A

abatement

• Abatement Clause
• i.4.3 Steps Public Agencies Must Take to Use Debt Financing
• 2.4.8.1 Events of Default and Remedies
  Actions to be taken in events of default and the remedies to be applied
• 3.6.1. Financing Leases
  The public agency obtains financing by entering into a lease for which it makes rental payments.
• 3.9.2 State Public Works Board Public Lease Revenue Bonds
  The California State Public Works Board issues lease revenue bonds to finance capital improvement for state agencies.

accountability and transparency

• i.5 MANAGE YOUR DEBT AFTER IT IS ISSUED
• 8.1 A FRAMEWORK FOR MANAGING BOND FUNDS
  An approach to managing bond proceeds.

• Annual Debt Transparency Report
  • 7.1.3 Annual Debt Transparency Report
• bankruptcy
  • D.1 Public Agencies and Bankruptcy
• conduit issuer reporting
  • i.5.2.3 Conduit Issuer Reporting
• culture of transparency
  • 6.1.2 Governing Board Responsibilities
    Role of governing board in complying with federal securities laws.
• improving transparency
  • 5.8 Improving Transparency and Investor Access to the Municipal Market
    The use of investor websites and EMMA among other technologies to communicate with market participants.
• local issuer bond
  • 7.2.2 Local Issuer Bond Accountability
• market transparency
  • 8.5 Other Disclosures to the Market
    Other forms by which issuers may communicate to market participants.

Acts

• A.5 Financing Tools Contained in Statute

ad valorum real property taxes

• Ad Valorum Taxes
• Figure 1-1 Public Agency Revenue Sources by Category
• 1.4.6 Special Taxes
  Sources of Revenues securing debt obligations: Special taxes defined
• B.1.3.1.2 GO Bond Structures
• B.1.4.3 Parcel Taxes
• 1.4.1 Determining the Category of Revenues
  Differentiating “taxes,” “assessments” and “fees and charges.”
• 1.4.3 Ad Valorem Real Property Taxes
  Sources of Revenues securing debt obligations: Ad Valorem tax defined
• 1.4.4 Ad Valorem Real Property Taxes Securing Voter-Approved Obligations
  The use of Ad Valorem property taxes to secure debt obligations.
• 1.4.5 General Taxes
  Sources of Revenues securing debt obligations: General taxes defined
• 1.7.1 Proposition 13 (1978), Jarvis-Gann Initiative
• 1.7.4 Proposition 62 (1986), Voter Approval of Taxes Act
• 3.3.1 Local Agency General Obligation Bonds
  General obligation bonds (GO bonds) issued by California local government entities are payable from unlimited ad valorem taxes on real property
• 3.9.1 State General Obligation Bonds
• 4.6.2 Private Security or Payment Test
  One of several tests of private activity or benefit.
• B.1.1.2 Proposition 13
• B.1.3.1 Local General Obligation Bonds

• Pre-Proposition 13 Obligations
  • 1.4.4.1 Pre-Proposition 13 Obligations
    Ad Valorem property taxes securing voter-approved debt obligations prior to Proposition 13.
  • B.1.1.1 School Facility Finance Before Proposition 13
• Proposition 13
  • 1.7.1 Proposition 13 (1978), Jarvis-Gann Initiative
  • B.1.1.2 Proposition 13
• Proposition 39 GO Bonds
  • 1.4.4.3 Proposition 39 General Obligation Bonds
    Ad Valorem property taxes securing voter-approved Proposition 39 GO bonds.
• Proposition 46 GO Bonds
  • 1.4.4.2 Proposition 46 General Obligation Bonds
    Ad Valorem property taxes securing voter-approved Proposition 46 GO bonds.
• securing voter-approved debt
  • 1.4.4 Ad Valorem Real Property Taxes Securing Voter-Approved Obligations
    The use of Ad Valorem property taxes to secure debt obligations.

