Jun 12, 2025 School Board Meeting- Special Meeting

[00:00:01]

I CALL THIS SPECIAL MEETING OF THE CARROLLTON FARMERS BRANCH ISD BOARD OF TRUSTEES TO ORDER AT 6:00 PM ON JUNE 12TH,

[1. Call to Order]

THE BOARD USES THIS GOAL AND TO GUIDE ALL DELIBERATIONS, DECISIONS AND ACTIONS.

YOU WILL GET TO SEE ALL DELIBERATIONS, DECISIONS AND ACTIONS OF THE BOARD IN OPEN SESSION, WITH THE EXCEPTION OF A FEW ITEMS WHICH MAY BE DISCUSSED IN CLOSED SESSION, WHICH ARE NOT ON OUR AGENDA TONIGHT.

FOR THE RECORD. BOARD MEMBERS PRESENT ARE KIM BRADY, MARJORIE BARNES, CAROLYN BENAVIDES, PAUL GILMORE, RANDY SHAKMAN, AND MYSELF, CASSANDRA HATFIELD.

WE CONSTITUTE A QUORUM AND MAY CONDUCT BUSINESS ON BEHALF OF THE DISTRICT.

OUR NEXT ITEM IS AUDIENCE FOR GUESTS. PERSONS WHO WISH TO SPEAK DURING THE AUDIENCE FOR GUESTS MUST HAVE ELECTRONICALLY, ELECTRONICALLY SUBMITTED AN ONLINE FORM BY 1:00 TODAY, AND WE DO NOT HAVE ANY REQUEST TO SPEAK TO THE BOARD THIS EVENING.

OUR NEXT AGENDA ITEM IS ITEM NUMBER THREE, WHICH IS CONSIDERATION AND APPROVAL OF AN ORDER AUTHORIZING THE ISSUANCE OF CARROLLTON FARMERS BRANCH INDEPENDENT

[3. Consideration and Approval of an Order Authorizing the Issuance by the Carrollton-Farmers Branch Independent School District if its Unlimited Tax School Building and/or Refunding Bonds in One or More Series (as Designated by Purpose and Series); Levying a Continuing Direct Annual Ad Valorem Tax for the Payment of One or More Series of Bonds; Prescribing the Form, Terms, Conditions, and Resolving Other Matters Incident and Related to the Issuance, Sale, and Delivery of One or More Series of Bonds, Including the Approval and Distribution of One or More Official Statements Pertaining Thereto; Authorizing the Execution of One or More Paying Agents/Registrar Agreements, and Purchase Contracts Each Pertaining to a Series of Bonds; Complying with the Letter of Representations on File with the Depository Trust Company; Delegating the Authority of Certain Members of the Board of Trustees and District Staff to Approve and Execute Certain Documents Relating to the Sale of Each Series of Bonds; and Providing an Effective Date]

PRESCRIBING THE FORM, TERMS, CONDITIONS AND RESOLVING OTHER MATTERS.

INDECENT INCIDENT, SORRY INCIDENT AND RELATED TO THE ISSUANCE, SALES AND DELIVERY OF ONE OR MORE SERIES OF BONDS, INCLUDING THE APPROVAL AND DISTRIBUTION OF ONE OR MORE OFFICIAL STATEMENTS PERTAINING THERETO.

AUTHORIZING THE EXECUTION OF ONE OR MORE PAYING AGENTS, REGISTRAR AGREEMENTS, AND PURCHASING CONTRACTS FOR EACH PERTAINING TO A SERIES OF BONDS.

COMPLYING WITH THE LETTER OF REPRESENTATIONS ON THE FILE, WITH THE DEPOSITORY TRUST COMPANY.

DELEGATING THE AUTHORITY OF CERTAIN MEMBERS OF THE BOARD OF TRUSTEES AND DISTRICT STAFF TO APPROVE AND EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF EACH SERIES OF BONDS AND PROVIDING AN EFFECTIVE DATE. AT THIS TIME, I'LL HAND IT OVER TO MISS.

HE'S AND DOCTOR ELDRIDGE. TONIGHT I WANT TO TALK A LITTLE BIT ABOUT BOND ELECTIONS, BOND ISSUANCES AND BOND PROJECTS.

YOU KNOW, BOND ELECTIONS ARE SIMILAR TO A HOME MORTGAGE.

IT'S A CONTRACT TO REPAY BORROWED MONEY WITH INTEREST OVER TIME.

BONDS ARE SOLD BY SCHOOL DISTRICTS TO COMPETING LENDERS TO RAISE FUNDS TO PAY FOR THE COSTS OF CONSTRUCTION, RENOVATIONS AND EQUIPMENT. ALL SCHOOL DISTRICTS IN TEXAS UTILIZE BONDS TO FINANCE RENOVATIONS AND NEW FACILITIES.

BOND FUNDS CAN BE USED FOR NEW BUILDINGS, ADDITIONS, RENOVATIONS, OR EXISTING FACILITIES, LAND ACQUISITION TECHNOLOGY, INFRASTRUCTURE AND EQUIPMENT FOR NEW OR EXISTING BUILDINGS.

BUT BONDS CANNOT BE USED FOR SALARIES. UP OPERATING COSTS LIKE UTILITY BILLS, SUPPLIES, BUILDING MAINTENANCE, FUEL AND INSURANCE. AND SO WE'RE VERY WELL VERSED IN THE IN, IN BOND ELECTIONS BECAUSE WE WERE SO GRATEFULLY AUTHORIZED BY VOTERS IN MAY OF 2023 FOR 716 AND SOME CHANGE MILLION DOLLARS.

AND, YOU KNOW, WE JUST WANT TO TALK A LITTLE BIT ABOUT HOW WE GOT HERE TODAY.

IN JULY OF 2023, THE DISTRICT MADE A STRATEGIC FINANCING DECISION TO TAKE ADVANTAGE OF ADDITIONAL STATE AID FROM A HOMESTEAD EXEMPTION IN THE 88TH LEGISLATIVE SESSION, WHEN THE EXEMPTION INCREASED $60,000.

AND SO WE PUT THAT MONEY TO WORK RIGHT AWAY. THE OVERSIGHT COMMITTEE WAS CONVENED, MASTER PLANNING BEGAN.

