RESOLUTION NO. _____
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, AUTHORIZING AN AD VALOREM TAX LEVY BASED ON A DEBT SERVICE ESTIMATE TO BE PROVIDED TO SANTA CLARA COUNTY RESPECTING UNSOLD GENERAL OBLIGATION BONDS FOR FISCAL YEAR 2025-26 WHEREAS, the City of Santa Clara (the “City”) is a municipal corporation and charter city duly organized and existing under the Constitution and laws of the State of California; and WHEREAS, more than two-thirds of the electors voting at an election duly and regularly held in the City on November 5, 2024, voted in favor of a bond measure known as Measure I (the “Bond Measure”), authorizing the issuance by the City of general obligation bonds in the aggregate principal amount of $400,000,000 (the “Bonds”) for the purpose of providing funds for certain municipal improvements; and WHEREAS, the City expects that it will issue an initial series of the Bonds under the Bond Measure on or around February 2026, which will require an ad valorem property tax to be placed on the 2025-26 County of Santa Clara (the “County”) property tax roll to provide for payments of any principal or interest coming due on the Bonds; and WHEREAS, pursuant to Government Code Section 5403, when bonds to be issued by or on behalf of a public body have been authorized by an election or other method provided by law, and where it is expected that all or any part of such bonds will be sold at such time that principal or interest on such bonds will become due before the proceeds of a tax levied after such sale would be available to pay such principal or interest, the governing body, at the time of fixing the annual tax levy, may levy a tax in an amount clearly sufficient to pay that portion of the principal of and interest on said bonds which it is expected will become due before the proceeds of the next succeeding tax levy will be available; and WHEREAS, the City Council of the City (the "City Council") expects and determines that the Bonds will be issued after the date established by the County for submitting debt service requirements to be placed on the fiscal year 2025-26 property tax roll, and the City Council wishes to inform the County of its intention to issue the Bonds after such date, in accordance with Government Code Section 5403; and WHEREAS, the City Council wishes at this time to authorize the City Manager, the Director of Finance and the City Clerk to make certain communications with the County respecting the foregoing.
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. Recitals Correct. The foregoing recitals are true and correct.
2. Intention to Issue Bonds. The City Council hereby expresses its current expectation to cause the issuance of approximately $150 million aggregate principal amount of the Bonds during fiscal year 2025-26 pursuant to the Bond Measure. The Bonds are currently expected to be issued in or around February 2026, which is after the deadline for filing with the County debt service requirements for general obligation bonds, such that property tax rates can be set by the County. It is expected that the financing will require an ad valorem tax levy to be included on the 2025-26 tax roll for the purpose of paying interest on and amortizing a portion of the Bonds in fiscal year 2025-26.
3. Information to County. The City Manager, the Director of Finance and the City Clerk are each hereby separately authorized to (a) file a certified copy of this Resolution with the Clerk of the Board of Supervisors and such other County officials as the County may require to facilitate such levy, and (b) provide, or cause to be provided, an estimate of debt service for the Bonds to the Auditor-Controller of the County.
4. Request to County to Levy Tax. The Board of Supervisors of the County is hereby requested to adopt a tax rate of $28.70 per $100,000 assessed valuation with respect to the City, which takes into account the Bonds expected to be issued during fiscal year 2025-26, based upon estimated debt service schedules prepared by officers of the City, together with the City’s municipal advisor, and to levy an ad valorem tax in fiscal year 2025-26 on all taxable property in the City sufficient to pay the estimated debt service.
5. Application of Tax. As provided in Section 43634 of the California Government Code, all taxes levied pursuant to this Resolution shall be used only for payment of the Bonds and the interest thereon.
6. Adoption; Effective Date. This Resolution shall take effect immediately upon its adoption. I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE 10th DAY OF JUNE, 2025, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST: ______________________________
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Resolution/Authorizing Ad Valorem Tax Levy Page PAGE 1 of 3 Rev: 7/27/2023
Ordinance/*Insert brief description Page PAGE 1 of *
Rev: 03-09-10; Typed: *Insert date