Expert answer:I need help with a business and finance assignment
Answer & Explanation:Please see attached Official financial statement for an educational
project and make PowerPoints presentation slides descriptions, and how it was
financed and payback. You need to highlight by marker were you found the info
on the statement PDF copy and send back
to me with the slides. Also you need to write a paper from 2-3 page as summary
of the information coved in the slides.
Again, what is required from is what
I asked above. See the points and instructions below and attachments.
1)
The
Project PDF that is going to be used is attached.
2)
You
must do PowerPoints slides. (The piece of information in the statement should
be copied and paste on the slide to show where you found the answers on the PDF
statement.
3)
You
need to highlight by marker were you found the info in the statement PDF copy.
4)
You
need to write a paper from 2-3 page as summary of the information coved in the
slides. (Professional essay or report.)
5)
90%
of information can be found on the summary pages and description pages on the
Official financial statement
6)
Summary
of my lectures is attached for you to understand and use.
Instructions:
In-Class
Presentation
CAPITAL
BUDGETING AND FINANCING PUAD.705
Fall 2015
Purpose:
This project
will involve roughly a 20-minute PowerPoint presentation by each student on the
financing of a specific capital project for a State or local government.
Project
Components: This project should cover the following
information that you can identify:
1)
A description of the project.
2)
When it was built.
3)
The sources of all financing (cash, debt, other
levels of government);
4)
How much cash and/or debt was used.
5)
What pledges of security were provided?
6)
Was the debt rated and if so at what level?
7)
Was the debt insured?
8)
Who was the underwriter?
9)
How many tranches of debt were issued?
10) Were any
bond premiums or discounts received?
11) What was
the maturity of the debt?
12) Other
pertinent information. Point to make sure you cover it.
·
Types of capital (Operating budget, Capital
budget) Is operations and capital needs?
·
Reasons
·
Facilities
·
Funding
options such as by “grants, loan, debt, bonds, etc.”
·
Who will
build, Who will own, and Who will operate,
·
Principle amount,
·
Term
·
Type of
debt. Debt service, Maximum Debt outstanding, and Debt limit. Is it PAYGO?
PAYGO vs Debt, (General Obligation and Revenue Bonds), Debt Policy, Debt
Service and Coverage.
·
Interest
·
Process.
·
PAR value.
·
Amortization table.
·
Summary of Budget Cycle.
·
Finance
team.
·
Bond Rating.
·
Trustee.
·
Pledge and Secondary Pledge.
·
Bond/debt
·
Is it Multi-Year Planning?
·
Time value of money, Taxable vs. Tax Exempt
Debt, Fixed vs. Variable Rates.
·
The
Relationship between Risk and Interest Rates.
·
Call Provisions.
·
Arbitrage.
·
State and Local Government Securities (SLGS).
·
Bond
Ratings.
·
Credit Enhancements.
·
Creative
Finance ,Conduit Financing ,Tax Increment Financing ,Bond Anticipation
Notes/Tax Anticipation Notes/Grant Anticipation Notes, Public Private
Partnerships etc. (Pleas look at the budgeting lectures summary)MICassopolis01a-FIN.pdf 705 PPT instructions.docx Budgeting lectures summary.docx
micassopolis01a_fin.pdf
705_ppt_instructions.docx
budgeting_lectures_summary.docx
Unformatted Attachment Preview
NEW ISSUE
Rating ¹†: Standard & Poor’s: AABook-Entry-Only
TAX STATUS: In the opinion of Thrun Law Firm, P.C., Bond Counsel, assuming continued compliance by the School District with certain
requirements of the Internal Revenue Code of 1986, as amended (the “Code”), interest on the Bonds is excluded from gross income for federal
income tax purposes, as described in the opinion, and the Bonds and interest thereon are exempt from all taxation in the State of Michigan,
except inheritance and estate taxes and taxes on gains realized from the sale, payment or other disposition thereof. The School District has
designated the Bonds as “QUALIFIED TAX-EXEMPT OBLIGATIONS” within the meaning of the Code, and has covenanted to comply
with those requirements of the Code necessary to continue the exclusion of interest on the Bonds from gross income for federal income tax
purposes.
