EVERYTHING You Wanted to know about SFD’sBut Were Afraid to Ask 1

EVERYTHING You Wanted to know about SFD’sBut Were Afraid to Ask

EVERYTHING YOU WANTED TO KNOW ABOUT

SPECIAL ASSESSMENTS AND TAXES IN 2015 BUT WERE AFRAID TO ASK

By Tim Seufert

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Primer on Special Financing Districts-SFD: Special Assessments and Taxes

Sample current reporting requirements

AB 2109 new reporting requirements Q&A

AGENDA ITEMS

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“A man’s ignorance sometimes is not only beautiful, but useful – while his knowledge, so called, is oftentimes worse than useful, besides being ugly...

SOME PERSPECTIVE

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Which is the best man to deal with -- he who knows nothing about a subject, and, what is extremely rare, knows that he knows nothing, or he who really knows something about it, but thinks he knows it all? “

- Henry David Thoreau

SOME PERSPECTIVE

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EVERYTHING You Wanted to know about SFD’sBut Were Afraid to Ask

THE PRIMER ON SPECIAL FINANCING

DISTRICTS (SFD)

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WHAT ARE SFD’S?

Parcel taxes CFDs Special Assessments Property-related Fees

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LEGISLATIVE AND LEGAL UPDATE / TRENDS

2/3 approval for parcel taxes and CFDs

Note: CFD Shapiro San Diego case… Special Assessments still viable Property-related Fees All the buzz about EIFD, or TIF?

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SPECIAL FINANCING DISTRICTS – SPECIAL ASSESSMENTS AND TAXES

Courts looking over our shoulders… Best practices for assessment

engineering Be creative and selective in

feasibility analysis…

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SPECIAL FINANCING DISTRICTS – SPECIAL ASSESSMENTS AND TAXES

Pay as you go? Leverage infrastructure with

debt?

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SPECIAL FINANCING DISTRICTS – SPECIAL ASSESSMENTS AND TAXES

Forms of Debt Municipal bonds Bank loans State Revolving Fund (SRF) i-Bank City/County funds Other/private placement

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SPECIAL ASSESSMENT – CASE STUDY: BURLINGAME – DOWNTOWN IMPROVEMENTS

Downtown Burlingame Avenue years of deterioration

Funding challenges

Disparate interests coalesce

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SPECIAL TAX / CFD – CASE STUDY: PACHECO VALLE / CITY OF NOVATO

Community led effort

CFD tax on area parcels

95% voter approval

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PARCEL TAXES:SANTA CLARA VALLEY WATER DISTRICT, MARIN EMERGENCY RADIO AUTHORITY, GREATER VALLEJO RECREATION DISTRICT

Focused needs EXTENSIVE

outreach was key

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REPORTING REQUIREMENTS: TODAY R&T Code 163 for Assessments: parcel

number, original assessment and current principal balance to the County Assessor

CDIAC Reporting for Bonded CFD’s – Government Code §53359.5(b) and §53359.5(c)

SB 165/Government Code 50075.1 – Enacted after January 2001require “annual report”

Plus existing SCO reporting…???

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REPORTING REQUIREMENTS: TOMORROW? AB 2109: Who, what, when?

Who? Each County, City, and Special District. (School Districts?)

With a “parcel tax?” Includes CFD’s?

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AB 2109 DRAFT SCO DECISION TREE:

Decision Tree for Determining “Parcel Taxes” Subject to AB 2109 Reporting

Yes

Yes

Yes

Yes

Yes

No Reporting is needed

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AB 2109: What? 1. “Type” and “Rate” of parcel tax2. Number of parcels subject/Number

exempt3. Sunset date of tax, if any4. Amount of revenue received5. Manner in which revenue used

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AB 2109: When?

2015? Or so?

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ADDITIONAL RESOURCES

League Municipal Revenue Handbook NBS Rate/Fee Compendium

Compendium NBS SFD Primer League/CSDA

Prop 218 Guides Guide To Local

Government Finance in California

The Simpsons! Etc.

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