County of Monterey - File #: 16-800

• File #: 16-800
• Name: Stevenson TEFRA
• Type: General Agenda Item
• Status: Passed
• File created: 6/20/2016
• In control: Board of Supervisors
• On agenda: 7/12/2016
• Final action: 7/12/2016
• Title: a. Conduct a public hearing under the requirements of the Tax Equity and Financial Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended; and, b. Adopt a Resolution approving the issuance of tax-exempt revenue obligations by the California Enterprise Development Authority in an amount not to exceed $28,500,000 for the benefit of Robert Louis Stevenson School to refund $13,000,000 of variable rate bonds issued in 2001, $15,300,000 of variable rate bonds issued in 2011, issuance costs, and other matters relating thereto.

Date	Action By	Action	Result
7/12/2016	Board of Supervisors	approved	Pass

Title
a. Conduct a public hearing under the requirements of the Tax Equity and Financial Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended; and,
b. Adopt a Resolution approving the issuance of tax-exempt revenue obligations by the California Enterprise Development Authority in an amount not to exceed $28,500,000 for the benefit of Robert Louis Stevenson School to refund $13,000,000 of variable rate bonds issued in 2001, $15,300,000 of variable rate bonds issued in 2011, issuance costs, and other matters relating thereto.

Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Conduct a public hearing under the requirements of the Tax Equity and Financial Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended; and,
b. Adopt a resolution approving the issuance of tax-exempt revenue obligations by the California Enterprise Development Authority in an amount not to exceed $28,500,000 for the benefit of Robert Louis Stevenson School to refund $13,000,000 of variable rate bonds issued in 2001, $15,300,000 of variable rate bonds issued in 2011, issuance costs, and other matters relating thereto.

SUMMARY AND DISCUSSION:
Robert Louis Stevenson School, a California nonprofit public benefit corporation (the "Borrower") and the California Enterprise Development Authority (the "Authority"), have requested that the County conduct a TEFRA hearing and approve a resolution in accordance with Internal Revenue Code Section 147(f) authorizing the issuance of tax-exempt obligations by the Authority in an amount not to exceed $28,500,000. A TEFRA hearing is required by the Internal Revenue Code before tax-exempt debt can be issued for the benefit of a private nonprofit corporation. The hearing gives the public an opportunity to comment on the use of tax-exempt funds by the Borrower. The issuance of the obligations as tax-exempt will reduce financing costs and debt service costs for the Borrower.

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