Debt Management/Bonds Issued
Why does the City of San Mateo issue debt?
The city considers the use of capital financing and long-term debt for physical assets that have a long useful life. Additionally, the city’s capital needs exceed its ability to fund these projects on a “pay as you go” basis, which necessitates the issuance of debt. The advantage of issuing debt for capital needs is that it spreads the cost over the asset’s useful life, with the term of the debt typically shorter than the useful life of the asset. This ensures that the users who receive the benefit from the asset are the users that are paying for the asset.
What types of debt does the City of San Mateo typically issue?
The city issues different types of debt such as General Fund lease revenue bonds, enterprise revenue bonds, special tax bonds, and General Obligation (G.O.) bonds. A bond is a promise by the borrower to repay amounts loaned to it on a specified date in the future, together with interest, which is usually paid in six month intervals. Lease revenue bonds are secured by a General Fund lease and enterprise revenue bonds by specific revenues, such as sewer user fees. Both of these types of debt are authorized for issuance solely by the City Council. Other special types of revenue bonds can be secured by user fees or special assessments. Special assessments require majority approval of those subject to the assessment. Special tax bonds are secured by a special tax and require a two-thirds majority approval of those subject to the special tax. G.O. bonds are secured by new ad valorem property taxes levied on all taxable property within the city and must be authorized by a two-thirds majority of city voters.
What information is available about bonds issued?
In accordance with the City’s Continuing Debt Disclosure Policy, the information found on this page and the links extending from this page provide information related to the current bonds issued by the City of San Mateo. As significant changes may occur, this page and the appropriate links will be updated as necessary.
How does the City of San Mateo issue debt?
The city uses William Euphrat Municipal Finance, Inc. and Kitahata & Company as independent financial advisors on issuing any type of municipal debt. Underwriters can access the city’s IRMA Exemption Notice through this webpage.
City Issued Bond Disclosures
The only information on this Web site that is posted with the intention of reaching the investing public, including bondholders, rating analysts, investment advisors, or any other members of the investment community, is located here on the Debt Management/Bonds Issued web pages. Other than the specific information presented in the Debt Management/Bonds Issued web pages, no other information on the City’s website is intended to be the basis of or should be relied upon in making an investment decision. Because each security is issued by the City or its related entities may involve different sources of payment and security, you should refer for additional information to the official statement and continuing disclosure filing for that particular security. The information posted on the investor information web pages speaks only as of its date.
All information contained on this Web page is obtained from sources believed to be accurate and reliable. While all information presented is believed to be accurate and reliable, it is prepared without audit unless otherwise identified as audited financial information. Due to the possibility of human or mechanical error and other factors, this information is provided as is without warranty of any kind and the City makes no representation, express or implied, as to the accuracy, reliability, completeness or timeliness of this information, and is not responsible for any loss or damage incurred by any party using this information. This website and the information contained herein do not constitute an offer to sell or the solicitation of any offer to buy any securities.
The information herein is subject to change without notice and the posting of information on this website does not imply that there has been no change in the affairs of the City of San Mateo since the date of posting such information.
The City of San Mateo disclaims any responsibility or liability for any damages caused by viruses contained within the electronic files at the Internet site. Any addresses of or links to other web sites, which are contained within these web pages, are provided solely for the convenience of the user.