Highlands County School District, FL

Transcription

1 Highlands County School District, FL Refunding Certificates of Participation (School Board of Highlands County, Florida Master Lease Program), Series 2015 Evidencing an Undivided Proportionate Interest of Owners thereof in Basic Rent Payments to be Made under a Master Lease-Purchase 1 Agreement by the School Board of Highlands County, Florida, $40,205,000, Dated: December 10, School Board of Highlands County, Florida Capital Improvement and Refunding Revenue Bonds, Series 2014, $3,430,000 Dated: May 8, 2014 Refunding Certificates of Participation (School Board of Highlands County, Florida Master Lease Program), Series 2006B Evidencing an Undivided Proportionate Interest of Owners thereof in Basic Rent Payments to be Made under a Master Lease- 3 Purchase Agreement by the School Board of Highlands County, Florida, $13,945,000, Dated: December 4, 2006 Series 2015, 2006B Highland County, Florida Assessed and Taxable Property Tax Values Last Ten Fiscal Years Real Property Ratio of Total Taxable to Total Tax Roll Year Assessed Value Taxable Value Assessed Value % % % % % Series 2015, 2006B Highland County, Florida Millage and Tax Data Current Taxes Percent of Taxes Fiscal Year Total Taxes Levied Collections Collected Millages Operating Capital Outlay Total Millage % % % % ** ** **Audit not yet received Series 2015, 2006B Highland County, Florida Historical and Current Millage Rates Tax Year General Fund Non-voted School Tax: Required Local Effort Basic Discretionary Local Effort Supplemental Discretionary Local Effort Critical Operating Needs Capital Projects Fund Non-voted Tax: Local Capital Improvements Total Series 2015, 2006B State Revenue Sources For the District Fiscal Year Ended June 30, 2017 See attachement #1

2 Series 2015, 2006B School District of Highlands County, Florida Summary of Revenues, Expenditures and Changes General Fund Fiscal Year Ended June Revenues: Intergovernmental: Federal Direct Federal Through State and Local State Local: Property Taxes Impact Fees Charges for Services Food Service Miscellaneous Total Local Revenues Total Revenues Expenditures Current Education: Instruction Student Personnel Services Instructional Media Services Instruction and Curriculum Development Services Instructional Staff Training Services Instructional Related Technology School Board General Administration School Administration Facilities Acquisition and Construction Fiscal Services Food Services Central Services Student Transportation Services Operation of Plant Maintenance of Plant Administrative Technology Services Community Services Fixed Capital Outlay: Facilities Acquisition and Construction Other Capital Outlay Debt Service: Internal Service Funds Principal Interest and Fiscal Charges Dues, Fees and Insurance Costs Total Expenditures Excess (Deficiency) of Revenues Over Expenditures Other Financing Sources (Uses) Transfers In Revenue Refunding Bonds Issued Premium on District Revenue Refunding Bonds Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning Adjustment to Beginning Fund Balance Fund Balance, Beginning as Restated Fund Balances, Ending

3 Series 2006B Capital Projects Fund Operations Fiscal Year Ended June 30, 2017 See attachment #2 Series 2015, 2006B Summary of Statistical Date Five Year History Average Number of F.T.E. Expenditure School Year Number of Schools Instructors Enrollment per Student Series 2014 Historic Information for the District setting fourth the Amount of Pledged Funds Received during the Prior Fiscal Year and the Amount thereof Expended for Debt Service Fiscal Year Ended June 30, 2017 See attachment #3 Series 2014 Description of any Additional Series of Bonds Issued under the Bond Resolution Fiscal Year Ended June 30, 2017 N/A

4 K. Revenues 1. Schedule of State Revenue Sources A!f?J.chmfnf #I Exhibit D-1 Page30 The following is a schedule of the District's State revenue sources for the fiscal year: Governmental Funds: Florida Education Finance Program Categorical Educational Program - Class Size Reduction Motor Vehicle License Tax (Capital Outlay and Debt Service) School Recognition Gross Receipts Tax (Public Education Capital Outlay) State License Tax Racing Commlsion Funds Food Service Supplement Voluntary Prekindergarten Program Florida Best and Brightest Teacher Scholarship Program Miscellaneous Subtotal Government Funds Enterprise Fund: Regional Educational Consortium Services Total $ 45,077, , 734, , , , , , , , , , ,666, , $ 59,914, Accounting policies relating to certain State revenue sources are described in Note l.g Property Taxes The following is a summary of millages and taxes levied on the 2016 tax roll for the fiscal year: General Fund Nonvoted School Tax: Required Local Effort Basic Discretionary Local Effort Capital Projects Local Capital Improvement Fund Nonvoted Tax: Local Capital Improvements Total Miiiages Taxes Levied $22,923, ,642, ,303, $33,869,297.00

