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Adopt a resolution authorizing school districts and community college districts over which the Solano County Office of Education has jurisdiction to issue and sell school bonds directly pursuant to state law
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
In consultation with the County Superintendent of Schools, the Treasurer-Tax Collector-County Clerk recommends that the Board of Supervisors adopt a resolution authorizing the school districts over which the Solano County Office of Education (SCOE) has jurisdiction to issue and sell school bonds directly pursuant to state law.
SUMMARY/DISCUSSION:
The Solano County Office of Education (SCOE) currently has jurisdiction over six K-12 school districts and two Community College districts. Benicia Unified School District, Dixon Unified School District, Fairfield-Suisun Unified School District, Travis Unified School District, Vacaville Unified School District, Vallejo City Unified School District, and two community college districts, Solano Community College District, and California Online Community College District (collectively “the districts”).
As part of the current process for a given district desiring to issue voter approved bonds, said district must make an individual direct request of this board for issuance permission to issue any debt, including refunding’s. Compliance with this requirement necessitates the preparation and submission of an agenda submittal to the county board before the district can proceed with each specific issuance which can create delays in the overall bond issuance process that provide limited, if any, beneficial purpose.
In accordance with Section 15140(b) of the California Education Code, the Board can elect to allow any qualifying district, under the jurisdiction of the SCOE to issue and sell school bonds directly. By making a blanket election, the Board will streamline the issuance process and thereby eliminate a potential source of delay in the issuance process.
As De Facto Treasurer for the districts, the County Treasurer provides banking and pooled investment services, as well as bond issuance and other financial advisory services on an as needed basis. Approval of this resolution is not intended or anticipated to alter or impact the ongoing fiduciary relationship between the County Treasurer and the districts.
FINANCIAL IMPACT:
There is no cost associated with the adoption of this resolution. Going forward the county and school districts may see nominal cost savings from the reduction of paperwork associated with individual bond issuances.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2020/21 Preliminary Budget.
ALTERNATIVES:
The Board of Supervisors could elect not to adopt a blanket issuance approval. This is not recommended as the issuances have voter approval and fall under the jurisdiction of the SCOE, and the adoption will allow for improved efficiencies in the issuance of school debt.
OTHER AGENCY INVOLVEMENT:
The Auditor-Controller, County Counsel, County Administrator, Solano County Office of Education, and the respective requesting districts have been directly involved in this request.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION