HCPS FL Logo Business Services
Action Item
DATE: Tuesday, May 16, 2017
TO: School Board Members
FROM: Jeff Eakins, Superintendent
Approve a Commercial Bank Loan from Raymond James Capital Funding, Inc., an Affiliate of Raymond James and Associates, for the Current Refunding of the Outstanding Sales Tax Revenue Refunding Bonds, Series 2007.  Adopt the Delegated Award Resolution Authorizing the Issuance of Not Exceeding $70,000,000 Aggregate Principal Amount of Sales Tax Revenue Bond, Series 2017A (Exact Amount of the Issue to be Determined by Market Conditions at the Time of the Sale) (Business Services Division) Revised Attachment
In March 2007 the district issued $47,515,000 of Sales Tax Revenue Refunding Bonds, Series 2007 to be repaid with our portion of the Community Investment Tax (CIT).  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 over $5.5 million by refunding all of such bonds.  The savings will result in a reduction of the debt that must be repaid by the CIT freeing up such funds for other permitted purposes.  In addition, proceeds of the Series 2017A Bond will be used by the district to pay the costs of various HVAC related capital improvements at various educational facilities within the district. 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 Series 2017A Bond, provided the requirements set forth in the resolution and recommendations of the financial advisor are met.  The anticipated financing will take place in May 2017 dependent upon market conditions.
• Establish a strong foundation of financial stewardship
Approximate net present value savings of $5.5 million will be realized over the life of the outstanding Series 2007 Bonds (based on market conditions as of April 18, 2017).  Such net present value savings indications are inclusive of legal and professional costs associated with the refunding portion of the transaction.  The issuance of additional debt to fund the HVAC improvements and pay associated legal and professional costs will result in additional debt service of approximately $2.4 million per year through 2026.  In aggregate, the District’s CIT-backed debt service is expected to rise to approximately $20.9 million annually as a result of the proposed transaction.
SUBMITTED BY:  Steve Brady, Department Manager for Cash Management
Gretchen Saunders   Dr. Alberto Vázquez
Chief Business Officer
  Chief of Staff
(813) 272-4986
    C 6.13R
Hillsborough County Public Schools (Florida) * Mtg.#20170516_813 (Board Meeting) * Section C Item# 6.13R