5 CERTIFICATES OF PARTICIPATION Series 2015 The District issued Refunding Certificates of Participation, Series 2015 dated as of December 10, The total amount of the refunding certificates was $40,205,000 and is to be repaid from the proceeds of rents paid by the School Board of Highlands County. The Series 2015 Certificates are being issued to provide funds for the purposes of (1) current refunding all outstanding Certificates of Participation, Series 2005 and to defease to maturity or advance refund, as applicable, all of the outstanding Certificates of Participation, Series 2006A, and (2) paying costs of issuance of the Series 2015 Certificates, including the premium for municipal bond insurance policy insuring the Insured Certificates. The initial term of the Refinance Lease Agreement will continue through and including June 30, 2016 and (1) with respect to the Series 2005 Facilities is automatically renewable annually thereafter through June 30, 2032, and (2) with respect to the Series 2006A Project is automatically renewable annually thereafter through June 30, The District's properties included in the ground lease under this arrangement are: Sebring High School, Lake Placid High School, Avon Park High School, Hill-Gustat Middle School, Avon Park Middle School, Lake Placid Middle School, New Elementary School A, and The Kindergarten Center. The lease payments are payable by the District semiannually, on March 1 and September 1, at interest rates ranging from to percent. The following is a schedule by years of future minimum lease payments under the lease together with the present value of minimum lease payments as of June 30:

6 FISCAL YEAR ENDING JUNE 30 AMOUNT ,526, ,529, ,525, ,529, ,076, Later Years 40,733, Total Minimum Lease Payments 54,920, Less Interest and Finance Charge 15,515, Present Value of Minimum Lease Payments $ 39,405,000.00

7 CERTIFICATES OF PARTICIPATION Series 2006 B The District issued Certificates of Participation, Series 2006 B dated as of December 4, The total amount financed was $17, 160,000 and is to be repaid from the proceeds of rents paid by the School Board of Highlands County. The purpose of the 2006 B Certificates is to refund all of the series 2000 CO P's. As a condition of the financing agreement, the District has given a ground lease on District property to the Highlands County School Board Leasing Corporation, with a rental fee of $1 per year. The initial term of the Ground lease is 14 years and begins on November 1, 2006 through June 30, The property covered by the ground lease is, together with the improvements constructed thereon from the financing proceeds, leased back to the District. If the District fails to renew the lease and to provide for the rent payments through to term, the District may be required to surrender the sites included under the Ground Lease Agreement for the benefit of the securers of the Certificates. The District's properties included in the ground lease under this arrangement are: Sebring High School, Lake Placid High School, Avon Elementary, Cracker Trail Elementary, Sun 'N Lake Elementary, Woodlawn Elementary, Fred Wild Elementary, Park Elementary, Lake Country Elementary, and Lake Placid Middle School. The lease payments are payable by the District semiannually, on March 1 and September 1, at interest rates ranging from to percent. The following is a schedule by years of future minimum lease payments under the lease together with the present value of minimum lease payments as of June 30:

8 FISCAL YEAR ENDING JUNE 30 AMOUNT ,549, ,546, ,546, ,546, Later Years 0.00 Total Minimum Lease Payments 6,187, Less Interest and Finance Charge 572, Present Value of Minimum Lease Payments $ 5,615,000.00

9 State School Bonds These bonds are issued by the State Board of Education on behalf of the District. The bonds mature serially, and are secured by a pledge of the Districf s portion of the State-assessed motor vehicle license tax. The State's full faith and credit is also pledged as security for these bonds. Principal and interest payments, investments of Debt Service Fund resources, and compliance with reserve requirements are administered by the State Board of Education and the State Board of Administration. Bond Type Amount Interest Annual Outstanding Rates Maturity (Percent) To Series 9009A, Refunding $ 55,000 Series 20148, Refunding $ 394, FISCAL YEAR ENDING JUNE 30 AMOUNT , , , , Total Minimum Lease Payments Less Interest and Finance Charge Present Value or Minimum Lease Payments 75, , $ 71,000.00

