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THE CITY OF 8 elm CITY COUNCIL AGENDA REPORT 8 pL£ASANTONo October 20, 2009 Finance TITLE: ADOPTION OF A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AND SALE AGREEMENT PERTAINING TO THE PROPOSITION 1A SECURITIZATION PROGRAM SUMMARY The California State budget includes a provision allowing the State to borrow 8% of the amount of property tax revenue apportioned to cities, counties and special districts. For Pleasanton, the amount of revenues borrowed is estimated at $4,428,208 which otherwise would be appropriated to the City General Fund. In accordance with the conditions of the borrowing under Proposition 1A, the State will be required to repay these funds by June 30, 2013. A State budget provision also includes an option allowing local governments to participate in a program whereby they would receive an amount equal to the funds borrowed through proceeds from a bond issuance by the California Statewide Communities Development Authority (CSCDA). In return for these funds, the local agencies would pledge the State's repayment obligation to CSCDA. It is anticipated that 50% of the bond proceeds would be issued to cities in January 2010 and the remaining 50% in March 2010. To participate in the CSCDA program, which is referred to as the CSCDA Proposition 1A Securitization Program, the City Council is required to adopt the attached resolution and authorize the City Manager to execute the related documents attached to the resolution. As of October 7, there were a total of 1,025 local agencies enrolled in this program comprised of 330 cities, 56 counties, and 639 special districts. Based on staff analysis, it is recommended Pleasanton participate in the program. RECOMMENDATION Adopt the attached resolution (Attachment 1) and authorize the City Manager to execute related documents allowing Pleasanton to participate in the CSCDA Proposition 1A Securitization Program. FINANCIAL STATEMENT The Proposition 1A Securitization Program is voluntary and participants will bear none of the costs of issuance as all transaction costs of issuance and interest will be paid by the State of California. Participating local agencies will have no obligation on the bonds and no credit exposure to the State.