At the July 16, 2024 City Council meeting, Council voted unanimously to place a $400 million general obligation bond on the November 2024 ballot to address the City’s over $600 million in unfunded infrastructure needs.
While the most immediate infrastructure needs total more than $600 million over the next five years, the total does not account for all unfunded needs in the City. In 2024 alone, the City received over $270 million in infrastructure requests from various departments with only $24 million available in the Capital Projects Reserve.
“This bond measure, if approved by voters, is a substantial and much needed investment in our community,” says Mayor Gillmor. “We wanted to make sure the measure commits to specific projects so Santa Clarans know how the monies will be used, and that controls are in place to ensure maximum benefit to the City.”
In addition to the bond measure ordinance, a detailed Expenditure Plan with specific projects was adopted to ensure monies are committed to the following infrastructure project areas:
- Streets and Transportation ($41,170,000): Projects include street resurfacing/rehabilitation and ADA improvements
- Fire Stations and Emergency Response ($142,235,450): Projects include replacement and/or renovation of several fire stations and training facility renovation
- Police Facilities ($43,987,500): Projects include training facility, Police Department facility and real-time crime center infrastructure
- Parks, Libraries, Senior Center, and Aquatics Facilities ($115,258,750):Projects include renovation and expansion of all three libraries and Senior Center, renovation and/or replacement of community aquatic facilities, and renovation of park/playground facilities
- Stormdrain System Improvements ($46,000,000): Projects include stormdrain system improvements and storm water retention basin remediation
- Historic Buildings and Beautification ($9,200,000): Projects include street/median beautification and renovations to historic buildings
Bonds would be issued in phases to address prioritized needs. At full issue, the estimated annual levy would be $19 per $100,000 of assessed property value applicable to residential and business property owners and is expected to generate approximately $21,674,000 annually.
“This bond would provide a dedicated funding source for some of our most critical infrastructure needs,” says Councilmember Karen Hardy. “It was crucial for the Council to get this measure in front of voters in November.”
The Santa Clara bond ordinance also includes a Transparency and Accountability Plan, which codifies the accompanying Expenditure Plan, establishes a Community Oversight Committee to ensure compliance with bond requirements, and sets forth a strict process by which amendments can be made to the Expenditure Plan.
Among other requirements, bond expenditures would be subject to independent annual audits, and bond proceeds would be prohibited for use on Levi’s® Stadium improvements or within .5 miles of the stadium, except for improvements in residential neighborhoods within the .5 mile radius.
The $400 million general obligation bond measure will be placed on the November 5, 2024 general election ballot, requiring a 2/3rds vote in favor to pass. A State ballot measure, Proposition 5, also on the November ballot, would lower the threshold needed for the bond measure to pass to 55%.
“We do know that the City’s current pay-as-you-go approach to funding infrastructure projects is untenable,” says Santa Clara City Manager Jovan Grogan. “We are very hopeful for this opportunity to place an infrastructure bond before Santa Clara voters.”
For more information, visit SantaClaraCA.gov/LocalFunding.
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View Comments (4)
I really wish there wasn't so much allocated to the fire and police departments, but I accept that one must make compromises to make things happen. Glad to see the new members of the council are having a positive effect, despite all the name calling and acrimony from the two Karens on the council (no, I'm not talking about Hardy)
This article states: “At full issue, the estimated annual levy would be $19 per $100,000 of assessed property value applicable to residential and business property owners and is expected to generate approximately $21,674,000 annually.”
However, if the city were to borrow $500,000,000 at say 7% interest, then the city would need to pay $35,000,000 annually on interest costs alone. Obviously, the estimated annual levy would not even cover the interest costs, much less pay down anything on the principal. So, where else shall the needed income come from or what else needs to be taxed? Or do nothing like our federal government and simply let our future generations handle the problem?
I suggest using the $21,000,000 for down payment on “Streets and Transportation” and skip the Fire Stations and Police Facilities and Swim Centers. Do the rest on a pay-as-you-go approach. And please, no more frivolous 49ers lawsuits.
I agree that more funding should go to streets and transportation. All residents with emphasis on seniors could benefit from focused funding both street and transportation. Thankful for infrastructure planning from the city.