City of San Antonio - File #: 15-3249

• File #: 15-3249
• Type: Resolution
• In control: City Council A Session
• On agenda: 6/4/2015
• Posting Language: A Resolution approving a financing and refinancing by the Arlington Higher Education Finance Corporation, of its Education Revenue Refunding Bonds (Harmony Public Schools), Series 2015, for purposes of Section 147(f) of the Internal Revenue Code. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Director, Finance]

Date	Ver.	Action By	Action	Result
6/4/2015	1	City Council A Session	approved	Pass

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

Approval of financing and refinancing for purposes of the Internal Revenue Code


SUMMARY:

This Resolution approves a financing and refinancing by the Arlington Higher Education Finance Corporation, of its Education Revenue Refunding Bonds (Harmony Public Schools), Series 2015, for purposes of Section 147(f) of the Internal Revenue Code.


BACKGROUND INFORMATION:


Section 147(f) of the Internal Revenue Code (the "Code") requires that the issuance of any qualified 501(c)(3) obligations be approved by the applicable elected representative of the governmental unit in which the project is located after a public hearing following reasonable public notice.

The City was contacted regarding Harmony Public Schools (the "School"), a qualified 501(c)(3) organization, financing and refinancing the cost of acquiring, constructing, improving, and equipping certain educational facilities located at 8505 Lakeside Pkwy. and 8125 Glen Mont Dr. in San Antonio (the "Project").

In order to finance and refinance the cost of certain educational facilities, the School is borrowing money from the Arlington Higher Education Finance Corporation (the "Corporation") which was created and approved by the City of Arlington, Texas, pursuant to state law. The Corporation is empowered to issue revenue bonds in order to assist institutions of education in financing and refinancing educational facilities. The School has entered into a Loan with the Corporation who is issuing the bonds in an aggregate principal amount not to exceed $150,000,000 to finance and refinance the cost of the Project.

A Notice of Public Hearing was published and a hearing was subsequently conducted by the Corporation on May 8, 2015. A copy of the published Notice of Public Hearing, an Affidavit of Publication, and a Certificate of Public Hearing signed by the Hearing Officer are attac...