Best Best & Krieger News Feed

Ensuring the Financial Health of Your Utility After California's Historic Drought

12 Jan 2017 00:00:00 -0800

As agencies recover from a period of reduced water sales revenues as a result of California's historic drought, several questions remain as to what to expect going forward.

RFC is offering this workshop to help California utilities learn how to develop sustainable financial plans and prepare for California's next drought. Come learn from industry experts:

How to generate sufficient revenue with uncertain sales projections.
A step-by-step approach to developing defensible, cost of service-based rates.
How to be financially prepared for California's next drought.

This session will feature BB&K Partner Kelly Salt, one of California's most well-known authorities on ratemaking law. Kelly works with public agencies on bond and municipal finance matters, rate setting and compliance with Propositions 218 and 26, and drought management and water conservation programs.

REGISTRATION
$40 early-bird, $50 general admission (early-bird ends October 28).

Click Here to Register
Date: Thursday, Jan. 12
Time: 9:30 a.m. - 3:30 p.m.
Location: East Bay Municipal Utility District, 375 11th Street, Oakland, CA 94607
Room: Large Training Room
This session is limited to the first 35 registrants. Ticket sales will end Thursday, Jan. 5.

Hillsborough Residents File Suit Over Water Rates

02 Dec 2016 00:00:00 -0800

Best Best & Krieger LLP Partner Kelly Salt, who represents the City of Hillsborough, Calif., discussed with reporters a lawsuit filed over water rates. A group of wealthy residents claim the rates and laws intended to encourage water conservation are illegal. In interviews, Kelly said the rates comply with state law.

“The rates are structured to recover the costs of providing more water to those who demand more water,” she told the East Bay Times. “Do they incidentally encourage people to conserve? Yes. They send a price signal.”

Read the entire story, originally posted Nov. 30, 2016 in the East Bay Times, by clicking here.

2016 Municipal Finance Institute

30 Nov 2016 00:00:00 -0800

Join Best Best & Krieger LLP at the League of California Cities 2016 Municipal Finance Institute in Monterey, Calif.

BB&K Speakers:

William Priest and Sigrid Asmundson
“Show Me the Money! – Enhanced Revenue Options for Cities”
Various revenue enhancement options available to cities will be addressed. Hear a discussion of the legal procedures for adopting new or increased general and special taxes, special benefit property assessments and fees under applicable law (such as Proposition 218 and AB 1600). Current issues surrounding certain revenue sources, such as transient occupancy/hotel and utility user’s taxes in the “Internet world,” as well as recent decisions concerning water, sewer and other utility rates will be covered. Additionally, learn about the rules governing permissible versus impermissible use of public funds to inform the public and encourage voter participation.
Wednesday, Nov. 30
10:30 - 11:15 a.m.

When
Wednesday, Nov. 30 - Thursday, Dec. 1

Where
Monterey Marriott
350 Calle Principal
Monterey, CA 93940

For more information and to register, click here.

Drought Policies, Price of Water Lands in Court

17 Nov 2016 00:00:00 -0800

A group of Hillsborough residents is suing the town over water rate hikes during the drought. Best Best & Krieger LLP attorney Kimberley Hood, representing the town, told the San Mateo Daily Journal: “I think agencies are trying to do the best they can to recoup their costs of service while complying with Prop. 218 and also trying to deal with an unprecedented period of drought.”

“The goal is just to make sure that you’re covering your cost of service and it’s always been clear since Prop. 218 that you can’t be making a profit,” she said. “But the courts have allowed some flexibility in how they [cover costs].”

Click here to read the entire article, which originally appeared in the San Mateo Daily Journal on Nov. 16, 2016.

New Laws of 2017 Series Part I: Parcel Taxes and Property Related Fees

08 Nov 2016 00:00:00 -0800

This article leads off a series of e-News articles focusing on new laws that will impact special districts. Assembly Bill 2476 and Assembly Bill 2801 were signed into law on Sept. 9 and Aug. 30, respectively. Beginning Jan. 1, these two bills will create new procedural and record-keeping requirements for special districts when levying parcel taxes or property-related fees.

Click here to read, “New Laws of 2017 Series Part I: Parcel Taxes and Property Related Fees,” by Best Best & Krieger LLP attorney Lutfi Kharuf.

