| | | | | | | |  | SAN BENITO COUNTY AGENDA ITEM
TRANSMITTAL FORM |
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| | | | | | | | Mark Medina District No. 1 | Anthony Botelho District No. 2 Chair | Robert Rivas District No. 3 | Jerry Muenzer District No. 4
Vice - Chair | Jaime De La Cruz District No. 5 |
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| | | | | | | | Item Number: 8.
MEETING DATE: 6/26/2018
DEPARTMENT: COUNTY COUNSEL
DEPT HEAD/DIRECTOR: Barbara Thompson
AGENDA ITEM PREPARER: Barbara Thompson
SBC DEPT FILE NUMBER: 575
SUBJECT:
COUNTY COUNSEL'S OFFICE - B. THOMPSON-
Adopt Resolution Allowing School Districts to independently issue bonds in accordance with the Education and/or Government Code pursuant to the provisions of Education Code 15140(b).
SBC FILE NUMBER: 575
RESOLUTION NO: 2018-34
AGENDA SECTION:
CONSENT AGENDA
BACKGROUND/SUMMARY:
School and community college districts in San Benito County periodically issue general obligation bonds in accordance with Education Code and/or Government Code authority. Under the Education Code (Ed. Code, section 15100 et seq.), school/community college district bonds are issued by the County Board of Supervisors on behalf of the district, unless the County Board of Supervisors provides by resolution that a district may issue and sell bonds on its own behalf and the district has not received a qualified or negative certification of its most recent interim financial report. Districts may and also commonly do issue bonds independent of the County Board of Supervisors under certain Government Code provisions (Gov. Code, section 53506 et seq.). It is staff’s recommendation that the County Board of Supervisors adopt Resolution __ to provide standing authority for a school or community college district in the County to issue bonds on its own behalf unless action by the County is otherwise required by law. Regardless of the form or procedure for issuance of general obligation bonds by districts, the district is required to coordinate with appropriate County officials to ensure that ad valorem tax levies to repay bonds are in place, and funds are created to hold bond proceeds.
Education Code 15140 is set forth below:
(a) Bonds of a school district or community college district shall be offered for sale by the board of supervisors of the county, the county superintendent of which has jurisdiction over the district, or the community college district governing board, where appropriate, as soon as possible following receipt of a resolution duly adopted by the governing board of the school district or community college district. The resolution shall prescribe the total amount of bonds to be sold. The resolution may also prescribe the maximum acceptable interest rate, not to exceed 8 percent, and the time or times when the whole or any part of the principal of the bonds shall be payable, which shall not be more than 25 years from the date of the bonds.
(b) Notwithstanding subdivision (a) or another provision of this chapter, the board of supervisors of any county may provide by resolution that the governing board of any school district or community college district over which the county superintendent of schools has jurisdiction, and which has not received a qualified or negative certification in its most recent interim report, may issue and sell bonds on its own behalf pursuant to this chapter without further action of the board of supervisors or officers of that county or of any other county in which a portion of the school district or community college district is located. The county shall levy and collect taxes, pay bonds, and hold bond proceeds and tax funds pursuant to this chapter for the bonds issued and sold pursuant to this subdivision.
(c) Whenever the governing board of a school district or community college district issues bonds or refunding bonds payable from ad valorem taxes the governing board shall transmit the authorizing resolution and debt service schedule, including the debt service schedule for the bonds to be refunded, to the county auditor and county treasurer in sufficient time to permit the county to establish tax rates and necessary funds or accounts for the bonds
BUDGETED:
SBC BUDGET LINE ITEM NUMBER:
CURRENT FY COST:
n/a
STAFF RECOMMENDATION:
Adopt Resolution No. ___, allowing School Districts to independently issue bonds in accordance with the Education and/or Government Code, pursuant to Education Code 15140(b).
ADDITIONAL PERSONNEL:
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| | | | | | | | BOARD ACTION RESULTS:
Adopted Resolution No. 2018-34, per staff recommendation. (3/2 vote), Supervisor Jerry Muenzer and Supervisor Anthony Botelho voted no. | | | |
| ATTACHMENTS: | | Description | Upload Date | Type | | Resolution | 6/17/2018 | Resolution Letter |
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