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Board approves financing authority formation and a $90 million cap for possible tax-exempt borrowing
Summary
Directors voted to authorize a joint powers agreement to create a public financing authority and adopted a related resolution identifying a maximum $90,000,000 amount for potential tax-exempt obligations; staff said the figure is a ceiling estimate tied to reconstruction of identified projects and does not require issuing debt to that level.
Ken Boyd, director of strategic affairs, told the board the proposed public financing authority would be created by a joint exercise of powers agreement (JPA) to allow the district flexibility to issue tax-exempt bonds for water infrastructure projects while preserving the district's debt capacity.
Boyd said section 4(c) of the documents preserves separation of powers so that the district and Placer County would not be bound by the authority's actions. He also said the board of supervisors will consider a related item on Sept. 23 and that state filings are required to formally create the authority.
The board considered and approved resolution 25-21 to allow execution of the JPA. Boyd then presented a companion resolution (25-22) identifying a maximum amount of $90,000,000 as the cap for tax-exempt obligations, which he described as an estimate tied to reconstructing Tahoe, Cedars and Madden rather than an obligation to borrow that sum. The board voted to adopt the resolutions; the motion carried unanimously.
Sean Barclay seconded the motion on the JPA after a board member moved to adopt. Boyd reiterated that the $90,000,000 figure is a maximum and that no debt issuance is required to that level; additional approvals and filings will follow before any bonds are issued.
