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Action Item
DATE: Tuesday, August 11, 2015
TO: School Board Members
FROM: Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS

Approve Current Refunding of the Outstanding Certificates of Participation (COPs), Series 2004C with the Proceeds of Refunding Certificates of Participation, Series 2015B (Business Division)

  1. Adopt the Board Certificate Resolution authorizing the issuance of the Series 2015B Refunding Certificates of Participation in the aggregate principal amount of not to exceed $77,800,000 for the purpose of currently refunding the Series 2004C Certificates and approve the private placement of the Series 2015B Certificates with Wells Fargo.
  2. Recess as members of the School Board and convene as the School Board Leasing Corporation.
  3. Adopt the Leasing Corporation Resolution authorizing the issuance of the Series 2015B Certificates in the aggregate principal amount of not to exceed $77,800,000 for the purpose of currently refunding the Series 2004C Certificates and the private placement of the Series 2015B Certificates with Wells Fargo in accordance with the terms of the Board’s Certificate Resolution and the documents attached thereto.
  4. Adjourn as members of the School Board Leasing Corporation and reconvene the School Board.
EXECUTIVE SUMMARY
The Board’s outstanding Series 2004C Certificates of Participation are currently bearing interest at a variable rate and are secured by a letter of credit and a bond insurance policy.  The District’s financial advisor, Ford & Associates, Inc., has advised the Board that it is in the best interest of the District to provide for the current refunding of all of the outstanding Series 2004C Certificates and the refinancing of the costs of the Series 2004C Project in order to (i) eliminate the risk of renewal of the letter of credit and (ii) eliminate the bond insurance policy which, due to the downgrade of the issuer of such policy, is no longer a desirable guaranty in the public markets for securities such as the Series 2004C Certificates.

Executive Summary continues on attachment 1.
STRATEGIC OBJECTIVES
• Align financial resources to support the district's strategic goals • Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted:  No)
There will be issuance costs estimated not to exceed $250,000.  There will be a decrease in annual costs of approximately $150,000.  These amounts will be included in the transfer from Local Capital Millage to Debt Service fund.
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 6.02
Hillsborough County Public Schools (Florida) * Mtg.#20150811_698 (Board Meeting) * Section A Item# 6.02