Additional debt

• Additional Bonds
• Additional Bond Test/Additional Bond Covenant
• 2.4.6.3 Additional Debt Test Calculations
• 2.4.6 Additional Debt

• Additional Debt Test Calculation
  • 2.4.6.3 Additional Debt Test Calculations

agreement among underwriters (AAU)

• 5.3.3 Documentation for a Negotiated Public Offering

alternative minimum tax

• Alternative Minimum Tax
• 3.1.3 Tax Treatment
  Tax exempt or taxable
• 3.5 Tax Treatment of Municipal Bonds
  A bondholder’s “after tax” return on a bond depends in part upon how interest on the bond is treated in calculating the bondholder’s income for federal and state income tax purposes.
• 4.4.1 Issue Sizing and Term
  Limits on issue size and term pursuant to the Tax Code.

amortization risk

• 2.3.3 Interest Rate Swaps and Synthetic Structures
  Changing the substantive financial terms of a debt from a fixed rate obligation to a variable rate

annual appropriation exception

• Annual Appropriation Lease
• 1.2.4 Exceptions to the Debt Limit
  California courts recognize several exceptions to the constitutional debt limit.
• 1.2.4.2 Annual Appropriation Exception
  Debt limit exception based upon the source of repayment being an annual appropriation made by the public agency.
• 3.6.1 Financing Leases
  The public agency obtains financing by entering into a lease for which it makes rental payments

annual financial statements/reports

• Annual Report
• i.3.2.1 Compliance with Municipal Securities Laws – Disclosure
• 5.8.1 Investor Relations and Outreach
• 6.1.4.1 Recent SEC Enforcement Focus
• 7.2.6 Mello-Roos Community Facilities Reports
• 8.5.1 Audited Financial Statements

anti-fraud rules

• Anti Fraud Provisions
• SEC Rules 10B-5 Standard
• i.3.2 Legal Responsibilities of Issuers of Municipal Securities
• 6.1.1 Anti fraud Rules
  Statements by municipal issuers to investors, or potential investors, and even statements to the public generally, if likely to be heard and relied upon by the securities market are subject to the anti fraud provisions of federal securities laws.

arbitrage bonds

• Arbitrage
• 4.8.1 General Background on Arbitrage Yield Restriction

arbitrage rebate

• Arbitrage
• 4.9 Arbitrage Rebate
  The requirement that arbitrage earning must be rebated to the federal government.
• 8.1 A Framework for Managing Bond Funds
  An approach to managing bond proceeds.
• 8.2.2 Maintaining Tax-Exempt Status
  Record keeping essential to maintaining tax-exempt status of bonds.
• 8.3 Post-Issuance Federal Tax Law Requirements
  Compliance with tax covenants contained in the Tax Code is required while the bonds are outstanding in order to maintain the bonds’ “tax-exempt” status.
• 8.3.5 Arbitrage Rebate
• 9.5.1 Arbitrage Rebate and Yield Restriction
• 9.6 Investment Review and Oversight
  The importance of review and oversight in the management of bond fund investments.

• 6-month expenditure exception
  • 4.9.1.2 6-month Expenditure Exception
    Exception to arbitrage rebate requirements in Tax Code.
• 18-month Expenditure Exception
  • 4.9.1.3 18-Month Expenditure Exception
    Exception to arbitrage rebate requirements in Tax Code.
• 2-year Expenditure Exception
  • 4.9.1.4 2-Year Expenditure Exception
    Exception to arbitrage rebate requirements in Tax Code.
• monitoring investment income and arbitrage compliance
  • 8.3.4 Monitoring Investment Income and Arbitrage Compliance
• monitoring use of bond-financed property
  • 8.3.3 Monitoring Use of Bond-Financed Property
• penalty in lieu of rebate
  • 4.9.2 Penalty in Lieu of Rebate
• rebate exception
  • 4.9.1 Rebate Exceptions
  • 8.3.5 Arbitrage Rebate
• small issuer exception
  • 4.9.1.1 Small Issuer Exception
    Exception to arbitrage rebate requirements in Tax Code.

arbitrage yield restriction

• Arbitrage
• 4.8.1 General Background on Arbitrage Yield Restriction
• 4.8.2.2 Expenditure of Gross Proceeds
• 4.8.3.1 Fair Market Value Rules
• 4.8.4 Arbitrage Yield Restriction Exceptions
  Important exceptions to this yield restriction rule.
• 4.8.4.4 Other Exceptions
• 8.3.4 Monitoring Investment Income and Arbitrage Compliance
• 9.5.1 Arbitrage Rebate and Yield Restriction
• 9.6 Investment Review and Oversight
  The importance of review and oversight in the management of bond fund investments.

