Case Studies

The CSDA Finance Corporation has assisted special districts of all types with funding for mission-critical property acquisition, construction, equipment purchases, and more.

Desert Recreation District

2025 Grant Anticipation Note: $5,000,000

The Thermal Community Park represents the first public recreational space for Thermal, California. The 10-acre, $10.3 million project is funded through state and local grants, including $4.5 million from California State Parks and $4.5 million in ARPA funds. However, the reimbursement-based grants created a cash flow gap between construction payments and grant receipts.

To alleviate this cash-flow deficit, CSDAFC consultants worked with the Desert Recreation District (the “District”) to structure a tax-exempt Grant Anticipation Note (“GAN”). This GAN allowed the district to borrow approximately $5 million at a 4.71% interest rate, backed by the pledge of anticipated grant receipts. This creative funding solution kept the project on schedule, ensuring the Thermal community would receive its long-awaited park.

South Tahoe Public Utility District

2025 Wastewater Revenue Certificates of Participation (“COPs”): $18,955,000
2025 Water Revenue Certificates of Participation (“COPs”): $14,250,000

In the Spring of 2024, the South Tahoe Public Utility District (the “District”) identified a number of capital improvement projects in need of financing for both its Water and Wastewater Systems. The combined total cost of $36 million included $16 million for the Water System and $20 million for the Wastewater System. Unable to qualify for a State Revolving Fund Loan, the District decided to issue public debt in the form of Revenue Certificates of Participation (“COPs”) for each enterprise.

Due to the legal structure of the COPs, a counterparty was needed, and CSDAFC was asked to serve in this role. Oppenheimer & Co. Inc., a consultant to CSDAFC, was hired by the District to serve as underwriter. After the legal documents were drafted and the preliminary financing structure finalized, the materials were presented to the District Board on December 5, 2024, where the financing was approved. With Board approval in hand, a credit package was compiled and submitted to S&P Rating Agency, highlighting the recently adopted water and wastewater rate increases, the financial health of the enterprise systems, and a permanent stream of tax revenues. Upon review, an AA rating was assigned to the Water Revenue COPs and an AA rating to the Wastewater Revenue COPs. With the ratings assigned, the Preliminary Official Statement was completed, and the marketing process for the COPs was initiated by Oppenheimer. Both issues of COPs were priced and sold to the public market on January 15, 2025, and closed on January 30, 2025.

Heritage Ranch Community Services District

2026 Installment Purchase Contract (USDA Interim Financing): $22,647,000

Heritage Ranch CSD (“HRCSD”) has a State mandated Water Resource Recovery Facility Project (the “Project”), which includes required upgrades to the existing wastewater treatment plant. Due to the expansive scope of the Project, HRCSD performed a rate study, implemented rate increases, and researched low-cost financing options.

HRCSD partnered with the United States Department of Agriculture (“USDA”) to secure long-term financing (40 years) at below market interest rates. USDA provided their Letter of Conditions (“LOC”) which outlined all necessary steps to secure the financing. One necessity was for HRCSD to secure interim financing to pay for construction of the Project prior to USDA providing long-term takeout financing. HRCSD and their finance team distributed a Request for Proposals to 17 banks to provide the interim financing.

HRCSD received an excellent proposal which included a drawdown loan structure, where interest payments would be based only on the amount drawn to date, not the full borrowing amount. The interim financing closed in January of 2026.

Truckee Tahoe Airport District

2025 Installment Sale Agreement: $5,588,000

Truckee Tahoe Airport District (“TTAD”) recently sought options to finance needed improvements to Apron A2, such as new pavement and general upgrades.

After consultation with the CSDAFC financing team, TTAD elected to utilize a direct placement method of sale whereby they would enter into an Installment Sale Agreement with CSDAFC as the counterparty to facilitate the transaction. TTAD and the financing team distributed a Request for Proposals (“RFP”) to a wide variety of banks to solicit bids for both a 15-year and 20-year term. Eight bids were received, and TTAD selected a bank with a competitive 15-year interest rate and extremely flexible prepayment provisions. In addition, the bank allowed for a drawdown schedule of the project fund, further lowering borrowing costs.