[1. Meeting Opening]
[00:00:12]
PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE.
>>I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL.
[3. Consent Agenda]
>> 2.01 IS PUBLIC COMMENT AND AS WE HAVE NONE WE WILL MOVE ON
TO ITEM THREE. >> MADAM PRESIDENT, CAN I REQUEST THAT THE CONSENT AGENDA
BE SPLIT AND VOTED ON SEPARATELY? >> YES. THERE ARE TWO ITEMS, THREE. 01 BOARD MINUTES AND 3.02, PERSONAL REPORTS. WE WILL VOTE ON THESE SEPARATELY.
DO I HAVE A MOTION TO APPROVE 3.01 BOARD MINUTES? >> I MOTION TO APPROVE 3.01
BOARD MINUTES. >> SECOND. >> ALL THOSE IN FAVOR OF
APPROVING 3.01 BOARD MINUTES SAY AYE. ALL OPPOSED, SAY NAY. >> NÉE.
>> THAT IS 6-1. >> I ACTUALLY DID NOT. I WOULD LIKE TO KNOW WHY, IF IT'S POSSIBLE , TO FIGURE OUT WHY SUZANNE WANTED TO SEPARATE THE MINUTES.
>> AS BOARD SECRETARY IT IS MY UNDERSTANDING THAT THE MINUTES GET PRESENTED AND SHARED WITH THE SECRETARY. I MADE SOME REVISIONS AND EDITS SO THOSE ITEMS WOULD BE ADDED TO TONIGHT'S BOARD MEETING AND JUST FOUND OUT THEY'RE NOT ON BOARD DOCS CORRECTLY SO I CHOSE NOT TO ACCEPT THOSE MINUTES AS PRESENTED BECAUSE THOSE ARE NOT THE ONES THEY SHARED.
>> TIFFANY WOULD YOU LIKE TO VOTE? >> NO, PLEASE.
>> MOVING ON , 3.02. >> MOTION TO APPROVE 3.02 PERSONAL REPORTS.
>> SECOND. >> ANY DISCUSSION? ALL THOSE IN FAVOR OF APPROVING 3.02 PERSONAL REPORTS, PLEASE SAY AYE. OPPOSED SAY NAY. MOTION PASSES 7-0.
>> THANK YOU, MADAM PRESIDENT. I WOULD LIKE TO TAKE THIS OPPORTUNITY TO INTRODUCE A COUPLE OF FOLKS WHO WERE JUST NOW APPROVED IN THE PERSONNEL REPORT . KRISTI THOMAS, LONGTIME PRINCIPAL AT GUIST ELEMENTARY IT WILL NOT BE OUR DIRECTOR OF STUDENT SERVICES AND WE ARE LOOKING FORWARD TO HER TAKING THE REINS IN JULY ON JULY 1, SO WELCOME, KRISTI.
AND, TYLER ROBERTS. TYLER HAS BEEN SERVING IN A DEAN ROLE FOR US, SPLIT BETWEEN SES AND HIG H FOR THE LAST COUPLE YEARS AND TO MAKE SURE WE CAN GET SOME ADDITIONAL SUPPORT AT HIJH SHE'S COMING OVER TO BE AN ASSISTANT PRINCIPAL SO CONGRATULATIONS, TYLER. THANK
YOU. >> THANK YOU VERY MUCH FOR BEING HERE WITH US AND
[4. Action Items]
CONGRATULATIONS. MOVING ON TO ACTION ITEMS 4.01 , A SECOND PRELIMINARY DETERMINATION PUBLIC HEARING ON THE ISSUANCE OF GENERAL OBLIGATION BONDS AND RESOLUTIONS PROVING THE SAME INTHE PRESENTATION . THUSLY NONE. >> THANKS FOR COMING BACK TOGETHER AGAIN TONIGHT FOR THE SECOND PUBLIC HEARING ON OUR NGO BOND. WE REVIEWED THE FOUR EVERY YEAR WE ISSUE GO BONDS FOR MAINTENANCE, FUNDING, IMPROVEMENT