Agenda Item
Meeting Date: 10/26/2010 - 7:30 PM
Category: Consent Agenda
Type: Action
Subject: 8.23 (Item 24) Resolution #10/11-26 of the Board of Education of the Mt. Diablo Unified School District Authorizing the Submission of an Application for Qualified School Construction Bond Allocation and Approving Certain Actions in Relation Thereto
LCAP (Local Control Accountability Plan) Goal:
Enclosure: Resolution 10/11-26
File Attachment:
Mt Diablo 2010 QSCB Application ResoV 3 _3_.pdf
Summary: The American Recovery and Reinvestment Act of 2009 authorizes public schools to designate certain bonds as “qualified school construction bonds” (“QSCBs”). In order to make such a designation, a school district must receive an allocation of QSCB volume cap which is available in an aggregate principal amount of $11 billion for calendar year 2010. The Treasury Department has allocated $651,652,000 of QSCB volume cap to public school districts and county offices of education within California. The California Department of Education (“CDE”) is authorized to assign and distribute that QSCB volume cap in an amount not to exceed $25,000,000 per school district. The CDE has published an application and application procedures for school districts who wish to receive a portion of that QSCB volume cap. Adoption of a resolution by the governing body of the school district authorizing submission of the application to the CDE is a requirement for application. The Resolution under consideration meets the CDE requirements for that resolution.
Funding: Principal of and interest on the QSCBs would be repaid from property taxes levied by the County on real property within the boundaries of the District and not from the District’s General Fund. In addition, the District would receive a payment from the United States Treasury Department on each interest payment date of approximately 100% of the interest due on the QSCBs on such interest payment date which would be applied to offset the tax levy on the property owners within the District.
Fiscal Impact There is no General Fund impact as QSCBs are not payable from the District’s General Fund, rather they are issued as general obligation bonds under Measure C and further designated as QSCBs. So long as certain tax code requirements are met, the District will receive a payment from the federal government in connection with the QSCBs which will offset the interest due on the QSCBs. Obtaining QSCB allocation will therefore lower the borrowing costs for the District’s Measure C bonds thereby lowering the required property tax levy to repay the QSCBs.
Recommendation: Adopt resolution as presented.
Recommended By:
Signed By:
Pete Pedersen - Measure C
Signed By:
Steven Lawrence - Superintendent