Intro Property Assessed Clean Energy (PACE) Finance Course

02 Nov 2016 00:00:00 -0800

Best Best & Krieger LLP Of Counsel Mrunal Shah will speak on "PACE Financing Options" at the Council of Development Finance Agencies' Intro Property Assessed Clean Energy (PACE) Finance Course.

There are a number of capitalization options for the initial investments into a PACE district, including bonds, grants, loans, and more. This session will explore the many starting funds that can be used, as well as focusing on the process of issuing PACE bonds.

When
Wednesday, Nov. 2
11 a.m. - Noon

Where
Astor Crowne Plaza - New Orleans French Quarter
739 Canal St.
New Orleans, LA 70130

For more information or to register, click here.

In Yorba Linda, the Race for Water District Board is Getting Ugly

26 Oct 2016 00:00:00 -0800

With drought being the catalyst for a Yorba Linda Water District’s Board of Directors heated election and recall election, Best Best & Krieger LLP Partner Kelly Salt discussed how conservation measures can cause anger and confusion — leading to such clashes.

"You know, people don't really understand how they get their water," Kelly told KPCC. "They turn on the tap and it magically appears."

Kelly said that lots of water districts in California are watching Yorba Linda closely – the results from the recall election could affect how other boards set their rates in the future.

"I think for a lot of agencies, it's been a very difficult time," said Salt. "They have so many of their costs, which are fixed. At the same time, they're encouraging their customers to conserve or use water efficiently."

Click here to listen to the whole story, originally published on Oct. 26, 2016, on KPCC.

Financing Increased Demand On Pre-Existing Services Constitutes “Additional Services”

24 Oct 2016 00:00:00 -0800

Community Facilities Districts formed by a landowner vote may be used to finance increased demand on pre-existing services, a California Appellate Court has held. Further, a CFD tax is a special tax and may finance multiple municipal services, so long as the revenue raised is not available for general governmental purposes. This decision reaffirms the flexibility and versatility of CFDs under the Mello-Roos Community Facilities Act of 1982 to fund services, and may be applied more broadly when distinguishing special taxes from general taxes in other contexts.

In Building Industry Association of the Bay Area v. City of San Ramon, a developer sought approval from the City of San Ramon to develop a 48-unit townhouse project. After conducting a study that showed the cost of providing services to the new development would exceed the revenue generated by the project, the City conditioned its approval of the project on the developer providing a funding mechanism to cover the difference. The developer petitioned the City to form a CFD for this purpose. A CFD was formed by a landowner vote (in which the developer was the only landowner), and the City authorized the revenue raised by the CFD to be used for multiple services authorized under the Act. The Building Industry Association of the Bay Area challenged the validity of the tax on the following grounds: 1.) the tax does not provide for “additional services,” 2.) the tax is an unconstitutional general tax and 3.) the City’s ordinance authorizing the tax is unconstitutional because it retaliates against property owners by providing that the City will cease to provide the tax-funded services in the CFD if the CFD property owners repeal the tax in the future.

Government Code section 53313 authorizes CFDs to be formed by landowner vote to finance numerous municipal services if the services are in addition to those already provided in the CFD before formation, and do not replace pre-existing services. BIA argued that the CFD does not provide for “additional services” because it “pays for increased quantities of existing services to meet increased demand.” The court disagreed, stating that pre-existing service levels would be insufficient to meet increased demand in the CFD without an additional cost. The CFD would thus finance services supplementary to, and not in replacement of, pre-existing services. The court further clarified that landowner-approved CFD taxes may be used to satisfy an increased demand for existing services. Further, the Act does not require such a CFD to provide its property owners services that are superior to services in areas not subject to the tax.

BIA also argued that, because the CFD finances “a widely disparate menu of services and facilities” and its purpose is to raise revenue to supplement the City’s general fund, it is a general tax that the CFD is not authorized to levy. Article XIIIC, section 1 of the California Constitution defines a general tax as “any tax imposed for general governmental purposes,” and a special tax as “any tax imposed for specific purposes, including a tax imposed for specific purposes, which is placed into a general fund.” The court disagreed, finding that, so long as the tax is restricted to specific enumerated purposes — even if such purposes are “a widely disparate menu of services” — the CFD tax will not be characterized as a general tax.

