City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: OCTOBER 20, 2026 FROM: FINANCE DEPARTMENT WARD: 5
SUBJECT: PUBLIC HEARING – RESOLUTION AUTHORIZING THE ISSUANCE OF BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $45,000,000 BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR CALIFORNIA BAPTIST UNIVERSITY FOR THE PURPOSE OF FINANCING AND REFINANCING BONDS FOR EDUCATIONAL FACILITIES AND IMPROVEMENTS LOCATED AT 8432 MAGNOLIA AVENUE AND 3532 MONROE STREET ISSUE:
Conduct a Public Hearing under the Tax and Equity Fiscal Responsibility Act in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority, a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed $45,000,000, to finance and refinance (the “Bonds”), and the construction, equipping and furnishing of educational facilities and other improvements located at 8432 Magnolia Avenue and 3532 Monroe Street, which is located on CBU’s campus and is within the City of Riverside, California, and authorize the City Manager or his designee to execute all required documents.
RECOMMENDATIONS:
That the City Council:
Conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) Public Hearing regarding the issuance of revenue or refunding bonds for the proposed Project (as defined below), and Adopt the resolution to authorize the issuance the Bonds by the California Municipal Finance Authority for the benefit of California Baptist University (the “Borrower”), to provide for the financing of the Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA.
BACKGROUND:
The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities have become members of CMFA.
The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.
DISCUSSION:
The City has received a request from CMFA to conduct a public hearing as required by the Internal Revenue Code to issue bonds in an aggregate amount not to exceed $45 million (the “Bonds”) on behalf of California Baptist University (the “Borrower”).
The proceeds of the Bonds will be used to finance, refinance, and/or reimburse the Borrower for all or a portion of:
Costs of construction, renovation, acquisition, and equipping of educational facilities and other improvements located at 8432 Magnolia Avenue, Riverside, California 92504 and 3532 Monroe Street, Riverside, California 92504 (the “Project”); Interest on the Bonds;
Credit enhancement, bond insurance and liquidity costs, if any; Funding one or more debt service reserve funds, if any, for the Bonds; and Issuance costs of the Bonds.
In order for the Bonds to qualify as tax-exempt bonds, the City of Riverside (the “City”) must conduct a Public Hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.
FISCAL IMPACT:
This action has no fiscal impact to the City. The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Riverside, it is expected that a portion of the issuance fee attributable to the City will be granted by the CMFA to the General Fund of the City. Such grant may be used for any lawful purpose of the City.
Prepared by: Meline Carranza, Debt and Treasury Manager Approved by: Sergio Aguilar, Deputy Finance Director
Certified as to
availability of funds: Julie Nemes, Finance Director
Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/City Treasurer
Approved as to form: James Johnson, City Attorney
Attachments:
Resolution
Notice of Public Hearing
Presentation
TEFRA HEARING CMFA for the benefit of CAL Baptist ● Page 2