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CP Coalition Presentation 09.16.09 The Community Preservation Act Community Preservation Coalition The Community Preservation Coalition Technical assistance • Website • Email newsletter • CPA advocacy and legislation • Regional CPA conferences and training • CPA public relations & promotion • And more… • We are now a membership organization CPA by the numbers (as of Sept 2008) 10,274 acres of open space preserved • Funding for over 2300 housing units • Over 1300 appropriations for historic • resources Over 500 appropriations for recreation • projects Over $700 million dollars! (surcharge + • match)! CPA Challenges Defend the CPA Trust Fund from raids • Defend the Act from proposed legislative • amendments not in the best interest of existing CPA communities Other CPA Bills Filed 2009 Legislative Session HB584HB2896SB104 HB707HB2912SB622 HB709HB2939SB625 HB1062HB3095SB634 HB1228HB3604SB658 HB1984HB3606SB783 HB2762HB3799SB1240 HB2840SB94SB1301 CPA Challenges Trust fund matching dollars • Adoption patterns (lack of cities) • Recreation category • CPA Trust Fund (millions) FY 2009: $54.6 FY 2008: $27.0 FY 2008: $68.1 FY 2007: $31.9 FY 2007: $58.6 FY 2006: $36.1 FY 2006: $46.3 FY 2005: $37.4 FY 2004: $50.5 FY 2005: $31.4 FY 2003: $53.8 FY 2004: $27.2 FY 2002: $41.3 FY 2003: $17.8 Revenue Distributions CPA Trust Fund (millions) RevenueDistributions FY 2002: $41.3FY 2003: $17.8 FY 2003: $53.8FY 2004: $27.2 FY 2004: $50.5FY 2005: $31.4 FY 2005: $37.4FY 2006: $46.3 FY 2006: $36.1FY 2007: $58.6 FY 2007: $31.9FY 2008: $68.1 FY 2008: $27.0FY 2009: $54.6 FY 2009: $21.7 est.FY 2010: Less than $29 What does this mean for Northampton? October 15, 2007 payment:100% October 15, 2008 payment:80% October 15, 2009 payment*:35% * Estimate, based on most recent DOR projections Determining Project Eligibility VERBS It’s all about the ! Open HistoricRecreationHousing Space Acquire YesYesYes Yes Create Yes-YesYes Preserve YesYesYesYes Support ---Yes Yes –if Rehabilitate Yes –if Yes Yes –if acquired or acquired or acquired or and/or created w/CPA created created w/CPA Restore $$ w/CPA $$$$ Solution: SB90 “An Act to Sustain Community Preservation” Three Major Components 1) Increase trust fund revenue to guarantee a 75% match on first round If above happens… 2) More attractive adoption option for cities 3) Clarify recreation language The Revenue Solution: Increase deeds fee to a level that will support a 75% match on the first round distribution from the CPA Trust Fund The City Solution: Allow communities to adopt at a minimum of 1%, and then transfer other municipal revenue to their CPA fund in order to reach the maximum 3% Determining Project Eligibility VERBS It’s all about the ! Open HistoricRecreationHousing Space Acquire YesYesYes Yes Create Yes-YesYes Preserve YesYesYesYes Support ---Yes Rehabilitate Yes –if YesYes Yes –if acquired or acquired or and/or created created w/CPA Restore w/CPA $$$$ Progress and Next Steps 83 Sponsors! Sen. Rosenberg on the list! Rep. Kocoton the list! Assigned to Committee on Community Development and Small Business Hearing on 9-29-09 For more information : www.communitypreservation.org Community Preservation Coalition Borrowing Permitted under CPA General obligation bonds against your • future CPA revenue stream Can only bond against local surcharge, • not state match Two-thirds vote needed to pass bonded • projects at Town Meeting Determine Your Bonding Capacity Work with municipal officials to • determine what you can afford to buy Prepare a “CPA Bonding Capacity” • spreadsheet to guide your future planning Update it every year • Once you have a bond… CPC recommends annual debt service • payment each year as part of your CPA budget City Council can decide to fund an • annual payment from another source other than CPA It DOES NOT work in reverse! You • cannot use CPA funds to pay a bond authorized under another funding source Once you have a bond… If more than 10% of your annual • revenue, bond payment counts as your 10% requirement for that category Sample Annual CPA Budget $100,000 total CPA revenue Historic Reserve:$10,000 Housing Reserve:$10,000 Debt Service for O.S. parcel:$15,000* Administrative Acct:$ 5,000 Budgeted Reserve:$60,000 $100,000 * Counts as you 10% Open Space Requirement What happens if city revokes CPA or reduces surcharge? 1)Pay the bond from another funding source (Ha, Ha, Ha…Ho, Ho, Ho…Hee, Hee, Hee!) 2) Keep CPA surcharge on tax bills at full 3%, put everything toward bond, pay off early 3)Reduce CPA surcharge to whatever percentage will fund annual debt service Note: Above is theoretical; it’s never happened CPA bonding is popular! 52 towns 103 projects $152 million in outstanding bonds ($27 historic, $11 housing, $83 open space) Some towns fully bonded for many years!