• bona fide debt service funds
  • 4.8.4.2 Bona Fide Debt Service Funds
• expenditure of gross proceeds
  • 4.8.2.2 Expenditure of Gross Proceeds
• fair market value rules
  • 4.8.3.1 Fair Market Value Rules
• initial temporary period
  • 4.8.4.1 Initial Temporary Period
• proceeds
  • 4.8.2.1 Categories of Proceeds
• reserve funds
  • 4.8.4.3 Reserve Funds
• yield
  • 4.8.3 Yield
    The yield on a bond issue defined.
• yield reduction payments
  • 4.8.5 Yield Restriction; Yield Reduction Payments
    Payments made to the U.S. Treasury when the yield on unexpended bond proceeds exceed limits in Tax Code.
• yield restriction
  • 4.8 Arbitrage Yield Restriction
    The Tax Code prohibts the issuance of “arbitrage bonds” and restricts the rate of return on investments made with bond proceeds.
  • 9.5.1 Arbitrage Rebate and Yield Restriction
• yield restriction exception
  • 4.8.4 Arbitrage Yield Restriction Exceptions
    Important exceptions to this yield restriction rule.

assessments

• assessments
• i.1.4.2 Capital Improvement Planning and Capital Improvement Budgeting
• i.4.6 What Financing Options are Available
• 1.4 Local Government Revenue Sources -Security for and Repayment of Debt
  Sources of revenue available to local governments to repay debt obligations.
• 1.4.2 What Is a Tax?
  Series of questions used to determine “what is a tax.”
• 1.4.7 Assessments
  Sources of Revenues securing debt obligations: Assessments defined
• 1.4.8 Fees and Charges
  Sources of Revenues securing debt obligations: Fees and charges defined
• 1.6.1 Initiative Power and its Impact on Debt
• 2.2.1 Sources of Revenue and Security for Repayment
• 2.4.2 Source of Payment; Pledge
  The pledge of revenues securing the debt obligation
• 2.4.5.1 Debt Covenants
• 3.3.6 Enterprise Fund Debt Obligations
  Debt obligations payable from and secured by revenues received from a local government “proprietary” enterprise.
• 3.3.7 Special Assessments, Special Taxes, and Tax Increments
  Debt obligations secured by assessments, special taxes, or tax increment.
• 3.3.7.2 Mello-Roos Bonds (Community Facilities Districts)
  Mello-Roos bonds are payable from special taxes imposed on real property.
• 4.6.3 Private Loan Test
  One of several tests of private activity Private benefit.
• B.1.4.1 Community Facilities Districts/Mello-Roos Bonds
• B.1.4.3 Parcel Taxes
• D.1.2 Process

• voter-approved limitations
  • 1.7 Historical Overview of Voter-Approved Limitations on Local Government Revenues
    Summary of state-level initiatives directed at the fiscal affairs of California state and local government.
  • 1.7.1 Proposition 13 (1978), Jarvis-Gann Initiative
  • 1.7.2 Proposition 4 (1979), Gann Limit Initiative
  • 1.7.5 Proposition 218 (1996), Right to Vote on Taxes Act

assessment bonds

• assessments
• 1.4.7 Assessments
  Sources of Revenues securing debt obligations: Assessments defined
• 1.6.1 Initiative Power and its Impact on Debt
• 3.3.7.1 Assessment Bonds
  Local governments issue assessment bonds to pay for public infrastructure that confers a special benefit upon real property and are payable from assessments imposed on the
• 4.6.2 Private Security or Payment Test
  One of several tests of private activity or benefit.
• 4.6.3 Private Loan Test
  One of several tests of private activity Private benefit.

assessment district

• assessments
• 1.5.1 Charter City Powers – Municipal Affairs vs. Statewide Concerns
  Basis of authority provided to charter cities
• 3.3.7.1 Assessment Bonds
  Local governments issue assessment bonds to pay for public infrastructure that confers a special benefit upon real property and are payable from assessments imposed on the

asset securitization

• 3.7.5 Asset Securitization
  Asset securitization involves a public agency selling either assets expected to generate future revenues.

auction-rate securities (ARS)

• Auction Rate Securities
• 3.4.2.2 Tender or Demand Obligations
  Long-term obligations that achieve short-term interest rates by offering a “tender” or “put” feature.

authority to borrow

• 1.1 A Public Agency’s Authority to Borrow
  This chapter provides an overview of the statutory and legal framework within which California local public agencies may incur debt and obtain the funds needed to repay it.
• A.1 California Consitutional Provisions Relating to Local Public Agency Debt

authorizing statutes

• organic act
• 1.1 A Public Agency’s Authority to Borrow
  This chapter provides an overview of the statutory and legal framework within which California local public agencies may incur debt and obtain the funds needed to repay it.
• 3.3.3 Sales Tax Revenue Bonds
  Debt obligations that are payable from and secured by revenues from the imposition of a sales and use tax, or a transaction and use tax, on retail transactions
• A.3 Organic Statutes of Specific Entities Authorized to Issue Debt