There are many ways to increase the value of your facility, and the professionals at CTS Group know how to make it happen.
Bond Election Support
When facilities are inadequate, overcrowded or uncomfortable, the learning or working environment is not productive. In many cases, it is also just unhealthy. Unfortunately, many school districts and local governments do not have successful bond elections because, typically, the majority of the voters have no idea of the situations that exist.
This is where CTS Group can help. It’s part of our responsibility to help clients mount successful bond issue campaigns. We work with our clients to prepare a well-defined bond issue, one that is clear to the voters, whether it be local government or school. Our expertise in this issue can also be used to develop public awareness campaigns to inform the community about why improvements are necessary. This kind of support can be the difference between a successful and an unsuccessful election.
Another way we help clients achieve their goals is identifying potential grant and utility rebate programs that exist for customer’s projects, and working to secure the maximum amount of funding available for the project. Our professionals are well-versed in navigating the correct paths that can lead to additional funding. After all, there are a myriad of programs, regulations, and reporting requirements out there. Stick with the people who have proven themselves to be a valuable asset in securing more program dollars – CTS Group.
To help our clients realize their goal of an improved facility and better environment, we provide them with innovative financial planning as part of our program. The CTS financial experts review budgets and work with clients to identify dollars that can be redirected to assist in the financing of projects. We bring knowledgeable financial partners to the table to develop and implement the actual financing package for the project.
Qualified Zone Academy Bonds (QZABs)
QZABs were established by the Federal Government under Section 1397E of the Internal Revenue Code and further revised under Section 54A and 54E for the purpose of providing “qualified academies” with an interest-free form of financing. Under the program, States receive Federal funds based on their respective populations of individuals living below the poverty line, at which point funds are then allocated through each State’s education agency.
To view the current Federal Government situation concerning QZABs, go to:
QZAB Eligibility requirements:
- Certain public schools located in an “Empowerment Zone” or an “Enterprise Community” or at least 35% of a school’s students are eligible for free or reduced cost lunches in the buildings being renovated.
- Schools must have a private business partner to donate at least 10% of bond proceeds as cash, scholarship, in-kind contributions, etc. over the life of the financing, which is approximately 15 years.
- Eligible schools must have an education plan that is approved by its School District, and its students must be subject to the same standards and assessments as other students in the district.
QZABs Permitted Use of Funds:
- Repair or rehabilitation of buildings (reimbursement for existing projects not permitted). New construction does not qualify under the program.
QZABs Points of Consideration:
- QZABs must comply with both Federal Tax Law and State Law.
- The District must pass a general obligation bond issue and receive authorization from the State’s education agency to complete a QZAB financing.
Districts applying may receive a Federal Income Tax Credit (rate set by the U.S. Treasury) in lieu of an interest payment
Principal must be repaid, but interest expense is zero percent (0%) or a very low interest rate to the District after the interest rebate from the Federal Government.