California Debt and Investment Advisory Commission

Alphabetical List of All Publications

A  |  B  |  C  |  D  |  E  |  F  |  G  |  H  |  I  |  J  |  K  |  L  |  M  |  N  |  O  |  P  |  Q  |  R  |  S  |  T  |  U  |  V  |  W  |  X  |  Y  |  Z

A

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B

  • Bond Insurance as a Form of Credit Enhancement in California's Municipal Bond Market
    January 2002 [CDIAC #02-1]
    This report provides a useful resource for first-time or infrequent users of bond insurance by summarizing the players, process, costs, and benefits of this form of credit enhancement. The report also represents a working framework for the bond insurance decision-making process and provides statistics on the bond insurance market.

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C

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D

  • Debt Burdens of California State and Local Governments: Past, Present, and Future
    Robert W. Wassmer, Ph.D. and Ronald C. Fisher, Ph.D., July 2011
    CDIAC commissioned this report by Robert W. Wassmer, Ph.D. and Ronald C. Fisher, Ph.D. to better understand past and present trends of the debt loads of California’s state and local governments, and to analyze how these debt loads compare with government debt loads in other states.
  • Debt Indicators and Criteria for the Assessment of California's Total Outstanding Public Debt
    January 1990
    This report reviews literature surrounding the issue of fiscal indicators for financial and credit analysis, describes a theoretical framework and recommended set of indicators for potential use by the State in assessing the level of total outstanding debt of California state and local governments, and provides a set of recommendations.
  • DEBT LINE
    Monthly Newsletter (1982 to present)
    The legislatively-mandated newsletter provides a calendar listing of all proposed and sold bond issues reported to CDIAC, as required by law, as well as summary tables and articles related to public issuance and the investment of public funds.
  • DEBT LINE Offprints
    Selected articles from CDIAC's monthly newsletter, DEBT LINE, relating to public financing and investment issues. These Offprints were discontinued in 2005, when DEBT LINE went to an electronic format.
  • Disclosure Guidelines For Land-Based Securities
    September 12, 1996 [CDAC #96-6]
    The Guidelines present the disclosure practices recommended for compliance with the Securities and Exchange Commission's amendments to Rule 15c2-12 (adopted in November 1994 by the SEC) for land-based financings. It provides background on land-based financings in California, municipal securities regulation, primary market disclosure and continuing disclosure for land-based securities.
  • Duration Basics
    January 2007 [CDIAC #06-10]
    This Issue Brief provides information on the use of duration as a measure of risk in fixed-income portfolios. It provides an overview of the different types of duration measures and how they are calculated, why duration is an important measure when comparing individual bonds and constructing a portfolio, and the use of convexity in conjunction with duration to provide a more accurate measure of price volatility.

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E

  • Electronic Disclosure Issue Brief
    February 2002 [CDIAC #02-2]
    This Issue Brief summarizes Securities and Exchange Commission disclosure requirements and gives a number of recommendations to consider when implementing electronic disclosure programs.
  • Employing a Debt Management Policy – Practices Among California Local Agencies
    March 2014 [CDIAC #14-02]
    The Government Finance Officers Association (GFOA) recommends that a formal debt management policy, guiding debt issuance, should be a part of local government’s public debt administration. CDIAC conducted an examination of the debt management policies of cities, counties, and school districts and assessed the degree to which the debt policies of the these local issuers conform to GFOA best practices. The report also highlights several well-developed policies through which local agency issuers may gain an understanding of how best practices translate into actual debt policy construction.

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F

  • Financing Solar Energy: Public Financing Options for California’s Local Governments
    October 23, 2009 [CDIAC #09-07]
    As local governments seek ways to finance renewable energy projects, they are using a variety of financing techniques. This resource guide is intended to help governments identify their more robust options for installing solar energy capital.
  • The Fundamentals of Interest Rate Swaps Issue Brief
    October 2004 [CDIAC #04-12]
    This Issue Brief provides basic information regarding the use of interest rate swaps in municipal finance. It reviews data a financial manager would need to know when considering the use of interest rate swaps in the organization's borrowing program.

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G

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H

  • An Historical Review of Local Public Enterprise Revenue Bond Issuance
    December 2012 [CDIAC #12-10]
    This report provides an overview of the sources and uses of public enterprise revenue bond (PERB) issuance in California during a 26-year period (1985-2010). The report presents a history of PERB issuance and examines the issuance by project, region, and municipality.

