[A. CALL TO ORDER]
[00:00:05]
THE TIME IS 5:46.[B. FIRST ORDER OF BUSINESS]
DR. STINSON, WILL YOU CONFIRM THAT THIS MEETING WAS DULY CALLED, AND A NOTICE OF THE MEETING WAS POSTED IN ACCORDANCE WITH TEXAS OPEN MEETINGS ACT? YES, MR. DAVIS, WE DID POST AND ADVERTISE THIS MEETING IN ACCORDANCE WITH THE LAW.[C. CLOSED SESSION]
PROPERTY, .071 CONSULTATION WITH THE BOARD'S ATTORNEY, AND .076 SECURITY.[D. RECONVENE INTO OPEN SESSION]
WE'LL NOW RECONVENE INTO OPEN SESSION.NO ONE HAS SIGNED UP TO SPEAK AT OUR MEETING TONIGHT, SO WE'LL GO TO SOME SEPARATE ACTION ITEMS.
[F. SEPARATE ACTION ITEMS]
ITEM F, CONSIDER SCHOOL RESOURCE OFFICER SHARED SERVICES AGREEMENT AMENDMENT FOR THE CITY OF RICHLAND HILLS.DR. STINSON WILL GIVE US A LITTLE BACKGROUND ON THAT.
YES. AS YOU KNOW, IN THE LAST LEGISLATIVE SESSION, SORRY, IN THE LAST LEGISLATIVE SESSION, UM, THE BILL WAS PASSED THAT IT IS RECOMMENDED TO HAVE ARMED OFFICERS ON EVERY CAMPUS.
AND SO, AS WE'VE BEEN WORKING THROUGH THAT WITH EACH OF OUR CITIES.
AND SO, KATIE, I THINK I'LL TURN THAT OVER TO YOU OR DR.
STINSON, BOARD PRESIDENT DAVIS, BOARD MEMBERS.
SO, THE CITY OF RICHLAND HILLS, UM, CAME WITH AN SRO FOR CHENEY HILLS LAST YEAR.
AND THEN THIS YEAR, THEY WERE EXTREMELY PROACTIVE, AND THEY HAVE AN SRO AVAILABLE FOR BINGHAM.
SO, THEY'VE BEEN, YOU KNOW, EXTREMELY ACTIVE IN TRYING TO COVER OUR CAMPUSES.
I JUST WANT TO SAY THAT I ECHO EXACTLY WHAT DR.
SHUL JUST SAID. THEY'VE BEEN PHENOMENAL TO WORK WITH, AND, UH, REALLY HAVE, UM, TAKEN IT AS VERY INTENTIONAL TO HELP US FIND AN OFFICER TO GET PLACED AT BINION.
SO, I WANT TO THANK THEM FOR ALL OF THEIR HARD WORK.
AND WE GAVE BOOKS AWAY AT CHENEY HILLS THIS YEAR.
AND AT ONE POINT, I LEFT THE ROOM AND TOOK A COUPLE OF RETIRED EDUCATORS TO SEE, YOU KNOW, THE INSIDE OF CHENEY HILLS AND THE SRO.
ALL THE SRO OFFICER WAS WORKING WITH THIS ONE CHILD WHO WAS HAVING A BREAKDOWN THAT DAY.
AND IT WAS SO INCREDIBLE TO SEE THAT OFFICER.
AND SHE WAS REALLY NURTURING THAT CHILD AND WORKING WITH THAT CHILD AND DIRECTING THAT CHILD.
IT WAS REALLY A SPECIAL MOMENT.
SO, NOT ONLY ARE THEY PROTECTING OUR KIDS, BUT THEY'RE ALSO HELPING OUR KIDS GROW, TOO.
YOU BET. THAT'S A GOOD RELATIONSHIP TO HAVE.
YES. JUST TO KIND OF ECHO THAT, DR.
STINSON AND DR. SHERWIN, I HAD A CONVERSATION ALONG THAT LINES WHERE OFFICERS THERE WERE, WE WERE TALKING TO ONE OF THE CHIEF POLICE, AND THEY WERE THINKING THAT OFFICERS WERE GOING TO BE A LITTLE APPREHENSIVE.
SO, WE'VE GOT GREAT PEOPLE LINED UP TO WORK WITH OUR KIDS AND OUR CAMPUSES.
ANY OTHER QUESTIONS? THIS TIME WE'LL ENTERTAIN A MOTION FOR THE ACTION ITEM.
IS THERE A MOTION? MR. PRESIDENT, I MOVE THAT THE BOARD APPROVE THE AMENDMENT TO THE SCHOOL RESOURCE OFFICER SRO SHARED SERVICES AGREEMENT FOR AN SRO IN BOTH CHENEY HILLS ELEMENTARY AS PRESENTED.
IS THERE A SECOND? I'LL SECOND.
SECOND. MR. DREES, ANY DISCUSSION? VERY QUICKLY, MR. TOLBERT TO THE STAFF.
I KNOW THAT THIS DOESN'T HAPPEN UNLESS THE CITY LIKES OUR STAFF.
AND THEN YOU GUYS ARE ABLE TO WORK WITH THEIR STAFF.
SO, WITHOUT THAT, THIS DOESN'T HAPPEN.
[00:05:01]
SO, THANK YOU ALL. WHAT I LIKE IS THAT WE'RE PARTNERS IN IT.YOU KNOW, WE'RE PAYING A BIG LION'S SHARE.
THEY ARE TWO. BUT THE BOTTOM LINE IS THEY'RE THERE TO HELP US PROTECT THOSE KIDS.
SO, WE'LL GET THOSE TAKEN CARE OF IN THE WEEKS AND MONTHS AHEAD, I'M SURE.
OKAY, THERE'S A MOTION BEFORE US.
ANY MORE DISCUSSION? ALL IN FAVOR OF THE MOTION SIGNIFY BY RAISED HAND.
MOTION DOES CARRY UNANIMOUSLY.
[G. BUDGET WORKSHOP]
DOCTOR STINSON.OKAY. THIS, YOU KNOW, WE SAY THE BEGINNING.
AND TYPICALLY, WE BRING YOU THIS INFORMATION A LITTLE BIT LATER, AND, AND WE WHAT WE HAVE COME TO KNOW AS OUR ONE-TIME PROJECTS AND PROJECTS THAT WE NEED TO GET STARTED ON PRIOR TO THE NEXT SCHOOL YEAR AND THAT WE NEED FOR THE 2425 SCHOOL YEAR.
AND SO WE'RE STARTING THAT PROCESS A LITTLE BIT EARLY THIS YEAR SO THAT WE CAN HOPEFULLY WITH YOUR APPROVAL, MOVE FORWARD WITH SOME OF THESE PROJECTS SO THAT THEY ARE COMPLETED PRIOR TO NEXT SCHOOL YEAR.
AND SO TONIGHT, KATIE BOWMAN IS GOING TO LEAD US THROUGH THE BUDGET UPDATE YOUR FIRST OFFICIAL BUDGET UPDATE FOR THIS SEMESTER, AND WE APPRECIATE YOU BEING HERE FOR THAT TONIGHT.
THANK YOU. BEFORE WE GET STARTED, EACH OF YOU HAS GOT THIS BEAUTIFUL BOOK IN FRONT OF YOU.
WE'LL TELL YOU A LITTLE BIT MORE ABOUT IT AT THE JANUARY MEETING, DR.
GLENN AND HER DEPARTMENT, AND WE'VE BEEN TALKING FOR A WHILE ABOUT SOME OF THE DIFFERENT AWARDS.
I KNOW SHE'S RECEIVED THE TASB AWARD OF MERIT FOR HER DEPARTMENT.
THIS WAS ONE OF THE NEXT THINGS THAT WAS ON HER TASK LIST TO ACCOMPLISH.
SO, WE'LL HAVE SOME OF HER STAFF AT THE JANUARY MEETING.
BUT THIS IS, SHE WAS ABLE TO GET A BUDGET AWARD THROUGH THE ASSOCIATION.
LET'S SEE. IT'S THROUGH THE ASSOCIATION OF SCHOOL BUSINESS OFFICIALS, ASBO.
AND SO, WE'LL BE PRESENTING THAT AWARD AND RECOGNIZING THEM AT THE JANUARY MEETING.
I WANT TO SAY SOMETHING ABOUT THAT, TOO, VERY QUICKLY.
STRONG ORGANIZATIONS HAVE STRONG TEAMS, STRONG TEAMS HAVE STRONG LEADERS, ET CETERA.
DR. GLENN IS A PHENOMENAL FINANCIAL LEADER FOR US, AND WE ARE FORTUNATE.
WE RECOGNIZE EVERY DAY WHAT SHE DOES.
BUT I WANT YOU TO KNOW THAT DR.
GLENN ALONG, OBVIOUSLY, ALONG WITH KATIE.
DR. GLENN IS ONE OF OUR STRONGEST LEADERS.
AND I KNOW AS A RIGHT HAND FOR KATIE.
AND WE'RE VERY FORTUNATE TO HAVE HER ON OUR TEAM.
SO, WE'LL WE LOOK FORWARD TO THAT.
ALL RIGHT. SO, I DO WANT TO TAKE YOU THROUGH SOME INFORMATION TONIGHT.
JUST A LITTLE BIT OF A WORKSHOP AGENDA.
BACK IN 2019, THROUGH THE ADVICE OF OUR FINANCIAL ADVISOR, YOU UPDATED BOARD POLICY CCA LOCAL, BASICALLY OUTLINING OUR DEBT MANAGEMENT PRACTICES, AND ALSO PROVIDING SOME GUIDELINES FOR THE USE MANAGEMENT, ISSUANCE OF DEBT, REALLY COVERING A LOT OF THESE AREAS. OUR BOND RATERS LOOK AT THESE.
SO, UNDER THIS POLICY, WE LIKE TO SHOW THAT WE'RE HAVE SUFFICIENT DEBT CAPACITY FOR OUR CURRENT AND FUTURE CAPITAL NEEDS CREATING AS YOU HAVE THROUGH OUR BOND COMMITTEES.
AND EACH YEAR AS WE LOOK AT SOME OF OUR REPLACEMENT SCHEDULES MULTI-YEAR CAPITAL IMPROVEMENT PLANS AND ALSO REVIEWING THAT PLAN ON AN ANNUAL BASIS AND MAKING APPROPRIATE RECOMMENDATIONS.
SO, THAT'S ONE OF THE OTHER MAIN REASONS FOR THIS MEETING TONIGHT.
AND AS WE ARE ABLE TO TALK ABOUT THOSE ONETIME PROJECTS.
SO JUST REMINDING YOU ABOUT OUR TAX VALUES.
ONCE THE VALUES CAME IN IN JULY, WE WERE AT 15.6%.
[00:10:01]
BELOW 5%.SO THAT'S WHERE WE ENDED UP FOR THE YEAR ESTIMATED TAX RATE WAS PROJECTED TO DROP WHEN WE WENT TO YOU IN JUNE AT ALMOST THREE AND A HALF CENTS. AND YOUR FINAL RATE THAT THE BOARD ADOPTED DROPPED THE RATE JUST UNDER $0.08.
AND YOU CAN SEE ALL THE DROPS THAT WE'VE HAD.
SO THAT'S BEEN REALLY GOOD MANAGEMENT OF OUR DISTRICT TAX RATE.
