001Afternoon. All right. I did include in your board packet the certified property values that we receive from both uh Washington and Austin counties. Um just a quick uh reminder that these these certified values are due each year by July 25th. We did receive those actually a little bit early this year. I'd like to give my compliments to our chief appraisers for getting that information to us as soon as they can, especially with all the changes we have this year. Uh they did give us reports on the what is now current $100,000 homestead exemption property values and then the anticipated $140,000 homestead values. Uh that's they were directed to do that. that um that's we need both sets of information to do our finance calculations for revenue calc and so the $140,000 exemption property value using
002to report to TEA uh which generates our maximum compressed tax rate which we'll talk about a little bit more in here in a few minutes. So just letting you know that those are the values that we were actually uh required to to input to TEA's worksheet. So just a couple of u different tax rates. We have an M and an INS tax rate. And those two different tax rates are both funded on our certified property values that we receive. Um we have formulas that basically seesaw back and forth between state and local. If our local values increase and therefore our local uh tax collections increase, then typically our state revenue decreases to kind of maintain a balance, an offset. Uh there are changes this year, of course, with uh the legislation instituting what we expect
003will pass in November as a a new $140,000 homestead. Uh of course, the result of that is we have less value that we can tax on. So that will slightly I don't want to know I don't really want to say increase our state revenue uh because there is still compression going on as well. So that's another factor. Uh there is additional compression for the tax rates this year. The floor and the ceiling has both been have both been modified this year. So while there is a decrease in our value because of the new exemption, we also will still have decreased uh tax rate because of compression. So it probably isn't decreasing as much as it would have had the property values not been had the homestead value not gone up. So it is it is
004all interconnected to each other. Uh I did put in there just for a reference, you can see there at the in in the board notes that um our certified value last year was roughly 4.8 8 million. Uh this year it's just a hair over five, excuse me, 4.8 billion. Wrong term there. This year it's just a hair over five billion. So officially we're looking at a 3.92% increase. But again, keep in mind we are kind of comparing apples to oranges because the 4.8 billion was at the $100,000 exemption rate and the 5.0 billion is at the 140,000 exemption rate. But that's the way that TEA asked us to put the numbers into their their uh template to calculate our rate. So that is officially what we're going to say the increase was. If it were
005not for the uh change homestead exemption value, our increase rate would probably be closer to 13%. So it is definitely having effect, which is the whole point of the homestead exemption, which is to not raise the value prop value property values too much. keep that in check and therefore pass some savings on to the to the voters. Are there any questions in particular about the property rates? Can I just point out to the board that we do have Diane here? Yes. This afternoon, thank you for waving. So, it's our chief tax appraiser as most of you know. Um she's put her on the spot here, but she's available for questions of course if you have any. Anything? Great job getting it in early. Everybody good? Okay. Um, thank you, Darl. Um, we're going to move
006on to discuss the tax rate. Matt Lee with Norton Ross and Fulbright. Um, and then is this where Steve's going to come in? I'm sorry. Um, this is for the the Vader M that would be called on board the board's August 12th meeting and the defendants. What is that? Oh, defeasence resolution. That one resolution INS that may be approved on the board meeting on August 12th also. Absolutely. Over that one. Uh, thanks for having me again. My name my name is Matt Lee with the law firm of Norton Rose Fulbright. We serve as the district's bond council. Um, so we're going to talk about a couple things later on and kind of, you know, what we're looking forward to at the August 12th meeting potentially is when you guys are going to consider adopting the
007budget, the tax rate, and then potentially going out for a bond election. And so, um, the purpose of of me being here today is to just kind of set the table as we work toward that date and any questions that y'all may have at this point in time, so that when we get to August 12th, you guys are informed on exactly what y'all um are doing, the steps that y'all are taking um as we get to that point. So, um, as Daryl mentioned, we the district received its certified value. So, now they're going to look at calculating the tax rate. Um, it's that, um, we need some additional cents on the M side. So to the extent that the board decides to adopt a an M tax rate, your maintenance and operations above the voter
