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Santa Clara authorizes up to $100 million in Measure I bonds for initial projects; staff to market series in February
Summary
After a public hearing and questions about structure and oversight, the City Council authorized staff to proceed with issuing up to $100 million in the first Measure I bond series (2026A and 2026B). Staff highlighted AAA/AAA (S&P/Moody’s) credit ratings and a target pricing date of Feb. 10, 2026; council asked for continued transparency via project dashboards and oversight.
The Santa Clara City Council on Jan. 13 authorized staff to proceed with issuance of the first series of Measure I general obligation bonds in an amount not to exceed $100,000,000. The action permits the city manager and his designee to finalize financing documents and to sell tax‑exempt bonds in two series (2026A for general projects, 2026B targeted for projects used by eligible nonprofits).
Deputy City Manager Mark Freitas and Finance Director Ken Lee walked the council through the projected sources and uses for roughly $96.6 million in project funds, estimated closing costs and a preliminary true interest cost (estimated at about 4.17%). Lee reported that the city received high investment‑grade ratings from both Standard & Poor’s and Moody’s, which staff said will lower borrowing costs. PFM Financial Advisors explained competitive versus negotiated sale mechanics and underwriter assumptions.
Council members asked technical questions about the short two‑year payoff planned for Series B (to ease IRS administrative constraints for nonprofit‑used facilities), contingency percentages in project budgets, and how proceeds and contingencies would be treated if projects come in under budget. Staff said unspent contingency funds would remain available for compliant Measure I projects or could be advanced to later phases, and that project‑level dashboards and oversight committee review would track expenditures.
After the public hearing and additional council deliberation, the council adopted the resolutions authorizing the issuance, the paying agent agreement, preliminary official statements and continuing disclosure certificates; staff indicated a competitive sale was scheduled for Feb. 10 with proceeds to close later in February.
What’s next: staff will finalize the official statement, post required disclosures, and begin the marketing process; council will receive regular updates and a public dashboard tracking Measure I project progress and spending.
