COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: September 16, 2025
SUBJECT: Adoption of Resolutions Authorizing Use of Bond Opportunities for Land Development Program and Authorizing the City of Santa Maria to Join the Statewide Community Infrastructure Program
Description:
The City Council will consider adopting resolutions authorizing the City to enter the Bond Opportunities for Land Development (BOLD) Program, administered by the Calif ornia Municipal Finance Authority (CMFA), and the Statewide Community Infrastructure Program (SCIP), administered by the California Statewide Communities Development Authority (CSCDA).
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATIONS:
1. Adopt a Resolution authorizing the use of the Bond Opportunities for Land Development (BOLD) program and authorizing the California Municipal Finance Authority to accept applications from property owners, conduct proceedings and levy special taxes within the City of Santa Maria pursuant to the Mello -Roos Community Facilities of 1982, as amended; and authorizing related actions.
2. Adopt a Resolution authorizing the City of Santa Maria to join the Statewide Community Infrastructure Program (SCIP), authorize the California Statewide Communities Development Au thority to accept applications from property owners, conduct special assessment proceedings and levy assessments and special taxes and to form assessment districts and community facilities districts within the territory of the City of Santa Maria; embodyin g a joint community facilities agreement setting forth the terms and conditions of community facilities district financing; approving form of acquisition agreement for use when applicable, and to authorize related actions.
BACKGROUND:
The City Council has identified economic development as a key priority for the City of Santa Maria, with a focus on economic growth, job creation, and providing housing options for local residents. Yet current market conditions, including the effects of inflation 2 as well as high interest rates for construction loans, can present challenges for new development.
Enter the BOLD and SCIP Programs. Offered by the California Municipal Finance Authority and the California Statewide Communities Development Authority, respectively, these programs equip the City and developers alike with a new resource to finance public infrastructure required for new development within the City at no cost to the City itself.
Financing is provided through tax -exempt municipal bonds, administered ent irely by CMFA and CSCDA. Authorizing use of the BOLD and SCIP Programs will allow greater flexibility for the development community, thus facilitating new development and economic growth, while also lessening the administrative burdens on City staff.
DISCUSSION:
CMFA BOLD Program
The City is a member of the California Municipal Finance Authority (CMFA), a statewide joint powers authority whose members include numerous cities, counties, and other public agencies throughout California. CMFA ’s Bond Opportunities for Land Development (BOLD) Program is specifically designed to help local government municipalities, schools, and land developers work together to cost -effectively fund public infrastructure projects and development fees. The program recognizes that new development often challenges local government agencies ’ ability to provide infrastructure and schools, since new development triggers the need to construct, acquire, or otherwise provide additional public facilities to accommodate growth.
Under the BOLD Program, bonds are issued by Community Facilities Districts (CFDs) formed by CMFA under the Mello -Roos Community Facilities Act of 1982. The Mello - Roos Act offers great financing flexibility and is commonly used by cities, schools, and other local agencies throughout California to generate funds for the payment of public facilities, including development fees for facilities. CFDs can also be structured to pay for maintenance of public facilities and other service costs that benefit the City o f Santa Maria.
The BOLD program represents a cost -effective form of land -secured financing that directly supports Santa Maria ’s economic development objectives. The more cost - effective a bond financing structure is, the greater overall public benefit it yields because more proceeds are available for the acquisition of public infrastructure that supports community growth. The development community has expressed a desire for the City to adopt and implement the BOLD Program, demonstrating strong private sector support for this pro-business initiative.
The program requires minimal City involvement while providing maximum benefit to Santa Maria’s development climate. Although CFDs would be formed within the City ’s jurisdiction, the City Council is only required to adopt a resolution approving participation in the BOLD Program. Thereafter, CMFA will work with staff to ensure that the program is meeting Santa Maria’s specific objectives. CMFA and its consultant team will form and 3 approve each CFD, issue bonds on b ehalf of the CFD, and levy and collect the special taxes each year. This streamlined approach allows City staff to focus on other critical aspects of facilitating land development projects rather than bond administration.
The program maintains strict credi t criteria to ensure successful financing outcomes.
Projects must meet a minimum four -to-one value -to-debt ratio, have no discretionary approvals required for build-out, possess necessary entitlements for the bonded phase, and have completed or imminent fi nancing plans for backbone infrastructure. Credit criteria are reviewed on a case -by-case basis to ensure reasonable interest rates at issuance, and similar credits can be pooled together into single bond issues to maximize cost-effectiveness.
Administration of all aspects of the BOLD Program is handled by CMFA without cost to or burden on the City. City staff time can and will be reimbursed by participating developers upfront and by CMFA once bonds are issued. Additionally, CMFA shares a portion of its is suance fees directly with member communities and makes grants to the California Foundation for Stronger Communities to fund charities designated by member communities. This revenue-sharing approach provides direct financial benefits to Santa Maria while su pporting the community development goals that align with the City Council’s vision.
