Staff Report of the Week: Modesto Resolves Support For AB2131 and PACE Programs

Each week, Louis Dettorre will provide the PublicCEO Staff Report of the Week. Nominate yourself or a colleague by e-mailing ldettorre@publicCEO.com This e-mail address is being Protected from spambots. You need JavaScript enabled to view it.

Mayor Garrad Marsh of Modesto submitted an agenda report urging council support of AB2131. Assembly Member Kristen Olsen (25^th District) and State Senator Anthony Cannella (12^th District) are the sponsors of this legislation that would authorize the legislative body of a city, county, or city and county to invest up to five percent of their aggregate investment funds into property assessed clean energy bonds (PACE) or local eligible projects. Click here to view the council report.

The council report states that finance staff consulted with an outside group to determine the fiscal impact of this legislation. They concluded that there is a potential for a higher yield on investment returns, however it is possible that the securities will be illiquid. With the potential of a higher return rate comes more risk due to the limited number of buyers. Currently, Modesto states that the primary interest they have received thus far is from a limited number of mortgage bankers familiar with the system.  Click here to read AB2131 as introduced on February 23.

Greg Nyhoff, City Manager is listed as the contact.

Each week, Louis Dettorre will provide the PublicCEO Staff Report of the Week. Nominate yourself or a colleague by e-mailing ldettorre@publicCEO.com This e-mail address is being Protected from spambots. You need JavaScript enabled to view it.