S

safe harbor

• 4.6.1.3 Management, Operating, and Service Contracts
• 4.8.3.1 Fair Market Value Rules
• 9.4.2 Investments Specific to Bond Funds
• 9.5.1 Arbitrage Rebate and Yield Restriction

sales tax revenue bonds (See “revenue bonds”)

school districts

• i.4.3 Steps Public Agencies Must Take to Use Debt Financing
• i.5.2.1 Proposition 39 General Obligation Bonds
• 1.1.1 Statutory Authority to Borrow
  All public agencies are subject to the California Constitution and the powers granted to them or that are essential to their purpose.
• 1.2.1 Debt Limit
  Voter approval requirements imposed by the State Constitution to restrict the ability of certain public agencies to incur unfunded, long term obligations
• 1.2.3 Scope of Debt Limit – When Does the Debt Limit Apply?
• Figure 1-1 Public Agency Revenue Sources by Category
• 1.4.3 Ad Valorem Real Property Taxes
  Sources of Revenues securing debt obligations: Ad Valorem tax defined
• 1.4.4.2 Proposition 46 General Obligation Bonds
  Ad Valorem property taxes securing voter approved Proposition 46 GO bonds.
• 1.7.3 Proposition 46 (1986)
• 1.7.6 Proposition 39 (2000), School Facilities Local Vote Act of 2000
• 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 obligation”
• 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
• 3.3.2.1 Lease Revenue Bonds and Certificates of Participation
• 3.3.4 TRANs and RANs
  Tax and revenue anticipation notes (TRANs) and revenue anticipation notes (RANs) may be used to finance current fiscal year expenses.
• Figure 3-6 Marks-Roos Large Scale Pool
• Figure 7-1 Reports that Debt Issuers Must Sumbit to CDIAC
• A.1 California Consitutional Provisions Relating to Local Public Agency Debt
• A.2 Authority for Cities, Counties and K-14 School Districts to Issue Debt
• A.5 Financing Tools Contained in Statute
• B.1 School Facility Finance
• B.1.1 Overview of School Facility Financing
• B.1.1.2 Proposition 13
• B.1.2 State-Level Facility Funding
• B.1.3 School District Financing Options
• B.1.3.1 Local General Obligation Bonds
• Figure B-1 Statutory Debt Limits
• B.1.3.1.1 Process for Approval of Local School District GO Bonds
• B.1.3.1.2 GO Bond Structures
• B.1.3.1.3 Policy Considerations for Issuing GO Bonds
• B.1.3.2 School Facilities Improvement Districts
• B.1.3.3 Certificates of Participation/Leases
• B.1.4.1 Community Facilities Districts/Mello-Roos Bonds
• B.1.4.2 Developer Fees
• B.1.5 Additional Financing Tools for School Districts
• B.1.5.1 Tax and Revenue Anticipation Notes
• B.1.5.2 Bond Anticipation Notes
• B.1.5.3 Refunding Bonds
• B.1.6.1 Charter School Facilities

Securities and Exchange Commission (SEC)

• Securities and Exchange Commission (SEC)
• Introduction
• i.3.2 Legal Responsibilities of Issuers of Municipal Securities
• i.3.2.1 Compliance with Municipal Securities Laws – Disclosure
• i.3.2.3 Responsibilities of Elected and Appointed Officials
• i.4.1 Financing Team
• i.4.1.1 Pre-Issuance Phase
• i.4.1.3 Post-Issuance Phase
• 5.6.1 What Credit Ratings Mean
• 5.6.2 The Credit Rating Process
• 6 Securities Laws Pertaining to Municipal Debt
  Municipal bonds, notes, certificates of participation, and similar obligations sold to investors (“municipal securities”) are generally subject to federal and state securities laws.
• 6.1.1 Antifraud 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 anitfraud provisions of federal securities laws.
• 6.1.2 Governing Board Responsibilities
  Role of governing board in complying with federal securities laws.
• 6.1.4 SEC Enforcement Actions
  Review of important enforcement actions against public agencies.
• 6.1.4.1 Recent SEC Enforcement Focus
• 6.1.4.2 Lessons from SEC Cases
• 6.2.1 Municipal Advisors and Underwriters
• 6.3.4 Transactions with Credit or Liquidity Support
  The OS must include a description of the terms of that credit or liquidity support and disclosure regarding the credit or liquidity provider
• 8.4.1 Annual Reports
  Annual financial reports submitted as a part of continuing disclosures made by issuers.
• 8.4.4 Incentives for Compliance
  Failure to comply with the requires of SEC Rule 15c2-12 must reported in any subsequent public offering.
• 9.4.1 Permitted Investments
  Types of investment vehicles that may be used to invest bond funds.
• C.2 Regulatory Resources

