HomeMy WebLinkAbout2000-09-26 - AGENDA REPORTS - TEFRA CHILD FAMILY CENTER (2)CITY OF SANTA CIARITA
AGENDAREPORT
City Manager Approv�l
Item to be presented by: Frank Oviedo
PUBLIC HEARING
DATE: September 26, 2000
SUBJECT: TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA)
HEARING FOR THE CHILD AND FAMILY CENTER
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council open the public hearing, receive testimony, close the public hearing, and adopt
Resolution, approving the issuance by the California Statewide Communities Development
Authority (CSCDA) of not to exceed $2.8 million aggregate principal amount of Multi -
Family Housing Revenue Bonds.
Child and Family Center has asked the CSCDA to act as issuer in connection with the
issuance of tax exempt bonds for the purpose of acquisition, construction, rehabilitation,
and improvement of property in connection with the mental health clinic. This request
requires the City Council to hold a public hearing and take public testimony on the
proposed project and approve a resolution authorizing the issuance of bonds by CSCDA.
The CSCDA is a joint powers authority (JPA) established by the California State
Association of Counties and the League of California Cities in 1987 to serve as a public
conduit issuer. of private entities such as manufacturers, nonprofit agencies, and
low-income housing providers, all of which are eligible for tax-exempt financing. Currently,
the JPA has over 240 participants, one of which is the City. CSCDA assumes the legal and
administrative responsibility for financings as an alternative to a City or County serving as
the conduit issuer. A conduit issuer acts as a pass-through, which enables an agency to
receive the tax-exempt status. This process is similar to the one the City did for the YMCA
in 1993 and the Bouquet Canyon Seniors Housing project in 1997.
The California Statewide Communities Development Authority (CSCDA) has proposed the
issuance of $2,800,000 in bonds. In order for CSCDA to complete the financing, the City, as
the local jurisdiction, has been requested to hold a Tax Equity and Fiscal Responsibility Act
(TEFRA) hearing and adopt a Resolution of support. There is no financial or legal
obligation/ liability to the City of Santa Clarita.
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Agendua ltem:A
TEFRA HEARING FOR
THE CHILD AND FAMILY CENTER
September 26, 2000 — Page 2
The Internal Revenue Code requires that a public hearing be held concerning the proposed
financing. The required hearing must be preceded by a notice published at least 14 days in
advance of the hearing. Notice of the proposed hearing was published in accordance with
these requirements.
ALTERNATIVE ACTION
City Council may choose not to approve the issuance of bonds by CSCDA.
FISCAL IMPACT
There is no financial or legal obligation/liability to the City. The Child and Family Center,
is responsible for all payments of the bonds. Additionally, any City staff time or cost will be
reimbursed by the bond sale.
ATTACHMENT
Resolution Approving Tax Exempt Bonds
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CITY OF SANTA CLARITA
NOTICE OF PUBLIC HEARING
TO CONSIDER ISSUANCE OF SPECIAL TAX BONDS
BY CALIFORNIA STATEvvqDE
CONMIUNITIES DEVELOPMENT AUTHORITY
OF ITS TAX-EXENIPT OBLIGATIONS
IN AN AGGREGATE PRINCIPAL AMOUNT
NOT TO EXCEED $2,800,000
PUBLIC NOTICE IS 13EREBY GIVEN -
A Public Hearing will be held before the City Council of the City of Santa Clarits. to consider
Issuance of special tax bonds by Califomia Statewide Communities Development Authority of its
tax-exempt obligations in an aggregate principal amount not to exceed $2,800,000. Proceeds of the
Obligations are to be made available to Child & Family Center, a nonprofit public benefit
corporation described in Section 501 (c) (3) of the Internal Revenue Code of 1986. Pursuant to a loan
agreement, funds will be used for the acquisition, construction, rehabilitation, and improvement of
property, including real and personal property, to be used as or as a part of, a community mental
health clinic providing counseling, substance abuse services, treatment, education and therapy of
emotional and behavioral problems for children and families and to pay related expenses.
Neither the faith and credit nor any taxing power of the City, the Authority, the State of
California (the "State") or any other political corporation, subdivision, or agency of the State is
pledged to the payment of the principal of or premium, if any, or interest with respect to the
Obligations, nor shall the County, the State, or any other political corporation, subdivision or
agency of the State be liable or obligated to pay the principal of or premium, if any, or interest
on the Obligations.
The public hearing is intended to comply with the public approval requirements of Section
147(f) of the Internal Revenue Code of 1986.
The hearing will be held by the Santa Clarits, City Council in the City Hall Council Chambers,
23920 Valencia Blvd., let Floor, on the 26th day of September 2000, at or after 6:30 p.m.
Proponents, opponents, and any interested persons may appear and be heard on this matter
at that time. Further information may be obtained by contacting the City Clerk's Office, Santa
Clarita City Hall, 23920 Valencia Blvd., Suite #301, Santa Clarita, CA.
If you wish to challenge this action in court, you may be limited to raising only those issues you
or someone else raised at the public hearing described in this notice, or in written
correspondence delivered to the City Council, at, or prior to, the public hearing. The Project
will be located at (Lots I and 2 of Tract 38936), Santa Clarita, California CA 91350, and will
be owned and used by the Borrower.
Dated: September 26,2000
Sharon L. Dawson, CMC
City Clerk
Publish Date: September 12, 2000
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