MEETING DATE:
November 10, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9681 - APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE BENEFIT OF NORTH COUNTY HEALTH PROJECT INCORPORATED LOCATED IN THE CITY OF SAN MARCOS IN AN AGGREGATE AMOUNT NOT TO EXCEED $11,000,000 FOR THE PURPOSE OF FINANCING AND REFINANCING THE ACQUISITION, CONSTRUCTION, INSTALLATION, EQUIPPING OR FURNISHING OF CERTAIN HEALTH FACILITIES IN THE CITY OF SAN MARCOS AND CERTAIN OTHER MATTERS RELATING THERETO
Recommendation:
Recommendation
ADOPT a resolution approving the issuance of California Municipal Finance Authority revenue bonds in an aggregate amount not to exceed $11,000,000 to finance improvements and renovations to certain healthcare facilities, including expanded clinical and administrative space and enhanced healthcare services.
Body
Board or Commission Action
Not applicable
Relevant Council Strategic Theme
Not applicable
Relevant Department Goal
Not applicable
Introduction:
The California Municipal Finance Authority (the “Authority” or “CMFA”) is a joint powers authority whose mission is to support economic development, job creation and social programs throughout the State of California while giving back to California communities. Federal and state laws provide the ability for cities and counties to join together under cooperative agreements to form joint powers authorities to issue tax-exempt and taxable bonds to fund projects that provide a public benefit and serve the needs of residents within the jurisdictions of the participating members. The City of San Marcos (the “City”) joined CMFA as a Member on October 24, 2017 pursuant to Resolution No. 2017-8408.
North County Health Project Incorporated dba TrueCare is a nonprofit 501(c)(3) organization headquartered in San Marcos, California. Founded in 1971, TrueCare provides comprehensive healthcare services to underserved communities throughout San Diego and Riverside Counties, regardless of insurance status or ability to pay. TrueCare operates 27 health centers and WIC locations, providing primary care, pediatric, dental, behavioral health, and other healthcare services. The organization serves approximately 70,000 individuals through more than 400,000 patient visits annually.
The Borrower and the Authority have requested that the City, pursuant to the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”), approve a resolution in accordance with Internal Revenue Code Section 147(f) approving the issuance of tax-exempt bonds by the Authority in an amount not-to-exceed $11,000,000 (“Bonds”). A TEFRA hearing is required by the Internal Revenue Code before tax-exempt debt can be issued for the benefit of a private nonprofit corporation. The hearing gives the public an opportunity to comment on the use of tax-exempt funds by the Borrower. The Authority conducted the TEFRA hearing on October 30, 2026.
Discussion:
TrueCare operates healthcare facilities in San Marcos offering a wide range of services, including primary and pediatric care, women’s health, dental and behavioral health services, chronic disease management, pharmacy services, and other medical and wellness programs. TrueCare also provides specialized healthcare services for older adults and assistance with health insurance enrollment, helping expand access to affordable healthcare for underserved populations.
As noted above, the Borrower and Authority have requested that the City approve a resolution pursuant to TEFRA and Internal Revenue Code 147(f), approving the issuance of Bonds by the Authority in an amount not to exceed $11,000,000. The proposed bond financing will be used to finance or refinance improvements to TrueCare's existing facilities in San Marcos, including administrative office improvements, renovations, and expansion of healthcare facilities. The projects are intended to improve operational efficiency, increase patient capacity, and expand access to healthcare services for the community.
The issuance of the Bonds as tax-exempt bonds will reduce financing costs and debt service costs for the Borrower. To satisfy the requirements for tax-exempt financing under Section 147(f) of the Internal Revenue Code, the proposed bond issuance is subject to a public hearing and approval by the applicable governmental representatives. The TEFRA hearing was conducted by the Authority on October 30, 2026, following a publication of a notice of the TEFRA hearing in The Coast News not less than 7 days prior to the hearing, and no comments were received from the public. The City Council of the City of San Marcos constitutes an applicable elected representative under Section 147(f) of the Code. The City's approval is limited to satisfying the applicable TEFRA requirements for facilities located within San Marcos and does not constitute approval of the Project for any other purpose or create a financial obligation of the City with respect to the Bonds.
Fiscal Impact:
There is no fiscal impact to the City. The Bonds to be issued by the Authority for the Project will be the sole responsibility of the Borrower, and the City will have no financial or legal obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. Staff will seek the reimbursement of all of the costs and expenses incurred by City with respect to this proceeding, as well as an indemnification agreement with the Borrower, to address any future costs and/or expenses that the City may incur with respect to the financing activities and/or the Bonds, so that the City is not required to bear the same. Staff suggests that the City’s approval be made contingent upon reimbursement and indemnification as discussed herein.
Attachment(s)
Resolution Approving Issuance by Authority
Prepared by: Jeffrey Jorgenson, Accounting and Treasury Manager
Reviewed by: Donna Apar, Finance Director
Approved by: Michelle Bender, City Manager