SCHOOL DISTRICT OF SPRINGFIELD TOWNSHIP Montgomery County, Pennsylvania FINANCE COMMITTEE MEETING NOTES March 6, 2014 PRESENT: Mr. Walter Lapidus, School Board Member Mr. Ben Rayer, School Board Member Ms. Gretchen Slapinsky Dr. Nancy Hacker, Superintendent of Schools Mr. Ken King, Business Administrator Mr. Lou Verdelli, RBC Capital Markets Ms. Jamie Doyle, PFM Ms. Pam Baker, Barbacane, Thornton & Company LLP Ms. Beth McCallion, Secretary Mr. King opened the meeting, directing to topic # 1 – Bond Refinancing Options. Mr. King stated the intent of each presentation was to provide data and allow discussion among the Finance Committee in order to help recommend to the full Board which refinancing method to pursue. 1.) BOND REFINANCING OPTIONS Presentation by Mr. Lou Verdelli RBC Capital Markets Mr. Verdelli reviewed the steps for refinancing using a parameters bond resolution. RBC would prepare the necessary documents, the parameters bond resolution and bond purchase agreement and they would monitor the market and complete the bond sale, when appropriate. Mr. Verdelli provided a handout to meeting attendees. The handout included the following information: • • • • • • • A current summary of SDST’s Debt Service RBC’s track record of 3 refinancings for SDST SDST’s AA Credit Rating A review of the refinancing plan – the opportunity for a parameters Bond Sale for Series of 2009 and 2010 A comparison of the Parameter v/ Negotiated sales Gross Savings of $462,000 in FY 2014-2015 The advantage of RBC’s resources of both Financial Advisor and Underwriter Finance Committee Meeting Notes March 6, 2014 Page 2 BOND REFINANCING OPTION Presentation by Ms. Jamie Doyle PFM Ms. Doyle provided a handout to meeting attendees, and she reviewed the steps necessary for PFM’s Bond Refinancing. Included in this handout were the following details on the Advance Refunding of 2010 Bonds: • • • • 2.) Estimated Financing Schedule Maximum Parameters Schedule A Comparison of Competitive & Negotiated Sales An overview of PFM’s History with SDST PRESENTATION OF 2012 – 2013 AUDIT Presentation by Ms. Pam Baker Barbacane Thornton & Company LLP Ms. Baker presented an overview of the Audit Report for Year End June 30, 2013 to the Finance Committee. Ms. Baker briefly highlighted some of the areas and processes that were identified in SDST’s audit, including the following: • • • • • Outstanding Checks Ongoing Capital Projects Bank Recs AP and Payroll Controls Use of Fund Balance The final audit will be presented to the full Board at the Regular Meeting of March 18, 2014 for acceptance. 3.) AUDITOR RFP A brief discussion regarding going out for an RFP for audit services took place among the Finance Committee. There were comments made that recommended the need for “fresh eyes” for auditing, as well as comment in favor of continuance of using an auditing firm who knows the district’s systems. 2