Loading...
HomeMy WebLinkAbout04. Conduct a public hearing to consider approving Central San membership in the California Municipal Finance Authority (CMFA) and participation in the Bond Opportunities for Land Development (BOLD) ProgramDCENTRALSAN MEETING DATE: AUGUST 17, 2023 BOARD OF DIRECTORS POSITION PAPER Page 1 of 19 Item 4. SUBJECT: CONDUCTA PUBLIC HEARING TO CONSIDER APPROVING CENTRAL SAN MEMBERSHIP IN THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY (CMFA) AND PARTICIPATION IN THE BOND OPPORTUNITIES FOR LAND DEVELOPMENT (BOLD) PROGRAM. CONSIDER ADOPTING RESOLUTION 2023-024 AUTHORIZING CENTRAL SANTO JOIN CMFAAND RESOLUTION 2023-025 AUTHORIZING THE GENERAL MANAGER TO PARTICIPATE IN THE BOLD FUNDING PROGRAM SUBMITTED BY: INITIATING DEPARTMENT: THOMAS BRIGHTBILL, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- RUSS LEAVITT, ENGINEERING ASSISTANT III PDS -RATES AND FEES REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER PHILIP LEIBER, DEPUTYGENERAL MANAGER GREG NORBY, DEPUTY GENERAL MANAGER ISSUE A public hearing is required for Central San to join the California Municipal Finance Authority (CMFA) and participate in the Bond Opportunities for Land Development (BOLD) program. BACKGROUND In January 2023, staff received an inquiry asking if Central San would be open to joining CMFA and participating in the BOLD financing program. August 17, 2023 Regular Board Meeting Agenda Packet - Page 19 of 115 Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE A public hearing is required for Central San to join the California Municipal Finance Authority (CMFA) and participate in the Bond Opportunities for Land Development (BOLD) program. BACKGROUND In January 2023, staff received an inquiry asking if Central San would be open to joining CMFA and participating in the BOLD financing program. August 17, 2023 Regular Board Meeting Agenda Packet - Page 19 of 115 Page 2 of 19 California Municipal Finance Authority (CMFA) CMFA is a Joint Powers Authority (JPA) made up of over 30 cities and special districts formed to help finance public infrastructure projects in California. Member agencies from Contra Costa County include the City of Oakley, Diablo Water District, and the I ronhouse Sanitary District. The City of Lafayette is joining CMFA as well. Other sanitary district members include Sacramento Regional County Sanitation District and the Truckee Sanitary District. CMFA can issue municipal bonds on behalf of members after the member agency holds a public hearing on the proposed issuance. As a purpose-built financing authority, CMFA is typically able to reduce borrowing and administrative costs for these financing activities. There is no cost to member agencies to join CMFA or participate in financing. Attachment 1 is the resolution authorizing Central San to join CMFA. CMFA's Bond Opportunities for Land Development (BOLD) program The BOLD program allows projects to be financed through the sale of bonds and the formation of Community Facilities Districts (CFDs) which provide for the repayment of the bonds through a special tax levied against the parcel or parcels within the project. For projects involving Central San and other wastewater utilities, Capacity Fees and any costs for infrastructure which Central San would ultimately own can be financed. Upon approval of an individual project meeting BOLD's participating criteria, • the BOLD team works with the local agency(s) to determine which Capacity Fees and infrastructure construction costs are eligible to be funded and whether they qualify for tax-exempt bonds. • the local agency's Authorizing Officer (typically the General Manager or designee) approves the project's participation in BOLD financing for the agency • the BOLD team forms the CFD • the BOLD team sells bonds for the project and disburses funding to the local agency(s) The bonds for one project can cover fees and improvements for multiple participating agencies and the BOLD program can combine multiple projects into one bond issuance. The bonds are issued through CMFA and do not affect Central San's credit rating or debt coverage ratios. The bond issuance (including the associated costs) and ongoing CFD administration are handled by the BOLD team. Attachment 2 is the resolution authorizing Central San to participate in the BOLD financing program. Attachment 3 is "Exhibit A" to the BOLD resolution and is the Joint Community Facilities Agreement which described the process for CFD setup and disbursement of funds to Central San. Please note that this agreement contains its own Exhibits A and B. The Lafayette Project If participation