On March 2000, the District School Board issued the Certificate of Participation, Series 2000 in the amount of $24.9 million dollars for the purpose of generating revenue to build the Fleming Island High School.   The Series 2000 Certificates debt were issued with a 25 year repayment term expiring on July 2025. The interest rate was 5.75%.

On September 2005, the District refinanced the Certificate of Participation, Series 2000 with the balance of $17.8 million to provide savings to the district by reducing the original interest rate from 5.75% to 4.25%.  The Certificate of Participation, Series 2005B was issued with the same repayment terms but with the lower interest rate of 4.25%. 

The Net Present Value of the COP, Series 2005B is at $10.1 million dollars with the interest rate of 4.25%.  A principal payment is budgeted and scheduled for July 2017 for $1.5 million leaving a balance of $8.6 million to be paid over the remaining life of the trust agreement.

An opportunity to further reduce the interest rate from 4.25% to 2.40% subject to movements in interest rates is recommended with an overall potential net present value savings of approximately $430,000. 

Approval of this item will allow Ford and Associate, the District's Financial Advisors, to coordinate the Request for Letters of Interest to refinance the Certificate of Participation 2005B issue. 

The district ensures fiscal responsibility & equitable distribution of resources. 

To approve the recommendation of the Superintendent to allow Ford and Associate to coordinate the Request for Letters of Interest to refinance the Certificate of Participation 2005B issue.  

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