001[Music] We welcome everyone to this October 20th, 2025 meeting of the course board of trustees. This is a regular board meeting of all items that will be discussed have been due to posted. While this is a meeting in public, it's not a meeting of the public. The board's role is to set goals, approve personal budgets, make cost, and provide oversight. We are not here to manage or solve individual problems. Management is responsible as the superintendent. As a board, we believe that we must educate every child, provide every child the greatest opportunity to learn, maintain a safe and secure environment mentally, physically, emotionally, and academically. These are our core values. We appreciate your interest in the students of CSD, Dr. So, we're going to be honored guest of the course of Canada Middle School. We have
002with us some outstanding students are going to lead us in our pledge of allegiance. So, we've got Janette, Tariq, Dary Hawkins, Kate Lasser, East Cise, and then I heard you go by Addie Ratlin. Addie or To the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Honor the Texas flag. I aliance to thee. One state one and indivisible. What do you think? Lord, we thank you for this day, this day of learning, this day of rest for our students and in some ways for our teachers. We thank you for the board that's here for leadership tonight. We thank you for the district leaders that are in the room and the community members that are interested enough to be
003here. Lord, we ask that you give us the strength to guide our thoughts uh in the best interest of uh the bailies of this district and everything we do here tonight. send your son Jesus Christ and pray. Amen. >> Thank you. We'll do the superintending our first annual homecoming parade a few weeks ago. We had a great turnout. We are excited about that. We're ready for next year already. It'll be bigger and better. So, um, thankful for everybody who put that on for us. Boo on the Block, we will be there on Thursday starting at 3:30 to 5:30. Uh, we'll have a lot of candy to give out to the kids that will be asking for that. We had a win on Friday night with football. So, congratulations to Tiger football. Our Tiger band went
004to competition in Waco and they will be advancing on November the 1st to Flugerville. So, we're excited for them as well. And then also early voting started today and it will end on October 31st and election day is on Tuesday, November the 4th. Thank you. >> Thank you, Stephanie. Uh the common scholarship recorded date. Well, thank you all for having us. Uh today I've got Hagen Barlo uh with us. Hagen is our newest trust officer at Community National. Uh we hired him back in March, so we're certainly appreciative of him and everything he's done for the department. Uh Jared would be here, but he's actually out uh helping with the bond right now, so good reason to miss. Uh but if everyone will join me on page one, I'll jump right into it. Uh on
005page one, we have a uh an overview of your portfolio's asset allocation. You can see that your cash equivalent position uh ended the month of September just under $700,000, about 3.05% of your total market value. Right now, your money market is earning 4.09%. So, that's a really good spot to be in. Uh your equity position ended September at 12.76 million. uh just under 56% of your portfolio. And then those last two line items uh your fixed and mutual funds. Uh the totality of that is really your fixed income portfolio because that mutual fund line, that's your Vanguard uh high income bond fund. Uh so that totals 40.99% or the remainder of your portfolio. You can see your grand total uh down there sits at $22,817,000 uh to end the month of September. So, that's um
006phenomenal. Uh on page two, uh this this page does a really good job showing your year-to- date performance. Uh and it's also kind of a comparative view as well. You see, you kind of have a a column over to the left and that's really your December 31st, 2024. Well, that's close of day. So, it's really where you started the year, right? And then you have the column on the right and that's where you finish the third quarter. Uh I want to point out the uh amount of appreciation that you've seen over the last 9 months. Uh to start the year you at 21.16 million and uh to finish the third quarter you are at 22.88 million. So that's about 1.72 million in growth over the last 9 months. Uh more importantly than that uh that's
007in not sorry that is including uh the $550,000 that we had paid out in scholarships during that time. Of course, the number that everybody wants to know uh is down there at the bottom middle of the page. Uh your total account return uh was 10.72% and that's versus the composite index return of 9.18%. Uh so really strong outperformance there. On page three, you can see where that outperformance comes from. Uh on the large cap position, you see you returned in large cap 15.45% 45% versus the S&P 500 which only returned 14.83%. Again, your large cap position holds about 45% of your entire portfolio. Uh so that's a big makeup of that number, but actually a majority of your outperformance came from your fixed taxable securities where you return 6.05% compared to a 335 and that's
00841% of your portfolio. So that's that's phenomenal outperformance in in fixed income. you really don't see a mode that wide very often. Uh actually all these numbers look pretty good. Maybe with the exception of MCAT, it looks like we outperformed it uh six of the seven different asset classes. So very happy to see that. On page four, page four is just like page two except uh instead of giving a comparison view for year to date, now we're doing a 5-year comparison. So that left column goes all the way back to uh September 30th of 2020. And you can see the portfolio at that time was just $16.76 million. Uh now has grown to 22.88 million. Uh so we're really happy to see that. That's more than $6 million in appreciation. And then the same viewpoint