in the BOLD program is approved by the Board of Directors, the first project likely to be financed is a mixed-use development in downtown Lafayette consisting of 138 residential condominiums and a new medical office building. The Central San Capacity Fees for the project are estimated to be approximately $600,000. The project is also pursuing financing the City of Lafayette's fees through the BOLD program. August 17, 2023 Regular Board Meeting Agenda Packet - Page 20 of 115 Page 3 of 19 ALTERNATIVES/CONSIDERATIONS The Board could choose not to join CMFA and to not participate in the BOLD program. FINANCIAL IMPACTS None byjoining CFMA. There may be minimal additional staff time required for working with the BOLD team on ongoing administration for the program. COMMITTEE RECOMMENDATION This matter was reviewed at the June 20, 2023, Finance Committee meeting. The committee recommended that the Board set today's public hearing to consider approving membership in CMFA and participating in the BOLD program. RECOMMENDED BOARD ACTION Conduct the public hearing and adopt Resolution No. 2023-024 and Resolution No. 2023-025, as presented. Strategic Plan Tie -In GOAL ONE: Customer and Community Strategy 2 - Promote initiatives to advance affordable and equitable access to services ATTACHMENTS: 1. Resolution 2023-024 join CMFA 2. Resolution 2023-025 approve BOLD and JCFA 3. Joint Community Facilities Agreement (note that this agreement has its own Exhibits A and B) 4. Presentation August 17, 2023 Regular Board Meeting Agenda Packet - Page 21 of 115 Page 4 of 19 Attachment 1 RESOLUTION NO. 2023-024 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT APPROVING, AUTHORIZING, AND DIRECTING EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement") in order to form the California Municipal Finance Authority (the "Authority"), for the purpose of promoting economic, cultural and community development and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, Central Contra Costa Sanitary District (the "District") has determined that it is in the public interest and for the public benefit that the District become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the District, including the financing of projects therefor by the Authority; and WHEREAS, there is now before this Board of Directors the form of the Agreement; and WHEREAS, the Agreement has been filed with the District, and the members of the Board of Directors of the District, with the assistance of its staff, have reviewed said document; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District (Central San) as follows: THAT the Agreement is hereby approved and the President, General Manager or the designee thereof is hereby authorized and directed to execute said document, and the District Secretary or such Secretary's designee is hereby authorized and directed to attest thereto; and THAT the executing officers(s), the Secretary and all other proper officers and officials of the District are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized; and THAT this Resolution shall take effect immediately upon its passage; and THAT the Secretary shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel: August 17, 2023 Regular Board Meeting Agenda Packet - Page 22 of 115 Page 5 of 19 Central Contra Costa Sanitary District Resolution No. 2023-024 Page 2 of 2 Ronald E. Lee, Esq. Jones Hall, APLC 475 Sansome Street, Suite 1700 San Francisco, CA 94111 PASSED AND ADOPTED this 17th day of August 2023 by the Board of Directors of Central San by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District August 17, 2023 Regular Board Meeting Agenda Packet - Page 23 of 115 Page 6 of 19 Attachment 2 RESOLUTION NO. 2023-025 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AUTHORIZING EXECUTION AND DELIVERY OF JOINT COMMUNITY FACILITIES AGREEMENTS IN CONNECTION WITH THE BOND OPPORTUNITIES FOR LAND DEVELOPMENT (BOLD) PROGRAM WHEREAS, the California Municipal Finance Authority (the "CMFA") is a joint exercise of powers authority, the members of which include numerous cities, counties and other local agencies in the State of California (the "State"); and WHEREAS, the CMFA has established the Bond Opportunities for Land Development Program (the "BOLD Program") to allow the financing through the levy of special taxes under the Mello -Roos Community Facilities Act of 1982, as amended (the "Act") of certain public facilities and development impact fees that finance public facilities (together, the "Improvements") to be owned by local agencies ("Participating Local Agencies") in the State; and WHEREAS, the Act