Agenda - 10-06-2009 - 5a - Laserfiche WebLink

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The advantages to deferring issuance of QSCB financing until next year are: 1) The savings in issuance costs and time by doing one QSCB issuance; 2) Tax Credit rates may go back up reducing or eliminating the interest cost; and 3) Additional lenders may enter the QSCB market making a more competitive environment. • This should reduce supplemental coupon rates. • Banks (i.e. BB&T) may not require bond ratings or official statements. The disadvantages to deferring the issuance of the QSCB financing until next year are: 1) The project would be delayed by at least 9 months; 2) Construction costs could increase; and 3) There is no guarantee that the unused 2009 QSCB authorization awarded to a school district would be rolled forward and added to a 2010 allocation. An idea to be considered for use of the CHCCS QSCB authorization provided in 2010 is to use it as part of the financing for the construction of Elementary #11. The most recent plan presented to the Board for funding Elementary #11 is to issue bonds toward the end of calendar year 2010 or in early 2011 with the initial debt service falling in FY 2011-12. This timeframe will allow a 2010 QSCB financing for Elementary #11 to be linked with the total financing package for Elementary #11. Staff plans to continue to move forward with steps to secure QSCB financing in 2009 for the Carrboro High School Arts Wing project. FINANCIAL IMPACT: There is no financial impact related to this action. However there will be a financial impact as noted above with authorization to proceed with the issuance of bonds. RECOMMENDATION(S): The Interim Manager recommends that the Board: 1) Open the public hearing and receive comments from the public; 2) Close the public hearing; and 3) Offer direction to staff on the issuance of Qualified School Construction Bonds.