AND MAINTENANCE OF BUILDINGS, BUYING EQUIPMENT AND ASSIST. THERE'S NOT ENOUGH MONEY IN OUR FUND DEPOSITS TO ADDRESS OTHER NEEDS SO WE ISSUE GO BONDS -- WE HAVE A REVIEW TO DETERMINE THE AMOUNT OF MONEY WE NEED IN THESE BONDS. THIS YEAR IN 2024 WE ARE RECOMMENDING TWO DIFFERENT BOND ISSUES, THE FIRST ONE FOR $35 MILLION. THE PLAN WOULD BE FOR THAT TO CLOSE BY THE END OF NOON. THE SECOND BOND ISSUE WOULD BE LATER IN THE YEAR AFTER OUR ASSESSED VALUATION HAS BEEN CERTIFIED AND THAT TYPICALLY HAPPENS IN EARLY AUGUST SO CLOSING THAT FIRST BOND ISSUE BY THE END OF JUNE ALLOW FACILITIES FOLKS TO GET STARTED ON SOME OF THOSE PROJECTS AT THE SPREADSHEET THAT JEFF JUST PULLED UP, THAT FIRST COLUMN, THOSE ARE THE PROJECTS THAT WOULD BE INCLUDED IN THIS FIRST BOND ISSUE . THOSE BONDS WOULD BE REPAID IN
[00:05:03]
2025 AND 2026, AND THE IDEA WITH THAT IS TO REPAY THEM AS QUICKLY AS POSSIBLE TO MINIMIZE THE INTEREST EXPENSE TO TAXPAYERS. THESE BONDS WE ARE PROPOSING WILL NOT INCREASE ARE TOTALED THAT SERVICE TAX RATE OF .5833. IT WOULD BE THAT ONCE THESE BONDS ARE ISSUED, AS WELL, SO IT WOULD NOT CHANGE. THE ROOM HIP -- REPAYMENT OF THESE BONDS WOULD COME FROM THE DEBT SERVICE FUND. DEBT SERVICE FUNDS CAN BE USED TO RENOVATE FACILITIES, CONSTRUCT BUILDINGS, REPAINT GEO BONDS BUT NOT PAY FOR TEACHERS. IT'S JUST NOT ALLOWED SO THE SECOND BOND ISSUE WOULD BE AGAIN LATER IN THE YEAR AND THOSE PROJECTS ARE IDENTIFIED IN THE SECOND COLUMN THERE ON THE LIST. I WILL SAY IT IS LIKELY THAT SOME OF THOSE PROJECTS WILL CHANGE BETWEEN NOW AND THE TIME WE ISSUE THE BONDS BUT ANY LARGE PROJECTS WOULD COME TO THE BOARD FOR YOUR APPROVAL BEFORE ANYTHING WOULD MOVE FORWARD WITH THOSE. THERE HAVE BEEN NO CHANGES TO THIS PROJECT LIST AND WE HAVE REVIEWED THEM WITH THE BOARD AT THE WORK SESSION ON MARCH 27TH IN THE PUBLIC BOARD MEETING ON APRIL 10TH. WE'RE HAPPY TO GO THROUGH THEM AGAIN IF YOU WOULD LIKE US TO DO THAT IF YOU ARE COMFORTABLE, WE MIGHT JUST MOVE ON TO THEMEETING, SO WHAT WOULD YOU PREFER? >> DOES ANYONE HAVE ANY
QUESTIONS? >> JUST ONE COMMENT. AGAIN MOSTLY FOR THE PUBLIC'S SAKE BUT AS WE HAVE GONE THROUGH THIS NOW SEVERAL TIMES , IT IS REALLY A MULTISTEP PROCESS TO GET THE MONEY FOR THE THINGS WE NEED PAID WE ISSUE THE BONDS, AND IT IS ESSENTIALLY LOOKING FOR YOU TO CORRECT ME IF I'M WRONG HERE. WE RECEIVE THE MONEY AND IT GOES INTO THE
