California General Obligation Bonds
According to California law, when a community wishes to issue general obligation bonds to fund a public project, two-thirds (55% for certain school and community college districts) of the voters must approve the offering. Approval by the voters allows the municipality or special district to include bond repayment as part of property tax levy. Since Proposition 13 was implemented in California, general obligation bonds (GOs) are most frequently used to fund school and community college building projects. Other capital projects are often funded using other mechanisms, such as certificates of participation, revenue bonds or land secured bonds.
Experienced and Knowledgeable
The Weist Law Firm is typically involved in financing campaigns from beginning to end. Our firm has been involved in many GO financings since 1989 and uses his experience, knowledge and access to information to advise and counsel cities, counties, states, school districts, community college districts, and special districts seeking to issue general obligation bonds. In addition to acting as bond counsel or disclosure counsel when needed, our firm represents underwriters and trustees involved in GO bond offerings.
The Weist Law Firm is proud of its involvement with the successful passage of Proposition 39, which amends portions of the California Constitution to provide for the issuance of general obligation bonds by school districts, community college districts, or county offices of education "for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of real property for school facilities" upon approval by 55% of the electorate.
Helping with the Elections Required to Issue General Obligation Bonds
Under Proposition 13, issuing an unlimited-tax general obligation bond requires two-thirds of voters (55% for certain school and community college districts) to approve the increased tax levy that would result from approval. Our firm assists with polling, voter education campaigns and other activities needed to ensure that the ballot initiative is successful. In addition, our firm is responsible for drafting all documents, attending all meetings and ensuring that the legal process moves forward smoothly and that each of our clients secure the financing needed.
If your school district or municipality is considering issuing a general obligation bond financed by a tax levy, you should contact the Weist Law Firm, Los Gatos, California. Call us at 831-438-7900 or contact us online to learn more about your options.
Serving California Municipalities Since 1989 – Weist Law.