11-22-2016 Organization of the Board with Oath and Regular School Board Meeting
Agenda Item #21


Title
Refunding of the District's 2007A and 2007B Certificates of Participation (COP)

Discussion

Financial Services is requesting approval to move forward with the refunding of the Series 2007A and 2007B Certificates of Participation (COP).

The most recent market analysis projects approximately $9 million or 10 percent combined cash savings on the Series 2007A and 2007B issues, which will be achieved through lower interest payments over the life of the issues. Based on guidelines from the Government Finance Officers Association (GFOA), a three to five percent savings is considered to be a best practice.

Staff is requesting that the Board adopt the attached authorizing resolutions and other legal documents required for both the advance refunding of the Series 2007B Certificates and the forward direct purchase of the Series 2007A Certificates. The authorizing resolutions delegate authority to the Chief Financial Officer to move forward with the refunding at such time as the market conditions are in place for optimal savings. 

Staff is recommending the following Financial Team for the refunding of the Series 2007B Certificates:  RBC Capital Markets as the District's Financial Advisor; Bryant Miller Olive as the District's Bond Disclosure and Special Counsel; and the Underwriting Team of Wells Fargo Securities, CitiGroup Global Markets Inc., Raymond James & Associates, Inc., and Stifel, Nicolaus and Company, Incorporated. The expected cost of issuance for the refunding is approximately $311,000, including fees paid to the financial team, based on our best estimates at this time. Cash savings earned on the issuance are reported net of these issuance costs.

Staff is recommending the following Financial Team for the Forward Direct Purchase of the Series 2007A Certificates: RBC Capital Markets as the District's Financial Advisor; Bryant Miller Olive as the District's Special Counsel; and Wells Fargo Securities as the Lending Bank. The expected cost of issuance for the Forward Direct Purchase of the Series 2007A Certificates is approximately $105,000, including fees paid to the financial team, based on our best estimates at this time.  Cash savings earned on the issuance are reported net of these issuance costs.



Recommendation
Approve the delegation of the Chief Financial Officer to move forward with the refunding of Series 2007B certificates and the forward direct purchase of the Series 2007A certificates at the optimum time that allows the District to achieve at least a 3% net present value savings. Approve the attached resolutions and other legal documents and approve members of the Financing Team, to include the Financial Advisor, Bond and Disclosure Counsel, Underwriting Team, and Lending Bank as delineated above.


Meeting Date(s)
Consent w/o Information - 11/22/2016

Authority for Action
F.S. Chapter 1001, 1003, 1013

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Agenda Item will not Require the Expenditure of Funds

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program

Contact
Jo Ann Clark, Director of Accounting Services, ext. 660
Pennie L. Zuercher, Chief Financial Officer, Financial Services, ext. 600



Attachment:  Resolution - SB 2017A School Board (01167208).pdf
Attachment:  Brevard Co. SB 2017B School Board Resolution - Agenda (01166954).pdf