SERVICE FUND PAID >> ACTUALLY WE WILL ISSUE THE BONDS AND THEY WILL BE TRACKED IN A SEPARATE FUND SO EACH BOND HAS ITS OWN FUNDS SO THE MONEY WILL GO INTO THAT FUND. ALL THE EXPENSES WILL BE CHARGED THERE. IT IS EASY TO SEE WHAT HAS COME IN AND WHAT IS BEING SPENT AND
IT IS ALL TRACKED AS PART OF THAT PAID >> THAT AS WE GO TO USE IT, WE HAVE KIND OF PRELIMINARILY A LIST OF PROJECTS WE WANT TO COMPLETE. WE'VE BEEN THROUGH MOST OF THOSE THEN AS WE ACTUALLY DO THE PROJECTS THEY GET PRESENTED AGAIN EITHER
THROUGH COMMITTEE OR TO THE BOARD? >> IF THEY ARE OVER A CERTAIN THRESHOLD, YES. OBVIOUSLY WE ARE WORKING ON REVISING A POLICY THAT WOULD RAISE THE THRESHOLD FROM 50,000 TO 150,000 BUT YES, THOSE PROJECTS HAVE BEEN DISCUSSED AT A FACILITIES COMMITTEE MEETING, FINANCE COMMITTEE MEETING. IF THEY HAVE TO BE BID, THE COME TO THE BOARD TO ASK FOR YOUR PERMISSION TO BED. WE COME THROUGH THE BID PROCESS. THERE
IS LOTS OF OPPORTUNITY THERE. >> THAT'S FOR THE BENEFIT OF THE PUBLIC, THIS JUST GIVES US THE ABILITY TO HAVE THE MONEY SET ASIDE THEN AS WE GET TO THE PROJECTS, WE CAN USE IT AS NEEDED BUT AS WE DO SO, WE GO THROUGH EACH ONE OF THOSE EACH TIME AND THEY COME TO A FACILITIES COMMITTEE, THE FINANCE COMMITTEE OR THE WHOLE BOARD. SO, MANY WAYS TO DOUBLE
CHECK THESE THINGS AND I JUST APPRECIATE THAT. >> THAT'S RIGHT , AND REALLY WHAT WE ARE GOING TO BE ASKING YOU TO DO TONIGHT IS APPROVE A RESOLUTION SO WE CAN MOVE FORWARD WITH THE NEXT STEP OF THE BONDS BUT WE DO WANT TO REITERATE EVEN WITH ISSUING THESE BONDS WE CAN ACCOMMODATE BOTH OF THESE ISSUES WITHOUT RAISING THE TOTAL DEBT SERVICE TAX RATE THAT IS POSSIBLE BECAUSE OUR ASSESSED VALUATION IS GROWING AND WE HAVE BONDS PAYING OFF SO AGAIN THAT TOTAL DEBT SERVICE TAX RATE BETWEEN DEBT SERVICE AND THAT SERVICE EXAM -- EXEMPT FUNDS WILL INCREASE -- STAY THE SAME SO NO INCREASE THERE. WE HAVE SOMEONE TO TALK ABOUT OUR BOND CAPACITY. JEFF, COULD YOU PULL UP THAT OTHER DOCUMENT ? IT'S
JUST A POWERPOINT ATTACHED TO THAT AGENDA ITEM. THAT ONE. >> THANK YOU. GOOD TO SEE EVERYONE AGAIN. I THINK CECILY PROBABLY HAD ALL THE POINTS IN MY PRESENTATION ALREADY BUT WE WILL WALK THROUGH THIS AGAIN, SO AS WE SCROLL DOWN HERE TO THE FIRST PAGE, THIS IS REALLY THE PICTURE THAT CLEARLY SHOWS HOW YOU CAN DO THESE PROJECTS AND REPAY THEM IN A WAY WITHOUT INCREASING THAT DEBT SERVICE TAX RATE. AS YOU GUYS KNOW , YOU HAVE BEEN DOING THESE ANNUAL GEOS FOR A DECADE PLUS, SO THIS IS JUST A CONTINUATION OF THAT. WAS PART OF THAT PLANNING WE NOT ONLY SET YOU UP FOR THIS PROJECT BUT FUTURE PROJECTS, AS WELL SO THIS IS JUST IN A LONG OCCURRING ANNUAL PROJECT AND MAKING SURE WE KEEP THE DEBT SERVICE TAX RATE WHERE IT IS SO YOU CAN SEE IN 2020 FOR THE CURRENT BUDGET YEAR, ALMOST $70 MILLION IN DEBT SERVICE PAYMENTS IS GOING TO DROP TO ABOUT 30 MILLION IN 2025 SO WE CAN FILL IN THAT
