Hillsborough County Public Schools Business
Action Item

DATE: Tuesday, February 27, 2007
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Advance Refunding of a Portion of the District's Outstanding Sales Tax Revenue Bonds, Series 2002.
Adopt the Delegated Award Resolution Authorizing the Issuance of Not Exceeding $50,000,000 Aggregate Principal Amount of Sales Tax Revenue Refunding Bonds, Series 2007 (the exact amount of the issue to be determined by market conditions at the time of the sale). (Business Division)

EXECUTIVE SUMMARY

In January 2002, the District issued $235,585,000 of Sales Tax Revenue Bonds, Series 2002 to be repaid with our portion of the Community Investment Tax. Jerry Ford, the District's Financial Advisor, has provided an analysis showing current market conditions will allow the District to realize present value savings of $1.5 million or 3.3% by advance refunding approximately $45.4 million of such bonds. The savings will result in a reduction of the debt that must be repaid by the Community Investment Tax and will provide an increase in our future bonding capacity to build new schools. To take advantage of market conditions, a Delegated Award resolution is required. This will authorize the Chair and Superintendent to approve the sale of the bonds, provided the requirements set forth in the resolution and recommendations of the financial advisor are met. The anticipated refunding will take place in late March 2007 by competitive sale dependent upon market conditions.

ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)

Other: To achieve the "Seal of Best Financial Management".

FINANCIAL IMPACT (Budgeted: No)

Approximate net present value savings of $1.5 million will be realized over the life of the outstanding bonds with current market conditions. Such net present value savings are inclusive of legal and other professional costs associated with the refunding.

EVALUATION

N/A

SUBMITTED BY: Steve Brady, Assistant Department Manager, Cash Management

Susan Garcia
Manager of Service and Support, Budget
(813) 272-4064
Gretchen Saunders
Chief Business Officer
(813) 272-4064
5.10
Hillsborough County Public Schools (Florida) * Mtg.#20070227_233 * Section E Item# 5.10