008approval tax rate, by adopting that higher tax rate, it automatically triggers the requirement to call for a voter approval tax rate election with your voters. So that action on August 12th, if you guys decide to do it, the next action item after that will be calling for a an election to go to the voters to ask for an additional two pennies, three pennies, whatever it is. And the revenues that you would generate from that voter approval tax ratification election would go for specifically enumerated items like teacher salaries or whatever you guys are going to be using those funds for. And uh uh you know me or any others from my firm will help y'all with any voter messaging that you would put out to say here's why for use it for at the same time
009you know there's uh potentially an item to go out for a bond election at the same meeting and so that would be separate right the vader would be for the M side for maintenance and operations expenses the bond election would be payable from your INS side, your interest and syncing fund. Those funds, those revenues from that INS to pay off debt service. And so you're required to go out to the voters and ask, hey, we'd like to, you know, we'd like to be authorized by the voters to uh allow us to issue a certain, you know, amount of bonds that'll be stated in the proposition that'll go to the voters. Um, and you know, we anticipate a certain tax rate based on market conditions, which your financial advisor, uh, Steve Perry, will work closely with
010you guys on that communication and sizing the bond appropriately. Um, but that would be on the, uh, INS side of the tax rate. And the this other item that's on here, the defeasence resolution, that's something y'all have adopted each se uh probably the last three or four years now as y'all go to adopt your budget and set your tax rate. Y'all have adopted this defeasance resolution to pay off debt early. I don't have the exact amount of uh debt that y'all paid off early and the interest savings on on that. Um, but that's um I don't know how many people have been on the board over the last couple years and have seen that action item, but it's the same thing that you've kind of been doing as you know each cycle. Um, and so
011what that'll do is it um brings in debt to the current year. You're going to set your tax rate. Any collections you get off that incremental tax uh rate increase will be used to pay off that debt. Like for example, the one that y'all did last year, we are working on that now and we'll be paying off or setting aside funds in an escrow to pay off that debt. So, it's off the district's books. Y'all will be doing the same exercise uh potentially on the uh August 12th meeting as part of the budget tax rate, Vader, bond election, uh and this defeasance resolution. So, they all kind of go into developing that or adopting that tax rate. Happy to answer any questions on those those two items. [Music] I just kind of want clarification on
012this. You said so we were going for two, the Vader and then the other one was was for to help with our infrastructure aging facilities, HVAC, things like that. He he sounded like he said it was going towards INS which is just for debt services. So how can we use that bond if it's to pay for debt services to use it on the infrastructure of the district? so the board could move forward with a with a bond for capital improvements. Um what he was what he was to just to clarify the defease defease uh payment uh you can only pay for your your your debt as you said with your your INS collections. So, um because we collect at a rate um that supersedes the the amount needed to pay our debt because again we
013have such a low INS debt in this district. We've paid beyond that. Um but you can only use that for that debt. Correct. So the conversation that has been had with the strategic planning committee that will be brought forth to you forth to you soon is about uh using that for a a capital improvement bond um that does not exceed our current uh payment if that's clear as clear as mud. Okay. And to further clar or go ahead uh to further clarify the defeasance resolution that would potentially go at the August 12th meeting would only be for existing debt. The bond election order would be for future debt. You would be asking the voters are we authorized to go out and issue bonds to fund additional capital expenditures. But this defeasance resolution would be with
014respect to existing debt and paying off existing debt uh before it's due. Okay. Thank you for the clarification there. I just wanted to make sure cuz it sounded a little a little confusing. I wanted to make sure that we were being as transparent as possible with me. You know, you have to make it fifth grade level or I won't understand you. So, any other questions? Thank you very much. Thank you. Uh, next we consider a possible approval to set the 2025 proposed tax rate for maintenance and operations. Welcome back, Mr. Sinclair. Thank you. Okay. Uh just a quick review here of of how we get to our our maximum compressed rate that TEA authorizes. As I mentioned a few minutes ago, uh we do take our certified property values as of July 25. We feed
