001Recording in progress. >> [clears throat] >> Board reconvenes. You have the floor at this time. >> Time is 6:46. >> The board is reconvened in open session at 6:46 p.m. Item [clears throat] 6A, discussion action to approve the identified employment areas affected by the financial exigency and authorize the superintendent to apply the district's reduction in force criteria in accordance with board policy DFFA local. Mr. Grill. >> All right. Dr. Reina. >> At this time, Dr. Reina will be having a presentation to go over the item. And >> President Martinez, members of the board, and Superintendent Grill, thank you this evening. I I intend Yes. >> Do you have copies for us of this or >> I do not. >> Okay. >> But we will make them. >> Okay. >> I'm so sorry. I should have
002had those copies made for you. Um Well, follow along as we get started here. Uh this is an opportunity for us to And by the way, I'm Sylvia Reina and I'm the school district's conservator along with my co-conservator from TEA, Mr. John Hinds. And this evening, what we want to do is basically discuss with you the framework that we will use in order to identify the employment categories and the organizational areas that may be subject to the reduction in force that you all approved at the last board meeting. And this process is designed to make sure that we are, as a school district, fully compliant with the board policies, Texas law, and certainly the resolution that you all adopted. And we have an executive purpose here, and I want to very explicitly share this because
003I think it's important that the district know that what we're trying to do is to align the personnel expenditures with the current fiscal realities while maintaining an educational services that are necessary to improve the student achievement of the district. So when you look at the process, we want to basically establish that we are legally compliant and operationally sound sound with those processes those reduction in force processes. We want to make sure that the staff is aligned to the fiscal realities of the system and the academic priorities that have already been set for us to reach those goals. And again to preserve the instructional services. I've spoken to you about that and certainly that's what we want to make sure is that we're protecting the instructional services that we provide for our students and we want
004the public to feel comfortable that we are ensuring transparency and making sure that it is objectively the decisions that we make are objective and that we can defend these that anyone ask us to show us show our work to them. So that is what how we're operating and just familiar kind of boundaries that we are existing under. Also our next our next slide is to discuss what is the legal and policy foundation for what we're and how we're making our decisions. And all we did here we cite all of the sources of information that are guiding our decisions everything from the Texas Education Code to what is our intervention authority as conservators. Also your policy of DFA FFA and then the fact that you did adopt the financial exigency and the reduction in force. And
005so we also want everyone to understand that we want to follow all of the federal employment protections that every employee is is afforded such that there are also no discrimination of any employee and that we're following all those anti-discrimination laws. So that's just the the foundation for us And I think the public should know and if certainly you all are are fully aware that why must the district proceed in this way? There has been significant fiscal instability and it's threatening the long-term solvency of the school system. We also need to preserve payroll sustainability and operational continuity, which means that we have got to pay the employees that give us their time every day under contract and or agreement and also make sure that we can operate consistently throughout the entire school year. We also have
006a need to focus in on the fact that we have repeated academic underperformance. And it really requires that we source those those issues. So for us not to spend the kind of money on other things that might not necessarily be impactful on the instructional program, but that we focus those monies in the instructional program. And that in our case, in Crystal City, we're looking to organizational restructuring such that we are efficient and that we are effective. You all as as as is known have the fiduciary responsibility and duty for the district operations. And we want to make sure that we're presenting to you a viable plan that you can feel comfortable as board members voting for as it is presented. The the key reason why we are also here is the academic performance of the
007school system. We want to improve the performance and I will say this at every board meeting because I want the public to really understand this. We have to improve the performance at Benito Juarez Elementary School for the repeated F ratings and we need to get the school to a C or better in a very short amount of time. So again, that tells us how we have to focus our funds. Also improving the district rating from the D that we currently have to a C or better also very quickly. Protecting what we call high-quality tier one instruction. That is, what is that instruction that every day the students arrive and sit in those classrooms? What is the quality of the instruction that they're getting in that classroom when they're with that teacher and getting that direct
008instruction? We want that to be high quality. Prioritizing intervention systems and star tested areas. We have to ensure that we identify the students that need the support, that we provide the programs to provide that support, and that we are focused in on the students being able to show and demonstrate what they've learned through the interventions that have been provided. We also want to make sure that we're aligning our staff to the student achievement priorities. So that we're not heavy, for example, in central office and we're short at the schools because it needs to be flipped, that we need to be supportive and have a strong foundation on the campuses and perhaps it's the strength a little bit more on central office to do a little things differently if we need to. But it's really all
