City of St. Helena

Measure H - 2/3 Approval Required

IMPARTIAL ANALYSIS OF MEASURE H

CITY OF ST HELENA

Measure H was placed on the ballot by the St. Helena City Council. If the measure is approved by two-thirds of the electors voting on it, the City would be authorized to issue up to $19,150,000 in general obligation bonds to finance the cost of certain municipal improvement projects of the City as described below.

The measure authorizes the bond proceeds to finance the costs of municipal improvement projects of the City (the “Improvements”), consisting of drinking water system improvements, including but not limited to Bell Canyon Spillway repairs, water main rehabilitation and replacements, valve replacements, installing monitoring equipment at Bell Canyon in accordance with requirements of the State Division of Dam Safety, lower reservoir rehabilitation, and replacing pipes to increase fire flow, sewer system improvements, including but not limited to replacing pipes and making Crinella Lift Station improvements, stormwater system improvements, including but not limited to replacing pipes, drains, culverts and other components of the stormwater system, and recycled water system improvements, including but not limited to providing pump station and pipes to distribute recycled water. The authorized Improvements also include all work, facilities and expenditures necessary and incidental to the projects described above. The final costs, locations, designs, layouts and other components of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed. Therefore, the City cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements.

The estimated cost for these improvements is $19,150,000. The interest rates on the bonds would be capped at a maximum of 12% annually, but the prevailing market rates could be less. The bonds would be secured by ad valorem taxes levied on taxable real property in the City. The City estimates that the taxes would be levied for a period of approximately 36 years, at an average rate of $0.01482 per $100 (or $14.82 per $100,000) of the assessed valuation of all property to be taxed. The actual rate will vary somewhat over the duration of the taxation period, and the best estimate of the highest tax rate to be levied is $0.02587 per $100 (or $25.87 per $100,000) of the assessed valuation of all property to be taxed. Proceeds of the bonds will be held in a separate account solely for financing the Improvements. The City’s Administrative Services Director shall file a report with the City Council at least annually showing the amount of bond proceeds collected and expended, and the status of Improvements. In the event that the ballot proposition is passed, the City Council shall establish and appoint members to an oversight committee, which shall have responsibility for reviewing and reporting on the expenditure of the proceeds of the bonds.

The above statement is an impartial analysis of Measure H. If you desire a copy of the Measure, please call the elections official’s office at (707) 968-2742 and a copy will be mailed at no cost to you.

By: Ethan Walsh, City Attorney for the City of St. Helena

MEASURE H
TAX RATE STATEMENT

An election will be held in the City of St. Helena (the “City”) on June 7, 2022, to authorize the sale of up to $19,150,000 in bonds of the City to finance the municipal improvements listed in the bond measure. If such bonds are authorized, the City expects to sell the bonds in one or more series. Principal and interest on the bonds will bepayable solely from the proceeds of ad valorem tax levies made upon the taxable property in the City. The following information is provided in compliance with applicable provisions of the California Elections Code. Such information is based upon the best estimates and projections presently available from official sources, and other demonstrable factors.

Based upon the foregoing and projections of the City’s assessed valuation:

1. The best estimate of the average annual tax rate that would be required to be levied to fund the bond issue over the entire duration of the bond debt service, based on assessed valuations available at the time of filing of this statement is $0.01482 per $100 (or $14.82 per $100,000) of assessed valuationof all property to be taxed. The best estimate of the final fiscal year in which the tax is anticipated to be collected is 2059.

2. The best estimate of the highest tax rate that would be required to be levied to fund the bond issue, based on assessed valuations available at the time of filing this statement is $0.02587 per $100 (or $25.87 per $100,000) of assessed valuation of all property to be taxed. The best estimate of the first fiscal year in which the highest tax rate will apply is 2032.

3. The best estimate of the total debt service, including the principal and interest, that would be required to be repaid if all the bonds are issued and soldis $32,529,419.

Voters should note that such estimated tax rates are specific to the repayment of bonds issued under this authorization and are and will be in addition to tax rates levied in connection with other bond authorizations approved or to be approved by the voters of the City or any other overlapping public agency.

Voters should note that estimated tax rate is based on the ASSESSED VALUE of taxable property within the City as shown on Napa County’s official tax rolls, not on the property’s market value. In addition, taxpayers eligible for a property tax exemption, such as the homeowner’s exemption, will be taxed at a lower effective tax rate than described above. Property owners should consult their own property tax bills to determine their property’s assessed value and any applicable tax exemptions.

Attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only, which amounts are not maximum amounts or durations and are not binding upon the City. The actual debt service amounts, tax rates and the years in which they will apply may vary from those presently estimated, due to variations from these estimates in the rating for the bonds, the timing of bond sales, the amount of bonds sold and market interest rates at the time of each sale, and actual assessed valuations over the term of repayment of the bonds. The dates of sale and the amount of bonds sold at any given time will be determined by the City based on need for funds and other factors. The actual interest rates at which the bonds will be sold will

depend on the bond market at the time of each sale. Actual future assessed valuation will depend upon the amount and value of taxable property within the City as determined by the Napa County assessor in the annual assessment and the equalization process.

Jim McCann, Interim City Manager City of St. Helena

February 22, 2022