Title
Adopt Resolution to:
a. Approve the local agency resolution and approve the borrowing of funds for fiscal year 2012-13; the issuance and sale of Tax and Revenue Anticipation Notes therefore, at the maximum legal amount, but not to exceed $65 million, through participation in the California Communities Cash Flow Financing Program (“CSCDA”), and;
b. Authorize the County Debt Manager to execute the required documents.
Body
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Adopt Resolution to:
a. Approve the local agency resolution and approve the borrowing of funds for fiscal year 2012-13; the issuance and sale of Tax and Revenue Anticipation Notes therefore, at the maximum legal amount, but not to exceed $65 million, through participation in the California Communities Cash Flow Financing Program, and;
b. Authorize the County Debt Manager to execute the required documents.
SUMMARY:
The County of Monterey requires short term financing to provide cash flows to fund operating expenditures due to delayed State funding, delay in property tax receipts, and increases in property tax delinquencies precipitated by the current economy and housing market difficulties. Research indicated the most efficient and lowest cost method of completing a cash flow borrowing was on a Competitive Sale Basis issued through the CSCDA Cash Flow Financing program.
DISCUSSION:
The County of Monterey is a member of the CSCDA, a joint powers authority sponsored by the California State Association of Counties and the League of California Cities, formed to provide local governments and private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth, and improve the overall quality of life in local communities throughout California. Over the past decade, CSCDA has only issued TRANs on a Negotiated Sale Basis, whereby underwriters are selected in advance who agree to purchase all of t...
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