Broward County Commission Regular Meeting

A. MOTION TO OPEN Public Hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”) relating to the issuance by the Public Finance Authority (the “Authority”) of not to exceed $13,500,000 aggregate principal amount of the Authority’s Charter School Revenue Bonds (Central Charter School Project) from time to time in one or more tax-exempt or taxable series pursuant to a plan of financing (the “Bonds”) for the purpose of financing projects for Assistance Unlimited, Inc. DBA Central Charter School, a Florida nonprofit corporation (the “Borrower”) located in the City of Lauderdale Lakes, Broward County, Florida, and the related refunding of certain outstanding bonds of the Authority.

ACTION:  (T-3:22 PM)  Without objection, the Board heard the Public Hearing item as required by Section 147(f) of the Internal Revenue Code of 1986.  (Refer to minutes for full discussion.)

B. MOTION TO ADOPT Resolution No. 2017-526 of the Board of County Commissioners of Broward County, Florida, approving for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended, and Section 66.0304(11)(a) of the Wisconsin Statutes, the issuance by the Public Finance Authority of its Charter School Revenue Bonds (Central Charter School Project) in one or more series in an aggregate principal amount not to exceed $13,500,000 in connection with the financing of the Central Charter School in Lauderdale Lakes, Florida, and the refunding of certain outstanding bonds of said Authority; and providing for an effective date.

ACTION:  (T-3:24 PM)  Approved.  (Refer to minutes for full discussion.)
 
VOTE: 9-0.  Commissioners Geller and Holness voted in the affirmative telephonically. 

Motions A and B: The federal Tax Equity and Fiscal Responsibility Act (known as “TEFRA”) and U.S. Treasury Regulations promulgated thereunder concerning tax-exempt private activity bonds require a public hearing and adoption of a TEFRA Resolution (as defined below) by the Board of County Commissioners prior to the issuance of tax-exempt bonds. In addition, Section 66.0304(11)(a) of the Wisconsin Statutes, the Wisconsin law authorizing the creation of the Authority, requires that bonds issued by the Authority be approved by the governing body or highest ranking executive or administrative officer of the political jurisdiction within whose boundaries a project is to be located. Although Broward County is not the issuer of the Bonds, since the facilities to be financed or refinanced with the proceeds of the Bonds are located within the territorial limits of Broward County, TEFRA and the related U.S. Treasury Regulations, and Section 66.0304(11)(a) of the Wisconsin Statutes, require that the Board give its “host approval” of the issuance of the Bonds by the Authority.

Motions A and B: Ensures compliance with TEFRA and U.S. Treasury Regulations promulgated thereunder, and with Section 66.0304(11)(a) of the Wisconsin Statutes, by providing for a public hearing and adoption of a TEFRA Resolution by the Board prior to the issuance of the Bonds, the proceeds of which will be used to finance and refinance capital projects located in Broward County, Florida, for the benefit of the Borrower.

None. 

THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
 

The Borrower has requested that the Board hold the public hearing described herein (the “TEFRA Hearing”) and adopt the Resolution described herein (the “TEFRA Resolution”) for purpose of, and as required by, Section 147 of the Code and Section 66.0304(11)(a) of the Wisconsin Statutes with respect to the issuance by the Authority of the above described Bonds, in an amount not to exceed $13,500,000 from time to time in one or more tax-exempt or taxable series pursuant to a plan of financing as more particularly described in the TEFRA Resolution attached hereto as Exhibit 1.

The proceeds of the Bonds will be loaned by the Authority to the Borrower, and used by the Borrower to pay the costs of (a) acquiring the real estate and improvements thereon currently used by the Borrower in the operation of Central Charter School (the “Facility”), which is located at 4525 North State Road 7, Lauderdale Lakes, Florida within the territorial limits of Broward County, Florida; (b) acquiring additional furniture, fixtures and equipment for the Facility; (c) refunding the Authority’s outstanding Charter School Revenue Bonds (Central Charter School Project) Series 2017A and Charter School Revenue Bonds (Central Charter School Project) Taxable Series 2017B, which were issued to finance the costs of renovations to and acquisition of furniture, fixtures and equipment for the Facility; (d) making a deposit to the debt service reserve fund; and (e) paying the costs of issuance of the Bonds and certain other costs incurred in connection with the issuance of the Bonds (the purposes described in clauses (a) through (e) are hereinafter collectively referred to as the “Project”).

Pursuant to Section 147(f) of the Code and Section 66.0304(11)(a) of the Wisconsin Statutes, the issuance of the Bonds by the Authority must be approved by the Board, because the Project is located within the territorial limits of Broward County. Motions A and B provide for the TEFRA Hearing and adoption of the TEFRA Resolution in accordance with Section 147(f) of the Code and Section 66.0304(11)(a) of the Wisconsin Statutes.

The TEFRA Hearing was properly noticed as evidenced by the Proof of Publication attached as Exhibit 2. Exhibit 3 is a public hearing script, which must be read into the official record by the presiding Hearing Officer prior to the commencement of the TEFRA Hearing. Exhibit 4 is an Indemnification Letter from the Borrower. Exhibit 5 is a letter from Greenspoon Marder, P.A., Bond Counsel to the Authority, further describing the transaction. The Bonds are expected to be issued by the Authority beginning in late November or December of 2017.

George Tablack, CPA, Chief Financial Officer, (954) 357-7130