$3,330,000
CASSOPOLIS PUBLIC SCHOOLS
County of Cass
State of Michigan
2015 School Building and Site Bonds
(General Obligation – Unlimited Tax)
PURPOSE AND SECURITY: The 2015 School Building and Site Bonds (General Obligation – Unlimited Tax) (the “Bonds”) were authorized at
an election on August 4, 2015, for the purpose of remodeling, furnishing and refurnishing, equipping and re-equipping, and replacing roofs on
school facilities, in part, for building security and energy conservation improvements; acquiring and installing instructional technology in school
buildings; and preparing, developing, and improving outdoor athletic facilities. The Board of Education authorized the issuance of the Bonds by
resolutions adopted on August 24, 2015 and expected to be adopted on October 26, 2015 (together, the “Resolutions”) . The Bonds will pledge
the full faith, credit and resources of the Cassopolis Public Schools, County of Cass, State of Michigan (the “School District”)for payment of the
principal and interest thereon, and will be payable from ad valorem taxes, which may be levied without limitation as to rate or amount as provided
by Article IX, Section 6, of the Michigan Constitution of 1963. The rights or remedies of bondholders may be affected by bankruptcy, insolvency,
fraudulent conveyance or other laws affecting creditors’ rights generally, now existing or hereafter enacted, and by the application of general
principles of equity including those relating to equitable subordination.
BOOK-ENTRY-ONLY: The Bonds are issuable only as fully registered bonds without coupons, and when issued, will be registered in the name of
Cede & Co., as Bondholder and nominee for The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository
for the Bonds. Purchases of beneficial interests in the Bonds will be made in book-entry only form, in the denominations of $5,000 or any integral
multiple thereof. Purchasers will not receive certificates representing their beneficial interest in Bonds purchased. So long as Cede & Co. is the
Bondholder, as nominee of DTC, references herein to the Bondholders or registered owners shall mean Cede & Co., as aforesaid, and shall not
mean the Beneficial Owners of the Bonds. See BOOK-ENTRY ONLY SYSTEM herein.
PAYMENT OF BONDS: Interest on the Bonds will be payable semiannually on May 1 and November 1 of each year commencing on May 1, 2016.
The The Bonds will be registered Bonds, of the denomination of $5,000 or multiples thereof not exceeding for each maturity the principal amount
of such maturity. The principal and interest shall be payable at the corporate trust office of The Huntington National Bank, Grand Rapids,
Michigan (the “Paying Agent”) or such other Paying Agent as the School District may hereafter designate by notice mailed to the registered owner
not less than sixty (60) days prior to any interest payment date. So long as DTC or its nominee, Cede & Co., is the Bondholder, such payments
will be made directly to such Bondholder. Disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants and
Indirect Participants, as more fully described herein. Interest shall be paid when due by check or draft mailed to the registered owner as shown
on the registration books as of the fifteenth day of the month preceding the payment date for each interest payment.
Principal Due: May 1 of each year as shown below
Dated: November 12, 2015
MATURITY SCHEDULE
(Base CUSIP§: 148303)
Year
2016
2017
2018
2019
2020
Amount
$260,000
305,000
315,000
325,000
330,000
Interest
Rate
1.00%
1.00
2.00
2.00
2.00
Yield
0.60%
0.85
1.05
1.25
1.50
CUSIP§
EW6
EX4
EY2
EZ9
FA3
Year
2021
2022
2023
2024
2025
Amount
$340,000
350,000
360,000
370,000
375,000
Interest
Rate
2.00%
2.00
2.00
3.00
3.00
Yield
1.60%
1.80
2.00
2.15
2.25
CUSIP§
FB1
FC9
FD7
FE5
FF2
J.J.B. Hilliard, W.L. Lyons, Inc.
PRIOR REDEMPTION: Bonds of this issue are not subject to redemption at the option of the School District prior to maturity as described
herein. See “NO PRIOR REDEMPTION – No Optional Redemption” herein.
BOND COUNSEL: The Bonds will be offered when, as and if issued by the School District subject to the approving legal opinion of Thrun Law
Firm, P.C., Novi, Michigan.
This cover page contains information for a quick reference only. It is not a summary of this issue. Investors must read the entire Official Statement to
obtain information essential to the making of an informed investment decision.
Additional information relative to this Bond issue may be obtained from:
Public Financial Management, Inc.
3989 Research Park Drive
Ann Arbor, Michigan 48108
734-668-6688
Official Statement Dated: October 26, 2015
¹ For an explanation of ratings, see “CREDIT RATING” herein.
† As of the date of delivery
* Preliminary, subject to change.
§ Copyright 2015, American Bankers Association. CUSIP data herein is provided by Standard & Poor’s CUSIP Service Bureau, a division of the McGraw-Hill
Companies, Inc. The School District shall not be responsible for the selection of CUSIP numbers, nor any representation made as to their correctness
on the Bonds or as indicated above.
