HomeMy WebLinkAboutMINUTES - 09222009 - SD.4RECOMMENDATION(S):
RECEIVE report on the County's participation in Proposition 1A Securitization.
FISCAL IMPACT:
The Proposition 1A Securitization Program provides all program participants 100% of its
reduced property tax allocations for FY 2009/10. The General Fund's property tax allocation
will be reduced approximately $24 million. Once bonds are sold, local agencies have no
ongoing obligations with regards to use of proceeds or repayment of the bonds (County has
no credit exposure to the State).
BACKGROUND:
Proposition 1A was suspended by the Legislature and signed by the Governor as part of the
2009/10 State budget package. The impact to local agencies is a reduction in local agency
property tax allocations for FY 2009/10 of 8% of prior year taxes collected and allocated. A
draft schedule of rough estimates by fund is attached. The state must repay the withholding
between June 6 and June 13, 2013 with interest.
The legislature is currently reviewing a clean-up bill, Senate Bill 67. The clean-up bill
APPROVE OTHER
RECOMMENDATION OF CNTY
ADMINISTRATOR
RECOMMENDATION OF BOARD
COMMITTEE
Action of Board On: 09/22/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Susan A. Bonilla, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Lisa Driscoll, County
Finance Director, (925) 335-1023
I hereby certify that this is a true and correct copy of an action taken and entered
on the minutes of the Board of Supervisors on the date shown.
ATTESTED: September 22, 2009
David J. Twa, County Administrator and Clerk of the Board
of Supervisors
By: June McHuen, Deputy
cc:
SD. 4
To:Board of Supervisors
From:David Twa, County Administrator
Date:September 22, 2009
Contra
Costa
County
Subject:Proposition 1A Securitization - Update
allows the bonds to be issued earlier than the original bill (November), allows more
flexibility on the bond structure ( interest payments, state payment date and redemption
features), provides for sales among local agencies, and most importantly allows for the
bonds to be issued with a tax exempt structure. The tax exempt status allows the State to
save over $200 million. As of the writing of this Board Order, SB 67 has not passed. The
County's financing team will continue to proceed as if the clean-up bill has passed in order
to be poised to adopt authorizing documents by the November 6 deadline. At this point, it is
anticipated that authorizing documents will be presented to the Board of Supervisors on
October 20.
California Communities is the only issuer authorized to sell bonds to finance the State's
obligation to repay the property tax payments. The State's obligation to repay the 8%
property tax borrowing is the only security pledge for the repayment of the bonds. Each
participating local agency will sell their state repayment obligation to California
Communities. California Communities will then issue tax-exempt bonds and provide each
local agency with the cash proceeds in two equal installments (January 15, 2010 and May 3,
2010). These dates coincide with the dates that the State will be shifting property tax from
local agencies.
The Proposition 1A Securitization Program is intended to be cost neutral to local agencies:
BACKGROUND: (CONT'D)
The purchase price paid to the local agencies will equal 100% of the amount of the
property tax reduction
All interest and issuance costs will be paid by the State
Participating local agencies will have no obligation on the bonds and no credit exposure
to the State
Bondholders will be paid principal and interest by the State on the bonds' interest
payment dates and at maturity
Local agencies have three available options: 1) participate in the Securitization program;
2) choose not to participate in the Securitization program; or 3) sell the receivables to
another local agency.
At this point, the following Proposition 1A Securitization structure is anticipated:
State suspends local government revenue protections under Proposition 1A resulting
in a property tax reduction for FY 2009/10
1.
The County sells its state repayment obligations to California Communities2.
California Communities issues tax-exempt bonds3.
Cash proceeds from the transaction flow through the Trustee to the County on
January 15 and May 3, 2010
4.
The State pays principal and interest to the bondholders by June 30, 20135.
Prior to November 6, 2009, the Board of Supervisors will be asked to approve an
authorizing resolution, which approves the execution and delivery of Purchase and Sale
Agreement and related certificates and documents. Due to the scale of this program
statewide, the documents, certificates and opinions will be issued to each local agency
with no changes permitted to the language.
