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HomeMy WebLinkAbout17 SCIP Workshop - RevisedAgenda Item #17 To: From: Date: Subject: Board of Directors Lisa Hall June 06, 2018 Workshop on the Statewide Community Infrastructure Program ("SCIP") WORKSHOP 1. WHY THIS MATTER IS BEFORE THE BOARD This informational item is before the Board to provide an update and discussion on the Statewide Community Infrastructure Program ("SCIP") offered by the California Statewide Community Development Authority ("CSCDA"). 2. HISTORY The District, in order to finance various public improvements needed to develop property within the Town of Truckee, formed Community Facilities Districts (CFD), which issued Special Tax Bonds pursuant to the Mello-Roos Community Facilities Act of 1982. Accordingly, the Bonds are special obligations of the respective Community Facilities Districts and are payable solely from revenues derived from taxes levied on and collected from the owners of the taxable land within the respective CFDs. As improvements were completed, the infrastructure was donated in the form of a capital contribution to the Town of Truckee, the Truckee Sanitary District, Southwest Gas, and the District. These Special Tax Bonds are not general or special obligations of the District. The last time the District participated in a new Special Tax Bond issuance for a CFD was in 2004 for the Gray's Crossing CFD. The recession coupled with a slow economic recovery has repressed new large scale developments in Truckee. Development activity has recently picked up and the District was approached by two separate developers inquiring about the District’s willingness to participate in SCIP financing. SCIP financing is a form of infrastructure financing offered by the CSCDA as allowed by the Municipal Improvement Act of 1913 / 1915. The Town of Truckee held an educational session about Mello-Roos and Assessment District financing in February in reaction to developer inquiries. Following the workshop the Town Council directed Town staff to develop a Local Goals and Policies document which was presented at the May 22, 2018 Town Council meeting. The Town, per its proposed Local Goals and Policies document requires that financing must include a commercial or mixed use component and excludes residential-only projects. The Town Council asked staff to reschedule the topic for July 10. Revised projects. The Town Council asked staff to reschedule the topic for July 10. 3. NEW INFORMATION James Hamill, Managing Director of the CSCDA will be providing information about the CSCDA’s programs. The CSCDA is a Joint Powers Authority (“JPA”) which facilitates and administers bond issuances available to member agencies. Membership in the Authority is open to every California city, county, and local agency. The CSCDA provides two types of financing, SCIP and stand-alone Mello-Roos bonds. SCIP is a pooled tax exempt financing program which can finance impact fees and public improvements for private developments. Eligible participants include cities, counties, and special districts. SCIP is employed for small bond issues less than $5M that are grouped by CSCDA and sold as a single bond issue twice per year. The program started in 2003 and also allows CSCDA to establish and administer stand- alone Mello-Roos CFDs. Bond issues exceeding $5M are typically handled via an individual offering. Rick Brandis and Nicki Tallman, Principals of Brandis Tallman LLC, and placement agent of the District’s 2014 Old Greenwood Refunding Bonds will present an overview of the different structures available to issue infrastructure financing. Following is a comparison between a traditional CFD and SCIP financing. CFD Assessment District (SCIP) Project Scope Typically used for financings in excess of $5M Typically used for financings less than $5M Cost of Issuance and District Administration All standard costs (Bond issuance, Appraisals, Legal Fees, Underwriter’s Discount, Etc.) Consultants selected by CFD / more control over costs and process All standard costs spread across the pool (Bond issuance, Appraisals, Legal Fees, Underwriter’s Discount, Etc.) and Joint Powers Authority Program Administration Costs Funding Options Fee Reimbursement or Fee Prefunding Program Fee Reimbursement or Fee Prefunding Program Enabling Legislation Mello-Roos Community Facilities Act of 1982 Municipal Improvement Act of 1913 / 1915 Tax Lien Assessment Flexible / Tied to Development Status Levied as a Special Tax Fixed Assessment on property Local Agency Duties Administration, tax assessment, foreclosure actions and debt service/ usually hire out Provide SCIP consultants with information needed to administer Assessment District The CSCDA acts as the lead agency in a SCIP financing. Each distinct entity providing infrastructure subject to financing must enroll as a program participant individually. Lisa Hall Michael D. Holley Administrative Services Director General Manager 4. FISCAL IMPACT There is no fiscal impact associated with this Workshop Item. 5. RECOMMENDATION Provide input and direction to staff.