[1][2] The main purpose of this statute is to allow local California governments to work together to get financing in a way that will conceivably lower borrowing costs.
Underlying this concept is the belief that money can be saved through economies of scale by selling one large bond issue to finance several small projects.
In its broadest terms, the Marks-Roos Act authorizes JPAs to issue Marks-Roos bonds and loan the proceeds to local governmental agencies and non-profit corporations to finance public capital improvements, working capital or insurance programs.
However, there is a requirement for the JPA to make the finding that the financing would result in significant public benefit prior to bond.
The Marks-Roos Bond Pooling Act was thus created with the intent of providing a flexible alternative method of financing needed improvements, along with the benefit of reduced borrowing costs through the use of bond pools.