CITY ATTORNEY'S IMPARTIAL ANALYSIS OF MEASURE N
By this measure, the City of Santa Rosa seeks voter authorization to issue and sell up to $124 million in general obligation bonds, with an interest rate of up to 12% per annum. The sole object and purpose of the bonds is to advance housing recovery by financing the acquisition and improvement of real property for affordable hous- ing for low-income and middle-income families, veterans, seniors, persons with disabilities and other vulnerable populations, and supportive housing for persons experiencing homelessness.
The bond proceeds may be used only for the purposes set forth in the measure. Under the measure, proceeds may be used by the City either: (a) directly to ac- quire, rehabilitate, preserve, or construct affordable housing and/or supportive housing; and/or (b) indirectly to provide loans, grants or other disbursements to qualified individuals (low-and middle-income), business entities, corporations, partnerships, associations and government agencies for the acquisition, rehabilitation, preservation or construction of such housing.
If approved, the bonds will be issued in one or more series, and will be general obligations of the City, payable solely from an ad valorem tax to be levied upon the assessed value of taxable property in the City. The tax will be equal to the amount needed to pay the principal and interest on the bonds in each year that the bonds are outstanding.
The Tax Rate Statement, included in the sample ballot pamphlet, reflects the City’s best estimates of the tax rates and duration needed for the measure. The estimates are based upon currently available data and projections, and do not bind the City. The Statement estimates that the annual tax rate required to service the bonds will be $29.00 per $100,000 of assessed valuation. (For example, a property assessed at $500,000 would pay $145 annually). The tax is based upon the assessed value of the property on Sonoma County’s tax rolls, not the property’s market value. The Statement estimates that the final fiscal year of taxation will be 2048-49; and that, if all the bonds are issued and sold, the total debt service, including principal and interest, will be $258.5 million.
An oversight committee will be appointed by the Santa Rosa City Council to ensure that the bond proceeds are expended only as allowed by the measure. All expenditures will be subject to an annual independent financial audit. The City Manager will be required to file an annual report with the City Council, setting forth the amount of funds collected and expended, as well as the status of all acquisitions and improve- ments funded under the measure.
This measure will become effective only upon the affirmative vote of at least two-thirds of the qualified electors voting on the measure.
This measure was placed on the ballot on July 24, 2018, by the affirmative vote of all six members of the Santa Rosa City Council present at the Council meeting. One Council member was absent.
If you desire a copy of the measure, please call the City Clerk at (707) 543-3015 and a copy will be mailed at no cost to you.
s/ Sue A. Gallagher City Attorney City of Santa Rosa