7.1 Reporting to the California Debt and Investment Advisory Commission
All local and state public agency issuers are required by California statutes to provide periodic reporting on their debt issuance activities to CDIAC. From the initial Report of Proposed Debt Issuance to the Annual Debt Transparency Report, issuers are statutorily required to file debt issuance information with CDIAC for transparency purposes.
CDIAC was created in 1981 to, among other things, “collect, maintain, and provide comprehensive information on all state and local debt authorization and issuance, and serve as a statistical clearinghouse for all state and local debt issues.” CDIAC’s regulations, codified as Chapter 1 of Division 9.6 of Title 4 of the California Code of Regulation, defines debt as “a contractual agreement through which a Creditor or Creditors transfers assets or moneys of an agreed value or amount, or rights to beneficial use of assets, to an issuer in exchange for one or more non cancel able payments, inclusive of an interest component no matter whether it is paid, accrued, or imputed, over a specified period of time, the total present value of which is approximately equal to the value of the assets or rights on or about the time the transfer occurred.”115 Debt includes, but is not limited to, bonds, notes, loans, warrants, certificates of participation, commercial paper notes, lines of credit, installment purchase agreements, and certain types of leases.
California Government Code Sections 8855(i)–(k) give CDIAC the authority and direction to collect information about public agency debt authorization and issuance. These Code sections give CDIAC significant discretion in regard to the specific debt information required of issuers and the method for collecting it, including the reports summarized in Figure 7-1.
Figure 7-1
| REPORTING AGENCY | DESCRIPTION | TIMING | APPLICABLE CODE SECTION |
| STATE AND LOCAL AGENCIES that propose to issue debt | Give written notice of the proposed sale and provide specified information. | At least 30 days before the sale | Government Code Section 8855(i)(1) |
| STATE AND LOCAL AGENCIES that issue debt | Submit a report of final sale including specified information about the transaction. | No later than 21 days after sale | Government Code Section 8855(j) |
| STATE AND LOCAL AGENCIES filing report of final sale on or after January 21, 2017 | Submit an annual report on the status of that debt. | Seven months following the end of the reporting period or January 31 of each year. | Government Code Section 8855(k) |
| COMMUNITY FACILITIES DISTRICTS issuing bonds under the Mello-Roos Act | CFD Legislative body must submit the following: Specific events affecting the value of outstanding bonds, and annual status. Report of proposed debt issuance. Yearly fiscal status for debt issued on or after January 1, 1993. Default, draws on reserve | None specified. At least 30 days prior to the sale. Report annual debt status by October 30. Report defaults and draws on reserve within 10 days of occurrence | Government Code Section 53556.05 Government Code Section 53359(a) Government Code Section 53359.5(b) Government Code Section 53359 – (c) |
| LOCAL AGENCIES, including city, county, city, and county, school district, community college district or special district issuing general obligation bonds | Report cost of issuance of bonds | None specified but Government Code Section 8855(j) specifies no later than 21 days after sale. | Government Code Section 53509.5(b) |
| LOCAL AGENCIES issuing refunding bonds | Submit a written statement from the issuer explaining why the local agency decided to sell the bonds at a private sale or on a negotiated basis instead of via public sale. | Reason for Private Sale of Refunding/ Revenue Bonds due 2 weeks (14 days) after the sale of refunding/ revenue bonds | Government Code Section 53583(c)(2)(B) |
| CITIES, COUNTIES AND OTHER AGENCIES | Submit a written statement explaining the decision by legislative body to sell public enterprise revenue bonds at a private (negotiated) sale. | Due 2 weeks after the bonds are sold. | Government Code Section 54418 |
| SCHOOL DISTRICT AND COMMUNITY COLLEGE DISTRICTS | Governing body report the issuance cost of bonds issued by a school district. Governing body report the sale or planned sale by a school district. | No later than 21 days after sale (issuance costs report with Report of Final Sale) 30 days prior to sale and 21 days after sale | Education Code Section 15146(d)(2) Education Code Section 15146(e) |
| SCHOOL DISTRICTS AND COMMUNITY COLLEGE DISTRICTS (school improvement district) | To create a school improvement district, a district must get approval by the county board of supervisors which has jurisdiction over the district and location of project. | Timing not specified in statute | Education Code Section 15303(b) |
| JOINT POWERS AUTHORITY | Report the level of fees or charges imposed by a Joint Powers Authority for the issuance of bonds pursuant to the Joint Exercise of Powers Act. | Not later than 21 days after the sale | Government Code Section 6548.5 |
| JOINT POWERS AUTHORITY AND LOCAL AGENCY BORROWERS | Give notice about the required public hearing, where the authority makes certain findings and takes actions with respect to financing improvements. | At least 5 days before the public hearing | Government Code Section 6586.5(a)(3) |
| JOINT POWERS AUTHORITY AND LOCAL AGENCY BORROWERS (with exemptions for certain types of issuers and projects) | Submit a copy of the resolution adopted by an authority authorizing bonds or the issuance of bonds or accepting the proceeds of bonds issued pursuant to Joint Exercise of Powers Act. | Not later than five days after adoption by the authority | Government Code Section 6586.7(a) |
| JOINT POWERS AUTHORITY acquiring local obligations | Written notice of proposed sale. Yearly fiscal status report for bonds issued on or after January 1, 1996. Default or draws on reserve | 30 days prior to sale. No later than October 30 annually No later than 10 days after occurrence. | Government Code Section 6599.1(a) Government Code Section 6599.1(b) Government Code Section 6599.1(c) |
| JOINT POWERS AUTHORITY issuing rate reduction bonds | Submit a statement from the authority that it is issuing rate reduction bonds, state the source of repayment, and state the saving realized from the sale of the bonds. | Report issuing rate reduction bonds at least 30 days before the sale Report realized savings no later than 21 days after sale | Government Code Section 6588.7(e)(2) |
| HARBOR AGENCY -JOINT POWERS AUTHORITY | Submit annual report(s) of receipts and expenditures from the infrastructure fund and financing activities | Annually – no date specified in statute | Harbor and Navigation Code Section 1706(b) |
| REDEVELOPMENT AGENCY | Submit a copy of the agency’s resolution specifying the financial advantage of the agency purchasing its own bonds and a cover letter with other information specific to the bonds. | Report within 2 weeks following the purchase of bonds | Health and Safety Code Section 33664(d) |
| IRRIGATION DISTRICTS | Notice of proposed sale of any evidence of indebtedness issued to provide financing of any works of the district. Failure to five notice shall render the sale invalid. CDIAC may waive the 30 day notice upon application by the district. | 30 days prior to the proposed sale. | Water Code Section 20560.2 |
Currently, the forms of reporting described below are submitted electronically through CDIAC’s website, www.treasurer.ca.gov/cdiac/reporting.asp.