Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bonds Finance topic
No spam. Unsubscribe anytime.
Board approves up to $40 million in special‑tax bonds to finance College Park school
Summary
Trustees unanimously approved a resolution authorizing issuance of up to $40 million in special‑tax Community Facilities District bonds to finance a new elementary school in College Park and to repay developer shortfall funding; staff said bonds are payable only from CFD special taxes and will not affect the district general fund.
The Lammersville Joint Unified School District governing board voted to approve resolution 25‑26‑08 authorizing issuance and sale of special tax bonds not to exceed $40,000,000 for Community Facilities District (CFD) 2019‑1, which serves the College Park / Mountain House area.
Staff described the transaction as a means to finance construction of a new K‑neighborhood school and to repay shortfall funding provided earlier by Mountain House Investors and the city under prior arrangements. The staff report said proceeds will be used to pay off approximately $14,000,000 of original principal in developer‑provided loans and more than $3,000,000 in index‑applied interest; staff emphasized the bonds are payable only from special taxes levied within the CFD and said the transaction will have no fiscal impact on the district’s general fund.
Trustees asked whether the bond sale will save money; staff and a trustee both explained that replacing the developer‑indexed interest (Marshall Swift index) with bond financing will reduce ongoing interest costs. The motion (moved by Trustee Mody, seconded by Trustee Pombo) passed on a roll call with five ayes and no noes.
The board’s action authorizes staff to approve related documents, engage municipal finance advisor Stifel and take necessary actions to complete the sale. Additional implementation steps will follow as staff executes bond sale documents and coordinates repayment to the city and developers.
