Finance Department
Council General Obligation Bond Study Session
May 27, 2025
Key Official Actions
2 Action
Estimated Timeline
1. Bond Compliance Citizens’ Oversight Committee (COC) Confirmation & COC Bylaws Approval May 27, 2025
2. Approve Ad Valorem Tax Levy for Debt Service(1)
June 10, 2025
3. Approve Updated Debt Management Policy
September 2025
4. Approve Bond Issuance and Related Documents(2)
January 2026
Annual until final maturity
Each Bond Issuance
Key Related Documents
3 Action & Document
Responsibility
Bond Compliance COC Confirmation & COC Bylaws Approval
Resolution Adopting Bylaws
Bylaws per City Ordinance No. 2069
Staff & Bond Counsel
Approve Ad Valorem Tax Levy for Debt Service
Resolution Authorizing Levy Based on Estimated Debt Service On Unsold GO Bonds FY 2025/26 Property Tax Roll Amount per $100,000 Assessed Value Based on $150 Million 1st Tranche Bond Issuance Size
Staff & Financial Advisor
Tax Levy Resolution on June 10
WHAT DOES THIS DO
WHY NOW
4 Places a levy on the tax rolls for FY 2025/26
County collects property taxes November 2025 & February 2026* City pays debt service due August 1, 2026 (estimated 1st payment date) Reduces interest expenses
Immediately pays down Principal
Eliminates capitalized interest which increases total Principal amount * County of Santa Clara distributes advances of Ad Valorem tax collections to cities in installments between November to June during each fiscal year
Key Related Documents – cont’d
5 Action & Document
Responsibility
Approve Updated Debt Management Policy
Update to include references to:
Administrative Disclosure Procedures
Administrative Bond Proceeds Project Fund Drawdown Procedures Possibly enhances Credit Ratings
Staff & Financial Advisor
Key Related Documents – cont’d
6 Action & Document
Responsibility
Approve Bond Issuance and Related Documents
Preliminary Official Statement (POS)*
City of Santa Clara Overview
Property Assessed Valuation
Description of Funded Projects
Financial Information
Trust Agreement
Trustee to hold Bond Proceeds in Project Fund
Bond Sale Documents
Notice of Sale or Bond Purchase Agreement
Continuing Disclosure Certificate
Staff, Bond Counsel, & Financial Advisor
* Council Members’ input requested – see Bond Counsel “Responsibilities of Council Members Regarding Bond Issuance” examples on page number 5