009about the academic urgency that we need to have. Uh Mr. Hines and and Superintendent Grill and I have really decided on what are those guiding principles that are what we're using to make decisions. And look at this. Students come first in all of our decision making. We every decision we ask ourselves, how is this decision going to affect the students sitting in that classroom? If it is a negative, then we have to look at it. If it is neutral, okay, good. Maybe this is something that we can look at to guide our decisions in making cuts or readjustments. Preserving the core instructional programs. What are those those instructional programs that every student should expect to have and it be high-quality, and we want to ensure that we're doing those basics. When you think about reading,
010writing, arithmetic kinds of things, those are the core instructional programs that we want to make sure that it's high-quality. Use of objective and documented criteria. We are keeping um um copious notes about every time we meet, what is it that we're doing, how is it that we're approaching everything in an objective way, and how is it that we are also reporting to TEA and TEA providing their expertise in guiding us to help you us guide you uh in decision-making. First, another area of of of super importance to us is to maintain legal compliance and fairness. We want to make sure that we're not ever going to bring you anything that goes against those those rules and regulations and certainly the laws that govern public school systems in the state of Texas. And we want to
011make sure that at the end of the day that we have operational sustainability, that we can operate our school system providing a quality instruction, raising the scores that we need to raise, providing that high-quality instructional program, and be sustainable for more than just this year. So, some of those um those uh uh what do you call those initiatives that we're going to provide for you or suggest to you are certainly going to be more long-lasting than just the one year to get us out of whatever state that we're in. So, we have divided ourselves our our process into phases. And our first phase was financial analysis. How is it that we got to where we're getting or where we got and how is it that we're going to get ourselves out of it? So, we
012have reviewed the the deficit projections and cash flow. We're analyzing the staffing expenditures and the benefits provided for every employee. We're determining the required savings target that we have to shoot for and I think that that everyone needs to know that we need to create a surplus budget, not a balanced budget, and not a deficit budget, but we have to provide a surplus budget when we adopt that in September because that is the the state of the financial situation of the school system. We also need to review enrollment trends and staffing ratios. So, we call that right-sizing. We we to right sized that we have the right number of students in the classroom and that the proportion or the the staffing is appropriate for the kind of class that it is. Um and we have
013to make decisions about how we staff. And then we also want to identify multi-year sustainability goals. So, not only are we looking at this financially for this year and how do we recoup this year in savings and how do we generate revenue, but how do we project ourselves to be successful for the next [snorts] 2 years, 3 years, 5 years down the road knowing that we're going to have to identify sources of revenue and also uh places of being efficient and effective, which mean necessary cuts to that. Phase two in our in our review is program and service. So, again, looking at the instructional programs and the courses that we offer, are there any courses that we currently offer that we may have uh just a handful of students in that perhaps might be better
014suited to a part-time teacher versus a full-time teacher. All of those kinds of decisions will be looked at in this phase. Evaluate low enrollment electives and duplicated services. Again, this is looking at program program quality, program delivery such that we provide that high quality instructional program whether or not um excessively uh uh funding a program that may not be for the good of the all or have higher numbers of enrollment. Uh analyze the operational departments and central office structures. So, when we talk about an organizational chart, when we talk about how many how do we staff a school with, you know, what [snorts] structures do we put in place? A principal, a counselor, a assistant principal, clerks, etc. What is the most effective way to do that? How is it that we're going to ensure
015that we are not uh damaging the instructional program, but that we're also not um being inefficient uh with our with our personnel structure. So, looking at the organizational chart of central office as well as each campus and each department. Assess the grant-funded positions for sustainability. So, what if we get a grant and a person has a program, we start the program and the grant's for 1 year, what do we do next year? How do we fund it? Do we continue it? What do we What do we do? How How do we make sure that whatever we offer is something that is sustainable should that grant funding be um uh no longer available to us? And then, at the end of the day, we also want to look at determining the impact on student outcomes. Everything
016is student-centered when we talk about not only the fiscal analysis, but now we're looking at the program and the service review. So, we're being very diligent about this process that we follow. The next area is where we come to you all as the board to look at the employment areas uh and how we identify what employment areas are we hoping to look at, and adjust, modify, etc. So, when we look at those, if you see there are five main areas. Yes, we do need to look at elementary and secondary staffing allocations. And let me give you an example. So, for example, if you have a second grade classroom, second grade classroom has 23 students uh in second grade. It's just an example. And um the law says that students in kindergarten through fourth grade have
017[clears throat] a ratio of one teacher for every 22 students. But you have 23. That doesn't comply with what the law says. Do we then split those, hire another teacher, and you have so so many in one class and so many in the other class, or do we leave them with one teacher, and do we apply for a waiver from the state for the one additional student? What's the most efficient and effective way to handle that is probably to look at that uh uh to be fiscally responsible. So, when then we say that for elementary, we also have secondary staffing allocations that we look at. If you have 20 students in a classroom, but you could have 25 in that classroom and not have a second teacher, should we make that kind of a decision?
