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9. CERTIFICATES OF PARTICIPATION

The District entered into a financing arrangement on April 1, 1992, which was characterized as a lease-purchase agreement, with the Florida School Boards Association and supplemental arrangements dated December 16, 2009, July 1, 2013, June 30, 2014, December 1, 2014, March

1, 2015, January 1, 2016, November 1, 2018, April 1, 2020, June 29, 2020, August 5, 2020 and June 25, 2021 with the Pasco County School Board Leasing Corporation (Leasing Corporation), whereby the District secured financing of various educational facilities in the total amounts of

$11,000,000, $45,385,000, $72,246,316, $13,655,000, $44,145,000, $25,995,000, $68,200,000,

$30,605,000, $71,465,000, $56,165,000, $19,385,000, and $67,410,000, respectively.

The financing was accomplished through the issuance of Certificates of Participation, as listed below, to be repaid from the proceeds of rents paid by the District. On March 1, 2004, the financing agreements with the Florida School Boards Association were assigned to the Leasing Corporation.

Certificates of Participation payable at June 30, 2021, are as follows:

Note: (1) On July 2, 2013, the School Board caused the issuance of the Certificates of Participation, Series 2013A in the aggregate principal amount of $45,385,000, which was used to refund portions of the Certificates of Participation, Series 2004.

(2) On June 30, 2014, the School Board issued Certificates of Participation, Series 2014B-1 & 2014B-2 in the total principal amount of $75,656,458, which was used to refund Certificates of Participation, Series 2008A and to terminate the swap agreement. Series 2014 B-2, the taxable portion of the bond issue in the amount of $3,410,142, was paid off in the 2015-16 year. Certificates of Participation, Series 2008A refunded Certificates of Participation, Series 1996.

(3) On March 31, 2015, the School Board caused the issuance of the Certificates of Participation, Series 2015A in the aggregate principal amount of $44,145,000, which were used to refund portions of the Certificates of Participation, Series 2007A.

(4) On April 1, 2020, the School Board entered into an arrangement to refund the District’s Certificates of Participation, Series 2005B. This refunding was accomplished through the issuance of $30,605,000 of Certificates of Participation, Series 2020A.

(5) On August 5, 2020, the School Board issued the Certificates of Participation, Series 2020B in the amount of $71,465,000 with a true interest rate of 4.71% in order to refund the Series 2008C with an average coupon interest rate of 4.38%. The District made a principal payment of $71,465,000 in connection with the refunding transaction and is recorded in the fund level financial transaction statements as a payment to the escrow agent. As a result of the refunding, the District recognized an economic loss (the difference between the net present value of the debt service payments on the old and new debt) of 2,104,476, or -2.94% of the principal amount being refunded, and the District’s total debt service increased by $2,109,187. The refunding meets the requirements of an in-substance defeasance and the liability for the refunded certificates was removed from the District’s financial statements in the current year.

(6) On June 29, 2020, the School Board caused the issuance of the Certificates of Participation 2020D in the aggregate principal amount of $19,385,000, which were used to refund portions of the Certificates of Participation, Series 2014A.

(7) On June 25, 2021, the School Board caused the issuance of the Certificates of Participation 2021A in the aggregate principal amount of $67,410,000, which were used to refund portions of the Certificates of Participation, Series 2020B and to terminate the swap with Bank of America.

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As a condition of the financing arrangement, the District has given a ground lease on District property to the Leasing Corporation with a rental fee of $1 per year. The properties covered by the ground leases are, together with the improvements constructed thereon from the financing proceeds, leased back to the District. If the District fails to renew the leases and to provide for the rent payment through to term, the District may be required to surrender the sites included under the various Ground Lease Agreements for the benefit of the securers of the Certificates for a period of time as specified by the arrangements. The Certificates of Participation Series 2014B-1 contains a provision by which the purchaser can, upon the occurrence and continuation of an event of default, impose a default interest rate of the then applicable interest rate plus 2 percent not to exceed the maximum lawful rate.

The District has the following ground leases as of June 30, 2021:

The District properties included in the ground lease agreements are as follows:

Certificates of Participation, Series 1996 Certificates of Participation, Series 2014 QSCB (Con't)

Sand Pine Elementary School San Antonio Elementary School

Chasco Elementary School T.E. Weightman Middle School Wesley Chapel High School, Phases I and II Pinev iew Middle School James M. Marlowe Elementary School Ridgewood High School

J. W. Mitchell High School Dr. Mary Giella Elementary School

Pine View Elementary School Chasco Middle School

Sev en Springs Elementary School

Certificates of Participation, Series 2004 Anclote High School

Paul R. Smith Middle School Gulf High School

Wiregrass Ranch High School Pasco Middle School

Odessa Elementary School Equipment Trinity Elementary School Pasco Elementary School

Certificates of Participation, Series 2005-A and B Moon Lake Elementary School Gulf Highlands Elementary School Pine View Elementary

Trinity Oaks Elementary School Seven Springs Middle School

Dr. John Long Middle School Dear Park Elementary School

Odessa Elementary School Hudson Middle School

James W. Mitchell High School

Certificates of Participation, Series 2007-A and B Centennial Elementary School Sunlake High School Cotee River Elementary School

New River Elementary School Sev en Springs Middle School

Veterans Elementary School Dear Park Elementary School Ridgewood High School Classroom Additions Hudson Middle School

Charles S. Rushe Middle School James W. Mitchell High School

Gulf Trace Elementary School Centennial Elementary School Zephyrhills High School Classroom Additions Cotee River Elementary School

Certificates of Participation, Series 2009 QSCB Certificates of Participation, Series 2016A

Culinary Arts Academy at Land O Lakes High School Cypress Creek High School Renov ations for Richey Elementary School

Certificates of Participation, Series 2018A Certificates of Participation, Series 2014 QSCB Cypress Creek Middle School

Repairs and Replacements of HVAC for Starkey K-8 School (partial funding) the following facilities:

Wesley Chapel High School Certificates of Participation, Series 2020C

Woodland Elementary School Kirkland Ranch Academy of Innov ation

The lease payments for the Series 2013-A, Series 2014-A, 2014-B(1), Series 2015A, Series 2016A, Series 2018A, Series 2020A, Series 2020C, Series 2020D, and Series 2021A Certificates are payable by the District, semiannually, on August 1st and February 1st. Interest payments for the Series 2020B Certificates are payable monthly. Interest payments for the Series 2009-QSCB are payable by the District, quarterly, on September 15th, December 15th, March 15th and June 15th. The lease payments for the Series 2014 QSCB are payable by the District, semiannually, on June 1st and December 1st. The following is a schedule by years of future minimum lease payments under the lease agreements together with the present value of minimum lease payments as of June 30, 2021:

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