In accordance with AB X4 15, the bill that sets the details for the Prop 1A securitization and payback, the director of the Department of Finance has announced the interest rate for those local agencies that decide not to enroll in the Prop 1A securitization program.
An interest rate of 2 percent has been established for the repayment of Prop 1A borrowables to local governments that do not assign their Prop 1A receivables to California Communities.
Enrollment is now open to any local agency that wishes to participate in the Prop 1A securitization program. Go to the California Communities Web site to enroll now.
The deadline for California Communities to receive your completed application is November 6, 2009, which includes a resolution adopted by your districts’ board in an open and public meeting, so plan accordingly.