015that information into a worksheet uh template that they have on their website and then it computes based on the percent increase of our values from the previous year and based on the state's compression. There's there's actually two compressions that go on here or can be there's there's one from the at the state level. So basically the state's property increase calculations, what they expect statewide that the values have increased over the last year, that influences the state's level of of compression. And so that brings us down to a maximum, any district actually, down to a maximum of 6322, 63.22 cents per $100 evaluation. That's the maximum that any district can have. notwithstanding golden pennies and copper pennies being added, but that's just the basic rate. And then it could go as low as 0.5689. So that's
016our window. Uh when TEA does the calculations based on our property values, the window is somewhere between uh almost 57 cents and just over 63 cents. And so putting our values in uh we come up with6084. So we do have compression because currently we're at 6169. So we do have some compression again this year because we did have a an additional increase in our property values although it was very moderate this year. Uh so we did get a little more compression and then we can of course add back the first five of the eight total golden pennies that is available to any district without voter approval, without any election, just board approval. And we've been doing that and as far as I know probably most districts do that every year. That's been going on now
017for five or six years that that's been available. So uh so if you add those five cents back to that6084 that gets you up to 65.84 cents. And since we have been discussing the possibility of having a Vader, uh, and the possibility of of asking the voters to approve the next three or the last three golden pennies that will give us additional local tax collection revenue and additional state revenue, then if you add those three cents in, that would get you up to 6884. So theoretically we're probably looking at about 60 almost 69 cents if everything goes the way the kind of discussions have been heading. So to make sure we are in a position to move forward if that is what the board decides to do, we need to have a proposed tax rate
018that's at least because that's what will be published in the paper later this week and that will be our official notice to the to the public. And so when the board will not be able to adopt a rate any higher than that, that much or less. So again, we're not talking about the final tax rate today. We're talking about a proposed tax rate that will go in a newspaper notice uh suite. So my recommendation would be to go ahead and set the proposed rate at 70s just to give ourselves a little bit of cushion. That's not much cushion. It's about a penny and well about 1.2 cents. uh right if we go forward with the Vader and of course if that does not materialize then adopting a lower rate is not a problem. It's just
019not going any higher than what we uh published in the paper this week. Hey, just to be clear to everybody that may be listening, your proposed rate was, say it again, 70 cents. And this year's rate is 696. No, 6669. So almost 67 cents. Thank you. That's where I wanted clarification. It we were at 6669 or that's where we're at now, right? With the five with the five pennies. Those pennies. Yes. So the proposed rate would be between or excuse me our our compressed rate would be between 56 uh or 63. Why would we not use 63 add the 8 cents and propose 71 cents? Well, we can, but I've already sent ourselves wiggle room. I've already put the information into the TA's website and they're coming back with the number of 6084. So they're
020coming back at the 68 60 cents point8. Yeah. 60.8 8 cents as our MCR. So if that is our MCR, we can only go up 8 cents from there. Or at least we're talking about going up 5 cents and then possibly three more to make eight total. So maybe we could. I mean, if that's fine. We I'm just trying to understand where the six or the 70 came from. if we're going to use the the maximum compressed rate versus where we were because we were at 61 plus the five which puts us at 66 and now we're basically going to 60 plus the five. It's just I was just trying to understand yeah where it came from. Okay. Yeah. Again, this is not the INS. We're not touching that on. This is just M is
021all we're talking about right now. So, yes, we could do 71. We could do anything. Anything that's in my opinion, anything that's 70 cents or higher would be fine, but I think 70 is enough to accommodate what the possible plans are. [Music] We should probably make sure we can we talk about that though. Um, I don't I don't know if that matters to you guys. Uh, cuz whatever we set it at is our max, right? We can always lower it on the 12th. Correct, Darl? Yes. So, whatever we put here is our ceiling. TA comes back and they screwed up something. Excuse my language, but they messed something up. um and we're off by a penny, then we if we decide to do a Vader and we're only able to do two cents instead of