WE SAW PRESENTATIONS, WE HAD CONSTRUCTION STARTING.

AND THEN IN FEBRUARY OF THIS YEAR, THE 89TH LEGISLATURE BEGAN, AND WE WERE STILL BUSY HERE IN CFB ISD.

THE DISTRICT MADE A VERY TOUGH CONSOLIDATION DECISION IN MARCH.

AND AND ALL ALONG, WE'RE PUTTING THOSE THAT ORIGINAL $400 MILLION ISSUANCE AT WORK WHEN SUMMER 2025 CONSTRUCTION KICKOFF MEETINGS HAPPENED IN APRIL.

BUT THEN ALONG COMES MAY 2025, WHEN SENATE BILL FOUR COMES OUT OF COMMITTEE, THE HOUSE COMMITTEE FOR PASSAGE, AND IT INCREASES THE STATE AID FOR HOMESTEAD EXEMPTION ONCE MORE, THIS TIME FROM $100,000 HOMESTEAD EXEMPTION TO 140,000.

BUT IT HAS SOME CLARIFYING LANGUAGE THAT WE DIDN'T HAVE TO THINK ABOUT THE LAST TIME WE WERE CONSIDERING THIS FINANCING.

THIS TIME AND THERE'S THE NICE LIFE OF A BILL.

BUT I WANTED TO POINT OUT ONE THING ABOUT THE LIFE OF THIS BILL IS THAT WHEN WE WERE MODELING THE WHAT IF SCENARIOS IN OUR BOARD WORK STUDY, WE USED 140,000. ASSUMING THAT THIS IS WHERE THE BILL WAS GOING TO TO HEAD.

[00:05:02]

BUT SINCE OUR BOARD WORK STUDY, THIS BILL WENT REALLY QUICKLY TO THE GOVERNOR AND WAS SIGNED INTO LAW ON JUNE 1ST, JUST DAYS BEFORE OUR LAST MEETING. THE LANGUAGE, IN THIS ORDER, HAS ONE CLARIFYING POINT THAT I WANT TO DRAW TO YOUR ATTENTION, AND THAT THE DEBT HAS TO BE ISSUED BEFORE SEPTEMBER 1ST, 2025.

THAT'S DIFFERENT THAN THE LAST TIME THE LEGISLATURE DID THIS WHEN IT ONLY HAD TO BE AUTHORIZED.

SO IT DOES PUT A LITTLE PRESSURE ON THE BOND MARKETS THIS YEAR FOR ANY AUTHORIZED BOND ELECTIONS FROM THIS PAST MAY AND ANY ELECTIONS PRIOR. SO WE'RE GOING TO GO OVER A LITTLE BIT MORE ABOUT WHAT'S GOING ON AS FAR AS THE LEGAL FRAMEWORK.

AND I'M GOING TO INVITE MISS MELISSA LEAL FROM CANTON HARDIN MONTOYA TO TALK ABOUT THE LANGUAGE OF THE ORDER.

GOOD EVENING, PRESIDENT HATFIELD. TRUSTEES. DOCTOR ELDREDGE, THANK YOU FOR HAVING ME THIS EVENING.

I KNOW YOU JUST HEARD A VERY LONG AGENDA DESCRIPTION.

I AM HERE TO GIVE YOU, HOPEFULLY, THE ABBREVIATED VERSION OF THE RELATED ORDER.

WHAT YOU HAVE IN FRONT OF YOU TONIGHT WITH REGARD TO THIS ITEM IS OUR PLAN OF FINANCE ORDER.

THIS DEALS WITH THE REMAINING AUTHORIZATION FROM THE 2023 BOND ELECTION.

AS MISS SUTTLE JUST MENTIONED. THE THE FINANCE ORDER IS WRITTEN AS A PARAMETERS ORDER.

IT IS IT IT IS MADE UP OF TWO DIFFERENT COMPONENT COMPONENTS.

WE HAVE AND AND THAT IS INTENTIONAL TO OFFER THE BOARD AND THE DISTRICT SOME FLEXIBILITY IN MANAGING YOUR ISSUANCES. SO FIRST AND FOREMOST, WE'RE TALKING ABOUT THE NEW MONEY.

AND IT IS A DELEGATED SALE WHICH ALLOWS THE BOARD, THE DISTRICT TO AUTHORIZE STAFF TO EFFECTUATE THE SALE OF THE BONDS THROUGH HANDLING ALL THE PAPERWORK WHEN YOU ALL ARE READY AND AND IN ACCORDANCE WITH THE TIMELINE THAT I KNOW MR..

TONY WILL TALK ABOUT IN A LITTLE BIT, THE THE PARAMETERS FOR THE NEW MONEY INCLUDE A MAXIMUM INTEREST RATE OF 6% AND A MAXIMUM MATURITY OF TWO, UP THROUGH 2055. I'M GOING TO GO TO THE NEXT.

THE SECOND COMPONENT OF THE ORDER DEALS WITH THE REFUNDING OF BONDS.

THAT IS THE PROCESS FOR TAKING OUT OR RETIRING BONDS THAT ARE NOW CALLABLE.

AND THE ORDER PROVIDES PARAMETERS AROUND WHEN THAT CAN BE DONE AND THAT THAT IS LISTED ON YOUR ON YOUR SCREEN AT 2%. NET NET PRESENT VALUE SAVINGS. SO THESE TWO THINGS ARE BOTH INCLUDED IN THE ORDER BEFORE YOU.

WE ASSUME THAT IT WE ASSUMED WHEN DRAFTING IT WOULD COVER THE ENTIRE 300 MILLION FOR THE NEW MONEY, AND THAT REFUNDING WOULD OCCUR AS YOUR FINANCIAL ADVISOR WHEN IT WAS READY TO HAPPEN.

AS FAR AS THE MARKET GOES, A COUPLE OF OTHER POINTS.

THE ORDER IS EFFECTIVE FOR A YEAR. UP THROUGH THE 2026 YEAR.

AND YOU CAN ISSUE BONDS UP THROUGH THEN WITH A LITTLE BIT OF LEEWAY AT THE END OF THAT PERIOD FOR CLOSING IF YOU ISSUE BEFORE THE EXPIRATION OF THAT. THOSE ARE REALLY THE MAIN POINTS. I KNOW WE'VE TALKED A LITTLE BIT ABOUT SENATE, SENATE BILL FOUR AND THE TIMING CONSIDERATIONS.

