Report Prepared by: Scott McBride, City Manager
Title
SUBJECT: Study Session - Joint Powers Authority Concept to Fund Critical Infrastructure for Virginia Smith Trust (VST) Development Project
REPORT IN BRIEF
Study Session - A special presentation by Fieldman regarding the potential creation of a Joint Powers Authority (JPA) between the City of Merced and the Merced County Board of Education to fund critical infrastructure for Virginia Smith Trust (VST) Development Project.
RECOMMENDATION
For Information only.
Body
DISCUSSION
The Superintendent of the Merced County Board of Education has requested that the City potentially consider the creation of a Joint Powers Authority (JPA) between the City of Merced and the Merced County Board of Education to fund critical infrastructure for Virginia Smith Trust (VST) Development Project.
The VST project has been annexed into the city and other entitlements are being processed including Vesting Tentative Maps. Additionally, the City and VST are updated the Pre-annexation Development Agreement to better define business terms and accommodate modifications in the project implementation.
The City has a land secured financing policy - A-29. This policy established procedures regarding the potentially issuance of bonds to finance public facilities necessary to serve newly development projects. The City has several current Community Facilities Districts (CFD’s) that were established for the purpose of issuing debt - bonds which finance public improvements that are repaid through annual property assessments.
More recently the City executed resolutions approving the participation in the California Statewide Communities Development Authority (CSDA) SCIP program- Statewide Community Infrastructure Program and the California Municipal Finance Authority (CMFA) BOLD program - Bond Opportunities for Land Development.
The Joint Powers concept is another alternative to these two program options. Fieldman - Fieldman Rolapp Associates is an established municipal advisory firm. The City currently has a contract for services with this group. One of their services is Land Secured Financing. They provide support on a wide range of land secured financing structures, including Community Facilities Districts, Assessment Districts, Public Improvement Districts, Tax Increment Development Districts, and Successor Agencies.
The VST project has considerable public improvements that are necessary to bring this project into fruition. The purpose of the Study Session and presentation is to highlight one option for public financing.
IMPACT ON CITY RESOURCES
None at this time, presentation only.
ATTACHMENTS
1. Presentation - VST Funding Options
2. A-29 - City of Merced Land Secured Financing Administrative Policies and Procedures
3. Draft JPA Agreement
4. Draft City Council Resolution
5. Draft Merced County Office of Education Resolution
6. Draft Special Tax Analysis