[00:10:01]
WHITE SPACE WITH THESE PROJECTS AND HAVE THE PAYOFF IN 2026 AS WELL AND WE CAN LOOK AT THAT ON THE NEXT PAGE IF WE SCROLL DOWN ONE MORE. HERE, THE BLUE DENOTES WHAT THE PAYMENT WOULD LOOK LIKE FROM THE GEO BOND PROJECTS. MOST OF HIS PAID OFF IN 2025 WITH SOME OF IT BEING PAID OFF IN 2026. YOU CAN PAY AN A PORTION IN JUNE TO GET STARTED. WE WILL SAVE ANOTHER PORTION TO COME BACK SOMETIME IN AUGUST WHEN WE GET TO THE ASSESSED VALUE. THE REASON WE'RE DOING THIS IS WE COULD NOT PINPOINT YOUR TEXT RIGHT UNTIL YOU GET YOUR ASSESSED VALUE SO BY HOLDING SOME OF THAT BACK, ONCE WE GET THE ASSESSED VALUE IT IS JUST A FORMULA SO WE CAN MAKE SURE WE HIT THE .58 33 EXACTLY, SO THAT IS WHY THIS IS BEEN BROKEN UP INTO TWO PROJECTS. MORE THAN WHAT WE ARE PROJECTING, THE BLUE BAR GRAPH IN 2025 WILL GO UP SO WE CAN STILL HIT THE .5833 IF IT DOESN'T GRAPH QUITE AS MUCH WE CAN WRING THAT DOWN AND COMPLETELY REACT TO WHAT YOUR ASSESSED VALUE DOES. WE THINK IT'S GOING TO GO AGAIN AS IT HAS THE LAST SEVERAL YEARS BUT THIS ALLOWS US TO TAKE THE GUESSWORK OUT OF IT SO WE CAN MAKE SURE WE HAD THE DESIRED TAX RATE. IF WE GO TO THE NEXT PAGE , AND I WALKED THROUGH THIS A COUPLE WEEKS AGO. I WILL DO IT AGAIN JUST TO BE ON THE RECORD, THIS IS WHAT YOU WILL SEE IN YOUR RESOLUTION TONIGHT PAID ALL THE MAJOR POINTS AND AGAIN HAPPY TO ANSWER QUESTIONS AS WE WALK THROUGH THIS. THE BOND IS LISTED AT 49 MILLION. THAT IS A MAXIMUM, YOU DON'T HAVE TO BORROW ALL OF IT. YOU JUST CAN'T BORROW MORE THAN 49 MILLION SO IF YOU COME UP WITH THIS PROJECT LIST AND IT COMES UP TO BE BELOW 49 MILLION, YOU CAN BORROW THAT NUMBER. THE UP FRONT PROFESSIONAL FEES AGAIN CONSERVATIVELY , WE'VE LISTED HALF 1 MILLION. THAT WOULD BE 48,500,000 AS ACTUAL PROJECT COSTS FOR THE HARD AND SOFT PROJECT COSTS, THE MONEY GOING INTO THE PROJECTS . MAXIMUM TERM OF THE BONDS -- WE'VE ALREADY SHOWN THIS IS LIKELY GOING TO BE PAID OFF IN TWO YEARS BUT FOR FLEXIBILITY, SHOULD SOMETHING WEIRD HAPPENED WITH THE ASSESSED VALUE OR PLANS CHANGE, WE HAVE THE AUTHORITY TO PAY THIS BACK OVER THE COURSE OF FIVE YEARS BUT NO LONGER THAN FIVE YEARS.ESTIMATED MAXIMUM AVERAGE INTEREST RATE IS 