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Low Cost, Tax-Exempt Financing Provided for Tuolumne County

The Bonds are being issued to provide funds to finance various public capital improvements and projects described below.

$18.7 Million (est. cost) for the Law & Justice Center.

This will pay for final improvements to the Mother Lode Regional Juvenile Facility, development of the Law & Justice Center road and utility infrastructure, and pay for the County’s match to construct the new County Jail. The useful life of the new jail is expected to be at least 40 years.

$3.11 Million (est. cost) for two Technology Projects.

This will pay for the purchase and installation of a replacement Enterprise Resource Planning system (Finance, Human Resources, and Budget) and to replace/upgrade the County’s computer network. The useful life of this technology is expected to be at least 10 years.

The proceeds of the Bonds will be used to finance these capital projects, fund costs of issuance and depending on market conditions, fund a reserve fund (including the costs of any municipal bond insurance policy and/or reserve fund surety policy).

The financing is being structured as a lease financing. In simplistic terms, the County is expected to lease four of its buildings for up to 31 years. The buildings include County Administration, the Albert N. Francisco Building, the Historic Yaney Courthouse, and the Sonora Library (although the County Administrator or such other officer or officers of the County designated for this purpose may designate additional or alternative sites to lease). During this time period, the County continues to have full use of the buildings for normal County business because the County will leaseback the buildings. The County will be obligated to pay rent under the lease in an amount equal to debt service on the Bonds, subject to the County having beneficial use and occupancy of the leased premises. The County will also be obligated to pay additional rent in an amount equal to the ongoing expenses related to the Bonds.   Following the bond payback, the buildings revert to the County.

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