AS YOU ALL MAY KNOW, WE ARE REQUIRED TO HAVE ALL BONDS APPROVED BY THE ATTORNEY GENERAL'S OFFICE.

THAT IS ALSO A TIMING CONSTRAINT. WHEN WE WHEN WE ARE CONSIDERING HOW MANY SCHOOL DISTRICTS WILL BE ISSUING THIS SUMMER.

IN LIGHT OF THE PRESSURE FROM SENATE BILL FOUR IN THE SEPTEMBER 1ST DEADLINE.

WITH THAT, I BELIEVE IT'S OUR FINANCIAL ADVISERS.

UNLESS ANYBODY HAS ANY QUESTIONS, I GUESS I SHOULD HAVE OFFERED THAT.

OR IF YOU WANT TO WAIT FOR MEMBERS, WE CAN PAUSE ANY QUESTIONS AT THIS POINT, MISS BENAVIDES? THANK YOU. I WANTED TO ASK ABOUT THE AUTHORIZATION.

ENDS MAY 22ND, 2026. YES. THAT IT IT'S IT WOULD BE 365 DAYS FROM TODAY WHEN IT'S APPROVED.

SO THAT'S PROBABLY THAT DATE IS A LITTLE BIT OFF, BUT IT WOULD BE A FULL YEAR IF WE PASS THE ORDER IS EFFECTIVE FOR AN ENTIRE YEAR.

OKAY. YES. THANK YOU. JUST TO CLARIFY, THAT'S THE ORDER ON THE REFUNDING.

THAT'S OR IS IT BOTH? PRIOR ORDER. THE ENTIRE ORDER.

OKAY. THANK YOU. ALL

[00:10:02]

I THINK YOU ALL HAVE SEEN SOME OF THIS, BUT WE'VE KIND OF TWEAKED IT A LITTLE AND SUMMARIZED IT A LITTLE.

BUT AT THE BOARD'S DIRECTION, WE WENT BACK THIS WEEK, AND MY PARTNER AUSTIN DID THE BULK OF THE WORK, BUT WE RECAST SOME NUMBERS AND LOOKED AT REALLY THREE SCENARIOS HERE.

SCENARIO ONE IS ISSUE THE FULL REMAINING AUTHORIZATION THIS SUMMER, WHICH WAS WHAT WAS PRESENTED LAST WEEK.

AND THEN SCENARIO TWO WOULD BE ISSUE JUST SHY OF 185 MILLION NOW AND ISSUE THE BALANCE A YEAR FROM NOW NEXT SUMMER. AND THEN SCENARIO THREE IS IF THE BOARD ISSUED NO BONDS THIS SUMMER AND THEN WAITED AND ISSUED THE FULL REMAINING AUTHORIZATION NEXT SUMMER.

WE'VE GOT ALL OUR ASSUMPTIONS HERE. I WON'T GO THROUGH THESE AGAIN.

THESE ARE PRETTY MUCH THE SAME AS LAST WEEK. THE ONLY DIFFERENCE IS THE TIMING OF THE SALES.

AND THEN ALSO IN OUR NEW ANALYSIS, WE WENT BACK AND ESTIMATED WHAT THE THE TAXABLE VALUE LOSS WOULD BE WITH THE HOMESTEAD EXEMPTION INCREASE.

PULLED THAT OUT AND THEN BUILT IN PROJECTED WE CALL IT ASAHI.

THE HOLD HARMLESS FUNDING FROM THE STATE FOR EACH SCENARIO.

SO WE GOT A LOT OF NUMBERS HERE ON THIS SLIDE.

THIS IS KIND OF THE SUMMARY OF EACH OF THOSE SCENARIOS WORKING LEFT TO RIGHT.

WE GOT ALL THE PROJECTED DEBT SERVICE NUMBERS, THE MATURITY DATES.

ALL OF THESE WOULD STILL MAINTAIN THE 20 CENT INN'S TAX RATE.

BUT IF WE IF YOU FOCUS YOUR EYE TO THE MIDDLE OF THE PAGE, MIDDLE TO THE BOTTOM, THE LAST TWO ROWS THERE IN YELLOW WE SHOW VERSUS SCENARIO ONE, SCENARIO TWO, WHICH WOULD, YOU KNOW, BE ISSUING A PORTION THAT ACTUAL DEBT PAYMENTS ON THAT SERIES OF BONDS OR THE REMAINING AUTHORIZATION WOULD BE ABOUT 17 MILLION HIGHER IN SCENARIO TWO AND THEN THE LOSS OF STATE AID WOULD BE ABOUT 8.6 MILLION.

AGAIN, YOU LOSE ABOUT BY HOLDING BACK 40% OF THE BONDS, YOU LOSE ABOUT 40% OF THE FUNDING.

SO IT'S SORT OF A PRO RATA CALCULATION. AND THEN IN SCENARIO THREE ADDITIONAL DEBT SERVICES IS PRETTY SIMILAR 16.5 MILLION.

BUT THE LOSS OF FUNDING GOES UP DRAMATICALLY TO ABOUT 25.2 MILLION OF FOREGONE STATE AID BY NOT ISSUING ANYTHING AND MEETING THE DEADLINES THAT HAVE ALREADY BEEN DISCUSSED. I WON'T GO THROUGH THE POINTS AT THE BOTTOM BECAUSE I THINK WE'VE TALKED ABOUT THOSE.

I JUST WANTED TO GET BACK TO THE BOARD ON WE.

YOU ASKED LAST WEEK, COULD WE STILL MEET THIS ALL THESE DEADLINES, IF WE WAITED A WEEK AND WE'VE LOOKED AT OUR TIMETABLE AND WE CAN WITH THE BOARD'S APPROVAL TONIGHT, WE WOULD WE WOULD START WORK IN THE MORNING APPLYING FOR CREDIT RATINGS, SETTING CALLS TO HAVE CREDIT RATING MEETINGS, ASSEMBLING AN UNDERWRITING TEAM AND A FINANCING TEAM, AND HOPEFULLY BE IN A POSITION TO STILL SELL THE BONDS MID-JULY AND CLOSE AUGUST 7TH IN ADVANCE OF THE DISTRICT'S DEBT SERVICE PAYMENT DATE, WHICH IS AUGUST 15TH.

