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Meeting Date:
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2/9/2022 - 6:00 PM
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Category:
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Business/Action Items
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Type:
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Action
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Subject:
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18.5 Review and Potential Approval of Resolution No. 21/22-51 Authorizing the Issuance and Sale of its General Obligation Bonds, 2018 Election, Series B in an Aggregate Principal Amount Not to Exceed $75 Million and Approving Related Documents and Actions
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LCAP (Local Control Accountability Plan) Goal:
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Enclosure
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MDUSD Bond Resolution 21/22-51.
Preliminary Official Statement.
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File Attachment:
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Summary:
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At an election held on November 6, 2018 (the “2018 Election”), the voters of the Mt. Diablo Unified School District (District) approved Measure J by over 70%, authorizing the issuance of $150 million of general obligation bonds of the District. The District has previously issued an initial series of Series A Bonds under Measure J in the principal amount of $20 million. The proceeds of the Series B Bonds will be used to finance capital improvements as approved by the voters at the 2018 Election. The Series B Bonds are repaid from property taxes levied by the county on real property within the boundaries of the district, not from the District’s General Fund. The total tax rate required to repay the Series A Bonds and the Series B Bonds will not exceed the statutory maximum tax rate of $60 per $100,000 of assessed valuation.
The proposed Resolution authorizes the issuance and sale of a second series of general obligation bonds authorized at the 2018 Election, in the principal amount of $75 million. The Resolution provides for the creation of a Building Fund to be held by the County, into which the proceeds of the Series B Bonds will be deposited and expended for authorized projects under Measure J. The Resolution also directs the County to levy an ad valorem property tax on all taxable properties in the District for the payment of the Series B Bonds, and establishes a Debt Service Fund to be held by the County for the deposit and application of such taxes. The Resolution authorizes the sale of the Series B Bonds to the underwriting firm of Stifel Nicholaus & Company on a negotiated basis, as permitted by the Education Code.
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Funding:
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N/A
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Fiscal Impact
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All expenses of issuing the Bonds will be paid from proceeds of the Series B Bond sale and no General Fund monies are required to pay for costs of issuing the Bonds. Issuance of the Series B Bonds would result in available monies for the District to spend on capital projects listed on the Project List approved by the voters at the 2018 Election.
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Recommendation:
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Move to approve Resolution No. 21/22-51 of the Board of Education of the Mt. Diablo Unified School District Authorizing the Issuance and Sale of its General Obligation Bonds, 2018 Election, Series B in an Aggregate Principal Amount Not to Exceed $75 Million and Approving Related Documents and Actions.
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Approvals:
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Recommended By:
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Signed By:
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Niccole Helton - Administrative Assistant
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Signed By:
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Mika Arbelbide - Director of Fiscal Services
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Signed By:
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Dr. Lisa Gonzales - Chief Business Officer
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Signed By:
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Dr. Adam Clark - Superintendent
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Vote Results:
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| Original Motion | | Member Linda Mayo Moved, Member Cherise Khaund seconded to approve the Original motion 'Move to approve Resolution No. 21/22-51 of the Board of Education of the Mt. Diablo Unified School District Authorizing the Issuance and Sale of its General Obligation Bonds, 2018 Election, Series B in an Aggregate Principal Amount Not to Exceed $75 Million and Approving Related Documents and Actions.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0. | | The motion Carried 5 - 0 | | | | | Linda Mayo | Yes | | Debra Mason | Yes | | Cherise Khaund | Yes | | Keisha Nzewi | Yes | | Erin McFerrin | Yes | |
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