Title
Auditor-Controller recommending the Board adopt Resolution 093-2012, which authorizes the Board Chair, the Auditor-Controller, the CAO, and the Treasurer-Tax Collector to sign various documents necessary to issue the CFD 1992-1 (Serrano) 2012 Refunding Bonds. The resolution authorizes the County staff to issue a public offering statement that will be used by potential bond investors to decide whether to buy or sell these refunding bonds.
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Fiscal Impact
This item is unlikely to have any impact on the County General Fund. The only foreseeable circumstance that would make the County partially responsible for debt service payments or damages to bond investors would be if an error or omission is made by the County in the
formation of the district, in the preparation of the offering statement, in the ongoing SEC required disclosures, or in the administration of the community facilities district.
Reason for Recommendation
There is approximately $55,000,000 of Serrano Mello Roos bonds currently outstanding. These bonds were issued in 1999 and 2004. Interest rates have dropped significantly since these bonds were issued. Because interest rates have dropped, it appears that at this time it is advantageous to the property owners in the district if these bonds are refunded (refinanced). In order to refinance these bonds a Preliminary Offering Statement has been prepared.
The Preliminary Official Statement has been reviewed and approved for transmittal to the Board of Supervisors by County staff and its financing team. The distribution of the Preliminary Official Statement by the County is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require the Preliminary Official Statement to include all facts that would be material to an investor in the refunding bonds. Material information is information that there is a substantial likelihood would have actual significance in the deliberations o...
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