• Office of Credit Ratings
  • 5.6.1 What Credit Ratings Mean
  • C.3.1 Regulatory Oversight
• Securities Acts
  • i.3.2 Legal Responsibilities of Issuers of Municipal Securities
  • i.3.2.3 Responsibilities of Elected and Appointed Officials
  • 5.5 Private Placements
    Private placements are sale transactions in which the issuer sells the entire issue of debt to a single or to a limited number of investors.
  • 6 Securities Laws Pertaining to Municipal Debt
    Municipal bonds, notes, certificates of participation, and similar obligations sold to investors (“municipal securities”) are generally subject to federal and state securities laws.
  • 6.1 Federal Securities Laws
    While municipal securities are exempt from the registration requirements of federal securities law, they are subject to other rules.
  • 6.1.1 Antifraud 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 anitfraud provisions of federal securities laws.

SEC Rule 10b-5

• SEC Rule 10B-5
• i.3.2 Legal Responsibilities of Issuers of Municipal Securities
• i.3.2.1 Compliance with Municipal Securities Laws – Disclosure
• 5.5 Private Placements
  Private placements are sale transactions in which the issuer sells the entire issue of debt to a single or to a limited number of investors.
• 6.1.1 Antifraud 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 anitfraud provisions of federal securities laws.
• 6.1.3 Secondary Market Disclosure
  Federal securities laws as they apply to communications with secondary market participants.
• 6.1.4.2 Lessons from SEC Cases
• 6.2.1 Municipal Advisors and Underwriters
• 6.2.2 Attorneys
• 8.4.1 Annual Reports
  Annual financial reports submitted as a part of continuing disclosures made by issuers.
  

SEC Rule 15c2-12

• SEC Rule 15c2-11
• i.3.2.1 Compliance with Municipal Securities Laws – Disclosure
• i.4.1.3 Post-Issuance Phase
• i.5.1.2 Disclosure Policies
• i.5.1.3 Investor Relations Policies
• 5.5 Private Placements
  Private placements are sale transactions in which the issuer sells the entire issue of debt to a single or to a limited number of investors.
• 6.1.3 Secondary Market Disclosure
  Federal securities laws as they apply to communications with secondary market participants.
• 6.2.1 Municipal Advisors and Underwriters
• 6.3.1 Role and Purpose of the Official Statement and the Preliminary Official Statement
• 8.2.3 Recordkeeping and Reporting
  Recordkeeping essential to maintaining tax exempt status of bonds.
• 8.4 Continuing Disclosure
  Public agencies take on certain responsibilities to file information regularly when they issue municipal securities, including an annual report and notices of certain events.
• 8.4.1 Annual Reports
  Annual financial reports submitted as a part of continuing disclosures made by issuers.
• 8.4.2 Event Notices
  Event notices required by SEC Rule 15c2-12.
• 8.4.3 Exceptions to Rule 15c2-12 Continuing Disclosure Requirements
• 8.4.4 Incentives for Compliance
  Failure to comply with the requires of SEC Rule 15c2-12 must reported in any subsequent public offering.
• 8.5.4 Managing Disclosure Risk
  Approaches to managing the risk improper disclosure.