Finally, the court rejected BIA’s claim that the ordinance authorizing the CFD tax was unconstitutional because it retaliates against property owners in the CFD if they repeal the tax. The court found that it is not a violation of due process for the ordinance to recognize that if a tax has been imposed to provide additional services and facilities to a CFD, and if that tax is repealed and not collected, there will no longer be funds to provide properties in the CFD with those additional services and facilities, and any obligations that have been incurred to provide those services and facilities will need to be met from other sources.

If you have any questions about this opinion or how it may impact your agency, please contact the attorney authors of this Legal Alert listed to the right in the firm’s Special Districts or Public Finance practice groups, or your BB&K attorney.

Please feel free to share this Legal Alert or subscribe by clicking here. Follow us on Twitter @BBKlaw.

Disclaimer: BB&K legal alerts are not intended as legal advice. Additional facts or future developments may affect subjects contained herein. Seek the advice of an attorney before acting or relying upon any information in this communiqué.

California Special Districts Association

10 Oct 2016 00:00:00 -0800

Join Best Best & Krieger LLP at the 2016 California Special Districts Association Annual Conference in San Diego, Calif.

BB&K Speakers:

Kelly Salt
"Come Hell or High Water: Funding Conservation, Flood Control, and Stormwater"
This presentation will address potential solutions to structuring tiered water rates in light of recent court decisions; and options for funding discounts for low income water, sewer, and solid waste service customers, and stormwater and flood control services.
Tuesday, Oct. 11
2 – 3:15 p.m.

Isabel Safie and Katrina Veldkamp
"Navigating the CalPERS Audit"
This presentation will discuss the most common compliance issues that lead to an audit finding and how an agency can address those issues to minimize the impact of an audit. In addition, we’ll discuss the risk factors that make an agency more likely than not to be selected for a CalPERS audit. Finally, we’ll walk you through the audit process and discuss the purpose and target of each phase of an audit.
Wednesday, Oct. 12
2:15 – 3:30 p.m.

Michelle Ouellette and Jennifer Lynch
"CEQA: What Special Districts Need to Know in 2016 and Beyond"
Special district actions must comply with fast-changing CEQA law. This panel addresses recent legislation and litigation, and will touch upon GHGs, AB 52, special events, water issues, and much more.
Thursday, Oct. 13
8:30 - 10 a.m.

When
Monday, Oct. 10 - Wednesday, Oct. 13

Where
San Diego Hotel and Marina
1380 Harbor Island Dr.
San Diego, CA 92101

For more information or to register, click here.

Ensuring the Financial Health of Your Utility After California's Historic Drought

06 Oct 2016 00:00:00 -0800

As agencies recover from a period of reduced water sales revenues as a result of California's historic drought, several questions remain as to what to expect going forward.

RFC is offering workshops to help California utilities learn how to develop sustainable financial plans and prepare for California's next drought. Come learn from industry experts:

How to generate sufficient revenue with uncertain sales projections.
A step-by-step approach to developing defensible, cost of service-based rates.
How to be financially prepared for California's next drought.

These sessions will feature BB&K Partner Kelly Salt, one of California's most well-known authorities on ratemaking law. Kelly works with public agencies on bond and municipal finance matters, rate setting and compliance with Propositions 218 and 26, and drought management and water conservation programs.

REGISTRATION
$40 early-bird, $50 general admission (early-bird ends September 23 for San Diego, and October 28 for Oakland).
Attendees can choose to attend one of the following sessions being offered. Please select the appropriate location/date below to register.

Click Here to Register for San Diego Workshop
Date: Thursday, Oct. 6
Time: 9:30 a.m. - 3:30 p.m.
Location: Vallecitos Water District, 201 Vallecitos de Oro, San Marcos, CA 92069
Room: Training Room
This session is limited to the first 30 registrants. Ticket sales will end Monday, Oct. 3.

Click Here to Register for Oakland Workshop
Date: Thursday, Jan. 12
Time: 9:30 a.m. - 3:30 p.m.
Location: East Bay Municipal Utility District, 375 11th Street, Oakland, CA 94607
Room: Large Training Room
This session is limited to the first 35 registrants. Ticket sales will end Thursday, Jan. 5.