provides that a community facilities district (a "CFD") may finance facilities to be owned or operated by a public agency other than the agency that created the CFD, or services to be provided by a public agency other than the agency that created the CFD, or any combination, pursuant to a joint community facilities agreement; and WHEREAS, the Central Contra Costa Sanitary District (the "District") may be eligible to receive certain development impact fees from development within CFDs within the boundaries or service area of the District; and WHEREAS, the District desires to become a Participating Local Agency and enter into a joint community facilities agreement with CMFA in connection with the use by developers of the BOLD Program within the boundaries or service area of the District; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District (Central San) as follows: THAT the Board of Directors hereby approves the execution and delivery of one or more joint community facilities agreements, substantially in the form presented to the Board of Directors and attached hereto as Exhibit A ("JCFA"), with such other changes as the General Manager, Director of Finance and Administration, or a designee of the foregoing (each, an "Authorized Officer") may deem appropriate or necessary in connection with the formation of one or more CFDs by CMFA as part of future financings. Each Authorized Officer is authorized and directed to execute and deliver one or more JCFAs on behalf of the District as necessary or appropriate in connection with the foregoing, and the Board of Directors finds and declares that entrance into each such agreement will be beneficial to residents within the District. Each Authorized Officer is hereby further authorized and delegated the ability to approve applications submitted by developers to the BOLD Program and evidence the District's official intent to reimburse itself for capital projects from tax-exempt bond proceeds issued by CMFA in connection with the BOLD Program; and August 17, 2023 Regular Board Meeting Agenda Packet - Page 24 of 115 Page 7 of 19 Central Contra Costa Sanitary District Resolution No. 2023-025 Page 2 of 2 THAT this Resolution shall take effect immediately upon its adoption. The Secretary of the Board is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of CMFA. PASSED AND ADOPTED this 17th day of August 2023 by the Board of Directors of Central San by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Barbara D. Hockett President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District August 17, 2023 Regular Board Meeting Agenda Packet - Page 25 of 115 Page 8 of 19 ttachment 3 CMFA BOLD PROGRAM Joint Community Facilities Agreement This Joint Community Facilities Agreement (this "Agreement"), dated to be effective as of August 17, 2023, by and between the CALIFORNIA MUNICIPAL FINANCE AUTHORITY, a joint exercise of powers authority duly organized and existing under the Constitution and laws of the state of California (the "CMFA"), and CENTRAL CONTRA COSTA SANITARY DISTRICT, a special district duly organized and existing under the Constitution and laws of the state of California (the "District," and together with CMFA, the "Parties"). WITNESSETH: WHEREAS, CMFA has conducted, or intends to conduct, proceedings under the Mello - Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.) (the "Act") to form community facilities districts (each, a "CFD") to finance certain public facilities and development impact fees used for public facilities authorized to be financed under the Act (together, the "CFD Improvements") as part of its Bond Opportunities for Land Development ("BOLD") program; WHEREAS, the CFD Improvements have or will be described in the resolution of formation for each CFD, including the impact fees payable to the District for public facilities that are set forth on Exhibit A hereto (the "District Improvements"); WHEREAS, CMFA intends to utilize the proceeds of sale of special tax bonds of the CFDs (the "Bonds") to finance some or all of the CFD Improvements, including the District Improvements; WHEREAS, under Section 53316.2 of the Act, CMFA may form a CFD to, among other things, finance the District Improvements, provided CMFA and the District enter into a joint community facilities agreement such as this Agreement; and WHEREAS, the District is willing to cooperate with CMFA in accomplishing the financing of the District Improvements, and to confer upon the CMFA full power to provide financing for the District Improvements in the event that proceeds of special taxes and/or bonds in the CFD become