City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 07/11/2023
Subject: Withdraw membership from California Municipal Finance Authority (CMFA) RECOMMENDED ACTION:
This resolution approves the withdrawal of the City of Ripon from the California Municipal Finance Authority and authorizes the Mayor to send a letter notifying their Board of Directors.
BACKGROUND:
The California Municipal Finance Authority (CMFA) has been asked by Bethany Home Society of San Joaquin County, Inc (“Borrower”) to be the issuer of tax-exempt financing for the Terraces at Bethany project (“Project”) that was approved by the City Council in July 2022.
The City Council conducted a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) on December 13, 2022 in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA”), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $60,000,000, (the “Bonds”), to finance and/or refinance the construction, expansion, equipping, improvement, renovation, rehabilitation, furnishing and/or remodeling of senior living and related facilities known as Bethany Home (collectively, the “Project”).
At this same meeting, the City Council adopted Resolution 22-49 to become a member of the CMFA and to approve the financing of the Project by the CMFA.
DISCUSSION:
The Joint Exercise of Powers Agreement expressly provides that any member may withdraw from such agreement upon written notice to the Board of Directors of the CMFA. In the case of the proposed bond financing for the Borrower, the City, following its execution of the Joint Exercise of Powers Agreement, could, at any time, following the issuance of the Bonds, withdraw from the CMFA at no expense by providing written notice to the Board of Directors of the CMFA.
In February 2023, Bethany Home secured their financing for their project and there is no longer any need for the City of Ripon to remain a member of California Municipal Finance Authority.
FISCAL IMPACT:
None.
Attachments:
1. Withdrawal from CMFA 2023.07
RESOLUTION NO. 23-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON WITHDRAWING FROM THE CALIFORNIA
MUNICIPAL FINANCE AUTHORITY AND AUTHORIZING
THE MAYOR TO EXECUTE A LETTER NOTIFYING THEIR
BOARD OF DIRECTORS
WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”), certain public agencies (the “Members”) have entered into a Joint Exercise of Powers Agreement, effective on January 1, 2004 (the “Agreement”) in order to form the California Municipal Finance Authority (the “Authority”), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, in December 2022, the City of Ripon (the “City”), determined that it was in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and WHEREAS, in December 2022, City Council of the City of Ripon adopted Resolution 22-49 authorizing the Mayor to sign the Agreement and approve the issuance by the Issuer of the Bonds to Bethany Home in order for them to secure financing for their project; and WHEREAS, the City of Ripon wishes to withdraw their membership from the California Municipal Finance Authority because Bethany Home secured financing for their project in February 2023 and there is no further need for the City of Ripon to be part of this Joint Powers Authority.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ripon, as follows:
Section 1. The City of Ripon removes itself as a member of the California Municipal Finance Authority.
Section 2. The Council hereby authorizes the Mayor of the City of Ripon to execute a letter to the California Municipal Finance Authority stating the City’s withdrawal as a member of the CMFA.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 11th day of July, 2023, by the following vote:
RESULT: ADOPTED AS AMENDED BY CONSENT VOTE [UNANIMOUS]
MOVER: Gary Barton, Council Member
SECONDER:Daniel de Graaf, Council Member
AYES: Restuccia, Zuber, de Graaf, Barton, Uecker
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
MICHAEL RESTUCCIA, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk