Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Bonds topic
No spam. Unsubscribe anytime.
SFUSD authorizes $75M short-term notes and $150M Proposition A bond series B
Summary
The San Francisco Unified School District board authorized up to $75 million in short-term tax and revenue anticipation notes and approved preliminary steps for up to $150 million in Proposition A general obligation bonds to support cash flow and school modernization. Board members discussed timing, repayment and remaining voter authorization.
The San Francisco Unified School District Board of Education on Sept. 23 authorized the district to issue up to $75 million in tax and revenue anticipation notes (TRANs) and approved actions to prepare a $150 million Proposition A general obligation bond series B.
Board leaders and district finance staff said the TRANs are a short-term borrowing instrument used each year to smooth cash flow until property-tax and state apportionment receipts arrive. "This transaction is for a short-term borrowing — it borrows $75,000,000 this fall to be repaid almost a year later," said a district finance official, adding the district both pays and earns interest on the funds and can earn a net differential when invested.
Commissioners pressed staff on the timing and whether the recent state budget delay affected the need to borrow. The district—s finance team said the timing and size of note issues can be affected by the schedule of state and local revenue receipts but that the notes are routine. A roll-call vote on the TRAN resolution was recorded and the measure passed.
On capital finance, the board approved a motion to prepare and solicit proposals for up to $150 million in Proposition A general obligation bonds (Series B) to finance acquisition, construction, improvement and equipping of school facilities. District staff said the voter-approved authorization in February 2006 totaled $450 million; after prior issuances, about $200 million of authorization would remain after this series is issued.
Board members asked when remaining authorizations might be issued; staff estimated additional issuances could occur in about 18 months. The bond authorization motion passed on a roll call.
What happens next: staff will prepare preliminary official statements and notices inviting proposals for the notes and bonds, and the board will consider final approvals and execution documents in future meetings.
