1. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 1 EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask EVERYTHING YOU WANTED TO KNOW ABOUT SPECIAL ASSESSMENTS AND TAXES IN 2015 BUT WERE AFRAID TO ASK By Tim Seufert

2. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 2  Primer on Special Financing Districts-SFD: Special Assessments and Taxes  Sample current reporting requirements  AB 2109 new reporting requirements  Q&A AGENDA ITEMS 2

3. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 3 “A man’s ignorance sometimes is not only beautiful, but useful – while his knowledge, so called, is oftentimes worse than useful, besides being ugly... SOME PERSPECTIVE 3

4. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 4 Which is the best man to deal with -- he who knows nothing about a subject, and, what is extremely rare, knows that he knows nothing, or he who really knows something about it, but thinks he knows it all? “ - Henry David Thoreau SOME PERSPECTIVE 4

5. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 5 EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask THE PRIMER ON SPECIAL FINANCING DISTRICTS (SFD) 5

6. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 6 WHAT ARE SFD’S?  Parcel taxes  CFDs  Special Assessments  Property-related Fees 6

7. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 7 LEGISLATIVE AND LEGAL UPDATE / TRENDS  2/3 approval for parcel taxes and CFDs  Note: CFD Shapiro San Diego case…  Special Assessments still viable  Property-related Fees  All the buzz about EIFD, or TIF? 7

8. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 8 SPECIAL FINANCING DISTRICTS – SPECIAL ASSESSMENTS AND TAXES  Courts looking over our shoulders…  Best practices for assessment engineering  Be creative and selective in feasibility analysis… 8

9. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 9 SPECIAL FINANCING DISTRICTS – SPECIAL ASSESSMENTS AND TAXES  Pay as you go?  Leverage infrastructure with debt? 9

10. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 10 SPECIAL FINANCING DISTRICTS – SPECIAL ASSESSMENTS AND TAXES Forms of Debt  Municipal bonds  Bank loans  State Revolving Fund (SRF)  i-Bank  City/County funds  Other/private placement 10

11. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 11 SPECIAL ASSESSMENT – CASE STUDY: BURLINGAME – DOWNTOWN IMPROVEMENTS  Downtown Burlingame Avenue years of deterioration  Funding challenges  Disparate interests coalesce

12. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 12 SPECIAL TAX / CFD – CASE STUDY: PACHECO VALLE / CITY OF NOVATO  Community led effort  CFD tax on area parcels  95% voter approval

13. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 13 PARCEL TAXES: SANTA CLARA VALLEY WATER DISTRICT, MARIN EMERGENCY RADIO AUTHORITY, GREATER VALLEJO RECREATION DISTRICT  Focused needs  EXTENSIVE outreach was key

14. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 14 REPORTING REQUIREMENTS: TODAY  R&T Code 163 for Assessments: parcel number, original assessment and current principal balance to the County Assessor  CDIAC Reporting for Bonded CFD’s – Government Code §53359.5(b) and §53359.5(c)  SB 165/Government Code 50075.1 – Enacted after January 2001require “annual report”  Plus existing SCO reporting…??? 14

15. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 15 REPORTING REQUIREMENTS: TOMORROW? AB 2109: Who, what, when?  Who? Each County, City, and Special District. (School Districts?)  With a “parcel tax?” Includes CFD’s? 15

16. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 16 AB 2109 DRAFT SCO DECISION TREE: AB 2109 DRAFT SCO DECISION TREE: 16

17. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 17 AB 2109: AB 2109: What? 1. “Type” and “Rate” of parcel tax 2. Number of parcels subject/Number exempt 3. Sunset date of tax, if any 4. Amount of revenue received 5. Manner in which revenue used 17

18. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 18 AB 2109: AB 2109: When? 2015? Or so? 18

19. EVERYTHING You Wanted to know about SFD’s But Were Afraid to Ask 19 ADDITIONAL RESOURCES  League Municipal Revenue Handbook  NBS Rate/Fee Compendium Compendium  NBS SFD Primer  League/CSDA Prop 218 Guides  Guide To Local Government Finance in California  The Simpsons!  Etc. 19