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File #: 21-1018    Version: 1
Type: Agenda Item Status: Approved
File created: 6/9/2021 In control: Board of Supervisors
On agenda: 6/22/2021 Final action: 6/22/2021
Title: Chief Administrative Office recommending the Board decline to authorize the issuance of Tax and Revenue Anticipation Notes (“TRANs”) on behalf of various school districts, thus allowing those school districts to issue such TRANs in their own name. FUNDING: N/A
Attachments: 1. A - TRAN Notification Letter, 2. B - Memo declining TRANS authorization, 3. C - Executive Summary, 4. D - Resolutions
Title
Chief Administrative Office recommending the Board decline to authorize the issuance of Tax and Revenue Anticipation Notes (“TRANs”) on behalf of various school districts, thus allowing those school districts to issue such TRANs in their own name.

FUNDING: N/A
Body
DISCUSSION / BACKGROUND
On June 23, 2020, with Legistar item 20-0805, at the request of various local school districts, the Board of Supervisors took action to allow those school districts to issue Tax and Revenue Anticipation Notes (“TRANs”) for Fiscal Year 2020/2021. On February 9, 2021, with Legistar item 21-0154, the Board took action to allow some of those districts to issue another series of TRANs for Fiscal Year 2020/2021 up to an increased maximum cumulative amount. On May 26, 2021, County Counsel and the Treasurer-Tax Collector received a letter on behalf of the El Dorado Union High School District and the Lake Tahoe Unified School District (collectively referred to herein as the “Districts”) notifying the County of their desire to issue a new series of TRANs for Fiscal Year 2021/2022 in the following cumulative maximum amounts:

• El Dorado Union High School District: maximum amount of $15,000,000
• Lake Tahoe Unified School District: maximum amount of $7,000,000

TRANs are a form of short-term borrowing used to manage cash flow when revenues and expenditures are uneven over the course of a fiscal year. Though the notes may mature up to fifteen months after issuance, they are payable solely from the revenue received or accrued during the fiscal year within which they are issued. Additionally, such notes are limited to an amount up to 85% of the issuer’s estimated taxes to be collected, income, revenue, cash receipts, and other moneys available for making note payments.

The procedure to authorize issuance of TRANs is set forth in Government Code section 53853. It provides that, for school districts that have not been accorded fiscal accountability status, the notes may be issue...

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