Title
Hearing to consider adoption of Resolution 07-2008 approving the issuance of tax-exempt lease obligations for CALSTAR by the Association of Bay Area Governments (ABAG) Finance Authority for Nonprofit Corporations in an amount not to exceed $20,000,000 to finance the acquisition of certain assets including helicopters.
Body
RECOMMENDED ACTION: 1. Conduct the public hearing; and 2. Adopt the attached resolution approving the issuance of the tax-exempt lease obligations for CALSTAR by the ABAG Finance Authority for Nonprofit Corporations.
Fiscal Impact/Change to Net County Cost: These conduit tax-exempt lease obligations are special, limited obligations ("Obligations") of the ABAG Finance Authority for Nonprofit Corporations ("Authority") payable solely through lease payments consisting of principal and interest components by CALSTAR. The tax-exempt lease obligations issued by the Authority will not be a direct obligation of the Authority, the County or any member of the Authority. Neither the faith or credit, nor the taxing power of the County, any member of the Authority, the State or any political subdivision is pledged to the repayment of the Obligations.
Background: State law provides the ability for cities and counties to join together under cooperative agreements to form joint powers authorities to issue debt obligations to fund projects that provide a public benefit and serve the needs of residents within the jurisdiction of the participating members. Federal law allows these obligations to be issued on a tax-exempt basis under certain circumstances. Cities and counties in California have the ability to act as issuers of conduit bonds and other obligations, but many jurisdictions utilize joint powers authorities primarily for economies of scale, to access specialized transaction knowledge and resources.
The Association of Bay Area Governments Finance Authority for Nonprofit Corporations (ABAG) is a joint exercise of powers authority consisting ...
Click here for full text