CASSOPOLIS PUBLIC SCHOOLS
725 Center Street
Cassopolis, Michigan 49031
Phone: 269-445-0503
Fax: 269-445-0505
BOARD OF EDUCATION
PRESIDENT
Scott R. Ward
Term Expires December 2016
VICE PRESIDENT
Lisa A. Cutting
Term Expires December 2018
SECRETARY
Susan L. Horstmann
Term Expires December 2018
TREASURER
George M. Calvert
Term Expires December 2018
TRUSTEES
Deborah K. Deubner
Term Expires December 2018
Jesse L. Binns
Term Expires December 2018
Amanda M. Smego
Term Expires December 2016
SUPERINTENDENT
Tracy D. Hertsel
BUSINESS MANAGER
Becky Smith
PROFESSIONAL SERVICES
PAYING AGENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Huntington National Bank
BOND COUNSEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thrun Law Firm, P.C.
FINANCIAL CONSULTANT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Public Financial Management, Inc.
ii
TABLE OF CONTENTS
Page
INFORMATION FOR BIDDERS . . . . . . . . . . . . . . . . .
PURPOSE AND SECURITY . . . . . . . . . . . . . . . . .
NO PRIOR REDEMPTION . . . . . . . . . . . . . . . . . .
NOTICE OF SALE . . . . . . . . . . . . . . . . . . . . . . . . .
BOOK-ENTRY ONLY SYSTEM . . . . . . . . . . . . .
TAX PROCEDURES . . . . . . . . . . . . . . . . . . . . . . .
LEVY AND COLLECTION OF TAXES FOR
PAYMENT OF THE BONDS AND
BONDHOLDERS’ REMEDIES . . . . . . . . . . .
TRANSFER OUTSIDE BOOK-ENTRY-ONLY
SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SOURCES OF SCHOOL OPERATING
REVENUE . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MICHIGAN PROPERTY TAX REFORM . . . . . . .
LITIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TAX MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . .
State of Michigan . . . . . . . . . . . . . . . . . . . . . . .
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Original Issue Premium . . . . . . . . . . . . . . . . . .
Future Developments . . . . . . . . . . . . . . . . . . . .
APPROVED BY THE MICHIGAN
DEPARTMENT OF TREASURY . . . . . . . . . .
CONTINUING DISCLOSURE . . . . . . . . . . . . . . .
BOND COUNSEL’S RESPONSIBILITY . . . . . . .
FINANCIAL CONSULTANT’S OBLIGATION . .
CREDIT RATING . . . . . . . . . . . . . . . . . . . . . . . . .
ESTIMATED SOURCES AND USES OF FUNDS
GENERAL FINANCIAL INFORMATION . . . . . . . .
AREA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
POPULATION . . . . . . . . . . . . . . . . . . . . . . . . . . .
PROPERTY VALUATIONS . . . . . . . . . . . . . . . .
Historical Valuations . . . . . . . . . . . . . . . . . . .
Per Capita Valuation . . . . . . . . . . . . . . . . . . .
Industrial Facilities Tax (IFT) . . . . . . . . . . . .
TAX BASE COMPOSITION . . . . . . . . . . . . . . . .
MAJOR TAXPAYERS . . . . . . . . . . . . . . . . . . . . .
TAX RATES – (Per $1,000 of Valuation) . . . . . . .
Cassopolis Public Schools . . . . . . . . . . . . . . .
Other Major Taxing Units . . . . . . . . . . . . . . .
STATE AID PAYMENTS . . . . . . . . . . . . . . . . . .
TAX LEVIES AND COLLECTIONS . . . . . . . . .
LABOR FORCE . . . . . . . . . . . . . . . . . . . . . . . . . .
PENSION FUND . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER POST-EMPLOYMENT BENEFITS . . .
1
1
1
1
1
3
DEBT STATEMENT . . . . . . . . . . . . . . . . . . . . . . 16
DIRECT DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
OVERLAPPING DEBT . . . . . . . . . . . . . . . . . . . . 16
DEBT RATIOS . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
DEBT HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . 16
FUTURE FINANCING . . . . . . . . . . . . . . . . . . . . 16
OTHER BORROWING . . . . . . . . . . . . . . . . . . . . 17
LEGAL DEBT MARGIN . . . . . . . . . . . . . . . . . . . 17
SCHOOL BOND QUALIFICATION AND LOAN
PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . 17
4
4
4
5
6
6
6
6
7
7
7
8
8
8
9
9
10
10
10
10
10
11
11
12
12
13
13
13
13
14
14
14
15
GENERAL ECONOMIC INFORMATION . . . . . . . .
LOCATION AND AREA . . . . . . . . . . . . . . . . . . .
POPULATION BY AGE . . . . . . . . . . . . . . . . . . .
INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMPLOYMENT CHARACTERISTICS . . . . . . .