SO WE WENT BACK AND JUST KIND OF TOOK A VERY QUICK LOOK AT EACH SCENARIO JUST TO KIND OF THE HIGHLIGHTS OR ANY NEGATIVES FROM EACH SCENARIO.

SO IN SCENARIO ONE, I'LL JUST HIT THESE BULLET POINTS AGAIN.

IT MAXIMIZES STATE AID. IT PRODUCES THE LOWEST TOTAL DEBT SERVICE TO THE DISTRICT.

TOTAL OVERALL PAYMENTS. IT CARRIES THE LOWEST AMOUNT OF INTEREST RATE RISK.

AND WHEN I TALK ABOUT INTEREST RATE RISK I MEAN TIME WE WOULD HAVE TO WAIT UNTIL WE LOCK IN THE INTEREST RATES.

SO WE'RE LOCKING THOSE IN NOW AND WE THINK IT'S AN ADVANTAGEOUS MARKET.

AND THEN LASTLY, AGAIN, THIS SCENARIO WOULD ALLOW US TO COMPLETE THE 2023 BOND PROGRAM AS SCHEDULED AND UNDER BUDGET.

AND WE ACTUALLY WENT BACK AND LOOKED TODAY. AND WHAT OUR PRELIMINARY PLAN, OUR TOTAL DEBT SERVICE NUMBERS WERE WHEN WE WE PRESENTED IN JULY OF 2023 AND BASED ON WHERE WE SOLD THE FIRST SERIES THEN, AND WHERE WE PROJECT TO SELL THIS SERIES TODAY.

WE WERE ABOUT 47, LITTLE OVER 47 MILLION UNDER BUDGET.

SO I DID WANT TO POINT THAT OUT, AS THIS WAS A PLAN THAT WAS PUT IN PLACE AT THAT TIME.

FLIP INTO SCENARIO TWO. AGAIN, THIS IS SELLING A PORTION NOW.

AND FROM THE TOP AGAIN, WE WOULD LOSE ABOUT 8.6 MILLION IN STATE AID BUY BY NOT SELLING THE FULL AUTHORIZATION.

TOTAL DEBT SERVICE WOULD BE 17 MILLION HIGHER THAN SCENARIO ONE.

AND AGAIN, THIS CARRIES A LITTLE BIT HIGHER INTEREST RATE RISK. AND THAT WE WOULD ONLY BE LOCKING IN THE RATES ON A PORTION OF THE DEBT.

LASTLY, IN SCENARIO THREE WE WOULD LOSE THE FULL AMOUNT PROJECTED AMOUNT OF HOLD HARMLESS FUNDING, WHICH IS A LITTLE OVER 25 MILLION AT THIS POINT.

DEBT SERVICE IS $16.5 MILLION HIGHER. AND THEN AGAIN, THIS CARRIES THE HIGHEST AMOUNT OF INTEREST RATE RISK AND MEANING THAT WE WOULD WAIT A FULL YEAR TO LOCK IN ANY OF THE INTEREST RATES ON ANY OF THE AUTHORIZATION.

SO THAT'S A SUMMARY OF THE NUMBERS. I'M HAPPY TO TAKE ANY QUESTIONS BOARD MEMBERS ANY QUESTIONS ON THIS PORTION OF THE PRESENTATION.

MR. CHAIRMAN, JUST SO THAT I UNDERSTAND HERE THE TOTAL PROJECTED DEBT SERVICE ESTIMATE THAT YOU PUT

[00:15:03]

YES, SIR. OKAY. SO I WANT TO MAKE SURE THAT THOSE TWO ARE BEING ADDED TOGETHER.

YES, SIR. AGAIN, YOUR MATH WORKS. AND THEN JUST ONE OTHER QUESTION I HAD.

I KNOW WE TALKED ABOUT THE FEES SINCE LAST TIME, AND SO I KNOW YOU SAID YOU WEREN'T GOING TO GO OVER IT, BUT IT'S NOW MY FAVORITE WORD WHEN WE PAY OFF DEBT EARLY. I SAID IT RIGHT THIS TIME.

AND WHEN WE PAY OFF DEBT EARLY, THAT'S REALLY IMPORTANT TO OUR VOTERS BECAUSE WE'RE, THEY'RE SHRINKING THE LIFETIME OF THAT BOND.

AND SO I DO THINK IT'S IMPORTANT TO NOTE THAT THE DEFENDANTS IN THE SCENARIO THREE.

CAN YOU WALK ME THROUGH THAT A LITTLE BIT, PLEASE? YEAH. SO AGAIN, WE HAVE TO MAKE CERTAIN ASSUMPTIONS IN EACH ONE OF THESE SCENARIOS. AND WE ASSUMED IN SCENARIO THREE, YOU KNOW, IF YOU ALL DIDN'T ISSUE ANY DEBT THAT YOU WOULD WANT TO KEEP THE TAX RATE WHERE IT IS.

SO WE'VE ASSUMED ANOTHER DIFFERENCE IN THAT SCENARIO.

I THINK IT'S ROUGHLY 17 MILLION IS ON TOP OF THE NINE PLUS MILLION THAT WE'RE ALREADY DOING THIS YEAR.

SO THAT'S KIND OF THE THE NUMBER OF 25 MILLION ROUGHLY YOU SEE THERE.

I DO WANT TO POINT OUT THERE'S STILL SOME CLARIFICATION ON HOW DIFFERENCES AND REDEMPTIONS ARE GOING TO WORK IN THE NEW STATE FUNDING MODEL FROM SB FOUR.

SO WE WOULD NEED TO WORK THROUGH THAT. AND ANY IMPACT TO THE DISTRICT ON THAT.

OKAY. THANK YOU VERY MUCH.

SO I'D LIKE TO TALK A LITTLE BIT ABOUT OUR BOND PROJECTS AND THEIR PROGRESS.

THIS IS A LITTLE BIT OF A STEP BY STEP IN, IN HOW BOND DOLLARS WORK WITHIN THE DISTRICT FROM BOND ISSUANCE.

