Title
Chief Administrative Office recommending adoption of Resolution approving and authorizing the Chairman to execute and deliver a purchase and sale agreement and all related documents with respect to the securitization of County of El Dorado County Service Area (CSA) No. 3 Mosquito Abatement Proposition 1A receivable from the State of California. (Est. Time: 5 min.)
FUNDING: CSA No. 3 Mosquito Abatement $26,705.43.
Resolution 244-2009
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Background: Proposition 1A Suspension: Proposition 1A was passed by California voters in 2004 to ensure local property tax and sales tax revenues remain with local government thereby safeguarding funding for public safety, health, libraries, parks, and other local services. Provisions can only be suspended if the Governor declares a fiscal necessity and two-thirds of the Legislature concurs.
The emergency suspension of Proposition 1A was passed by the Legislature and signed by the Governor as ABX4 14 and ABX4 15 as part of the 2009-10 budget package on July 28, 2009. Under the provision, the State will borrow 8% of the amount of property tax revenue apportioned to cities, counties and special districts. The state will be required to repay those obligations plus interest by June 30, 2013. The County has two primary options: hold the receivable until June 30, 2013 or participate in the Proposition 1A Securitization Program. The State has set the interest rate for counties that hold their receivable at 2%. Under the Proposition 1A Securitization Program the County would receive 8%.
Recommendation: El Dorado County CSA # 3 Mosquito Abatement should place all eligible receivables under the Proposition 1A suspension in the Proposition 1A Securitization Program. This agenda item covers the securitization of CSA # 3 Mosquito Abatement ($26,705.43).
Proposition 1A Securitization Program: Authorized under ABX4 14 and ABX4 15, the Proposition 1A Securitization Program was instituted by California Communities to enable Loca...
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