Report to City Council
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TO: Mayor and City Council
FROM: Sean Kelleher, Assistant City Manager - Development
AGENDA DATE: December 2, 2025
TITLE: PARTICIPATION IN STATEWIDE COMMUNITY
INFRASTRUCTURE PROGRAM (SCIP) AND BOND
OPPORTUNITIES FOR LAND DEVELOPMENT (BOLD)
PROGRAM (REPORT OF : CITY MANAGER)
(DISTRICT: ALL DISTRICTS)
TITLE SUMMARY: City Participation In The California Statewide Communities Development Authority (CSCDA), Statewide Community
Infrastructure Program (SCIP) And The California Municipal Finance Authority (CMFA) Bond Opportunities for Land
Development (BOLD) Program.
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Adopt Resolution No. [Next in Order] to become a participating member agency of California Statewide Communities Development Authority's (CSCDA), Statewide Community Infrastructure Program, and authorize the City Manager, or their designee, to submit the resolution and any other required documentation to CSCDA.
2. Adopt Resolution No. [Next in Order] to become a participating member agency of California Municipal Fin ance Authority's (CMFA) Bond Opportunities for Land Development (BOLD) Program and authorize the City Manager, or their designee, to submit the resolution and any other required documentation to CMFA.
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SUMMARY
In an effort to promote continued economic growth in the City of Moreno Valley, this report recommends participation in two bond programs: 1) the Statewide Community Infrastructure Program (“SCIP”), which is sponsored by the California Statewide Communities Development Authority (“CSCDA”); and 2) the Bond Opportunities for Land Development (BOLD) Program, which is sponsored by the California Municipal Finance Authority (“CMFA”).
DISCUSSION
California Statewide Communities Development Authority (CSCDA), Statewide Community Infrastructure Program (SCIP)
CSCDA is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. The member agencies of CSCDA include approximately 391 cities and 56 counties throughout California, including the City of Moreno Valley (the “City”).
SCIP was instituted by CSCDA in 2002 to allow owners of property in participating cities and counties to finance the development impact fees that would be payable by property owners upon receiving development entitlements or building permits. The program has since been expanded to include financing of public capital improvements directly. If a property owner chooses to participate, the selected public capital improvements and the development impact fees owed to the City will be financed by the issuance of tax-exempt bonds by CSCDA. CSCDA will impose a special assessment on the owner’s property to repay the portion of the bonds issued to finance the fees paid with respect to the property.
With respect to impact fees, the property owner will either pay the impact fees at the time of permit issuance, and will be reimbursed from the SCIP bond proceeds when the SCIP bonds are issued; or the fees will be funded directly from the proceeds of the SCIP bonds.
In the former case, the City is required to pay the fees over to SCIP, and in the latter case, SCIP holds the bond proceeds representing the fees. In both cases the fees are subject to requisition by the City at any time to make authorized fee expenditures. But by holding and investing the money until it is spent, SCIP is able to monitor the investment earnings (which come to the City) for federal tax law arbitrage purposes. SCIP encourages the City to spend those amounts before any other fee revenues of the City. If the fees are paid by the property owner and bonds are never issued, the fees are returned to the City by SCIP. In this way, the City is never at risk for the receipt of the impact fees.
The benefits to the property owner include:
Only property owners who choose to participate in the program will have assessments imposed on their property.
Instead of paying cash for public capital improvements and/or development impact fees, the property owner receives low -cost, long -term tax -exempt financing of those fees, freeing up capital for other purposes.
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The property owner can choose to pay off the special assessments at any time. For home buyers, paying for the costs of public infrastructure through a special assessment is superior to having those costs “rolled” into the cost o f the home.
Although the tax bill is higher, the amount of the mortgage is smaller, making it easier to qualify. Moreover, because the special assessment financing is at tax - exempt rates, it typically comes at lower cost than mortgage rates. Owners of smaller projects, both residential and commercial, can have access to tax-exempt financing of infrastructure. Before the inception of SCIP, only projects large enough to justify the formation of an assessment or community facilities district had access to tax-exempt financing.
The benefits to the City include:
As in conventional assessment financing, the City is not liable to repay the bonds issued by CSCDA or the assessments imposed on the participating properties. CSCDA handles all district formation, district administration, bond issuance and bond administration functions. A participating city can provide tax -exempt financing to property owners through SCIP while committing virtually no staff time to administer the program.
Providing tax-exempt financing helps participating cities and counties cushion the impact of rising public capital improvements costs and development impact fees on property owners.
The availability of financing will encourage developers to pull permits and pay fees in larger blocks, giving the participating city immediate access to revenues for public infrastructure, rather than receiving a trickle of revenues stretched out over time. As part of the entitlement negotiation process, the possibility of tax -exempt financing of fees can be used to encourage a developer to pay fees up front. In some cases, the special assessments on successful projects can be refinanced through refunding bonds. Savings achieved through refinancing will be directed back to the participating city for use on public infrastructure, subject to applicable federal tax limitations.
The proposed resolution authorizes CSCDA to accept applications from owners of property within our planning jurisdiction to apply for tax-exempt financing of public capital improvements and development impact fees through SCIP. It also authorizes CSCDA to form assessment districts within the City’s boundaries, conduct assessment proceedings and levy assessments against the property of participating owners. It approves the form of an Acquisition Agreement, attached to the SCIP resolution as Exhibit 2, to be entered into between the City and the participating property owner/developer , if applicable, to provide the terms and conditions under which financing for public capital improvements will be provided and to establish the procedure for disbursement of bond proceeds to pay for completed facilities. It also authorizes miscellaneous related actions and makes
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certain findings and determinations required by law.
