COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Counsel

DATE:

June 17, 2009

BOARD MEETING DATE:

July 7, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

County Counsel

SUBJECT:

Resolution Providing for Issuance and Sale of Redwood City School District 2009-10 Tax and Revenue Anticipation Notes

RECOMMENDATION:

Adopt a resolution authorizing the issuance and sale of not to exceed $8,000,000 of Redwood City School District 2009-10 Tax and Revenue Anticipation Notes.

VISION ALIGNMENT:

Commitment: Sow the seeds of our future prosperity.

Goal 19: The skill level of new workers rises with improved K-12 education and training options.

The issuance and sale of Tax and Revenue Anticipation Notes by the Redwood City School District will increase the funds currently available to the District and thereby support the District’s operating budget.

BACKGROUND:

Pursuant to state statute (Government Code §53850, et. seq.), a school district may borrow money by issuing Tax and Revenue Anticipation Notes (TRANS) for any purpose for which the school 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 school district. When issued by the school district individually, such notes must be issued in the name of the school district by the Board of Supervisors. The school district pledges any taxes, income or revenue for payment of the notes, and the notes are a general obligation of the school district.

DISCUSSION:

The Governing Board of the Redwood City School District passed its Resolution No. 16 (2008-2009) on May 27, 2009, requesting the borrowing of funds not to exceed $8,000,000 through the issuance of 2009-10 Tax and Revenue Anticipation Notes. The recommended resolution authorizes issuance of the notes, approves the form of the notes and the sale of the notes by a competitive sale or a negotiated sale, and authorizes the signatures and other actions necessary to finalize the issuance and sale.

A copy of the District’s Resolution has been filed with the Clerk of the Board.

FISCAL IMPACT:

The notes are not an obligation of the County and have no fiscal impact on the County.