Ongoing Reporting
Continuing Disclosure
Most issuers of municipal bonds must disclose and provide information which will enable investors to make informed decisions regarding their investments.
Since the adoption of Rule 15c2-12 by the Securities Exchange Commission (SEC) to increase reliability of disseminated information, several amendments have been made which now include continuing disclosure (disclosure and operating information filed annually) and the disclosure of material events.
As a continuing disclosure agent K&G Public Finance will provide the necessary services to satisfy the requirements of disclosure obligations and as stipulated in the Continuing Disclosure Agreement and other related bond documents.
CDIAC debt issuance reporting
California government code prescribes that certain information be reported to the California Debt and Investment Advisory Commission (CDIAC) annually regarding public debt issued by state and local government agencies, and mandates additional reporting requirements specific to debt issuances for Mello-Roos Community Facilities Districts.
Furthermore, agencies throughout the year must report any draws upon the reserve fund in order to service debt and/or interest payments, and especially any defaults on payments.
K&G Public Finance offers years of experience in post-issuance compliance, and has presented at annual workshops hosted by CDIAC.
1. Yearly Fiscal Status ReportsCalifornia Gov. Code § 53359.5
Pursuant to the amended Mello-Roos Community Facilities Act of 1982, agencies that have issued Community Facilities District bonds after January 1, 1993 must file a report with CDIAC by October 30th of every year until the bond issuance is retired.
2. Annual Debt Transparency ReportCalifornia Gov. Code § 8855 (k)
All municipal agencies that have issued public debt on or after January 21, 2017 must comply with additional reporting requirements mandated by Senate Bill 1029. Annual reports must be filed with CDIAC within six months of the end of every fiscal year until the bond issuance is retired.
3. Marks-Roos Yearly Fiscal Status Report for Authority IssueCalifornia Gov. Code § 6599.1
Pursuant to the amended Marks-Roos Local Bond Pooling Act of 1985, agencies that have issued bonds after January 1, 1996, for which proceeds go to acquire one or more local obligations or transfers funds to a local obligor, must file a report with CDIAC by October 30th of every year until the bond issuance is retired.
Special Tax and Bond Accountability Reporting
The Local Agency Special Tax and Bond Accountability Act (Accountability Act) was enacted by California State Legislature through Senate Bill 165 to provide accountability measures for any local special tax and/or bond measure subject to voter approval on or after January 1, 2001.
According to the requirements of the Accountability Act (Sections 50075.1 and 53410 of the Government Code of the State of California), an annual report must be filed by the local agency levying a special tax and/or issuing a bond measure on or before each January 1 and shall contain a description of the following:
- The amount of funds collected and expended to fund authorized facilities and services in the previous fiscal year.
- The status of any project required or authorized to be funded by the special tax and/or bond measure.
K&G Public Finance prepares the necessary reporting in compliance with the Accountability Act.