10 District Revenue Bonds The School Board issued $3,430,000 in Refunding Certificates of Indebtedness, Series 2014, dated May 8, The proceeds were used to refund the Certificates of Indebtedness, Series 1999, and for the acquisition and construction of certain capital school projects. These Bonds are secured by a pledge of funds accruing to the District from the State's Pari-mutuel Tax Collection Trust Fund pursuant to Section (6)(d)7.a, Florida Statutes. Bond Type Amount Interest Annual Outstanding Rates Maturity (Percent) To Series 2014 $3,430, FISCAL YEAR ENDING JUNE 30 AMOUNT Later Years Total Minimum Lease Payments Less Interest and Finance Charge I Present Value of Minimum Lease Payments 222, , , , , ,328, ,431, ,171, $3,260,000.00

11 RHacfirwn-1 :ff 3 Exhibit D 1 Page 27 State School Bonds These bonds are issued by the SBE on behalf of the District. The bonds mature serially, and are secured by a pledge of the District's portion of the State-assessed motor vehicle license tax. The State's full faith and credit is also pledged as security for these bonds. Principal and interest payments, investment of debt service fund resources, and compliance with reserve requirements are administered by the SBE and the SBA. District Revenue Bonds The School Board issued $3,430,000 in Refunding Certificates of Indebtedness, Capital Improvement and Refunding Revenue Bonds, Series 2014, dated May 8, The proceeds were used to refund all the outstanding Refunding Certificates of Indebtedness, Series 1999A, and for the acquisition and construction of certain capital school projects. These bonds are secured by a pledge of funds accruing to the District from the State's Pari-Mutuel Tax Collection Trust Fund (pledged revenues) pursuant to Section (6)(d.)6a., Florida Statutes. The District has pledged a total of $5,803, of pledged revenues in connection with the District Revenue Bonds, Series 2014, described above. During the fiscal year, the District recognized pledged revenues totaling $223, and expended $218, (98.6 percent) of these revenues for debt service directly collaterallzed by these revenues. The pledged revenues are committed until final maturity of the debt on September 1, Approximately 96 percent of this revenue stream has been pledged in connection with debt service on the revenue bonds. District General Obligation Bonds Annual requirements to amortize all bonded debt outstanding as of June 30, 2017, are as follows: Rscal Year Ending June 30 Total PrlnCl(!&I Interest State School Bonds: , , , , , , , , Total State School Bonds 75.J District Revenue Bonds: , , , , , , , , , , , , , , , ,094, , , ,096, , , ,085, , , , , , Total District Revenue Bonds 51365, , , 105, Total! ! !

12 Exhibit D-1 Page Defeased Debt On December 10, 2015, the Board issued $40,205,000 in Refunding Certificates of Participation, Series 2015, with an average interest rate of 4.08 p~rcent, to advance-refund the Refunding Certificates of Participation Series 2005 and 2006A. The refunding certificates are being issued to advance-refund the $41,260,000 principal amount of the Refunding Certificates of Participation, Series 2005 and 2006A, that mature on or after March 1, The net proceeds of $42,614,318 (including premium received of $2,960,310, after payment of $550,992 In underwriting fees, insurance, and other issuance costs) plus an additional $75,469 of Series 2005 and 2006A sinking fund moneys and accrued interest were placed in an irrevocable trust to provide for future debt service payments on the refunded certificates. As a result, $41,260,000 of the Refunding Certification of Participation, Series 2005 and 2006A are considered to be In-substance defeased and the liability for these certificates has been removed from the government-wide financial statements. The Series 2005 and 2006A Refunding Certificates of Participation were refunded to restructure payments and enhance liquidity which increased the total debt service payments over the next 16 years by approximately $3, 127, 738 and obtained an economic gain (difference between the present value of the debt service payments on the old and new debt) of $1,736, Judgments Payable On August 18, 2016, two verdicts were rendered against the District In two separate lawsuits that were tried In Federal Court. The judgments totaled $3,000,000 In favor of the plaintiffs. In July Of 2017 the District settled all five lawsuits for $2,500,000 plus $1,000,000 from the District's insurance coverage. Therefore, a liability for judgments payable of $2,500,000 was recorded in the government-wide financial statements. 5. Changes In Long-Term Llabllltles The following is a summary of changes in long-term liabilities: Daacrlptlon GOVERNMENT AL ACTIVITIES Bonds Payable CertKlcates of Participation Payable Compensated Absences Payable Net Pension LlablDty Judgments Payable Other Poslemployment Benefits Payable Total Governmental Activities BUSINESS-TYPE ACTIVrrtEs Compensated Absences Payable Net Pension LlablDty Total Bualneu-Type Actlvltl Balance Addition $ 3,535, $ $ 47,090, ,283, , ,048, ,978, ,000,000 1,756, , Deductions 204, ,070, , ,052, , , Balllnca $ 3,331, $ 45,020, ,333, ,972, ,500, ,741, One Year 134, ,180, , ,640, $101,710, $ 37,768, $ 22,578, $118,898, $ 7,320, $ 45, $ 8, $ - $ 54, $ 13, , , , , , $ 278, $ 291, $ 145, $ 424, $ 48, For the governmental activities, judgments, compensated absences, pensions, and other postemployment benefits are generally liquidated with resources of the General Fund.

