Statewide Community Infrastructure Program “SCIP”

- 1 - SCIP Overview Program:Statewide Community Infrastructure Program “SCIP” Purpose:Financing of Development Impact Fees - Building Permit Fee Reimbursement Program - Impact Fee Pre-Funding Program Security:1913/1915 Act Special Assessment Obligations - Established Statewide, County-by-County Finance Team:RBC Dain Rauscher – Bond Underwriter Orrick, Herrington & Sutcliffe – Legal Counsel Bond Logistix – Program Administration MuniFinancial/Willdan – Assessment Engineer Wells Fargo – Trustee

- 2 - Impact Fee Reimbursement Program: Impact Fee Pre-Funding Program: Reimburses property owners for Impact Fees collected when a Building Permit is Issued SCIP Programs Provides advance funding of Impact Fees required as a condition of land entitlements Funded when Tentative Map is approved

- 3 -  Street and Roadways  Freeway Interchanges  Pedestrian Malls  Sidewalks  Storm Drainage  Flood Control  Water Supply  Street Lighting  Parking  Landscaping  Sewer and Pipelines  Parks and Parkways  Bridges and Thoroughfares  Bicycle and Pedestrian Trails  Opens space and Greenbelts - Infrastructure costs to be publicly owned by a governmental agency (except school fees) - Improvements identified in the 1913/1915 Assessment Act, including (but not limited to): Eligible Fees and Improvements

Simple SCIP Applications submitted when Building Permit is issued, together with Building Permit Fee $150 SCIP Application Fee - Building Permit (Impact) Fees Deposited to City’s SCIP Account - City may withdraw funds from SCIP Account immediately /1915 Act Assessment Bonds are issued each year in July Bonds will be issued more frequently depending on program growth - Developer or Property Owner is Reimbursed the SCIP Eligible portion of the Building Permit from Bond Proceeds Impact Fee Reimbursement Program

- 5 - Sample Impact Fee Schedule (Residential) Amount that can be Reimbursed from SCIP

- 6 - Sample Assessment Lien

- 7 - Sample Impact Fee Schedule (Commercial) Amount that can be Reimbursed from SCIP

- 8 - Sample Assessment Lien

- 9 - Impact Fee Pre-Funding Program - Impact Fee Payment is negotiated as a condition of Land Entitlements - SCIP Application Submitted by the Developer/Property Owner at Tentative Map - SCIP Application is more extensive, including MAI appraisal - Qualified Projects must have 3:1 Minimum value to lien ratio requirement /15 Act Assessment Bonds are Issued by CSCDA - Impact Fees funded by the Bonds are deposited directly to City’s SCIP Account - City may withdraw funds from SCIP account at anytime after the bonds are issued

Must be a member of CSCDA Adopt resolution consenting to the use of the SCIP program (contained in SCIP Manual) Submit SCIP Applications - Building Permit Fees go to City’s SCIP Account When tax-exempt bonds are issued, the City executes one bond closing certificate, which confirms that: - the Infrastructure financed through with bond proceeds, is public infrastructure - Property being assessed has valid entitlements - Funds will not be spent in violation of federal tax law Local Agency Requirements

Conducting the Proceedings - SCIP Prepares the Engineer’s Report(s) MuniFinancial/Willdan engaged by CSCDA for the SCIP Program Benefit Findings based on payment of fees for project - Assessment Districts are established by SCIP on County-by-County basis - Assessment Proceedings Conducted by CSCDA - Statewide Hearing and Landowner Vote conducted by CSCDA - CSCDA Authorizes the Sale of Bonds - City or County does not issue Bonds or levy assessments

MuniFinancial/Willdan is the Assessment Administrator for SCIP - Prepares Annual Levy Reports - Submits Annual Levy Reports to each County - Identifies Delinquent Properties - Initiates Foreclosure Proceedings (if necessary) - Apportions Assessments on Subdivided Lots - Administers Prepayments - Prepare Notice of Assessment Assessment Administration

Bond Logistix serves as Program Administrator for SCIP - Establishes a complete accounting system for each City’s Building Permit Fee Program - Allocates Impact Fees received to sub-accounts as required by each city - Provides Monthly Accounting Statements to cities - Manages the Investments Conservative, liquid investment policy Handles all required arbitrage calculations and payments - Prepares continuing financial disclosure (as required) to the purchasers of the Assessment Bonds Program Administration

Credit Requirements - Discretionary development entitlements must be in place - All environmental approvals must be completed - All property must be owned by the SCIP Applicant - Minimum 3:1 value-to-lien ratio including overlapping debt - Assessed value is used for Reimbursement Program - Appraised value is used for Pre-Funding Program - Clean credit and title report - Bond Reserve Fund must be funded at maximum amount allowed (usually about 7.5% of the lien)

Credit Entitlement Requirements High Risk Raw Acreage Does not Qualify $30,000 (Land Costs) General Plan and Zoned Entitlements SCIP Program Amount Invested Lien-to-Value Coverage 2:1 Land Development Stage Moderate Risk Entitled Acreage Final Subdivision Map Impact Fee Prefunding Program (Typical Bond Project) $45,000$60,000 (Land and Offsites)(Onsites) Tentative Map/Development Agreement 3:14:1 Finished LotBuilding Complete BuildingCertificate of PermitOccupancy $90,000$275,000 (Building Permit)(Finished Home) 18:1 (Investment Grade) Safe Impact Fee Reimbursement Program 6:1 Approved