SO, HERE'S A GRAPH OR A CHART I GUESS OF OUR STUDENT ENROLLMENT.
JUST REMINDING YOU A LITTLE BIT OF WHERE WE'VE BEEN.
BACK IN 14, WE WERE HAD KIND OF BEEN CONSISTENTLY OVER 24,000.
IN 2017, THE INTERNATIONAL LEADERSHIP CHARTER OPENED, AND WE DID LOSE SOME STUDENTS THROUGH THAT.
THE IDEA CHARTER SCHOOL OPENED IN 2020, AND THEY KIND OF DID IT SLOWLY WITH A FEW GRADES AT A TIME.
AND THEN, OF COURSE, OUR BIG DROP HAPPENED DURING COVID, WHICH WE HAD THOUGHT WE WOULD RECOVER FROM.
BUT YOU CAN SEE WE'VE STILL CONTINUED TO STAY A LITTLE BIT LOW.
SO, THIS YEAR WE HAVE DROPPED AROUND 418 STUDENTS.
KELLER, THEY'VE THEY'RE BELOW PROJECTIONS, I BELIEVE HE TOLD ME TODAY THEY'RE 900 BELOW PROJECTIONS.
I ALSO PULLED A REPORT, JUST OUT OF CURIOSITY, TO SEE HOW THE CHARTERS WERE DOING.
IDEA IS STILL ADDING GRADES, SO THEY ARE GROWING, BUT IT'S KIND OF HARD TO TELL.
BUT IT WAS INTERESTING WHEN I LOOK AT THE INTERNATIONAL LEADERSHIP ELEMENTARY.
THAT'S RIGHT DOWN THE STREET FROM OUR SCHOOLS.
UM, IN 1920, THEY HAD 932 IN THEIR ELEMENTARY.
IN 21-22, THEY HAD DROPPED TO 881.
AND THIS PAST YEAR THEY WERE DOWN TO 855.
SO, THEY'RE NOT UP TO CAPACITY EITHER.
SO, I THINK THERE'S DEFINITELY.
YES, MA'AM. YEAH. NO, IT'S INTERESTING TO US BECAUSE, FIRST OF ALL, OUR NUMBERS ARE DEMOGRAPHER AND THE LAST DEMOGRAPHY REPORT THAT WE RECEIVED IS RIGHT ON PAR WITH THE NUMBERS THAT YOU'RE SEEING.
SO, THE DEMOGRAPHERS WERE CORRECT.
UM, AND IT'S INTERESTING TO ME THAT, UM.
THEY ARE LESS THAN WHAT WAS PROJECTED.
SO, WE'RE SEEING THIS TREND IN TARRANT COUNTY AS A WHOLE.
WHAT NUMBER DID WE USE FOR BUDGETING PURPOSES FOR THIS YEAR? WELL, IT WOULD HAVE BEEN 418.
WELL, NO, NO, THAT'S NOT TRUE.
GOSH, MR. DAVIS, I DID NOT PULL THAT NUMBER.
WE DID. WELL, AND I GUESS THAT'S WHAT I'M TRYING TO THINK.
I THINK WE KEPT IT KIND OF STEADY.
WE DID. THAT'S RIGHT. WE KEPT IT STEADY AT THE 22, 638.
YES, SIR. SO, WE'RE DOWN TO 400 NOW.
SO, BUT THE GOAL IS TO TRY TO GET THE PRE K KIDS IN.
AND HOPEFULLY THEY WILL STAY WITH THE DISTRICT.
AND WE'LL SEE THOSE LOWER GRADES GROW AND I APOLOGIZE I DON'T KNOW.
THAT'S FINE. I'M JUST CURIOUS.
YEAH. YOU SEE UM THE INCREASE LAST YEAR OF 126.
AND THAT'S WHEN WE OPENED UP THAT THREE-YEAR-OLD PRE-K.
I DON'T KNOW THAT IT ALL IS ATTRIBUTED TO THAT, BUT THAT CERTAINLY HELPS.
CERTAINLY HELPED. AND WE ALSO HAVE THE TUITION-BASED PRE-K STUDENTS AS WELL, WHICH WE GET THE 100% OF THAT TUITION, REGARDLESS OF WHETHER THEY ARE PRESENT OR NOT.
FOR NEXT YEAR, WHAT I'VE DONE IS I TOOK ALL OF THE GRADES, AND I ROLLED THEM.
SO RIGHT NOW, JUST BASED ON THE STUDENTS THAT WE HAVE, I'M PROJECTING A DROP OF ABOUT 128 KIDS.
SO, THERE MAY BE SOME ADJUSTMENTS BASED ON THE NUMBERS THAT WE GET FROM THE DEMOGRAPHER.
SO, WE'LL HAVE SOME OPPORTUNITIES TO LOOK AT WHAT IS HAPPENING AT OTHER DISTRICTS.
BECAUSE OUR DEMOGRAPHER, I THINK, PRETTY MUCH WORKS FOR MOST OF THE DISTRICTS IN OUR AREA.
AND THE DEMOGRAPHER CAN GET REALLY SPECIFIC, AS YOU KNOW, AND LET US KNOW THE NEIGHBORHOODS THAT ARE THAT ARE AGING AND HAVE NOT TURNED OVER YET AND THE PROJECTIONS OF POSSIBLY WHEN THEY WOULD, ET CETERA.
[00:15:04]
AND 95.7.WITH COVID IN 2021, NOW THAT WAS 2021 WAS THE YEAR THAT STUDENTS WERE ABLE TO LEARN ONLINE.
THEN IN 21-22, THE ONLINE LEARNING STOPPED.
AND OF COURSE, THAT'S WHEN WE SAW THE DROP IN ENROLLMENT AND ATTENDANCE.
22-23 WAS THE YEAR AND THIS WAS LAST YEAR.
YOU CAN SEE EACH SIX WEEKS PERIOD IS A LITTLE UNIQUE.
I HAVE A SPREADSHEET WITH ABOUT TEN YEARS OF DATA.
WITH THAT, I TRACK BY SIX WEEKS TO COME UP WITH THOSE AVERAGES.
BUT WE DID IMPROVE FOR THIS PAST YEAR, WE WERE UP OVER A WHOLE PERCENT, ABOUT 1.2% OVER LAST YEAR.
BUT THE EXCITING THING IS THIS YEAR.
SO. THIS YEAR, THE FIRST THREE, SIX WEEKS, YOU CAN SEE AS THE CAMPUSES CONTINUED WORKING ON THEIR ATTENDANCE INCENTIVES AND THEN THE TRIBUNAL THAT WE STARTED THIS YEAR, WE ARE UP OVER A WHOLE PERCENTAGE POINT.
AND SO, MY PROJECTIONS FOR THIS YEAR AT 94, 31 AT THE BOTTOM INCLUDES THE NEW SIX WEEKS, THE FIRST SEMESTER, AND THEN THE LOWER LEVELS FOR LAST YEAR.
SO, IF WE CONTINUE THAT TREND AND SEE THOSE NUMBERS GOING UP, THEN WE SHOULD HAVE A HIGHER LEVEL.
AND I THINK THE HOPE IS THAT WE WILL.
AND THEN WE WON'T HAVE TO DO QUITE AS MUCH ENFORCEMENT AND WORK ON THAT.
SO, IT DOESN'T TAKE A LOT IN ENROLLMENT.
I'M SORRY, IN ATTENDANCE TO GET OUR REVENUE UP.
I WANTED TO GIVE YOU SOME INFORMATION ABOUT OUR SPECIAL POPULATION.
SO I PICKED THE TWO THAT ARE GROWING THE GREATEST IN THE DISTRICT.
NOW, THESE ARE ENROLLMENT NUMBERS.
THEY'RE NOT AVERAGE DAILY ATTENDANCE.
JUST REMEMBER, THESE ARE FLUID NUMBERS.
THIS IS A POINT IN TIME WHEN THAT, WHAT THAT ENROLLMENT WAS.
BUT THE SPECIAL ED NUMBERS AND THE BILINGUAL NUMBERS ARE CONTINUING TO GROW.
SO, IN BILINGUAL EDUCATION WE'VE GROWN OVER 600 STUDENTS, UH, SINCE 2019-20.
AND THE SPECIAL EDUCATION, YOU CAN SEE WE'VE GROWN 690 STUDENTS.
BUT ONCE YOU TO SEE WHAT THIS DOES WITH OUR FUNDING.
YES, MA'AM. I THINK THAT THIS IS GOING TO BE A-- FIRST OF ALL, THIS TREND IS STATEWIDE.
AND I THINK THAT THIS IS GOING TO BE A SIGNIFICANT STUDY IN YEARS TO COME.
DR. CLARK, PROBABLY, A PLETHORA OF DISSERTATIONS.
WHEN YOU GO BACK AND LOOK AT THE TIMING OF THE PANDEMIC AND THEN THE INCREASE IN SPECIAL NEEDS AND I DON'T KNOW, THE CORRELATION, I HAVEN'T DONE THOSE STUDIES, BUT I CAN TELL YOU THAT THESE NUMBERS ARE THE SAME NUMBERS THAT MIRROR MOST DISTRICTS IN THE STATE OF TEXAS IN TERMS OF INCREASE.
AND IT'S JUST AT THE LOWER LEVEL.
SO, I THINK THAT THERE, I DON'T WANT TO SPECULATE THAT THERE'S A CORRELATION, BUT I THINK THIS IS, UH, PREPARATION FOR STUDIES TO COME.
YEAH, I THINK A LOT OF IT HAS TO DO WITH WHAT IS NOW BEING TERMED VIRTUAL AUTISM.
AND THE LIGHT FROM TECHNOLOGY IS CHANGING HOW THE EYES EVEN PROCESS HOW THEY SEE IMAGES.
WOW. IT'S REALLY INTERESTING TO HEAR WAS TALKING TO A NEIGHBORING DISTRICT RECENTLY.
I WON'T, YOU KNOW, I WON'T MENTION NAMES, BUT, YOU KNOW, WE WERE TALKING ABOUT THE INCREASE.
YOU KNOW WHAT? WE ALL WORK TOGETHER IN TALKING ABOUT CO-OPS AND HOW CAN WE HELP ONE ANOTHER WITH OUR INCREASES? WE'RE TALKING ABOUT THE NUMBERS OF INCREASES IN ANOTHER DISTRICT.
OUR SIZE AND THEIR INCREASE IN SPECIAL EDUCATION STUDENTS IS RIGHT AT 900.
[00:20:04]
SO, AND THAT'S A NEIGHBOR.WE COULD HAVE AS MUCH AS MANY AS 1400 INITIAL REFERRALS IF IT CONTINUES AS IT'S GOING.
YOU KNOW, WE GET WEIGHTS BASED ON THE TYPES OF PROGRAMS THOSE STUDENTS ARE INVOLVED IN.
SO THOSE CAN RANGE FROM 1.3% UP TO FIVE, DEPENDING ON HOW SEVERE THE DISABILITY IS.
SO, THIS IS WHAT WE GENERATED AS A DISTRICT UH, LAST YEAR.
NOW REMEMBER THE SPECIAL EDUCATION IS A ONE POINT.
BUT UNFORTUNATELY, OUR EXPENDITURES LAST YEAR WERE OVER 25 MILLION.
SO MAY I SAY SOMETHING? YES, MA'AM. PLEASE.
