001Uh item two, board to discuss annual review of existing or consider and take action on the adoption of written policies and procedures for postisssuance compliance. >> The policies that you currently have uh are good. There's nothing changed since last year, but they do have a requirement for annual review just to make sure you're doing what you need to be doing. So, this kind of serves as a reminder, but if you review your policies on an annual basis, that's fine. It doesn't have to be a separate review just when you're reviewing everything. >> Uh item three, board to discuss continuing disclosure obligations. >> Uh you have an obligation with your revenue bond financing. So, Every year we have to file updated financial operating data that's [snorts] the same type that was part of the original offering
002documents. We also file your audit. And the reason for that is if somebody were to buy the bonds today in the secondary market, they would be able to see the same kind of information that the people that bought it in is otherwise they would have to rely on stuff from several years ago. Last year your geo bond issue was a million dollars or more. So we have an obligation on it. It's slightly different. It's a different tier. So all we have to file on it is your audit because this issue is 950,000. There is no continue disclosure obligation on that. It's all being done in the background. You just don't see much about it. Uh item four, board to receive bids for the $950,000 general obligation building [clears throat] bonds of this school district and
003award bonds to the lowest bidder. We ended up with five bids representing uh seven companies. And I'm just going to go through them in the order that they're listed. the guy at the office, he always highlights the winner and it's like you take all the fun out of them, you know? I kind of like to go through them and it's like, hey, there's a putting up got a real for me. Start off with B Financial Securities. That's the underwriting branch of Bank of Oklahoma. It may have been at a net interest cost of 130,177 even, which is an average rate of 5.104980. Next we have First Bethany Bank and Trust out of Bethany bidding in association with the Banker Group out of Oklahoma City. Net cost is 127,7578. Average rate is a 5.010082%. We have
004First United Bank and Trust Company out of Durand and association with Northland Securities out of Minneapolis. Net cost is 124,180 even. That's an average rate of 4.869804%. The exchange bank out of Skyuk net interest cost is $132,300 even rate is a 5.188235%. And then we have Legacy Bank out of Hinton. Net cost is $132,600 even. Average rate is a 5.2%. So you can see we're all relatively close. I think the difference between the high and the winner was actually about 8,000. And that's on a $950,000 bond issue. So they're they're pretty tight. But by law, if you accept any bid, you have to accept the low bid. And in that case, or in this case, it's First United Bank and Trust do ran bidding on Northland Securities with a net interest cost of $124,180 even
005an average rate of 4.869804%. That's what the board chooses. We just need a motion in a second. >> Quick question. You you stated if the board chooses what are our options? >> You can decide not to accept any bids. >> Okay. >> And then you have to go back and publish in the paper again and try to resell them and hope somebody has a lower rate. >> Okay. >> But it's so what would be a reason anybody would do something like that? Is there any instances for that? >> I've [clears throat] never seen one. It's the challenge that you run into is you [snorts] can alienate the people that won this one and you may end up with higher rates. You also don't know what's going to happen in the bond market because right now
006there's more and more impetus for rates to rise and the Fed meets either next week or maybe in two weeks. Uh and they'll determine whether they're going to raise interest rates a quarter point or more or leave them where they are. >> And and the more the talking heads get together, it's more looking like they're going to raise [clears throat] So there's a chance it could go up. >> Could the same be true if you do not accept this today? Do all all [clears throat] five of these companies receive notice? Do they see this same information we have right here? >> Yeah. >> And we just send out that the bids that no one accepted or no bids were accepted >> and that we would go back out in the market at some future day.
