CITY OF SAN MATEO
RESOLUTION NO. ____ (2024)
AUTHORIZING THE CITY MANAGER TO APPROVE ISSUANCES OF TAXABLE BONDS BY THE
CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE BENEFIT OF LOCAL GOVERNMENTS,
NON-PROFIT ORGANIZATIONS, AND BUSINESSES TO FINANCE PROJECTS THAT PROVIDE
COMMUNITY BENEFITS AND REQUIRE NO FINANCIAL OR OTHER LEGAL OBLIGATION FROM THE
CITY OF SAN MATEO
WHEREAS, the California Municipal Finance Authority ("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; and WHEREAS, the City of San Mateo became a member of the CMFA in October 2019 through the execution of the Joint Exercise of Powers Agreement; and WHEREAS, the CMFA has the ability to issue both taxable and tax-exempt bonds to support various projects, including those located within the City of San Mateo; and WHEREAS, any issuance of tax-exempt and taxable bonds by the CMFA for projects located within its jurisdiction will require the City’s approval in accordance with the Joint Exercise of Powers Agreement; and WHEREAS, bonds issued by the CMFA will be the sole responsibility of the borrower, and the City will have no financial, legal, or moral obligation, liability, or responsibility for the project, or the repayment of the bonds; and
WHEREAS, tax-exempt bonds require public hearings in accordance with the Tax Equity and Fiscal Responsibility Act (the “TEFRA hearing”) and the TEFRA hearings are not required for the issuance of taxable bonds; and
WHEREAS, the City Council desires to streamline the approval process for the issuance of taxable bonds by the CMFA to finance projects that provide community benefits, and that require no financial obligation on the part of the City of San Mateo; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA HEREBY FINDS AND RESOLVES that:
1. This City Council action is not subject to CEQA review because it is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. (CEQA Guidelines Section 15378(b)(4)).
2. The City Manager is hereby authorized and designated as the City's duly authorized representative to approve the issuance of taxable bonds by the CMFA for the benefit of local governments, non- profit organizations, and businesses to finance projects within the City of San Mateo, subject to the following conditions:
a) The project provides community benefits;
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9 b) The financing is limited to taxable bonds;
c) The City's approval is solely for the purpose of satisfying the requirements of the CMFA Joint Exercise of Powers Agreement; and
d) The financing is the sole responsibility of the borrower, and the City assumes no financial, legal, moral obligation, liability, or responsibility for the projects, or the repayment of bonds related to the taxable conduit financing.
3. This Resolution shall take effect from and after its date of adoption.