THAT'S WHEN WE HAVE MONEY IN THE BANK, SO TO SPEAK.

THAT'S WHEN WE START PROCURING OUR VENDORS, GETTING THE ARCHITECTS AND THE RIGHT CONTRACTORS ALIGNED.

AND AND I LIKE TO KIND OF DRAW A LINE IN THE SAND WHEN IT COMES TO HOW MISTER BLACKMAN AND I WORK WHEN WE GET TO GUARANTEED MAXIMUM PRICE.

BECAUSE ONCE MISTER BLACKBURN PRESENTS GUARANTEED MAXIMUM PRICE CONTRACTS TO THE BOARD TO ENTER INTO, WE REALLY SHOULD HAVE THOSE FUNDS AVAILABLE. AND THAT'S IMPORTANT.

I USE THAT WORD AS AN ALLOCATED PORTION OF THE BUDGET BECAUSE HE'S GOING TO DO HIS THING AND I NEED TO BE ABLE TO PAY THE BILLS, AND THAT'S AND ANY KIND OF YOU KNOW, DEFICIT THERE OF BEING ABLE TO DO THAT IMPEDES HOW FAST AND HOW WELL HE DOES HIS JOB. SO HE'S GREAT. AND I LIKE TO MAKE SURE HE KEEPS BEING GREAT.

SO WE LIKE TO MAKE SURE THAT THE FUNDS ARE IN THE BANK WHENEVER HE'S READY TO ENTER INTO THE GUARANTEED MAXIMUM PRICE CONTRACTS.

SO THAT'S WHY WHEN WE HAVE A BOND PROJECT PAYMENT SCHEDULE AND IT'S ALIGNED WITH THE PROJECTS AND WHEN THEY ARE KICKED OFF.

SO ESSENTIALLY, ONCE THE TRAIN LEAVES THE STATION, WE NEED TO HAVE ALL THE DIESEL ON BOARD.

AND THAT'S AS MUCH OF THE METAPHOR AS I'M GOING TO TAKE THAT.

BUT IN JULY OF 2023, AS I REFERENCED BEFORE, WE DID ISSUE THE $400 MILLION.

AND ACCORDING TO THE PROJECT PLAN THOSE DOLLARS WILL RUN OUT ABOUT MID YEAR NEXT YEAR, NEXT IN 2026.

BUT IF YOU AND THOSE ARE THE BLUE LINES ON THIS GRAPH.

SO IF YOU'LL SEE WE'LL BE WELL INTO NEW FACILITIES CONSTRUCTION IN OUR PROJECT PLAN, ALL OF OUR EXISTING FACILITIES.

THAT TRAIN HAS ALSO LEFT THE STATION, SO WE ARE ALREADY IN IN CONSTRUCTION THERE.

SO ACCORDING TO THE ORIGINAL PROJECT PLAN AND I KNOW IT'S BEEN MENTIONED BEFORE, BUT WHEN WHEN YOU ISSUE BONDS, YOU HAVE TO CERTIFY THAT YOU HAVE A REASONABLE EXPECTATION TO SPEND IT IN THREE YEARS.

THAT'S WHAT THIS PROJECT PLAN IS. SO WE HAVE REASONABLY EXPENDED AND ALLOCATED OUR OUR PROJECT BUDGETS ON TIME.

AND WE ARE READY, AS ORIGINALLY PLANNED, TO ISSUE IN JULY OF 2025.

THE RISK THAT WE MIGHT CONSIDER SHOULD WE DELAY THIS IS HOW FAR INTO THAT NEW CONSTRUCTION WE GO. SO IT'S KIND OF LIKE A RUNWAY. WE DON'T WANT TO TAKE OFF UNLESS WE KNOW THAT THAT THAT THAT MONEY IS GOING TO BE IN THE BANK.

I HOPE THAT HELPS A LITTLE BIT IN THE CLARITY.

AND SO EVERY BOND PROJECT YOU SEE HERE HAS A A LIFT OFF OF GREEN.

THAT MEANS THOSE PROJECTS HAVE BEGUN AND STARTED SPENDING ON TIME.

AND SO YOU KNOW, TYPICALLY YOU SEE BOND PROJECTS LIKE THIS BY CAMPUS, BUT I'M GOING TO INVITE MISTER BLACKBURN HERE TO REVIEW AGAIN JUST A LITTLE BIT ABOUT WHY WE PACKAGE THE BUILDING THE DIFFERENT BOND PROJECTS THE WAY THEY ARE.

[00:20:06]

DOCTOR ELDRIDGE ESTEEMED MEMBERS OF THE BOARD.

JUST TO REVIEW IN THE IN THE 2023 ELECTION CYCLE, THERE WERE TWO BOND VOTES THAT PASSED IN NORTH TEXAS, THE FIRST BETWEEN THE TWO OF THEM IN THAT YEAR, WHEN WE PASSED OUR BOND, THERE WAS A TOTAL OF ABOUT $17 BILLION WORTH OF WORK JUST IN THE NORTH TEXAS MARKET, JUST FOR PUBLIC SCHOOLS. AND SO WHEN WE BEGAN TO THINK ABOUT HOW WE WERE GOING TO BEST, FIRST TAKE OUR WORK TO THE MARKET TO ASK FOLKS TO BID ON IT FOR US IN TERMS OF CONSTRUCTION.

I WAS REALLY CONCERNED THAT WE MAKE THAT WORK ATTRACTIVE, SO WE WOULD HAVE THE BEST COMPETITIVE PRICING THAT WE COULD FROM THE FIRMS THAT WE WANTED TO WORK WITH. AND SO WE THOUGHT ABOUT THAT A LOT.

AND THE STRATEGY THAT WE ENDED UP WITH WAS HAD, I WOULD SAY AT LEAST THREE MAIN LAYERS.

SO THE FIRST LAYER IS TO GROUP A LARGER RENOVATION PROJECT WITH A SMALLER, A COUPLE OF SMALLER RENOVATION PROJECTS THAT WERE NEARBY IN THE SAME PERMITTING JURISDICTION. BECAUSE AND JUST AS AN ASIDE, IF A CONTRACTOR DOESN'T WANT TO WORK ON YOUR PROJECT, BUT HE DOESN'T WANT TO MAKE YOU MAD, HE'LL GIVE YOU A PRICE, BUT HE'LL HE'LL JACK UP THE PRICE SO YOU WON'T WANT TO USE HIM.

