COMPLETED RESOLUTION NO. 10-2�_66.3
Before the Board of Supervisors in and for the
County of Monterey, State of California
Resolution No: 10 235; Budget No: 10/11 015
Resolution confirming the authorization of the
borrowing of funds for Fiscal Year 2010-11 as set
forth in Resolution No. 10-109.
WHEREAS, the Board of Supervisors the Board") of the County of Monterey
the County") previously adopted Resolution No. 10-109 on April 27, 2010 Resolution No.
10-109"), authorizing and approving the borrowing of funds in a maximum principal amount of
not-to-exceed $95,000,000 for Fiscal Year 2010-2011, the issuance and sale of a 2010-2011 tax
and revenue anticipation note in connection with such borrowing the Note") and participation
in the California Communities Cash Flow Financing Program; and
WHEREAS, the documentation presented to the Board accompanying Resolution
No. 10-109 inadvertently states a different not-to-exceed maximum principal amount of the
Note;
NOW, THEREFORE, this Board hereby finds, determines, declares and
resolves as follows:
Section 1. Recitals. The above recitals are true and correct.
Section 2. Confirmation of Amount. The authorized maximum principal
amount of the Note, as set forth in Resolution No. 10-109 of not-to-exceed $95,000,000, is
hereby confirmed.
Section 3. Effective Date. This Resolution shall take effect from and after its
date of adoption.
PASSED AND ADOPTED on this 27th day of July, 2010, upon motion of Supervisor Parker,
seconded by Supervisor Armenta, by the following vote, to-wit:
AYES: Supervisors Armenta, Calcagno, Salinas, Parker, Potter
NOES: None
ABSENT: None
I, Gail T. Borkowski, Clerk of the Board of Supervisors of the County of Monterey, State of California, hereby
certify that the foregoing is a true copy of an original order of said Board of Supervisors duly made and entered in
the minutes thereof of Minute Book 75 for the meeting on July 27, 2010.
Dated: July 29, 2010 Gail T. Borkowski, Clerk of the Board of Supervisors
County of Monterey, State of California
By
eputy
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SIGNED BOARD REPORTX��"�aMONTEREY COUNTY BOARD OF SUPERVISORS
MEETING: July 27, 2010
AGENDA NO: 3
SUBJECT: Adopt the attached restated local agency resolution, originally approved on April 27,
2010, authorizing and approving the borrowing of funds for fiscal year 2010-11, the issuance and
sale of a 2010-11 Tax and Revenue Anticipation Note TRAN") therefore increasing the
maximum approved TRAN borrowing to the legal limit, but not to exceed $55 million through
the issuance and sale of Tax and Revenue Anticipation Notes. The original financing team
remains intact.
DEPARTMENT: Auditor-Controller
RECOMMENDATION:
Adopt the attached restated local agency resolution, originally approved on April 27, 2010,
authorizing and approving the borrowing of funds for fiscal year 2010-11, the issuance and
sale of a 2010-11 Tax and Revenue Anticipation Note TRAN") therefore increasing the
maximum approved TRAN borrowing to the legal limit, but not to exceed $55 million
through the issuance and sale of Tax and Revenue Anticipation Notes. The original
financing team remains intact.
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 a dramatic increase
in property tax delinquencies precipitated by the slowing economy and the current housing
market difficulties. During previous years, it has been determined that the California State
Communities Development Authority CSCDA") pooled program has provided the lowest cost
method of providing cash flow borrowing. Recent interpretations or IRS regulations have
significantly limited the County's TRAN borrowing ability, requiring staff to explore more
creative and less costly methods of financing cash flow borrowing.
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. An application for
participation has been submitted on behalf of Monterey County by the debt manager for
participation in the 2010-11 TRAN program. On April 27, 2010, the Board of Supervisors
approved financing documents allowing a cash flow borrowing of up to $30 million. Recent
improvements in cash monitoring provided by the ERP project implementation have resulted in
an increase in the maximum TRAN size. The resolution format is supplied by CSCDA. The
resolution authorizes various financing documentation, including a purchase agreement and a
trust agreement which is on file in the Auditor-Controller's office. The resolution authorizes the
Auditor-Controller, Treasurer, and CAO to sign financing documentation in connection with the
issuance of the TRANs. The resolution also appoints the law firm of Orrick, Herrington, and
Sutcliffe as bond counsel to the County of Monterey.
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SIGNED BOARD REPORTX��"�aOTHER AGENCY INVOLVEMENT:
The Budget Committee and the County Administrative Office have been kept apprised of the
potential TRAN issuance.
FINANCING:
Utilizing a projected coupon rate of 2.0% on an assumed $45 million issuance, the expected
yield ranges between 0.50% and 0.85%, depending upon market conditions at time of pricing.
The resulting estimated interest cost totals less than $400,000, with the cost of issuance, letter of
credit, and legal expenses estimated at $145,000. Investment of the proceeds will be determined
at the time of issuance, but may be placed in either the Treasury Pool, another approved pooled
investment, or some other investment vehicle like a guaranteed investment contract. For
conservative estimate purposes, the investment calculations will assume an annualized return of
50%. Net County Cost of the borrowing is estimated to be $325,000 the cost of which is
budgeted in FY 2010-11 in Auditor Controller Department budget Fund 1 Unit 8009.
Approved by:
Michael J. Millfr, $PA, CISA
Auditor-Contro
Date: July 14, 2010
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