DEPARTMENT’S RESPONSIBILITIES - 6886
The 6886 Illustration for this section summarizes key department responsibilities when obtaining long-term financing for projects. For a more complete discussion, refer to Section 6871 for general obligation bonds, Section 6872 for lease-revenue bonds, Section 6873 for JPA lease-revenue bonds, Section 6876 for financing leases and operating leases used as security for vendor debt issuances, and Section 6884 on continuing disclosure.
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Department Key Responsibilities Related to Financing (DGS may handle certain tasks if managing the project) |
GO Bond Type of Projects |
PWB Lease- Revenue Type of Project |
JPA Lease- Revenue Type of Project |
Financing Lease Type of Project |
Securitized Operating Lease/ Contract Type of Project |
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Explain project requirements; determine which other responsibilities DGS will handle |
Yes |
Yes |
Yes |
Yes |
|
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Notify Finance and STO, at least eight months in advance— preferably one year—of any pending project outside the normal budget process which may require the services of STO as agent for sale or continuing disclosure agent. Meet as necessary with STO to clarify agent-for-sale role. Make no commitments to local government entities or private vendors regarding financing structure, timing, teams, or use of state credit until concurrence is received from STO. Meet Finance requirements for economic analysis. |
NA |
NA |
Yes |
Yes |
|
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Provide cash flow, project status, and other relevant project information to Finance and STO when requested to support bond sales. |
Yes |
Yes |
Yes |
Yes |
See Sec 6876 |
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Projections of cash flow needs for design and construction |
|
|
|
|
|
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Make projection |
Yes |
Yes |
Yes |
No |
No |
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Review vendor projections |
NA |
NA |
NA |
Yes |
See Sec 6876 |
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Submit all required information to issuer on a timely basis for authorizing resolutions for bond sales and interim financing. |
Yes |
Yes |
Yes |
See Sec 6876 |
No |
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Submit requests for interim financing (commercial paper) to PMIB or other provider of interim financing |
Yes |
Yes |
Yes |
No |
No |
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Participate in pre-sale meetings, including document review and due diligence; provide information necessary to meet initial and continuing disclosure requirements. |
Yes |
Yes |
Yes |
Yes |
See Sec 6876 |
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Ensure that the issuer understands: STO’s roles and responsibilities when agent for sale; time-frames for bond sales scheduling and other preparation activities; any required. Finance reviews for economic viability; any required lease notifications to the Legislature. |
NA |
NA |
Yes* |
Yes* |
See Sec 6876 |
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Stay within available funds; inform Finance and STO immediately of any material threat to project progress or budget which may affect completion within available funds. |
Yes |
Yes |
Yes |
Yes |
No |
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Send STO and issuer Project Closure Memo when project is done. |
Yes |
Yes |
Yes |
Yes |
See Sec 6876 |
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Obtain liability and rental interruption insurance for project. |
NA |
Yes |
Yes |
Yes |
No |
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Set up accounting and budgetary records for payment of debt service. |
No |
Yes |
Yes |
Sec 6876 |
No |
|
Refer bondholder questions to STO; do not communicate confidential information. |
Yes |
Yes |
Yes |
Yes |
See Sec 6876 |
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Obtain Finance and STO concurrence on use of any potential surplus or excess bond funds. |
Maybe |
Yes |
Yes |
Yes |
See Sec 6876 |
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Repay interim financing from support appropriation if project is not completed. |
No |
If required |
Not usually |
No |
No |
Revisions
No Revisions for this item.