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Meeting Date:
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4/23/2025 - 6:00 PM
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Category:
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Recognitions and Resolutions
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Type:
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Action
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Subject:
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10.8 Review and Potential Approval of Resolution No. 24/25 (67) Authorizing the issuance and sale of refunding general obligation bonds in the principal amount of not to exceed $90,000,000 for the purpose of refunding outstanding 2010 Series A bonds; authorizing the execution and delivery of an official statement, bond purchase agreement, and escrow agreement; and approving documents and official actions relating thereto
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LCAP (Local Control Accountability Plan) Goal:
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Goal 1: All students will receive a high quality education in a safe and welcoming environment with high expectations and rigorous instruction in the California State Standards that prepare them for college and career. Goal 2: Highly qualified, culturally proficient, and responsive staff will create learning environment respectful of all students' backgrounds ensuring they are college and career ready when they graduate. Goal 3: Families and community will be informed and empowered as partners with Mt. Diablo Unified to support student learning and improve student outcomes.
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Enclosure
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Board Presentation: Bond Refunding & New Bond Issuance
Preliminary Official Statement
Bond Purchase Agreement
Resolution 24/25-67
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File Attachment:
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Summary:
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The District has the opportunity to refinance its outstanding General Obligation Bonds, 2010 Election, 2010 Series A which were issued in September 2010, by capturing lower interest rates that are available in the bond markets. The Resolution listed above authorizes the issuance of up to $90 million in refunding bonds pursuant to the Government Code, provided that savings can be achieved and that the final term of the prior bonds is not extended past the original term. The Bonds will be issued as tax-exempt bonds, in the form of current interest bonds only. Capital appreciation bonds are not authorized. Savings will be passed on to District property tax payers.
The Resolution authorizes the sale of the bonds by negotiation to the underwriting firm of Stifel, Nicolaus & Company, Incorporated, which will buy all of the bonds from the District and thereafter have the responsibility of placing the bonds with separate investors. The terms of the sale will be documented in the Bond Purchase Agreement, which is approved as to form in the Resolution. The resolution authorizes District officials to finalize other items relating to the issuance of the Bonds. This includes the Preliminary Official Statement (the “POS”), which is the document that will be used to provide disclosure to potential investors regarding the repayment terms and security features of the bonds (ad valorem property tax collections) and other matters meeting industry standards regarding investor disclosures. The District’s obligation under federal securities laws is to ensure that the POS contains all material information for making an investment and does not contain any material misstatements or omissions. District staff is authorized in the Resolution to work with the financing team following approval to ensure the POS is complete and accurate before it is circulated to bond investors. It is currently expected that the Bonds will be issued and funds available to the District in late May 2025, subject to bond market conditions.
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Funding:
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Fiscal Impact
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GO Bonds are repaid by voter-approved property tax collections. Proceeds will provide funding for voter-approved projects. Issuance costs will be paid from the proceeds of the bonds.
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Recommendation:
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Motion to Approve Resolution authorizing issuance of 2025 Refunding General Obligation Bonds in the Principal Amount of Not To Exceed $90,000,000.
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Approvals:
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Recommended By:
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Signed By:
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Adrian Vargas - Chief Business Officer
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Signed By:
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Gustavo Aguilera - Executive Director, Fiscal
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Signed By:
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Dr. Adam Clark - Superintendent
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Vote Results:
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| Original Motion | | Member Cherise Khaund Moved, Member Keisha Nzewi seconded to approve the Original motion 'Motion to Approve Resolution authorizing issuance of 2025 Refunding General Obligation Bonds in the Principal Amount of Not To Exceed $90,000,000.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0. | | The motion Carried 5 - 0 | | | | | Linda Mayo | Yes | | Debra Mason | Yes | | Cherise Khaund | Yes | | Keisha Nzewi | Yes | | Thomas McDougall | Yes | |
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