City to Hold Hearing for Pasadena Private School Funding Request

Published : Monday, November 18, 2019 | 6:08 AM

The Pasadena City Council will conduct a public hearing on Monday into a request by The Sequoyah School, a private school in Pasadena, for the California Municipal Finance Authority (CMFA) to provide the school with proceeds of $3 million in tax-exempts bonds.

The bonds will be used to refinance an earlier $2.3 million loan which the school used to finance the construction of classroom facilities on its campus at 535 South Pasadena Ave. in Pasadena, and to purchase vans for student transportation.

The money also provide about $700,000 the school will use for the acquisition, construction, equipping and/or improvement of its facilities and to buy related equipment, a report by the Pasadena Department of Finance said.

In accordance with the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), the Pasadena City Council is obligated to conduct the public hearing so that community members can have their say in favor of or against the use of tax-exempt bonds for financing The Sequoyah School’s request, the report said.

At the end of Monday’s public hearing, the City Council may adopt a resolution approving the financing to be undertaken by the CMFA for The Sequoyah School.

The Sequoyah School is a K-12 independent school located on two campuses in Pasadena – one at 535 S. Pasadena Avenue, which houses K-8 classes, and another at 301 N. Orange Grove Blvd., housing the high school (Grades 9-12) classes.

The CMFA, created on January 1, 2004, assists local governments, non-profit organizations, and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California.

Over 300 municipalities throughout California, including the City of Pasadena, are members of the CMFA.

Explaining the fiscal impact to the City if the City Council passes the resolution approving the financing by CMFA, the Finance Department said any costs incurred for staff and outside counsel time will be reimbursed by CMFA or The Sequoyah School as part of the proposed financing scheme.

No operational City programs no capital projects will be impacted by the action, the Finance Department said.

The proposed obligations from the CMFA will be The Sequoyah School’s sole responsibility, and the City will have no financial or legal obligations for any matter related to the proposed bonds.

The public hearing at the City Council meeting on Monday will be at around 7 p.m. at the Pasadena City Hall.

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