Title
County Counsel recommending the Board adopt and authorize the Chair to sign Resolution 024-2025 authorizing the Black Oak Mine Unified School District to issue and sell, on its own behalf, general obligation bonds in an amount up to $12,700,000, which were authorized by the voters of the District on November 5, 2024.
FUNDING: N/A - Black Oak Mine Unified School District to issue bonds.
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DISCUSSION / BACKGROUND
On November 5, 2024, voters in the Black Oak Mine Unified School District (the “District”) considered a measure (Measure A) to authorize the issuance of up to $12,700,000 in general obligation bonds for the following purposes: “design, acquisition, installation, restoration and construction of public schools and school facilities and providing facilities improvements and upgrades, and related facilities costs, including, but not limited to, financing the following: modernizing, repairing and rehabilitating existing school facilities and adding certain new school facilities to meet current health, safety and instructional standards.” The measure was approved by more than the required 55% favorable vote. Pursuant to that measure, on January 16, 2025, the District’s Board of Trustees adopted Resolution No. 2024/2025-14, authorizing the issuance of bonds in the aggregate principal amount not to exceed $12,700,000. Additionally, that resolution served to formally request that the County Board of Supervisors consent to the District selling the bonds on its own behalf.
Historically, California community college district and school district bonds were issued by the county in which the districts were located. However, the California Education Code section 15140(b) now provides an alternative under which the Board of Supervisors can authorize such districts to issue and sell bonds in their own name if the district has not received a qualified or negative certification in its most recent interim report. The District represents that it has not received a qualified or negative certification in its most recent interim report. As such, the District requests that the Board authorize the District to sell the subject bonds on its own behalf without further action of the board of supervisors or officers of the County.
The County has received such requests in recent years and County Counsel, the Auditor-Controller, and the Treasurer-Tax Collector have agreed that it is preferable to allow the districts to issue bonds on their own behalf rather than having the county do so and potentially assuming risk or becoming involved in any disputes that might arise with respect to the bonds. This approach also avoids extensive county involvement in the actual preparation of the sale that would consume a significant amount of staff time.
ALTERNATIVES
The Board could deny the District’s request, decline to adopt the resolution, and instead have the County issue the bonds on behalf of the District, thus incurring administrative costs and potentially involving the County in any disputes that might arise related to the bond issuance.
PRIOR BOARD ACTION
Previous instances the Board of Supervisors authorized other districts to issue bonds on their own behalf include:
Legistar file 08-1175 - August 5, 2008 - The Board of Supervisors authorized El Dorado Union High School District to issue bonds on their own behalf.
Legistar file 12-1558 - January 8, 2013 - The Board of Supervisors authorized Pollock Pines Elementary School District to issue bonds on their own behalf.
Legistar file 21-1035 - June 29, 2021 - The Board of Supervisors authorized Lake Tahoe Community College District to issue bonds on their own behalf.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
The County Auditor-Controller and Treasurer-Tax Collector will work with the District to ensure proper collection and disbursement of taxes approved by the voters to fund the bonds.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
N/A
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board shall transmit one (1) certified copy of the fully executed Resolution to the District's Bond Counsel and one (1) copy each to County Counsel, the Treasurer-Tax Collector, and the Auditor-Controller.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
David A. Livingston, County Counsel