Board Clears Way For School Districts To Issue Bonds On Their Own

RIVERSIDE COUNTY, CA — Qualifying community college and K-12 school districts in Riverside County now have the option to issue general obligation bonds with minimal involvement by the county, thanks to a policy change approved Tuesday by the Board of Supervisors.

In a 5-0 vote without comment, the board adopted a resolution that clears the way for governing boards of education to manage their own bond sales, as long as they have not been flagged by the county Office of Education for irregularities.

The new practice effectively takes the Office of the Treasurer-Tax Collector out of the front-end position of arranging bond issuances, according to county documents.

The change was facilitated by legislative adjustments to the California Education Code in 2013, as well as a relaxation of securities regulations, officials said.

Treasurer-Tax Collector Jon Christensen noted that the Office of County Counsel may continue to vet proposed bond sales to ensure the language in contracts between districts and underwriters passes legal muster, and the county will continue to collect and deposit funds from bond sales, in addition to performing custodial duties over accounts into which taxes are paid to cover the IOUs.

But the Board of Supervisors will no longer be required to formally vote on whether qualifying districts' issuances should be permitted.

The new policy takes effect immediately.

— By City News Service / Image via Shutterstock