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Frequently
Asked Questions
How do I apply for financing? To participate in the Program, please complete and submit the simple Application. Once approved, we will also request you complete the disclosure questionnaire. Who is the CSCDA? California Statewide Communities Development Authority is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. It is the 4th largest issuer of municipal bonds in the country. Who has participated in previous California Water and Wastewater Pools? To date, forty-five (45) California cities and special districts have participated in the 74 loans CSCDA Water and Wastewater Pooled Revenue Bond program. (click here for link to Map) If we use the CSCDA Pool, are we in any way liable for the payments or defaults of other participants? Absolutely not. Each borrower has a separate, stand-alone installment purchase contract with CSCDA. If one participant were to default, there would be no effect on the other participants or the AAA rating of the pool. There is no cross collateralization of payments or reserve funds. Do we need to get voter approval to issue debt through the CSCDA Pool? No. Generally, the borrowing can be authorized by a resolution of the participant's governing body. What is the security for the Bonds? The Bonds are revenue bonds secured by a pledge of enterprise revenues. Specifically, the bonds are secured by each participant pledging to maintain adequate net revenues (revenues less operating and maintenance costs) over the term of the Bonds. Usually, net revenues of at least 1.2 times the annual debt service are required. This is a standard method of securing enterprise revenue bonds. What can be financed through the Pool? Capital improvements and any refinancing of existing revenue-supported debt to water and wastewater systems. How long do we have to spend the Bond proceeds? Participants will be advised as to IRS regulations regarding spending the bond proceeds. Generally, you must expect to spend bond proceeds within three years. Are there any general credit requirements for joining the CSCDA Pool? Generally, each Participant in the CSCDA Pool should have: - A customer base of at least 1000 hook-ups - Diversified customer base - Issue size of at least $1,000,000. Is there a reserve requirement? Yes. But instead of cash funding (10% of the bond issue), our program offers a substitution of the reserve fund with a surely bond policy, if desirable. How long will it take to close our loan? Typically, the bond proceeds will be received within 45 - 90 days from submitting the application. However, for past participants, the proceeds can be obtained in less than 30 days, if desirable. What are your current interest rates? Rates will vary based on the term of the loan and current market conditions. For current rates, click here. Our bonds will receive a "AAA" insured bond rating. For more information, contact us. What is the maximum term of the loan? Generally up to 30 years, depending on the expected life of the project being financed. Longer terms may be possible in certain cases. What would my annual payment be? Click here to find out. |
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