City Council and Concurrent Authorities
August 18, 2026

OF STOCKTONCity Council MeetingAugust 18, 2026Agenda Item 9.1

CITY OF

STOCKTON
City Council Meeting
August 18, 2026
Agenda Item 9.1
BOLD Program

The BOLD Program
What is the BOLD Program and why is it being offered?
The BOLD Program
What is the BOLD Program and why is it being offered?
 Bond Opportunities for Land Development (BOLD) is a financing program offered by the California Municipal Financing Authority (CMFA) that allows for the financing of public infrastructure and impact fees for development projects.
 Any public agency can participate in the BOLD program, which offers low- cost, tax-exempt financing for development projects.
 To facilitate the program, Community Facilities Districts (CFDs) will be formed, managed and administered by CMFA, and minimal public agency efforts will be required in the process. The formation of a CFD will not necessitate the issuance of bonds or payment of debt service until a project is ready to issue debt.
 A CFD may be formed for a project with bonds issued at a later time when it best meets the project’s development timeline.
 Bonds will be issued at multiple times throughout the year and may include more than one CFD, offering the advantage and option of low-cost, pooled financing.

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The BOLD Program
Community Facilities District Basics
The BOLD Program
Community Facilities District Basics
Under the BOLD Program, CMFA will create Community Facility Districts to finance eligible improvements and local agency fees.

Eligible improvements are extremely flexible and include:
 Streets and Sidewalks
 Sewer and Water Treatment Capacity
 Water and Sewer Lines
 Flood Control
 Parks
 Open Space
 Street Lighting
 School Facilities
Additionally, the BOLD Program allows for the financing of fees, including:
 City, County or District Fees (may require agreement)  School Fees (requires an agreement with the school
district)
 Special District (requires agreement)
The BOLD Program also allows for the ongoing funding
of services.

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The BOLD Program
The BOLD Program
Local Agency Requirements and Benefits
 A Local Agency is required to become a Member of CMFA (CMFA Membership is free)  Local Agency may have a consultant review the financing plan to ensure that it meets with the Local Agency’s Goals and Policies
 The Local Agency adopts a Resolution consenting to use BOLD (Sample Resolutions are available from Jones Hall)  Jones Hall will approve the eligibility of improvements and fees based on consultation with Local Agency  An acquisition agreement will be executed between the Local Agency and CMFA to reimburse the developer for public improvements and/or fees
 The Local Agency will accept completed improvements and/or fees, and requisition of funds 1  Outsourcing of the CFD and formation
and bond issuance process
 Limited local agency participation
2  No cost to join the program and any
administrative costs that are borne by
the local agency are reimbursed
3  Tax bills reflect CMFA and not the local
agency name
4  No ongoing continuing disclosure
requirement (unlike if local agency
issued bonds)
 Local Agency Council actions limited to
Joining CMFA, joining BOLD and
approving acquisition agreement
 Bond documents and actions all
undertaken by CMFA
5 6
7  Provides funding source for new public
improvements and impact fees
8 9
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 BOLD team conducts detailed review
of Developer payment requests and
administers disbursement of CFD
bond proceeds upon obtaining local
agency approvals
 In the case of default no liability to the
local agency
The BOLD Program
Minimum Requirements to Participate:

The BOLD Program
Minimum Requirements to Participate:
 Minimum size of $500,000
 Required deposit to pay for
formation of the CFD
 While a CFD can be formed, bond
issuance will typically need to
meet the following conditions:
 Project must have all discretionary
development entitlements
 Tax burden (including all other taxes)
cannot exceed 2% of the estimated
value of the home
 Value of the property must be at least 4
times the bond lien and other
overlapping debt
 Project must meet the goals and
policies of the local jurisdiction
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 Local Agency agrees to
approve the project’s
participation in BOLD
 Local Agency does not
issue debt or provide
ongoing administration
and continuing
disclosure documents
 BOLD team works with applicant
and local agencies to determine
which facilities and impact fees are
eligible to be funded with tax-
exempt bond proceeds or, if
needed, taxable bonds
 Tax-exemption - Fees must be
used on eligible capital projects
and be expended within 3 years
The BOLD Program
CFD Formation Steps
The BOLD Program
CFD Formation Steps
 Developer submits
application for their project to
participate in BOLD
 An Application for the
program is available as a
PDF document that can be
filled out and submitted to
CMFA online.

Developer provides deposit to CMFA to pay for formation of the CFD Special tax consultant drafts the Rate and Method of Apportionment and prepares CFD boundary map CFDs are established by CMFA and special taxes are billed in CMFA’s name Formation proceedings are conducted by CMFA
Public hearing and landowner vote are conducted by CMFA CFDs can be formed in as little as 3 months
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The BOLD Program
Bond Issuance Steps
The BOLD Program
Bond Issuance Steps
 Once the CFD is
formed and special
tax is authorized to
be levied, Bonds can
be issued
 Bonds can be issued
shortly after CFD
formation or after an
extended period of
time depending on
needs of project and
status of
development
 Bonds for larger
CFDs may be issued
on a stand-alone
basis
 Most smaller
CFDs (in terms
of units and amount
borrowed) will be
issued as part of a
Pooled Bond
Funding Program –
bonds for multiple
CFDs issued through
a single bond issue
 CMFA authorizes the
sale of the bonds and
issues bonds upon
request
 CMFA approves
Bond and disclosure
documents
 Bonds are marketed
and sold to investors
by Piper Sandler
 Financing is closed
and funds are
delivered to pay
infrastructure costs
and impact fees
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The BOLD Program
The BOLD Program
Summary
 BOLD has been underway for 8 years
 Cost-effective and timely alternative to provide CFD financing for smaller projects  Flexibility on special tax rates and structure; no benefit finding required  Ability to fund school fees
 Multiple local governments throughout California have approved the use of BOLD.  Understanding of impact fees that can and cannot be funded with tax-exempt bond proceeds – streamlining the application approval process
 Through June 2026:
 80 local agencies have approved the use of BOLD Program  120 Community Facilities Districts throughout the State have been formed under the Program  $702 million in bonds have been issued for 70+ separate projects, financing improvements for a total of 12,000+ housing units.
− 22 Pooled Financings
− 25 Standalone Financings
 In 2026:
 4 local agencies have approved the use of BOLD Program  11 CFDs formed and 8 CFDs under formation
 7 Additional Bond Financings expected to be priced in 2026 - 3 Pooled and 4 Standalone financings
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The BOLD Program
The BOLD Program
Recommendation
 Staff recommends the City Council approve the resolution:

Authorizing use of the Bond Opportunities for Land Development Program and authorizing the California Municipal Finance Authority to accept applications from property owners, conduct proceedings and levy special taxes within the City of Stockton pursuant to the Mello-Roos Community Facilities Act of 1982, as amended; and authorizing related actions.

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