Programs

Financing Programs

Learn more about the financing options offered by the CSDA Finance Corporation. Through our various programs, featuring both private and public placement, we are able to provide affordable financing solutions for capital improvements of all types and sizes.

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We understand that today, more than ever, public agencies are faced with restricted revenues and mandated expenditures. The CSDA Finance Corporation’s expert consultants and numerous financing options help ensure special districts can access the funds necessary to serve their communities.



Certificates of Participation

Benefits of Certificates of Participation (COPs)
  • Tax-Exempt Interest Rate
  • Level Payment Plan
  • Enhanced Revenues
  • Reduced Costs of Issuance
  • Personalized and Responsive Customer Service
Certificates of Participation

Certificates of Participation (COPs) are available to issuers who can benefit from the flexibility and responsiveness of the program for borrowings of sufficient size. CSDA Finance Corporation together with its financial consulting team, raises funds to finance the district's projects through a public offering to investors. In return, those investors receive either a security interest in the asset and a stream of payments (principal repayment at maturity and semi-annual interest), or a first lien and pledge from a certain revenue source and a stream of payments, both mechanisms for which the interest portion is exempt from federal and California income taxation.



Lease-Purchase Financing

Benefits of the Lease Installment Purchase Financing
  • No Upfront Costs or Fees
  • Simplified Documentation
  • Tax-Exempt Interest Rates
  • Flexible Payment Terms
  • Personalized and Responsive Customer Service

Lease-purchase financing is an increasingly important element in the financial management strategies of local governments. Nationwide, the annual dollar volume of lease-purchase obligations has grown from $700 million in 1980 to an estimated $8 billion in 2000. As it has grown, the lease-purchase market has also evolved to address a variety of funding needs and institutional constraints.

Lease purchase financing is essentially a loan with a lease payment schedule. It can be used to purchase equipment such as furniture, fire trucks or computers, or used to fund construction and real property.




Refinance Program

Why Refinance?

The financial markets are ever in flux. Interest rates constantly rise and decline. Similar to refinancing of a home mortgage, refinancing of public debt allows your agency to replace your existing high-interest obligations with low-interest loans currently available in the financial marketplace without increasing your overall debt burden. Now that's budgetary relief you can use!

CSDA Finance Corporation's experienced team of financial experts can help your agency determine if refinancing is right for you. To learn more about refinancing or other financial options available to your agency. 




Financing Counterparty Services

Districts using a COP structure for financing find such structures require use of a “counterparty” which leases or sells back the project to the district. If the district does not have a joint powers authority or an existing non-profit corporation to fill this role, they may be required to form one. There are a number of issues and costs which can be associated with forming such an entity, such as control over the board of directors of a JPA, or the cost of forming and maintaining a non-profit corporation. For example, the non-profit may need to file annual tax returns and pay a minimum corporation tax.

To help districts avoid these problems, the CSDA Finance Corporation, for an economic one-time, upfront fee (usually included in the financing), can serve as counterparty for its members. The ability of the Finance Corporation to schedule meetings quickly, and its counsel's familiarity with COP financings, means minimal impact on a district's financing schedule.

Other Programs
  • General Obligation Bonds
  • Revenue Bonds
  • Land Secured Financing
  • Pension Obligation Bonds
  • Secured Limited Obligation Notes

Other Programs:

  • Water & Sewer Revenue Bonds
  • General Obligation Bonds
  • Assessment District Bonds
  • Mello-Roos Special Tax Bonds
  • Pension Obligation Bonds
  • Counterparty Services