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Staff Report
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| Subject: | Resolution of the City Council of the City of Rocklin authorizing use of the Bond Opportunities for Land Development (BOLD) Program; authorizing the California Municipal Finance Authority to accept applications from property owners, conduct proceedings and levy special taxes within the territory of the City pursuant to the Mello-Roos Community Facilities Act of 1982, as amended; and authorizing related actions |
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| | Date: | July 9, 2019 |
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| | Submitted By: | Ted Williams, Financial Analyst
Kimberley Sarkovich, Assistant City Manager/Chief Financial Officer
Mary Rister, Finance Manager
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| | Department: | Administrative Services - Finance |
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| | | | | | | | Staff Recommendation: | | Conduct a public hearing and thereafter, adopt a Resolution of the City Council of the City of Rocklin authorizing use of the Bond Opportunities for Land Development (BOLD) Program; authorizing the California Municipal Finance Authority to accept applications from property owners, conduct proceedings and levy special taxes within the territory of the City pursuant to the Mello-Roos Community Facilities Act of 1982, as amended; and authorizing related actions |
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| | | | | | | | | BACKGROUND: | Bond Opportunities for Land Development (“BOLD”) is a program that can be used by developers to finance public infrastructure and/or impact fees through the issuance of tax exempt bonds. It is administered by the California Municipal Finance Authority (“CMFA”), a joint powers authority. CMFA performs the administrative tasks for both the bond offering and the ongoing administration after the bond offering. The workload for City staff is minimal for BOLD bonds. Because the bonds are issued by CMFA the City has no financial obligation for payment of the bonds, even in the case of a default.
The BOLD program works very similarly to the program the City currently uses for this purpose, the Statewide Community Infrastructure Program (“SCIP”). SCIP was instituted by the California Statewide Communities Development Authority (“CSCDA”) in 1999 for the same purposes that BOLD achieves. Since joining the program in 2005, 10 development projects in Rocklin have used SCIP financing to help pay for infrastructure construction and/or developer impact fees. The key difference between BOLD and SCIP is that the cost of issuance of BOLD bonds is approximately 15% to 25% lower than the cost of issuance of SCIP bonds. This would save the special taxpayers approximately $42,000 over the life of a typical $1,500,000 Rocklin SCIP bond issuance.
Currently many jurisdictions in the state are adopting the BOLD program. Recently the City of Roseville and Placer County have joined CMFA and are working with developers on using BOLD in upcoming developments. The local developer community including Building Industry Association members are aware of the BOLD program and have approached staff to encourage the City to transition to the BOLD program.
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| | | | | | | | | This Staff Report has been reviewed by the City Attorney for legal sufficiency and by the City Manager for content. |
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