Title
Adopt a Resolution authorizing the issuance of a Grant Anticipation Note in the name of the Mission Union Elementary School District and providing for the administration of related funds.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Adopt a Resolution authorizing the issuance of a Grant Anticipation Note in the name of the Mission Union Elementary School District and providing for the administration of related funds.
SUMMARY:
Grant Anticipation Notes (“GAN”) are statutorily defined short-term debt instruments generally issued by local public agencies to borrow funds against the expected future receipt of a specific grant. In the case of a school district, a GAN cannot be issued directly by the school district but must first be authorized by the County Board of Supervisors on the district’s adoption of a resolution requesting authority to enter into a loan agreement with a third-party lender.
The Mission Union Elementary School District (“District”) is a small, rural school district based in Soledad serving K-8 students. The District has obtained approval from the State Water Resources Control Board for funds (“Grant”) to use towards water system improvements (“Project”).
To fund the Project pending receipt of the Grant, the District desires to enter into a “Grant Anticipation Note/Loan Agreement” (“Loan Agreement”) with Rural Community Assistance Corporation (“Lender”). The County will not be a party to the Loan Agreement and will not take on the risk of lending or repaying any funds.
On August 10, 2026, Mission Union Elementary School District (“District”) adopted a “Resolution Requesting the County of Monterey Board of Supervisors to Issue a Grant Anticipation Note in the Name of the Mission Union Elementary School District in the Principal Amount of Not to Exceed $930,468 for the Purpose of Finalizing Water System Improvements and Authorizing Proceedings Relating to the Issuance and Sale of such Note” (...
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