Certificates of Participation
Certificates of Participation are a financing tool that allows a school district to utilize a lease structure and borrow money for capital projects. A school district will utilize the Certificate of Participation (COPS) when there is a specific revenue stream that can be tied to the capital project. Although COPS are different than a bond issue, the mechanics of a COPs issue are very similar to bonds. Payments for a COPs issue can be made from any available revenue stream and do not require a vote of residents to be issued. A COPs issue is subject to annual appropriation by the Board of Education and therefore typically carries a credit rating one notch below the District’s issuer rating.