Student/Staff/Community Recognitions or Presentations

The District’s Measure R was approved by District voters on November 8, 2016, authorizing the District to issue general obligation Bonds in the amount of up to $39 million.  The first phase of financing was obtained with Series A Bonds issued in July of 2017 in the amount of $10 million, leaving $29 million unissued.  The Resolution for consideration begins the process of obtaining the second and final phase of financing, with the issuance of Series B Bonds in the amount of $29 million.

The Resolution, previously presented as an informational item on March 6, 2018, authorizes the Bonds to be issued as tax-exempt general obligation bonds pursuant to California law.  The resolution authorizes the Bonds to be issued as current interest bonds, convertible capital appreciation bonds, and capital appreciation bonds.  Under California law, when bonds that compound interest are proposed, the resolution must first be presented to the Board as an information item, and at the next meeting may be voted upon.  Items required to be disclosed to the Board relating to the bond structure are included in Appendix B to the Resolution. 

The Resolution authorizes the Bonds to be sold directly to Stifel, Nicolaus & Co., Inc, as underwriter, with the responsibility of buying all of the bonds and placing them with investors and funds.  The Resolution authorizes the District officials to work with the financing team and bring into final form and execute documents needed to complete the financing, in accordance with legal requirements and the Resolution.

 (1)  Official Statement:  The Preliminary Official Statement (the “POS”) is the document that will be circulated to potential investors in the bonds.  The POS describes to investors the terms of the bonds (principal maturity amounts and dates, interest payment dates), and the security for the bonds (ad valorem taxes levied and collected in the District in a sufficient amount to pay debt service coming due in each fiscal year on the bonds), describes the District’s tax base, and also presents District financial information to provide an investor with information regarding the District’s overall financial health.  The POS must contain all material information regarding the Bonds, and not contain misstatements or omissions. The Resolution delegates authority to the District’s staff to make changes to the POS following approval but before the Preliminary Official Statement is printed and distributed to investors.

 (2)  Bond Purchase Agreement.  This document sets forth all of the terms of the sale of the bonds to the Underwriter.  Under the Resolution, this item shall only be signed by a District Representative on the sale date if all legal parameters are met, as confirmed by the District’s Bond Counsel and Financial Advisor.

 (3)  Continuing Disclosure Certificate.  Under the Resolution, the District covenants to comply with the terms of the Continuing Disclosure Certificate, which is attached to the POS as Appendix E.  This imposes annual and significant events filing requirements on the District during the life of the Bonds in order to keep the bond market informed.  Continuing disclosure filings are typically administered by a dissemination agent retained by the District to ensure prompt compliance with this obligation.  The District has retained Isom Advisors, a Division of Urban Futures, Inc. to assist it with its annual and significant event filings.

Adopt the resolution as presented.

Direct staff to proceed with one of the following two options:

Option 1 -  Sell $21 million in GO Bonds today, with the remaining $8 million in authorization expected to be sold in 2023

Option 2-   Sell $27 million in GO Bonds today, with the remaining $2 million in authorization expected to be sold in 2027 (or all $29 million dependent on interest rates and with a debt waiver)

Up to $29 million will be received from the sale of bonds that will be used to fund the projects previously approved by the Board.

Staff is presenting a resolution to close the Pupil Transportation Fund (Fund 1500).  This fund is used to account separately for state and local revenues specifically for the acquisition, rehabilitation, or replacement of equipment used to transport students (Education Code Section 41852[b])   The District's transportation services are accounted for in the general fund and not impacted by the closure of this fund.

The Pupil Transportation Fund is no longer needed.  There is a small balance of $215.75 that will be transferred to the General Fund upon board approval to close the fund.

Staff recommends that the Board adopts the resolution as presented to close the Pupil Transportation Fund (Fund 1500).

$215.75 plus any interest postings for the quarter ended 3-31-2018, will be transferred from Fund 1500 to the General Fund.

Staff is presenting a resolution to close the Special Reserve for Other than Capital Outlay Projects. (Funds 1701 and 1702)   These funds are used primarily to provide for the accumulation of general fund moneys for general operating purposes other than for capital outlay (Education Code Section 42840). Amounts from this special reserve fund must first be transferred into the general fund or other appropriate funds before expenditures may be made (Education Code Section 42842). 

