NEW ISSUE - FULL BOOK-ENTRY RATINGS (See "'RATINGS"herein) In the opinion l?{ Jones Hall, A Professional Law Corporation, San Francisco. California, Bond C�ounsel, subject, however to certain qualifications described herein, under existing laHl, the interest on the Bonds is excluded fro,n gross inconie for.federal income tax purposes, and such interest is not an item of tax preference for purposes of the federal alternative minimwn tax bnposed on individuals and corporations, although for the purpose of computing the alternative minimum tax imposed on certain corporations, such interest is taken into account in determining certain income a1ulearnings, In the further opinion ,?f Bond Counsel, such interest is exempt from Cal(fornia personal income taxes. See "TAX MATT!::,RS"herein. $46,300,000 C!TYOF� CITY OF SAN JOSE SANJOSE General Obligation Bonds, Series 2005 CAPfl�L O!-' SI! ICON \'A!J.EY (Libraries and Pnblic Safety Projects) Dated:Date of Delivery Due: September 1, as shown below The City of San Jose' General Obligation Bonds, Series 2005 (Libraries and Public Safety ProjecL-;) (the "Bonds" or the "Series 2005 Bonds"), in the aggregate principal ainount of $46,300,000, are being issued by the City of San Jose' (the "City'') to fund the acquisition of property and the construction of improvements to neighborhood library facilities, police and fire stations, public safety training facilities and 911 communications facilities within the City. The Bonds are general obligations of the City, and the City Council is empowered and is obligated to levy ad valorem taxes for the payment of interest on, and principal of, theBonds upon all property subject to taxation by the City without limitation of rate or an1ount (except certain personal property which is taxable at limited rates). The City will direct the County of Santa Clara (the "County") to collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of debt service on the Bonds. The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (collectively referred to herein as "DTC"). Purchasers of the Bonds (the "Beneficial Owners") will not receive physical certificates representing their interest in the Bonds. The Bonds are issuable as fully registered securities in denominations of $5.000 or any integral multiple thereof. The Bonds will pay interest on March 1, 2006 and semiannually thereafter on March J and September 1 of each year. Payments of principal of and interest on the Bonds will be paid by Wells Fargo Bank, National Association. as Fiscal Agent, to DTC for subsequent disbursement to DTC Participants which will re1nit such payments to the Beneficial Owners of the Bonds. (Sec "THE BONDS Book-Entry-Only System"). The Bonds are subject to optional and mandatory redemption prior to maturity as described herein. This cover page contains certain information for general reference only. It is not a summary of all the provisions of the Bonds. Prospective investors must read the entire OfficialStatement to obtain information essential to the making of an infom1ed investment decision. MATURITY SCHEDULE Maturity Principal Interest Maturity Principal Interest {September 1) Amount Rate Yield CUSIP (September 1) Amount Rate Yield CUSIP 2006 $1,540,000 7.500% 2.650'k 798135VX4 2017 $1,545.(l()() 4.000C/o 3.800%* 798135WJ4 1,540,000 7.500 2.800 798135VY2 2018 1,545,(l()() 4.000 3.900* 798135WK1 20082007 1,540,000 7.500 2.900 798135VZ9 2019 1,545,000 4.000 4.(l()() 798135WL9 2009 1,540,000 7.500 ).000 798135WA3 2020 1,545.000 4.(XIO 4.(XXI 798135WM7 2010 1,540,IKIO 3.000 3.000 798135WBI 2021 1.545,(l()() 4.000 4.(l()() 798!35WN5 2011 1.540,(l()() 3.000 3.000 798135WC9 2022 1,545.(l()() 4.125 4.125 798135WPO 2012 1,540,(l()() 3.125 3.125 798135WD7 2023 1.545,000 4.250 4.250 798135WQ8 2013 1,540,(l()() 4.(l()() 3.400 798135WE5 2024 1,545.IXJO 4.250 4.250 798135WR6 20[4 1,540,(l()() 4.000 3.500 798135WF2 2025 1,545,000 4.300 4.30IJ 798135WS4 2015 1.540,(l()() 4.000 3.600 798135WGIJ 2026 1,545,0IJO 4.375 4.375 798135WT2 2016 1,545,000 4.(l()() 3.700* 798135WH8 2027 1,545,000 4.375 4.375 798135WU9 $6,!80.000 4.50% Term Bonds due September 1, 2031 Yield 4.580% (CUSlP 798135WY7) $6,180,000 4.50% Term Bonds due September 1, 2035 Yield 4.600% (CUSlP 798135WW5) * Priced to par call on September!. 2015 JvIBIAInsurance Corporation, at the request of the initial purchasers, will issue simultaneously \.Viththe issuance of the Bonds, a municipal bond insurance policy insuring the scheduled pay1nent of the principal of and interest on only the Bonds maturing on September 1, 2031 and Septe1nber l, 2035, when due, as described herein. The Bonds are delivered when, as and (f issued, subject to the approval of legality by Jones /fall, A ProjCssional Law Corporation, San Francisco, C'alifornia, Bond Counsel to the C'ity. Jones Hall, A Professional Law Corporation, is also acting as Disclosure Counsel to the City. Certain legal matters are being passed upon for the Cily by the City Attorney. It is anticipated that the Bonds will be available for delivery through DTC on or about June 23, 2005, in New York, Nett1 York. The date of this Official Statement is June 15, 2005. No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representations olher than those contained herein. If giYen or made. such other information or representations must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to se11 or the solicitation of an offer to buy, nor shall there be any sale of theBonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract wilh the purchasers of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or 1natters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be constn1ed as representations of fact. The infonnation set forth herein has been obtained fron1 officialsources which are believed to be reliable. However, it is not guaranteed as to accuracy or completeness and is not to be constmcd as a representation by the City. The information and expressions of opinion herein are subject to change without notice and neither delivery of this Official Staten1ent nor any sale 1nade hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof This Official Statement is being sub1nit.tedin connection with the sale of the Bonds referred to herein and may not be reproduced or used. in whole or in part, for any other purpose, unless authorized in writing by the City. All summaries of documents and laws are made subject to the provisions thereof and do not purport to be complete statements of any or all such provisions. The Underwriter has provided the following sentence forinclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. Certain statements contained in this Official Statement do not reflect historical facts but are forecasts and "forward­ looking statements." No assurance can be given that the future results discussed herein will be achieved and actual results may differ materially from the forecasts described herein. In this respect, the words "estimate," "forecast," "project," "anticipate," "expect,'' "intend," "plan," "believe" and similar expressions are intended to identify forward­ looking statements. All projections, forecasts, assumptions and other forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth in this Official Statement. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVER ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS, INSTITUTIONAL INVESTORS, BANKS OR OTHERS AT PRICES LOWER OR HIGHER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. CITY OF SAN JOSE City Council Ron Gonzales, Mayor District 1: Linda J. LeZotte, Member District 2: Forrest Williams, Member District 3: Cindy Chavez, Vice Mayor/Member District 4: Chuck Reed, Member District 5: Nora Campos, Member District 6: Ken Yeager, Member District 7: [Vacant] District 8: David D. Cortese, Member District 9: Judy Chirco, Member District 10: Nancy Pyle, Member CityOfficials Del D. Borgsdorf, City Manager Richard Doyle, City Attorney Lee Price, City Clerk Scott P. Johnson, Director of Finance City Staff Julia H. Cooper, Deputy Director of Finance, Debt and Risk Management