018Again, what's the course? Who are the students? How is it that that that we can best deliver that instructional program? Career technology program, technical education programs. Career technology programs are expensive, but they're also very useful and necessary within a high school, so that students can explore what they might be interested in. So, we want to make sure that we are being judicious, that we don't have a very very high cost program with very low enrollment, because those kinds of anomalies will cause us to spend more money in a program that might not be very viable, and we might need to look at that that program. Administrative and support positions. Again, how are we staffed administratively? Not only at our campuses, but in central office and support programs. So, looking at absolutely every area. Fine arts,
019athletics, and electives. We have to think creatively about how we offer these, because this is a vital part of a student's education. We don't want to to cut those kinds of programs that we know that many times that's why students come to school, is because they want to be involved with the fine arts, or they want that elective, or they want to participate in athletics. And we don't want to ever squash that or or just, you know, turn off the light there for those students. But, we have to think about different ways that we might go about that. Fine arts, can we combine classes? Can we have a teacher that might teach English, but she's also certified to teach three-dimensional art? I'm just throwing that out as an example. Can we maximize the talent that
020we have to be able to afford the courses and to minimize to minimize personnel? When we talk about athletics, we want to look at different opportunities to provide students with the opportunity for athletics, but perhaps not necessarily having the school district bear all of the cost of providing them. Looking at the number of tournaments, looking at the number of options, those that are the required games versus those that are not the required games. All aspects of these programs are areas that we want to look at. And it may impact the employment areas because we may not need, you know, uh and I don't know the numbers off the top of my head, but we may not need 25 coaches to do XYZ. I'm just saying that. I don't know that that's the correct number. But
021we might be able to be more efficient in that area, too. And uh then we also look at district-wide and campus-specific restructuring. We're looking at being more efficient with our personnel, being more efficient with our spending, but now we also have to look about being more efficient with our facilities. It costs a lot of money to run a plant, a school. Everything from electricity to to water to just all of the expenses of staffing a separate location with the organizational uh chart, meaning principal, assistant principal, counselors, etc. So, can we be efficient with the physical plant that we have to reconfigure uh at our elementary schools? So, can we bring them together physically and then save money in facilities? Again, that might mean that in consolidation of that of that school or can reconfiguring that
022school, we may not need as many personnel there. So, when we talk about employment areas, and this is where we really are uh wanting to come to you to say everything is pretty much on the table, but not everything will be uh consider not everything will be touched simply because we have our guiding principles that are going to guide us such that we're not hurting any kind of uh instructional program. Questions? You just stop me anytime cuz I can go over those now. Here uh uh Okay, so um let me go on to phase four, compliance and validation. We want to make sure that we've identified individuals or a personnel that we are looking to at the proper criteria that's set forth in our policies. So, we want to make sure that we have a
023human resources review of the certification and the contracts. As I said, if you have an individual that is certified to teach English and doesn't have a full load of English, can that person teach something else? Could they teach public speaking and debate? Can they teach whatever? So, how is it that we look at matching what the individual has the capacity to and the and the certification to teach such that we can take advantage of that to offer the students what we need. Legal review of all of our policies, academic review for accountability, impacts, protected employee group analysis and documentation audit. This is that phase four is have we checked all our boxes? Have we checked absolutely everything? Are we doing everything in the right way before we we actually bring it to you for any
024further board action or we actually go through with the notifications. So, we have three of us that are consistently working on it, but the support staff, you know, when I talk about when we talk about finances, Mr. Velasquez has been a jewel to be able to help us identify those things or we have the human resource department or the special ed department, whatever has been made available to us, whoever we need to be able to make those kinds of decisions. So, we then want to talk about the next step and that's board action and I know that I talk a million miles an hour, but I know that it's also late. We want to make sure that superintendents recommendations, that the board has those, reviews those. Right now, it's the the approval of the employment
025areas that are subject to the reduction in force, authorization of the implementation and timeline, pretty much laying out what we're doing, the delegation of the administrative authority to the superintendent, and then again, your responsibility as governance oversight and for us to also oversee and monitor the expectations. So, that is the decision-making criteria. That is our internal document that we basically check or we looking at the academic improvement. Are we looking at whether or not it's legal? Are we going to have financial savings in it? Are we following good enrollment numbers and trends? Is it really necessary? And have we What's the program participation and and sustainability? This next This next area is really important because I want you to realize what we're talking about programs that we're recommending to protect. We certainly want to protect
