The Honorable Board of Supervisors
County of Los Angeles
383 Kenneth Hahn Hall of Administration
500 West Temple Street
Los Angeles, CA 90012

Dear Supervisors:

ISSUANCE AND SALE OF PASADENA UNIFIED SCHOOL DISTRICT

1999 GENERAL OBLIGATION BONDS, (1997 ELECTION SERIES B)

(FIFTH DISTRICT -- 3-VOTES)

IT IS RECOMMENDED THAT YOUR BOARD:

PURPOSE OF RECOMMENDED ACTION

On April 27, 1999, the Governing Board of the Pasadena Unified School District adopted a Resolution determining that the District needs to borrow funds in an aggregate principal amount not to exceed $50,000,000 to be used for authorized purposes.

The District is requesting that your Board issue tax-exempt general obligation bonds onbehalf of the District through a competitive bid and to approve the Notice Inviting Proposals for the Purchase of Bonds required for the bid process.

JUSTIFICATION

On November 4, 1997, an election was held whereby qualified voters of the District approved the proposition authorizing the District to issue $240 million in general obligation bonds in order to improve safety and the quality of education in schools in Pasadena, Altadena, and Sierra Madre. This is the second issuance in a series of bonds authorized under this bond measure. The first series was sold in an aggregate principal amount of $50,000,000.

Pursuant to Section 15140 of the Education Code, the Board of Supervisors is responsible for offering the District's bonds for sale. Such bonds shall be issued in the name and on behalf of such school district by the Board of Supervisors of the County following receipt of the district resolution requesting such borrowing.

FISCAL IMPACT

None to the County. All debt indebtedness will be borne by the District.

FINANCING

Not applicable

FACTS AND PROVISIONS/LEGAL REQUIREMENTS

The Resolution and the Notice provide for the sale of these bonds by competitive bid. On June 16, 1999, the Treasurer and Tax Collector will award the sale of the bonds to the lowest responsible bidder. The maximum interest rate acceptable is twelve percent (12%).

The District has selected Sutro and Co. Incorporated as Financial Advisor; and Brown & Wood LLP as Bond Counsel.

The County will annually levy ad valorem taxes for the repayment of the bonds on behalf of the District.

CONCLUSION

Upon approval of this Resolution, the Department will need two (2) originally executed copies of the adopted Resolution.

Respectfully submitted,

MARK J. SALADINO
Treasurer and Tax Collector

MJS:MS:BBG
dt:schools:99 Pas GO B Bd Ltr

Attachments (2)

c: Executive Officer, Board of Supervisors
Chief Administrative Officer
Auditor-Controller
County Counsel
Pasadena Unified School District

Brown & Wood LLP

Previous PageTop Of Page