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VVUHSD may borrow up to $19 million
Board of Supervisors may borrow funds on behalf of district
VICTORVILLE • The San Bernardino County Board of Supervisors is expected to vote on a resolution for the borrowing of up to $19 million on behalf of the Victor Valley Union High School District at Tuesday's meeting.
According to county spokesperson David Wert, the board is borrowing the money on behalf of the district because of the county’s ability to manage such a large and complex transaction. Wert said the county’s auditor, Larry Walker, has the experience and expertise to manage a loan of that size, which will be taken in the form of a Tax and Revenue Anticipation Note, or TRAN.
“It’s a very low interest, very economical way for governments to borrow,” Wert said. “Almost everybody takes out these notes, as they provide the cash flow needed for the district to pay off their bond debt.”
Wert said the Board of Supervisors is acting as an intermediary between the district and county and the mid-year note will give the district access to funds that wouldn’t otherwise be available for some time.
According to public documents, the district is obligated to repay the notes and there is no financial obligation on the part of the county to repay them.
The agenda item states the district did not have the option to participate in the financing pool due to a negative interim report and county authorization is required for the issuance of the TRAN on behalf of the district.
Lynnea Lombardo may be reached at (760) 951-6232 or at LLombardo@VVDailyPress.com.
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