The City has sold the first two series of Fire Safety Bonds in an aggregate amount of $35 million.  With these types of bonds, called General Obligation bonds (GO), the City pledges to levy the necessary taxes on all assessable property within its jurisdiction to repay the GO bonds. Because of the nature of the security, GO bonds normally have lower borrowing costs than other types of fixed rate debts. The bonds are tax-exempt from Federal and California income taxes, and carry no reserve requirement. The bonds will have an optional redemption feature that will allow the City to redeem the bonds maturing on or after August 1, 2012.

On an annual basis, the City Council must adopt a resolution setting the tax rate to pay the debt service on the bonds. Staff will calculate the annual tax rates based on the assessed values of taxable properties and the annual debt service requirement on the outstanding bonds. The annual tax rate may vary from year to year because of changes in assessed valuation and debt service requirement. Once the tax rate is calculated by staff and approved by the City Council by the adoption of a resolution to that effect, the County of Alameda will apply it to all taxable parcels in the City of Fremont. The County places the tax on the property tax bills, collects the tax, and remits the tax to the City. The City, through the Paying Agent (in this case Wells Fargo Bank), pays the principal and interest on the outstanding bonds to the bondholders.  

Document Description	File Download
Agenda report on authorization to issue second series of Safety Bonds (March 8, 2005)
Agenda report on 2004-2005 tax rate (July 27, 2004)
Agenda Report on 2003-2004 tax rate - July
Agenda report on authorization to issue first series of Safety Bonds (May 13, 2003)
Agenda report on reimbursement resolution for implementation of Measure R  (March 25, 2003)

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