AND SO THAT'S WHAT WE WERE TRYING TO AVOID. WE'RE TRYING TO MAKE IT ATTRACTIVE SO THEY COULD STAFF IT EFFICIENTLY.

AND THEY COULD BE EFFECTIVE IN THEIR PROGRESS IN THE WORK.

AND SO THAT'S THE WAY WE ARRANGED IT. WE TRIED TO PROVIDE AN ANCHOR PROJECT, A COUPLE OF SATELLITE PROJECTS NEARBY TO MAKE THE WORK ATTRACTIVE.

ALONG WITH THAT, WE USED. WE THOUGHT OF THE WORK IN BASICALLY THREE BUCKETS, AS YOU'VE SEEN IN THE EARLIER SLIDE THE RENOVATION WORK, THE REPLACEMENT CAMPUSES, AND SAFETY AND SECURITY ITEMS. SO THE REASON WE WANTED TO START WITH THE RENOVATION WORK WAS BECAUSE WE COULD USE THE NEW CONSTRUCTION AS A CARROT.

SO IF THEY WERE ABLE TO BE SUCCESSFUL ON THE RENOVATION WORK, THEY'RE BETTER POSITIONED TO BE SUCCESSFUL ON THE NEW REPLACEMENT PROJECTS.

SO AGAIN, WE'RE TRYING TO INCENTIVIZE FOLKS TO BID ON OUR WORK THAT WE WANT TO DO OUR WORK.

AND SO WE WERE PRETTY PLEASED WITH THE RESULTS THAT WE GOT FROM THAT PROCESS.

OVERALL, THE RENOVATION WORK IS PROCEEDING VERY WELL.

AND SO WE'VE BEEN WE'VE BEEN THANKFUL FOR THAT.

AND THE THIRD THING THAT WE DO TO TRY AND BE AS EFFICIENT AND GET THE BEST PRICING THAT WE CAN IN AND WITH THE BEST RESULTS IS TO BRING ON THE CONSTRUCTION MANAGER AS EARLY AS POSSIBLE.

SO IF YOU REMEMBER, SHORTLY AFTER WE AUTHORIZED THE ARCHITECTS, WE WITHIN A COUPLE OF MONTHS, WE WERE RIGHT BACK AUTHORIZING THE CONSTRUCTION MANAGER, EVEN THOUGH CONSTRUCTION WASN'T GOING TO START FOR ANOTHER SEVERAL MONTHS, ALMOST A YEAR IN A LOT OF CASES, BECAUSE OF THE TIME IT TAKES TO GO THROUGH THE DESIGN PROCESS AND GET ALL THE STAKEHOLDER INPUT FOR EACH OF THOSE PROJECTS ON EACH OF THOSE CAMPUSES. SO WE'VE BEEN PRETTY PLEASED WITH THAT.

I FEEL LIKE IT'S BEEN RELATIVELY, RELATIVELY SUCCESSFUL AND WE'VE BEEN ABLE TO STAY WITHIN BUDGET.

WE HAVEN'T HAD TO TOUCH THE PROGRAM CONTINGENCY, EXCEPT FOR ONE OF THOSE RENOVATION PACKAGES, WHICH IS SO FAR WHICH HAS BEEN GREAT.

WE HAVE SEEN SOME INCREASED CONSTRUCTION COSTS FOR THE NEW REPLACEMENT CAMPUSES, BUT WE HAVE BEEN ABLE TO INCREASE THE BUDGET FOR THOSE PROJECTS BECAUSE OF THE INTEREST THAT WE'VE EARNED ON THAT FIRST BOND SALE. SO THAT'S BEEN A PLUS.

AND THEN JUST TO GIVE YOU AN IDEA OF, OF WHERE WE PLAN TO GO FROM HERE, AS MENTIONED, WE'VE GOT $131 MILLION BUDGETED FOR THE FOUR CONSOLIDATED CAMPUSES.

NO DECISIONS HAVE BEEN MADE REGARDING REALLOCATION OF THOSE FUNDS.

THE PLAN IS TO FOLLOW A DELIBERATE DECISION MAKING PROCESS WITH FEEDBACK FROM STAKEHOLDER GROUPS, INCLUDING A COMMUNITY SURVEY. A DESIGN FIRM IS ASSISTING US WITH OPTION DEVELOPMENT RIGHT NOW.

THAT OPTION DEVELOPMENT WILL INCLUDE THE BOND OVERSIGHT COMMITTEE, AND TRUSTEES WILL BE UPDATED THROUGHOUT BEFORE A RECOMMENDATION IS PRESENTED TO THE BOARD.

AND I THINK NOW I WILL HAND IT BACK OVER TO CARLA.

SO LIKE I MENTIONED BEFORE, WE MARRY THE PROJECT PLANNING WITH WHEN WE EXPECT CASH FLOW TO WALK OUT THE DOOR.

AND JULY 2026 IS KIND OF WHERE THOSE THOSE TWO LINES INTERSECT.

BUT AT THE END OF THE DAY THE DISTRICT DOES RECOMMEND SCENARIO ONE.

BECAUSE OF THE PROVISION OF ADDITIONAL STATE AID WILL ONLY BE EXTENDED TO THIS DEBT.

BEFORE SEPTEMBER 1ST OF THIS YEAR. AND THAT MEANS BONDS THAT HAVE BEEN PRICED AND SOLD MONEY IN THE BANK.

AND VERY SIMPLY, THE STATE WILL ONLY BE WILLING TO PAY FOR THE EFFECTS OF THEIR DECISIONS ON THIS KIND OF DEBT BEFORE THEIR BUDGET

[00:25:06]

AND WITH THAT IF YOU HAVE ANY OTHER QUESTIONS OTHER THAN THAT, I HAVE OH, YEAH.

I JUST WANTED YOU TO REVIEW MR. BLACKBURN. TOUCH ON THIS A BIT IS WHEN WE ISSUE THE DEBT, SAY, THE 400,000 BACK LAST YEAR. WHAT? WHAT HAPPENS TO THAT MONEY? RIGHT. WE STRATEGICALLY INVEST THAT INTO WITH INTEREST RATES.

