Case Study: How Midview Schools used Debt to Preserve their Cash Liquidity in a Low-Interest Rate Market (CPIM Approved)

Recorded On: 04/26/2021

Registration Closed

Fees: $55 (Non-Member) / $30 (Member)

The track session will focus upon identifying borrowing opportunities for Districts, not only carrying over positive cash balances, but attempting to preserve liquidity. During these volatile economic times, more than ever, Districts are being scrutinized by the rating agencies for their reaction and proactive action plans to address the Covid-19 phenomenon. As such, there has been a tremendous amount of emphasis placed on protocols surrounding the preservation of cash balances and addressing future levy cycles to bolster cash reserves.

Districts with significant carryover balances too often address permanent improvement and capital needs through direct cash purchases, with a reliance upon philosophies that issuing debt or financing such needs is considered squandering money on interest costs.

This concept currently flies in the face of what rating agencies are now emphasizing as the new normal, cash is king. The Coronavirus phenomenon will have a ripple effect on every public entity, whether it be a degradation of taxable values or a rise in delinquencies on real estate taxes.

Rob Showalter

Treasurer, Fairview Park City SD

Rob serves as Treasurer of the Fairview Park City Schools, a position he's held since 2021. Prior to that, he has served as Treasurer for Midview Local Schools, Assistant Treasurer for Strongsville City Schools, and Internal Auditor for Cleveland Schools. He is an active member of OASBO, currently serving as Past President for the Northeast Chapter and Trustee on the OASBO Foundation Board.

Michael Prcela

Senior Vice President - Public Finance, Sudsina & Associates

Mr. Prcela has provided expertise to school systems, municipalities, not for profits, and higher education issuers for over 20 years in Northeast Ohio. Michael has successfully completed over $2 billion of transactions in his career. As lead investment banker on hundreds of transactions, Mr. Prcela has developed unique insight into market driven structures and concepts. Michael served as lead banker on Ohio’s largest qualified school construction bond issue in 2010, and the largest Ohio school district bond issue so far in 2016. Mr. Prcela has passed the Series 50 Municipal Advisor Representative Examination.

Prior to joining Sudsina & Associates, Prcela was a senior vice president of investment banking with Piper Jaffray & Company from 2012 to 2016 and previously served as Vice President at Fifth Third Securities for 12 years. Mr. Prcela is an honors graduate from Miami University of Ohio.