Business Action Item

DATE:	Tuesday, June 23, 2015
TO:	School Board Members
FROM:	Jeff Eakins, Acting Superintendent
SUBJECT / RECOMMENDATIONS
Approve a Commercial Bank Loan from Regions Capital Advantage, Inc., an Affiliate of Regions Bank for the Combined Refunding of a Portion of the District's Outstanding Sales Tax Revenue Bonds, Series 2005 and Advance Refunding of a Portion of the District's Outstanding Sales Tax Revenue Bonds, Series 2006 Maturing in the Years 2016 - 2019.  Adopt the Delegated Award Resolution Authorizing the Issuance of Not Exceeding $55,000,000 Aggregate Principal Amount of Sales Tax Revenue Refunding Bonds, Series 2015A (Exact Amount of the Issue to be Determined by Market Conditions at the Time of Sale) (Business Division)
EXECUTIVE SUMMARY
In March 2005 the district issued $127,975,000 of Sales Tax Revenue Refunding Bonds, Series 2005 and in March 2006 issued $54,860,000 of Sales Tax Revenue Bonds, Series 2006, to repay 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 net present value savings of $3 million by refunding approximately $53 million of such bonds.  The savings will result in a reduction of the debt that must be repaid by the Community Investment Tax freeing up such funds for other permitted purposes.  It is in the best financial interest of the district to utilize a commercial bank loan to effect the refunding of the 2016 - 2019 maturities of the 2005 and 2006 bonds.  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 requirements set forth in the resolution and recommendations of the financial advisor are met.  The anticipated refunding will take place in July by negotiated sale dependent upon market conditions.
STRATEGIC OBJECTIVES
• Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  No)
Approximate net present value savings of $3 million will be realized over the life of the outstanding bonds (based on market conditions as of June 10, 2015).  Such net present value savings indications are inclusive of legal and professional costs associated with the transaction.
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
		A 6.30
Hillsborough County Public Schools (Florida) * Mtg.#20150623_694 (Board Meeting) * Section A Item# 6.30