026our special education compliance services. We want to make sure that our our bilingual ESL staffing are those that have specific certifications that we need for our students. We want to make sure that we're protecting protecting those programs. Making sure that the core tested subject areas are also protected and those teachers. Reading and math interventions, critical safety and transportation functions, and high performing instructional staff. Please know that this is our guiding light to help us to know that that these are the kinds of programs that we're going to want want to make sure that we are um not going to what I call do harm to. Required documentation. These are all the areas that we are going to keep documentation so that at the end of the day they are audit ready. We have evidence binders
027and should anyone question why we made a decision, we'll have a very plausible and very defendable defendable defensible. That we can stand behind the decisions that we've made. Let's just say it that way. And then here's our recommended timeline. We have been working very fast >> [clears throat] >> because of the situation that we're in. We want to make sure that individuals know what's going on so that they can make decisions. So, at first we did the fiscal analysis and the staffing review, review and employment area identification, that's where we are. Next is to make sure that the that we have legal and board authorization and next board meeting will be bringing forth contracts for those individuals that are Chapter 21 contracts. Then we take up notifying the employees once once those decisions have been
028made and then should there be any appeals or staffing adjustments or monitoring that we have to make, we'll make that the following week. So, you're talking about a very compressed amount of time to get all of this done, but we're working very diligently on all of this. And so, I present this to you just knowing that um final recommendation um we proceed immediately with identifying the employee categories. We maintain that full legal and compliance criteria that we've set. We prioritize student achievement. We ensure transparent and defensible I knew it was not defendable defensible decision making and we stabilize the district finances and the academic performance of the district. So, in a nutshell, that's why we're here is to ask you for that approval of the employment areas and to inform you of our processes and
029to ensure that the community knows what we're doing in all transparency and if you have any questions, we're all here to answer those. >> This Any questions I have You said we're in week two right of your timeline? What were some of the findings for week one of the fiscal analysis and staffing review? Oh. >> Um >> See overstaffing? >> To to be very very um uh candid about it, what we were looking at in the fiscal and analysis is the fund balance. It's recommended that you have 2 and 1/2 months of payroll within your fund balance should anything ever happen. That does not exist. We have looked at the excess in invoices that have not been paid. That is that is concerning. The fact that there are no internal controls on the expenditures at
030various cost centers. And I say cost center meaning a department or a school, etc., etc. Uh talk about the realization of there just isn't the financial there's not the financial situation that you would want to see in a school district. So, that's why all of these measures are in place or we're recommending all these measures. >> [snorts] >> Um I don't know do you are you comfortable with giving a target number of what we're looking at in terms of consolidating programs or campuses or you know, what that looks like? How much does that cost the district or save the district? >> Well, I think I think that what we are shooting for is to collectively make a decision such that we have a surplus budget of at least $6 million. So, what is that going
031to translate into? It's going to translate into a lot of these cost-cutting measures that we've talked about. Just think about you know, consolidate restructure a elementary school. Instead of having you know, two principals or three principals, you have one principal. Think about all the personnel that go with just the management of a campus. So, when you put that paper to pencil, you are pencil paper to paper, you're probably around $700,000 alone there. So, you're starting to make a dent and I'm just showing and just telling you these numbers just the preliminary, so please don't take those as as as solid numbers. But those are the kinds of things that we're looking at. So, again, everywhere that we can find an efficiency, we're going to take it. But with the guiding principle that we don't want
032to harm the instructional program. We want to redirect our focus there. >> Yes, at what point during the timeline will you have that those numbers [snorts] so, you know, to to say that the cuts we are making are making a dent, you know, that we're not cutting 10,000 instead of a million, you know, if if if it's up there for grabs or >> Well, we we we have some preliminary pencil, but again, until we knew what areas were going to be approved, we don't want to we didn't want to do too much counting on because again, that's a decision of the board. Um But we've already started in looking at those areas. Um Because we also know some people are retiring. We also know that some people have already said that they're not coming back.