available and are utilized for such purpose; WHEREAS, this Agreement is made under the authority of Section 53316.2 of the Act; and WHEREAS, in consideration for the mutual undertakings of the Parties stated herein, the Parties agree as follows: AGREEMENT: 1. Administration of CFD and Issuance of Bonds by CMFA. CMFA shall administer each CFD, including employing and paying all consultants, annually levying the special tax and August 17, 2023 Regular Board Meeting Agenda Packet - Page 26 of 115 Page 9 of 19 paying and administering the Bonds, and complying with all state and federal requirements appertaining to the proceedings establishing the CFD and issuing and using the proceeds of the Bonds, including the requirements of the United States Internal Revenue Code of 1986, as amended (the "Code"). 2. Agreement to Hold and Disburse Available Amounts. CMFA shall hold or cause to be held the special tax and/or Bond proceeds available for the payment of District Improvements ("Available Amounts"). Available Amounts shall be disbursed only in accordance with Section 3 of this Agreement. 3. Disbursements. Available Amounts shall be disbursed pursuant to written requisitions of the District, in substantially the form attached hereto as Exhibit B and executed by the General Manager, Director of Finance and Administration, or a designee of the foregoing (each, an "Authorized Officer"). CMFA and its designees, including any trustee or fiscal agent holding Available Amounts, may conclusively rely on such requisitions for purposes of making such disbursements. All disbursements of Available Amounts to the District shall be made by wire transfer of immediately available funds or by check payable to the District's bank account number at a bank located within the United States on file with CMFA as part of the BOLD program, unless another method of payment is requested in writing by the District. 4. Use of Available Amounts for Public Capital Improvements. The District shall utilize Available Amounts for public capital improvements to be owned by the District. The public capital improvements to be constructed using Available Amounts will be set forth in requisitions submitted by the District in accordance with Section 3 above. To the extent the District is acquiring improvements from any developer using BOLD proceeds, the specifications, design, engineering, public bidding requirements and related matters for such improvements shall be separately negotiated and agreed between the District and the applicable developer. In connection with the issuance of Bonds by CMFA where the interest on the Bonds is intended to be excluded from income under federal tax law, the District will represent and certify to CMFA that it has a reasonable expectation of spending the proceeds of such Bonds within 3 years of the date of issuance of such Bonds. 5. Amendments. This Agreement may be amended by a writing signed by the Parties, including to update Exhibit A to reflect additional or different impact fees and public facilities to be financed through the BOLD program. 6. Term of this Agreement. This Agreement shall be in full force and effect from this date to and including its termination by mutual written agreement of the parties hereto. CMFA agrees to terminate this agreement upon request of the District upon delivery to CMFA of an opinion Bond Counsel to the effect that the termination of this Agreement will not adversely affect the exclusion from gross income of interest on the Bonds for federal income tax purposes. 7. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. [Signatures on Following Page] -2- August 17, 2023 Regular Board Meeting Agenda Packet - Page 27 of 115 Page 10 of 19 IN WITNESS WHEREOF the Parties have caused this Agreement to be executed by their authorized representatives as of the effective date stated above. CMFA: DISTRICT: CALIFORNIA MUNICIPAL CENTRAL CONTRA COSTA SANITARY FINANCE AUTHORITY DISTRICT 0 Edward J. Becker Executive Director -3- IN Roger S. Bailey General Manager August 17, 2023 Regular Board Meeting Agenda Packet - Page 28 of 115 Page 11 of 19 EXHIBIT A DESCRIPTION OF DISTRICT FEES/IMPROVEMENTS • Any public capital improvement to be constructed and/or acquired by the District, including those funded by impact fees payable to the District. A-1 August 17, 2023 Regular Board Meeting Agenda Packet - Page 29 of 115 Page 12 of 19 EXHIBIT B DISBURSEMENT REQUEST FORM To: California Municipal Finance Authority 2111 Palomar Airport Road, Suite 320 Carlsbad, California 92011 Re: BOLD Program - Request for Disbursement of Bond Proceeds The undersigned, a