HomeMy WebLinkAbout16 SCIP Financing 5-1-19
ACTION ITEM #16 Applications for SCIP FinancingEnabling the District to Begin to Review Developer California Statewide Communities Development Authority the District Entering into a
Joint Powers Agreement with earing in Regards to HConsideration of Scheduling a Public Applications for SCIP FinancingEnabling the District to Begin to Review Developer California Statewide
Communities Development Authority the District Entering into a Joint Powers Agreement with earing in Regards to HConsideration of Scheduling a Public May 1, 2019
Statewide Community Infrastructure Program to be requiredgoals and policies Set specific local •reporting requirementsIncreased •(SB 1029) concerning public debtCode changes were needed
to comply with California Senate Bill 1029 •20 amending District Code, Title 3, Financing and Accounting-2018The Board at its September 5, 2018 meeting adopted Resolution •BACKGROUND
/ HISTORY Statewide Community Infrastructure Program
BACKGROUND / HISTORY Internal control procedures •Policy goals related to the issuer’s planning goals and objectives•How the debt supports the issuer’s capital improvement plan•Types
of debt that may be issued•Purposes for which debt proceeds may be used•outlinesdebt management policy that District code was amended to include a •Statewide Community Infrastructure
ProgramStatewide Community Infrastructure Program
BACKGROUND / HISTORY Assessment districts•Community facilities districts•Certificates of participation•Revenue bonds••Types of debt that may be issued include, but are not limited to•Statewide
Community Infrastructure ProgramStatewide Community Infrastructure Program
BACKGROUND / HISTORY CFDsRoos-Melloalone Assessment Districts or -Authority (CSCDA) to establish standCalifornia Statewide Communities Development SCIP allows •Any City / County / Special
District can participate in SCIP•impact fees and public improvements for private developmentsSCIP is a pooled tax exempt financing program which can finance •in District Code Title
3SCIP is one form of debt for improvement districts which is permitted •Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program
BACKGROUND / HISTORY(Assessment Dist.)Assessment BondsLimited Obligation Special LevyAssessment LienSpecial Tax Tax RollCounty Property Collected on (mortgage/commercial loan) on the
property.to any private debt seniorproperty taxes. Therefore, both are Special taxes & assessments share the legal lien status of (Community Facilities Dist.)Special Tax BondsRoos-Mello
Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program
BACKGROUND / HISTORY Refunding and restructuring outstanding debt•Priority for certain projects •Public purpose must be clearly articulated•based financings-Land•Finance capital facilities•Purposes
for which debt proceeds may be used•Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program
BACKGROUND / HISTORY GreenbeltsOpen Space and Bicycle and Pedestrian TrailsBridges and ThoroughfaresParks and Parkwaysand PipelinesSewer Electric SupplyStorm DrainageSidewalksPedestrian
MallsInterchangesFreeway Street and RoadwaysLandscapingParkingStreet lightingGas SupplyWater SupplyFlood ControlEligible Improvements identified in the 1913 / 1915 Assessment
Act•Does not include school, housing, fire, and police fees•agencyEligible fees include fees for infrastructure to be owned by public •Statewide Community Infrastructure ProgramStatewide
Community Infrastructure Program
BACKGROUND / HISTORY requested projectdeveloper Board review and approval is required for each District •Fall)are typically two issues a year (in the Spring and There •owner assessments
exempt bonds secured by property -rate tax-are 30 year fixedThese •CSCDAbonds are issued by the The •Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program
NEW INFORMATION Raley’s potential SCIP financingDevelopers have expressed interest in the District’s participation in •Development activity is up in Truckee•Statewide Community Infrastructure
ProgramStatewide Community Infrastructure Program
NEW INFORMATION issuance and assessment districtThe CSCDA may bundle infrastructure across agencies into one bond •individually pass a resolution to participate in the programEach agency
approached by a developer for SCIP financing must •A Joint Powers Agreement with the CSCDA•A Board approved SCIP Resolution•A Public Hearing•Participation in SCIP requires•Statewide
Community Infrastructure ProgramStatewide Community Infrastructure Program
NEW INFORMATION requisition of fundsApprove •lawwill be spent in accordance with federal tax Funds •Resolutionpublic improvements, the form of which is included with the SCIP Will execute
an acquisition agreement to reimburse developer for •SCIPEngineer's Report prepared by review and verify eligible fees and improvements contained in the Will •Hearingsigned by the Local
Agency prior to the Public can submit funding applications online but they must be Developers •ProgramResolution consenting to use of the SCIP Adopt a SCIP •Be a member of the CSCDA•Local
agency requirements•Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program
NEW INFORMATION debt ratio minimum should be 4:1-to-Value•10% of the bond proceeds•125% of annual average debt service or•Reserve fund required for the lesser of•sale of 50% of units-Residential
only projects require pre•leased or Letter of Credit-50% of rentable space pre•Letter of Credit where one owner holds 25% or more equity•goals includingmanagement against District debt
SCIP financing requests would be evaluated •Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program
NEW INFORMATION Execute a Joint Powers Agreement with the CSCDA•Request Board approval for adoption of a District SCIP Resolution•Schedule a Public Hearing•Next steps are to position
the District to participate in SCIP financing•Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program
FISCAL IMPACT handled by the CSCDAInitial project evaluation, bond issuance, and administration are •up-Some staff time is needed for initial program set•next stepsThere is no monetary
investment required by the District for these •Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program
RECOMMENDATION financingDistrict to evaluate Developer applications for SCIP participation in the Joint Powers Agreement with CSCDA enabling the scheduled Board Meeting for public comment
and consideration of 5, 2019 regularly Schedule a public hearing to take place at the June •Statewide Community Infrastructure ProgramStatewide Community Infrastructure Program