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I

  • Investing in Callable Securities Issue Brief
    May 2002 [CDIAC #02-3]
    This Issue Brief provides public investment officials with information to assist in the evaluation of callable securities, provides information on the key characteristics of this security, and concludes with recommendations to consider when considering whether or not to invest in callable securities.
  • Investing with a Certificate of Deposit Placement Service
    December 2007 [CDIAC #07-09]
    AB 2011(Chapter 459, Statutes of 2006) authorizes local agencies to use a certificate of deposit (CD) placement service for large deposits. This issue brief outlines provisions of the legislation, provides a description of the existing program, and presents issues to be considered before investing with a CD placement service.
  • Investment Policy Reporting Practices: An Informational Guide
    October 2006 [CDIAC #06-03]
    This Guide provides examples of common investment policy reporting practices from local agencies surveyed, assists in assessing the benefits and risks of an agency’s investment goals and priorities, identifies alternative investment policy reporting practices, and recommends a California local agency model investment policy. The Guide includes an Appendix that gives definitions and recommendations on various investment policy terms and concepts.
  • Investment Portfolio Reporting Practices: An Informational Guide
    October 2004 [CDIAC #04-5]
    This Guide describes the purpose behind local government investment portfolio reporting and the information cities and counties should report to their legislative bodies. It also provides visual and written examples from actual city and county portfolios that summarize agency investment activities. These examples are given to provide local agencies with illustrations of additional information they may wish to include in their reports, to the extent that it assists their legislative bodies in meeting their fiduciary responsibilities.
  • Investments Under Government Code 53601(k) – Focus on Foreign Issuers
    October 2013 [CDIAC #13-08]
    This Issue Brief examines the permissibility of investment by local agencies in foreign issuer medium-term notes under California Government Code 53601(k) with particular emphasis on making a determination whether the issuer is organized, operating, and licensed in the United States.
  • Issue Brief: Green Bonds
    September 2014 [CDIAC #14-09]
    Green Bonds are an emerging class of securities local agencies may be interested in issuing or investing in. This brief provides a short summary of Green Bonds, how they are structured, how they differ from traditional bonds, and whether they are viable debt structures or investment intruments for local governments in California.

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K

  • K-14 Voter Approved General Obligation Bonds: Authorized, but Unissued
    January 2014 [CDIAC #14-10]
    Since 2002, California voters have authorized school and community college districts to issue billions of dollars of general obligation bonds to build and improve school facilities. CDIAC undertook reaserch to cross reference K-14 general obligation bond issuance with the underlying voter approved authority to determine amounts authorized, but unissued.

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L

  • Leases In California: Their Form and Function
    March 1, 1991
    This informational study explains how and why State and local governments in California use tax-exempt leases.
  • Local Agencies Ability to Buy Their Own Debt — A Digest
    May 2013 [CDIAC #13-03]
    This brief reviews state and federal regulations related to local agencies repurchasing or acquiring their own debt as well as outlining several factors local agencies should consider before taking such action.
  • Local Agency Investment Guidelines: Update for 2014
    June 2014 [CDIAC #14-06]
    This document provides references and recommendations (developed by public and private sector professionals) for interpreting and applying California statute to common public fund investment topics related to local agencies. It also provides information on recent state law changes. The 2014 Update reflects statutory changes effective January 1, 2014.

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M

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O

  • OPEBs and GASB 45: A Question and Answer Guide
    December 2006 [CDIAC #06-09]
    This Guide addresses basic questions regarding the fiscal challenges facing many state and local governments in funding and accounting for other post employment benefits (OPEBs). It provides general implementation information on Government Accounting Standards Board Rule 45 (GASB 45) and options for addressing OPEB liabilities. It also contains a list of resources for further information.
  • An Overview of Local Government General Obligation Bond Issuance Trends (1985-2005)
    April 2008 [CDIAC #08-03]
    This issue brief provides an overview of changes in the volume of long-term local government debt issuance from 1985 to 2005 (focusing on GO bonds), discusses the variation in issuance by issuer and purpose, and identifies where the greatest changes have occurred.