duly authorized officer of the Central Contra Costa Sanitary District (the "District") hereby requests a disbursement of "Available Amounts" from the account(s) set forth below, and certifies that the amounts listed below have been or will be spent by the District for listed public capital improvements as of the date indicated below or within 5 days thereafter: Account(s) Amount(s) [example, CMFA CFD No. 20_-_, Special Tax Bonds, Series 20_ Project Fund] $ Total: Wiring Instructions: The undersigned hereby additionally certifies as follows: 1. These funds have been or will be used to acquire and/or construct capital improvements, and this disbursement is not being made for the purpose of reinvestment. 2. None of the expenditures for which payment is requested have been reimbursed previously from other sources of funds. 3. If the total amount above is greater than the "Available Amounts" held by CMFA for the District, CMFA is authorized to amend the amount requested to be equal to the amount of such funds. 4. The amounts being disbursed pursuant to this request are being used to finance or refinance certain public infrastructure and facilities (the "Improvements"). The District will own, and for the entire useful life of such Improvements reasonably expects to own, all of such Improvements. The Improvements consist of the following: B-1 August 17, 2023 Regular Board Meeting Agenda Packet - Page 30 of 115 Page 13 of 19 [Describe the improvements] 5. To the extent any of such Improvements are sold to an entity that is not a state or local government agency, the District will seek the advice and approval of bond counsel to CMFA for the BOLD program prior to any such sale. The District will not allow any of such Improvements to be used (for example, by lease or other contract) in the trade or business of any nongovernmental persons (other than in their roles as members of the general public). All of such Improvements will be used in the performance of essential governmental functions of the District or another state or local government agency. The average expected useful life of such Improvements is at least years. The representations and covenants contained in this paragraph are intended to support the conclusion that the interest paid on the bonds issued to finance the Improvements is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the "Code"). Dated: Signature: Print Name: L3I August 17, 2023 Regular Board Meeting Agenda Packet - Page 31 of 115 August 17, 2023 California Municipal Finance Authority (CMFA) and the Bond Opportunities for Land Development (BOLD) Program Thomas Brightbill Senior Engineer 1 The California Municipal Finance Authority (CMFA) California Municipal Finance Authority is a statewide financing authority with over 300 members CMFA is a statewide joint powers authority whose members are public agencies throughout California CMFA'smission istohelp support economic development, the creation of affordable housing, and social programs throughout the State of California To reach its goals, CMFA has served as a conduit issuer on 650 financings for almost $15 billion since 2004 Currently CMFA is serving as the issuer for a $1.5 billion financing for Los Angeles World Airports Projects financed include affordable housing, higher education, healthcare, social service and others Page 14 of 19 Attachment 4 P -V Source: CMFA BOLD presentation dated 9/16/2023 2 August 17, 2023 Regular Board Meeting Agenda Packet - Page 32 of 115 $ *- CMFA's Bond Opportunities for Land Development (BOLD) Program Bond Opportunities for Land Development (BOLD) is a financingprogram offered by the California Municipal Financing Authority (CMFA) that allows for the financing of public infrastructure and impact fees for development projects. Any public agency can participate in the BOLD program, which offers low- cost, tax-exempt financing for development projects. To facilitate the program, Community Facilities Districts (CFDs) will be formed, managed and administered by CMFA, and minimal public agency efforts will be required in the process. The formation of a CFD will not necessitate the issuance of bonds or payment of debt service until a project is ready to issue debt. A CFD may be formed for a project with bonds issued at a later time when it best meets the project's development timeline. Bonds will be issued at multiple times throughout the year and may include more than one CFD, offering the advantage and option of low-cost, pooled financing 3 Authorized Jurisdictions CouMY�nitatlm psVtct rwwdlle _� Gib mWestS emmeRa "• Oft, of Dancho 0,l qty of Sk drove CRY of FairNeht Swarm pty' - -i-at, of 0= Ironhouse Sanitary District Source: CMFA BOLD presentation dated 9/16/2023 iown of Tmokee / Truckee SannaryDisiricl Truckee Donner Puhhc Uli lily pale ct pty of nocNlln - R.i llle Jdnl Union High Schod Dntrlct - �..