009in that time being paid out about $2.24 million. Uh so your 5-year time weighted uh annualized return is an $8.48 during that period. And that's versus the composite index return of a 6.86. That is really, really good. We're very happy with that. Uh on page five, uh that's more just longerterm performance information. So, uh please feel free to look at that. Uh but I did just want to give y'all a little bit of information. Something we don't, you know, go over too often because we don't really get into the weeds of it. Uh but your top performers over the last 5 years uh were actually Nvidia uh Google Quanza Services uh which is an energy infrastructure provider uh and Valero Energy. And then uh two of your worst performers were Target and Nike which I
010couldn't believe. I thought my my wife kept Target stock doing pretty well. >> Um and then uh pages 6 through 13. Uh this is going to list your portfolio's holdings. Uh please review that as you see fit. I know it takes a little bit of time. Uh so I'm just going to jump ahead to pages 12 and 13. Uh before I hand this over to Hagen, uh on pages 12 and 13, you can see uh your CD portfolio. Uh you'll notice a few of the names uh seem to be a little bit longer than others. It ends in that uh inv.income, right? So that's the income that we had invested uh that we had spoken about at uh I think it was two meetings ago. Uh, but I do want to point out the rates
011that we ended up getting there. You can see on that first bond, we got a 4.05% 4.05% on the second bond as well. And then down there on page 13, we actually got a 420, which was uh really, really solid. And of course, the Fed meets next week, and they're expected to cut interest rates. So, not only is this currently outperforming your money market position, but it's expected to do even better than that. You'll probably end up with a gain on that. Uh so really good decision there to invest that that accumulated income. Uh but with that being said, I have Hagen here today and I want Hagen to kind of talk about uh the oil and gas portfolio because I know that's where a majority of the income comes for the scholarship distribution. So
012uh I'll let him take it from here. >> Good evening. Thank you for giving me the opportunity to present these uh results to you. So overall uh for trailing 12 months, the fund has produced $223,000 of income just from its oil and gas holdings. Year-to date is about 150,000. Uh on the charts in front of you, you'll see the monthly mineral income of October 24 to September of 25. It is uh not consistent. It is very much up and down. And if you look below, it is the average price per barrel. uh over that same time period. And what I was hoping to find in the data was a correlation between the price of oil and the amount of income you receive. There is no correlation between the price of oil and the amount of
013income you receive. America is to the point in its energy independence to where we act act similarly to OPEC. We produce when we want to produce. We do not produce because we have to produce. And that'll go into the oil market o overview. Last thing I want to say is oil did crash u in in October. So ending September to October, it's down to $57.50, which is roughly a 10% drop since the end of September. Uh however, as you can see, oil, you know, dropping to 60 or less per barrel. That coincides with uh roughly the highest month that you received so far this year in income. So, in terms of American production, as oil goes down because of fracking, we can still produce at a higher rate. Overall, global oil demand rebounded in Q3
014of 2025, rising by 750,000 barrels per day year-over-year. Uh, oil supply surged with OPEC leading a 760,000 barrels per day monthly increase in September, pushing total output to 108 million barrels per day globally. Refinery activity dipped seasonally, but is expected to recover modestly through 2026, which you can see in the results of July, August, and September. We went from 23,000 in income in July down to 10,000 in August. That is expected for the end of uh Q3. And of course, we expect a strong rebound in Q4 and following. If you turn to the next page, just a couple of highlights to overview what we have. The big thing is the price stability. Uh despite geopolitical risk, sanctions, Brent crude prices have hovered around $64 a barrel in September with volatility at historic lows. Again, this
015report is to the end of September. A little bit of volatility did sneak back into the commodities market for October. >> Thank you. >> All right. The next thing is uh construction method for bond. >> So we need to approve our delivery method of construction for the 2025 bond. If it passes, then we will already know what our delivery method is going to be. We we've talked about this a couple of times. There's three different types, but we would like to go with the construction manager at risk or CM. What that means, that's the most common type of delivery method. The contractor is selected any time uh prior to bidding. The contractor will help solicit subcontractors and run the financials. But we will be able to take local bids if if they if the local
016contractors want to bid, we will have that opportunity as well or subcontractors. We would have one main point of contact. If something goes wrong, we can hold them with more liability. Um during construction, there's one check to the contractor per month and then they are responsible for paying the subcontractor. So, um, I'm just asking for approval for us to move forward on picking a type of construction. >> I'll make a motion to approve the construction manager at risk as a delivery method for the 2025 November bond. >> Second. >> We have a motion and a second to approve the delivery method construction manager at risk CM for the 2025 November bond. All those in favor say I. All those say oppos. No. Motion passes. Move to approve the delivery method construction management risk C M
