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CC:PFA - ACTION ITEM: (1) Culver City Public Finance Authority Board Adoption of a Resolution Confirming the Board of Directors; Establishing Dates, Time and Place of its Regular Meetings; and Adopting a Conflict of Interest Code; (2) Culver City Public Finance Authority Board and City Council Consideration of the Uses for the Bond Proceeds Resulting from Bond Issuance Which may Be Issued for an Amount Not to Exceed $48,000,000, of Which the City Manager is Recommending a Total of $39,420,000 (Net Proceeds of $36,900,000) be Issued; (3) City Council Direction to the City Manager to Incorporate These Bond Proceed Uses in the Proposed Culver City Fiscal Year 2026-2027 Budget; and (4) Other Direction to the City Manager/Executive Director as Deemed Appropriate.
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Meeting Date: April 27, 2026
Contact Person/Dept: Stephen Agostini/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (Email) Meetings and Agendas - City Council (04/23/2026); (Email) Ongoing Topics - Fiscal and Budget Issues (04/23/2026)
Department Approval: Stephen Agostini, Chief Financial Officer (04/23/2026)
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RECOMMENDATION
Staff recommends:
1. The Culver City Public Finance Authority (PFA) Board adopt a Resolution confirming the Board of Directors; establishing the dates, time and place of regular meetings; and adopting a Conflict of Interest Code.
2. The PFA Board and City Council consider the recommended uses of bond proceeds which may be issued for an amount not to exceed $48,000,000 of which the City Manager is recommending a total of $39,420,000 (net proceeds of $36,900,000) be issued.
3. The City Council direct the City Manager to incorporate those uses in the Proposed Budget for Fiscal Year 2026-2027.
BACKGROUND
On February 14, 2026, the City Council held a day-long Special Strategic Planning Meeting and Financial Summit. As part of the discussion, the Facilitator Gorman Partners LLC, facilitated a discussion with City Council on strategic priorities and key indicators. In addition, the City Manager, along with representatives from Orrick, provided a high-level overview of the process to form a Joint Exercise of Powers Authority (JPA) and how the City could establish the JPA to issue lease revenue bonds using one or more of the City’s or Parking Authority’s parking structures as the leased asset.
On April 13, 2026, the City Council authorized the execution of a joint exercise of powers agreement between the City and the Culver City Housing Authority establishing the Culver City Public Finance Authority (PFA) for the purpose of, including but not limited to, assisting in the financing and refinancing of certain capital improvements, working capital, and other eligible purposes under the JPA Agreement and authorizing law.
The proposed debt would generate both taxable and tax-exempt bond proceeds. The taxable proceeds are proposed to reimburse the City for its loan to the Jubilo Village project, fund other affordable housing initiatives, pay certain administrative expenses, and provide financial assistance to the School District. The tax-exempt proceeds are proposed to fund capital projects that would benefit the City. The proposed uses of the tax-exempt bond proceeds are subject to ongoing review by tax counsel.
During the April 13, 2026 City Council meeting, the City Manager stated his intent to return to the City Council with a more detailed recommendation for the use of these proceeds so that Council could affirm or adjust the use of these proceeds to conform with their stated priorities. Staff is returning with a proposal for the use of these proceeds and recommends consideration of the proposed uses as detailed below.
DISCUSSION
PFA (Authority) Initial Meeting
At this first regular meeting of the Board of Directors of the Authority, the Board should adopt a resolution which:
a. Confirms the following positions to serve on the Board of Directors of this newly established JPA:
Board of Director Role Position
Chair of the Authority Mayor
Vice Chair of the Authority Vice Mayor
Executive Director City Manager
Treasurer Chief Financial Officer
Secretary City Manager
General Counsel City Attorney
Secretary of the Board City Clerk
b. Establishes that regular meetings of the Authority shall be held during regular City Council meetings.
c. Adopts the Conflict of Interest Code of the City of Culver City as the Conflict of Interest Code of the Authority. The Board members and Authority officers shall report financial interests according to the disclosure categories for their respective positions pursuant to the disclosure categories stated in the Conflict of Interest Code.
d. Directs the Treasurer to perform and file with the Secretary an audit as required by Section 6505 of the Government Code of the State of California.
