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Polk school board approves form to seek up to $305 million in certificates of participation
Summary
The Polk County School Board voted unanimously to approve forms authorizing the potential issuance of certificates of participation within parameters that set a maximum principal of $305 million, a 4.75% maximum interest rate and a Jan. 1, 2046 maturity; final amounts will return to the board for approval.
The Polk County School Board on March 24 approved, "as to form," a financing resolution that authorizes district officials to move forward with legal documents needed to issue certificates of participation within set parameters.
Bond counsel Mike Weiner of Holland & Knight told the board "the resolution before you is very similar to all of the prior financings that the district has done," and said the documents authorize certificates of participation with a maximum principal amount of $305 million, a maximum interest rate of 4.75% and a maximum maturity date of Jan. 1, 2046. He said the district expects to remain within those parameters and would return to the board if parameters change.
Superintendent Hyde emphasized the board was approving the form of the financing documents, not final borrowing amounts, and said the district "intends, with board approval, to use existing impact fee revenue" to fund a planned new high school, so that project "would not come under this for borrowing or debt service." Hyde also told board members the packet included an initial listing of potential projects, including roughly $56 million identified for deferred maintenance; the board will later help prioritize projects and timelines.
Board members asked questions about the length and complexity of the packet and about which projects would be financed. Board member Wyatt moved the resolution; Board member Allen seconded. After a brief presentation from staff and counsel and additional clarifications from administration, the board voted unanimously to approve the resolution "as to form." The district said final dollar amounts, project priorities and financing details will be returned to the board for separate approvals before any sale.
The resolution authorizes district officials to proceed with forms and legal documents (lease schedules, master lease, ground lease, disclosure agreement and certificate purchase contract) needed to market and sell the certificates; Raymond James and Jefferies are listed in the packet as underwriters. Bond counsel noted that if market conditions required departures from the stated parameters, the district would come back to the board.
Next steps: staff said they will continue to refine project lists and financing amounts and return to the board for final approvals before issuing debt.