017C M C M C M C M C M C M C M C M C M for the 2025. All right. The next thing is the RDS PD update and recent vehicle purchase by Dr. B. >> All right. President, Mau, um distinguished members of the board, thank you for allowing us to come and present a little bit about the RDSPD tonight. Um, so this is gonna be kind of a quick a quick little over overview maybe. >> I went crazy. >> Yeah. Thank you. Okay. Um so this is just kind of a a quick overview um because the RDSPD so the regional day school program for the deaf um is something that we house in Corsana ISD and we are the fiscal agent for um but it's kind of odd in that it's kind
018of a school within a school. We're actually only one acting member of the course regional district for the deaf because we service 46 school districts. Um we are definitely one of the larger RDSBDs in the state. Um, and we've kind of continued to grow. I'm going to move to the front really quickly just so that you can kind of see an outline. The map that you're looking at is uh it's from like the school district finder like within TEA. Um, but we can't zoom in. If we zoom in too much, uh, you can't see all our districts and if we zoom out to see all our districts, you can't read districts anymore. So, um, but so I'm just going to kind of give you a little bit of a where we go. Okay. So really
019from one point in our in our region that or the region that we service and this is five school districts they get to decide they decide who they have to. So it's from one point to the other point it's almost three and a half hours if one person drove from one to the other. So we actually have four itinerants that that service all. So if um just jump in um so if you find us here in the course of Canada so we're kind of the hub there but we go as far over as Blum we come all the way down we have Peli Mount Kong we have Connelly and Lee which is actually something to be said because Lego has RSV. So, uh, we hook back over. We have Ma Rose. We hook down. Um,
020we kind of swing a little bit because we have Buffalo and Duke. We swing back up to come into Fairfield. We go all the way down to where we have Athens. We swing back around kind of down that 175 corridor where we have uh, Malikov, Eustace, Kim, Scurry, Roser, um, all the way back up to Ferris and hook back over to NS back down. So, we have a lot of districts, which means we have a lot of kiddos, which is awesome. Um, it's something to be said in the program. Um, it's something that's been built um and and it's doing really well. So, I want to give you, like I said, a little bit of an update. We service 65 students in a direct method, which means it's one to one. We have teachers that
021go see those kiddos. So, every day like Canada has teachers that go out into other school districts uh to see those kiddos. Uh consult is more of like a supportive uh thing for the teacher themselves so that they know how to serve and teach students that are deaf and heart of hearing and we have 51 of those that are consult and then 14 of those students are actually bus to us and we have them so we go we're parent advisors as well so we see them in the homes when they turn three they start coming to us so yes we have little babies from Athens that come every day to corona so that they can have the instruction that they need which which is a big deal, right? And that that sets their life. It
022it changes things so that they can have the instruction, the support for the family that they need to have. So that's just kind of our numbers. Couple quick updates just in kind of our DSBD happenings is that um we did see a financial increase. So every student, now it has to be 45 minutes one time a week at least of direct services, but every student is now generating about $6,925,000. um which is something we kind of saw in the past was a little bit lower than that but they have upped it. Our hope is that because they're still in kind of talks about it is that we would actually get even more but we work off of a shortfall for Corsana. So what it means is that whatever our entitlements don't cover is what we
023bill out to those 46 school districts. Um one of the benefits of that is that of course Canon ICD actually does not pay. Um, so while we are one of the biggest districts in the RBSPD, what we basically say is that we acrew enough cost whether it be the lights or the toilet paper in the bathroom or hey, we're bouncing kids back and forth and we're doing it with our transport that we're have extra cost because we are acting as a fiscal agent and they're coming to us so we actually don't pay. We're able to keep that up. Um, we do have a strong fund balance um before our last purchase, which I'm going to tell you about in just a second. um it's kind of right under $200,000 which is the program itself runs
024kind of about 750 $800,000 every year. So with the entitlements we only bill out what's necessary but we do keep a a strong fund balance to make sure if something happened kind of like what I'm about to tell you about we have the funds to make sure that we can um so we do have a strong fund balance. Um we did recently purchase two Corollas. Um, so while it might look like, hey, of course we got some new cars, technically it's the regional day school program for the desk. Um, and the reason we did that is because we were using CISD's white fleet. Um, and that constricts what CISD can do. Um, whether it be like, hey, we're we need to take some kiddos and get them to a UIL event. It's a small group.
