Agenda - Council - 07/12/2022 - Laserfiche WebLink

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PROJECT—GOVERNANCE;ADMINISTRATION;FACULTY AND FACULTY RETENTION"in this Official Statement. Self-Management by the Charter School Other than the Charter School's contract with its outside finance manager (See "APPENDIX A— THE COMPANY, THE CHARTER SCHOOL, AND THE SERIES 2022 PROJECT — THE CHARTER SCHOOL'S FINANCE MANAGER"in this Official Statement),the Charter School does not contract with outside professionals,such as a professional charter school management company,for the management and operation of the Charter School. As a general rule, charter school management companies assist charter schools in their crucial management functions including: recruiting and evaluating staff; human resources and payroll; budgeting and fiscal management and reporting; and other administrative functions. In the absence of a professional management company, such duties are done by Charter School administrators and staff. Factors Associated with Education There are a number of factors affecting schools in general,including the Charter School,that could have an adverse effect on the Charter School's financial position and its ability to make the payments required under the Leases. These factors include,but are not limited to (i) the ability to attract a sufficient number of students; (ii) future legislation and regulations affecting charter schools and the educational industry in general; (iii)increasing costs of compliance with federal or State regulatory laws or regulations, including, without limitation, laws or regulations concerning environmental quality, work safety and accommodating persons with disabilities; (iv) increased costs of attracting and retaining or a decreased availability of a sufficient number of teachers, including as related to any unionization of the Charter School's work force with consequent impact on wage scales and operating costs of the Charter School; (v) cost and availability of insurance for charter schools in the State; and (vi) changes in existing statutes pertaining to the powers of the Charter School and legislation or regulations which may affect program funding. The Charter School cannot assess or predict the ultimate effect of these factors on its operations or the financial results of operations. Line of Credit for Operating Capital [[TO BE UPDATED: Borrower to confirm LOC status]] [As previously discussed under the heading "SECURITY FOR THE SERIES 2022 BONDS — Intercreditor Agreement," the Charter School has agreed to a Line of Credit with Depository Bank, in an amount not to exceed $[ ] for cashflow purposes due to the State holdbacks of certain education payments. The Charter School currently does not have an outstanding balance with respect to the Line of Credit. The Intercreditor Agreement establishes the priority of security interests granted by the Charter School in favor of Depository Bank and the Trustee in the event of a default under the Indenture or the Line of Credit. No assurance can be given that, in the event that the Depository Bank will continue to renew the Line of Credit in the future on similar terms to what are currently in place.No assurance can be given that, in the event that the Depository Bank does not offer to renew the Line of Credit on terms that are acceptable to the Charter School in the future,the Charter School will be able to obtain other operating financing on terms similar to those of the Line of Credit to meet its cash-flow needs. Any future working capital financing incurred by the Charter School will have to comply with the restrictions set forth in the Pledge Agreement. See"SECURITY FOR THE SERIES 2022 BONDS," "APPENDIX A — THE COMPANY, THE CHARTER SCHOOL AND THE SERIES 2022 PROJECT[—BUDGET; ACCOUNTING; DEBT; FUNDRAISING—Line of Credit]," and"APPENDIX F — DEFINITIONS OF CERTAIN TERMS AND SUMMARIES OF DOCUMENTS — THE LOAN AGREEMENT,"and"—THE PLEDGE AGREEMENT"in this Official Statement.] 29