School District of Broward County, Florida

[Pages:18]School District of Broward County, Florida

Financial Advisory Committee Meeting

December 17, 2019

PFM Financial Advisors LLC

300 S. Orange Avenue Suite 1170 Orlando, FL 32801

407.406.2208

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Agenda

I. Municipal Market Update II. Florida School District Finance 101

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I. Market Update

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Municipal Market Interest Rates

3.50%

MMA AAA G.O. Curve

Current 6 Months Ago

1 Month Ago 1 Year Ago

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

MMD Ranges Over Past 10 Years

6.00%

MMD Range

Current

Average

5.00%

4.00%

3.00%

2.00%

1.00%

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10

15

20

25

30

Maturity

1 2 3 4 5 7 10 15 20 25 30 Maturity

Rates as of December 12, 2019

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Historical Interest Rates

4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50%

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Market Yields: December 2009 to December 2019

10 Year UST Bond

10 Year AAA MMD

Current: 12/12/19 Average: 2009 - Current

Difference

10 Year UST Bond 1.89% 2.40% -51 bps

10 Year AAA MMD 1.44% 2.19% -75 bps

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Rates as of December 12, 2019

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II. Florida School District Finance 101

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Overview of Financing Process

Plan of Finance Legal Framework

? Determine project cost & timing ? Identify source of repayment ? Size & structure the bonds ? Determine method of sale

? Board approval, if required ? Public notice & hearing, if required ? Tax analysis & due diligence ? Prepare disclosure document (official statement)

Access Capital Markets

? Obtain ratings, if needed ? Obtain credit enhancement, if needed ? Underwriter & investor reach out ? Sell & price the bonds

Closing and Administration

? Closing, transfer of proceeds ? Investment of bond proceeds ? Begin project & track progress ? Make principal & interest payments ? Monitor for refinancing opportunities ? Comply with disclosure and arbitrage regulations

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