Agenda Item
Meeting Date: 5/10/2011 - 7:30 PM
Category: Consent Agenda
Type: Action
Subject: 9.19 (Item #27) Resolution Authorizing Issuance of Sale of Mt. Diablo Unified School District 2010 (2010-11)Tax and Revenue Anticipation Notes (TRANs)
LCAP (Local Control Accountability Plan) Goal:
Enclosure: Resolution 10/11-60
File Attachment:
Mt Diablo 2010-11 TRAN - District ResoV 2.pdf
Summary: Proceeds (not to exceed $40,000,000) from the issuance of TRANs will be used to meet fiscal year 2010-11 cash requirements until property tax revenues and state apportionments are received.

The State of California is deferring 29.7% of the District's principal apportionment ($32,795,375) from 2010-11 into 2011-12. The final apportionments for 2010-11 will not be received until late September 2011.

The TRAN will help the District cover its projected June cash shortfall due to the State's deferrals. The TRAN will be repaid in October 2011 after the last of the State deferrals have been received.
Funding: General Fund.
Fiscal Impact The fiscal impact is the difference between interest earnings and interest expense. At this time, it is projected that the district will break even or possibly incur a slight cost due to unfavorable rate spreads, but this will not be known until sale of the notes.
Recommendation: Approve Resolution #10/11-60 to issue TRANs as presented.
Recommended By:
Signed By:
Bryan Richards - Chief Financial Officer
Signed By:
Steven Lawrence - Superintendent