6% . IF YOU WERE TO SELL THESE TODAY , IT WOULD BE SOMEWHERE BETWEEN 3.5 AND 4%. WE ARE NOT SELLING THESE TODAY SO RATES COULD CHANGE OVER THE NEXT COUPLE MONTHS. WE DON'T EXPECT ANYTHING MATERIAL TO HAPPEN BUT THESE ARE WORST-CASE FINANCIAL PARAMETERS WHICH IS WHY WE LISTED THE NUMBER HIGHER. TOTAL INTEREST COSTS LISTED AT $10,134,733 MAXIMUM ANNUAL PRINCIPAL PLUS THE INTEREST COST OF 52,000,007 24 $183 MAXIMUM AGGREGATE PRINCIPAL PLUS INTEREST. THIS IS THE MOST THAT CAN BE PAID BACK OVER THE BONDS INCLUDING INTEREST $59,134,733 AND CURRENT DEBT SERVICE LEVY, THE 2023 PICKUP -- PAID 20 33 FUND LEVY THIS YEAR , THE ESTIMATED DEBT SERVICE FUND LEVY FOR 2025 IS AT 70,284,000 $39 AND AGAIN THAT NUMBER IS GOING TO CHANGE BASED ON WHAT THAT ASSESSED VALUE ENDS UP BEING THIS FALL. ESTIMATED NET INCREASE ON THE TAX RATE FOR YOUR DEBT SERVICE TAX RATE, WHAT TAXPAYERS ARE GOING TO SEE , THERE'S NOT GOING TO BE AN INCREASE. WE ARE GOING TO PINPOINT THIS EXACTLY TO WHAT IT IS IN THIS CURRENT BUDGET YEAR. PER STATUTE THE PERCENT OF MAXIMUM ANNUAL DEBT SERVICE DIVIDED BY ASSESSED VALUES .7039% AND THE PERCENT OF OUTSTANDING AND OVERLAPPING DEBT DIVIDED BY ASSESSED VALUE IS 5.81%. I KNOW THAT WAS 1 MILLION NUMBERS. HAPPY TO ANSWER ANY QUESTIONS.
>> IF THERE ARE NO OTHER QUESTIONS, I ASKED THAT WE OPEN UP A SECOND PUBLIC HEARING. WE HAVE TO, BY STATE STATUTE, CONDUCT TWO PUBLIC HEARINGS ON THIS MATTER BEFORE WE APPROVE
THE RESOLUTION. >> WE WILL OPEN THE PUBLIC HEARING. ANY MEMBER OF THE PUBLIC WISHING TO SPEAK ABOUT THIS FINANCING OR THE ASSOCIATED PROJECTS MAY COME FORWARD TO ADDRESS THE BOARD. ANYONE? SEEING THEM, I WILL NOW CLOSE THE PUBLIC HEARING AND ANY ADDITIONAL COMMENTS OR QUESTIONS FROM THE BOARD? DO I HAVE A MOTION TO APPROVE THIS
RESOLUTION AS PRESENTED? >> I MOVED TO APPROVE THE RESOLUTION AS PRESENTED.
>> SECOND. >> ANY ADDITIONAL COMMENTS? I'M NOT GOING TO CLOSE
[00:15:06]
DISCUSSION AND CALL THE QUESTION. ALL THOSE IN FAVOR OF APPROVING ITEM 4.01 ASPRESENTED SAY AYE. ANY OPPOSED SENE. PASSES 7-0. >> THANK YOU VERY MUCH. I DID WANT TO MENTION THE NEXT BOARD MEETING MAY 8TH THERE WILL BE ONE MORE PUBLIC HEARING THAT IS PART OF THE BOND PROCESS AND AT THAT MEETING WE WILL ASK THE BOARD TO ADOPT A FINAL BOND RESOLUTION AND TO APPROVE THE ADDITIONAL APPROPRIATION OF THOSE FUNDS AND BASICALLY THAT WILL ALLOW US ONCE THE PROCEEDS ARE RECEIVED, TO USE THOSE FUNDS.
>> THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.