The County Administrator will recommend participation in the securitization program.
To that end, the County will enroll in the program as soon as enrollment is available
(immediately after SB 67 is approved by the Legislature and signed by the Governor).
Enrollment does not commit the County to the program. The County is not committed to
the program until all executed documentation is completed on or prior to November 6,
2009. It is further anticipated that the County Administrator will recommend to the Board
that the "County" makes the loan and securitization on behalf of all Board Governed
agencies subject to Prop 1A (all funds lower than 3000 in (2) attached).
ATTACHMENTS
Attachment - Estimate of Borrowing
Fund Agency Prop 1A Loan Amount
100300 County General 23,674,723.58
120600 County Library 1,664,616.15
202000 CCC Fire Protection 6,972,862.73
202800 Crockett Carquinez Fire 35,884.01
206000 East Contra Costa Fire 843,470.60
240100 Service Area L-100 67,691.33
247000 Service Area M-1 2,446.45
247500 Service Area M-29 163,098.88
248800 Service Area M-16 Clyde 2,066.62
248900 Service Area M-17 Montalvin 12,610.68
249200 Service Area M-20 Rodeo 829.71
249400 Svc Area RD4Bethel Isle 679.43
249600 Svc Area M23 Blackhawk 146,230.07
250500 Flood Control CCC Water 209,861.93
252000 Flood Control Zone 3B 331,444.31
252100 Flood Cont Z1 Marsh Crk 125,940.91
252700 Flood Control Zone 7 4,120.66
253000 Flood Control Zone 8 1,393.16
253100 Flood Control Zone 8A 1,796.63
255000 Flood Cont Drainage 290 142.31
255100 Flood Cont Drainage 300 330.43
255200 Flood Cont Drainage A13 19,582.68
255400 Flood Cont Drainage 10 19,858.01
256300 Flood Cont Drainage 127 970.12
258300 Flood Cont Drainage 16 4,964.26
265200 S/A Pl 2 Danville 574.98
265300 S/A Pl-2 Zone A 9,811.67
265500 S/A Pl 5 Round Hill 16,088.12
265600 S/A Pl 6 359,645.43
265700 S/A Pl-2 Zone B 11,581.21
270200 S/A Lib-2 El Sobrante 7,786.58
271000 S/A Lib-10 Pinole 97.25
271200 S/A Lib-12 Moraga 729.79
271300 S/A Lib-13 Ygnacio 9,030.83
Contra Costa County Prop 1A
Contra Costa County Prop 1A Estimate.xls Prop 1A Est for CSAC e-mail
9/16/2009 10:03 PM
Page 1 of 4 Pages
Fund Agency Prop 1A Loan Amount
Contra Costa County Prop 1A
275100 Svc Area R-4 Moraga 2,131.32
275800 Svc Area R-7 Zone A 68,142.27
282500 Co Co Co Water Agency 39,870.16
300500 San Ramon Valley Fire 4,107,490.79
300700 Kensington Fire 218,628.63
301100 Rodeo-Hercules Fire 231,406.15
307400 Moraga-Orinda Fire 1,299,820.35
310200 Co Co Resource Cons 16,860.24
324000 Crockett Community Svcs 23,142.42
325500 Kensingtn Community Svc 98,508.73
326000 Diablo Community Svc 25,684.29
330100 CCC Mosquito Abate Dst1 324,843.35
340600 Central CC Sanitary 985,917.89
340900 Mt View Sanitary 24,671.30
341100 Ironhouse Sanitary 20,163.07
341400 Rodeo Sanitary 17,659.77
341600 West Sanitary 79,879.61
341800 Stege Sanitary 24,659.81
342200 Byron Sanitary 2,789.44
343000 Twn of Discovry Bay (Comm Svc Dist) 45,669.47
348000 Delta Diablo Z1 W Pittsburg 34,152.43
348100 Delta Diablo Z2 Pittsburg 37,935.01
348200 Delta Diablo Z3 Antioch 91,291.42
351500 Los Medanos Healthcare 65,343.08
