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HomeMy WebLinkAboutGridley Unified School District Resolution �Qr "uellt,llz RESOLUTION NO.21 -0809 RESOLUTION OF THE BOARD OF TRUSTEES OFoLI��F e4 THE GRIDLEY UNIFIED SCHOOL DISTRICT C�Fo� iq AUTHORIZING BORROWING WHEREAS, pursuant to Sections 53850, et seg., of the Government Code of the State of California (the "Act") contained in Article 7.6 thereof, entitled "Temporary Borrowing," on or after the first day of any fiscal year (being July 1), the Gridley Unified School District (the "District") may borrow money by issuing notes in one or more series for any purpose for which the District is authorized to expend moneys, including, but not limited to, current expenses, capital expenditures, and the discharge of any obligation or indebtedness of the District; and WHEREAS, this Board of Education (the "District Board"), being the governing board of the District, hereby requests a loan of not to exceed Two Million Two Hundred Thousand Dollars ($2,200,000.00) at an interest rate not to exceed six percent (6%) per annum (the "Loan") through the issue by the Board of Supervisors of the County of Butte (the "County") of 2009-2010 Tax and Revenue Anticipation Note (the "TRANS") on behalf of the Butte County Office of Education (the "Oce"), and to evidence such loan by execution of its note(the"Note"); and WHEREAS, such Note is payable not later than fifteen months after the date of issue, and such Note shall be payable only from revenue received or accrued during the fiscal year 2009-2010 in which issued; and WHEREAS, pursuant to Section 53856 of the Act, the District may pledge any taxes, income, revenue, cash receipts, or other moneys deposited in inactive or term deposits (but excepting certain moneys encumbered for a special purpose) and this Resolution specifies that certain unrestricted revenues which will be received by the District for the General Fund of the District during or allocable to fiscal year 2009-2010 are pledged for the payment of the Note;and WHEREAS, the loan shall be a general obligation of the District, and to the extent not paid from the taxes, income, revenue, cash receipts, and other moneys of the District pledged for the payment thereof shall be paid with interest thereon from any other moneys of the District lawfully available therefor, as required by Section 53857 of the Act; and WHEREAS, the Note shall be issued on a date to be determined; and shall be in the form and executed in the manner prescribed in this Resolution, as required by Section 53853 of the Act; and WHEREAS, the District Board has found and determined that said $2,200,000.00 maximum principal amount of loan, when added to the interest payable thereon, does not exceed eighty-five percent (85%) of the estimated amount of the uncollected taxes, income, revenue (including, but not limited to, revenue from state and federal BR 21 -0809 TRANS governments), cash receipts and other moneys of the District which will be available for the repayment of the loan and interest thereon, as required by Section 53858 of the Act; and WHEREAS, The District Board has found and determined that the loan will not be issued to finance a working capital reserve and will be expended within the time period required as provided in the Income Tax Regulations of the United States Treasury; and NOW, THEREFORE, the Board of Education of the Gridley Unified School District hereby resolves as follows: Section 1. Findings. All of the above recitals are true and correct and the District Board so finds and determines. Section 2. Authorization of Issuance of Note, Terms Thereof; Paying Agent. The District Board hereby authorizes the borrowing from the Office of an amount not to exceed $2,200,000.00 principal amount and the issuance of a promissory note (the "Note") under Sections 53850, et seq., of the Act, to be dated the date of delivery thereof, to mature (without option of prior redemption) and to bear interest at the rate or rates as determined in accordance with the Issuance Resolution (defined below). Subject to Section 3 hereof, both the principal of and interest on the Note shall be payable in lawfid money of the United States of America at the principal office of the Butte County Treasurer/Tax Collector, Oroville, California, which is hereby designated by this Board as the paying agent for the Note(the "Paying Agent"). Section 3. Form of Note. The Note shall be substantially in the form and substance set forth in Exhibit A attached hereto and by reference incorporated herein, the blanks in said form to be filled in with appropriate words and figures. Section 4. Deposit of Loan Proceeds; No Arbitrage. The moneys so borrowed shall be initially deposited in the Treasury of the County in a proceeds fund to the credit of the Office and subsequently credited to the general fund of the District concurrently with the delivery of the District Note. Such funds are to be withdrawn, used or expended by the District for any purpose for which it is authorized to invest or expend funds from the general fund of the District, including, but not limited to current expenses, capital expenditures or the discharge of any obligation of indebtedness of the District. Until used or expended, the moneys may be invested in investment securities by the County Treasurer directly, or through an investment agreement, in investments as permitted by applicable California law, and meeting Standard and Poor's Ratings Services criteria for investments, or other investments approved by Standard and Poor's Rating Services including, but not limited to, investment in the Local Agency Investment Fund maintained by the Treasurer of the State of California. The District hereby covenants that it will make no use of the proceeds of the Note that would cause the Note to be "arbitrage bonds" under Section 148 of the Code; and, to that end, so long as the Note is outstanding, the District, and all of its officers having custody or control of such proceeds, shall comply with all requirements of (a) said section, including restrictions on the use and investment of proceeds of the Note and the rebate of a portion of investment earnings on certain amounts, including proceeds BR 21 -0809 TRANS of the Note, if required, to the Federal government, and (b) of the Income Tax Regulations of the United States Treasury promulgated thereunder or any predecessor provisions, to the extent that such regulations are, at the time, applicable and in effect, so that the Note will not be"arbitrage bonds" Section 5. Payment of Note. (A) Source of Payment. The principal amount of the