Joint Powers Authorities

In the Direct JPA model, each member delegates to the JPA a function that each member has the legal authority to provide. This shared approach results in cost savings and better efficiency on behalf of taxpayers. City Response: Agree.

The Circular JPAs with a single controlling entity, such as a city council, have the potential to avoid legal debt limits and provide limited disclosures to taxpayer. City Response: Partially disagree. A city may employ the lease exception to the State constitutional debt limit through a partnership with any type of joint powers authority (JPA) or another partner organization, not just a “circular JPA.” In addition, a city that assumes debt as part of a JPA would disclose that debt and associated payments through a number of channels, including its budget, comprehensive annual financial report, and ongoing disclosure requirements. Gregory Lane, Pleasant Hill, CA 94523-3323 – (925) 671-5270 www.pleasanthillca.org

In Contra Costa County, there are 12 Circular JPAs created by cities with RDAs that no longer exist. These JPAs may no longer be valid because each is a member of another Financial JPA which may take on new debt without the prohibition (Gov. Codes Sections 6505 3416/34170 et seq.) placed on Successor Agencies. City Response: Partially disagree. While the Dissolution Law voided most agreements between former redevelopment agencies and their host cities, the Dissolution Law preserves the existence of joint powers authorities whose members included a former redevelopment agency. See Health & Safety Code section 34178(b).

Cities that have created the 12 Financial JPAs do not provide JPA-specific financial information in their budget document. As a result, the public may have difficulty evaluating JPA's financial performance. City Response: Partially disagree. As noted above, a city that assumes debt as part of a JPA would disclose that debt and associated payments through a number of channels, including its budget, comprehensive annual financial report, and ongoing disclosure requirements.