Secured Overnight Financing Rate (SOFR)

• Secured Overnight Financing Rate (SOFR)
• 3.4.2.1 Index Debt
  The interest rate payable on a debt obligation is adjusted periodically in accordance a published index.

security pledge for repayment of debt

• security and source of payment
• 1.4 Local Government Revenue Sources -Security for and Repayment of Debt
  Sources of revenue available to local governments to repay debt obligations.
• 1.6.1 Initiative Power and its Impact on Debt
• 2.2.1 Sources of Revenue and Security for Repayment
• 3.3.6 Enterprise Fund Debt Obligations
  Debt obligations payable from and secured by revenues received from a local government “proprietary” enterprise.
• 3.3.6.1 Public Enterprise Revenue Bonds
• 3.3.7.2 Mello-Roos Bonds (Community Facilities Districts)
  Mello Roos bonds are payable from special taxes imposed on real property.
• 3.3.8 Single-Family Mortgage Revenue Bonds
  Public agencies issue single family mortgage revenue bonds to assist home ownership.
• 4.6.2 Private Security or Payment Test
  One of several tests of private activity or benefit.
• 4.8.2.1 Categories of Proceeds
• 5.7.2 Targeting Investors
• 8.1.1 Bond Documents
  Bond documents that contain provisions that control the administration of bond funds.
• 9.3.1 Statutory Authority
  Controlling statutory authority for investment of bond funds.
• A Legal References
  Index and links to existing laws concerning the financial operations of California public agencies.
• B.1.3.1.3 Policy Considerations for Issuing GO Bonds
• D.1.2 Process

• First General Operating Principle of Public Debt
  • 2.2.1 Sources of Revenue and Security for Repayment
• Second General Operating Principle of Public Debt
  • 2.2.2 Term and Interest Rate Mode
    Structural features: terms and interest rate mode.

serial bonds

• serial bonds
• 2.2.2.1 Long-Term, Fixed-Rate Debt
• 2.2.2.3 Variable-Rate Debt
• 3.4.1 Long-Term, Fixed-Rate Debt

short term debt

• short-term debt
• i.4.2.7 Decision #7 – Evaluate municipal market opportunities to use debt financing
• 2.2.2 Term and Interest Rate Mode
  Structural features: terms and interest rate mode.
• 2.2.2.2 Short-Term Debt
• 2.2.2.3 Variable-Rate Debt
• 5.6.1 What Credit Ratings Mean
• B.1.5.1 Tax and Revenue Anticipation Notes

SIFMA Municipal Swap Index

• Securities Industry and Financial Markets Association (SIFMA)
• 3.4.2.1 Index Debt
  The interest rate payable on a debt obligation is adjusted periodically in accordance a published index.

single family mortgage revenue bonds (See “revenue bonds”)

small issue industrial development bonds (See “conduit revenue bonds”)

sovereign powers

• i.4.5.1 Requirement #1 – The debt must be issued by a qualified issuer
• 4.2.2 Political Subdivision – Sovereign Powers Requirement
  Political subdivision defined for purposes of the Tax Code.

special districts

• special district
• i.1.1 Who Are You and What Do You Want To Be?
• 1.2.3 Scope of Debt Limit – When Does the Debt Limit Apply?
• 1.4 Local Government Revenue Sources -Security for and Repayment of Debt
  Sources of revenue available to local governments to repay debt obligations.
• 1.4.3 Ad Valorem Real Property Taxes
  Sources of Revenues securing debt obligations: Ad Valorem tax defined
• 1.4.6 Special Taxes
  Sources of Revenues securing debt obligations: Special taxes defined
• 1.7.1 Proposition 13 (1978), Jarvis-Gann Initiative
• 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
• 3.3.6.1 Public Enterprise Revenue Bonds
• 3.3.7.2 Mello-Roos Bonds (Community Facilities Districts)
  Mello Roos bonds are payable from special taxes imposed on real property.
• 7.1 Reporting to the California Debt and Investment Advisory Commission
  Compliance with California Government Code 8855 et. seq.
• 9.4.1 Permitted Investments
  Types of investment vehicles that may be used to invest bond funds.
• A.1 California Consitutional Provisions Relating to Local Public Agency Debt
• A.3 Organic Statutes of Specific Entities Authorized to Issue Debt
• A.5 Financing Tools Contained in Statute
• B.1.1.2 Proposition 13
• B.1.3.1 Local General Obligation Bonds
• C.4.2 Joint Powers Authorities/Agencies (JPAs)