033So, those are automatic kinds of okay, let's look at that area, can we save there? Because again, we don't want to turn [clears throat] the system completely upside down. We want to be as judicious as possible. So, are we going to be working this week and next? We have we're bringing chapter 21 contracts to you next week. So, we're we'll be working fast and furiously on that. >> And when you're saying that you're bringing chapter 21 something or maybe some chapter 21s that are in the list to be eliminated. >> Yes. >> So, not all chapter 21s are going to come for a full piece. >> Correct. >> Whatever you see that the work that will work work better for uh like especially the consolidation of one of the campuses with the others and maybe
034one principal, maybe a vice principal or two. >> Yeah. >> [clears throat] >> Any other [snorts] questions? Thank you all so much. >> Thank you. >> So, at this time we'll I guess there's a Do you have a motion? >> I motion to approve a resolution I'm sorry. I motion to approve the identified employment areas affected by the financial exigency and authorize the superintendent to apply the district reduction in force criteria in accordance with board policy DFFA local. >> Second. >> I'll second. >> Discussion? Any questions? I guess the one question I have, will this presentation be able to be placed online or so that they can see it or part of them I guess on the policy or board agenda or board book that we use? >> So, what I've talked to Anna about
035is we're going to start posting our handouts and we can post this PowerPoint also on our website where people go to see the agenda. It won't be in the board packet because the program we use, but we can post these as a PDF document. >> Okay. >> Correct. >> At this time we'll take a vote. All in favor? All against? Motion passes 5-0. One item 7A, discussion and action to approve a resolution of authorizing the issuance sale and delivery of Corpus Christi Independent School District Maintenance Tax Note Series 2026 and approving other matters incident and related thereto. Velasquez. >> [clears throat] [snorts] >> Good evening. What you've got before you is a letter. This is as recent as this afternoon. >> The Prime >> from Prime Bank. They um they're one of the banks we
036shared with you the last time we met. And they might be on >> [clears throat] >> on the Zoom, I'm not sure. >> Are they on the Zoom link or >> Okay. They had offered to to be there in case we had questions. Primarily what you see is the latest as of today this afternoon. We had a Zoom meeting along with the financial advisors, our bond counsel, or loan attorney, Mr. Juan Aguilera from Stahmann and Ponik. Um Dr. Reyna was present and so was our our superintendent, Mr. Grill. What you see before you is simply a summary of the arrangements or the agreement that you'll find in the >> [clears throat] >> in the document on the that Mr. Aguilera will present to you. The loan is gone from 7. 25 to a 7% interest.
