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1 TAX EQUITY AND FISCAL RESPONSIBILITY ACT
(TEFRA) PUBLIC HEARING REGARDING
BONDS FOR CALIFORNIA BAPTIST UNIVERSITY
City Council
October 20, 2026
Finance Department
RiversideCA.gov
2 • IRS Code Section 147(f) requires local approval of
private-activity revenue bonds
• A Tax Equity and Fiscal Responsibility or TEFRA for short public hearing must be conducted to allow members
of the public to comment on the project • City is not under any obligation to repay the bonds
WHAT IS TEFRA
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3 1. Who is California Municipal Finance Authority (CMFA)
2. What do they do?
3. Who are their members?
BACKGROUND
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4 1. Bonds are issued by CMFA on behalf of California
Baptist University
2. Funds may refund prior bonds or issue new taxexempt bonds in an amount not to exceed $45 million
FINANCING OVERVIEW
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5 Funds will support projects at both
• 3532 Monroe Street (Health Sciences Campus)
• 8432 Magnolia Avenue (Main Campus)
Projects Include: • Construction of a new 23,000 sq ft 2-story Dental Hygiene building • Renovation, retrofit for CAVAD and other academic
programs/departments
• Improvements to 3,600 sq ft existing space plus a new 1,060 sq ft film and broadcast building addition
PROJECT SCOPE
RiversideCA.gov
6 • No fiscal impact to the City
• City has no financial, legal or moral obligation for the bonds
• Repayment of the bonds is the responsibility of CBU
FISCAL IMPACT
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7 That the City Council:
1. Conduct the Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing regarding the issuance of revenue or refunding bonds for the project; and
2. Adopt the resolution authoring the issuance of bonds in an amount notto-exceed $45 million by the California Municipal Finance Authority, on behalf of California Baptist University, for the project.
RECOMMENDATIONS
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