Special District Administration Services
In its efforts to be a full-service provider, SDFA assists its administration clients in all aspects of special district management. We currently utilize our "in-house" special district software (SDSoft) to process, calculate, apportion, update and generate all special taxes and assessments to be applied to the secured rolls of the various counties in California. Special tax formulae and methods of assessment for these districts require that tax and assessment calculations be able to differentiate on land use (residential and commercial), development status (improved vs. unimproved), dwelling type and size, gross and net acreage, development date, zoning and benefit factors (e.g., equivalent dwelling units). Our modeling system allows us to allocate special assessments and taxes based on any combination of taxing requirements. In many instances, the special tax formulae dictate that taxes shall be allocated on a priority or incremental basis, depending upon the aggregate tax requirement. In all of these situations, SDFA has experience in both the creation and administration of such districts.
Annual Disclosure Services
For the past fifteen years, ongoing disclosure obligations for tax-exempt financings have required that issuers provide, an annual disclosure report containg updated "financial and opertaing data" to allow investors to ascertain the relative security of the debt on an ongoing basis. The annual reports typically include the Consolidated Annual Financial Report (CAFR) of the issuer as well as additional quantitative information typically set forth in the offical staatement for the bonds. Periodic notices, referred to as Notices of Material Events must also be prepared and disseminated to the bond market whenever certain events occur which may affect the value of the bonds. On behalf of its clients, SDFA has prepared and disseminated both the reports annual and periodic notices and as also made such filings available to the public on its website at SDFA.com. Additionally, for land-secured debt issues such as Mello-Roos Bonds, periodic filings of information regarding major taxpayers, also referred to as "significant obligors" are also required and SDFA has assisted in both the preparation and dissemination of these reports as well.
Special District Financing and Administration performs arbitrage rebate calculations for its administrative clients. These issues include special tax revenue bonds, assessment and reassessment financings, certificates of participation, consolidated refundings and public financing authority issues. SDFA utilizes its "SDArb" arbitrage rebate program to calculate rebate and verify yield and maturity calculations.
School Facilities Needs Analysis (SFNA)
On November 3, 1998, Proposition 1A ("SB-50"), a $9.2 billion school facilities bond, a portion of which relates to grade K-12 school facilities, was before the voters. SB-50 is designated as the Class Size Reduction Kindergarten-University Public Education Facilities Bond Act of 1998. SB-50 represents one of the most significant school facility finance and developer fee reform legislation since 1986. On November 3, 1998, Proposition 1A ("SB-50"), a $9.2 billion school facilities bond, a portion of which relates to grade K-12 school facilities, was before the voters. SB-50 is designated as the Class Size Reduction Kindergarten-University Public Education Facilities Bond Act of 1998. SB-50 represents one of the most significant school facility finance and developer fee reform legislation since 1986.
When Proposition 1A passed in November, the prior State School Building Program was repealed and replaced by the provisions of SB-50. The need for legislation to address the many problems created is agreed upon by many. Until such time as many of the issues surrounding SB-50 are resolved, the preparation and adoption of School Facilities Needs Analyses, will present major challenges to school districts. SDFA has completed and updated , School Facilities Needs Analyses ("SFNA") for several of our school district clients and we have the experience and expertise required to assist districts in the preparation of these reports as well as in the preparation of Developer Fee Justification Reports.
For almost twenty-five years, the firm's principals have been involved in all aspects of special district formation including developer negotiations, conducting workshops and property owner meetings, preparing Engineer's and Special Tax Reports, drafting of special tax formulae, supervising landowner elections, creating boundary map and assessment diagrams, and recording pertinent formation documents.
Continuing Disclosure and Event Notices
Since the amendments to Rule 15c2-12 (the "Rule") were first implemented in July of 1995, SDFA has assisted its clients in both the preparation and dissemination of these reports. In accordance with the Continuing Disclosure Agreements (CDAs), of land-based financings, these reports typically include updated development information, changes in ownership or property values and changes in "significant obligors". In more recent debt transactions, SDFA has been responsible for preparing interim reports which provide investors with updated development information even more frequently than the annual provisions called for by the Rule. For debt issues of our clients in which the trustee or fiscal agent is not named as the Dissemination Agent, SDFA also serves in that capacity.
SDFA has been involved in the prepration and review of feasibility studies, development impact fee (DIF) programs and school facilities master plans for a number of public agencies.