REPORT TO THE CITY COUNCIL
FROM: GEORGEANNE A. WHITE, City Manager
Office of Mayor & City Manager
BY: NICHOLAS D. MASCIA, PE, Assistant City Manager
Office of Mayor & City Manager
SUBJECT
Title
Actions pertaining to the California Municipal Finance Authority (“CMFA”) Bond Opportunities for Land Development (BOLD) Program (Citywide)
1. HEARING to consider the City of Fresno’s (City) participation in the BOLD Program and to receive public comment regarding the proposed financing of public capital improvements and/or development impact fees for new development within the City’s jurisdiction
2. ***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 Fresno pursuant to the Mello-Roos Community Facilities Act of 1982, as amended; and authorizing related actions (Subject to Mayor’s Veto)
Body
RECOMMENDATION
Staff recommends that the City Council consider the City of Fresno’s (City) participation in the BOLD Program and to receive public comment regarding the proposed financing of public capital improvements and/or development impact fees for new development within the City’s jurisdiction and adopt the Resolution authorizing use of the bond opportunities for land development program and authorizing the California Municipal Finance Authority (CMFA) to accept applications from property owners, conduct proceedings and levy special taxes within the City of Fresno pursuant to the Mello-Roos Community Facilities Act of 1982, as amended; and authorizing related actions.
EXECUTIVE SUMMARY
The requested action seeks City Council consideration of the California Municipal Finance Authority’s (CMFA) Bond Opportunities for Land Development (BOLD) Program as a tool to support the financing of public infrastructure required for new development within the City. The BOLD Program, administered by CMFA under the Mello-Roos Community Facilities Act of 1982, enables property owners and developers to access cost-effective, land-secured bond financing for eligible public improvements and development impact fees, with minimal administrative burden on City staff and no financial liability to the City.
By authorizing participation in the BOLD Program, the City would provide the development community with greater flexibility in meeting infrastructure obligations, while ensuring that all projects remain subject to City standards and policies. This approach is intended to facilitate continued economic growth and efficient delivery of public facilities, while maintaining the City’s fiscal integrity and compliance with applicable state law.
BACKGROUND
The California Municipal Finance Authority (CMFA) Bond Opportunities for Land Development (BOLD) Program was established under the Joint Exercise of Powers Act (California Government Code Section 6500 et seq.), and is a statewide joint powers authority with the capacity to issue bonds and implement financing programs on behalf of its member agencies, including the City. The City’s membership in CMFA was previously authorized by Council action in 2007 via resolution 2007-70, enabling participation in a range of economic development and public infrastructure initiatives.
The BOLD Program was developed to address the recognized challenge that new residential and commercial development places significant demands on local infrastructure and public facilities-such as roads, utilities, and schools. Traditional financing methods, including direct municipal bond issuance or developer-funded construction, can be administratively burdensome and may not align with the timing or scale of development activity. The BOLD Program offers an alternative by allowing CMFA to form community facilities districts (CFDs) under the Mello-Roos Community Facilities Act of 1982 (California Government Code Section 53311 et seq.), levy special taxes, and issue bonds to fund eligible public improvements and development impact fees.
Under the BOLD Program, the City's role is limited to initial authorization and project-level oversight, while CMFA and its professional financing team manage CFD formation, bond issuance, and ongoing administration. All program costs are borne by participating developers or CMFA, with no fiscal liability to the City-consistent with the structure used in other CMFA-administered programs in which the City participates. Any agreements executed in connection with the BOLD Program-such as joint community facilities agreements or acquisition agreements-must be reviewed and approved by designated City officials to ensure compliance with City standards and the protection of municipal interests.
Following City Council approval, the City can expect the following to occur. During the entitlement process with the City, a Developer who wishes to participate in the BOLD program submits an application to CMFA for their project. The BOLD team reviews the application and reaches out to the Developer and the City to determine which facilities (public infrastructure) and impact fees that will be financed with CFD bond proceeds. The BOLD team then approves the Developers participation in BOLD, requests an initial deposit from the Developer, and any associated JCFA or acquisition agreements are drawn up and circulated with the Developer and City. Once they are agreed upon, the CMFA will then proceed with the formation of the CFD and authorization of the special tax levy. Once the CFD is formed and special tax is authorized to be levied, bonds can be issued.
A notice stating the date and time of the hearing has been published on the City Clerk’s website and in the Fresno Business Journal with a minimum of five days prior to this scheduled hearing.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, this action does not qualify as a “project”.
LOCAL PREFERENCE
Local preference was not considered because this resolution does not include a bid or award of a construction or service contract.
FISCAL IMPACT
There is no impact to the General Fund. All costs associated with the formation of Community Facilities Districts, issuance of bonds, and ongoing administration under the BOLD Program are the responsibility of the CMFA and/or participating developers, as stipulated in the governing resolution and supporting agreements.
Attachment:
Resolution