The Konocti school board has authorized selling the third and final series of bonds to be financed by Measure G. An increase in assessed valuation of properties accounts for an accelerated timeline for issuing the final set of bonds.
“The district”s assessed valuation grew by 10 percent as opposed to our projection of only 3 percent,” said Norma Guzman with Caldwell Flores Winters.
Approved by district voters in November 2004, Measure G authorizes the issuance of $18.5 million in bonds. The first series of bond, for $10.3 million, was sold in mid-November 2004. Based upon assessed valuation at the time of the first issue, the second series of bonds was projected to be sold in 2009 and the final series of bonds to be sold before 2014.
Assessed valuation was projected to increase at 3 percent, according to CFW, which serves as the district”s bond consultant. But assessed valuation increased at more than 3 times that rate, 9.28 percent.
At CFW”s recommendation, the board authorized selling the second set of bonds in November 2006. The advantage to taxpayers, according to CFW, is that property owners will experience a more constant annual rate rather than great fluctuations.
With assessed valuations continuing to be at 3 times the projected rate, authorization for the final set of bonds came before the school board on Wednesday, Sept. 5. The board unanimously approved a resolution that requests the Lake County Board of Supervisors to sell bonds of the district. The resolution additionally prescribes the use of the bond proceeds and approves use and distribution of an official statement and “certain other matters relating thereto.”
A bond finance report for the period ending June 30, 2007, states that Konocti has received in excess of $15 million in funds through the second of the three issuances and has spent more than $9.2 million on project costs to date.
Construction and modernization projects will, over time, total more than $40 million the finance report also states, with nearly one-half of these funds coming from Measure G.
Contact Cynthia Parkhill at cparkhill@clearlakeobserver.com.