022three cents, that shoots ourselves in the foot cuz on the 12th we're ultimately making the decision and if we lower it down, then we lower it down, right? I'm not against it, Kyle. I'm speaking out loud. No, that's fine. It's a It's a good thought. I mean, it's not going to do us any damage if we go to know 71 cents instead of 70. It gives us a little cushion just to be safe cuz we're going to come back down with it anyway. So, if you feel comfortable with that, if the board has no I guess my thoughts are this is a worst case scenario. We're putting a notice out to the paper, hey, worst case it's going to be this, but probably going to be lower. Yeah, we listen if I'm I don't have
023any problems with it. If anybody else does, I mean, I think it's just gives us a So, yeah, if it makes you comfortable that absolutely CA sorry decision, it's it's fine. Do you see any problem with it? Is there a negative to that, Darl? Not as far as I can tell. No, it should be fine. No, I don't I don't send negative. Uh I feel good with the numbers. Um just to be clear, um Daryl's communicated with TEA. I feel like we're covered by the numbers he's proposed. But if you want to go a little higher than that, then uh there's there's no there's no reason not to as long long as it's clearly communicated to the community. Yeah. And and it appears to be in alignment with other school districts like uh Round Rock,
024Grapevine, Collieville, you know, stand at 7.1, 7.2, to uh come you know or other ISDs that are similar to us that 7.1 is a conservative number it's it's uh it's not the it's not the lowest that you can have 71 is u so it is a fair number it's not out of bounds just uh my question is whenever we're talking with tea as far as setting how precise are they typically at the outset this process of submitting our property value and then calculating a compressed tax rate has only been in existence since 2019 19 when they first started doing compression. So, I mean, it's been several years. I'm personally not aware that at the school I was at before or here that there's ever been something come back and they said, "Oh, no. We got
025it wrong and we got to change it." I don't think that's very likely, but again, I'm about things that possibly go wrong or that could be changed, need to have change or adjustments at the last minute. So, I mean, I'm perfectly fine with the 71 cents. I I don't think there's anything wrong with that. Thanks, D. Anybody else? I'll just Okay, I'll make a motion to set the proposed 2025 tax rate at 71. Should I keep the 22 or does that make a difference? 0.7122, which is the max. Yeah, 7122 for maintenance and operations per $100 valuation as Okay. A motion has been made by Kyle Hafner, seconded by Justin Collie to set the proposed 2025 tax rate at 7122 for maintenance and operations per $100 valuation as presented. All in favor? I. All opposed?
026Motion carries. Uh, next to consider possible approval to set the 2025 uh INS tax rate. And again, Mr. Sinclair. Okay, this one's a lot less complicated. There is no compression. There's no formulas. There's no no uh documentation or submitted to TEA to to figure any of this out. Uh we've had a INS tax rate of 8 cents for quite some time now. As we were just discussing earlier, uh we're looking at the possibility of having a bond election and we've been told by our financial adviser that if we proceed with that, if the board approves that and the voters approve that, that we can actually uh have some new debt, new bond sale with the 8 cents we already have in place because we have been overpaying, overcoling and overpaying on our debt, paying things
027off early. So, we do have some capacity there. So, uh, based on all the information that we've been discussing over the last several months and plans we may have, I would suggest that we continue to keep our INS tax rate at 8 cents. I I just want to say this out loud again. Again, we're talking about going out for a bond worth millions of dollars to help with infrastructure needs of the district with zero impact to the taxpayers. We will have 08 cents. So, I just want to make sure we cannot I think I'm going to get t-shirts made that say that cuz we cannot say that enough to the community that they need to know. We are doing everything and working as hard as we can to try to solve some of these problems
028with our our campuses that the principles and the staff and the and the community knows about. And so, that's just something we need to shout it from the rooftop. So, every time you get an opportunity to say it on this microphone, I'm going to say it. And anytime I see somebody in the community, I'm going to say it. So we just really got to drive that home that this is an great opportunity for us because we have been so fiscally responsible with our INS debt that we have this opportunity that most districts don't get. So yeah, no impact. To add context to that, our 8 cents is the closest district that's 13 schools is 10 cents. The next closest tax rate is 10 cents higher than that 8 cents. The next closest is at 18