037They're requesting that we establish an account with their bank, which will secure our proceeds, our tax proceeds, in other words, securing the the note, which is as acceptable to us. They'll also provide us with interest. It'll bear interest while it sits by the time that the payments are made. We'll also have access to that account to draw from it as we need to. The initial deposits will come in hopefully by the middle of this month, which is maybe next week, and we'll draw approximately 1.5 million to make payments and so forth down the road and the month after that. Simply to secure our payroll and some other maintenance operation items. You'll see there the third-party fee will be incurred. Simply their attorneys or legal department will incur that cost. Processing fee is about $1,295. All
038right. If you have any other questions, I'd be happy to entertain. Uh you'll see a schedule in the back. payment schedule of the drawdowns. We won't take all the money up front. We'll take them in portions as we need it, which in turn will save us interest. We don't start accruing interest until we take that those funds in into possession. Our first payment will come in December. And you'll see the number there, approximately a million. In January we'll have another one. February, and then we'll close in in March. We made made good on the last loan that we got. It was much larger than this, and we anticipate or the district anticipates meeting their responsibility the same way as they did the last one. >> Can you give a little bit more information on the
039account to secure? It's not for us to have them as our depository or >> No, sir. >> Right. >> No, sir. We have other banks. We have actually Lone Star Investment and two others that escape my mind right now that where we can transfer funds to. If you think back at the reports that you got recently, you there's about three other banks where we've got some small amounts in our larger numbers, but this is simply as as a safety measure for this bank. We have access to those funds as well. We anticipate also opening another account with that bank simply to do as a clearing house. Funds that come from there, we can also uh make the payment and transfer over to our banks. They're asking us to to leave the funds there and they'll
040match the funds that we would earn or the interest we would earn at Lone Star our investment which is not a bad idea. It would save us some time and effort. >> I have a quick question. So, the numbers did change we noticed you mentioned that it's different now from the last time. I think last time was on three three something. Um does that mean that we don't need the other >> Yes. I'd like to have one bill, not too many bills. I'm sure our superintendent concurs. And so does the office. >> What necessitated this is when we were >> Prime was with Valley Bank. They they wanted to get an attorney general opinion and it was just going to delay getting the funds. And we need the funds by May 15th. And so Prime
041stepped up and said they were willing to loan us the full amount. It is a convenience only having one bank to pay instead of two. But um it was really about the necessity to just get the funds here. So, we could make payroll happen. >> No, that's fine. >> Where >> on the attorney general lawsuit the loan that we approved last year for two years. >> The letter from the from the attorney general was as such I think originally, but attorney general's letters are simply an opinion based on a formula and the amount of money borrowing. We exceed that formula, but we still pay within a year. >> So, we have to go by >> No, [clears throat] we don't have to at this time cuz we're going to meet the the criteria of 1
042year. We plan to pay it within that term. Mr. Aguilera can explain it a little bit further in detail regarding the order. Thank you. >> Thank you, Robert. >> Good evening. My name is Juan Aguilera with the the law firm of Escamilla and Ponek and as you know, we we serve as the district's bond attorneys. So, you know, that this then exclusively just with with with finances what when you see me come here. Uh so, that that is a very good question on the the tax on the Attorney General's opinion. The uh we generally will see an Attorney General's uh uh opinion where they will review the the transcript. In this case, uh the uh the education code uh provides that if you're going to borrow money for 1 year, you do not have to
043go through the through the Attorney General's office. So, here we're faced with with with a situation. Number one, uh Prime Bank uh requested that the uh the loan be tax exempt. If uh federal tax laws say that if you go and if you're borrowing money for current needs, which payroll and maintenance and operation type of expenses, if you go more than 1 year, if you go 2 years, then it has to be a taxable uh uh loan. So, in order to be able to do a a a a tax exempt loan, uh then it it would we would be be required to be able to do it in 1 year payable in 1 year. That that's also means less interest that you will have to be repaying. Another thing that is uh that that is
044uh that we're considering or the district was was looking at is that if we go through the Texas Attorney General's Office, then you're they require 10 business days to be able to review the the documents and to be able to get their approval. And that will take that also now takes more time. So again, we had two things. One, the bank wanted tax exempt financing and there and then from from your side, from your perspective and the discussions we've had, you want to be able to get the money as soon as possible. So that's the way it is. But our job and we will be we will and the bank will require that we we give an opinion, which we will, a legal opinion that says that the the loan is number one authorized by
045law, you're doing something that's within the law, and then the second thing is that it's a a binding obligation. Banks want to know that. They want to make sure that if they're going to loan you the money, you have a legal and binding obligation to pay them back, which I know you will. And so those are the the dynamics that are involved with with with the financing. Last time again and again it's all it's just like when you go to the bank, you want to borrow money, it's what you can be able to negotiate. The bank we had told the local bank here last time around that the it was not a requirement to go through the Attorney General's Office because it was something that you're going to pay within a year. They they opted
