Agenda Item
Meeting Date: 6/28/2011 - 7:30 PM
Category: Business/Action Items
Type: Action
Subject: 15.7 Resolution of the Board of Education of the MDUSD Authorizing the Redemption of its CFD No. 1 Series 2002 Special Tax Refunding Bonds and Approving an Escrow Agreement in Connection therewith
LCAP (Local Control Accountability Plan) Goal:
Policy:
Enclosure: Resolution
File Attachment:
Mt Diablo USD 2002 Special Tax Bonds Def Resoution 74.pdf
Summary: The Mt. Diablo Unified School District Board of Education approved a resolution authorizing the refunding of Series 2002 CFD No. 1 Bonds at a recent board meeting. The refunding was to replace higher interest rate bearing CFD Bonds with lower interest rate bearing CFD Bonds, the benefit of which would result in lower debt service payments for the District. The call date, or the earliest date that the bonds could be refunded or redeemed, is August 1st, 2011.

Since the original Measure A CFD No. 1 Bond program was established in 1990, there has been a redemption account established for early retirement of outstanding CFD No. 1 Bonds. To date, there exists an estimated $24 million in the redemption account. Currently, the Series 2002 CFD No. 1 Bonds have an outstanding par amount of approximately $19 million.

Upon further analysis, our financial advisor and financing team has recommended that the District cash defease, or pay off, the Series 2002 CFD No. 1 Bonds in lieu of refinancing these bonds.
Funding:
Fiscal Impact
Recommendation: Adopt resolution as presented.
Approvals:
Recommended By:
Signed By:
Loreen Joseph - Secretary to the Superintendent
Signed By:
Steven Lawrence - Superintendent
Vote Results:

Original Motion
Member Sherry Whitmarsh Moved, Member Linda Mayo seconded to approve the Original motion 'Approve appointment as recommended.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0.
The motion Carried 5 - 0
   
Gary Eberhart     Yes
Linda Mayo     Yes
Sherry Whitmarsh     Yes
Lynne Dennler     Yes
Cheryl Hansen     Yes