Getting the most from your cash flow borrowing program
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Getting the Most from Your Cash Flow Borrowing Program. Education Cash Flow (ECF) FY 2012 Program A. Piper Jaffray & Co. Des Moines Public Finance 3900 Ingersoll Avenue, Suite 110 Des Moines, IA 50312 800 333-6008. Matt Gillaspie Senior Vice President matthew.r.gillaspie@pjc.com

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Getting the most from your cash flow borrowing program

Getting the Most from Your Cash Flow Borrowing Program

Education Cash Flow (ECF)

FY 2012 Program A


Piper jaffray co
Piper Jaffray & Co.

Des Moines Public Finance

3900 Ingersoll Avenue, Suite 110

Des Moines, IA 50312

800 333-6008

Matt Gillaspie

Senior Vice President

matthew.r.gillaspie@pjc.com

515 247-2353

Timothy Oswald

Managing Director

timothy.j.oswald@pjc.com

515 247-2358

Travis Squires

Vice President

travis.r.squires@pjc.com

515 247-2354


Education cash flow ecf fund
Education Cash Flow (ECF) Fund

  • Meeting your cash flow borrowing needs

  • A partnership of Piper Jaffray and Iowa School Finance Information Services (ISFIS)


So what is ecf
So, what is ECF?

  • A 28E entity to allow school districts to meet their cash flow needs.

  • Only school districts are members of the 28E.

  • Annual structure is flexible to meet changing market conditions.


Who is involved
Who is Involved?

  • Piper Jaffray – Underwriter/Line of Credit Organizer

  • Kutak Rock – bond counsel

  • ISFIS – Administrator

  • Let’s look at each party’s responsibilities:


Piper jaffray
Piper Jaffray

  • Piper:

    • Reviews cash flow estimates; reviews warrant sizing amount.

    • Review with schools compliance with tax laws.

    • Arranges for credit support or lender where appropriate.

    • Secures credit rating, where appropriate.

    • Sells warrants to investors when public securities offered.


Kutak rock
Kutak Rock

  • Denver-based national bond counsel.

  • Extensive work in school TRANS programs around the country.

  • Experience in Iowa.


Isfis
ISFIS

  • Program Administrator. Responsible for:

    • Building cash flow software interface.

    • Loading data from the Department of Management and the Department of Education.

    • Collecting documents from districts.

    • Handling day to day transactions.

    • Answering phone call, emails and questions from districts.

    • Producing monthly statements/general accounting.


Other parties
Other Parties

  • Third party trustee who holds the warrants and administers day-to-day investments.

  • Lender if line of credit structure is used.


Anticipated program structure
Anticipated Program Structure

Program structure will be driven by economics. We anticipate:

  • Warrants underwritten by Piper – not a line of credit.

  • School will have local flexibility to reinvest idle proceeds.

  • You can depend on ECF to provide you the information to make an informed decision regarding reinvestment.

  • Two draw dates – either July 1 or August 1.


Timelines
Timelines

  • March 18: Cash flow submission begins.

  • April 1: Deadline for cash flow submission.

  • April/May: Boards approve resolution to participate.

  • June 10: Last date to drop out of July draw.

  • July 1: Closing of July draw – all warrant funds delivered to schools requesting July funds.

  • July 10: Last date to drop out of August draw.

  • August 1: Closing of August draw- all warrant funds delivered to schools requesting July funds.


Timelines1
Timelines

  • Note: you may draw none, some or all of your warrant on 7/1, and then none, some or all of your remaining balance on 8/1.

  • Sinking fund timelines:

    • 11/25/11 First sinking fund payment due (25%)

    • 12/25/11 Second sinking fund payment due (50%)

    • 1/25/12 Third sinking fund payment due (75%)

    • 2/25/12 Final sinking fund payment due (100%)


Am i going to have gobs of paperwork to fill out
Am I going to have gobs of paperwork to fill out?

  • Paperwork has been streamlined to maximum extent possible.

  • Cash flow submitted via Excel: pre-loaded data where possible.

  • Final cash flow signed by school and mailed to ECF.

  • No workout plans required, but we will work with schools to develop realistic long range cash flow plans if needed.

  • All resolutions have been prepared.

  • We’re here to help – if you have questions, call or email.


How do i evaluate my options
How do I evaluate my options?

  • Look at net borrowing cost. Take into consideration:

    • Up-front fees

    • Rate of return on idle funds

    • Services provided

    • Program transparency

  • Make sure comparison is apples to apples.

  • Use tools to figure net borrowing cost.


What do piper and isfis commit to
What do Piper and ISFIS commit to?

  • Evaluate the marketplace.

  • Offer a customer driven program: we’ll make sure the solution fits the market conditions.

  • Give schools the tools to make the decision that is in the school’s best interest.

  • Provide continuing customer services – when you have questions we’ll find the answers.


Thanks for considering ecf
Thanks for considering ECF

  • We really appreciate the opportunity to earn your business.

  • Please do not hesitate to contact us if you have questions.

Larry Sigel

ISFIS

515-251-5970

515-490-9951 (cell)

larry.sigel@isfis.net

Matt Gillaspie

Piper Jaffray

515-247-2353

800-333-6008

Matthew.R.Gillaspie@pjc.com