Resources & Articles

By Jillian L. Christiansen, Kutak Rock LLP Special districts in California are authorized by various state statutes to issue tax-exempt bonds [1] to finance certain governmental projects. This means the interest paid on the tax-exempt bonds to the bondholders will be excludable from gross income for federal income tax purposes and for California personal income taxes. Special districts can finance the acquisition, construction, and improvements of a variety of facilities using tax-exempt bonds. Examples of recent projects that have been financed with tax-exempt bonds by California read more

By @Cathrine Lemaire CSDA members seeking funding for capital improvements and equipment purchases know they can turn to the CSDA Finance Corporation for efficient financing solutions at competitive rates. If you are looking for information on state and federal grants and loans in particular, the California Financing Coordinating Committee (CFCC) is hosting two virtual funding fairs next month to educate public agencies about the currently available funding programs. For complete details, visit the CFCC website . #Revenue #BondsandFinancings #Finance

By Jennifer Bradlee, Best Best & Krieger LLP Of Counsel No public agency is exempt from the occasional need to manage cash flow issues, including special districts. With the recent California fires, continual water supply problems, looming capital project schedules, and even the mismatch in timing of expenditures and receipt of revenues, there are a host of reasons that may leave a special district in need of a way to temporarily fill the funding gap. While long-term financing options, such as bonds and enterprise revenue financings, are typically in the forefront in the world of municipal read more

By Taylor Budrow, CFA® - Senior Credit Analyst at Public Trust Advisors, LLC This article first appeared in California Special Districts magazine, July/August issue. The primary role of the Public Trust Advisors Credit Team (Credit Team) ( California CLASS Investment Advisor and Administrator) is to evaluate the credit profile of investable entities and determine their suitability as counterparties. Simply put, the Credit Team is in a continual, unending battle to stay one step ahead of potential reactions to rating agencies directly and by other market participants. During times read more

Monterey County Mosquito Abatement District Celebrates New Facility Funded Through CSDA Finance Corporation In April, the Monterey County Mosquito Abatement District (MCMAD) www.montereycountymosquito.com celebrated a major milestone with an Open House and Ribbon Cutting Ceremony at their new state-of-the-art administration and operations facility in Salinas. Over 100 guests, including prominent government officials and representatives from neighboring mosquito districts, were in attendance to celebrate the occasion. The event provided an opportunity for guests to take a tour of the new read more

This article first appeared in California Special Districts Magazine, March-April issue, Money Matters section. By Ian Berg, Eide Bailly Special District Advisory Services The foundation of a successful government district is embedded in guiding policies. In particular, financial management policies are key to providing clarity and enhancing decision-making related to fiscal health. The absence of sound financial management policy leaves board members, management and staff to rely on assumptions and could result in a free-for-all decision making process. Common financial management policies read more

This article was originally published in California Special Districts Magazine , January-February 2023 issue. In June 2022, the San Miguel Consolidated Fire Protection District closed a $25.9 million lease financing with First Foundation Bank at an interest rate of 3.99%. The proceeds of the loan were used to pay off roughly 60% of the District’s Unfunded Accrued Liability (UAL) with CalPERS and established a new debt repayment shape that was more predictable and smooth, and at a lower level than the previous CalPERS schedule. While the refinancing is expected to generate savings to the read more

By Ian Berg, CPA, Special Districts Consulting Senior Manager It’s no secret that many pension plans are underfunded by government agencies throughout California. With fewer assets than liabilities, these underfunded pension plans are not projected to have enough money to pay out benefits that have been promised to plan members. The question becomes, what is the best way to address these underfunded pension plans? Many agencies are seeing pension liabilities grow on their balance sheet year after year and are recognizing sizable pension expenses as a result. The reality is that pension read more

Co-authored by Sara Mares, Director, NBS; and Rick Brandis, Managing Director, Oppenheimer & Co. Inc. The Community Facilities District (CFD) may be the most flexible funding and financing tool available to California’s local governmental agencies. This flexibility is demonstrated by the following attributes: A wide variety of facilities and services can be funded The special taxes can be apportioned simply on a reasonable basis, as opposed to the stringent benefit requirements of special assessments Flexibility is strengthened by utilizing zones, annexation areas, and improvement read more

Nevada County Consolidated Fire District (NCCFD) recently purchased a $310,000 water tender with the help of CSDA Finance Corporation . NCCFD, a full-service emergency response agency covering 143 square miles of residential, commercial, industrial, and rural areas, submitted a simple online request form and received preliminary quotes within four days. The financing closed about six weeks later. Said their Administrative Services Manager about the transaction, "I found this a very easy process and all involved were very helpful." Other examples of equipment/vehicle financings include: read more

At CSDA’s 2022 General Manager Leadership Summit, consultants of the CSDA Finance Corporation and a special district general manager collaborated in a presentation providing insight into preparing board members for a financing. Panelists included Pat Kaspari, general manager of McKinleyville Community Services District, as well as consultants from the CSDA Finance Corporation: Rick Brandis and Nicki Tallman of Brandis Tallman, a division of Oppenheimer and Co. Inc.; Albert Reyes of Kutak Rock LLC; Stefan Morton of Municipal Finance Corporation. When it comes to infrastructure projects and read more