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CERTIFICATES OF PARTICIPATION

Policy Number: 
Board File: DFC

POLICY STATEMENT

The Board of Education (BOE) shall:

Limit the amount of aggregate Certificate of Participation lease agreements to a par amount that results in aggregate yearly lease payments of principal and interest in an amount that does not exceed 1% of the yearly General Fund Revenues or $5 million (note: General Fund revenues for DCSD include charter school revenue), whichever is greater. The intent of this policy statement is to provide the District an ability to meet capital requirements in a manner that minimizes the impact on the General Fund with consideration to the potential impact on the District’s credit rating.

  1. Incur Certificate of Participation (COP) lease purchase agreements only:
    1. when a highly important capital* need of the District exists and is referenced in the District’s Master Capital Plan and no authorization (i.e. voter approved election) to issue General Obligation Bond debt nor proceeds from previous bond sales exists to meet this need, or
       
    2. on behalf of a charter school when all requirements below are met and the incurrence of a COP lease purchase agreement on behalf of a charter school represents a win/win partnership with the District. 
       
      1. The charter school has been in existence for a minimum of three years and is expanding to a new site, or a new charter school with a solid financial plan projected through five years;
      2. The charter school agrees to locate in a geographical region of the District that has high student growth and results in the lessening of overcrowding;
      3. The charter school agrees to work with the District in determining the Charter School instructional program to ensure the District is incentivizing the offering of numerous educational choices throughout the District;
      4. The charter school has realistic enrollment projections – a minimum of 400 students – that easily provide enough per pupil revenue (PPR) so that the COP lease payments are no more than 20% of charter revenues;
      5. The charter school agrees to provide space for 50% of their capacity to a larger attendance boundary meeting the District’s need to provide classroom space for Douglas County student growth.** Please reference associated Long Range Planning Committee policy, “Charter School Enrollment Preferences”.

Regulation DFC-R provides detailed information regarding this policy and is under revision to correspond to this updated policy.

*The amortization of any COP obligations shall match the long term, expected life of this capital need.

**The intent is that the charter attendance boundary encompasses two to three elementary and middle school boundaries to provide choice for all students attending any of the District neighborhood schools or the new charter school.

 

Adopted: April 12, 2012
Revised:  March 25, 2014