SR 06:128 - Laserfiche WebLink

Mr. David Culver April 10, 2006 Page 2 districts have entered into a joint exercise of powers agreement (the "Agreement") pursuant to which CSCDA was organized. The City is currently a Program Participant and has adopted the required 'Joining resolution" and a copy of the executed Agreement should be in your City Clerk's files. There are no dues or other membership requirements on the part of the City (other than to adopt the 'Joining resolution" and execute the Agreernent). Currently, over 450 cities, counties, districts or agencies of some type are Program Participants of CSCDA. CSCDA is authorized by its Agreernent to issue bonds, notes, other evidences of indebtedness or certificates of participation in leases or other agreements in order to promote economic development, including the provision and maintenance of multifarnily housing or for the benefit of organizations described under Section 50l(c)(3) of the Internal Revenue Code of 1986. However, under the terms of the Agreement, CSCDA may not approve the Financing unless the governing body of the Prograrn Participant in whose jurisdiction the project is located (or to be located) approves the project and the Financing. Furthermore, Section l47(t) of the Internal Revenue Code of 1986 requires that the proposed Financing be approved by a governmental unit having jurisdiction over the area in which the facility to be financed is located. The Financing will be treated as having been approved by a governmental unit if "the applicable elected representative" of such governmental unit approves such issue after a public hearing following reasonable public notice of such hearing. The foregoing will be deemed satisfied if the governing body of the Program Participant (J) holds a public hearing (upon at least 14 days prior notice published in a newspaper of general circulation within its jurisdiction), and (2) adopts the TEFRA Resolution approving the financing to be undertaken through CSCDA. It is customary that Bond Counsel, together with CSCDA staff, draft the required resolution for the City Council to consider, assist with publication of the required notice of public hearing, and, upon your request, have a representative present at the public hearing to answer questions posed by the public or City Council relating to the Financing. Thereafter, pursuant to applicable state law, the bonds are issued as limited obligations of CSCDA, not of the City, payable solely out of the revenues and receipts derived from the loan made by CSCDA to the Borrower with the proceeds of the bonds. Specifically, Section 8 of the Agreement provides that "[t]he Bonds, together with the interest and premium, if any, thereon, shall not be deemed to constitute a debt of any Program Participant... or pledge of the faith and credit of the Program Participants....the Program DOCSSCl:36766t.t