Pooled Funding Program Established for Local Agencies From Whom Property Taxes Were Borrowed by the State
As anticipated, the California Statewide Communities Development Authority (CSCDA) is proceeding with the establishment of a pooled financing program (the “Proposition 1A Securitization Program”) for the securitization of State reimbursement obligations to local agencies (cities, counties and special districts) from whom property tax revenues are being “borrowed” by the State as part of it’s 2009-2010 budget package.
As with the similar 2005 CSCDA program respecting the State’s borrowing of VLF moneys from local agencies, participants in this program will be able to receive a significant percentage of the property tax revenues in question (net of pro-rata program costs) from proceeds of sale of CSCDA bonds which will be repaid by the State reimbursement.
In discussion with CSCDA staff, Meyers Nave is advised that, assuming timely resolution of some issues with the legislation which implements the State’s budget package, the tentative program schedule calls for October adoption of an authorizing resolution by the legislative body of each participating local agency and bond issuance in November, with disbursement of funds to participants soon after issuance.
Please click here to find preliminary information respecting the program, together with contact information for CSCDA staff who may be contacted for further program information. From this website, you can access the link set forth in the preliminary information which provides access to the “Request for Information Form.” If you may be interested in participating in the program, you can complete and submit the form online. As stated on the form, submission of the completed form does not commit you to participation, but it will assure you of receipt of more complete information as the program moves forward.
Please contact Sam Sperry if you have immediate questions about this program. We will provide additional information once the program details are finalized.