Bond Oversight Committee
March 16, 2023
Agenda
Goals/Purpose of Committee
Elect Chair and Vice-Chair of Committee
Bond Issue Overview
Market Date: January 24, 2023
Date of Closing: February 7, 2023
Interest Cost 3.74% Avg Coupon Rate 5.02%
Par Amount of Bonds: $271,000,000
Premium: $ 38,634,213
Cost of Issuance: ($ 1,384,150) *
Net Project Fund: $308,250,063
Funds currently invested at CSAFE: Interest earned to date $1.4M
Certificate of Participation Debt to be paid off 3/29 for $7,118,450
*Includes underwriting expenses, legal, rating agency fees, printing, paying agent, other
Investment Advisor
The Board will be taking action at the March 20th Board Meeting on the selection of an Investment advisor
Selection Committee is recommending approval of Morgan Stanley as the District’s Investment Advisor.
Investment Advisor, continued
Why use an Investment Advisor:
Arbitrage
Definition: Arbitrage occurs when tax-exempt bond proceeds are invested in higher yielding taxable securities, resulting in a profit.
Tax-exempt bond issues issued on or after September 1, 1986 are subject to the arbitrage rebate requirements. Such requirements detail that any profit or “arbitrage” be “rebated” (or paid back) to the Federal Government (The Treasury Department).
Arbitrage Yield on 2023 Bond Issue: 3.140932%
Exceptions to the rebate are allowed, but it is not anticipated that the District will meet any of the spending requirements at this time.
Owner’s Representative
Request for Proposals were received by 5 Companies. Scope primarily involves budget to actual tracking, invoice review and cash flow estimates.
The Board will be presented with the top 3 firms in rank order at the March 20th Board Meeting. Upon approval, contract discussions will begin.
2022 Bond Project Overview
New Middle School
SMS/SHS Expansions
SHS CTE Center
Tozer Kitchen Floor Replacement
Safety/Security Upgrades
WHS Turf Replacement
HVAC and Roofing
Other Updates
Meeting Schedule
Feedback needed:
Quarterly meetings