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Bond Accountability Commission 2 Recommendations Page 2

The state of the overall credit market

The financial condition and credit impact of CMSD’s property tax base, including declining collection rates and property valuations, and of CMSD’s forecast of significant operational deficits

Identification of credible debt insurance options and analysis of their impact on the CMSD credit rating and on interest rates on CMSD debt

Cash-flow requirements based on the construction Master Plan and associated cost estimates approved by CMSD and the Ohio School Facilities Commission (“OSFC”)* *Analysis of construction costs beyond consideration of cash-flow requirements identified by CMSD and OSFC is not required

A quantitative comparison of and opinion on future financing options that are permitted under federal law, including recently authorized tax-credit bonds and stimulus-legislation grants, as well as under Ohio law and any regulations of the OSFC

In our discussion of certain issues, we cite Best Practices of the Government Finance Officers Association (GFOA”). GFOA has issued a number of its Best Practices (formerly called “Recommended Practices”) over the past several years to set forth accepted sound practices for the benefit of GFOA’s governmental members. 1                                                             1

GFOA’s website at http://www.gfoa.org contains the following explanation of GFOA’s Best Practices, as well as certain “Advisories”— GFOA Best Practices and Advisories In 1993, the Government Finance Officers Association (GFOA) Executive Board directed the association’s staff to work with the GFOA standing committees to develop a body of recommended practices in the functional areas of public finance to give GFOA members and other state and local governments more guidance on sound financial management practices. This effort represented a fundamental new direction for GFOA and one that is still evolving. In 2009, the GFOA’s Executive Board determined that GFOA’s Recommended Practices should be reclassified as Best Practices and Advisories. A GFOA Best Practice identifies specific policies and procedures as contributing to improved government management. It aims to promote and facilitate positive change rather than merely to codify current -2-

BAC2 Recomendations Final 04062010  
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