Attached to the SCIP resolution as Exhibit 1 is a “Form of Resolution of Intention to be Adopted by CSCDA.” This is for informational purposes and does not require action by the City Council.
California Municipal Finance Authority (CMFA) Bond Opportunities for Land Development (BOLD) Program
The City is a member of CMFA, a State -wide joint powers authority (“JPA”) whose members are numerous cities, counties, and other public agencies throughout California.
CMFA has the authority to issue bonds to meet its mission of supporting economic development, job creation, and social programs throughout the State, while giving back to California communities. By supporting member communities and their local charities with a portion of the revenue generated through the issuance of tax -exempt bonds f or public, private , and non -profit entities, CMFA is able to directly contribute to building strong communities to support the health and welfare of the residents of California.
CMFA recognizes that new residential development often challenges the mission of municipalities to provide infrastructure, since new development triggers the need to construct, acquire, or otherwise provide additional public facilities to accommodate that growth. The BOLD Program offers a means to finance new or continuing construct ion of infrastructure and public facilities through bonds that CMFA issues as an alternative to the issuance of land -secured bonds directly by a public entity. The BOLD Program is designed to help local government municipalities and land developers through out the State work together to cost-effectively finance public infrastructure projects and development fees.
Under the BOLD Program, bonds are issued by a community facilities district (“CFD”) formed by CMFA under the Mello -Roos Community Facilities Act of 1982 (California Government Code Section 53311 et seq.) (the “Act”). The Act offers great financing flexibility and is commonly used by cities and other local agencies throughout the State to generate funds for the payment of public facilities, including development fees for facilities. CFDs can also be structured to pay for the maintenance of public facilities and other service costs of the City.
Bonds are issued through CMFA, with little involvement from local agencies needed for the issuance process. The City will need to approve the use of a CFD to acquire public facilities and the financing thereof, and enter into a joint community facilities agreement, acquisition agreement or similar agreement to receive the bond proceeds, and to meet the general requirements to maintain the tax exemption of interest on the bonds. CMFA adopts the resolutions needed to authorize and issue the special tax bonds and awards the sale to the bond underwriter.
Once the bond issuance occurs, bond proceeds are available to be disbursed. The proceeds are held by a bond trustee and available, as directed by the developer and approved by the local agency, to be used to meet obligations to the City and other local agencies according to the structure and timing required for developm ent approvals.
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Pursuant to an acquisition agreement or similar document, the City will determine and agree to its role in inspecting and accepting infrastructure and/or payment of financed impact fees.
The CFD may be formed early in the development process , with issuance of bonds at a later time or in multiple series. The following are the typical criteria for bond issuance. Minimum 4:1 value-to-debt ratio overlapping (assessed or appraised); No discretionary approvals required for build-out of the portion of the CFD directly relating to the bond security;
Entitlements received that are necessary for phase to be bonded; and Financing plan for backbone infrastructure complete or imminent and/or performance bond in place.
Administration of all aspects of the B OLD Program is handled by CMFA, without cost to or burden on the City. City staff time can and will be reimbursed by the participating developers upfront and by CMFA once bonds are issued.
CMFA shares a portion of its issuance fees directly with its member communities. In addition, a grant from a portion of the issuance fee is made to the California Foundation for Stronger Communities (“CFSC”) to fund charities designated by the member communities. A portion of the annual fees received by CMFA are in turn d irected to charitable activities within its member communities. This unique commitment to give back directly to the communities in which they operate sets CMFA apart from other JPA conduit issuers.
California law requires developers to disclose to home buyers the lien of any CFD special tax which will be present on the purchased property. The form of disclosure is simple and becomes part of the various sale documents presented to buyers for signature prior to a home sale.
The BOLD program is a cost-effective form of land secured financing, and the more cost- effective a bond financing is, the greater overall public benefit there is (since more proceeds are available for the acquisition of public infrastructure).
ALTERNATIVES
1. Approve an authorize the recommended actions as presented in this staff report.
Staff recommend this alternative.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative.
FISCAL IMPACT
None. All of the cost s and expenses related to the issuance of bonds and ongoing
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administration associated with SCIP is the responsibility of CSCDA and there is no liability or fiscal impact on the City.
Additionally, all of the costs and expenses related to the formation, iss uance of bonds and ongoing administration for any CFD formed by the BOLD program is the responsibility of CMFA and there is no liability or fiscal impact on the City.
The City can be reimbursed for any staff time expended on these programs.
NOTIFICATION
A public notice for this agenda item was posted at least 72 hours in advance of the meeting on this item, in accordance with the Brown Act for public review and inspection.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Sean P. Kelleher Brian Mohan
Assistant City Manager (Development) City Manager
CITY COUNCIL GOALS
Revenue Diversification and Preservation. Develop a variety of City revenue sources and policies to create a stable revenue base and fiscal policies to support essential City services, regardless of economic climate.
Public Facilities and Capital Projects. Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.
Positive Environment. Create a positive environment for the development of Moreno Valley's future.
Community Image, Neighborhood Pride and Cleanliness. Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
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Report Approval Details
Document
Title:
STAFFREPORT_CM_SCIP_BOLD.docx
Attachments: - RESOLUTION_BOLD_PROGRAM_PARTICIPATION.docx - RESOLUTION _SCIP_PARTICIPATION.docx
- NEWSPAPER_NOTICE_SCIP_BOLD.docx
Final Approval
Date:
Nov 26, 2025
This report and all of its attachments were approved and signed as outlined below:
Brian Mohan
Patty Rodriguez
Natalia Lopez
No Signature - Task assigned to Dena Heald was completed by workflow administrator Patty Rodriguez
Dena Heald
Launa Jimenez
Patty Rodriguez