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Meeting Date:
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3/22/2023 - 6:00 PM
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Category:
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Recognitions and Resolutions
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Type:
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Action
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Subject:
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10.3 Resolution No. 22/23 (49) Providing for the Issuance and Sale of 2022 Refunding General Obligation Bonds
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LCAP (Local Control Accountability Plan) Goal:
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Goal 1: All students will receive a high quality education in a safe and welcoming environment with equitable and high expectations, access to technology, and instruction in the California State Standards that prepare them for college and career. Goal 3: Parents, family, and community will be informed, engaged and empowered as partners with Mt. Diablo Unified to support student learning and achievement.
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Enclosure
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Refunding of General Obligation Bonds - presentation
Preliminary Official Statement
Bond Purchase Agreement
Escrow Agreement
Jones Hall Legal Agreement
Resolution 22/23-49
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File Attachment:
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Summary:
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The District has been advised that current interest rate conditions in the bond markets present an opportunity to refinance for interest cost savings certain maturities of the District’s outstanding bonds which were issued to finance school facility improvements. Savings achieved will be passed on to property taxpayers in the form of reduced tax levies for bonds. As provided by law, Refunding Bonds can only be issued if savings are realized, and the final maturity date of the Refunding Bonds is not extended beyond final maturity date of the original bonds to be refinanced.
The Resolution for Board consideration set forth all of the terms and conditions of the issuance of 2022 Refunding Bonds. The Bonds are proposed to be issued as traditional current interest bonds pursuant to the terms of the California Government Code (no capital appreciation bonds). Current expectations regarding the costs of the 2020 Bonds as required by State law are set forth in Appendix B to the Resolution. The Resolution authorizes the sale of the bonds by negotiation to an investment banking firm to be selected upon the advice of the District’s municipal advisor, which will underwrite all of the bonds and have the responsibility of placing them with investors. The resolution authorizes the Superintendent, Chief Business Official and staff, working with its financing professionals, to finalize documentation relating to the issuance of the Bonds, including the Official Statement, which is the disclosure document to be provided to potential bond purchasers, which under securities laws standards must contain all material information to make an informed investment decision, and no material misstatements or omissions.
The agreements with Isom Advisors and Jones Hall are attached as references. The cost of services are built into the cost of the refinance and are not incurred by MDUSD.
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Funding:
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Fiscal Impact
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None to General Fund. Refinancing will result in reduced ad valorem property tax levies in the District for bond repayment. Costs of issuing the Bonds are included in the refinancing plan as costs of issuance and paid from proceeds of the Refunding Bonds.
The agreements with Isom Advisors and Jones Hall are attached as references. The cost of services are built into the cost of the refinance and are not incurred by MDUSD.
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Recommendation:
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Move to approve Resolution No. 22/23-49: Providing for the issuance and sale of 2022 Refunding General Obligation Bonds
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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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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 Cherise Khaund Moved, Member Debra Mason seconded to approve the Original motion 'Move to approve Resolution No. 22/23-49: Providing for the issuance and sale of 2022 Refunding General Obligation Bonds'. 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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