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Home My WebLink About16 Schedule a public hearing for SCIP related financingAgendaItem#I16k’TRUCKEEDONNER,PublicUtilityDistriJACTIONTo:BoardofDirectorsFrom:LisaHallDate:May01,2019Subject:ConsiderationofschedulingapublichearinginregardstotheDistrictenteringintoaJointPowersAgreementwithCaliforniaStatewideCommunitiesDevelopmentAuthorityenablingtheDistricttobegintoreviewDeveloperapplicationsforSCIPfinancing.1.WHYTHISMATTERISBEFORETHEBOARDThisitemisconsiderationtoscheduleapublichearinginregardstotheDistrict’sparticipationinaJointPowersAgreementwithCaliforniaStatewideCommunitiesDevelopmentAuthority(CSCDA)toenabletheDistricttobegintoreviewDeveloperapplicationsforpotentialStatewideCommunityInfrastructureProgram(SCIP)financing.StaffheldaworkshopwiththeBoardattheJune6,2018BoardmeetingonSCIPfinancing.2.HISTORYDistrictCodeTitle3.01,FinancialGoals,establishestheDistrict’splanning,revenue,debtandreservegoals.TheBoardadoptedthissetoffinancialgoalsin2004.Since2004therehavebeensignificantchangestofinancialregulatorymarketswithaddedscrutinyfortheissuanceofpublicdebt.SenateBill1029(SB1029)becameeffectiveJanuary1,2017increasingcompliancerequirementsforissuersofpublicdebt.IssuersmustcertifyontheReportofProposedDebtIssuancethattheyhaveadoptedlocaldebtpoliciesconcerningtheuseofdebtandthattheproposeddebtissuanceisconsistentwiththosepolicies.Iftheissuerhasreceivedcertificationfromanothergovernmentalentitythatwillusetheproceedsofthedebtissue,thentheissuermayrelyonacertificationbythatothergovernmentalentitythatithasadoptedlocaldebtpoliciesthatinclude:A)Thepurposesforwhichthedebtproceedsmaybeused;B)Thetypesofdebtthatmaybeissued;C)Therelationshipofthedebtto,andintegrationwith,theissuer’scapitalimprovementprogramorbudget,ifapplicable;D)Policygoalsrelatedtotheissuer’splanninggoalsandobjectives;andE)Theinternalcontrolproceduresthattheissuerhasimplemented,orwillimplement,toensurethattheproceedsoftheproposeddebtissuancewillbedirectedtointendeduse. TheBoardatitsSeptember5th,2018meeting,adoptedResolution2018-20,amendingDistrictCode,Title3,FinanceandAccountingrevisingtheDistrict’sdebtpoliciesinaccordancewiththerequirementsofSB1029.TheBoardapproveddebtpoliciesallowingdebtforspecificprojectsincludingfinancingcapitalfacilitieswhereitisappropriatetospreadcostsoverfutureyears.Districtcodewasupdatedtolimitdebtmaturityto30years,betterreflectingtheusefullifeofDistrictfacilities.Land-basedfinancingspertherevisedcodearesubjecttoadditionalscrutinyincludingaclearlyarticulatedpublicpurpose,andaprioritizationofprojectsthatbestalignswiththeDistrict’scapitalimprovementplans.TheDistrictsdebtpoliciesincludethefollowingrobustequityrequirements:.LetterofCreditmayberequiredwhereoneownerholds25%ormoreequity;.Commercialandmixeduseprojectsrequire50%ofrentablespace;.Residentialonlyprojectsrequirepre-saleof50%ofunits.Reservefundrequiredforthelesserof125%ofannualaveragedebtserviceor10%ofthebondproceeds;and.Valuetodebtratiominimumis4:13.NEWINFORMATIONDevelopmentactivityisupinTruckeeandwithitaresurgenceofinterestinland-basedfinancingorimprovementdistricts.Therearetwotypesofimprovementdistrictsbeingconsidered,AssessmentDistrictsandMello-RoosCommunityFacilitiesDistricts(CFD).AssessmentDistrictsareallowedunderthe1913MunicipalImprovementActandthe1915ImprovementBondActandmustpasshearingandvotingrequirementsofProposition218.Alternatively,the1982Mello-RoosCommunityFacilitiesActallowstheformationofaCFDandrequiresavoteofresidentsoftheCFD.TheDistrictinthepasthasparticipatedinMello-RoosCFDfinancing.TheDistrictissuedandadministersbondsonbehalfoftheOldGreenwoodandGray’sCrossingCFDs.ConsiderablestafftimewasandcontinuestoberequiredinthebondissuanceandadministrationoftheCFDs.Eithertypeofimprovementdistrictmaybeadministeredbyathirdpartythroughconduitpooledfinancing.ThereareseveralprogramsavailablesuchastheBondOpportunitiesforLandDevelopment,andtheStatewideCommunityInfrastructureProgram(SCIP).TheDistrictwasapproachedbytwodevelopersinquiringabouttheSCIPfinancingoption.SCIPisadministeredbytheCaliforniaStatewideCommunitiesDevelopmentAuthority(CSCDA),ajointpowersauthoritysponsoredbytheLeagueofCaliforniaCitiesandtheCaliforniaStateAssociationofCounties.SCIPisaconduitpooledfinancingprogramofferingeitherMello-RoosorAssessmentDistrictlandsecuredbonds. SCIPisapooledtaxexemptfinancingprogramwhichcanfinanceimpactfeesandpublicimprovementsforprivatedevelopments.AnyCity,County,orSpecialDistrictiseligibletoparticipateinSCIPtoprovidethelocalagencythemeansofofferingTheprogrammayreimbursepropertyownersforimpactfeesandfundingofpublicimprovements.Publicimprovementscanbefinancedonanacquisitionbasiswhencompletepursuanttoanacquisitionagreementbetweenthedeveloperandthelocalagency.Prevailingwageappliestotheimprovementsbeingfunded.Eligiblefeesincludeinfrastructuretobeownedbyapublicagencyanddonotincludeschool,housing,fire,andpolicefees.Attachment1isalistofFAQsfromtheCSCDA’swebsite.ParticipationinSCIPrequiresaPublicHearing,aBoardapprovedSCIPResolution,andaJointPowersAgreement.TheSCIPResolutionauthorizessigningtheJointPowersAgreement.TheJointPowersAgreementisthelegalagreementthatprotectstheDistrictagainstanyliabilityassociatedwiththeSCIPanditalsogivestheCSCDAtheauthoritytoissuethebonds.DevelopersmayapproachmultipleagenciesrequestingparticipationinSCIPfinancing.Eachagencyapproachedforinfrastructurefinancingmustindividuallypassaresolutionallowingtheprogram.InfrastructurefundingacrossmultipleagenciesmaybeprocessedinonebondissuanceandincludedinoneAssessmentDistrict.TheCSCDAmanagesthedebtandadministersthebondonbehalfofparticipatingagenciesfreeingthemofadministrativeresponsibility.SchedulingthePublicHearingforadoptionofaDistrictSCIPResolutionandaJointPowersAgreementwithtehCSCDAisthenextstep.UponapprovaltheDistrictwouldthenbeinapositiontoevaluationdeveloperapplicationsforSCIPfinancing.4.FISCALIMPACTThereisnofiscalimpactassociatedwiththisitem.5.RECOMMENDATIONScheduleapublichearingtotakeplaceattheJune1,2019attheregularlyscheduledBoardMeetingforpubliccommentandconsiderationofparticipationintheJointPowersAgreementwithCSCDAenablingtheDistricttoevaluateDeveloperapplicationsforSCIPfinancing.o;a1tt?I4oJJLisaHallMichaelD.HolleyAdministrativeServicesDirectorGeneralManager 4/22/2019CSCDA-SCIPFAQsinSearchHOMECONTACTUSAGENDASRESOURCESNEWSABOUTUSAPPLYONLINEHOMEIINFRASTRUCTUREFINANCEPROGRAMSISTATEWIDECOMMUNITYINFRASTRUCTUREPROGRAM(SCIP)ISCIPFAQSSTATEWDECOMMUMTYNFRASTRUCTUREPROGRAM(SCP)SCIPFINANCETEAMISCIPNEWSLETTERUPCOMINGSCIPISSUANCEDATESaCOMMUNITYFACILmESDISTRICT(CFD)FINANCINGFrequentlyAskedQuestionsaboutStatewideCommunityInfrastructureProgram(SCIP)WhatisCSCDA?WhoaretheparticipantsofCSCDA?Whatareeligibledevelopmentimpactfees?Howcanimpactfeesbemadetobepaidinadvance?IfweuseSCIPandbecomeamemberofCSCDA,areweinanywayliableforpaymentsordefaultsofotherparticipants?Whatisthedifferencebetweenanassessmentlienandanassessmentbond?Isvoterapprovalrequired?Isalocalagencyparticipantofthepoolliabletomakeanybondpayments?HowisSCIPadministered?Whatarethedutiesofalocalagencyparticipantafterthebondsareissued?HowdoesSCIPmeetthebenefittest?Docommercialprojectsqualify?HowdoyoujoinSCIP?WhatisCSCDA?TheCaliforniaStatewideCommunitiesDevelopmentAuthority(CSCDA)isajointpowersauthoritysponsoredbytheLeagueofCaliforniaCitiesandtheCaliforniaStateAssociationofCounties.WhoaretheparticipantsofCSCDA?Over500cities,countiesandspecialdistrictsintheStatearemembersofCSCDA.Whatareeligibledevelopmentimpactfees?Feespaidtoalocalagencytomitigatetheimpactofdevelopmentandwhichwillultimatelybeusedbythelocalagencytopayforthecostsofpublicinfrastructure.PUBLICAGENCYPROGRAMSPRIVATEACTIVITYPROGRAMSNEWMARKETSTAXCREDITPACEFINANCEPROGRAMSINFRASTRUCTUREFINANCEPOLICIESANDFEESPROGRAMPROGRAMSpsc;ipFAQSSCIPPRESENTATIONSCIPFAQsAPPLYNOW11111LOCALGOVERNMENTHowcanimpactfeesbemadetobepaidinadvance?Thelocalagencycannegotiatewiththedevelopertohavethefeespaiduponapprovalofaspecificplan,developmentagreementorvestingtentativemapandthenfundthefeesthroughSCIP.IfweuseSCIPandbecomeamemberofCSCDA,areweinanywayliableforpaymentsordefaultsofotherparticipants?No.Ifoneparticipantweretodefault,therewouldbenoeffectontheotherparticipants.Thereisnocross-collateralizationofpaymentsorassessments.Whatisthedifferencebetweenanassessmentlienandanassessmentbond?TheassessmentlienisimposedontheparceloflandpursuanttotheMunicipalImprovementActof1913.TheActauthorizesanissuertoimposeanassessmentlienonbenefitedpropertytofinancevariouspublicimprovements.TheBondsareLimitedObligationImprovementBondsauthorizedundertheImprovementBondActof1915andsecuredbytheliensimposedunderthe1913Act.1/2 4/22/2019CSCDA-SCIPFAQsBIIII0Nisvoterapprovalrequired?No.Thereisnorequirementforageneralelection.CSCDAwillconductahearingandlandownerballotprotestprocedure.SinceaconditionofparticipationinSCIPislandownerconsent,protestsarenotexpected.T0Isalocalagencyparticipantofthepoolliabletomakeanybondpayments?No.Thebondsarelimitedobligationbonds,andundernocircumstanceisalocalagencypoolparticipantliablefromitsgeneralfundorfromanyotherrevenuesource.HowisSCIPadministered?SCIPisadministeredbyhighlytrainedandexperiencedconsultantsselectedbyCSCDAwhopreparethetaxroll,disseminatecontinuingdisclosurereports,andhandledelinquencies.Whatarethedutiesofalocalagencyparticipantafterthebondsareissued?TheonlydutiesrequiredaretoprovideSCIPconsultantswithinformationconcerningthedevelopmentsuchasrecordationofsubdivisionsandchangesinpropertyownership.HowdoesSCIPmeetthebenefittest?Thebenefittestismetbythefactthattheeachpropertymustpaytheimpactfeeinordertodevelop.Thisdiffersfromtypicalassessmentproceedingsinthatthebenefittestistiedtotheimprovement.Docommercialprojectsqualify?Yes,infactthepermitfeeprogramisidealforcommercialprojectswhichcanpaysubstantialimpactfeesbutnormallydonotparticipateinbondfinancing.Exampleswouldbeshoppingcentersorhigh-risebuildings.HowdoyoujoinSCIP?Thelocalagency’sgoverningCouncilorBoardmustpasstwoSCIPresolutions.Fromthatpoint,projectquestionnairesarefilledoutandsubmittedtothefinancingteamforindividualfundingrequests.FOUNDEDANDSPONSOREDBYI1L%SIIyJ_u!IC1TiESPubticAgencyPrograms,PrivateActivityProgramsNewMarketsTaxCreditProgramPACEFinanceProgramsInfrastructureFinanceProgramsPoliciesAndFees©2019CSCDA.ALLRIGHTSRESERVED.LEGALPRIVACYPOLICY2/2