On September 16, the California Energy Commission (CEC) released long-awaited guidance on grant allocations for small cities and counties. Under federal law, the CEC is required to allocate 60% of its federal funding directly to small cities and counties.  For California, this results in approximately $30 million for the 265 small cities and 44 small counties that are eligible under the program.

Read more

Topic in Public Finance | Permalink | Contact Us

As anticipated, the California Statewide Communities Development Authority (CSCDA) is proceeding with the establishment of a pooled financing program (the "Proposition 1A Securitization Program") for the securitization of State reimbursement obligations to local agencies (cities, counties and special districts) from whom property tax revenues are being "borrowed" by the State as part of it's 2009-2010 budget package. As with the similar 2005 CSCDA program respecting the State's borrowing of VLF moneys from local agencies, participants in this program will be able to receive a significant percentage of the property tax revenues in question (net of pro-rata program costs) from proceeds of sale of CSCDA bonds which will be repaid by the State reimbursement. Read More.

Topic in Public Finance | Permalink | Contact Us

As of the first of January, SB 1407 has come into effect.  The new law authorized the issuance of up to $5 billion in lease revenue bonds for purposes of financing, planning, design, construction, rehabilitation, renovation, replacement, and leasing or acquisition of state trial court facilities. The measure also authorizes a variety of increases to penalties and fees as revenue sources for the bonds. Click here to read more.

Topic in Municipal Law , Public Finance | Permalink | Contact Us

In Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority, California Supreme Court Case No. S136468 (July 14, 2008), a unanimous Court decided two key points concerning Prop. 218 assessments. First, the Court held that legal challenges to special assessments are subject to independent judicial review, thus reversing a line of pre-Prop. 218 cases which gave more deference to the public agency's determinations. The Silicon Valley Court noted that Proposition 218 “was intended to make it more difficult for an assessment to be validated in a court proceeding.” The Court’s decision makes it easier for individuals and organizations to challenge the validity of special assessments.

Continue reading "California Supreme Court Clarifies Proposition 218’s Provisions for Funding Open Space Acquisition through Special Assessments" »

Topic in Land Use , Public Finance | Permalink | Contact Us

The Legislative Analyst’s Office (LAO) has proposed an alternative budget package that includes shifting responsibility for supervision of approximately 71,000 low-level parolees from the State to the counties. This parole realignment would be financed in part by reallocating property tax revenue from water and wastewater districts into a newly created county Public Safety Realignment Account (PSRA). Under the LAO’s proposal, each county would shift 70% of countywide water and wastewater property tax revenue into its PSRA, unless a lower percentage of property taxes would be sufficient to support the realignment program. While the actual amount of tax revenue shifted from each district would ultimately be determined by the county boards of supervisors, the LAO estimates that, statewide, its proposal would shift approximately $188 million, or 50%, of water and wastewater district property tax revenue to county PSRAs.

Additional sources of financing for the proposed parole realignment include approximately $178 million from city Proposition 172 sales taxes and approximately $130 million from vehicle license fees currently retained by the Department of Motor Vehicles for administrative purposes. 

To read more about the LAO's parole realignment proposal, click here.

Topic in Public Finance , Special District Law | Permalink | Contact Us