EMPLOYMENT BREAKDOWN . . . . . . . . . . . .
UNEMPLOYMENT . . . . . . . . . . . . . . . . . . . . . . .
BANKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
18
18
18
19
19
20
20
GENERAL SCHOOL INFORMATION . . . . . . . . . . .
DESCRIPTION . . . . . . . . . . . . . . . . . . . . . . . . . . .
BOARD OF EDUCATION . . . . . . . . . . . . . . . . .
SCHOOL ENROLLMENT . . . . . . . . . . . . . . . . . .
Historical Enrollment . . . . . . . . . . . . . . . . . . .
Enrollment by Grade . . . . . . . . . . . . . . . . . . .
Projected Enrollment . . . . . . . . . . . . . . . . . . .
EXISTING SCHOOL FACILITIES . . . . . . . . . . .
OTHER SCHOOLS . . . . . . . . . . . . . . . . . . . . . . .
OTHER MATTERS . . . . . . . . . . . . . . . . . . . . . . .
21
21
21
21
21
21
21
22
22
22
APPENDIX A – BUDGET . . . . . . . . . . . . . . . . . . . . . A-1
APPENDIX B – AUDIT . . . . . . . . . . . . . . . . . . . . . . . B-1
APPENDIX C – FORM OF CONTINUING
DISCLOSURE AGREEMENT . . . . . . . . . . . . . . C-1
APPENDIX D – DRAFT LEGAL OPINION . . . . . . . D-1
APPENDIX E – DRAFT OFFICIAL
NOTICE OF SALE . . . . . . . . . . . . . . . . . . . . . . . E-1
iii
[THIS PAGE INTENTIONALLY LEFT BLANK]
INFORMATION FOR BIDDERS
$3,330,000
CASSOPOLIS PUBLIC SCHOOLS
County of Cass
State of Michigan
2015 School Building and Site Bonds
(General Obligation – Unlimited Tax)
DATED:
November 12, 2015
FIRST INTEREST:
May 1, 2016
REGISTRATION:
Principal and Interest
PAYING AGENT:
The Huntington National Bank, Grand Rapids, Michigan
TAX DESIGNATION:
QUALIFIED TAX – EXEMPT OBLIGATIONS
PRINCIPAL DUE:
May 1, annually as shown the front cover
PURPOSE AND SECURITY
The Bonds were authorized at an election on August 4, 2015, for the purpose of remodeling, furnishing and
refurnishing, equipping and re-equipping, and replacing roofs on school facilities, in part, for building security and energy
conservation improvements; acquiring and installing instructional technology in school buildings; and preparing, developing,
and improving outdoor athletic facilities. The Bonds will pledge the full faith, credit and resources of the School District for
payment of the principal and interest thereon, and will be payable from ad valorem taxes, which may be levied without
limitation as to rate or amount as provided by Article IX, Section 6, of the Michigan Constitution of 1963. The rights or
remedies of bondholders may be affected by bankruptcy, insolvency, fraudulent conveyance or other laws affecting creditors’
rights generally, now existing or hereafter enacted, and by the application of general principles of equity including those
relating to equitable subordination.
NO PRIOR REDEMPTION
Bonds of this issue are not subject to redemption at the option of the School District prior to maturity.
NOTICE OF SALE
See “APPENDIX E – DRAFT OFFICIAL NOTICE OF SALE,” for further information regarding this issue.
BOOK-ENTRY ONLY SYSTEM
The information in this section has been furnished by The Depository Trust Company, New York, New York (“DTC”).
No representation is made by The Huntington National Bank, Grand Rapids, Michigan (the “Paying Agent”) as to the
completeness or accuracy of such information or as to the absence of material adverse changes in such information subsequent
to the date hereof. No attempt has been made by the School District or the Paying Agent to determine whether DTC is or will
be financially or otherwise capable of fulfilling its obligations. Neither the School District nor the Paying Agent will have any
responsibility or obligation to Direct Participants, Indirect Participants (both as defined below) or the persons for which they
act as nominees with respect to the Bonds, or for any principal, premium, if any, or interest payment thereof.
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the
“Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered
Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will
be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be
issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any
remaining principal amount of such issue.
1
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency”
registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset
servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market
instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates
the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through
electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for
physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The
Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing
Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users
of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship
with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The
DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC
can be found at www.dtcc.com.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial
Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written
confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing
details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which
the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by
entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will
not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system
for the Securities is discontinued.
To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name
of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC.
The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect
any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records
reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the
Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf
of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among
them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities
may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities,
such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners
of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit
notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the
registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s
practice is to determine by lot the amount of the interest of each Direct Part …
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