Information Item
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Business
Information Item |
| DATE: | Tuesday, August 12, 2014 |
| TO: | School Board Members |
| FROM: | MaryEllen Elia, Superintendent |
| SUBJECT / RECOMMENDATIONS | |
| Investment of Qualified School Construction Bonds (QSCBs), Series 2010B Sinking Fund Proceeds (Business Division) | |
| EXECUTIVE SUMMARY | |
| On October 26, 2010, the Board approved the issuance of $37,935,000 in QSCBs to replace roofs and heating ventilation and air conditioners (HVAC) for 36 schools and district facilities. The proceeds were spent within three years from the date of issuance as required by Internal Revenue Service regulations.
The district currently makes yearly payments to a debt service sinking fund for repayment of the bonds. The issuing documents allow for the investment of these sinking fund payments upon the advice of the district's Financial Advisor and Special Counsel. The district's Financial Advisor, Ford & Associates, will be accepting bids from various firms for the investment of these proceeds with the intent of reducing the debt service payments the district will need to make for repayment of the bonds. We will come back to the Board with bid results and the savings the district can expect. This agenda item has been reviewed as to legal form and sufficiency by John Stokes, Bond Counsel with Nabors, Giblin and Nickerson. A representative of our Financial Advisor, Ford and Associates, is present to answer any questions Board members may have. |
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| STRATEGIC OBJECTIVES | |
| • Align financial resources to support the district’s strategic goals • Demonstrate best financial practices | |
| FINANCIAL IMPACT (Budgeted: No) | |
| Investment of the monies in the sinking fund will result in a lowering of the overall amount due for the debt service on the bonds. A calculation of these savings will be presented to the Board after the bid process has been completed. | |
| EVALUATION | |
| SUBMITTED BY: Steve Brady, Assistant Department Manager for Cash Management | |
| Susan Garcia | Gretchen Saunders | |
| Manager Services and Support, Budget (813) 272-4064 |
Chief Business Officer (813) 272-4270 |
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| A 10.03 | ||
| Hillsborough County Public Schools (Florida) * Mtg.#20140812_638 (Board Meeting) * Section A Item# 10.03 | ||