reconvene regular meeting: 7:00 pm - Irvine Unified School District

TABLE OF CONTENTS
INTRODUCTION...................................................................................................................................................................1
General ...............................................................................................................................................................................1
Sources of Payment and Security for the Note Participations ............................................................................................2
Additional Parity Notes......................................................................................................................................................3
SCLEA Pooled Tax and Revenue Anticipation Note Program ..........................................................................................3
Miscellaneous.....................................................................................................................................................................3
THE PARTICIPANTS ............................................................................................................................................................3
General ...............................................................................................................................................................................3
The Participants..................................................................................................................................................................4
THE TRANSACTION ............................................................................................................................................................4
DESCRIPTION OF THE NOTE PARTICIPATIONS ............................................................................................................5
SOURCES OF PAYMENT AND SECURITY FOR THE NOTE PARTICIPATIONS..........................................................5
The Notes ...........................................................................................................................................................................5
Pledged Revenues ..............................................................................................................................................................5
Additional Parity Notes......................................................................................................................................................6
Payment Accounts..............................................................................................................................................................7
Expedited Procedure for Deposits into Payment Accounts................................................................................................7
Cash Flow Projections........................................................................................................................................................7
Available Sources of Payment and Coverage Factors ........................................................................................................8
SUMMARY OF THE NOTE RESOLUTIONS ......................................................................................................................9
Covenants of the Participants.............................................................................................................................................9
Events of Default..............................................................................................................................................................10
Remedies..........................................................................................................................................................................11
INVESTMENT OF PARTICIPANT FUNDS .......................................................................................................................11
General .............................................................................................................................................................................11
Composition of the Educational Pool...............................................................................................................................15
Amendments to the County Investment Policy ................................................................................................................15
FINANCIAL INFORMATION REGARDING THE PARTICIPANTS................................................................................16
Financial Statements.........................................................................................................................................................16
Reports and Certifications................................................................................................................................................17
Major Revenues ...............................................................................................................................................................17
Ad Valorem Property Taxes..............................................................................................................................................19
Teeter Plan .......................................................................................................................................................................20
Federal Revenues .............................................................................................................................................................21
Insurance ..........................................................................................................................................................................21
State Budget .....................................................................................................................................................................21
LAO Analysis of the 2010-11 Proposed State Budget......................................................................................................26
Budgets of Participants ....................................................................................................................................................27
LIMITATIONS ON REMEDIES; AMOUNTS HELD IN COUNTY POOLS .....................................................................28
TAX MATTERS ...................................................................................................................................................................29
LITIGATION ........................................................................................................................................................................31
RATINGS..............................................................................................................................................................................31
LEGAL MATTERS ..............................................................................................................................................................32
UNDERWRITING ................................................................................................................................................................32
FINANCIAL ADVISOR .......................................................................................................................................................32
CONTINUING DISCLOSURE.............................................................................................................................................32
MISCELLANEOUS..............................................................................................................................................................33
APPENDIX A – THE PARTICIPANTS AND THE CASH FLOWS...................................................................... A-1
APPENDIX B – SUMMARY OF THE TRUST AGREEMENT ............................................................................B-1
APPENDIX C – COVERAGE ESTIMATES ..........................................................................................................C-1
APPENDIX D – FORM OF BOND COUNSEL APPROVING OPINION ............................................................ D-1
APPENDIX E – BOOK-ENTRY ONLY SYSTEM ................................................................................................E-1
APPENDIX F – CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES,
REVENUES AND APPROPRIATIONS ...................................................................................... F-1
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