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Consent-General Government # 10.
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| Board of Supervisors |
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| Subject |
| Adopt a resolution approving California Municipal Finance Authority Bond Issuance. (No general fund impact) (Nunes) |
| Recommended Action |
To satisfy requirements in state law, adopt a resolution approving the issuance of the Bonds by the California Municipal Finance Authority (CMFA) for the benefit of Leaders & Scholars Two, LLC to provide for the financing of the Project, described below.
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| Strategic Plan Goal(s) |
| Thriving Residents |
| Reason for Recommended Action/Background |
Leaders & Scholars Two, LLC, a California limited liability company (Borrower), has requested that the Authority participate in the issuance of one or more series of charter school revenue bonds in an aggregate principal amount not to exceed $18,000,000 (Bonds). The proceeds of the Bonds will be used for the financing and/or refinancing of the following: (1) the acquisition, construction, renovation and/or equipping of educational facilities for Lighthouse Charter School located at 841 Bryte Avenue, West Sacramento, California (the “Facilities”), located within the geographical boundaries of the County; (2) the existing debt issued to finance working capital of Delta Elementary Charter School located at 36230 N. School St., Clarksburg, California 95612, located within the geographical boundaries of the County; (3) the funding of a reserve fund and capitalized interest, if necessary; and (4) certain expenses incurred in connection with the issuance of the Bonds, including any applicable credit enhancement costs (such purposes are referred to herein collectively as the “Project”).
The California Municipal Finance Authority (CMFA) was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 275 municipalities, including the County of Yolo, have become members of CMFA.
The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt Bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financing.
The Joint Exercise of Powers Agreement provides that the CMFA is a public entity, separate and apart from each member executing such agreement. The debts, liabilities and Bonds of the CMFA do not constitute debts, liabilities or Bonds of the members executing such agreement.
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the County will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not Bonds of the County or the State of California, but are to be paid for solely from funds provided by the Borrower.
Participation by the County in the CMFA will not impact the County’s appropriations limits and will not constitute any type of indebtedness by the County. Outside of adopting the required resolution, no other participation or activity of the County or the County Supervisors with respect to the issuance of the Bonds will be required.
There is no direct or indirect financial impact to the County of Yolo as a result of this proposed financing. The Authority will issue tax-exempt bonds on behalf of the Project. The tax-exempt bonds are payable solely out of the revenues derived by the Borrower from the applicable project. No financial obligations are placed on the County for project financing costs or debt repayment.
In light of the foregoing, and in order to support public education, staff recommends that the County adopt the resolution in favor of the issuance of the Bonds by the CMFA.
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| Collaborations (including Board advisory groups and external partner agencies) |
| California Municipal Finance Authority, Delta Elementary Charter School and Lighthouse Charter School |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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