| (iv) The district must certify the projected net present
value savings for refinancing described in clauses (i)-(iii) of this
subparagraph based on the parameters prescribed therein. The district
must submit the certification in a format prescribed by the commissioner.
(B) A conversion of the period, mode, or index used
to determine the interest rate for eligible debt in accordance with
the order authorizing the issuance or delivery of such eligible debt
shall not be considered a refunding of eligible debt, and a district
shall be eligible for state funding assistance based on the new debt
service schedule contingent upon receipt of the required amended application
packet as defined in paragraph (7) of this subsection.
(C) A district may refinance IFA-supported debt up
to two times after the issuance of the original IFA-supported debt.
Upon the third or subsequent refinancing transaction, the TEA may
evaluate the IFA-supported debt for conversion to the Existing Debt
Allotment (EDA) program. Determination of eligibility for conversion
will be based on the district's remaining capacity in the EDA program
and the district's other IFA-supported debt. The TEA will notify the
district of the conversion within 180 days of receiving notification
of the third or subsequent refinancing transaction involving an IFA-supported
debt.
(10) Certain other refinanced debt may be eligible
for the funding under this subsection.
(A) When a district issues a general obligation bond
to acquire a facility that is the subject of an existing lease-purchase
agreement of the district or refinances an existing lease-purchase
agreement with another lease-purchase agreement, the transaction is
considered a refinancing of the lease-purchase agreement for purposes
of continued participation in the IFA program. Any transactions affecting
the lease-purchase agreement, including those that affect the underlying
bonds, are subject to the amendment requirements and eligibility criteria
specified in paragraphs (7)-(9) of this subsection, including the
restrictions related to early redemption and extension of maturity
dates, and the requirement for the refinancing transactions to produce
present value savings.
(B) A lease-purchase agreement in the IFA program that
is refinanced with a general obligation bond or another lease-purchase
agreement at a present value savings and without extension of the
original term of the lease-purchase agreement shall remain part of
the IFA program. Any transaction that reduces the term of the lease-purchase
agreement to less than eight years will result in the disqualification
of IFA state aid on debt service that is associated with the lease-purchase
agreement, beginning with the date that the transaction is approved
by the school district board of trustees.
(C) Any portion of a bond issue that refinances a portion
of a lease-purchase agreement that was originally ineligible for IFA
funding shall remain ineligible. Ineligible debt includes refunded
bonds that fail to meet the criteria under TEC, §46.007, and/or
bonds used for purposes not meeting the definition of qualified projects
as described in TEC, §46.001 and §46.002.
(D) Any portion of a bond issue that refinances a portion
of an original lease-purchase agreement that was eligible for IFA
consideration but exceeded the IFA limit shall not be eligible for
consideration in future funding cycles.
(E) General obligation bonded debt that is used to
refinance a lease-purchase agreement that is not in the IFA program
shall gain eligibility for the IFA by the terms of that program. Any
interest and sinking (I&S) fund tax effort associated with the
bonded debt payments may be counted for purposes of computing the
IFA. For the refinancing to be considered for IFA funding, a district
must submit an application to the program that identifies the refinancing
as a new debt before the refinancing of the lease-purchase agreement.
(F) If any portion of a maturity of an IFA debt is
refinanced at a present value cost or with an extension of the term
beyond the fiscal year in which the final maturity occurs in the original
debt service schedule, the entire amount of annual debt service associated
with that maturity shall be removed from eligibility for further IFA
state aid.
(G) Debt that is refinanced in a manner that disqualifies
it for eligibility for funding within the IFA program shall be treated
as new bonded debt at the time of issuance for the purpose of EDA
funding consideration.
(11) In addition to I&S fund taxes collected in
the current school year, other district funds budgeted for the payment
of bonds may be eligible for the IFA program for the purpose of meeting
local share requirements pursuant to TEC, Chapter 46.
(A) District revenues that qualify for meeting a district's
local share requirement for the IFA are specified in the TEC, §46.003(b)-(d).
The commissioner will provide each district with information on which
tax collections were not equalized by state assistance in the preceding
school year and worksheets to enable districts to calculate tax collections
that will not receive state assistance in a current school year. The
commissioner will determine the amount of excess collections, if any,
to be applied to the IFA local share requirement.
(B) I&S fund taxes collected during a school year
will be attributed first to satisfy the local share requirement of
debts eligible for EDA state aid for that school year and, secondly,
to satisfy the local share requirements of any IFA debts for that
school year.
(12) If a district issues debt that requires the deposit
of payments into a mandatory I&S fund or debt service reserve
fund, the deposits will be considered debt payments for the purpose
of the IFA if the district's bond covenant calls for the deposit of
payments into a mandatory and irrevocable fund for the sole purpose
of defeasing the bonds or if the final statement stipulates the requirements
of the I&S fund and the bond covenant.
(e) Biennial limitation on access to allotment. The
guaranteed amount of state and local funds that a district may be
awarded under TEC, §46.003, is prescribed by TEC, §46.005.
A district may submit multiple applications for approval during the
same biennium. Timely application before executing the bond order
for bonds or authorizing the order for a lease-purchase agreement
must be made to ensure eligibility of the debt for program participation.
(f) Additional applications. For previously awarded
debt, increases in a district's debt allotment to pay for increases
in debt service payment requirements in subsequent biennia must receive
approval through one or more additional application(s). The portion
of any increase in eligible, qualified debt service that may be funded
in subsequent biennia is the amount that exceeds any previously awarded
and approved allotments, within the biennial limitation on funding
as calculated at the time of approval of the additional applications.
If additional IFA state aid is approved, the allotment limit will
be amended to reflect the increased IFA support for the applicable
debt issuance.
(g) Finality of award. Awards of assistance under TEC,
Chapter 46, will be made based on the information available to TEA
at the deadline for receipt of applications for that application cycle.
Changes in the terms of the issuance of debt, either in the length
of the payment schedule or the applicable interest rate, that occur
after the time of the award of assistance will not result in an increase
in the debt service considered for award.
(1) Any reduction in debt service requirements resulting
from changes in the terms of issuance of debt shall result in a reduction
in the amount of the award of assistance. Such a reduction in debt
service requirements may result in an adjustment to the allotment
awarded for the last application on the prioritization list to receive
funding during an application cycle, if that application was not fully
funded because of a lack of sufficient appropriations. In no case
will changes to debt service amounts result in the awarding of additional
IFA allotments for other eligible applications that were not funded
during that application cycle because of a lack of sufficient appropriations.
(2) Refinancing of the bonds or lease-purchase agreements
that receive IFA state aid may result in amendments to the allotment
for the original IFA-supported debt issuance and may result in the
designation of allotment amounts to be associated with the new debt
issuances that include refundings of the original IFA-supported debt
issuance.
(h) Data sources.
(1) For purposes of determining the limitation on assistance
and prioritization, the projected ADA as adopted by the legislature
for appropriations purposes shall be used.
(2) For purposes of prioritization, estimates of property
values under TEC, §48.269, shall be used.
(3) For purposes of both the calculation of the limitation
on assistance and prioritization, the commissioner may consider, before
the deadline for receipt of applications for that application cycle,
adjustments to data values determined to be erroneous.
Cont'd... |