INTEREST INCOME. AS FAR AS THE BEST THAT WE CAN GET OUT IN THE MARKET.

I THINK TODAY I ASKED MY STAFF TO PULL WHAT WE'VE EARNED ON OUR ON OUR MONEY SO FAR, AND IT'S IN EXCESS OF $30 MILLION.

SO WHAT DOES THAT DO? WE'VE SEEN THAT IN PREVIOUS BONDS THAT WHEN WE'VE BEEN STRATEGIC ABOUT INVESTING OUR DOLLARS AND WE HAVE ADDITIONAL INTEREST REVENUES, WE'RE ABLE TO USE THAT MONEY TO FURTHER INVEST IN THE DISTRICT BASED UPON THE ORIGINAL ORDER.

SO, FOR INSTANCE, IN 2018, YOU APPROVED I MEAN FOR THE 2018 BOND, YOU APPROVED A LIST OF PROJECTS THAT QUALIFIED UNDER THE ORIGINAL BOND ORDER.

AND SO WE PUT THOSE DOLLARS TO WORK IN THE DISTRICT.

WE'LL BE ABLE TO DO THAT AGAIN HERE. THANK YOU.

ADDITIONAL QUESTIONS OR COMMENTS? OKAY. OKAY.

CAN YOU JUST GO BACK TO THE SLIDE ABOUT THE BOND PROJECT UPDATES? BECAUSE I THINK IS IT THIS ONE? NO. THE BUDGET'S THE ONE THAT HAS THE SLIDES ABOUT HOW NO DECISIONS HAVE BEEN MADE REGARDING REALLOCATION. SO I THINK IT'S IMPORTANT TO NOTE THAT ON ACTUALLY, ON THE PREVIOUS SLIDE, YOU GUYS HAVE PULLED OUT THE CONSOLIDATION IMPACT AND PUT IT ON A SEPARATE LINE ITEM. AND SO THOSE FUNDS ARE NOW WE'RE MOVING INTO A SEPARATE LINE SO WE CAN MONITOR IT STRATEGICALLY.

AND I THINK THAT'S REALLY IMPORTANT. AND TO ME THIS IS ME PERSONALLY, THIS VOTE IS NOT ABOUT STARTING CONSTRUCTION OR COMMITTING TO SPECIFIC PROJECTS FOR THAT. THIS VOTE IS ABOUT PRESERVING THE DISTRICT'S ELIGIBILITY FOR ADDITIONAL STATE FUNDING.

AND THAT COULD SAVE OUR THAT NOT COULD THAT WILL SAVE OUR TAXPAYERS MILLIONS OF DOLLARS.

AND SO I JUST WANT TO SAY THAT I THINK IT'S JUST EVEN MORE INCUMBENT ON US TO CONTINUE TO ENGAGE WITH OUR LEGISLATORS, BECAUSE THE CHANGE THAT THEY MADE FROM THE LAST LEGISLATIVE TO THIS LEGISLATIVE SESSION HAS PUT US IN A POSITION WHERE WE'RE HAVING TO PROCESS VERY DIFFERENTLY AND VERY QUICKLY.

AND SO THEY NEED TO KNOW THE IMPACT OF THAT. SO I PERSONALLY PLAN TO CALL SOME OF OUR REPRESENTATIVES, AND I WOULD ENCOURAGE MY COLLEAGUES TO CALL YOUR REPRESENTATIVES THAT YOU ARE CONNECTED WITH, BECAUSE THEY NEED TO KNOW THE POSITION THAT THEY'RE PUTTING US IN.

AND THEN IF YOU GO TO THE NEXT SLIDE I APPRECIATE THE INTENTIONALITY OF ADMINISTRATION, AND IT IS CRITICALLY IMPORTANT THAT WE HOLD TRUE TO THIS, THAT WE ARE GOING TO HAVE A PROCESS WITH FEEDBACK FROM STAKEHOLDER GROUPS, INCLUDING A COMMUNITY SURVEY.

WE ARE GOING TO INVOLVE THE BOND OVERSIGHT COMMITTEE, BECAUSE IF THIS PASSES, IT ALSO HAS DIFFERENT IMPLICATIONS.

AND SO I JUST WANTED TO GO BACK AND AND HIT THAT HARD.

AND FOR ANY COMMUNITY MEMBERS THAT ARE WATCHING, ALL OF THIS IS HAPPENING IN AUSTIN THAT IS CAUSING US TO BE IN A POSITION WHERE WE HAVE WE DON'T HAVE A CHOICE. WE CAN'T PAUSE, WE CAN'T WAIT. WE GOT TO MAKE A DECISION. AND THAT DECISION IS GOING TO HAVE VERY LARGE IMPLICATIONS EITHER WAY.

SO THAT'S FROM ME PERSONALLY. AND WITH THAT, ARE THERE ANY OTHER COMMENTS? MISS BENAVIDES? THANK YOU. REGARDING THE BOND PROJECT SPENDING, DO WE HAVE COMPLETION DATES? I KNOW WE HAVE ONE, TWO, THREE WITH A LOT OF GREEN.

DO WE HAVE ANY INFORMATION ON. YES. THIS IS OUR PROJECT PLAN.

AND AS IS EVERYTHING THAT I'VE SEEN ON THE PAY APPS, EVERYTHING IS BEING BECAUSE I WATCH AS MONEY GOES OUT.

AND OUR VERY EXCELLENT CONSTRUCTION TEAM HAS TO CERTIFY THAT THAT PERCENT COMPLETION IS CORRECT.

EVERYTHING IS RUNNING ON THIS SCHEDULE. DO YOU WANT TO SAY ANY MORE? ANYMORE? NO, YOU GOT IT. MISS BARNES. I KNOW YOU'VE PROBABLY REPEATED THIS A MILLION TIMES. BUT IN TERMS OF THE CONSOLIDATION IMPACT, MONEY THAT IS KIND OF BEING SET ASIDE AND DECIDED ON A LATER DATE, WHAT CAN IT BE SPENT ON? WHAT CAN BORROWED MONEY OR FROM THE 2023 BOND? WHAT ARE THE CONSTRAINTS OF WHAT A SCHOOL DISTRICT CAN SPEND THAT ON? WELL, IT'S CONFINED TO HOW THE ORIGINAL BOND ELECTION ORDER WAS WRITTEN.

