Hillsborough County Public Schools Business
Action Item

DATE: Tuesday, February 21, 2006
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Partial refunding of Certificates of Participation (COPs), Subseries 1998B and Series 2001B (the "Refunded Certificates") (Business Division)
  1. Adopt the Board Certificate Resolution authorizing the refunding of the Refunded Certificates. Authorize the use of Citigroup as the lead for the underwriting team. 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

Citigroup has provided an analysis to the District showing a possible savings of approximately $1.6 million (3.0%) on portions of the 1998B and 2001B COPs in the current market conditions. The savings will be a reduction of the debt that must be repaid by the taxpayers and will provide an increase in our future bonding capacity to build new schools. The resolution allows for the refunding of only one of the Series of the Refunded Certificates if market conditions are only favorable for refunding one of such Series, but not the other. At such time as market conditions have become favorable for the refunding of the other Series, an additional Series of COPs would be authorized to be issued to refund such COPs without further Board action.

The refundings will be dependent upon market conditions.This agenda item has been reviewed as to legal form and sufficiency by John Stokes, Bond Counsel.

ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)

This agenda item is submitted to meet the requirements of law or rule. Mr. John Stokes, Bond Counsel and Mr. Jerry Ford, Financial Advisor are present today to assist the Board in this endeavor.

FINANCIAL IMPACT (Budgeted: No)

By refunding portions of the 1998B and 2001B COPs issues, the District will be able to maximize it's bonding ability, thus enabling the taxpayers to realize additional school construction resources in excess of $1.6 million.

EVALUATION

SUBMITTED BY: Steve Brady, Assistant Department Manager of Cash Management

Carol J. MacLeod
General Manager of Budget & Federal Finance
(813) 272-4064 		Gretchen Saunders
Chief Business Officer
(813) 272-4270
5.17
Hillsborough County Public Schools (Florida) * Mtg.#20060221_170 * Section E Item# 5.17