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Board authorizes negotiated‑sale option for Prop A bond series and short‑term notes amid market volatility
Summary
Citing turbulent municipal markets, staff asked the board to authorize the option of a negotiated sale (in addition to a competitive auction) for a $150M Prop A bond series B and a short‑term tax‑revenue anticipation note; board approved authority to proceed to give the district flexibility on timing and underwriter selection.
District finance staff asked the board to authorize two financing actions designed to keep capital projects on track and maintain cash flow: a long‑term issuance of approximately $150 million under the 2006 Proposition A authorization (series B) and a short‑term tax‑revenue anticipation note (TRAN) of up to about $75 million.
Staff explained that while the district normally uses competitive sale (an auction) to access municipal markets, current market turmoil makes it prudent to preserve the option of a negotiated sale so the district and an underwriter can coordinate market timing and investor outreach. Staff emphasized the flexibility: the district will still pursue a competitive sale if market conditions allow but requested authority to select an underwriter and schedule a negotiated sale if needed.
Officials said the long‑term bond proceeds are needed by November to keep capital projects on schedule and that the note issuance is standard practice to smooth intra‑year cash flows. Board members asked about timing, alternatives (including county treasury borrowing) and the rationale for negotiation; staff replied that market unpredictability and complex investor conditions motivated the request. The board voted to approve the authorization to proceed with a negotiated sale option and related preparatory actions.
