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HomeMy WebLinkAboutResolution 2025-20 - Library Bond Levy.pdf RESOLUTION 2025-20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY SETTING THE TAX RATE FOR FISCAL YEAR 2025- 2026 WITH RESPECT TO GENERAL OBLIGATION BONDS FOR THE GILROY COMMUNITY LIBRARY PROJECT WHEREAS, more than two-thirds of the electors voting at a special municipal election held on November 4, 2008, voted for a proposition authorizing the issuance by the City of general obligation bonds in the aggregate principal amount of $37,000,000 (the “Bonds”) for the purpose of providing funds for the acquisition, construction, and improvement of public library facilities; and WHEREAS, the City has previously issued the initial series of the Bonds in the aggregate principal amount of $10,500,000 on May 5, 2009, and the second series of the Bonds in the aggregate principal amount of $23,500,000 on August 3, 2010; and WHEREAS, the City approved the refinancing of the two series of bonds on May 20, 2019 (providing for a reduction in bond debt service starting in tax collection year 2019/20) with the issuance of the 2019 Refunding General Obligation Bonds; and WHEREAS, pursuant to Section 43632 of the California Government Code, the City Council is required annually to levy and collect a tax sufficient to pay the principal of and interest on the Bonds coming due and payable before the proceeds of a tax levied at the next general tax levy will be available; and WHEREAS, the City has determined that in order to provide sufficient funds to pay the principal of and interest on the Bonds coming due and payable on February 1, 2026, and August 1, 2026, it is necessary to levy a tax upon all taxable property in the City at the rate of 0.0125% of assessed valuation, based on the estimated assessed values for all rolls (secured, unsecured and utility) for fiscal year 2025-2026; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Gilroy as follows: Section 1. Levy of Tax. The City Council hereby determines that the tax rate necessary to pay the principal of and interest on the Bonds coming due and payable on February 1, 2026, and August 1, 2026, is 0.0125% of the assessed valuation, and such tax rate shall be and is hereby levied in accordance with all applicable requirements of law. Section 2. Collection of Tax. The Finance Director is hereby directed to forward a copy of this Resolution to the Auditor-Controller of Santa Clara County, and to the Board of Supervisors of the County, and to take such actions and execute such documents as may be required to cause the tax rate set forth in Section 1 to be placed on the 2025-2026 property tax bill and collected by the County. Section 3. Application of Tax. As provided in Section 43634 of the California Government Code, all taxes levied pursuant to this Resolution shall be used only for payment of the Bonds and the interest thereon. Docusign Envelope ID: E1371079-DE06-4446-B620-DCC1F865063F Resolution No. 2025-20 Setting Tax Rate for FY2025-2026 City Council Regular Meeting | June 2, 2025 Page 2 of 3 Section 4. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED by the City Council of the City of Gilroy at a regular meeting duly held on the 2nd day of June 2025 by the following roll call vote: AYES: COUNCIL MEMBERS: Bracco; Cline; Fugazzi; Hilton; Marques; Ramirez; Mayor Bozzo NOES: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: APPROVED: ______________________________ Greg Bozzo, Mayor ATTEST: Bryce Atkins, Acting City Clerk Docusign Envelope ID: E1371079-DE06-4446-B620-DCC1F865063F Resolution No. 2025-20 Setting Tax Rate for FY2025-2026 City Council Regular Meeting | June 2, 2025 Page 3 of 3 CERTIFICATE OF THE CLERK I, BRYCE ATKINS, Acting City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2025-20 is an original resolution, or true and correct copy of a City Resolution, duly adopted by the Council of the City of Gilroy at a Regular Meeting of said Council held on Monday, June 2, 2025, with a quorum present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this June 10, 2025. ____________________________________ Bryce Atkins Acting City Clerk of the City of Gilroy Docusign Envelope ID: E1371079-DE06-4446-B620-DCC1F865063F