Committee briefed on plan to create Public Financing Authority for water-system financing

The finance committee was briefed on Resolution 25 21, which would authorize a joint exercise of powers agreement with Placer County to create the Tallahassee Public Utilities District Public Financing Authority to support financing for water system reconstruction projects. The presenter told the committee the PFA and a reimbursement resolution are being prepared so the district can pursue bond financing if needed.

"One was the creation of a public financing authority, and the other was a reimbursement resolution," the presenter said, describing the two items staff is preparing for the board. The presenter said the JPA is the mechanism to create the PFA and that the authority would be the formal entity for financing decisions.

Committee members pressed for details on governance and limits of the new entity. The presenter recommended a PFA board that includes members of the TCPED board and identified likely officers by role, saying "the executive director...would be Sean, the treasurer would be Ryan, and the clerk would be Terry." Another member pointed to section 4(c) of the agreement, noting that "neither the authority nor the board of this authority shall have the power or authority to bind the members" to debts, contracts or obligations.

Staff told the committee the reimbursement resolution — which allows the district to reimburse itself for project expenditures if bonds are later issued — was not final for the finance packet but will be included in the full board packet. Committee members directed staff to bring both documents to the full board for consideration and anticipated additional questions at that meeting.