025We just need expedition. Well, the expedition's out on a on a route to to the uh for the regional day school. They're in Trinidad. Wait a second. we need it over here. Um, another reason is that, like I said, we have little babies um that don't need to be picked up at 5:30 in the morning. They need to be able to sleep and come straight into campus. And so, we're able to do that. Uh, we have onetoone meeting places with our member districts so that they can come in. So, that was kind of the the thoughts behind behind getting those two vehicles. Like I said, make sure we were being a good steward of those funds and what the need was for the RDSPD and to make sure that we weren't taking all of CISD's
026cars at the same time. So, um we are also able to keep our billing incredibly low. We are one of the lowest in the state. Um which is another reason why a lot of districts like to come to us, right? We bail out for exactly what we need. Um we're very transparent about it. um and we're able to keep those those funds low. Um so again, always making sure we have a good fund balance to make sure that we we have what we need. But um like I said, it is one of the lowest in the state. It's something that we do as um def directors is we keep actually it's actually a spreadsheet that is live updated all the time of our tuition. Um and we are consistently very very low. So that that's
027awesome. And then last but certainly not least is that our sign classes have started. So, it is fall and so free sign language classes um are here on Tuesdays and um it's a great thing for families, but really this the real reason why we do it, right? Everybody likes to learn it. It's cool, but the real reason why we do it is because it grows inclusivity within our community for our kids that are coming here. So, if I have a kiddo that's just, hey, I like sign language and I took a class with my mom at the at the admin building, but I'm in third grade, but so is my friend that's bust here from Ferris and now we can talk, you know, and so it grows that environment and that culture. So, that's that's
028probably it's not probably it's really why we do it, but it's also really fun to say, "Hey, come learn sign language." So, uh that's kind of the biggest updates right now. Of course, we have management board meetings every year twice a year. Miss How is up to date on all of those things um as the super as one of the superintendents that's acting within that management board. Um but we always like to give you guys an update too, especially if there's been a big purchase. Um and so that way you have a good understanding of kind of what happened. So any questions at all? >> What was the cost for the two? >> It was right uh kind of right at 48,000 because we got two Anything else? >> Thank you, Dr. Next thing is
029a CH high school the flex day school day program. Okay, >> Miss Mr. For farmer board members uh in board book you have our optional flexible school day program application. Uh this is how we fund night school. Uh the application is the same as last year's uh which TEA approved last October. We need to renew it yearly and you guys have to approve it. Uh this program allows students to combine hours for multiple days so that the school can receive funding for a full-time student. So basically they come in on a Tuesday night and then they come in on a Wednesday night. That equals one day uh and we get one day's funding for that student. So last year we received uh $25,000. Um this is money that the district has never received uh in
030this way. So uh try to do you know it it depends on how attendance is but I think they average 25 30 kids there a night. So, uh, any questions? >> It It's going to be around like 35 or 40 maybe active students. I think each night they average 25 to 30, something like that. >> Kind of depends on their work schedule, too, of what nights they're there. Any other questions? Move >> to approve the optional flexible school day program application as presented. >> We have a motion second to approve the optional flexible school day program application presented. All those in favor say I. All those say no. Motion passes. Move to approve the optional flexible day school day program application presented. Thank you. Thank you. >> The next thing is consent agenda motion. >>
031We have a motion to say approve the consent agenda. All in favor say I. >> All post say no. Motion pass. The motion passes. The consent agenda is approved. We will now journ into a close session by Texas government code section 551-4. Thank you.