City Council Strategic Priorities
The February 2026 Strategic Planning Retreat brought together the City Council and executive leadership for a full-day session designed to establish shared priorities, strengthen alignment, and create a clear framework for decision-making in the year ahead. At this retreat the Council reaffirmed the importance of long-term financial sustainability, investment in public infrastructure and community spaces, and strengthening overall affordability and housing and homelessness services.
Use of Proceeds
To enact initiatives that will provide meaningful progress toward realizing these priorities, the City Manager has proposed a range of investments utilizing bond proceeds from the Culver City PFA planned issuance of bonds. The Bonds are proposed to be issued to finance and refinance (a) costs of the design, engineering, construction, and improvement of Jubilo Village, the Ballona Creek Affordable Housing Initiative, 11029 Washington Blvd site and/or other affordable housing projects, (b) financial assistance for the Culver City Unified School District, (c) costs of infrastructure improvements including the design, engineering and construction of City sidewalks, alleys, streets and improvements to City capital facilities and infrastructure within the right of way which could include curbs, gutters, tree canopy, and landscaping, (d) recreational improvements such as Bill Botts Field, and other City park facilities; and (e) capitalized interest with respect to the Bonds, administrative expenses and costs of issuance of the Bonds, all to be further specified in public deliberations and delineated in the City’s operating budget for Fiscal Year 2026-2027 (together, the “Project”). The preliminary financing schedule is included with this report as Attachment 2. The accompanying table provides the recommended uses of bond proceeds for each of these items.
PFA Issuance of Bonds
To generate these proceeds, the PFA will need to complete the issuance and sale of bonds through the direct purchase approach described to City Council in the April 13, 2026, staff report creating the PFA.
Debt Service Payments
PFM, the City’s financial advisor, has modeled annual debt service payments based on the size of the issuance, the split between taxable uses and tax-exempt uses, current market conditions, and the inclusion of one year of capitalized interest and debt issuance costs. If the PFA proceeds with an issuance of $39,420,000, which is reflective of the uses described above, PFM estimates that annual debt service will be approximately $2,650,000.
FISCAL ANALYSIS
The costs associated with the issuance of the Lease Revenue Bonds, including the fees for Orrick, PFM, and Barclays, can be paid from bond proceeds as part of the costs of issuance. However, if the City does not move forward with the bond issuance, the City will not be responsible for paying the amount of the fees incurred. If the Lease Revenue Bonds are sold, the City will be required to make lease payments from the City's General Fund (Fund 101). The amount of the City's lease payments used to pay debt service on the Lease Revenue Bonds and the timing of the initial payment will depend on the principal amount of Lease Revenue Bonds sold and the terms of the related agreements.
There is no direct financial or budget impact to the Authority or the City by adopting the proposed PFA resolution.
ATTACHMENTS
1. 2026-04-27_ATT_1_Public Finance Authority Resolution Confirming Board, Establishing Meeting Dates and Adopting COI Code
2. 2026-04-27_ATT 2_Preliminary Financing Schedule for Lease Revenue Bonds
recommended action
MOTIONS
That the City Council:
1. Consider the uses of bond proceeds resulting from the issuance of debt by the Public Finance Authority in the amount $39,420,000 (net proceeds of $36,900,000);
2. Direct the City Manager to incorporate the uses of bond proceeds in the proposed Culver City Fiscal Year 2026-2027 Budget; and
3. Provide other direction to the City Manager as deemed appropriate.
That the Public Finance Authority (PFA) Board:
1. Adopt a Resolution confirming the Board, establishing meeting dates, and adopting a Conflict of Interest Code;
2. Consider the uses of bond proceeds resulting from the issuance of debt by the PFA in the amount $39,420,000 (net proceeds of $36,900,000); and
3. Provide other direction to the Executive Director as deemed appropriate.