September 22, 2014 Notes

State College Area School District

CAC for Finance

September 22, 2014

Board Room, 131 W. Nittany Ave.

State College, PA  16801

 

Members:

Randy Brown

Anne Clymer

Marisa Flynn

Scott Fozard

Andy Friberg 

John Hook  (absent)

Tim Hurley  (absent)

Dave Lieb  (absent)

Ann McGlaughlin  (absent)

Jim Myers  (absent)

Bob O’Donnell  (absent)

Carl Raup

Lana Walker

Donna Watson

 

Guests:

Tom Beckett and Dave Eckhart, NW Financial Group, LLC

 

Membership:  Randy introduced new member, Carl Raup, and announced the resignation of Rich Bartnik and Paul Olivett, committee chair.  He asked that members share any recommendations for membership.

 

Approval of Minutes:  The May 14, 2014 meeting minutes were approved.    

 

Municipal Advisor:  Dave Eckhart and Tom Beckett of NW Financial Group spoke briefly of their background.  They reviewed the information they would be presenting to the school board later that evening related to two refunding opportunities.  Due to lower financing rates, refunding of General Obligation Bonds, Series of 2009 and Series C of 2010, is estimated to generate savings in excess of three percent.

 

State High Project Financing:  Randy encouraged the committee to ask Dave and Tom any questions related to financing the State High project.  NW mentioned that the district has been very conservative in budgeting for the project.  Interest rates are likely going to be a full percentage lower when finalizing the financing.  Questions/comments from the Committee: 

--need to finalize construction side before we can finalize financing in order to know what the draw schedule is

--how can you overlay the last two economic downturns to decide when to issue debt; rates can move quickly. 

NW responded they might recommend an underwriter for the larger portion of debt to keep an eye on rates and get in when they see a move.  They will be looking at cash flow, with some level of risk, preparing “what if” scenarios. 

 

Development Proposal:  There was very little interest due to the position being part time.  A few budgetary changes will allow it to be re-advertised at a full-time level.

 

Property Tax Relief:  Randy will analyze the work that was done by committee members and bring it back to the full committee for discussion at a future meeting.

 

Future Agenda Items:  Membership, and appoint a Chairperson.

 

Adjourn:  The meeting adjourned at 5:15 pm.

 

Submitted by:

Marie Caster