HomeMy WebLinkAbout03.d. Set Public Hearing on August 17, 2023 at 2:30 p.m. to Consider Approving Central San Membership in the California Municipal Finance Authority (CMFA) and Participation in the Bond Opportunities for Land Development (BOLD) ProgramPage 1 of 3
Item 3.d.
MEETING DATE:
SUBJECT
SUBMITTED BY:
BOARD OF DIRECTORS
POSITION PAPER
JUNE 20, 2023
REVIEW DRAFT POSITION PAPER TO SET PUBLIC HEARING ON
AUGUST 17, 2023 AT 2:30 P.M. TO CONSIDER APPROVING CENTRAL SAN
MEMBERSHIP IN THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY
(CMFA)AND PARTICIPATION IN THE BOND OPPORTUNITIES FOR LAND
DEVELOPMENT (BOLD) PROGRAM
INITIATING DEPARTMENT:
RUSS LEAVITT, ENGINEERING ASSISTANT ENG-PDS-DIVISION MANAGER
III
REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
EDGAR J. LOPEZ, PROVISIONAL DIRECTOR OF ENGINEERING AND
TECHNICAL SERVICES
PHILIP LEIBER, DEPUTY GENERAL MANAGER
GREG NORBY, DEPUTY GENERAL MANAGER
ISSUE
A public hearing is required forCentral San to join the California Municipal Finance Authority (CMFA) and
participate in the Bond Opportunities for Land Development (BOLD) Program.
BACKGROUND
The developer of a large, planned residential project in downtown Lafayette is participating with the City of
Lafayette in a program to allow property owners to finance public capital improvements and/or
development impact fees for public capital improvements imposed on new developments (such as our
Capacity Fee). The developer would like Central San to likewise participate in this program so that similar
expenses required of the development by Central San also would qualify for the financing program. (The
estimated qualifying Central San fees would be just over $600,000.)
While land developers may use a variety of investment or lending sources to initiate their intended capital
improvements, many long-term expenses are financed using tax-exempt municipal bonds. Tax-exempt
bonds provide reduced borrowing costs, which increase project feasibility, but require partnership with
local entities.
June 20, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 100 of 106
Page 2 of 3
California Municipal Finance Authority- To assist local governments in establishing and managing
efficient, low-cost bond financing programs for land development projects, the CMFA was established as
a state-wide joint powers authority (JPA). CMFA members are numerous public entities throughout
California. CMFA has the same powers as its members and can issue municipal bonds on behalf of
members after the member jurisdiction holds a public hearing on the proposed issuance. Participation is
at no cost to members. Due to its status as a purpose-built financing authority, CMFA is typically able to
provide reduced borrowing and administrative costs for taxpayers,
Bond Opportunities for Land Development — CMFA offers the BOLD Program to provide its
members in the State a means to accommodate community facilities district (CFD) formation and bonding
within their jurisdiction.
By joining CMFA as a member and participating in the program, member agencies such as Central San
can outsource CFD formation, administration, and bond issuance, while facilitating new development within
its boundaries with minimal cost and involvement by the agency and its staff. The BOLD Program is
facilitated through bond professionals, chosen by CMFA, with specialized expertise in CFD bond
issuance and sales — bond counsel, underwriter, and other advisors provided as needed, all ranked among
the top firms in the field.
For land developers to use the BOLD Program for qualifying expenses, Central San needs to hold a
public hearing to approve joining the CMFA and participating in the BOLD Program. Participation in said
program will enable property owners to finance public capital improvements and/or development impact
fees for public capital improvements imposed on new development within the boundaries of Central San.
These public capital improvements, if financed, will be among the public capital improvements required in
connection with a given development project. Said development impact fees, if financed, will be used by
Central San to pay for public capital improvements that will serve Central San and which will be of a type
and nature authorized under the Mello -Roos Community Facilities Act of 1982 (California Government
Code Section 53311 et seq.). Participation in this program does not itself authorize Central San to impose
additional public capital improvements or new or additional development impact fees on any property
owner.
ALTERNATIVES/CONSIDERATIONS
The Board could choose not to join the CMFA and not to participate in the BOLD Program, in which case no
public hearing would be needed. Alternatively, the Board could consider discussing this item, but scheduling
a different date for the public hearing.
FINANCIAL IMPACTS
None by setting the public hearing. I n addition, there are no fees or obligations for Central San to join
CMFA and approve participation in the BOLD Program.
COMMITTEE RECOMMENDATION
On June 20, 2023, the Finance Committee considered having the Board set this public hearing and
recommended
RECOMMENDED BOARD ACTION
Set a public hearing for August 17, 2023,at 2:30 p.m. at the Central San Board Room for the Board to
consider approving Central San membership in the CMFA and participation in the BOLD Program.
June 20, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 101 of 106
Page 3 of 3
Strategic Plan re -In
GOAL ONE: Customer and Community
Strategy 1 - Deliver high -quality customer service, Strategy 2 - Promote initiatives to advance affordable and equitable
access to services
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 2 - Encourage and facilitate public participation
June 20, 2023 Regular FINANCE Committee Meeting Agenda Packet - Page 102 of 106