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:
Adopt the Resolution authorizing the issuance and sale of General Obligation Bonds of the Lancaster School District in an aggregate principal amount not to exceed $17,500,000.
On April 20, 1999, the Governing Board of the Lancaster School District adopted a Resolution determining that the District needs to borrow funds in an aggregate principal amount not to exceed $17,500,000 to be used for authorized purposes.
On March 2, 1999, an election was held whereby qualified voters of the District approved the proposition authorizing the District to issue $29 million in general obligation bonds in order to repair and rehabilitate local schools, including health and safety repairs, and building new schools to relieve severe overcrowding. This is the first issuance in a series of bonds authorized under this bond measure.
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.
None to the County. All debt indebtedness will be borne by the District.
Not applicable
The Resolution provides for issuance of Current Interest Bonds and/or Capital Appreciation Bonds not to exceed a maximum interest rate of eight percent (8%). The final structure will be determined at the time of pricing to achieve the lowest cost of financing within the limits of the proposition's tax levy. Final maturity of the bonds is scheduled for February 1, 2024. Provisions for optional redemption of the Current Interest Bonds will be described in the Contract of Purchase.
The Resolution provides for the negotiated sale of the bonds, with participation by the Treasurer and Tax Collector in pricing of the bonds to the Underwriters. The District has selected PaineWebber, Inc. as Underwriter; Caldwell Flores Winters, Inc. as Financial Advisor; and the firm of O'Melveny & Myers LLP as Bond Counsel.
The County will annually levy and collect ad valorem taxes for the repayment of the bonds on behalf of the District.
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:BLC
pb/board letters:99 lan go b bdltr
Attachments(2)
c: Executive Officer, Board of Supervisors
Chief Administrative Officer
Auditor-Controller
County Counsel
Lancaster School District
Los Angeles County Office of Education
O'Melveny & Myers LLP
Caldwell Flores Winters, Inc.
U. S. Bank Trust, National Association