THE SAME THE SAME DRUM BEATING IN EVERY SINGLE DISTRICT THAT YOU TALK TO.
AGAIN, ANOTHER NEIGHBOR, A DIFFERENT NEIGHBOR THAT IS JUST SLIGHTLY LARGER THAN US.
AND WHEN I SPOKE WITH THEIR SUPERINTENDENT, UH, AND ASKED WHAT THEIR TOTAL EXPENDITURES AND HIS ANSWER WAS 40 MILLION. AND THEY'RE JUST SLIGHTLY LARGER THAN US.
SO, EVERY DISTRICT IS DEALING WITH THE SAME RED NUMBER, IF YOU WILL.
SO, TO THAT TUNE, I LOOKED UP OUR CHARTER FRIENDS.
SO, I FELT AT THE CAMPUS WITH THE 855 STUDENTS, THEY ONLY HAD 52 SPECIAL EDUCATION STUDENTS, WHICH PUT THEM AT 6%.
UM, THE MIDDLE SCHOOL HAD 31, WHICH PUT THEM AT 7%.
THE IDEA HAD 65, WHICH PUT THEM AT 10%.
AND THEN BIRDVILLE DISTRICT WIDE IS ALMOST 13% LAST YEAR OF THEIR STUDENTS.
SO, THERE'S A SIGNIFICANT DIFFERENCE, BECAUSE WE'VE HEARD THAT MANY TIMES, THE CHARTERS WILL ENCOURAGE STUDENTS TO GO BACK TO THE ISD'S BECAUSE OF THE SERVICES THAT ISD CAN PROVIDE THAT ARE A LITTLE MORE DIFFICULT.
SO, SINCE YOU BROUGHT THAT UP, I WANT TO MAKE A CLARIFICATION AS WELL.
SO, IF THE STUDENTS WITH SIGNIFICANT NEEDS, OFTENTIMES THOSE CHARTER SCHOOLS DON'T HAVE OR CLAIM TO NOT HAVE WHAT THEY NEED TO EDUCATE AND SERVE THOSE STUDENTS.
AND SO, IF YOU SEE SPECIAL NEEDS AT A PARTICULAR CHARTER SCHOOL THAT COULD BE SIMPLY SPEECH.
SO, PER OUR BOARD POLICY PIECES, WE'LL LOOK AT THE DEBT SERVICE FUND.
I ALWAYS LIKE TO REMIND YOU OF WHERE WE'VE BEEN AS FAR AS REFUNDING.
SO, THROUGH A BOND REFUNDING REFINANCES AND PREPAYMENTS THROUGH THE BOARD'S DIRECTION, WE'VE SAVED TAXPAYERS OVER $38 MILLION IN INTEREST COSTS.
SO THAT'S REALLY, REALLY GOOD NEWS.
ASSUMPTIONS FOR THESE PROJECTIONS.
WE STILL HAVE AROUND $1.5 BILLION OF HOMESTEAD CAPS THAT, YOU KNOW, THEY CAN ONLY RAISE HOMESTEADS 10%. SO, WITH THAT, WE ARE GOING TO STILL SEE SOME INCREASES IN OUR PROPERTY VALUES.
[00:25:03]
WE DON'T. SO WE'RE PROJECTING 8% AND THEN 5% THE OTHER TWO YEARS.UM, THE STUDENT ENROLLMENT PIECE WE SAW BEFORE OF 128 FOR NEXT YEAR REDUCTION.
AND THEN I'M JUST LEAVING EVERYTHING THE SAME BECAUSE WE DON'T GET A LOT OF STATE MONEY FROM, UM, THE ON THE DEBT SERVICE SIDE, NO CHANGE IN THE PROJECTED TAX RATE FOR FUTURE YEARS. AND THEN WE'RE ASSUMING A LITTLE BIT OF AN INTEREST EARNINGS REDUCTION.
WE ARE BEING TOLD THAT RATES ARE GOING TO GO DOWN.
SO, WE WENT AHEAD AND MADE THAT ADJUSTMENT IN THESE FINAL PIECES.
AND THEN I'VE ESTIMATED WHAT WE COULD AFFORD IF THE BOARD SO CHOSE TO DO BOND PREPAYMENTS, OR IT ALLOWS CAPACITY IN OUR DEBT SERVICE TAX RATE FOR FUTURE BOND PROGRAMS. THIS IS A CHART THAT OUR FINANCIAL ADVISOR PROVIDED TO YOU IN THE SUMMER.
AND I JUST WANTED TO REMIND YOU THAT YOU'VE BEEN VERY STRATEGIC IN HOW YOU LADDER YOUR BONDS.
SO, WE HAVE CAPACITY IN ORDER TO ASSIST THE DISTRICT, IF THE BOARD SO CHOOSES TO GO OUT AND DO SOME ADDITIONAL FACILITY UPGRADES, REPLACEMENTS, THOSE TYPES OF THINGS.
SO THAT'S WHY YOU'RE GOING TO SEE WHEN WE LOOK AT THESE NUMBERS, WHY THERE'S EXCESS REVENUE OUT IN THE FUTURE YEARS BECAUSE WE HAVE STRUCTURED OUR DEBT SPECIFICALLY FOR THAT. SO, JUST SHOWING YOU WITH 23-24 THERE, WE'RE PROJECTING RIGHT NOW ABOUT A $1.9 MILLION SURPLUS.
BUT OF COURSE, OUR FISCAL YEAR ENDS IN JUNE.
AND THEN YOU CAN SEE FOR THE NEXT THREE YEARS WE DO HAVE THE ABILITY AT THESE PROJECTED TAX RATE GROWTH OR TAX GROWTH, VALUE GROWTH TO DO SOME BOND PREPAYMENTS OR IF THE BOARD NEEDED AND DESIRED TO LOOK AT A FUTURE BOND PACKAGE, IT GIVES YOU SOME CAPACITY TO GO TO THE VOTERS.
NONE FOR THIS YEAR, NONE FOR THIS YEAR, BECAUSE WE JUST DID THAT BOND ISSUANCE IN AUGUST.
BUT SIR, THOSE PAYOFFS AND 24 THROUGH 27.
THOSE WOULD BE PROPOSED IF THE BOARD WANTED TO DO BOND PREPAYMENTS.
YES, SIR. THEY'RE JUST PROPOSED FUND BALANCE.
YEAH. WHAT I DID IS I WAS JUST TRYING TO COME UP WITH WHAT WE WOULD, YOU KNOW, HOW MUCH WE MIGHT DO.
WHERE DID YOU GET THOSE NUMBERS? WHICH ONES? OH, I JUST MADE THEM UP BASED ON WHAT WAS HERE.
THERE YOU GO. BASED ON WHAT'S YOUR BALANCE WOULD BE.
YEAH. IT'S REALLY AN ATTEMPT TO KEEP THE FUND BALANCE LEVEL.
SO, I LOOKED I REALLY JUST KIND OF SHAVED OFF THE MILLIONS TO WHAT WOULD.
SO, IF I DIDN'T HAVE THIS HERE, THIS WOULD BE 4.7 MILLION.
SO, I JUST SHAVED THE MILLION OFF.
JUST THE TRUTH. GOOD. I ESTIMATED THOSE, SO I HAVE A I HAVE A I LOOK INTO THE FUTURE.
SO GENERAL FUND LET'S TAKE A LOOK AT GENERAL FUND.
SO, OUR ASSUMPTIONS HERE TAX PROJECTIONS.
WE'RE ONLY LOOKING ONE YEAR OUT BECAUSE WE HAVE ANOTHER LEGISLATIVE SESSION COMING.
SO, THERE'S SO MANY VARIABLES.
IT DOESN'T REALLY DO US ANY GOOD TO GO TOO FAR OUT.
SOME OF THESE ARE UNFORTUNATE.
WE DID MAKE SOME INTEREST REVENUE REDUCTIONS LIKE WE DID WITH THE DEBT SERVICE FUND.
SHAR'S REVENUE AND I BELIEVE WE'VE MENTIONED THIS TO YOU.
THE STATE OF TEXAS WAS AUDITED BY THE FEDERAL GOVERNMENT, AND WE RECEIVED NEWS RIGHT BEFORE CHRISTMAS THAT THEY'RE CHANGING THE PERCENT OF REIMBURSEMENT RATE FOR TEXAS SCHOOLS, AND IT'S BEING CUT IN HALF.
SO, WE'RE LOSING SEVERAL MILLION DOLLARS OF OUR SHARS REVENUE.
SO, IT'S A PROCESS WHERE DISTRICTS CAN GET REIMBURSEMENT WHEN YOU HAVE HIGH POVERTY STUDENTS.
AND SO, IF YOU ARE A DISTRICT OF HIGH POVERTY AND STUDENTS WHO, UM, WHO HAVE THOSE NEEDS THAT ARE ON MEDICAID, UM, YOU WERE PROBABLY HIT MORE SIGNIFICANTLY WITH THIS REDUCTION, WHICH WOULD BE US.
WE ARE WE ARE REFLECTING NO ESSER FUNDING FOR FISCAL YEAR 24-25.
WE HAD INCREASES IN UTILITY AND INSURANCE, AND THEN WE'VE ALSO INCLUDED THE FULL COST OF THE SECURITY OFFICERS THAT WE HOPE TO HAVE AT OUR ELEMENTARY SCHOOLS STARTING NEXT YEAR.
[00:30:03]
ALL THAT'S JUST WE'VE JUST PROJECTED THE COST IN THERE BECAUSE.YES, SIR. IT'S JUST WE'VE JUST PUT THOSE COSTS IN.
YES. WHAT CAN WE PAY OUR BASICALLY GENERALLY KIND OF WHAT WE PAY.
I GUESS HE'S GONE. YEAH, HE GAVE US ESTIMATES FOR THOSE NUMBERS.
OKAY, SO THIS IS WHERE RIGHT NOW WE'RE PROJECTING 23-24.
AND IF YOU REMEMBER BACK IN OCTOBER WHEN WE I GUESS IT WAS NOT OCTOBER.
IT WAS DECEMBER WHEN WE ADJUSTED THE BUDGET.
WE DID PUT IN THE SECURITY OFFICER MONEY.
SO, IT IS IN THE BUDGET ALREADY FOR THIS YEAR, EVEN THOUGH IT WON'T BE SPENT.
SO, THERE'LL BE SOME OF THAT LEFT OVER THIS YEAR.
AND SO RIGHT NOW WE'RE PROJECTING $4.4 MILLION SURPLUS FOR THIS YEAR.
YOU KNOW, WE HAVE THE NEW TASB 54 FUND BALANCE POLICY.
AS WE LOOK TO NEXT YEAR, YOU CAN SEE WE HAVE WHERE WE'VE REDUCED OUR INTEREST INCOME.
DID THAT INCLUDE ANY RAISES IN IT? NO, SIR.
THAT'D BE 4 MILLION INCREASE WITH NO RAISES.
THAT'S CURRENT. CURRENT YEAR? YES, SIR. YOU DO RAISES, EXPENDITURES? YES, SIR. YEAH, THAT'S JUST CURRENT YEAR BECAUSE WE PASSED THE VAT.
SO, WE HAVE AN INTEREST INCOME REDUCTION.
AND THEN THE PAYROLL INCLUDES THE ESSER SUPPLANTED POSITIONS.
IF YOU REMEMBER, THE ESSER FUNDS CAME IN ESSER III, THE YEAR THAT WE LOST THE 800 STUDENTS.
