Approve Issuance of Qualified School Construction Bonds (QSCBs), Series 2010 (Business Division)

1. Adopt the Board Certificate Resolution authorizing the lease of various educational facilities from the Hillsborough County School Board Leasing Corporation in connection with the lease-purchase financing.
2. Recess as members of the School Board, and convene as the School Board Leasing Corporation.
3. Adopt the Corporate Resolution authorizing the lease-purchase of various educational facility projects.
4. Adjourn as members of the School Board Leasing Corporation and reconvene as the School Board.

Qualified School Construction Bonds (QSCBs) are a U.S. debt instrument created by Section 1521 of the American Recovery and Reinvestment Act of 2009, as amended. QSCBs allow schools to borrow at or near zero percent for the rehabilitation, repair, and equipping of schools. The District will receive a federal subsidy on each interest payment date in an amount equal to the lesser of the interest payment on the QSCBs or the tax credit rate applicable thereto. The proceeds must be spent within three (3) years of the date of issuance or severe penalties will be imposed.

The District is looking to use the 2010 allocation to issue approximately $37,935,000 of QSCBs. The anticipated sale date is late October / early November 2010. The proceeds will be used to replace roofs and HVACs at up to 36 schools and district facilities (see attached list).

This agenda item has been reviewed as to legal form and sufficiency by John Stokes, Bond Counsel. Mr. Stokes is present today to assist the Board in this endeavor. In addition, Mr. Jerry Ford, Financial Advisor, is also present to answer any questions the Board may have.

* Align financial resources to support the district’s strategic goals, * Demonstrate best financial practices, * Construct and maintain facilities that create an environment conducive to teaching and learning

Qualified School Construction Bond proceeds not to exceed $37,935,000 will be issued and repaid from capital outlay millage. The costs associated with issuing the bonds will be included in the issue amount.