007>> Okay. So, it would give one of the four that that didn't have the lowest right here maybe an opportunity to get more aggressive. >> It could. Yes. >> I have a quick question, too. When it says in association with what does that mean? >> It means they don't really have the staff to do the backroom work on a bond issue. >> Okay. >> So, they would work, you know, first Bethany with the Baker group. So the Baker Group has an entire department that works with the Cusk Service Bureau with depository trust company everything that goes into the bond issues. I'm trying to think of an analogy to they don't have the extra piece on the back side. >> I see. So they're going [clears throat] to pay them [snorts] I guess to to work
008out the >> administrative details >> even though we've got First Bethany Bank and Trust listed first. Uh-huh. >> Uh the Baker Group is really the one buying it. But basically what they're going to do, First Bethany is committed to buy those bonds from the Baker Group. >> Okay. >> So the interest rate that you're paying them is slightly higher than the interest rate they would pay First Beth. And that's how they pay for their services is at a spread between those two rates. >> Sure. >> Same is true with the one. [clears throat] >> Yeah. The Exchange Bank and Legacy Bank, honestly, they're just trying to get a deal. They just buy it for their own account. They don't resell it. They just buy it and sit on it >> and be okay financial. >>
009They are another underwriter and they do sell it to their clients. >> I see. >> Is there a time frame if you were to to do that? Is there a time frame you have to wait until >> No, no, >> no. You could just you would have to have another board meeting to set the date, time, and place to sell the bonds. Again, you'd have to publish in the newspaper again. Uh you know, so it' be at least 3 weeks to a month before you could do it. And then that would push you wouldn't get the money till sometime in November, >> depending on what. >> Yeah. I think and and by I know we had gotten it in here and one [clears throat] of the things we talked about was that would give us
010[snorts] the money a month sooner by getting this board meeting which means you're >> yeah the the one silver lining of interest rates being higher is you can invest your bond proceeds and you're earning more money. You know you've already got a set payment coming up but any money you earn before that you can just use similar bond projects. >> Lisa, any thoughts? This is kind of your world, [clears throat] you know? >> No. Um, I don't I don't have any thoughts. I was I I had a question when you tied the the bond market to interest, you know, rates. Um, are they connected? I thought they were not always connected. The bond market is what pretty much all of the biders look at when they're formulating their bids because whether it's federal bonds or
011state bonds, [snorts] county, you know, whatever, they all have to kind of generate the same amount of income otherwise they get stuck with them. So, yeah, they they follow that pretty closely. Uh, and I can give you some information on some relatively recent issues. Trying to find what it's about the same size. Okay. So, Fargo gauge sold August 6. So, it's been about a month and it was a 448 and it was kind of the same thing that's here. It was B. I think they were bidding with Stock Exchange Bank. Omega was a 489 and that was just the Baker group. Cal was a 458. All these were early August. Maretta's a BM3. It was a 483. So rates have not gone down since August. Yeah. >> And again, [clears throat] I don't know [snorts]
012>> when or if they will. >> Yeah. >> Every time something sounds good, then something >> else sounds bad. >> Yeah. I mean, I don't think it I don't know what our previous bonds are at in terms of interest rates. >> They're at different rates. >> Mhm. Do we have any with the First United Bank of Durant? >> I don't know if you have any with those or not. And I don't know if they've got a presence close to you guys now. >> I knew we had some with Bethany. >> Yeah. >> Uh but First United pretty much anywhere they have a presence. >> Uhu, >> they bid on the school moms. And it's they started obviously in Duran but they're up through [clears throat] uh and they're in Norman. >> They have locations here.
013>> Yeah. So that may have been >> that may one of the small regional banks that has gobbled up other regionals and then >> made its way into the metro too. >> Is that the one that's on South like they have a do [clears throat] they have a south like off of I35 and >> honestly I don't know. I know they've got >> fourth >> branches all over the place. >> Huh? >> I know they've got branches all over the place. They've been >> growing for several years. >> I make a motion to approve the bids as received. >> Second. >> Roll call vote. [clears throat] >> Yes. Um, >> sorry. Wste. >> Yes. >> Yates. >> Yes. >> Jack. >> Yes. Item five. Board to consider and take action on a resolution providing for
014the issuance of general obligation building funds in the sum of 950,000 by this school district authorized at an election called and held for such purpose. prescribing a form of bonds, providing for registration thereof, providing for levy of an annual tax for the payment of principal and interest on the same and fixing other details of the issue >> and always refer to this as the kitchen sink resolution. It's everything that goes into the bond issue. It designates UNMB as being a paying [clears throat] agent registar and they've served that purpose last 20 or so years. And basically what they do is when your principal interest payments become due, they send you an invoice. You make one payment to them and then they split it up and pay it to all the individual bond holders. Designates the
015bonds as being book entry. And that means other than the one paper copy we make for the attorney general to review, they're all done electronically. Everything's sold. There's no physical bonds anymore. Provides details of the election, the vote totals, how much has been issued in the past, how much all those kinds of things. Like I said, it's just another one of those things. Most importantly, it gets ready to go in the tax ro so it can be repaid. I make a [clears throat] motion to approve a resolution providing for the issuance of general obligation building bonds in the sum of 950,000 by this [clears throat] school district authorized had an election called and held for such purpose. Prescribing form of prescribing form of bonds providing for registration thereof, providing for levy of an annual tax
016for the payment of principal and interest on the same and fixing other details of the issue. >> Second. >> Roll call vote. >> Reiner. >> Yes. >> Wa. >> Yes. >> Yates. >> Yes. [clears throat] >> Item six. We are adjourned.