AND SO, WE TOOK A PORTION OF THE GENERAL FUND SALARIES AND MOVED THEM TO ESSER, AS THE STATE HAD INSTRUCTED US TO DO TO HELP US OFFSET THE LOSS OF REVENUE.
SO, THOSE JOBS HAVE ALL BEEN MOVED BACK OVER ANY OF THE JOBS IN ESSER THREE THAT WERE BRAND NEW.
AND WE HIRED THOSE INDIVIDUALS WITH THE UNDERSTANDING THAT THEY HAD A JOB FOR THREE YEARS.
THOSE JOBS WILL NOT BE ROLLED INTO THIS.
SO, THEY'RE NOT IN THE 209? NO, SIR, NO, SIR.
DEFINE SUPPLANTED ONES FOR ME.
WHAT WAS THE PHRASE THEY USED? YEAH. CONTINUITY OF SERVICE.
SO, WE HAD I BELIEVE WE HAD SOME HIGH SCHOOL TEACHERS.
WHAT OTHER POSITIONS DO YOU REMEMBER? WHAT ALL WE PULLED OVER.
RIGHT. SO THOSE INDIVIDUALS DIDN'T KNOW THEY WERE BEING FUNDED OUT OF ESSER.
IT WAS IT WAS AN OPPORTUNITY FOR US BACK AT THAT TIME TO BE ABLE TO CONTINUE PAYING OUR TEACHERS AND OUR, THE STAFF THAT WERE HERE AND THEN GIVING US TIME TO TRIM THE BUDGET AS WE WENT THROUGH.
SO, IT COULDN'T BE ANY BRAND-NEW POSITION.
AND SO NOW IT'S HAVING TO BE MOVED BACK BECAUSE THOSE FEDERAL FUNDS ARE GONE.
RIGHT. THAT 8.1 MILLION BETWEEN 200 AND GO TO 209.
ALL OF THAT IS ATTRIBUTED TO THOSE APPOINTED POSITIONS.
YES. IS THAT 209 INCLUDE ANY TYPE OF PAY RAISES.
OKAY. WE WILL SAY 1% PAY RAISE.
BELIEVE IT WAS, WHAT, 2.3 MILLION FOR THE GENERAL FUND LATER LAST YEAR? SAY THAT AGAIN.
WE'RE ALREADY IN THE NEXT ROOM WITH THE VADER.
WE'RE NOT FINISHED WITH THE YEAR.
SO, I THINK IF KATIE, IF YOU I WILL, I WILL.
[00:35:01]
SO, THIS YEAR'S 4 MILLION SURPLUS, THEY'RE PROJECTING THE NEXT YEAR'S BUDGET, RIGHT? THAT'S THE PROBLEM.YEAH. NO KIDDING. AND THEN, UM.
SUPPLANTED. SO JUST A REMINDER KIND OF WHERE WE WHEN WE TALKED IN THE SUMMER AT ABOUT THE VADER WHEN WE WERE ESTIMATING A FLAT ENROLLMENT WITH THE VADER AND WHERE WE WERE IN JULY, WE WERE GOING TO BE AT A BALANCED BUDGET.
AND WHEN WE LOST THE SHAH'S REVENUE AND WE HAD TO REDUCE OUR INTEREST EARNINGS, UM, AND THEN THE LOSS OF 400 PLUS STUDENTS, THAT'S THE REASON THAT WE'RE AT THE 6.5 MILLION DEFICIT.
HOWEVER, AS DOCTOR STINSON MENTIONED, WE TYPICALLY UNDERSPEND OUR BUDGETS BY 1 TO 2% ANNUALLY BECAUSE WE BUDGET AT 100% OF STAFFING. UM, THERE WE HAVE CONTINGENCIES IN THE BUDGET.
WE HAVE TO COVER THINGS THAT COME UP DURING THE YEAR THAT SOMETIMES WE DON'T HAVE TO USE.
SO, WE TRADITIONALLY MAY HAVE UP BETWEEN 1 AND 2%.
SO, FOR 23-24, THAT COULD RANGE FROM 2.3 TO 4.7 MILLION AND 24-25 TO 2 POINT 4 TO 4.9.
EVERY DISTRICT IN THE STATE KIND OF ALWAYS KNOWS THEY HAVE THAT IN THE BACK OF THEIR MIND.
SO WHILE IT IS SIX AND A HALF, IF WE, YOU KNOW, DO THE NORMAL UNDERSPENDING, WE WILL PROBABLY BE MORE AROUND THE, THE 3 TO $4 MILLION DEFICIT RANGE, BUT THAT'S STRICTLY BASED ON ENROLLMENT.
WHEN WE DROPPED ENROLLMENT THAT'S WITH NO PAY INCREASE.
THAT'S CORRECT, THAT'S CORRECT.
WE DID PROJECT MORE OF A DEFICIT FOR THIS YEAR.
YEAH. BUT THAT THAT'S CORRECT.
WITH RAISES WE ACTUALLY YOU KNOW, WE FUND RAISES WE WERE AT IN THE $6 MILLION DEFICIT.
SO, IT'S REALLY A $10 MILLION SWING.
WELL, LET'S DO THE MATH. THAT'S 6.5 MILLION ON SHARDS THAT WE WEREN'T EXPECTING A REDUCTION ON.
THAT'S CORRECT. THAT JUST HAPPENED FROM RIGHT BEFORE CHRISTMAS 4 TO 3.8.
AND WE WERE NOT TOLD ABOUT THAT UNTIL DECEMBER.
TWO YEARS. WELL, GOT IT TO THE MIDDLE COLUMN.
YEAH. THE SHAH IS REALLY COMPARISON WITH 23-24, 24-25.
I THINK FISCAL YEAR VERSUS SCHOOL YEAR IS PROBABLY PART OF THAT.
SO, YOU GOT 9 MILLION LOST ON THE PAYROLLS OF SOME PLANTING.
YOU GOT WHAT AM I COMPARING ON THE SHORES? WHAT YOU'LL COMPARE THE TWO RIGHT COLUMNS.
THAT'S ON THE TWO POINTS. THAT'S CORRECT.
SO, WE'RE BECAUSE IT IS AN INDIRECT COST.
AND THEN YOUR INTEREST REDUCTION OF ABOUT HALF A MILLION.
THE BIGGEST PIECE IS GOING TO BE YOU GET $2 MILLION LESS REVENUE.
YOU GET $2 MILLION LESS REVENUE AND ABOUT $9 MILLION MORE EXPENSE.
AND WITH THE VADER IN THE SUMMER, WE WOULD HAVE HAD A BALANCED BUDGET OR A SURPLUS.
UNFORTUNATELY, WE WEREN'T EXPECTING TO LOSE 416 KIDS THIS YEAR.
UM, AND ALSO, UM, HAVING THE REDUCTION IN THE SHAHS AND INDIRECT COST.
CAN I ASK WHY DID WHY DID THE INTEREST INCOME REDUCE FROM 6 MILLION TO IN 2023 TO 22, 23 TO 23? THAT'S NOT THAT IS OTHER LOCAL REVENUE AS WELL.
AND I BELIEVE WE HAD A DO WE HAVE AN INSURANCE SETTLEMENT OF THAT? I DON'T REMEMBER WHAT WE HAD IN THAT.
THERE WAS SOMETHING ELSE. YEAH.
22-23. SO, YOU'RE SAYING THAT.
THE TAX REVENUE. THAT FIRST LINE UNDER OPERATING REVENUE.
YOU'RE SAYING THAT THE 106 MILLION.
YOU'RE SAYING THAT'S. IT'S SHAVED OFF 400 PLUS STUDENTS.
THE TAXES ARE WHAT WE HAVE, WHAT WE COLLECT.
[00:40:08]
AND THEN THEY GO IN AND SUBTRACT OFF WHAT THEY THINK YOU'RE GOING TO COLLECT IN TAXES.YEAH, THAT'S WHAT HURTS. IT'S ALMOST THE SAME.
4 MILLION OF TAX REVENUE WENT UP.
WE'VE BEEN TELLING THAT STORY FOR A LONG TIME.
I DID IT LIKE THAT. YEAH, YEAH.
THIS LINE RIGHT HERE. AND WE ACTUALLY FOR 24 LET'S SEE 2425 WE WILL ACTUALLY HAVE AROUND $700,000 OF RECAPTURE ON THOSE COPPER PENNIES.
THAT 1% RAISE IN INDEPENDENCE DOESN'T DO ANYTHING FOR US.
400 STUDENTS, BUT THOSE STUDENTS THAT ARE ATTENDING ARE 1% MORE LIKELY THAN THE CLASS.
IS THAT NOT? WELL, IF YOU REMEMBER BACK ON THE OTHER SLIDE, JUST THE 1% PER SIX WEEKS GENERATED ABOUT $400,000 PER SIX WEEKS FOR ONE FOR ONE SEMESTER. AND THAT CONCLUDES YOUR PRESUMPTION.
THAT WILL BE UP, AND WE'LL HAVE INCREASED OUR ATTENDANCE.
IT INCLUDES IT FOR THE FIRST SEMESTER.
IF WE HAVE THE SECOND SEMESTER GOING JUST AS WELL, THEN I WILL GO IN AND ADJUST THAT ATTENDANCE UP.
SO, WE CAN PROBABLY PUT ANOTHER 400,000 ON THAT.
SO, BY THE TIME WE GET TO THAT POINT, IF WE SEE THAT SOMETIMES WE HAVE AN ILLNESS, EVERY POINT OF ATTENDANCE INCREASE IS 400,000 PER SEMESTER. WELL, IT YOU COULD PROBABLY SAY THAT ABOUT 400,000 IT YOU KNOW, EACH SIX WEEKS.
IT DEPENDS ON THE STUDENTS AND THEIR WEIGHTS.
AND YOU KNOW, IT'S A LITTLE MORE COMPLICATED THAN THAT.
BUT I'LL RUN A NUMBER FOR YOU TO GIVE YOU KIND OF WHAT THAT LOOKS LIKE SO THAT.
SNOW DAYS, A BUNCH OF COLD, FRIGID DAYS.
YEAH. KIDS STAY HOME AND COME TO SCHOOL AND, YOU KNOW, AGAIN, IN REALITY, THE 6.5 DECREASE THAT'S CURRENT TODAY.
AND WE KNOW AT THE END OF THE YEAR WE'RE GOING TO END UP PUTTING ANYWHERE FROM TWO AND A HALF TO $4.5 MILLION BACK BECAUSE WE UNDERSPEND. EVERY SINGLE YEAR.
SO, IN REALITY, THAT'S SIX AND A HALF IS PROBABLY CLOSER TO THREE.
RIGHT. AND THIS IS BEFORE WE'VE ACTUALLY DONE OUR BUDGET WORK.
WE'RE STILL, WE'RE SEEING WORST CASE SCENARIO.
YEAH, WE'RE WORKING THROUGH THE BUDGET NOW TO SEE WHAT WE CAN CUT.
AND, YOU KNOW, THROUGH ATTRITION, DIFFERENT THINGS LIKE THAT.
SO, THIS IS WHERE WE ARE IF WE DON'T MAKE ANY CHANGES.
BUT WE ARE WORKING ON THAT RIGHT NOW.
PARDON ME. UH, THROUGH ATTRITION.