special fund exception

• special fund
• i.4.3 Steps Public Agencies Must Take to Use Debt Financing
• 1.2.4.4 Special Fund Exception
  An exception to the constitutional debt limit if debt service is payable solely from a special fund
• 1.3.3 Revenue Bonds
  Debt obligation structured to comply with the Special Fund exception to the Constitutional debt limit.
• 3.3.6 Enterprise Fund Debt Obligations
  Debt obligations payable from and secured by revenues received from a local government “proprietary” enterprise.
• 3.6.1 Financing Leases
  The public agency obtains financing by entering into a lease for which it makes rental payments
• 3.9.4 Financings for State Enterprises
  bonds and notes issued by State enterprises such as the California Housing Finance Authority and payable from enterprise revenues.

special taxes

• special tax
• i.4.2.1 Decision #1 – Choose the funding source
• 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.
• 1.4.6 Special Taxes
  Sources of Revenues securing debt obligations: Special taxes defined
• 1.4.7 Assessments
  Sources of Revenues securing debt obligations: Assessments defined
• 1.7.1 Proposition 13 (1978), Jarvis-Gann Initiative
• 1.7.5 Proposition 218 (1996), Right to Vote on Taxes Act
• 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
• 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.
• 3.7.4 Other Tax and Fee-Secured Debt
  Public agency bonds and other debt obligations may also be secured by taxes and fees levied by the public agency.
• 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.
• 6.3.2 Contents of the Official Statement
• 7.1.4 Mello-Roos Community Facilities District Reports
• A.1 California Consitutional Provisions Relating to Local Public Agency Debt
• A.5 Financing Tools Contained in Statute
• B.1.1.1 School Facility Finance Before Proposition 13
• B.1.1.2 Proposition 13
• B.1.3 School District Financing Options
• B.1.3.2 School Facilities Improvement Districts
• B.1.4.3 Parcel Taxes
• B.1.6.2 Nonprofit and Religious School Facilities

surety

• surety/reserve funds surety
• 2.3.2.2 Debt Service Reserve Fund Surety Bonds
  Credit enhancement: Debt service reserve fund
• 2.4.4 Debt Service Reserve Fund
  The use of a debt service fund to repay principal and interest on a debt obligation.
• 2.4.11.2 Amendments Requiring Debt Holder Consent
• 5.2.3 Documentation for a Competitive Sale

standby bond purchase agreement

• 2.3.2.4 Lines of Credit and Standby Bond Purchase Agreements
  Liquidity Support: Lines of Credit
• 3.4.3 Commercial Paper
  “A debt obligation that involves the issuance and marketing of short term notes. “

State and Local Government Series (SLGS)

• State and Local Government Series (SLGS)
• 3.7.6 Refunding Bonds
  Refunding obligations are any municipal debt obligations used to pay principal, interest and premium on other municipal debt.
• 4.8.3.1 Fair Market Value Rules
• 9.4.2 Investments Specific to Bond Funds
• 9.5.2 Investment Considerations
  Issuer considerations regarding investment of bond funds.

State of California Financing

• 3.9 State Financings
  The various financing vehicles used by the State of California.
• A.3 Organic Statutes of Specific Entities Authorized to Issue Debt

statewide concerns

• 1.1.3 Borrowing Authority of Charter Cities
  Authority to borrow provided to charter cities by their charter.
• 1.5.1 Charter City Powers – Municipal Affairs vs. Statewide Concerns
  Basis of authority provided to charter cities ( See “charter city powers”)

strategic planning

• i.1.4.1 Strategic Planning

swap

• i.4.1.3 Post-Issuance Phase
• 1.2.4.5 Contingent Obligation Exception
  Debt limit exception depends upon the fact that the public agency’s obligation to make payments from the income and revenue of a future fiscal year is contingent.
• 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 obligation”
• 4.4.2 Costs of Issuance
  Cost of issuance pursuant to the Tax Code.
• 4.8.3 Yield
  The yield on a bond issue defined.
• 8.3.4 Monitoring Investment Income and Arbitrage Compliance
• A.6 General Bond Statutes

synthetic structure (See “swap”)