Ohio Administrative Code › Title 3301 - Department of Education - Administration and Director › Chapter 3301-8 - Payment of Debt Service Charges › Section 3301-8-01 - Payment of debt charges under the state credit enhancement program

Current through all regulations passed and filed through July 1, 2024
(A) As used in this
			 rule, the terms "debt charges" and "securities" have the same meanings as in
			 section 133.01 of the Revised Code, and
			 "state education aid" has the same meaning as is in section
			 5727.84 of the Revised
			 Code.
(B) The board of education of
			 any school district seeking approval from the department of education and
			 workforce and the office of budget and management for participation in the
			 payment of debt charges under the state credit enhancement program is to submit
			 to the department of education and workforce and the office of budget and
			 management a copy of a school district board-approved resolution requesting
			 participation in the program and certifying the district debt obligations are
			 in compliance and within statutory debt limitations established for the school
			 district. In addition to the resolution, the district will submit an
			 application certified by the treasurer attesting to the accuracy and
			 completeness of the following information:
(1) The current credit rating or ratings for
			 the school district, the latest rating report or surveillance rating report
			 from the rating agency or agencies, and an indication if the school district
			 has made, or expects to make, an application for a credit rating with one or
			 more nationally recognized credit rating organizations with respect to the
			 securities proposed to be issued in connection with the state credit
			 enhancement program outlined under section
			 3317.18 of the Revised
			 Code;
(2) The following debt
			 schedules in the format specified by the office of budget and management,
			 including a description of the debt (series name); payment details by payment
			 date of principal, interest, and total payment; and annual totals by fiscal
			 year for:
(a) Current outstanding
			 obligations, as identified in
			 3317.18(B)(2)(a)
			  of the Revised Code, to which state
			 education aid from Chapter 3317 of the Revised Code is pledged, including but
			 not limited to prior issuances under the state credit enhancement program,
			 obligations purchased and held by the treasurer of the state under division
			 (G)(1) of section 135.143 of the Revised Code and solvency assistance
			 advances;
(b) The securities
			 proposed to participate in the state credit enhancement program as outlined
			 under section 3317.18 of the Revised
			 Code;
(c) An aggregated debt
			 schedule combining all outstanding and proposed obligations detailed in
			 paragraph (B)(2) of this rule such that the debt schedules of paragraph
			 (B)(2)(a) plus the debt schedules of paragraph (B)(2)(b) of this rule equal the
			 aggregated debt schedule.
(3) The latest school district five-year
			 forecast, including both projections and assumptions, submitted through EMIS
			 (education management information system) or in such other format as specified
			 by the department of education and workforce within thirty days prior to
			 submission of the state credit enhancement program application. If the latest
			 submission is older than thirty days, it may be submitted provided the
			 treasurer certifies it still accurately represents the current financial status
			 of the district;
(4) If the school
			 district is designated as a fiscal oversight district in accordance with
			 Chapter 3316 of the Revised Code when the application for participation in the
			 state credit enhancement program is submitted or at any time prior to the sale
			 and issuance of the securities proposed for participation in this program, the
			 district treasurer is to certify a statement to accompany the five-year
			 forecast detailing the district's current and proposed efforts to restore
			 financial solvency and how participation in the program may assist in restoring
			 fiscal solvency. The statement will include disclosure of any loans obtained
			 from the state for solvency assistance and the unpaid balance of these loans at
			 the time of application for participation in the program as detailed in the
			 debt schedules provided in accordance with paragraph (B)(2) of this
			 rule;
(5) A statement as to how
			 participation in the state credit enhancement program will enhance the
			 marketability of the securities;
(6) A statement of the current and projected
			 state education aid due to the school district per the most recent "Foundation
			 Payment Report - Statement of Settlement", or any subsequent replacement
			 report, provided by the department of education and workforce and located on
			 its website (education.ohio.gov). For purposes of the calculation of the ratios
			 described in paragraphs (B)(7) and (B)(8) of this rule, the bottom line on this
			 report described as "Total Payment" is considered to be the amount of state
			 education aid to be distributed to the school district;
(7) Documentation in the format specified by
			 the office of budget and management showing the district's calculation of the
			 ratio of the projected amount of state education aid to be distributed to the
			 school district for the current fiscal year to the maximum annual debt charges
			 for debt participating in the state credit enhancement program, including the
			 proposed securities due in the current or any future fiscal year as documented
			 in the aggregated debt schedule set forth in paragraph (B)(2)(c) of this rule,
			 and the identification of the year in which the maximum annual debt charges
			 occur;
(8) Documentation in the
			 format specified by the office of budget and management showing the district's
			 calculation of the ratio of the projected amount of state education aid
			 remaining to be distributed to the school district for the current fiscal year
			 to the debt charges remaining to be paid in the fiscal year for debt
			 participating in the state credit enhancement program, including the proposed
			 securities as documented in the aggregated debt schedule set forth in paragraph
			 (B)(2)(c) of this rule;
(9) A
			 statement regarding the purpose of the securities to be issued in connection
			 with the state credit enhancement program outlined under section
			 3317.18 of the Revised Code (if
			 the issue is for refunding purposes, explain what previous securities are being
			 refunded and whether they were issued under the state credit enhancement
			 program);
(10) A statement
			 indicating the estimated net savings afforded to the school district through
			 participation in the state credit enhancement program;
(11) Contact information for the school
			 district's underwriter and/or municipal advisor, bond counsel, and primary
			 paying agent or fiscal agent if available;
(12) A financing schedule of significant
			 events detailing the estimated time frame for the issuance and sale of
			 securities. Approval of the request for participation in the state credit
			 enhancement program is valid only during the estimated time frame for the
			 issuance and sale of bonds, which may be extended, but not to exceed twelve
			 months from the original approval date;
(13) Bonds supported by an income tax under
			 division (E) of section
			 3318.052 of the Revised Code
			 need to include the following documents that can be obtained from the
			 department of taxation:
(a) Certification
			 letter providing tax rate, equivalent millage, and, if necessary, effective
			 millage reduction estimates;
(b)
			 Certification of the first year's collections pursuant to section
			 5748.05 of the Revised Code;
			 and
(c) The report of income tax
			 returns by level of income for the most recent tax year available.
(14) Any supplemental information
			 the department of education and workforce or the office of budget and
			 management requests to evaluate the securities for participation in the state
			 credit enhancement program outlined in section
			 3317.18 of the Revised
			 Code.