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P

  • Preparing Requests for Proposals Issue Brief
    October 1994 [Issue Brief # 3]
    This Issue Brief acquaints public debt issuers with the request for proposal (RFP) process and assists them in developing quality RFPs to procure outside municipal finance services.
  • Principal Protected Notes
    November 2013 [CDIAC #13-10]
    Principal Protected Notes (PPNs) do not meet the requirements of California Government Code, but have been promoted to local agencies as a legal investment alternative providing safety and liquidity with better returns than other medium term notes. This brief provides a description of PPNs, their basic structures, how they work, and why their structures are not allowed under state investment regulations. In addition, the brief offers a discussion of the regulations pertaining to the brokering of PPNs.
  • Privatization vs. Public-Private Partnerships: A Comparative Analysis
    August 2007 [CDIAC #07-04]
    This Issue Brief provides basic information on privatization and public private partnerships to assist public agencies in understanding and evaluating these two financing mechanisms that could be used in the delivery of public projects and/or services. This brief contains examples of both concepts as well as highlights the associated risks and rewards.
  • Public Private Partnerships: A Guide to Selecting a Private Partner
    March 2008 [CDIAC #08-02]
    In a public-private partnership (P3) arrangement, government and private entities share responsibility for project or service delivery. This guide provides suggestions for the type of information that could prove useful to a public agency during the partner selection process including defining potential partners, the selection process, partner selection criteria, and the review of potential partner submissions.
  • Public Works Borrowing by Local Agencies 2001-2011
    August 2012 [CDIAC #12-04]
    Local governments fund a diverse array of public projects used to deliver a wide range of essential public services. This paper provides a general view of public works infrastructure financing used by cities, counties, agencies and special districts in California from 2001 through 2011.

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Q

  • Qualified Zone Academy Bonds (QZABs)
    January 2007 [CDIAC #06-12]
    This Issue Brief provides information on Qualified Zone Academy Bonds (QZABs). It defines QZABs, provides eligibility and qualification information, explains how QZABs work via an example, discusses administrative considerations and financing requirements, and lists allocation results and additional resources available for further information.
  • Questions for Public Agencies Considering Public-Private Partnerships
    August 2008 [CDIAC #08-08]
    This question and answer guide is intended to help local officials evaluate the conditions and structures under which a P3 may be the best choice for project delivery. The guide addresses basic questions a governing board may have regarding the use of a P3, including an agency’s statutory discretion to enter into a partnership, project characteristics that enhance the likelihood of success with a P3, and public policy issues to be considered before approving the use of a P3.

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R

  • Recommended Changes to the Marks-Roos Local Bond Pooling Act of 1985: Report to the Legislature and Governor
    September 1995 [CDAC #95-1]
    The recommendations put forth in this report are intended to curb the potential for abusive Marks-Roos financings in the future, protect the public from unwarranted and unnecessary taxes and assessments, and restore the confidence of investors in this form of infrastructure finance.
  • Recommended Changes to the Mello-Roos Act of 1982: Oral and Written Testimony
    March 1992
    A companion report, Recommended Changes to the Mello-Roos Act of 1982: A Report to the Legislature and Governor, provides background on the Commission’s involvement with the issue of Mello-Roos financing, reviews the testimony presented at a public hearing on the issue conducted in 1992, and gives recommendations on improving the Mello-Roos Act. The report also provides a transcript of the hearing as well as written testimony.
  • Recommended Changes to the Mello-Roos Act of 1982: Report to the Legislature and Governor
    March 1992
    This report provides background on the Commission’s involvement with the issue of Mello-Roos financing, reviews the testimony presented at a public hearing on the issue conducted in 1992, and gives recommendations on improving the Mello-Roos Act. The report also provides a transcript of the hearing as well as written testimony.
  • Recommended Practices for California Redevelopment Agencies
    April 1995 [CDIAC #95-5]
    This report assists redevelopment agencies by providing recommended practices and examples of innovation culled from redevelopment activities throughout California.
  • Recommended Practices in the Appraisal of Real Estate for Land-Secured Financings
    July 2004 [CDIAC #04-06]
    This report makes various recommendations regarding specific practices in the field of appraising real properties securing Mello-Roos or assessment bonds.
  • Reimbursements and Bond Proceeds
    October 2003
    This report seeks to provide information on reimbursement bonds that may guide issuers in the appropriate use of such bonds.
  • Report of the Interagency Municipal Securities Task Force
    June 1998 [CDIAC #98-6]
    This Report reviews the State's approach to the enforcement of its municipal bond laws.
  • Response to Senate Local Government Committee Request for Information Related to Senate Bill 465 (Soto)
    January 2003
    This report summarizes research completed at the request of the Senate Local Government Committee regarding Senate Bill 465 (Soto), a bill that would create a new category of redevelopment project area, among other things. The report responds to a series of questions asked by the Committee related to mixed-use redevelopment projects near transit stations, including details regarding the project area (for example, size, distance from the transit station, debt incurred) and broader questions regarding the impact of current redevelopment law and SB 465 (Soto).
  • A Review of California State and Local Outstanding General Obligation Debt: 1992-93 through 1998-99
    October 2002 [CDIAC #02-5]
    This report reviews state and local general obligation (GO) bonds issued in California from 1992-93 through 1998-99. It also explores the relationship between outstanding GO bonds and prevailing economic and demographic conditions statewide and within various regions of the State.
  • A Review of the Marks-Roos Local Bond Pooling Act of 1985
    September 1998 [CDIAC #98-8]
    This report demystifies the "black box" of Marks-Roos financing by providing a factual basis for understanding the historical development of the Marks-Roos Act, and serving as a reference guide on its practical applications.
  • Rule 144A Securities
    July 2013 [CDIAC #13-05]
    The current low interest rate environment has prompted many local agencies to look for higher investment returns and some have expressed interest in purchasing Rule 144A restricted securities. This brief provides a summary of Rule 144A securities and the rationale for CDIAC’s recommendation to local agencies that they not hold these securities in their investment portfolios.

