AgdaPkt 2009-09-14 - Laserfiche WebLink

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9A Page 15 'BI/I Language' Continued from Page 1... Proposition 1A Securitization (AB 185/8B 67): Contains clean up to AS X4 15 (Gaines) adopted as part of the July budget package. In brief, this language: 1. Clarifies that a joint powers authority (JPA) of not less than 250 local agencies is the authority empowered to issue bonds backing Prop. 1 A receivables. California Communities, a JPA founded by the League and the California State Association of Counties, is the only JPA that meets this definition. 2. Authorizes a local agency (defined as a county, city, city and county, including a chartered city or county, school district, community college district, public district, county board of education, county superintendent of schools, or any public or municipal corporation) to purchase a Prop. 1A receivable from another local agency. It also authorizes a local agency to sell a receivable to a special fund of that agency. 3. Alters the existing process by which a local agency may request a hardship exemption from the Department of Finance (OOF) from one that would occur prior to a securitization effort to one that will occur afterward. As revised, OOF is required to consider granting a hardship within 30 days following the issuance of bonds by California Communities, or Dec. 1, whichever occurs earlier. In addition to other existing criteria, the OOF is limited to considering only the amount that an agency did not receive through securitization. 4. Adds a city, or a city and county, redevelopment agency to the existing authority granted to a county redevelopment agency to remit to the county auditor the amounts borrowed from the local agency, subject to various conditions. 5. Changes the date of state repayment from no later than June 30, 2013, to a fixed window from June 6 to June 13, 2013. 6. Makes a number of other clarifying and technical changes affecting securitization 7. Establishes an accelerated timetable for agencies seeking to securitize their shares of Prop. 1A receivables, with the key dates as follows: . Sept. 15 - county auditors are required to prepare a list of estimated amounts of Prop. 1A receivables for each agency, with a tinal certified list available by Oct. 30. . Sept. 28 - date by which the OOF must set the interest rate (between the Pooled Money Investment Account and 6 percent) that will be paid to local agencies that choose to not securitize their Prop. 1A receivables. (This provision is already in existing law.) . Oct. 15 - date by which local agencies are authorized to purchase a Prop. 1A receivable from another local agency, or for one or more local agencies to agree to reallocate their Prop. 1 A reduction amounts, or notify a county auditor that payment of the borrowed amount is being made by a redevelopment agency. (This deadline does not apply for receivables created as the result of a hardship reallocation). . Nov.1-deadline for agencies to offer to sell their Prop. 1A receivables to California Communities. . Dec. 1-deadline for OOF to grant a hardship exemption. . Dec. 10-deadline for OOF to certify to a county auditor any amounts decreased through the hardship process. Clean Up Of HUTA Deferral (AB 183/8B 65) Contains significant revisions to the existing HUTA deferral provisions adopted as part of the July budget package in SS X4 16 (Oucheny), which deferred the receipt of local HUTA revenues for a six-month window from July-December 2009. This language in existing law is vague on the schedule for repayment stating that repayment would be made "after Jan.1, 2010." The revisions in this language: 1. Clarifies that amounts deferred In July and August 2009 will be repaid to local governments in September. 2. Authorizes locals to now receive their September and October 2009 revenues as scheduled (They will no longer be deferred). 2