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 Capital Trust Agency (the “CTA”) of not to exceed $12,000,000 aggregate principal amount of the CTA's Educational Facilities Revenue Bonds (Championship Academy of Distinction of West Broward 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 Championship Academy of Distinction K-8 (3) Inc., d/b/a Championship Academy of Distinction of West Broward, a Florida nonprofit corporation (the “Borrower”) located in the City of Sunrise, Broward County, Florida.

ACTION:  (T-2:16 PM)  Approved.  (Refer to minutes for full discussion.)
 
VOTE: 9-0.

B. MOTION TO ADOPT Resolution No. 2018-408 of the Board of County Commissioners of Broward County, Florida, approving for purposes of Section 147(f) of the Code, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, the issuance by the CTA of the Bonds in one or more series in an aggregate principal amount not to exceed $12,000,000 for the primary purpose of financing the acquisition of Championship Academy of Distinction of West Broward located in the City of Sunrise, Broward County, Florida, and providing for an effective date.

ACTION:  (T-2:16 PM)  Approved.  (Refer to minutes for full discussion.)
 
VOTE: 9-0.

ACTION:  (T-2:20 PM) The Board reconsidered Item 51B.  (Refer to minutes for full discussion.)

VOTE: 9-0.

ACTION:  (T-2:21 PM)  Approved.  (Refer to minutes for full discussion.)

VOTE: 9-0.

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, Chapter 163 of the Florida Statutes, the Florida law authorizing the creation of the CTA, allows Florida governmental entities to work together in connection with the issuance of bonds. Section 159.29, Florida Statutes, sets forth certain criteria and requirements issuers should consider when issuing bonds like the Bonds. CTA desires to cooperate with the County in issuing the Bonds. 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 requires that the Board give its “host approval” of the issuance of the Bonds by the CTA.

Motions A and B: Ensures compliance with TEFRA and U.S. Treasury Regulations promulgated thereunder, and with Chapter 163, Florida Statutes, and Section 159.29, Florida 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 the purpose of, and as required by, Section 147(f) of the Code, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, with respect to the issuance by the CTA of the above described Bonds, in an amount not to exceed $12,000,000, from time to time in one or more tax-exempt or taxable series pursuant to a plan of financing. The proceeds of the Bonds will be loaned by the CTA to the Borrower, and used by the Borrower to pay the costs of (a) acquiring, equipping and improving a charter school facility known as Championship Academy of Distinction of West Broward, which is located at 7100 West Oakland Boulevard, Sunrise, Broward County, Florida 33313 within the territorial limits of Broward County, Florida, and acquiring and installing related facilities, fixtures, furnishings and equipment; (b) refinancing certain existing debt of the Borrower, if deemed necessary or desirable; (c) funding the debt service reserve fund for the Bonds, if deemed necessary or desirable; (d) funding any necessary capitalized interest; and (e) paying certain costs of issuing 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, the issuance of the Bonds by the CTA must be approved by the Board because the Project is located within the territorial limits of Broward County. In addition, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, encourage governmental entities to cooperate when bonds are issued by one governmental entity to finance a project located within the territorial limits of another governmental entity. Motions A and B provide for the TEFRA Hearing and adoption of the TEFRA Resolution in accordance with Section 147(f) of the Code, Chapter 163, Florida Statutes, and Section 159.29, Florida 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 prior to the commencement of the TEFRA Hearing. Exhibit 4 is a letter from the CTA further describing the transaction. The Bonds are expected to be issued by the CTA in September or October of 2018.

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