BUT THEN AGAIN, JOE, THAT'S INCLUDING NO PAY RAISE AT ALL.
YEAH, I KNOW, I THINK HE'S TALKING.
POSITIONS NEED TO COME DOWN, NOT SALARY.
I DON'T SEE I DON'T SEE THE NUMBER OF POSITIONS YOU MEAN.
I'M SORRY. YOU DON'T SEE HOW YOU MAKE ANY SENSE OF WHAT? I WANT TO MAKE SURE YOU UNDERSTAND WHAT WE'RE PRESENTING.
SO. ARE YOU SURE? OKAY. UNLESS THERE'S OTHER SOURCES OF REVENUE THAT ARE INCREASING.
AND THE BOARD AND THE STATE HADN'T GOT THOSE REVENUES TO US.
OKAY. SO, WANTS US, I WANT TO DO SOME OPERATIONAL COST UPDATES.
I DID THESE BACK WHEN WE WERE DOING THE BOND PRESENTATION.
JUST TO KIND OF SHOW YOU, ESPECIALLY AS WE'RE STARTING TO WORK WITH THE DEMOGRAPHER.
AND JUST A REMINDER ABOUT, YOU KNOW, WHEN WE HAVE CAMPUSES THAT HAVE LOW THE LOWER ENROLLMENT AREAS, YOU'RE GOING TO HAVE A LOT HIGHER COST PER STUDENT. SO, AS WE'RE WORKING WITH DEMOGRAPHERS, THERE MIGHT EVEN BE OPPORTUNITIES WHERE, YOU KNOW, WE MAY NEED TO SHIFT SOME ATTENDANCE ZONES AT SOME POINT.
WE KNOW WE'VE HAD OVERFLOW AND THINGS LIKE THAT AT SOME OF OUR LARGER CAMPUSES.
WHEN WE'VE COMBINED DAVID E SMITH AND FRANCISCO, NOW WE'LL GET SOME EFFICIENCY THAT WILL HELP.
THAT'S CORRECT. THAT WILL HELP.
AND AS WE HAVE COMBINED CAMPUSES IT'S CERTAINLY HELPED.
RIGHT. AND I AND I THINK AS WE GO ALONG, YOU KNOW AS YOU LOOK AT THIS CHART, YOU OBVIOUSLY THESE ARE, THESE ARE, YOU KNOW, THE OPERATIONAL EFFICIENCIES OR INEFFICIENCIES, YOU KNOW, DUE TO NUMBERS.
[00:45:02]
SO, IT'S GOING TO COST YOU THE SAME.SO, YOU KNOW, I, I THINK AT SOME POINT, AND I DON'T KNOW THAT THE LAST TIME THE DISTRICT, UM, EVEN BROACHED THE TOPIC OF LOOKING AT, AT YOUR ZONES.
AND SO, AT SOME POINT IT MAY BE WORTHY OF A DISCUSSION TO LOOK AT OUR ZONING AND WHAT WOULD END IN 2024, WHAT WOULD BE MOST EFFICIENT.
SO, I REALIZE THAT'S A THAT'S A SENSITIVE TOPIC, UH, BUT SOMETHING THAT WE AT LEAST NEED TO KEEP IN THE BACK OF OUR MIND THAT WE MIGHT NEED TO DISCUSS IN THE FUTURE. LET'S GET INVOLVED IN CHEERLEADER SELECTION TWO.
I MEAN, YOU KNOW, IT IS BUDGET DISCUSSION.
WALKER CREEK STANDS OUT TO ME CREEK AND.
OH YES. AND I MEANT TO TELL YOU THIS.
SO, WE LOOKED AT THOSE THERE WERE, AND YOU GOT TO THINK ABOUT IT'S VERY, THESE ARE SMALL NUMBERS.
SO, WE HAD SOME MAJOR REPAIRS WALKER CREEK, WE HAD TO REPLACE A WHOLE GATING SYSTEM.
SO, BECAUSE THESE ARE SUCH SMALL NUMBERS, IT DOESN'T TAKE A WHOLE LOT.
20, $30,000 CAN REALLY MAKE A SHIFT IN THE NUMBERS.
SO THAT'S WHY WE'RE LOOKING AT THE GENERAL TREND THOUGH.
YEAH. AND I THINK WHAT'S INTERESTING TO SEE IS WE GET DOWN HERE TO THESE LARGER CAMPUSES.
THEY'RE ALSO SOME OF OUR NEWER CAMPUSES.
SO, CHENEY HILLS, YOU CAN SEE AS WE'RE GOING DOWN STOWE IS ONE OF OUR LARGER ONES.
SMITHFIELD ELEMENTARY, YOU KNOW, WE'RE SEEING THE COST PER STUDENT NOW, WHAT WHAT'S INTERESTING.
AND YOU'LL SEE THIS WHEN YOU SEE WHAT THE DEMOGRAPHER HAS.
SOME OF THEM HAVE CAPACITY OF A COUPLE OF HUNDRED MORE STUDENTS AT CERTAIN PLACES.
NOW, THESE ARE LAST YEAR'S NUMBERS, I THINK, IF I REMEMBER CORRECTLY, NORTH OAKS AND WATAUGA HAVE ACTUALLY DROPPED IN THEIR ENROLLMENT, SO THESE NUMBERS WOULD LOOK EVEN HIGHER, I THINK IF I HAD PUT IN THESE THIS YEAR'S NUMBERS.
SO THAT'S WHY WE'RE NOT GETTING THE EFFICIENCIES WE'RE GETTING AT HALTON MIDDLE.
AND I THINK THERE WAS A TIME WHEN WE HAD MAYBE 2300 AT RICHLAND HIGH.
I THINK RICHLAND HIGH SCHOOL'S ENROLLMENT IS A LITTLE LOW FOR THEM.
SO, YOU CAN SEE WE'VE BEEN WORKING.
WE'RE TRYING TO LOOK AT EVERYTHING TO SEE WHERE WE MIGHT BE ABLE TO TRIM.
SO LET ME SHOW YOU KIND OF WHAT WE HAVE TONIGHT TO PRESENT.
SO, THIS IS OUR FINE ARTS REPLACEMENT SCHEDULE.
YOU CAN SEE THE CATEGORIES THERE ON THE LEFT THAT WE HAVE.
SO, WE HAVE THEM IN FOR THE FALL.
SO, WE HAVE CHEER UNIFORMS AT BIRDVILLE HIGH SCHOOL THAT ARE UP FOR REPLACEMENT.
SO, WE'RE PROPOSING THIS YEAR IN THE SPRING, TO DO ABOUT $90,000 IN FINE ARTS REPLACEMENTS.
AND I KNOW. I'M SORRY. THIS IS SMALL.
BARRY UPDATED THIS FOR ME, SO WE HAVE QUITE A FEW THINGS IN THE FUTURE.
YOU CAN SEE IN 25-26 THIS YEAR, WE HAVE 25,000 IN TENNIS COURTS AT RICHLAND HIGH.
I KNOW WE'RE EXPLORING A FEW OTHER THINGS AT THAT LOCATION AS WELL.
ALL RIGHT. YOU'RE SCARED OF HEIGHTS.
[00:50:02]
OR IF YOU DON'T WANT TO GO UP A WINDING STAIRCASE.YES, YOU DO. I HAD ON HIGH HEELS THE FIRST TIME I GOT UP THERE.
IT WAS A LITTLE INTIMIDATING, SO I THINK I WAS HANGING ON TO CONAN OR JOHN ONE.
I WOULD NOT HAVE WANTED TO BE IN THAT PRESS BOX LAST NIGHT.
AS A MATTER OF FACT. IS IT STILL THERE? YEAH. YES, MA'AM, I DO, UNFORTUNATELY, YES, I THINK IT'S STILL THERE.
OH, IT WAS WE COULD GET HER INSURANCE REPLACE IT.
RIGHT. ALL RIGHT. SO, WE TALKED LAST YEAR ABOUT WE'VE BEEN WORKING ON PLAYGROUND REPLACEMENTS.
SO, OUR DISTRICT STANDARDS RIGHT NOW ARE TWO ONE FOR OLDER AND ONE FOR YOUNGER STUDENTS.
CANOPIES ADA ACCESSIBILITY ARTIFICIAL TURF AND A CONCRETE BORDER.
THIS IS WHAT THE BOARD, WHAT YOU GUYS APPROVED LAST YEAR, AND WE DID OVER THE SUMMER.
SO, WE WERE ABLE TO REPLACE THE TWO AT BUNYAN AND STOWE, WHICH WERE NOT NEW.
SO, FOR THIS YEAR, WHAT WE'D LIKE TO PROPOSE IS GOING AHEAD AND ADDING THE SECOND ONE AT SPICER.
CF THOMAS HAS TWO, NORTH RIDGE TWO AND THEN WATAUGA.
THEY ALREADY HAVE ONE GOOD PLAYGROUND.
THAT'S BEEN REPLACED RELATIVELY RECENTLY, BUT THEY DON'T HAVE THE CANOPY OR THE ARTIFICIAL TURF.
SO, WE'D LIKE TO ADD THOSE PIECES IN.
SO, THE BUDGET PROJECTIONS ARE ABOUT $852,000.
WE DO HAVE THAT, UM, QUOTES FROM THE VENDORS, AND WE'D LOVE TO BRING THAT TO YOU AT THE JANUARY BOARD MEETING SO WE CAN GET ON THE MANUFACTURER'S SCHEDULE, AND WE CAN GET STARTED WHEN SCHOOL'S OUT, BECAUSE WE'D LOVE TO HAVE THOSE READY FOR THOSE SCHOOLS.
SO, KATIE, ARE YOU SAYING THAT THAT YOU WOULD LIKE TO ASK FOR APPROVAL FOR THAT AT THE JANUARY BOARD MEETING? YES, MA'AM. OKAY. DOES ANYBODY WANT TO TALK ABOUT THAT OR DO YOU? WELL, ALL I KNOW IS WHEN I WENT TO THE TWO OF THE RIBBON CUTTINGS FOR STOWE AND THEN GREEN VALLEY, THE KIDS WERE MORE THAN JUST EXCITED.
THEY WERE ECSTATIC. BUT THE MOMS AND DADS THAT WERE THERE, IT WAS KIND OF AN UPLIFTING MOMENT FOR THEM THAT, HEY, WE'RE TAKING CARE OF EVEN THE SMALL THINGS OF PLAYGROUND EQUIPMENT. SO, IT'S JUST WE'RE JUST INVESTING IN THE RIGHT THING, YOU KNOW? WE'RE INVESTING IN THE RIGHT THING.
UH, FIRST OF ALL, WHERE'S THE FUNDING OF THIS COME FROM? CAN I WAIT TILL THE COUPLE SLIDES DOWN? AND THEN SECONDLY, I REMEMBER GOING TO A RIBBON CUTTING AT CAREY THOMAS.
GOSH, WITHIN THE LAST 4 OR 5 YEARS ON A NEW PLAYGROUND.
DID YOU HEAR HIS COMMENT? THERE. AND I MAY HAVE LOST THE TIME.
IT MAY HAVE BEEN 6 OR 7 YEARS, BUT SOMETIME IN THE NOT, TOO.
WHAT THE REPLACEMENT WOULD BE, AND I DON'T THINK IT WAS COVERED.
AND IT MAY HAVE BEEN SOMETHING THAT SOME THEY USED GIFTS AND PTA MONIES TO DO SOMETHING.