Note, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts, and other moneys which are received by the District during fiscal year 2009-2010 and which are available therefor. The Note shall be a general obligation of the District, and, to the extent the Note is not paid from the Pledged Revenues defined below, the Note shall be paid with interest thereon from any other moneys of the District lawfully available therefor, as provided herein and by law. (B) Pledged Revenues. As security for the payment of the principal of and interest on the Note, the District hereby pledges an amount equal to the principal amount of the Note from the unrestricted revenues received by the District in the months designated as deposit dates by the Butte County Superintendent of Schools (the "Superintendent") as provided in the resolution authorizing the issuance of the TRANS (the "Issuance Resolution"), plus an amount sufficient to pay interest on the Note, from unrestricted revenues received by the District (such pledged amounts being hereinafter called the "Pledged Revenues"). The term "unrestricted revenues" shall mean taxes, income, revenue, cash receipts, and other money of the District as provided in Section 53856 of the Act, which are intended as receipts for the general fund of the District and which are generally available for the payment of current expenses and other obligations of the District. The principal of the Note and the interest thereon shall be a first lien and charge against and shall be payable from the first moneys received by the District from such Pledged Revenues,as provided by law. In the event that there are insufficient unrestricted revenues received by the District to permit the deposit with the County Treasurer of the full amount of Pledged Revenues to be deposited from unrestricted revenues in a month, then the amount of any deficiency shall be satisfied and made up from any other moneys of the District lawfully available for the repayment of the Note and the interest thereon. (C) Deposit of Pledged Revenues in Repayment Fund. The District shall deposit Pledged Revenues in the County treasury in a special fund designated as the "Gridley Unified School District 2009-2010 Tax and Revenue Anticipation Note Repayment Fund," (herein called the "Repayment Fund") established pursuant to the established pursuant to the resolution of the County Board authorizing the issuance of the TR.ANs (the "Issuance Resolution") and applied as directed in the Issuance Resolution. Any moneys placed in the Repayment Fund shall be for the benefit of the holders of the Note, and until the Note and all interest thereon are paid or until provision has been made for the payment of the Note at BR 21 -0809 TRANS maturity with interest to maturity, the moneys in the Repayment Fund shall be applied only for the purposes for which the Repayment Fund is created. (D) Disbursement of Moneys Deposited with Treasurer. From the date this Resolution takes effect, all Pledged Revenues shall, when received, be deposited in the Repayment Fund to be held, invested and accounted for as provided herein. After such date as the amount of Pledged Revenues deposited in the Repayment Fund shall be sufficient to pay in full the principal of and interest on the Note, when due, any moneys in excess of such amount remaining in or accruing to the Repayment Fund shall be transferred to the General Fund of the District upon the request of the District. On the payment due dates of the Note, the moneys in the Repayment Fund shall be used, to the extent necessary, to pay the principal of and/or interest on the Note. in accordance with Government Code Section 53857, the District shall make up any deficiency from any other money of the District lawfully available for the payment of the Note and the interest thereon. Section 6. Execution of Note. The Treasurer, or designated deputy thereof, is hereby authorized to sign the Note manually or by facsimile signature; the Clerk of the County Board (the "Clerk") to countersign the Note manually or by facsimile signature; and said officers to cause the blank spaces thereof to be filled in as may be appropriate. Section 7. General. All actions heretofore taken by the officers and agents of the District Board with respect to the Note are hereby approved, confirmed and ratified, and the officers of the District Board are hereby authorized and directed to do any and all things and take any and all actions which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Note in accordance with this Resolution. Section 8. Further Actions Authorized. It is hereby covenanted that the District Board, and its appropriate officials, have duly taken all proceedings necessary to be taken by them, and will take any additional proceedings necessary to be taken by them, for the levy, collection and enforcement of the secured property taxes pledged under this Resolution in accordance with the law and for carrying out the provisions of this Resolution and the Issuance Resolution. Section 9. Covenants. The District Board and its officers, agents and employees hereby covenant to comply with the liens of this Resolution and the Issuance Resolution. Section 10. Transmittal of Resolution. The Clerk is hereby directed to send a certified copy of this Resolution to the County Board, the Treasurer and the County Superintendent of Schools. BR 21 -0809 TRANS PASSED AND ADOPTED by the Board of Education of the Gridley Unified School District this 6th day of May,2009,by the following vote: AYES: 5 NOES: 0 ABSENT: 2 President,Board of Trustees Gridley Unified School District Attest: Secretary of the Board of Education, Gridley Unified School District BR 21 -0809 TRANS EXHIBIT A [ATTACH SPECIMEN NOTEI SECRETARY'S CERTIFICATE Certified Copy of Resolution Adopted on May 6, 2009 I, Clark S. Redfield, hereby certify that I am the Superintendent and Secretary of the Board of Education of the Gridley Unified School District (the "District"), school district organized and existing under and by virtue of the Constitution and laws of the State of California and that as such I am authorized to execute this Certificate on behalf of the District. I hereby further certify that attached hereto is a complete copy of a resolution which was duly adopted by the Board of Education of the District at a meeting thereof which was duly called and held on May 6, 2009, and at such meeting a quorum was present and acting throughout, and that said resolution has not been amended, modified or rescinded since the date of adoption and is now in full force and effect. Dated: May 6,2009 GRIDLEY UNIFIED SCHOOL DISTRICT By: l Superintendent