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S

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T

  • Tobacco Securitization Bond Issuance in California.
    June 2009
    State and local governments receive payments from tobacco companies pursuant to a settlement on tobacco-related health issues. Some California governments have pledged the annual stream of settlement payments to service a bond, a procedure which reduces revenue uncertainty for them. This issue brief summarizes the amount of settlement-secured debt issued in California since 2001.
  • Tools to Revitalize California Communities
    January 2006 [CDIAC #05-10]
    This guide gives local government officials and private parties who are seeking to revitalize their communities the tools that they need to find the appropriate state financing program to assist their situations. It describes select state agency programs that provide community revitalization financing, illustrates real-life examples of how some of these programs have been used, and lists contact information for those interested in pursuing the programs for use in their communities.
  • Twenty Questions for Municipal Interest Rate Swap Issuers
    April 2005 [CDIAC #05-04]
    This report suggests ten questions for bond issuers to ask of other transaction participants, their swap advisors or financial advisors, and the swap counterparty. In addition, the report suggests ten questions for bond issuers to ask themselves before transacting an interest rate swap.

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U

  • Understanding Interest Rate Swap Math and Pricing
    January 2007 [CDIAC #06-11]
    This report provides an overview of interest rate swap math and pricing conventions, including information on the interest rate swap market, the swap dealer’s pricing and sales conventions, relevant indices needed to determine pricing, formulas and examples of pricing, and a review of the variables that have an effect on market and termination pricing of an existing swap.
  • Understanding Public Investment Reporting: A Handbook for Local Elected Officials
    November 2003 [CDIAC #03-02]
    This "quick-reference" Handbook is designed to help elected and appointed local government officials, investment oversight committee members, and the agency's legislative body review and interpret investment reports.
  • Understanding the Underwriting Spread Issue Brief
    March 1993 [Issue Brief # 2]
    This Issue Brief defines, illustrates, and describes how to negotiate an underwriting spread.
  • The Use of General Obligation Bonds by the State of California
    September 9, 1987
    This report examines the use of general obligation bonds by the State of California.
  • The Use of Pool Financing Techniques in California: A Look at Joint Issuance Techniques by Public Agencies
    September 1, 1988
    This report presents an historical summary of local pool financings in the State, a glossary of pool terminology, and a description of the different types of pool financing techniques. In addition, several pool programs that illustrate typical pool structures are profiled.
  • The Use of Redevelopment and Tax Increment Financing by Cities and Counties
    October 1984
    This report summarizes findings and conclusions on the use of redevelopment and tax increment financing by cities and counties. Specifically, it provides information on the total amount of tax allocation bond indebtedness and tax increment revenue outstanding for redevelopment agencies; the amount of tax increment revenue received by California redevelopment agencies for the fiscal year; whether or not the State would assume any liability in the event of a redevelopment agency bond default; and the total number of housing units eliminated and provided as a result of redevelopment activity.
  • The Use of Sweep Accounts by California Local Governments
    July 2008 [CDIAC #08-07]
    A sweep account provides a means for earning interest income on unused cash that otherwise might sit idle in a zero-interest checking account. The decision to use a sweep account comes with many choices. This issue brief addresses: determining the appropriate type of investment, necessary account services, and acceptable operational costs or fees. The issue brief also includes the results of an informal survey of local government sweep account usage.

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