City hears timeline and constraints for voter‑approved Measure Q bonds

Nick Negaros, San Bruno’s administrative services director and chief financial officer, briefed the city council on the recently approved Measure Q general obligation bond measure. Negaros said the ballot language limits the use of bond proceeds to three categories — repair of storm drains, repair of city streets and potholes, and upgrades to fire stations — and that voters authorized up to about $102,000,000 in bonds at a tax rate up to 3¢ per $100 of assessed value. He said the measure also prohibits using the funds for administrative salaries and requires annual citizen oversight and independent audits.

Negaros described the staff process for turning Measure Q into projects: early scoping and project identification by staff, review and recommendation by the city manager, and inclusion of Measure Q projects in the city’s annual capital improvement program. He explained that staff would bring a reimbursement resolution to council before incurring reimbursable costs so those expenditures may later be funded by bond proceeds once bonds are sold.

On timing and capacity, Negaros said staff is modeling three roughly equal bond tranches, each about $34 million, staggered in the program timeline, and stressed that the amount the city can sell depends on assessed‑value growth, market interest rates at time of issuance and staff capacity to deliver projects. He noted the city’s finance model assumes roughly 4% annual assessed‑value growth while Proposition 13 limits assessed‑value growth that can be captured in some scenarios. Negaros added that the city currently has 11 authorized engineering positions with four vacancies (about a 26% vacancy rate), which affects how quickly projects can be designed and delivered.

Negaros also reviewed a statutory requirement embedded in bond finance practice: a large portion of project construction should be substantially complete within a defined period after bond issuance (he said 85% completion within three years is a key reporting assumption used in planning). He told council that staff will return with allocation recommendations through the CIP study‑session process and is planning follow‑up items tied to council goal‑setting dates.

Council did not take action on Measure Q at the meeting; staff said future steps will include defining project scopes, confirming staffing needs for program delivery, and returning with reimbursement‑resolution language and a bond‑issuance plan when timing and market conditions warrant.