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8A Page 9 the VtF securitizatian bor�ds to prvvide advance repayment to participating cities and caunties of the state's loan repayment of local VLF funds Pending c(ean-up amendments the Prop. 1 A securitization bonds wou[d ideally be issued by the JPA and payments made to focal agencies over the nax#3—4 months, assuming everything warks properly.This will hopefully mean cities will receive their funds from the bond issue prior ta the n�:ma� Decem�er 10 property tax distributior�date.Any number of fact�rs coG!d rause a delay in this sched�le, howe�er. in the near future Califomia Communities and the League hope to send you information on how yaur city ean �a�ticipate and the�equired actions by the ci#y co�r�il by#he appficabbe deadline. In #heory i#should not cos##he city anythir�g ex�ept the cost af city attorney review of the applicable agreement to sell the Prop. 1A receivable to the JPA.ABx4 15 provides that the state will pay aIf interest and costs of issuance of the bond transac#ior� up to a certain cap. In order to control the state's cost, the legisla#ion iimi#s the issuance of the Prop. 1A securitization bonds to a large JPA fike California Comm�nities;with oversight�y#he Department of Finance and State Treasurer's Offce. Locaf agencies can ei#her pa�ticipate in the JPA securitization or wait unti12Q13 to recei�e repayment,with interest at a rate above the PMIA rafe to be set by the Director of Finance in a few mon#hs. Even though California Communi#ies successfully campleted a similar bond issue in 2�05, there - � are stil[some unknowr�s.The first is how potentia! investors will view the strength of the State's Prop. 1A loan repayme!�t comm�tment. Since A3x4 1�appears to appropriately give this constitutior�al repayment commitment a very high priority(behind only schoofs and general obiigation bonds},it should be an a#tractive investment and the recent#urbulence in the market concerning California debt obligations will hopefully not be ar� issue.This is particuiar(y important because, unli4ce in 2005, nv municipa�bond insurance is available today. It also appears to the League tha#a�umber of amendments#o ABx4 15.�re necessary to improve the#eas'sbifi#y,timing and affordabiiity of#he securitization bond issue. VIle are in discussions now with state oificials abo�t these issues.These matters couid be addressed when t€�e legislature returns after its recess. tn the next few weeics the board of directors of Cafifornia Communities is expected to select a finance team for the bond issue. Cities ar�d other fvcal agencies will then begin to be contacted with the detailed information on how to par�icipate if they so choose. `RedevelopmenY Continued fram Page 9... The Sacramento Superior Cour�in April 2009 ruled unconstitutional the redirec#ion of$350 million in redeveiopment funds to the state's generaf€und for�'1(200&09.The Califomia Redevelopment Ager�cy(CRA)is preparing another lawsuit agains#�he state on the constitutionality of this new � se'szure and is currently seeking p(aintiffs from its agency members to join the suit. Guidelines for plai�tiffs are forthcoming and willing agencies wilf be aslced to provide information about�ond indeb#edness, sta#us of existing contractual obiigations, �f1C�SC�lUOIS WIt�11f1 t�t�if project areas(or the fack of thern}. Redevelopmen#agencies interested in joining as a plaintiff should contact Brent Hawki�s at bhawkins{cr�.mhalaw.com or(916}448-8760. Economic Impact CRA has caiculated what the Ioss of redevelapment funds wiil mean to the economy. For FY 2009-10,CRA es#imat�s that if these funds were invested in local communities for affordabie housing, improved infrastructure, community faci{i#ies, it would support about 164,000 fu[I-and part-fiime jobs in cons#ruction and related sectors of the economy.The$350 mi[fion loss next fiscal year CRA estimafies would support nearly 34,000 jobs. The California Employment Devefopment Depar�ment p�blished a star�ling summary of job declines by sector over the last year. From Apri12Q08 to Apri!2009,the construction sector alone 9