Thursday, March 3, 2016
In 1990, the Board of Trustees of the Sweetwater Union High School District (“Sweetwater School District”) and the Yucaipa Joint Unified School District (“Yucaipa School District”) took actions to form the Y/S School Facilities Financing Authority (“Authority”) as a joint exercise of powers agency, organized and operating under certain provisions of the California Government Code (the “Joint Powers Act”).
The Authority was formed for the purpose of facilitating of public capital improvements for both the Sweetwater School District, the Yucaipa School District and other local school districts in southern California.
The Authority is governed by a Board of Directors (“Authority Board”), which consists of the Superintendent of the Sweetwater School District and the Superintendent of the Yucaipa School District. Dr. Janney has delegated her authority to represent the District to Ms. Michel.
The Authority principally acts as a conduit issuer for local school district (including the Sweetwater School District) for purposes of issuing bonds and securities through the provisions of the Marks-Roos Local Bond Pooling Act of 1985, as amended (“Marks-Roos Act”). The Authority has acted as a conduit issuer for various local agencies (including the Sweetwater School District) and other school districts. As of this time most of the outstanding bonds of the Authority have previously been refunded or satisfied at maturity. Sweetwater’s 1997 Certificates of Participation which were authorized under the Authority, were refunded in 2013 when the District’s own authority replaced the Y/S Authority.
Currently, the Chula Vista Elementary School District (“Chula Vista School District”), which issued securities through the Authority (but who is not a party to the Authority) in 1997, is undertaking to refinance those securities such that they will no longer utilize the Authority as issuer. These are certificates of participation securities and will be called (prepaid) pursuant to their terms on September 1, 2016. The Authority has been requested by the Chula Vista School District finance team to adopt a resolution to consent to the Chula Vista School District refunding and to execute various escrow agreements as part of the Chula Vista School District’s refinancing effort. This will involve minimal effort on behalf of Sweetwater School District staff to facilitate the Authority’s pre-payment of its existing bonds (which will principally be carried out by the Chula Vista School District and the Chula Vista School District finance team, and will act to remove outstanding bonded indebtedness as an obligation of the Authority).
A copy of the proposed Authority Resolution and Escrow Agreements will be posted on the Sweetwater School District’s website as one of the participating member agencies of the Authority.
In order to satisfy the requirements of the Ralph M. Brown Act, relative to meetings of public agencies, both the Sweetwater School District and the Yucaipa School District will need to post notice of the meeting of the Authority Board on their respective websites.
The meeting of the Authority Board will not involve any meeting(s) or obligations of the Sweetwater School District’s Board of Trustees.
If there are any questions, they can be answered at the meeting.