Although this fund is authorized by statute, it does not meet the GAAP definition of a special revenue fund; it functions effectively as an extension of the general fund. For presentation in the audited financial statements, this fund may either be combined with the general fund or be reported separately and the departure from GAAP explained.

The District's independent auditor requested that the District post an audit adjustment to transfer the balances from the Special Reserve for Other than Capital Outlay Projects (Funds 1701 and 1702) to the General Fund.  That audit adjustment has been posted and there is currently a zero balance in Funds 1701 and 1702.   

Staff recommends that the Board adopt the resolution as presented to close the Special Reserve for Other than Capital Outlay Projects Funds (Fund 1701 and 1702).

Any interest posting to Funds 1701 or 1702 for the quarter ended March 31, 2018, will be moved to the General Fund.

Staff is presenting a resolution to close the Special Reserve Fund for Postemployment Benefits (Fund 2000).

Special Reserve Fund for Postemployment Benefits. This fund may be used pursuant to Education Code Section 42840 to account for amounts the LEA has earmarked for the future cost of postemployment benefits but has not contributed irrevocably to a separate trust for the postemployment benefit plan. Amounts accumulated in this fund must be transferred back to the general fund for expenditure (Education Code Section 42842). If the LEA pays for its postemployment benefit costs entirely on a pay-as-you-go basis, there is no need to use this fund.

Although this fund is authorized by statute, it does not meet the GAAP definition of a special revenue fund; it functions effectively as an extension of the general fund. For presentation in the audited financial statements, this fund may either be combined with the general fund or be reported separately and the departure from GAAP explained.

The District's independent auditor requested that the District post an audit adjustment for the fiscal year ended June 30, 2017, to move the balance in the Special Reserve for Postemployment Benefits (Fund 2000) to the General Fund.  That audit adjustment has been posted and the balance in Fund 2000 is now zero.

The District uses the pay-as-you-go method for postemployment benefits such that Fund 2000 is not needed.

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Staff recommends that the Board adopt the resolution to close the Special Reserve Fund for Postemployment Benefits (Fund 2000).

Any interest posting to Fund 2000 for the quarter ended March 31, 2018, will be moved to the General Fund.

Staff is presenting a resolution to close several unneeded Building Funds.  The District has historically opened a separate building fund to account for each bond issuance. Due to the timing of the final use of each fund, small interest earnings have been posted and need to be cleared to the General Fund in order to close each of these building funds.  Note that several projects completed with these building funds also required general fund support.

The projects funded through Building Funds 2101, 2104, 2105, 2106, 2107 and 2108 have all been completed such that the Funds are no longer needed.

The District will keep open Fund 2111 which is the building fund used to account for Measure R.

Staff recommends that the Board adopt the resolution to close Building Funds 2101, 2104, 2105, 2106, 2107, and 2108.

The following current balances, plus any interest posted for the quarter ending March 31, 2018, will be transferred to the General Fund:

Fund 2101         $.04

Fund 2104      $30.81

Fund 2105      $47.22

Fund 2106    $148.21

Fund 2107      $62.46

Fund 2108  $2,613.82

The District has done a diligent search to find a fully credentialed Multiple Subject teacher and was unsuccessful. Ms. McCarty needs to be placed on a Provisional Internship Permit for Multiple Subject. Ms. McCarty qualifies for the Provisional Internship Permit with the required units and degree. Ms. McCarty has her Bachelor’s degree, has passed the CBEST and will be scheduling test dates to take the CSET’s. She will be enrolling in a credential program to work towards earning her Multiple Subject Credential. This Provisional Internship Permit is a bridge document that will allow Ms. McCarty time to take and pass the CSET’s and complete the necessary requirements to become an intern. We are recommending approval of the Provisional Internship Permit for Ms. McCarty.  Due to the shortage of teachers and our location, we recommend approval.

District administration recommends approval. 

There is no financial impact.

The District must submit a Declaration of Need for Fully Qualified Teachers each year to the California Commission on Teacher Credentialing.  This document gives the CCTC an estimate on how many emergency permits and limited assignment permits we will need for the 2018-19 school year.

District administration recommends approval. 

There is no financial impact. 

(Pursuant to Government Code §54957) - Title: Superintendent