352000 Mt Diablo Healthcare 22,364.25
352500 West CCC Healthcare 0.00 (1)
360100 Alamo-Lafayette Cemetery 18,274.11
360300 B B K Union Cemetery 38,167.10
370000 Ambrose Rec & Park 38,239.60
371500 Green Valley Rec & Park 3,214.47
373500 Pleasant Hill Rec & Park 205,218.09
374000 Rolling-Willart Rec&Park 2,449.57
377000 Bethel Isle Muni Imp 43,516.01
380300 Co Co Co Water 194,220.61
Contra Costa County Prop 1A Estimate.xls Prop 1A Est for CSAC e-mail
9/16/2009 10:03 PM
Page 2 of 4 Pages
Fund Agency Prop 1A Loan Amount
Contra Costa County Prop 1A
383000 Castle Rock Co Water 910.44
400100 East Bay Muni Utility 911,292.34
400200 EBMUD Special District 1 23,603.49
400700 A-C Transit Spec Dist 1 633,514.97
400900 BART 760,607.30
401000 Bay Area Air Poll Cont 221,394.62
401600 Ed Phys Handic'd Elem 448.22
401800 Livermore Jt Unified 21,448.10
402000 Chabot-Las Positas Comm College 16,420.66
402200 Dev Ctr Handi'd Minor 80.23
402500 Dublin San Ramon Svc 34,438.78
402600 East Bay Regional Park 3,241,059.27
402900 Trainable M.R. Alameda 202.14
411000 Reclamation Dist 800 Exp 63,409.02
411100 Discovery Bay Recl/Drng 3,534.14
418000 East Co Co Irrigation 203,697.82
418100 Byron-Bethany Irrigation 84,454.36
420100 City of Clayton 61,680.42
420200 City of Concord 990,504.58
420300 City of Brentwood 655,732.62
420400 City of San Pablo 24,019.92
420500 City of El Cerrito 438,173.37
420600 City of Walnut Creek 918,569.33
420700 City of Pleasant Hill 196,263.49
420800 City of Martinez 555,541.42
420900 City of Antioch 794,739.35
421000 City of Pittsburg 224,447.09
421100 City of Hercules 91,518.05
421200 City of Pinole 146,089.62
421300 Richmond Tax District 1 1,999,104.35
421400 City of Lafayette 266,217.30
421500 Town of Moraga 127,294.56
421600 Town of Danville 577,880.90
421700 City of San Ramon 969,342.82
Contra Costa County Prop 1A Estimate.xls Prop 1A Est for CSAC e-mail
9/16/2009 10:03 PM
Page 3 of 4 Pages
Fund Agency Prop 1A Loan Amount
Contra Costa County Prop 1A
421800 City of Orinda 273,661.55
421900 City of Oakley 170,781.83
422700 Richmond Tax District 3 671,442.06
423000 Richmond Sewer 1 17,897.36
423100 Brentwood Rec & Park 132,234.95
423200 San Ramon M-29 0.00 (2)
424000 Pleasant Hill Lgt Dist 1 31,510.95
424100 Walnut Creek/Svc Area R-8 37,276.36
424800 Clayton Light Mtce 1 2,281.00
425200 Martinez Pine Ridge Mtce 499.71
425300 Martinez Parking Dist 1 4,275.72
426300 Lafayette Core Area Mtc 5,146.46
426400 Lafayette St Lt Mtce Z1 568.98
427100 Concord Vly Terr StLtMtc 218.90
427200 Concord Kirkwood Mtce 1 3,864.70
427400 Concord Blhn Terr St Lt 58.79
427500 Pl Hill-Diablo Vista Wtr 11,497.61
428000 Antioch Parking Mtce 1A 3,343.22
428500 Moraga St Lt Mtce 1 9,375.18
429400 Oakley Police Services 28,802.45
Grand Grand 59,837,659.19
(1) R&T 99.02 Property Tax transfer
agreement with County. West Contra
Cost Health Care share of the borrowing
is included with the County calculation.
(2) Loan amount was less than $1
Contra Costa County Prop 1A Estimate.xls Prop 1A Est for CSAC e-mail
9/16/2009 10:03 PM
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