| | Background Information:
The Board approved adoption of a Resolution authorizing the issuance of the 2020 Lease-Purchase Financing in an amount not to exceed $12 million on May 14, 2020. Revenues derived by leasing district facilities will be used to repay this financing. The proceeds will be used to improve, repair and maintain district facilities. In other words, facilities will be used to pay for facilities. Use of these funds will be restricted solely for the purposes outlined in the financing documents. To ensure transparency and proper record keeping, CUSD will establish a new fund to track and monitor these activities. School districts, through action taken by the Governing Board, are authorized by Education Code section 42840 to establish a restricted fund known as the Special Reserve-Capital Projects Fund. Such funds provide for the accumulation of funds for capital outlay purposes. |