Action Item
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Business
Action Item |
| DATE: | Tuesday, March 3, 2015 |
| TO: | School Board Members |
| FROM: | MaryEllen Elia, Superintendent |
| SUBJECT / RECOMMENDATIONS | |
| Authorization to Proceed with Debt Refunding Opportunities for the District's Sales Tax Revenue Bonds and Certificates of Participation (Business Division) | |
| EXECUTIVE SUMMARY | |
| The district's financial advisor, Ford & Associates, has been working with staff for the past six months to bring forward the attached analysis detailing the debt refunding opportunities available to the district at this time.
The 2005 and 2006 Sales Tax Revenue Bonds are currently eligible for refunding. A recommended combined refunding of these issues would produce a total debt service savings of $13.5 million between now and 2026. The Series 2005A, 2006A, and 2007 Certificates of Participation (COPs) are eligible for refunding. A recommended combined refunding of these issues would produce a total debt service savings of $19.7 million. A review of market conditions will be the final determination as to which issues will ultimately be refunded and the total savings realized. In addition, the Letter of Credit (LOC) currently supporting the 2004C COPs is due to expire April 15, 2015. At that time we will be required to replace the LOC with a new LOC or restructure the 2004C COPs. The attached analysis provides four different restructure scenarios, two of which preserve the variable rate nature and two which convert some or all the 2004C issue to fixed rate. Mr. Jerry Ford of Ford & Associates will attend the Board meeting to discuss these proposals and answer any of the Board's questions. |
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| STRATEGIC OBJECTIVES | |
| • Align financial resources to support the districts strategic goals • Demonstrate best financial practices | |
| FINANCIAL IMPACT (Budgeted: No) | |
| The savings realized will reduce the district's debt service obligations, thereby increasing the amount of local capital dollars and Community Investment Tax proceeds available for projects. | |
| 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 6.17 | ||
| Hillsborough County Public Schools (Florida) * Mtg.#20150303_685 (Board Meeting) * Section A Item# 6.17 | ||