INTEREST RATE RECALIBRATION WAIVER INSTRUCTIONS
Statute: NYSEL 3602 6(e)(5)(c)

Districts seeking a waiver should submit a cover letter (pdf format) indicating the bonds being aided via retroactive assumed amortization and/or the projects being aided via prospective assumed amortization for which a waiver is being sought. The letter should be signed by the district superintendent or school business official and indicate the best contact person at the district for any required inquiries regarding the waiver.

In addition to the letter, districts should fill out a retro and/or prospective waiver application form contained in the Excel spreadsheet file “Waiver Application Forms.” Please identify prospective projects with the project number from the published prospective spreadsheet. The bond series’ funding each prospective project should be provided.  Retro bonds should be identified using the bond amount and issue date from the published retro bond spreadsheet.  For each  prospective project and retro bond please cite the legal basis for seeking the waiver and a list of the accompanying materials supporting the waiver request.

Appropriate supporting materials:

1. Copies of refunding reports or pages of official statements indicating bonds which have been refunded and call provisions relating to refunding bonds for bonds which cannot be refunded.  In many instances the original bonds on the retro bond spreadsheet and the bonds associated with projects on the prospective project spreadsheet will have been refunded one or more times since the original issuance.  To clearly indicate that currently outstanding refunding bonds are related to the original retro bonds or prospective project, waiver submissions should include:

   1. A copy of the cover page of the original retro bond issuance or the first issuance of bonds official statement associated with a prospective project.  If the cover page does not include a schedule of maturities, a copy of a page from the interior of the official statement with a listing of maturities should be included.  Example_of_Official_Statement_Cover_with_Schedule_of_Maturities.pdf ( 728 KB)
   2. A copy of the call provisions (optional redemption provisions) of the original issuance. Example_of_Optional_Redemption_or_Call_Provisions.pdf ( 905 KB)
   3. A copy of the cover page of each refunding bond issuance associated with a retro bond issuance or a prospective project.  If the cover page does not include a schedule of maturities, a copy of a page from the interior of the official statement with a listing of maturities should be included. Example_of_Official_Statement_Cover_with_Schedule_of_Maturities.pdf ( 728 KB)
   4. For each refunding bond issuance a copy of the section including the plan of refunding which indicates the bonds that were to be refunded by the issue.  In the event the refunded bond maturities are not included in the official statement, a copy of the final numbers from the refunding including a listing of the refunded bonds may be substituted. Example_of_Refunding_Plan_with_Schedule_of_Refunded_Bonds.pdf ( 601 KB)
   5. For each refunding bond issuance a copy of the call provisions (optional redemption provisions) of the original issuance. Example_of_Optional_Redemption_or_Call_Provisions.pdf ( 905 KB)
2. An estimated Refunding Financial Plan, prepared consistent with the requirements of the Office of the State Comptroller (see http://www.osc.state.ny.us/pension/debt9010.htm) for approval of refundings pursuant to sections 90.00 and 90.10 demonstrating that a refunding of a given series of bonds would not meet the thresholds in local finance law. Estimates of market rates and costs of issuance should be consistent with current market standards and OSC guidelines for approval. Any submission of a Refunding Financial Plan should include a written description of the major assumptions.  For example, “The scale used to create this Refunding Financial plan was based on AAA municipal market daily rates from 2/12/13 plus a spread of 30 basis points based on how the districts bonds are anticipated to price”  or “The underwriters discount is based on the levels paid in the districts 2012 refinancing”

Districts that have submitted waiver requests prior to the changes enacted in the 2013-14 budget may not need to resubmit new waiver applications.  The State Aid Office will notify districts of the status of waivers received prior to November 15th, 2013 by February 1, 2014.  All waiver applications must be received by May 1, 2014 for the 2014-15 school year.

Incomplete waiver submissions will be returned and will result in delayed processing.

The cover letter, Waiver Application Form spreadsheet file and all supporting materials should be submitted electronically in one e-mail to the following email address: OMSSAMS@MAIL.NYSED.GOV

The subject line of the e-mail MUST contain the following in the order listed:

<District Name> <6-digit BEDS code> <Interest rate waiver request>
Example: Bluetown CSD 123456 Interest rate waiver request

Additional information may be requested as necessary in the waiver process.

Questions should be emailed to OMSSAMS@MAIL.NYSED.GOV