Yorba Linda City Council forms new Financing Authority, naming themselves as members

Yorba Linda's City Council members have added a new hat to their current collection of head-gear that involve their roles in municipal governance and financing city improvement projects.

Already, in addition to council duties, members function as the Successor Agency to the Redevelopment Agency and as directors of the Yorba Linda Housing Authority. They also were directors of the Yorba Linda Public Financing Authority until late last month.

That's when the Public Financing Authority was replaced by a new Yorba Linda Municipal Financing Authority for which bylaws and a conflict of interest code were adopted earlier this month.

The Municipal Financing Authority is a joint powers arrangement with the city and the Housing Authority “to assist the city with financing and refinancing city capital improvements,” Yorba Linda's Finance Director Scott Catlett reported to council members.

The old Public Financing Authority, created in 1989, was a joint powers arrangement with the city and the Successor Agency formed for the same purpose as the new Municipal Financing Authority.

A little background: The city's Redevelopment Agency, dissolved under a state mandate in 2012, began life in 1983 with a project area of 2,640 acres, including Savi Ranch and other property to the eastern city limits, including land now occupied by Hidden Hills homes.

The original project area was amended in 1990 to add 328 acres that included Old Town, as well as properties along and adjacent to the northern portion of Imperial Highway.

During the agency's peak years, annual income was in the $20 million range, garnered from the increase in property taxes collected within project areas due to the new development. Funds were spent on infrastructure, public facilities and affordable housing ventures for properties within or associated with so-called “blighted” areas.

With the demise of the Redevelopment Agency, the state allowed council members to act as a Successor Agency to wind down affairs dealing with bonds and other assorted payments. An Oversight Board aided the council with the legal requirements involved in the shut-down.

Since there is no Public Financing Authority debt outstanding and the end of Successor Agency duties is in sight, the new Municipal Financing Authority will allow the city a method to issue future certificates of participation, lease revenue bonds and tax allocation bonds.

The Oversight Board is slated to disband next month, with duties assumed by a county-wide panel. Only five of seven seats are currently filled: Council members Gene Hernandez and Tom Lindsey, city employee Pam Stoker, schools executive Dave Giordano and resident Steve Stowell.

During the 29-year existence of the Redevelopment Agency, council members received a modest $30 per-meeting stipend for sessions mostly held in conjunction with council meetings. No extra pay is planned for the new financing authority meetings.