I JUST REMEMBER THERE WAS SOMETHING NEW, BUT IF IT'S NOT ON PAR, IT'S NOT ON PAR.
SOME OF THOSE WERE PURCHASED BY TAS AND CHEAPEST DIDN'T ALWAYS BEST KNOWN.
SO, I HAVE TO SHOW YOU THIS BECAUSE I'M SO PROUD OF THIS.
YOU GUYS KNOW Y'ALL HAVE CHALLENGED US FOR YEARS TO REDUCE OUR FOOTPRINT OF PORTABLE BUILDINGS.
SO, THIS IS WHAT WE BROUGHT YOU IN 21.
AND SO TODAY, WHILE WE STILL HAVE FOUR AT DAVID SMITH AT THE FRANCISCO SITE, WHICH WE KNOW THOSE ARE COMING DOWN SOON, UH, WE ARE DOWN TO REALLY THREE, UH, PORTABLES OVER 30 YEARS OLD.
SO, WE HAVE TWO FITNESS PORTABLES AT THOSE TWO MIDDLE SCHOOLS.
AND THEN WE HAVE THE [INAUDIBLE].
NO, THE JROTC PORTABLE AT BIRDVILLE HIGH SCHOOL THAT WE HAVE RENOVATED THE INSIDE OF THAT PORTABLE.
BUT WE'RE DOWN. WE'VE GOTTEN RID OF ALL THOSE ARMY BARRACKS THAT WE HAD FOR SO LONG.
UM, WE DO HAVE UM, YOU CAN SEE FIVE PORTABLES THAT ARE TEN YEARS OR LESS.
AND THEN WE HAVE OUR MODULARS.
IT'S AN EIGHT CLASSROOM, I BELIEVE.
[00:55:04]
WE INITIALLY PUT THOSE SCIENCE MODULARS THERE, AND WE'VE MOVED A LOT MORE.UM, AND IT'S A WALK ACROSS A LITTLE DRIVE AND THAT TYPE OF THING.
BUT WE'VE MADE SIGNIFICANT PROGRESS IN REDUCING OUR FOOTPRINT OF THOSE OLD PORTABLES.
MAKE IT QUICK. BUT DO YOU REMEMBER WHEN WE WERE GOING UP TO TARGET TO GET THEM TO HELP US ON THAT? YES. OH, I REMEMBER THE CITY COUNCIL KICKED IT TO THE COMMISSION AND THEN WE WEREN'T GETTING A LOT OF TRACTION UNTIL THE HEAD OF THE COMMISSION RECALLED.
HE HAD BEEN IN A VERY DILAPIDATED PORTABLE BUILDING.
YEAH. HE'S LIKE NO, NO, WE'RE GOING TO PUT IT IN A NICE ROOM FOR THESE KIDS.
SO, MAYBE WE NEED TO KEEP A FEW BAD ONES AROUND.
IT DOESN'T LOOK LIKE YOU'RE GETTING A PORTABLE.
LIKE WHAT, THE MODULARS AT HALTOM OR WHAT YOU HAVE AT NORTH OAKS.
SO PURCHASING IS PROPOSING SOME REPLACEMENT OF STUDENT DESK AND CHAIRS AT MULTIPLE CAMPUSES.
SO JUST TO GIVE YOU AN EXAMPLE, NORTHRIDGE ELEMENTARY STILL HAS THE ORIGINAL FURNITURE FROM 1986.
BUT WE'D LIKE TO CONTINUE TRYING TO GET NEW CLASSROOM FURNITURE INTO SOME OF THOSE CLASSROOMS. WE'VE BEEN SLOWLY REPLACING THE OLD LIBRARY FURNITURE AT THE CAMPUSES AS WELL.
AND SO, I KNOW THEY HAVE THREE CAMPUSES THIS YEAR THAT THEY WOULD LIKE TO WORK ON.
WE'RE MOVING AWAY FROM THE OLD HEAVY WOODEN CHAIRS AND DESK THAT WE'VE HAD WHERE THE LITTLE ELEMENTARY STUDENTS CAN'T EVEN MOVE THE CHAIRS AND MOVING TO THE SOFT SEATING AND LIKE SOME OF THE LITTLE COLLABORATION AREAS.
SO, I KNOW THEY'VE BEEN SLOWLY TRYING TO WORK THROUGH THE CAMPUSES.
AND THEN WE HAVE FIVE CAMPUSES FOR CAFETERIA FURNITURE.
AND THANKFULLY, WE DO HAVE AN EXCESS OF FUNDS IN THE CHILD NUTRITION FUND THAT WE HAVE TO SPEND.
WE'RE ONLY ALLOWED TO KEEP THREE MONTHS OF OPERATING EXPENSES.
SO, ONE OF THE PROJECTS SHE'S PUT ASIDE IS TO HELP US BUY CAFETERIA FURNITURE.
WE ARE WORKING WHERE WE'RE TRYING TO WORK WITH THE TENANT AT BECHTEL.
WE DON'T HAVE A MARQUEE AT BECHTEL.
THERE'S SOME VERY STRICT SIGN REQUIREMENTS AND SIZES WITH THE CITY.
AND SO, WE HAVE BEEN TOLD THAT WE CAN'T PUT TWO MARQUEES OUT IN THE FRONT.
SO, WE THOUGHT WE MIGHT WORK WITH THEM AND HAVE THE, YOU KNOW, THE BIRDVILLE PORTION AS THE PROMINENT PIECE AND THEN HAVE THEM AS, AS A PIECE ON THERE, LIKE YOU WOULD LIKE A TENANT BECAUSE THEY ARE A TENANT.
WE, JOHN IS REQUESTING WE GOT A QUOTE FOR $50,000 FOR AN ASBESTOS INSPECTION.
WHAT WE WANT TO BE ABLE TO DO IS IDENTIFY CMA, CMU AND SHEETROCK WHERE WE ACTUALLY HAVE ASBESTOS SO THAT WHEN WE HAVE A REPAIR OR SOME KIND OF DAMAGE OR SOMETHING WE HAVE TO DO, WE DON'T HAVE TO CALL IN AN ASBESTOS INSPECTOR.
BUT WE'D LIKE THE INSPECTOR TO COME OUT AND FINISH REVIEWING THE FACILITIES.
SO, WE HAVE THAT ALREADY IDENTIFIED IN CASE WE HAVE SOMETHING THAT WE HAVE TO DO AT THE CAMPUS.
SO THAT'S WHAT JOHN IS ASKING FOR A ONETIME EXPENSE.
WE'VE BEEN HAVING COMPLAINTS FROM CAMPUSES.
[01:00:08]
AND NOW THAT WE HAVE LED THAT WE CAN STILL SAVE MONEY ON.HOW MANY CAMPUSES DO YOU REMEMBER, JOHN? I'M GOING TO SAY IT'S IN THE TEN RANGE, SOMETHING LIKE.
THERE ARE JUST AREAS ON THE CAMPUSES.
BUT THERE ARE JUST SOME, YOU KNOW, DARK AREAS THAT JUST THERE WAS NEVER LIGHTING THERE TO COVER IT.
YEAH. AND AS WE CONTINUE TO WORK ON SAFETY, THAT'S AN AREA WE'D LIKE TO WE'D LIKE TO APPROACH.
I THINK IT BECOMES A CONVERSATION THIS TIME OF THE YEAR WHEN IT GETS DARK EARLY.
WHATEVER THAT WAS. SO WITH THE BOND AND THE ADDITIONAL BUSSES WE'VE ORDERED, WHICH NOW ARE GETTING PUSHED TO THE SUMMER, WE ARE GOING TO HAVE TO HAVE SOME ADDITIONAL BUS PARKING.
SO, WHAT WE'RE PROPOSING IS UP AT THE FACILITIES AREA WHERE WE HAVE THE WHOLE FENCED IN AREA WITH THE WHITE FLEET, MOVING THE WHITE FLEET OUT TO THE GRASSY AREA AND PUTTING AN ASPHALT, WHICH THE COUNTY CAN DO AT JUST THE COST OF THEIR MATERIALS.
AND THEN WE'LL PUT IN A GATE SYSTEM AND PUT THE SMALL A LOT OF THE SMALL BUSSES THERE.
THEY'LL HAVE A GATE THAT'S, YOU KNOW, BADGE ACCESS SO THEY CAN GET IN AND OUT, BUT THIS WILL IF WE APPROVE IT THIS SPRING, THEN IT WILL GIVE US PLENTY OF TIME TO GET THOSE ARRANGEMENTS TAKEN CARE OF BEFORE THOSE BUSSES ARRIVE THIS SUMMER.
AND THEN THIS IS NOT FOR TONIGHT, BUT JUST LETTING YOU KNOW, AS SINCE WE'RE TALKING ABOUT THE FULL CAPITAL PROJECTS, I NEEDED TO REMIND YOU THAT WE WILL HAVE SOME BOND FUNDS LEFT OVER IN THE 22 BONDS.
SO, WHAT WE'D LIKE TO DO AT SOME POINT IS WORK WITH YOU ON BRINGING MAYBE SOME MORE IMPROVEMENTS AROUND THE DISTRICT, BUT JUST THIS PART OF THIS FULL CAPITAL PROJECTS, JUST REMINDING YOU WE WILL HAVE SOME OPPORTUNITIES TO TAKE CARE OF SOME THINGS.
IT'S NOT GOING TO BE ENOUGH. BUT YEAH.
AND THEN WE MAY HAVE A FEW OTHER ONE-TIME PROJECTS DURING THE BUDGET PROCESS.
WE'VE TRIED TO, AS WE TOLD YOU LAST YEAR, WE REALLY WANTED TO BRING THIS SEPARATELY TO YOU AND THEN NOT HAVE TO WORRY ABOUT THE ONE-TIME PROJECTS LATER IN THE SPRING, BUT YOU NEVER KNOW WHEN SOMETHING'S GOING TO POP UP, SO WE DON'T EXPECT THAT TO HAPPEN.
BUT IT COULD. SO JUST TO SUMMARY, THE FINE ARTS, THE ATHLETICS, THE PLAYGROUNDS, THE FURNITURE AND THEN THE OTHER PROJECTS IS JUST UNDER $2 MILLION.
WE KNOW WE'LL HAVE MORE FUNDS.
WE HAVE BEEN TRACKING OUR, UM, UH, VACANCY MONEY.
AND SO WE KNOW WE HAVE ABOUT $1 MILLION AS WELL FROM THE FALL, UH, IN VACANCY FUNDS THAT ARE, UM, PROBABLY GOING TO BE LEFT OVER CAFETERIA FURNITURE, AND THE SERVING LINES WILL BE WITH EXCESS CHILD NUTRITION FUNDS.
WE'D LIKE TO BRING THE PLAYGROUNDS TO THE JANUARY BOARD MEETING FOR CONSIDERATION SO WE CAN GET THE CONTRACTORS RESERVING OUR AREA, OUR TIME IN THE MANUFACTURERS AT THIS SPRING SO WE CAN GET STARTED ON THOSE IN JUNE AND THEN ANY OTHER PROJECTS, ONCE WE GET THE BOARD IS GOOD WITH THOSE, WE'LL START WORKING ON QUOTES OR BIDS AND BRING THOSE LATER IN THE SPRING.
SO, WITH THIS, $2 MILLION REDUCED THAT.
