Action Item
|
Business Services
Action Item |
| DATE: | Tuesday, March 31, 2020 |
| TO: | School Board Members |
| FROM: | Addison Davis, Acting Superintendent |
| SUBJECT / RECOMMENDATIONS | |
| Approve the Refunding of all or a Portion of the Outstanding Refunding Certificates of Participation, Series 2010A (the Series 2010A Certificates) and Refunding Certificates of Participation, Series 2012A (the Series 2012A Certificates, and Together with the Series 2010A Certificates, the Refunded Certificates) and Appoint Addison Davis as the Acting Secretary/Treasurer of the Hillsborough School Board Leasing Corporation (SBLC) <em><strong>(Business Services Division)</strong></em> | |
| EXECUTIVE SUMMARY | |
| The District’s Financial Advisor, Ford and Associates, Inc., has provided an analysis showing that current market conditions will allow the District to realize net present value savings of approximately $20 million by refunding all or a portion of the outstanding Series 2010A Certificates and Series 2012A Certificates. If approved, the transaction will result in a reduction of the debt service (lease payments) payable by the District from revenues derived primarily from the local capital outlay millage. The refunding of the Series 2010A Certificates will be undertaken on a tax-exempt basis and is subject to a minimum savings threshold of 5 percent of the par amount of the Refunded Series 2010A Certificates. The refunding of the Series 2012A Certificates will be undertaken on a taxable basis and is subject to a minimum net present value savings threshold of 5 percent of the par amount of the Refunded Series 2012A Certificates. This agenda has been reviewed as to legal form and sufficiency by Ritesh Patel, Bond Counsel. Mr. Patel and Mr. Ford will be present to answer questions and assist the Board in this endeavor.<br /><br />A copy of both the Certificate Resolution and the Corporate Resolution are available for viewing in the School Board office. | |
| STRATEGIC OBJECTIVES | |
| • Establish a strong foundation of financial stewardship | |
| FINANCIAL IMPACT (Budgeted: No) | |
| Approximate net present value savings of $20 million (subject to change) will be realized over the life of the Refunded Certificates, based on market conditions as of March 2, 2020. Such net present value savings indications are inclusive of legal and professional costs associated with the transaction. | |
| EVALUATION | |
| n/a | |
| SUBMITTED BY: Susan Garcia, General Manager Budget, Cash Management & Federal Finance, (813) 272-4064 | |
| Susan Garcia | Gretchen Saunders | |
| General Manager, Budget, Cash Management, and Federal Finance (813) 272-4064 |
Chief Business Officer (813) 272-4270 |
|
| C 6.13 | ||
| Hillsborough County Public Schools (Florida) * Mtg.#20200331_1016 (Board Meeting) * Section C Item# 6.13 | ||