046that they wanted to to do that. So that's them. Prime is asking that they they get tax exempt financing. So that's what we have done. In essence, what we've done we it from from the discussions we've had in the past with Mr. Velasquez, your staff and and I've gone over some of the the the discussions with the the bank. There's been very little changes other than what uh Velasquez was saying, you're looking at a 7% loan. There's going to be three disbursements. There's going to be one that is going to be done in May. Uh um well, May we're we're hoping That's the other thing. We're hoping to be able to to close around uh May 13th. And hopefully and and I'm I'm going to ask Mr. Velasquez I know that uh that uh the
047district will want to make sure we push as hard as we can to make sure that we can get the money as soon as possible. That That That's very important. So, and from what they have in their letter, and I'm you know, and I and I'm reading here it says that the the bank is is pleased to offer a 4 and 1/2 million short-term note with the following conditions and they have in here payments being made uh when are the disbursements in May 13th. You know, we're we we hope that that is something we could be able to do. And in our discussions that we had with them today, that that telephone call, and they they seemed and and they came across as as wanting to make sure that they they're cooperating. They want to
048help. But they're also business people, you know, they want to make sure that their their loan is is going to be uh sufficiently secured and something that they will now uh feel feel comfortable in going out and and and helping helping the district. And I I know that I heard over and over, we want to help the district. So, so that's good. So, the way it's as Mr. Velasquez pointed out, we have incorporated the the terms into the uh the note here that we have. And this is very This is similar to what we did last year, which is uh 1-year term. However, now obviously we're talking about our term amount, 4 and 1/2 million versus 1.4 last time. Uh also the other thing as as I've as I was addressing, it's going to be
049three disbursements. And as Mr. Velasquez said, the way um the bank um offered, and we've incorporated into into the into the the document here, the note, is that interest will accrue from when you receive the money. So, instead of having to pay interest on 4 and 1/2 million from day one, you're only going to pay interest on the money as you receive it. So, that for example, on on um the uh on closing, let's let's assume that we're we're going to be able to make our payment. You're going to the district will receive a million and a half dollars. You're going to start paying interest from that day. On on that time, and then you the interest will start accruing from that time. The next scheduled payment or disbursement that's going to be made to
050the district is going to be June the 12th. Then at that time again, now now you owe 3 million dollars, so then you'll be paying interest on that 3 million dollars. And and so forth. So, so that's that's a that's a good thing that we have overall with with the uh uh with with this loan. Um that that is about it. Unless there's any questions that you might have any on on the legal side um that I I I may be able to address, and I'm happy to address that now. >> I have any questions? There aren't There isn't anything within the terms that state No, they're they're lending us the money in lieu of changing depositories or anything like that, right? Or any >> No, but but they they put it in here in
051in in the uh this is their their offer to you. They they they put it in their letter, and that's something we will discuss with them. And if if if that's if that's your pleasure, that's what you said, fine, we'll [snorts] do that. We'll make sure that it's incorporated into the either into this document or another document, because I it's more from the from the perspective of the the bank. They want to make sure that that that you follow here what what what they have offered. If if you decide to do that. >> Does anybody have any questions? Questions? >> So, what we have with you we have prepared like we did last time the resolution and if it's the the pleasure of the board of a motion to to accept the the the the
052the resolution as presented I think would be in in place. I I would also recommend that that the motion also authorize the the superintendent to be able to make any kind of last minute changes that may be needed uh before and a half million is solid. That's not going to that that will not change but that's what you're authorizing today. The 7% is not going to change that's what we have in here. Uh what I'm saying it's not going to change because it would require us to come back to you again. But for right now, just so that any signatures, anything that it needs to be done that that that you may authorize the the superintendent in any last minute things that they might look at. We you know, one of the things right now
053we got May 13th but they might come back and say well, can we do it on the 15th? Then you allow the superintendent to to be able to do that. But I I know that Mr. Grill and and Mr. Velasquez and we certainly will try to try to get the the money as soon as possible. >> [clears throat] >> So, if if if you could also include in the motion saying we you know, the the adopt the the resolution as presented and also authorize superintendent to be able to negotiate or or authorize uh you know, things that are going to be required for the for the loan. >> No questions in uh it's the recommendation of the district. >> It is. >> [clears throat] >> Motion to approve a resolution authorizing authorizing the issuance, sale,
054and delivery of Crystal City Independent School District Maintenance Tax Note Series 2026 and approving other matters incident related to and authorize the superintendent to make any changes if needed. >> Do I have a second? >> Second. >> Discussion? >> All in favor? All against? Motion passes 5-0. >> Thank you very much and uh >> Thank you, Juan. >> You all have my number. >> [laughter] >> I know I've talked to some of you in the past. I know Mr. Velasquez has my number and and uh and um uh happy to help in any way we can. >> Thank you so much. Thank you very much. >> Do I have a motion to adjourn? >> Motion to adjourn. >> Second. >> Discussion? >> All in favor? All against? Motion passes 5-0.