029cents. Then after that it's 19. Then we're into the 20s, the 30s, and some even at 40 cents. Everybody talks about how great Waller is. Theirs is at 44 cents. We are at eight. So yes, echo exactly what you just said. I don't need to, but I just want to make you go 13 school districts and draw a circle around and go in any direction, whether it's College Station, whether it's Celely, go anywhere you want. None of them are within 10 cents, which means you could double ours and we're still less than everybody around us. And we're not even wanting to increase this at all. Well, thanks. Let's get those uh t-shirts. Yeah. And we we talk about it as we were, you know, one of the lowest tax rates in the state, but you
030know, we're seeing the repercussions of that with our campuses and the HVACs and the roofs and things like that. So, it's it is something to be proud of, but at the same time, it's it's coming at a detriment to our kids and to our facilities. and we're we're in a position and Clay and his team have trying to be creative and find ways to help us get some relief there. So hopefully what happened at the schools in the hell this year we don't have following coming up. So yeah, like I said, it's it's a good thing, but you know, it comes with a cost to the district. Yeah. Let me um let me while we're talking about it, I'll clarify just a little bit and then I'll talk to this here in a few minutes,
031but um yes, while we are a proud conservative community, um your INS rate can be too low. You need a you need a healthy amount of debt. To me, a healthy amount of debt is is actually much more conservative. Case in point, uh the middle school and junior high right now, um when you have situations like that, you're going to pay regardless. You're going to be writing a check regardless. Let's be um strategic and forward thinking and consider using INS money for that instead of being reactive and writing checks out of EMO which could instead be going to our teachers. So that's really the conversation that's being had with the strategic planning committee that will be pitched to the board in the near future. It's a great point. Thank you. Okay. No, I was going
032to make a motion. Let me see here. I would like to make a motion to set the proposed 2025 tax rate at 8 cents for interest in seeking per $100 valuation as presented. I second it. Okay. Motion has been made by Archer Archer uh seconded by Bonnie Gmire to set the proposed 2025 tax rate at 08 for interest and seeking per 100 valuation as presented. All in favor? I. All opposed. The motion carries. Okay. Uh, next is to set a date and time for the public meeting to hear public comments on the 2025 2026 proposed school district budget and the 2025 proposed tax rate. Once again, Mr. Sinclair, you have the floor. the amount of debt is actually as already mentioned, we're looking at having our meeting to adopt the tax rate and budgets and
033possible other uh election notifications and everything on August the 12th. So, we're recommending to have a public hearing just before that meeting on August the 12th uh at our what would be our regular board meeting uh being changed from go into our teachers. So that's really the conversation. Week after that normally is when it would be moving it up to the 12th. Uh due to the fact that we do have timeline constraints on uh ordering a Vader and possibly ordering a bond election because we have timeline constraints. We really need to move the date up a bit to accommodate uh those requirements so that we don't miss a deadline and an issue going forward if that's what the board chooses to do. for $100. I present and let me say too by I'll ask Matt
034a question. Legislation right now, special session, they're actually considering this this being an option, a bond only being an option in the fall. Is that correct? I haven't looked at all. Those bills have certainly been filed each legislative session for the past three or four sessions to tinker or limit the number of times you can go out for a bond. Um those bills that were filed in the regular session thankfully didn't make it through. Uh I haven't looked to see if the 18 item agenda that's for the first special session which started on uh July 21 which can only last 30 days. I haven't looked in there to see if there's a similar bill that was filed within there. To the extent that there was a bill in the first called session and that took
035a, you know, it was passed and took effect, it would not take effect until after the call deadline like Daryl mentioned. We're up against, you have to call your bond election 78 days before the November 4th, 2025 election date. So that's Monday the 18th. So that's why y'all are accelerating uh some of these items to the 12th. Um so to the extent any bill was filed in the special session, that special session would end and that bill would become effective after the call deadline. So it wouldn't have an impact on your ability to do a November bond election, but May or subsequent sessions. Thank you. That that was just a a point of clarification uh for people that ask you know well is there a hurry to get it done uh for this you know