IF THE BOARD WANTS TO MOVE IN THIS DIRECTION.
BUT WITH SAVINGS, WE WOULD ADD ANOTHER TWO AND A HALF.
BUT THERE'LL BE SOME OTHER UNSPENT.
[01:05:02]
PROBABLY A MILLION IN UNSPENT POSITIONS CURRENTLY THAT THAT WE JUST EITHER DIDN'T FILL THIS YEAR.I CAN'T BELIEVE I'M SAYING THIS, BUT I COULDN'T ASK FOR MUCH.
AND WE'VE NOT ALLOWED DAVE TO PARTICIPATE.
AND BUT AND IN FULL TRANSPARENCY, WE.
THIS IS THE BEGINNING OF OUR TIGHTENING OUR BELT.
AND WE KNOW THAT, YOU KNOW, IT'S OUR GOAL TO GET THAT DEFICIT TO LITTLE TO NONE.
AND, YOU KNOW, I THINK THAT WE'VE BEEN VERY COGNIZANT OF, OF ONLY ASKING FOR WHAT WE NEED.
NO. SO. WELL, WE HAVE A LOT WE HAVE A LOT MORE ON THE LIST.
BUT WE HAVE TRIED A LOT OF ONE-TIME PROJECTS THE LAST FIVE YEARS.
THAT'S RIGHT. YOU GUYS HAVE BEEN WONDERFUL TO LET US.
AND A LOT OF THEM WERE FOR SAFETY REASONS.
THAT'S RIGHT. DRAINAGE ISSUES, FURNITURE, CAFETERIA.
I MEAN, YOU'VE LET US DO A LOT AND A LOT OF DIFFERENT.
APPRECIATE IT. YOU MENTIONED EARLIER THAT THE BUSSES THAT WE HAD ON ORDER OR GOT PUSHED BACK, I MEAN, JUST SUMMER, THEY'RE HAVING A REALLY HARD TIME GETTING BUSSES OUT, GETTING ALL THE PARTS AND THAT KIND OF THING.
WE WERE SUPPOSED TO GET THEM IN DECEMBER.
AND SHE SAID SHE GOT A CALL LAST WEEK AND THEY SAID IT MAY BE JUNE.
IT'S JUST, I MEAN, WE'RE GETTING LIKE SEVEN.
THERE WERE NINE REGULAR BUSSES AND THEN THERE WERE SOME SPECIAL ED BUSSES AS WELL.
SO, WE'RE WAITING ON BOTH OF THOSE.
SO. ALL RIGHT, ONE LAST TOPIC.
OKAY, GOOD. I THINK I'VE MENTIONED THIS.
THIS IS NOT SPECIFIC TO THAT, BUT.
WE'VE DONE A GREAT JOB AT RICHMOND BASEBALL.
JUST NEVER TALKED ABOUT THAT PART.
WE DON'T DO ANYTHING ABOUT IT.
IT'S RIDICULOUS TO HAVE THOSE NICE GIRLS AND WE USED TO BACK WHERE I WAS FROM.
WE WERE JUST GOING OUT TO FARM SOMEWHERE.
DO YOU WANT US TO GO BACK TO THAT OWNER OF THAT PROPERTY AND SEE IF WE CAN RENEGOTIATE THAT PROPERTY? I'M NOT SAYING YOU, BUT I THINK SOMEBODY NEEDS TO TAKE THE BULL BY.
APPOINTMENTS WILL BE RESOLVED AT SOME POINT AND THEN.
WE HAD DISCUSSIONS ON A BOARD LEVEL, BUT COMMITTEE LEVEL WITH FORMER AD AND REALLY NOT TOLD.
WE KIND OF SAID, HEY, DO YOU NEED TO DO ANYTHING? BECAUSE COACH TUCKER LIKES PLAYING DOWN THERE.
AND I DIDN'T REALIZE THAT THAT'S WRONG WITH THE EIGHT LANES, BUT WE HAD ASKED THAT ONE.
HEY, DO YOU NEED SOME HELP DOWN THERE? YOU KNOW SOMEBODY? YOU JUST NEVER KNOW WHAT IF, FOR WHATEVER REASON.
SO MAYBE WHEN WE START FIGURING OUT, THAT'D BE GREAT.
NO, I JUST WAYS TO ADDRESS IT.
I MEAN, I THOUGHT PART OF PART OF THE DISCUSSION WAS, IS ONCE YOU START MESSING.
THAT'S CORRECT. EVERYTHING'S GOT TO BE ADA.
THAT'S CORRECT. SO THAT'S COVERED ON THE RESTROOMS. IT'S COVERED ON FROM THE UPPER LEVEL WITH THE LIFT THAT WE PUT IN TEN YEARS AGO DOWN TO THE TRACK SURFACE.
WELL, BUT A LOT OF THOSE PRESS BOXES NOW ARE MODULAR.
NOW, WE STILL GOT TO GET AN ELEVATOR THERE.
THERE'S NO WAY AROUND IT RENTING AN ELEVATOR THERE.
WE DID SOME FENCING FOR SOME SAFETY ISSUES.
AND WE DID SOME PATCHING BECAUSE WE FOUND HOLES IN SOME OF THE FLOORS WHERE THE SEATS WERE.
BUT IT WAS GOING TO TRIGGER ALL KINDS OF THINGS IF WE WENT OUT AND EXPANDED THAT TRACK.
BUT CERTAINLY, THAT'S SOMETHING WE CAN EXPLORE AGAIN.
YEAH. THE ASPHALT FROM WHAT? WHAT JOHN'S TOLD ME IS THE BUSSES TEAR UP THE ASPHALT.
SO THAT'S WHY WE WERE GOING TO USE THE CONCRETE WHERE THE WHITE FLEET IS.
NO, I MEAN, AGAIN, BACK TO BASEBALL.
OH, OKAY. I JUST THINK SOME CREATIVITY NEEDS TO GO IN, OKAY.
TO MATCH WHAT WE'VE DONE ON THAT.
OKAY. WE WILL DEFINITELY LOOK INTO THAT.
IF YOU REMEMBER, WE DID HAVE A MARK.
WOOD HELPED US WITH THAT PIECE OF LAND WHERE EVERYBODY PARKS.
[01:10:02]
THEY WANTED $100,000 FOR IT.I MEAN, WE CAN CERTAINLY GO BACK.
WOULD YOU LIKE ME TO GO BACK AND GET MARK TO TALK TO THEM AGAIN? WHAT I'M THINKING IS HE'S NOT MOVING THAT PROPERTY AND WE'D HAVE TO SEE THE TERMS OF IT.
AND WE JUST IF THE COUNTY OR IF HIS PRICE HAS GONE DOWN ON WHAT HE WANTS TO SELL IT FOR.
RIGHT. OKAY. AND IF WE COULD GET THE COUNTY TO GO IN AND THROW SOME ASPHALT.
I'LL GET MARK TO REACH BACK OUT TO THEM.
SO, THERE'S THERE MAY BE ANOTHER PIECE OF IT, BECAUSE I REMEMBER LOOKING AT THAT.
AND I HAVE TO I DON'T HAVE THE MAP RIGHT CLEAR IN MY HEAD, BUT THERE IS A LITTLE SPACE.
BUT WE DO NEED MORE BECAUSE PEOPLE PARK OUT THERE ANYWAY.
SO. YES, SIR. WE'LL DEFINITELY LOOK INTO THAT.
WILL YOU PUT THAT DOWN ON THE LIST, PLEASE? OKAY. ARBITRAGE.
SO, AS I THINK I'VE MENTIONED TO YOU GUYS, ARBITRAGE, UM, PREVENTS US FROM BASICALLY INVESTING OUR BOND PROCEEDS AT AN INTEREST RATE HIGHER THAN WHAT WE'RE PAYING OUT TO BOND HOLDERS.
THAT'S BASICALLY, UM, THEY DON'T WANT YOU TO MAKE MONEY OFF OF IT.
SO, YOU CAN SEE HOW THAT RISE IN INTEREST RATES HAS CREATED AN ARBITRAGE PROBLEM.
IN FACT, I THINK OUR ARBITRAGE PEOPLE DIDN'T HAVE A WHOLE LOT OF WORK TO DO.
AND SO, THE IRS PAYMENT WILL BE DUE FIVE YEARS AFTER THE ISSUANCE OF THE BONDS.
SO WE'VE BEEN WORKING WITH OUR ARBITRAGE PEOPLE.
AND SO THEY'VE GIVEN US SOME PRELIMINARY CALCULATIONS THROUGH AUGUST.
AND SO WE'RE IN THE PROCESS NOW OF SEPARATING OUT AND THERE'S ONLY THREE BOND ISSUANCES WE REALLY HAVE TO WORRY ABOUT, BUT REALLY TRYING TO PULL OUT EACH MONTH THE INTEREST SEPARATES OUT THE LIABILITY PORTION AND THE AMOUNT THAT WE ACTUALLY HAVE AVAILABLE TO YOU FOR OTHER PROJECTS.
SO, ALL ISSUANCES PRIOR TO 2020 WERE GOOD.
THERE'S GOING TO BE NO REBATE BECAUSE THERE WAS SUCH A NEGATIVE REBATE AT THAT TIME, BECAUSE INTEREST RATES WERE SO FAR BELOW WHAT OUR BOND RATES WERE, WE WERE IN GOOD SHAPE. 2020 THE BOND INTEREST RATE WAS 1.893%.
SO, WE WILL AT THE TIME THEY DID THIS CALCULATION IN AUGUST, WE HAD A NEGATIVE REBATE.
SO, WE'LL BE WORKING WITH THEM ON THAT.
SOME OF THOSE FUNDS ARE THE LEFTOVER THAT WE'RE HOPING TO UTILIZE AS WE'RE CONTINUING TO WORK ON THIS BUILDING, ACTUALLY, UH, THE CONTINUED EXPANSION OF THIS BUILDING. 2021.
YOU CAN SEE THIS IS PROBABLY THE BIGGEST ONE.
THAT'S A PROBLEM BECAUSE AT THE TIME WE ISSUED THOSE BONDS, RATES WERE REALLY LOW.
SO, WE GOT A WONDERFUL INTEREST RATE FOR OUR DEBT SERVICE FUND.
BUT UNFORTUNATELY, RATES ARE SO HIGH NOW.
UM, WE'RE GOING TO OWE QUITE A BIT ON THAT.
I THINK OUR CURRENT LIABILITY IS IN AUGUST WAS ABOUT $460,000.
SO, WE'LL START WORKING THROUGH THAT TO SPLIT THOSE LIABILITIES AWAY FROM WHAT WE CAN SPEND.
KATIE, WILL THAT COME DOWN? BOND RATES. THE LAST 60 DAYS HAVE DROPPED QUITE A BIT.
THE FURTHER WILL THAT COME DOWN? OR IS IT? NO, THIS IS A THIS IS OUR FIXED RATE WHEN WE ISSUED OUR BONDS I KNOW, I KNOW, BUT THEY'RE COMPARED TO THE RATES THAT WE HAVE NOW.
WHAT WE'RE EARNING, WHAT WE'RE EARNING.
AND THEN YOU PAY THE NEGATIVE REBATE TO THE IRS.
YES SIR. YEAH, THE POSITIVE REBATE.
SO, AS THE PROBLEM IS UNLESS WE ARE EARNINGS RATE GETS DOWN TO 0.7978 OR BELOW IT.