CSCDA SCIP Program
The California Statewide Communities Development Authority (CSCDA) is a joint powers authority sponsored by the League of California Cities and the Cali fornia State Association of Counties. The City is among 530 cities, counties, and special districts throughout California that are members of CSCDA. The Statewide Community Infrastructure Program (SCIP) was instituted by CSCDA in 2002 to allow property owners in participating cities and counties to finance development-related fees through a pooled special assessment districts program. Since its inception, SCIP has issued over $1 billion in land-secured special assessment and CFD bonds for development projects throughout California, establishing a proven track record that supports Santa Maria ’s economic development goals.
SCIP has expanded significantly from its original scope to include financing of public capital improvements directly in addition to fees, and has been further expanded to include community facilities districts and options to finance public services for stand-alone bond issues. This flexibility makes SCIP particularly valuable for supporting diverse development projects that contribute to Santa Maria’s economic growth and complement the City Council’s business-friendly policies.
When property owners apply to participate in SCIP and the Agency approves the application, selected public capital improvements, facilities, and development -related fees owed to the Agency will be financed through bond issuance by CSCDA. Property owners can work with the Agency and SCIP team to have CSCDA form either an assessment district or a community facilities district based on project needs. CSCDA determines whether projects will be included in the pooled program, where no developer 4 is responsible for payment related to any other project, or implemented as stand -alone financing depending on projected bond sizing and other factors.
The program provides significant advantages to property owners that make development more attractive in Santa Maria. Property owners receive low -cost, long-term tax-exempt financing instead of paying cash for improvements and fees, which frees up capital for other development purposes. P roperty owners can choose to pay off assessments or special taxes at any time, providing flexibility that appeals to the development community.
For homebuyers, paying for infrastructure costs through assessment or special tax financing is typically superio r to having those costs included in home prices because it results in smaller mortgage amounts that make qualification easier.
SCIP offers particular benefits for Santa Maria’s economic development strategy because it makes tax -exempt financing accessible to smaller projects that would not otherwise qualify. Projects as small as $500,000 can access financing that would not be economical on a stand -alone basis, opening development opportunities for local and regional developers who contribute to Santa Maria’s diverse economic base.
The program provides substantial operational benefits that align with the City Council ’s efficiency objectives. The Agency faces no liability to repay bonds issued by CSCDA or the assessments or special taxes imposed on participa ting properties. CSCDA handles all district formation, district administration, bond issuance, and bond administration functions, allowing the City to provide tax -exempt financing to property owners while committing virtually no staff time to program admin istration. This efficient approach enables staff to focus on core municipal services while still supporting robust economic development.
SCIP enhances Santa Maria ’s competitive position in attracting new development by helping cushion the impact of rising public capital improvement costs and development - related fees on new projects. Many developers rely on assessment district or CFD financing through SCIP when making land purchase decisions, giving Santa Maria a competitive advantage in the regional develo pment market. The availability of financing encourages developers to pull permits and pay fees in larger blocks, providing the City with immediate access to revenues for public infrastructure rather than receiving incremental payments over extended periods.
Benefits to the City of Santa Maria
Both financing programs provide significant advantages that directly support Santa Maria’s economic development goals and the City Council ’s commitment to maintaining a business-friendly environment. The City faces no financial risk under either program because the City is not liable for bond repayment, with all obligations secured by assessments or special taxes on participating properties. Both programs require minimal City administration since external agencies hand le all district formation, bond issuance, and ongoing administration with minimal staff time commitment.
5 These financing tools enable development projects that might otherwise be financially infeasible, expanding the range of development opportunities ava ilable in Santa Maria.
They provide immediate revenue access through upfront payment of fees rather than extended payment schedules, improving the City ’s cash flow for infrastructure investments. The availability of tax -exempt financing creates a competiti ve advantage that attracts development to Santa Maria rather than competing jurisdictions, directly supporting the City Council’s economic development objectives.
Alternative(s)
The City Council may decide not to authorize the BOLD and SCIP Programs, which would prevent the development community from using these tools to aid in financing new projects.
Fiscal Considerations
None. All costs and expenses related to the formation, issuance of bonds and ongoing administration for any CFD or assessment dist rict formed under the BOLD or SCIP program is the responsibility of CMFA or CSCDA, respectively, and there is no liability or fiscal impact on the City. The City can be reimbursed for staff time expended on the program.
Conversely, to the extent that these programs facilitate and/or expedite new development that would be impractical in the absence of these financing tools, BOLD and SCIP will aid in generating new property and sales tax revenue to the City.
Impact to the Community
The adoption of the SCIP and BOLD Programs will create two new resources to aid in the City of Santa Maria’s efforts to grow the local economy and facilitate new development, thus providing new amenities for local residents at no cost to the City.
ATTACHMENT(S)
A. Resolution – BOLD Program
B. Resolution – SCIP
C. Form of Resolution of Intention to Be Adopted by CSCDA D. Form of Acquisition Agreement
E. Eligible Facilities and Fees
F. Eligible Services
G. Certificate of Resolution