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Consent-General Government   #
Board of Supervisors
Davis JUSD 2018-19 Tax Revenue Anticipation Notes (TRAN)
Howard Newens, Chief Financial Officer, Department of Financial Services
Chad Rinde, Assistant Chief Financial Officer, Department of Financial Services, x8050
Adopt resolution authorizing issuance of 2018-19 Tax Revenue Anticipation Notes, not to exceed $18 million, for the Davis Joint Unified School District and related Note Purchase Agreement. (No general fund impact) (Newens)
Adopt resolution authorizing the issuance of 2018-19 Tax Revenue Anticipation Notes (TRANs) for the Davis Joint Unified School District in an amount not to exceed $18,000,000;
Approve the Note Purchase Agreement for the 2018-2019 TRANs; and
Authorize and direct the Board Chair, Board Clerk, County Counsel and Chief Financial Officer to execute all documents and procedures necessary to effect this resolution.
Strategic Plan Goal(s)
Reason for Recommended Action/Background
The Davis Joint Unified School District has requested through its Resolution No. 42-18 (Att. C. District Resolution) that the Board of Supervisors authorize the issuance of TRANs pursuant to Government Code section 53850 et seq. in an amount not to exceed $18 million, at an interest rate not to exceed 4%, in the name of the District.
Government Code Section 53853 requires action by the Board of Supervisors even though the obligation is entirely the District’s. The Board Resolution authorizes the issuance of the TRANs, directs the County Treasurer-Tax Collector (presently the Chief Financial Officer), who has been appointed paying agent for the notes by the District, to carry out the necessary duties, and authorizes the Chair of the Board, the Clerk of the Board and the County Treasurer-Tax Collector to execute necessary documents to effect the TRANs transaction. Authorization of the issuance presents minimal risk to the County. The District has pledged all available District funds to the repayment of the notes. The District has agreed to make up any deficiency in the repayment fund from any other money of the District lawfully available to repay the notes. The District has also agreed to indemnify and reimburse the County for any liability, costs or expenses incurred in connection with the TRANs.
Collaborations (including Board advisory groups and external partner agencies)
This item is presented to your Board at the request of the Davis Joint Unified School District following the advice of their financial advisor (Government Financial Strategies, Inc.) and bond counsel (Parker & Covert LLP).
Competitive Bid Process
No Fiscal Impact
Fiscal Impact of this Expenditure
Total cost of recommended action
Amount budgeted for expenditure
Additional expenditure authority needed
On-going commitment (annual cost)
Source of Funds for this Expenditure
Further explanation as needed
This issuance of TRAN by the District has no impact on County general fund: the TRANs are a general obligation of the District, to be repaid from District’s unrestricted revenues and any other available District funds. The District has also agreed to reimburse the County for costs incurred to process the TRANs. The TRANs help the District to maintain positive cash balances in the county treasury pool.
Att. A. County Resolution
Att. B. Note Purchase Agreement
Att. C. District Resolution
07/18/2018 10:10 AM
Form Started By:
06/12/2018 01:28 PM
Final Approval Date:
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