� 9Doatlo County � �� pryer €incdn Dry peek 6emenlarysoaed pslrlc[ r of fkyerbenk at, afnta cull donde Ned lieaeationantl Parkps4icl ptynI-1 Vlma 4 of Lancaster ]b m PalmGafe ptyd NcmMlle pry al.e ll Sart[a Glartta Yalfey Walec-ct -pry mcahmesa , Source: CMFA BOLD presentation dated 9/16/2023 August 17, 2023 Regular Board Meeting Agenda Packet - Page 33 of 115 Page 15 of 19 Page 16 of 19 The BOLD Program Team E]ONES HALL PIPER I SANDLER 5 Kopp-c,l., GpuBFP P U Is L I ,_ P I N A N C I. GCG GOODWIN CONSULTING GROUP What May Be Funded Under BOLD Uncser i:ize iivLLi i'royrarn, (�I'41Fr� wiil creatB Community Facility Districts tofinanceeligibk improvements and local agency fees. Eligible improvements are extremely flexible and include: Streets and Sidewalks Sewer and Water Treatment Capacity Water and Sewer Lines Flood Control Parks Open Space Street Lighting School Facilities Additionally, the BOLD Program allows for the financing offees, including: City and/or County Fee4 (may require agreement) School Fees (requiresan agreementwith the school district) o Special District Fees (requires agreement) I 4 Source: CMFA BOLD presentation dared 9/16/2023 August 17, 2023 Regular Board Meeting Agenda Packet - Page 34 of 115 Page 17 of 19 7 Local Agency Requirements under BOLD A Local Agency is required to become a Member of CMFA (CMFA Membership is free) Local Agency may have a consultant review the financing plan to ensure that it meets with the Local Agency's Goals and Policies The Local Agency adopts a Resolution consenting to use BOLD Jones Hall will approve the eligibility of improvements and fees based on consultation with Local Agency An acquisition agreement will be executed between the Local Agency and CMFA to reimburse the developer for public improvements and/or fees The Local Agency will accept completed improvements and/or fees, and requisition of funds Source: CMFA BOLD presentation dated 9/16/2023 Minimum Project Requirements under BOLD Minimum size of $500,000* Required deposit to pay for formation of the CFD While a CFD can be formed, bond issuance will typically need to meet the following conditions: Project must have all discretionary development entitlements Tax burden (including all other taxes) cannot exceed 2% of the estimated value of the home Value of the property must be at least 4 times the bond lien and other overlapping debt Project must meet the goals and policies of the local jurisdiction *Total fees and infrastructure for all agencies Source: CMFA BOLD presentation dated 9/16/2023 August 17, 2023 Regular Board Meeting Agenda Packet - Page 35 of 115 CFD Formation Steps Developer submits application for their project to participate in BOLD BOLD team works with applicant and local agencies to determine which facilities and impact fees are eligible to be funded with tax-exempt bond proceeds or, if needed, taxable bonds Local Agency agrees to approve the project's participation in BOLD Developer provides deposit to CMFA to pay for formation of the CFD Special tax consultant drafts the Rate and Method of Apportionment and prepares CFD boundary map CFDs are established by CMFA and special taxes are billed in CMFA's name Formation proceedings are conducted by CMFA Public hearing and landowner vote are conducted by CMFA CFDs can be formed in as little as 3 months 0 Source: CMFA BOLD presentation dated 9/16/2023 Bond Issuance Once the CFD is formed and special tax is authorized to be levied, Bonds can be issued Bonds can be issued shortly after CFD formation or after an extended period of time depending on needs of project and status of development Bonds for larger CFDs may be issued on a stand-alone basis Most smaller CFDs (in terms of units and amount borrowed) will be issued as part of a Pooled Bond Funding Program —bonds for multiple CFDs issued through a single bond issue CMFA authorizes the sale of the bonds and issues bonds upon request CMFA approves Bond and disclosure documents Bonds are marketed and sold to investors by Piper Sandler Financing is closed and funds are delivered to pay infrastructure costs and impact fees Source: CMFA BOLD presentation dated 9/16/2023 10 August 17, 2023 Regular Board Meeting Agenda Packet - Page 36 of 115 Page 18 of 19 Page 19 of 19 • Public Hearing Questions and Discussion 11 August 17, 2023 Regular Board Meeting Agenda Packet - Page 37 of 115