[00:30:03]

SO THE THE STATUTES CHANGED BETWEEN THOSE TWO ELECTIONS, WHERE WE COULDN'T USE IT ON ATHLETIC FACILITIES BECAUSE WE DIDN'T HAVE A SEPARATE PROPOSITION FOR THE 2023. BUT WE DO HAVE THE SAME LATITUDE THAT ANY OF OUR OTHER BOND PROJECTS THAT THAT SCOPE OF WORK HAS ALREADY BEEN ESTABLISHED. IT WOULD BE ANYTHING THAT'S SIMILAR TO THAT, BUT WE HAVE TO STAY AWAY FROM ATHLETIC FACILITIES.

NATATORIUM? WHAT AM I MISSING? FINE ARTS. WE CAN'T BUILD A PERFORMING ARTS CENTER WITH OUR $130 MILLION.

ALL RIGHT. THANK YOU VERY MUCH. ADDITIONAL QUESTIONS OR COMMENTS? ALL RIGHT. SO WITH THAT, THIS ITEM IS MARKED FOR POSSIBLE ACTION.

DO I HAVE A MOTION REGARDING THIS ITEM? MISS BRADY, I MAKE THE MOTION TO APPROVE THE AGENDA ITEM AS PRESENTED. ALL RIGHT. I HAVE A MOTION TO APPROVE THE AGENDA ITEM AS PRESENTED.

IS THERE A SECOND? I HAVE A SECOND FOR MR. SHAKMAN.

IS THERE ANY DISCUSSION? TALK TO YOUR LEGISLATURES.

YES. JUST FOR MY UNDERSTANDING, THAT'S THE WHOLE AMOUNT.

CORRECT? CORRECT. SO IT'S AS PRESENTED, WHICH IS THE WHOLE AMOUNT.

YES. GREAT CLARIFICATION. SO IT'S AS PRESENTED WHICH THE ORDER IS FOR THE ENTIRE 316 MILLION.

ANY ADDITIONAL DISCUSSION? ALL RIGHT. WELL, ALL IN FAVOR, RAISE YOUR HAND.

ALL OPPOSED BY A VOTE OF SIX IN FAVOR. ZERO OPPOSED.

THE MOTION CARRIES. THANK YOU VERY MUCH. THAT IS THE AGENDA OF OUR AGENDA TONIGHT, AND WE ARE ADJOURNED AT 630.

WHAT? SORRY. OH, SORRY. KAREN, DO YOU HAVE SOMETHING ELSE TO ADD BEFORE I APOLOGIZE? YEAH. WE JUST WANTED TO MAKE SURE THAT THE COMMUNITY KNOWS HOW TO STAY INFORMED THROUGHOUT THIS PROCESS.

SO THE BOND 2023 WEBSITE IS BEING REVAMPED. THE INFORMATION.

THE INFORMATION. THERE WE GO. THE INFORMATION THAT WAS ON THIS AND CURRENTLY STILL IS ON IT IS THE INFORMATION THAT WAS PRESENTED BEFORE THE VOTE.

AND SO WE ARE STARTING TO ADD WE'RE, WE'RE PROVIDING BOND UPDATES.

AFTER YOU RECEIVE A BOND UPDATE DURING A BOARD MEETING, THOSE UPDATES ARE SENT TO ALL STAFF AND ALL FAMILIES VIA PARENT SQUARE.

THEY'RE ALSO POSTED ON HERE. THEY'RE ALSO POSTED ON SOCIAL MEDIA AND THEY'RE POSTED ON OUR MAIN WEBSITE. WE ALSO MADE SURE TO UPDATE THIS PAGE TO HAVE A LINK TO THE BOND OVERSIGHT COMMITTEE WEBSITE, WHICH HAS LIVED UNDER ABOUT US.

AND IF YOU GO TO DISTRICT COMMITTEES, YOU'LL FIND THE BOND OVERSIGHT COMMITTEE WEBSITE AND SO ON.

HERE YOU DO HAVE A CALENDAR. YOU'VE GOT OOPS, YOU'VE GOT MORE INFORMATION.

I'M SORRY. I DON'T KNOW HOW TO WORK THIS. YOU'VE GOT SOME INFORMATION ON THE BOND OVERSIGHT COMMITTEE, INCLUDING PURPOSE, RESPONSIBILITIES, MEMBERSHIP.

YOU'LL JUST CLICK ON THIS BOX, YOU'LL SEE ALL OF THAT.

THERE'S ALSO A RECORD OF MEETINGS WHERE YOU CAN SEE MEETING MINUTES AND PRESENTATIONS FOR THE MEETINGS THAT THE BOND OVERSIGHT COMMITTEE IS HOLDING.

SO WE WANTED OUR BOND 2023 WEBSITE TO JUST KIND OF BE A HOLDING PLACE FOR ALL INFORMATION.

SO WE'LL WORK WITH MR. BLACKBURN'S TEAM, WITH MISS KETTLE'S TEAM, IN ORDER TO MAKE SURE THAT WE UPDATE THE INFORMATION ON HERE.

SO WE JUST WANTED THE COMMUNITY TO BE AWARE THAT THIS WEBSITE CAN BE EASILY FOUND.

IF YOU LOOK UP HERE, THIS LITTLE BOND ICON IS ON EVERY WEB PAGE.

IF YOU GO TO THE MAIN WEBSITE IT'S KIND OF LOADING HERE.

THIS LITTLE BOND ICON IS ALWAYS AT THE TOP. WE ALSO ADDED IT HERE AS A FEATURED BOX.

AND THEN ANYTIME WE HAVE A NEWS POST YOU WILL SEE IT HERE.

SO WE JUST WANTED THE COMMUNITY TO BE AWARE OF HOW TO GET TO THAT BOND 2023 WEBSITE.

THANK YOU VERY MUCH FOR THAT HELPFUL INFORMATION.

I KNOW THE COMMUNITY WILL APPRECIATE THE TRANSPARENCY AND THE REBUILD TO MAKE SURE IT'S ALL UP TO DATE.

SO THANK YOU VERY MUCH. AND WITH THAT THE TIME IS 634 AND WE ARE ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.