Mountain View Whisman School District

Agenda Item for Board Meeting of 4/2/2020

Agenda Category:  REVIEW AND ACTION

Agenda Item Title:  Resolution No. 04-040220, Authorization for Issuance of Measure T Bonds (5 minutes)

Estimated Time: 

Person Responsible:  Rebecca Westover Ed.D., Chief Business Officer 

Background: 

An election was held in the Mountain View-Whisman School District on March 3, 2020 for the issuance and sale of general obligation bonds of the District for various purposes in the maximum amount of $259,000,000 (the “Measure T”). The District now desires to proceed with the first and second issuance of bonds under Measure T in an amount not-to-exceed $85,000,000 (the “Bonds”).

The Bonds are being authorized for the purpose of providing funds to (i) finance projects approved by Measure T, and (ii) pay the costs of issuing the Bonds.

(a) Bond Resolution. This Resolution authorizes the issuance of Bonds, specifies the basic terms, parameters and forms of the Bonds, and approves the form of Purchase Contract and form of Preliminary Official Statement described below. In particular, Section 1 of the Resolution establishes the maximum aggregate initial principal amount of the Bonds to be issued ($85,000,000).
Section 4 of the Resolution states the maximum underwriters’ discount (0.4%) with respect to the Bonds, the maximum legal interest rate on the Bonds, and authorizes the Bonds to be sold at a negotiated sale to the underwriter identified in the Purchase Contract (the “Underwriter”). The Resolution authorizes the issuance of current interest bonds only; capital appreciation bonds are not authorized. (b) Form of Purchase Contract. The Resolution approves the form of the Purchase Contract. Pursuant to the Purchase Contract, the Underwriter will agree to buy the Bonds from the District. All the conditions of closing the transaction are set forth in this document, including the documentation to be provided at the closing by various parties. Upon the pricing of the Bonds, the final execution copy of the Purchase Contract will be prepared following this form.
(c) Form of Preliminary Official Statement. The Resolution approves the form of the Preliminary Official Statement. The Preliminary Official Statement (the “POS”) is the offering document describing the Bonds which may be distributed to prospective purchasers of the Bonds. The POS discloses information with respect to, among other things, (i) the proposed uses of proceeds of the Bonds, (ii) the terms of the Bonds (interest rate, redemption terms, etc.), (iii) the bond insurance policy for the Bonds, if any, (iv) the security for repayment of the Bonds (the ad valorem property tax levy), (v) information with respect to the District’s tax base (upon which such ad valorem property taxes may be levied), (vi) District financial and operating data, (vii) continuing disclosure with respect to the Bonds and the District, and (viii) absence of material litigation and other miscellaneous matters expected to be of interest to prospective purchasers of the Bonds. Following the pricing of the Bonds, a final Official Statement for the Bonds will be prepared, substantially in the form of the POS. (d) Form of the Continuing Disclosure Certificate. The form of the Continuing Disclosure Certificate can be found in APPENDIX C to the POS. Effective July 3, 1995, all underwriters of municipal bonds are obligated to procure from any public agency issuing debt a covenant that such public agency will annually file “material financial information and operating data” with respect to such public agency through the web-based Electronic Municipal Market Access (“EMMA”) system maintained by the Municipal Securities Rulemaking Board (a federal agency that regulates “broker-dealers,” including investment bank firms that underwrite municipal obligations). This requirement is expected to be satisfied by the filing of the District’s audited financial statements and other operating information about the District, in the same manner the District has filed such

information in connection with prior bond issuances. The purpose of the law is to provide investors in the Bonds with current information regarding the District.