are therefore the most ready to be fully designed, bid, and constructed. The first phase will also include money for conceptual design of more complex projects and funds to study projects that are currently without a defined scope of work.
As part of the bond issuance process, each bond issuance must be approved by City Council resolution. Each resolution will approve the bond sale and approve as to form certain legal documents necessary to implement the sale. This will include the preliminary official statement that discloses information regarding the City, its finances, the proposed projects, and the specific terms for the sale to potential bond investors.
To clarify the City Council's actions and responsibilities, and facilitate questions regarding City Council's role in the sale and issuance of the GO Bonds, Jones Hall (the City's Bond Counsel) has prepared an information overview of such action...
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