036this uh November and um again we have some yeah there is we have some emergency type situations at the middle school and junior high and uh you know some other things we really need to address sooner than later and um there's strong consideration right now in Austin uh that we can only do this in November that the spring won't be an option anymore. So, um it's our best guess um our best guess that um we need to take care of this um right away. Anybody have any questions or concerns about setting the date for this? Okay. What's the rule of the board? I'll uh I'll go ahead and make a motion uh to set the date and time for the public meeting to hear public comments for the 2025 2026 proposed school district budget and
0372025 proposed tax rate for Tuesday, August the 12th at 6 p.m. BM High School lecture rooms 111 and 113 as presented. I second. Okay. The motion has been made by Justin Collie, seconded by Sean Coons to set the date and time for the public meeting to hear public comments on the 2025 2026 proposed school district budget and 2025 proposed tax rate for Tuesday, August 12th, 2025 at 6 p.m. in the Venom High School lecture rooms 111 and 113. All in favor? All oppose? The motion carries. Okay, next we're going to have a strategic planning committee update. Um Klay, is it just you or? Yes. So, Mr. Gumble. Yes. And uh call on Matt again while he's here. Full advantage of him being here. Just going to update you a little bit about um our strategic
038planning committee and some of the work that's been done. And then as I sort of wrap this up, Matt, if you'll talk a little bit about the resolution and some of the conversations we've had lately uh in regards to the work that's being done at the middle school in high. So um again, just a brief update on recent progress we've made um particularly around staff compensation and uh facility improvements. Um we've had two important meetings over this past week. uh the B budget workshop that that you all participated in with Daryl, we took a close look at compensation planning. We reviewed approximately 950,000 in new revenue from House Bill 2. Um that would equate to roughly a 3%ish raise for non-eing staff. Um, if we gave that 0 to one teacher a stipend, kind of
039like the more experienced teachers are getting from the House bill, that 3% drops to about 2.75. That would cost around 600,000. The remaining funds of that 950,000 are expected to support benefit related costs tied to teacher retention. Um, there are also shared projections for future raise scenarios and targeted paygrade increases that would require additional revenue. So, some of what we've talked about here in regards to evader to give some pers perspective to anyone that missed that meeting, a 1% raise for non-eing staff costs about 200,000 with benefits included. Vader could generate an estimated 2.5 million in combined funding from the state and local dedicated specifically to improving staff compensation. Um the committee also focused on facility needs um again using uh local uh sort of uh resources um and talent to take a look at
040our our our facility needs where we are and where we need to go. Um you know this is this is capital improvements again um which include includes like HVAC, roofs, uh plumbing, overall campus safety. The group would prioritize these needs and discuss potential of a bond package one that would not raise as we mentioned just a minute ago the interest in sinking tax rate um but could fund some really critical capital improvement uh needs. Uh the message really was clear um that the group, the strategic planning committee group that you'll hear from uh at a board meeting very soon. They want to support student learning and success by investing in our people and our our campuses. Competitive salaries are essential to attract and retain high quality staff. Um and then of course well-maintained facilities are
041essential for productive learning environment. Now I want to clear this up again every chance I get. Maybe I need a t-shirt as well, Jared. That um you know, your M rate is not intended for capital improvement. That's why you have that's why the state has it set up with M and INS. Um your new buildings, your major capital improvement, that's meant to be that uh that healthy amount of INS debt that um either Sean or Kyle, I can't remember which one of them were talking about, or both of them were talking about early. If you have a um yes, in this conservative community, we would all agree you can have too much INS debt, but you need a healthy amount or you end up in situations like we are now um with the middle school
042and junior high. So that again, that's been um sort of where we are with those conversations. This next strategic planning committee meeting um we had a we we have to land the plane. Okay, we've uh we've been talking about Vader's uh uh for the M rate. We've been talking about um bond debt with the INS rate. Um we're going to have to land the plane with the strategic planning committee in this next meeting and then they're going to bring something um to you um for you to to vote on and and of course as the the school board you have the the final say in that. Do you want to talk a little bit about the resolution and how that can apply? Sure. Uh so just to set the table if if everything continues to
