COUNTY OF SAN MATEO

Inter-Departmental Correspondence

COUNTY COUNSEL

DATE:

May 24, 2004

BOARD MEETING DATE:

June 8, 2004

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Resolution Providing for Issuance and Sale of San Mateo County Community College District 2004-2005 Tax and Revenue Anticipation Notes (Taxable)

Recommendation

Adopt a resolution providing for the issuance of San Mateo County Community College District, County of San Mateo, 2004-2005 Tax and Revenue Anticipation Notes (Taxable).

Background

Pursuant to state statue, a school or college district may borrow money by issuing Tax and Revenue Anticipation Notes (TRANS) for any purpose for which the district is authorized to use and expend moneys, including, but not limited to, current expenses, capital expenditures, and the discharge of any obligation or indebtedness of the district. When issued by the district individually, such notes must be issued in the name of the district by the Board of Supervisors. The district pledges any taxes, income or revenue for payment of the Notes, and the Notes are a general obligation of the district.

Discussion

The Governing Board of the San Mateo County Community College District passed a resolution on March 24, 2004, requesting the borrowing of funds not to exceed $20 million through the issuance of 2004-2005 Tax and Revenue Anticipation Notes. These Notes would be taxable. The recommended resolution authorizes issuance of the TRANS, approves the form of the notes, the Contract of Purchase by negotiated sale and authorizes the necessary signatures and other actions to finalize the issuance.

A copy of the District's Resolution is enclosed with this memo.

Vision Alignment

The issuance and sale of these Tax and Revenue Anticipation Notes is in keeping with goal number 4: Residents have many educational and training opportunities beyond high school.

Fiscal Impact

The TRANS are not an obligation of the County and have no fiscal impact for the County.