Pleasanton Parks and Recreation Master Plan

5-3 Pleasanton Parks and Recreation Master Plan Section Five – Funding and Implementation Recommendations 2014 of park bonds. The issuer is authorized by the vote of a two‐thirds majority of the electorate to levy an ad valorem tax on all taxable property within its jurisdiction at whatever rate is required to service the debt. Because of the high level of security, these bonds command the lowest interest rate. This type of financing requires strong community support and involves much time and effort to study community attitudes and promote acceptance in order to be successful b. Revenue Bonds ‐ These bonds are secured by a pledge of revenues from a tax or non‐tax source such as assessments or fees. Because the revenue from a particular facility is the only security, these bonds usually carry a higher interest rate than general obligation bonds. The direct issuance of revenue bonds without the formation of a funding district, as described in more detail below, may not be feasible for park and recreation purposes due to limited income streams from these types of activities. However, revenue bonds have been used to partially fund such development as an aquatic facility where a feasibility study verified the revenue generating capacity of the development 6. Redevelopment Agency Funding ‐ Redevelopment Agency tax increment revenues are in some cases used to finance development of park and recreation facilities. These revenues are derived from new development which creates tax increment that can be pledged to support bond financing. Recently the State of California has acted to usurp these funds to meet statewide budget deficits, thereby putting a stop to local municipality expenditure of RDA funds on local projects and elimination of over 400 local City Redevelopment Agencies. 7. Certificates of Participation ‐ This is a form of lease purchase agreement that does not constitute indebtedness under the State constitutional debt limit and does not require voter approval. In a typical case, a local government entity decides to acquire a new or renovated public facility. This facility is purchased or constructed by a vendor corporation and the local government signs a lease agreement with the corporation to use the facility. An underwriting firm then buys the lease obligation from the vendor corporation and divides it into small units called “C.O.P.’s”. Each C.O.P. represents a share of the lease payment revenue stream. The underwriter then places the C.O.P. issue with a bank which, in turn, sells the certificates to individual investors. The local government makes the lease payments to the bank which makes payments to the certificate holders. At the end of the lease period, title to the facility passes to the local government entity at nominal cost. Interest paid the certificate holders is tax exempt. 8. Fund‐Raising Events ‐ (concerts, raffles, etc.) While these are not a major source of funds, such events could contribute to an overall effort toward capital funding for a specific facility. Funds raised from such events could be channeled through a non‐profit foundation as described above. Sources of Operation and Maintenance Funds 1. User Fees ‐ Such fees provide some contribution toward maintenance, but are not sufficient to provide any capital funds. It is strongly recommended that the City examine the current fee structure and make adjustments so that the fees collected are in line with the costs of maintenance and operation of the facilities and/or programs for which the fees are levied. Some of the sources of such fees include: a. Participation fees for classes and special programs