WE'RE NOT GOING TO WE'RE GOING TO HAVE POSITIVE ARBITRAGE ON THAT.
THAT'S RIGHT. IT WILL HELP US.
THE OTHER THING THAT WE'RE LOOKING INTO.
SO, IF WE BUY MUNICIPAL BONDS, UH, IT IS EXCLUDED FROM ARBITRAGE.
BUT THE RATES ON THOSE ARE REALLY BAD.
SO, I, YOU KNOW, ON THIS ONE WE'RE GOING TO BE USING THE FUNDS PROBABLY.
SO, IT JUST DOESN'T MAKE SENSE.
AS WE WERE TALKING TO OUR FINANCIAL ADVISOR TO BUY THOSE, THERE'S ANOTHER FUND WE'RE LOOKING AT UM, THAT HAS BEEN RECOMMENDED THAT WE CAN THAT HAS A PRETTY POSITIVE CASH FLOW COMING IN AND OUT. SO, WE MAY BE BRINGING SOME NEW INVESTMENTS TO YOU, UH, AT THE ADVICE OF OUR FINANCIAL ADVISOR, THAT WE MIGHT CAN PUT THOSE MONIES IN TEMPORARILY AT LEAST
[01:15:01]
STOP, AS I SAY, STOP THE BLEEDING.SO THAT'S WHAT WE'RE INVESTIGATING RIGHT NOW.
AND THEN, YOU KNOW, PRUDENT SPENDING.
THAT'S RIGHT. THE SOONER WE SPEND, THE BETTER.
YES, YES. CAN YOU EXPLAIN THAT A LITTLE BIT MORE? THE SOONER WE SPEND THE BOND MONEY, THE BETTER.
SO, THEN YOU'RE NOT GENERATING, UH, ARBITRAGE.
SO, THE ONLY IT'S CALCULATED, THE ARBITRAGE IS BEING CALCULATED.
IT'S KIND OF LIKE HAVING A LOAN.
AND YOU'RE NOT MAKING PAYMENTS ON IT, SO IT'S ROLLING IN.
SO, THE ARBITRAGE IS BASED ON THE UNSPENT BOND PROCEEDS AND THEN ALSO THE INTEREST WE'RE EARNING ON THE AMOUNT WE OWE ON THE ARBITRAGE IS ADDING EVEN MORE IN.
YES, THE SOONER WE SPEND IT, THEN THAT ARBITRAGE WILL STOP SO AND GET US FROZEN IN.
BUT THAT RATES SO LOW WE CAN'T GENERATE MUCH INTEREST ON THOSE BONDS.
I MEAN, THAT'S THE HIGHEST INTEREST RATE THAT WE CAN EARN WITHOUT HAVING POSITIVE ARBITRAGE.
SO RIGHT NOW, THOUGH, BECAUSE THAT RATE, WHAT WE'VE BEEN EARNING IS OVER 5%.
SO, WE HAD A POSITIVE ARBITRAGE CALCULATION IN AUGUST OF ABOUT 800,000.
BUT WE'RE EARNING A LOT OF MONEY ON THOSE BONDS.
SO, WE'RE GOING TO GET TO KEEP A LOT OF MONEY.
BUT WE'RE ALSO GOING TO HAVE SOME POSITIVE ARBITRAGE.
SO, THESE ARE ACTUALLY THE FUNDS WE'RE LOOKING AT IF WE CAN GET INTO THAT OTHER INVESTMENT AND WE CAN EARN SIMILAR TO WHAT WE HAVE THERE, THEN IT WOULD MAKE SENSE BECAUSE THEN WE WOULD GET TO KEEP ALL OF THE MONEY.
YES. SO WE'LL BE WORKING ON THAT.
AND I'LL GIVE YOU A REPORT IN THE NEXT MONTH OR SO JUST TO KIND OF SHOW YOU WHERE WE ARE.
HERE'S WHAT WE HAVE LEFT OVER.
HERE'S OUR ARBITRAGE LIABILITY.
AND HERE'S WHAT YOU HAVE INTEREST EARNINGS TO SPEND.
LISTEN TO THAT. BUT, YOU KNOW, YOU HEAR PEOPLE SAY, OH, YOU CAN GIVE ME $100,000 BONUS.
THINK OF ALL THE TAXES ON THAT.
YOU'RE LIKE, YEAH, BUT YOU'RE STILL GOING TO TAKE $70,000.
SO, IS THIS ARBITRAGE JUST TAKING A PERCENTAGE OF IT OR IS IT MORE PUNITIVE THAN THAT? IT'S A LITTLE MORE PUNITIVE BECAUSE THEY PRESENT VALUE, LIKE IF I OWE $100,000 OF ARBITRAGE TODAY, BUT I DON'T PAY IT UNTIL THE IRS, YOU KNOW, A YEAR OUT, THEN THEY PRESENT VALUE IT BASED ON CURRENT RATES.
SO, THERE'S A LITTLE BIT OF A PUNITIVE.
BUT IN MY MIND, I'M THE SAME WAY.
EXACTLY. YOU'RE COMING OUT AHEAD.
WHEN YOU SAY WHEN YOU SPEND MONEY FASTER.
UNDERSTOOD. I HEAR WHAT YOU'RE SAYING.
YEAH. YOU'RE STILL? WE ARE IN GOOD SHAPE BECAUSE THESE INTEREST RATES WITH THE OLDER BONDS, WE HAD SO MUCH NEGATIVE ARBITRAGE BECAUSE RATES WERE AT 1.01 FOR SO LONG THAT WE'RE GOING TO BE ABLE TO KEEP QUITE A BIT OF THAT INTEREST.
BUT AS LONG AS YOU ACCOUNT FOR WHAT YOU HAVE TO PAY.
THAT'S RIGHT, THAT'S RIGHT, THAT'S RIGHT.
WE JUST WANT TO BE ABLE TO TRACK IT.
SO, YOU GUYS KNOW HOW MUCH ADDITIONAL FUNDS YOU HAVE FOR THESE OTHER PROJECTS.
SO, QUESTIONS FOR KATIE OR FOR DOCTOR STINSON.
SO ARE WE GOOD TO GO FORWARD WITH THE PLAYGROUNDS THIS MONTH.
YOU WON'T HAVE ANY QUESTIONS TO 1.9 MILLION.
METHODICALLY. THE FIRST ONE IS GOING TO BE PLAYGROUND.
RIGHT. AND SO THAT'S BEEN OUR STANDARD.
AND THE BORDER, I ASKED, IS THERE TO HOLD THE ASTROTURF? RIGHT. SO ONCE AGAIN, THANK YOU FOR THIS.
ISN'T THAT AMAZING? SHE HAD AN EMPLOYEE IN HER DEPARTMENT, AARON AND WE'LL RECOGNIZE HER AT THE BOARD MEETING.
SHE, MISSY, GAVE HER REALLY NOT EVEN TO DO THIS YEAR, BUT TO EXPLORE IT.
AND SHE JUST TOOK IT AND RAN WITH IT.
AND THEN WHEN YOU GET WHEN YOU IF YOU SOME OF YOU WERE HERE WHEN WE USED TO DO THE ASBO AND THE GFOA BOOKLET AND IT'S GOT GREAT INFORMATION THAT YOU CAN, IT'S REALLY THERE FOR A BOARD MEMBER TO HAVE IT AT THEIR FINGERTIPS ABOUT.
IF YOU WANT TO KNOW SOMETHING ABOUT A CAMPUS, IT'S RIGHT THERE.
GOOD JOB. ANY OTHER QUESTIONS REGARDING THIS? BEFORE I ASK THE BOARD A QUESTION.
AND WE PUT WE SET ASIDE $34.5 MILLION BEFORE AND WE HAVE A SPECIAL PROJECTS FUND.
YOU MENTIONED SOMETHING LIKE PRESS BOX PARKING LOT.
[01:20:01]
WE TALKED ABOUT A TRANSPORTATION CENTER, THINGS OF THAT NATURE.WOULD THE BOARD BE THINKING ABOUT IT IN THE NEXT COUPLE OF WEEKS, IF IT'S APPROPRIATE THAT WE SET UP A SMALL SUBCOMMITTEE, START WORKING ABOUT WHAT WE CAN, HOW WE CAN PRIORITIZE THAT 34 MILLION BECAUSE IT'S FOR SPECIAL PROJECTS AND SEE WHAT DIRECTION WE CAN GO ON THAT.
YEAH, YEAH. SO, TALK TO ME IN THE NEXT COUPLE OF WEEKS.
IF THERE'S INTEREST, THEN WE, THE BOARD SUBCOMMITTEE CAN GET SOME PRIORITIES DOWN.
HERE'S HOW WE CAN DO IT, WHETHER IT BE PRESS BOX, TRANSPORTATION, SOMETHING EVEN TALKED ABOUT YET.
BUT SPECIAL PROJECTS THAT WE CAN DO WITH THAT FUND, WE CONTROL IT.
IT MAY BE SOME KIND OF A CLUMP OF GRASS ON.
KIND OF HOW MUCH WE WOULD WANT TO LOOK AT EACH YEAR.
I MEAN, IF YOU SPENT 5 MILLION A YEAR, THAT'S SEVEN YEARS' WORTH OF STUFF TO DO.
SO, THERE MAY BE SOME BIG THINGS WE HADN'T THOUGHT OF, BUT I'M SAYING LET STAFF COME TO A SUBCOMMITTEE OF THE BOARD, BOUNCE IT OFF, CHEW IT UP, SPIT IT OUT, TALK ABOUT IT SOME MORE, THEN BRING A RECOMMENDATION TO US AS A WHOLE.
AND I'M THINKING OUT LOUD HERE AGAIN THAT YEAR.
ONE WE'RE GOING TO DO THIS YEAR.
TWO, WE'RE GOING TO DO THIS YEAR THREE BUT KEEP IT A ROLLING THREE-YEAR PLAN OUT IN FRONT OF US.
BETWEEN NOW AND OUR BOARD MEETING, CALL ME.
TALK TO ME ABOUT IT. WE'LL TALK ABOUT THAT OR NOT.
BUT WE PROBABLY WILL PROBABLY PUT SOMETHING ON THE AGENDA AS FAR AS AN APPOINTING.
I'LL HAVE TO PUT ON THE AGENDA, I GUESS.
WILL YOU DO IT TO APPOINT A SUBCOMMITTEE? WE'LL JUST DO IT. WE'LL TALK ABOUT IT AMONGST OURSELVES.
BUT PLEASE TALK TO ME ABOUT IT.
BUT I THINK WE NEED TO LOOK AT HOW CAN WE SPEND THAT MONEY.
OTHERWISE, DR. CLARK'S WILL START ASKING FOR IT.
YEAH. OUR REGULAR BOARD MEETING WILL BE HELD THURSDAY, JANUARY 25TH IN THE AD BUILDING BOARD ROOM.
[H. FUTURE BOARD MEETINGS]
OPEN SESSION WILL BEGIN AT 7 P.M.AS WE HAVE NO FURTHER BUSINESS.
DO I HEAR A MOTION TO ADJOURN THIS MEETING? SO MOVED. MR. TOLBERT MADE A MOTION SECOND.
ALL IN FAVOR, STAND UP AND GO HOME.
MEETING ADJOURNED AT 8:22.
* This transcript was compiled from uncorrected Closed Captioning.