043move forward as we've you know you have approved certain things today. Okay. So, what does that August 12th meeting look like? You're going to have a public hearing that you all have called for that people are going to be able to come and talk about the tax rate and the future of the district and and all that. Um, then you'll consider a budget. Then you'll consider the defeasence resolution because that component will be part of your INS tax rate. Then you'll adopt your tax rate. Assuming you adopt on the M side, assuming you adopt a rate that's higher than your voter approval tax rate, that automatically statutoily triggers the need to call for a voter approval tax rate election, the Vader. So, the next item that will follow after adopting your tax rate will be
044calling for the Vader itself, which our firm will prepare that documentation. It'll be in order calling for a Vader. Uh after the Vader, I presume the uh committee will come up and make their presentation about their findings on the facilities and make a suggestion to the board regarding a bond. Uh your financial adviser, Steve Perry, will give an update on bonding capacity and you know, INS rates and and all that. Then we'll actually call for the bond. So that'll be an order calling for the bond election. That's on your INS side. our firm again will will assist with that. But so assuming you guys call for a bond, assuming the voters approve it, the earliest you'd be able to issue that because there is a canvasing period, a contest period. So the earliest you'd be
045able to issue bonds and get funds in your account is likely early February. So what if you had projects now, especially some of the emergency ones they all talked about, right? You can use your general fund to pay for those projects and reimburse yourself once you get those bond proceeds six months down the road. Take those bond proceeds and reimburse your general fund with those bond proceeds. But to do so, since you're going to be issuing taxexempt bonds, you're going to make several covenants and representations on your ability to issue tax exempt bonds. Uh so at the closing when we issue the bonds, you're going to have a tax certificate that probably the board president will sign. Um, and it's going to say, you know, we had this official intent because typically bond proceeds can
046only be used for capital projects, capitalizable costs. Well, reimbursing your general fund really isn't a capital cost. The underlying project was, but the IRS is going to want to see some sort of documentation, some sort of reasonable official intent that says, "We anticipate issuing bonds down the road to do these projects, and so we're going to adopt this resolution. It'll allow you to look back 60 days from when you adopted it. So, let's say y'all cut a check for one of these projects a month ago. If y'all adopted one today, we'd be able to look back 60 days and pick that up and that would cover us through February when you guys get the bond proceeds. Um, and so that's what that document does. I can't recall if we've done one before, if we even
047had the need to do one before, but that's one that we would recommend to the extent you guys contemplate ex, you know, spending funds to cover some projects that are going to be the subject of this bond election and you would like to reimburse your general fund with those bond proceeds, we would recommend that the board take action in this resolution to do so. And that would be at the August 12th meeting after y'all called for the bond election. about um the recent damage we had and therefore triggered insurance for technically capital improvements. Could that um deductible payment be used? You know, I think it's going to come out to about a million dollars. Could that be used uh for that situation? I mean, could we go back 60 days to when we made that
048first payment to use it for the if we go for this bond? Yeah. So, um, as long as it's, so if the cost of the replacement of the roof is is, you know, a million dollars and you all had a deductible, so you're you're still out of pocket the amount of that deductible, that would be an eligible use of the bond proceeds and thus an eligible component of the reimbursement resolution. We just need to make sure that as we size the bond to find the projects that these projects are included within that bond election and then we would include that in the reimbursement resolution itself. Assuming it fits inside of that, I mean it would it would be able to cover that. Yes, sir. Perfect. That's good news. Yeah, that was a big reason we
049wanted uh Matt to speak with y'all today. Um we've had a couple conversations with him lately. That is great news and uh you we're very excited about that opportunity possibility. Does anybody have any questions? Sounds good. Thank you very much. Thank you. Okay. It is 12:41. The board of trustees is going to go into executive session according to the Texas Open Means Act, Texas Government Code Chapter 551.07. 071 consultation with attorney. All final votes, actions or decisions will be taken in open meetings. Thank you. [Music] It is 1:36. We are coming out of uh open of executive session and with no further business to come before the board, uh this meeting is adjourned.