13 Continuing Disclosure Information for: $9,900,000 The School Board of Highlands County, Florida Certificates of Participation, Series 2005 $45, 145,000 The School Board of Highlands County, Florida Certificates of Participation, Series 2006A $13,945,000 The School Board of Highlands County, Florida Refunding Certificates of Participation, Series 2006B

14 Statistical Data The following table presents a summary of general statistical data regarding the School Board. Summary of Statistical Data Five-Year History Number of Average Expenditure General School Number of Instructional FTE. * from General Fund Per and Operating Year Schools Instructors Enrollment F.T.E. Student Expenditures ,022 6,886 $ 82,788, ,074 7,263 $ 87,700, , 151 7,374 $ 89,605, ,299 7,260 $ 89,295, ,283 7,373 $ 90,567, ** ** ** * Full-time equivalent **School Year Not Yet Complete

15 SELECTED FINANCIAL INFORMATION OF THE SCHOOL DISTRICT OF HIGHLANDS COUNTY FLORIDA Direct and Overlapping Long-Term Debt Statement June 30, 2017 General Obligation Debt Non-Self Supporting Revenue Debt Direct Debt Highlands County School District State School Bonds, Series 2009-A Refunding 2014-B Refunding Distric 2005-B Refunding Series 2014 Estimated Insurance Claims Payable Compensated Absences Payble TOTAL $ $ $ $ $ $ $ 35, , ,260, ,387, ,718,853.43

16 OL BOARD OF HIGHLANDS COUNT't Summary of Capital Projects Funds Revenues and Expenditures FY FY FY FY FY FY Fiscal Year Ended 6/ ~ 2014 ~ lllZ Revenues Federal Direct Federal Through State State $n, $n,o80.83 $75, $328, $491, $788, Local 7,573, ,229, ,103, ,090, ,871, Total Revenues 7,850, ,308, , 178, ,397, ,572, ,460, Expenditures Current lnstjuctlon Pupil Pel&Ol'lnel Services Instruction Media Services Instruction and Curriculum Development Instructional Staff Training Services Board General Administration School Administration Facilities Acquisition and Construction Fiscal Services Food Services Central Services Pupil Transportation Services Operation of Plant Maintenance of Plant Community Services Internal Funds Disbursement Capital Outlay Facilities Acquisition and Construction 17,914, ,004, ,873, ,647, ,154, ,654, other Capital Outlay Debt Services: (Function 9200) Redemption of Principal Interest Dues and Fees Mlacellaneous Expenses Total Expenditures 17,914, ,004, ,873, ,647, ,154, ,654, Excess (Deficiency) of Revenues Over Expenditures 5,859, ,301, ,307, ,750, ,416, ,805,5n.63 Other Financing Sources (Uses) Sale of Bonds Proceeds of Refunding Bonds Proceeds of Loans Proceeds from the Sale of Fixed Assets Loss Recoveries Proceeds of Certificates of Participation Proceeds of Forward Supply Contract Proceeds from Spacial Facilities ConstJUctlon Advance Payments to Refunded Bond Escrow Agent (Function 9299) Transfers In Transfers Out!4,599, !!,469, ! ,004.5Z2 ( (6, 152, ( Total other Financing Sources (Uses) (4,599,424.95) (7,469,172.16) (4,037,671.73) (6,852,238.74) (6, 162,764.65) (6,804,340.46) Excess (Dallclency) of Revenues and other Sources Over Expenditures and other Uses 1,259, (2, 167,387.61) (1,269,884.39) (1, 102,082.13) (734,554.36) 1,001, Beginning Fund Balance 2,691, ,951, , ,053, ,n3.19 1,217, Adjustments to Fund Balances/Residual Equity Transfet Ending Fund Balance 3,951, ,783, ,053, n3.19 1,217, ,218, Sources: Official Audit for Fiscal Years , 2013/14, 2014/15, 2015/16 and 2016/17.

