The District is requesting authorization to issue taxable general obligation refunding bonds in the amount not to exceed $50,000,000 for the purpose of refunding certain maturities of the Series 2012 and Series 2015 bonds, ultimately reducing the amount of interest paid by District taxpayers.

This opportunity is unique and reflects market conditions caused by the COVID-19 pandemic. We speculate that we will need to be ahead of the November General Election to take advantage of this opportunity.

Attached are the following items to assist the Board in decision-making:

1. A memo from RBC Capital Markets, the District Underwriter, describing the transaction that will yield District taxpayers a present value savings of $2.0 million in interest cost (net present value). This is accomplished by refunding certain maturities of the 2012 and 2015 bonds to lower-interest taxable bonds.

2. Poudre School District R-1 2020 bond parameters resolution (the Resolution)

Section 21 – Direction to Take Action and Section 22 – Approvals, Authorizations and Amendments of the resolution allow for certain documents to be executed at a date following the approval of the resolution limited by the parameters set within that same section. Draft copies of these documents have been provided in the agenda packet in the expected “form of” for Board review, including the Preliminary Official Statement, the Bond Purchase Agreement, Continuing Disclosure Certificate, Registrar and Paying Agent Agreement, and Escrow Agreement.

The Board is required to authorize the issue of General Obligation Refunding Bonds to affect a net present value savings.

The Superintendent and Executive Director of Finance recommend that the Board of Education approve the Resolution included in the agenda item for the Refunding of certain maturities of the Series 2012 and Series 2015 to Series 2020 Taxable General Obligation Refunding Bonds for the purpose of saving District taxpayers $2.0 million in interest cost by adopting the following motion:

"I move the Board of Education approve the RESOLUTION presented for Board action at the September 22, 2020 meeting AUTHORIZING THE ISSUANCE BY POUDRE SCHOOL DISTRICT R-1, LARIMER COUNTY, COLORADO, OF TAXABLE GENERAL OBLIGATION REFUNDING BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $50,000,000 FOR THE PURPOSE OF REFUNDING IN ADVANCE OF THEIR RESPECTIVE MATURITIES CERTAIN OF THE DISTRICT’S GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS, SERIES 2012 AND GENERAL OBLIGATION BONDS, SERIES 2015, AT LOWER INTEREST RATES; PROVIDING FOR THE PAYMENT OF THE COSTS OF ISSUANCE OF SUCH BONDS; PROVIDING FOR THE LEVY OF AD VALOREM TAXES FOR THE PAYMENT OF SUCH BONDS; PROVIDING THE FORM OF SUCH BONDS AND OTHER DETAILS WITH RESPECT TO SUCH BONDS AND THE PAYMENT THEREOF; APPROVING OTHER DOCUMENTS RELATING TO SUCH BONDS; AND PROVIDING THE EFFECTIVE DATE OF THIS RESOLUTION".