Business Services Action Item

DATE:	Tuesday, October 17, 2017
TO:	School Board Members
FROM:	Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS
Approve Refunding of a Portion of the Outstanding Certificates of Participation (COPs), Series 2012A (the “Refunded Certificates”) (Business Services Division) 1.       Adopt the Board Certificate Resolution authorizing the refunding of the Refunded Certificates.  Authorize the use of a syndicate of underwriters including Raymond James & Associates, Inc. for this transaction.  Authorize staff to work with the District’s Financial Advisor and Bond Counsel to proceed with the refunding as long as market conditions remain favorable. 2.       Recess as members of the School Board and convene as the School Board Leasing Corporation. 3.       Adopt the Corporate Resolution authorizing the refunding of the Refunded Certificates. 4.       Adjourn as members of the School Board Leasing Corporation and reconvene as the School Board.
EXECUTIVE SUMMARY
The District’s financial advisor, Ford & Associates, Inc., has provided an analysis showing that the current market will allow the District to realize a net present value savings of approximately $3.6 million by refunding a portion of the Series 2012A COPs.  The savings will result in a reduction of the debt service (lease payments) payable by the District from revenues derived from the local capital outlay millage.  This agenda has been reviewed as to legal form and sufficiency by John Stokes, Bond Counsel.  Mr. Stokes and Mr. Ford will be present to answer questions and assist the Board in this endeavor. 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 $3.6 million will be realized over the life of the Refunded COPs (based on market conditions as of September 22, 2017).  Such savings indications are net of approximately $445,000 in estimate costs of issuance associated with the transaction.
EVALUATION
After reviewing the outstanding debt issues and tracking the financial market, the District will receive a net present value in savings for this transaction.
SUBMITTED BY:  Steve Brady, Department Manager for Cash Management

Gretchen Saunders		Dr. Alberto Vázquez
Chief Business Officer (813) 272-4270		Chief of Staff (813) 272-4986
		C 6.03
Hillsborough County Public Schools (Florida) * Mtg.#20171017_822 (Board Meeting) * Section C Item# 6.03