17 PECO allocated $465, to the School Board in fiscal year , and has allocated $309, to the School Board for fiscal year Public Education Capital Outlay Funds The School Board of Highlands County Fiscal Year End 6/30 Total PECO Funds 2012 $ 2013 $ 2014 $ 247, $ 247, $ 465, $ 309, (1) These funds may be used either for debt service or costs of new construction or a survey recommended project. (2) These funds may be used only for costs of maintenance, repair, and renovation and are not available to pay debt service. (3) These funds may be used for a health services education facility.

18 School District of Highlands County, Florida Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Total Tax Current Tax Percent Levied (1) Collections Collected 46,612,531 45,208, % 52,691,264 51,635, % 52,026,542 49,381, % 47,316,639 46,357, % 40,814,363 39,801, % 40,105,234 38,872, % 37,954,334 36,979, % 35,027,610 34,049, % 35,197,381 34,174, % 35,045,683 33,867, % ** 34,284,609 **Audit information not yet received.

19 HIGHLANDS COUNTY, FLORIDA ASSESSED AND TAXABLE PROPERTY VALUES Last Ten Fiscal Years Real Property Tax Ratio of Total Roll Assessed Taxable Taxable to Total Year Value (1) Value (2) Assessed Value ,697,328, 145 6, 707, 786,873 77% ,732, 135,883 6, 161,273,032 80% ,506,346,367 5,355,825,638 71% , 174,954,418 5,125,411,181 71% ,869,297,955 4,930,407,409 72% , 733,930, 111 4,827,780,789 72% , 738,229,083 4,837,919,845 72% ,838,477,713 4,882, 780,894 71% ,268,937,378 5,072,665,656 70% ,537,030,402 5,234,652,248 69% Source: Highlands County Property Appraiser

20 ANTICIPATED LOCAL OPTION MILLAGE LEVEY REQUIRED TO COVER SERIES 2000 CERTIFICATE PAYMENTS Fiscal Year Net Taxable Assessed Valuation Funds Generated from 1 Mill Levy assuming 95% collection rate Maximum Annual Payments represented by the Series 2000 Certificates Millage Levy Required to Produce 1.00x Coverage of Maximum Annual Lease Payments represented by the Series 2000 Certificates 5, 169,041,813 2,584,520,907 4,432,

21 OTHER INFORMATION No additional series of Certificates have been issued under the Trust Agreement There is no new ongoing material litigation which would have been disclosed in the Offering Statement if such litigation had occurred and been ongoing at the time the Offering Statement was dated. There is no other financial information or operating data of the type included in the Offering Statement which would be material to a holder or prospective holder of the Certificates. SIGNIFICANT EVENTS NONE of the events described in Section 3 of the Continuing Disclosure Certificate have occurred with respect to the Certificates of Participation Series Principal and interest payment delinquencies; Nonpayment related defaults under this Resolution; Unscheduled draws on reserves reflecting financial difficulties; Unscheduled draws on credit enhancements reflecting financial difficulties; Substitution of credit or liquidity providers, or their failure to perform; Adverse tax opinions or events affecting the tax - exempt status of the Bonds; Modifications to rights of Registered Owners of the Bonds; Redemptions; Defeasances; Release, subtitution or subordination of Pledged Funds securing repayment of the Bonds; or Rating changes.