City of Barstow
San Bernardino County,
California
January 20, 2026
Overview of Measure I
0.50% sales tax dedicated to transportation projects
Similar to State Sales Tax (tax on sale or use of goods) but based on point of receipt, not point of sale Administered by San Bernardino County Transportation Authority Sunsets March 31, 2040 (Financing assumes final maturity in 2040 too) Revenues generated from each County subarea are directed to projects in that subarea Historical Measure I Receipts
Average: $1,857,000
FY 2025: $1,712,469
Transportation Sales Tax Revenue Financing
Bond Sizing Scenario Analysis: Financing Prepayable in 10 Years Financing Assumptions:
1. Preliminary and subject to change. 2. Analysis assumes current market conditions as of December 8, 2025 and similar credits. 3.Stifel neither guarantees such results nor commits to underwrite at these levels. 4. Cost of issuance and underwriter’s discount are estimates for discussion purposes. 5. Assumes an ‘A+’ underlying rating. 6. Provision/cost of insurance are estimates for discussion purposes. 7. Annual Measure I Receipts reflects FY 2025 revenue.
Based on prior discussions of Council, the 3 scenarios below target different amounts that –after payment of debt service– would be left over for annual street maintenance; here, the financing can be prepaid only after 10 years — Scheduled amortization runs from 2026 to 2040
— Proceeds range from $13.3 million to $8.2 million
Scenario 1 Scenario 2 Scenario 3
Annual Measure I Receipts $1,712,469 $1,712,469 $1,712,469 Annual Debt Service -1,142,469 -962,469 -712,469
Left over for Maintenance 570,000 750,000 1,000,000
Proceeds of Financing for Projects 13,267,000 11,126,000 8,156,000
Scenario 1 Scenario 2 Scenario 3
The same three scenarios are shown below but with the ability to pay off the debt in its entirety anytime, beginning in 1 year (6/1/2027)
— Proceeds decline by between $1.1 million and $680,000 Financing Assumptions:
1. Preliminary and subject to change. 2. Analysis assumes current market conditions as of December 8, 2025 and similar credits. 3.Stifel neither guarantees such results nor commits to underwrite at these levels. 4. Cost of issuance and underwriter’s discount are estimates for discussion purposes. 5. Assumes an ‘A+’ underlying rating. 6. Provision/cost of insurance are estimates for discussion purposes. 7. Annual Measure I Receipts reflects FY 2025 revenue.
Transportation Sales Tax Revenue Financing
Bond Sizing Scenario Analysis: Financing Prepayable in Full in 1 Year Annual Measure I Receipts $1,712,469 $1,712,469 $1,712,469 Annual Debt Service -1,142,469 -962,469 -712,469
Left over for Maintenance 570,000 750,000 1,000,000
Proceeds of Financing for Projects 12,173,000 10,205,000 7,475,000
Scenario 1 Scenario 2 Scenario 3
Or, the City could limit the ability to prepay the financing so that it begins in 5 years (6/1/2031) to only a portion of the financing
— Portion prepayable is the final 10 years (between $8.1 and $5.0 million) — Proceeds decline less (between $430,000 and $274,000) Financing Assumptions:
1. Preliminary and subject to change. 2. Analysis assumes current market conditions as of December 8, 2025 and similar credits. 3.Stifel neither guarantees such results nor commits to underwrite at these levels. 4. Cost of issuance and underwriter’s discount are estimates for discussion purposes. 5. Assumes an ‘A+’ underlying rating. 6. Provision/cost of insurance are estimates for discussion purposes. 7. Annual Measure I Receipts reflects FY 2025 revenue.
Transportation Sales Tax Revenue Financing
Bond Sizing Scenario Analysis: Financing Prepayable in Full after 5 Years Annual Measure I Receipts $1,712,469 $1,712,469 $1,712,469 Annual Debt Service -1,142,469 -962,469 -712,469
Left over for Maintenance 570,000 750,000 1,000,000
Proceeds of Financing for Projects 12,837,000 10,755,000 7,882,000
Financing Team
A number of professionals (lawyers, advisors, bankers, etc.) would assist the City in implementing this financing
Bond Counsel / Disclosure Counsel
Prepares core legal documents and provides opinion certifying that the bonds are valid and legally issued and the interest is exempt from CA and Federal income tax Underwriter
Drafts the offering statement to ensure the City provides complete and accurate information to investors
Municipal Advisor
A fiduciary consultant who assists with evaluating the debt structure, legal provisions, timing of issuance and pricing of the financing to ensure fair terms The investment bank that presents structuring alternatives, manages the marketing and distribution process and, ultimately, purchases the financing for resale to investors
Cost of Issuance Estimate
Service Party Fixed Amount
Bond Counsel Stradling Yocca Carlson & Rauth $85,000
Disclosure Counsel Stradling Yocca Carlson & Rauth 45,000 Municipal Advisor Urban Futures, Inc. 52,500
Rating Standard & Poor's 25,000
Trustee/Trustee Counsel US Bank 7,200
Printer ImageMaster 5,000
Counterparty CSCDA (if needed) 10,000
Contingency Miscellaneous (if needed) 5,300
Total Fixed Costs of Issuance $235,000
Service Party Variable Amount
Underwriter/Sales Commission Stifel Public Finance 100,000 Total Issuance Costs $335,000
*
*Incorporates both fixed and variable components, smaller issuance sizes will be slightly lower ($85k to $100k)
Municipal Advisor Rule Disclosure
Stifel, Nicolaus & Company, Incorporated (“Stifel”) has been engaged or appointed to serve as an underwriter or placement agent with respect to a particular issuance of municipal securities to which the attached material relates and Stifel is providing all information and advice contained in the attached material in its capacity as underwriter or placement agent for that particular issuance. As outlined in the SEC’s Municipal Advisor Rule, Stifel has not acted, and will not act, as your municipal advisor with respect to the issuance of the municipal securities that is the subject to the engagement.
Stifel is providing information and is declaring to the proposed municipal issuer that it has done so within the regulatory framework of MSRB Rule G-23 as an underwriter (by definition also including the role of placement agent) and not as a financial advisor, as defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase securities for resale to investors in an arm’s-length commercial transaction.
Serving in the role of underwriter, Stifel has financial and other interests that differ from those of the issuer. The issuer should consult with its own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate.
These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future.
Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and is subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and /or counsel as you deem appropriate.