001flag 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. Review the agenda and we'll proceed as presented. No public comment from the previous meeting. Move on to authorization of bond resolution. Hi Bridget. [Music] try to do that. Did you hear us? Bridget, can you hear us? Yep, I can hear. Perfect. Can you hear me? Yep, you have the floor. Sorry, our work late. Oh, that's no problem. I know you guys have a busy uh busy agenda tonight. I'll I'll kind of keep it pretty short, actually. So, congratulations first on passing the bond issue. you did what uh kind of few school districts have been able to do in recent years just with tax impacts growing higher for a lot
002of residential property taxpayers. Um but I think you guys came up with a perfect package obviously with the bond issue passing for your voters and uh so great job. uh tonight's meeting we just wanted to kind of gather up and uh do the first uh kind of item in the financing time process that we would talk about generally and that's just to adopt the resolution authorizing the issuance of bonds and that's in your your packet tonight. Um it's a pretty quick resolution. The purpose of it is to really together a bond finance committee that could meet in between uh schoolboard meetings just to make some decisions as we move along. Um so we are uh really uh up against kind of right away this 60-day window for voters to contest the election and that's just
003by state law and that would be up uh July 5th. So as soon as we pass kind of that July 5th mark, we can, you know, get all the documents together in the meantime, but be ready to lock interest rates sometime in July so that then you can adopt uh the final resolution in time for your budget in August for next year. So the the levies for these bonds, it's just a five-year obligation that would start um this current year and then just the four years thereafter. And so uh really tonight process tonight's step is just the first in in that process and it's just to recognize that you know the election did pass. We'll create a bond finance committee and typically in the resolution you'll see that committee is the um typically the board
004chair, the superintendent, the business manager and often one other board member. So it typically is a group of four. Um, and one of the first things we'll talk about is, um, you I I worked on your last bond issue that we did in 2014. Um, that bond was 5.6 million and we, uh, issued that over 10 years. We ended up we broke that up into $5,000 increments to sell to both banks and and uh, individual investors. So, on a $5.6 $6 million bond and broken up into $5,000 increments. We had, you know, 1,120 bonds for your bond issue, a smaller bond, and only over five years, we would have um you know, 580 different bonds to sell. And um you know recently in 2019 we did the $15.1 million Carter County uh hospital bond and
005that one we sold in $5,000 increments and uh mostly to to banks and other investors and that was done in 2019 and um so you know similar process breaking it up into $5,000 increments. We had about 3,000 bonds to sell. And so the smaller bond sometimes we take a look at um you know is it better to just you know offer these to one bank um and Stockman Bank happens to be your local bank for your um you know your accounts and so on and is a significant player in the in the district. So oftent times, you know, on a smaller bond, we'll maybe check in with them and see, you know, you know, could you give a little better rate than we could get on a normal bond offering? And so we're we're in
006the middle of doing one right now, a bond offering for Glasco schools, and it just happens to be the exact number as yours, 2.9 million. Um, it's payable over 15 years. And the rate on that is going to be about five or excuse me, about 4.2% kind of range. So, um, that would just be one of the first steps is, uh, you know, I would check in with Stockman Bank, see if they can do a little better, if it would be a little less. The only thing is you don't end up with having a bond premium. The bond premium could be, you know, say another 100,000 or so for the for the cost of the project. So, one of the other steps we would do right away is let's check in and see kind of
007where the budget is. Do we think we're going to have enough money? You're going to once you issue these bonds, you're going to invest the proceeds because a lot of the work isn't going to start till next year, it sounds like. So if you have 2.9 million and we're investing at the stiff rate of 4.3%, you could earn another 120,000 just over the next year by investing that money in the in the um stiff account. So you that'll be another 100,000 or so for the project. So, there are a lot of things, moving pieces and parts that we'll work on over the next um time frame here. Uh but the kickoff is really tonight's agenda item, which is just to adopt the bond resolution, create the committee, and then we'll put together a time schedule
008and get all, you know, once we have the committee members, we can work around everybody's schedule. It's a busy busy time in the summer. There's usually just a couple of meetings. Um especially if we stream if we decide to streamline it, we can get a little bit better rate just by going directly to something big. But that'll all be information we could kind of circle back and let you know in July at your next board meeting. And then again, the goal is to get everything wrapped up by your August board meeting so it can this bond can appear in the August budget. Um so that's kind of some of the summary items. Uh the bond market's doing well. You know, tariffs tariff concern is has caused rates to move up just a little bit here
009recently. Um and then the other kind of interesting thing that's happened um since you passed the election is just or at the same time as the election, but the um you know legislative session just wrapped up. Uh they changed uh the tax rates lower for residential properties. So that will lower even further the bond impact for this bond issue. So you'll recall we had estimated the bonds would be about $12 a year per $100,000 residential property and again you have a lot of a property mixed in there too. But because the pipelines now with those lower tax rates for residential property, uh the pipelines are going to take even a larger um chunk of your uh of your obligation, you know, before the pipelines last year's tax base. You guys were about 96.6% um pipeline
010concentration or or excuse me, major taxpayers concentration. The majority of that's within the the pipeline. So we we would estimate that, you know, moving on to the tax rules next year with some of the breaks the legislature gave to residential and commercial property, we should see some, you know, lower impacts even over what we projected. So all of that will be good news in August when we when we work to um finalize the budget uh you guys to uh to pass the resolution tonight and then have as part of that resolution maybe the if the board chair, the superintendent, the business manager all want to be on that committee just name one other board member um that would be part of the group and that would be the only other item to to uh kind
011of check the box tonight for the meeting. So Brid, just to clarify, we don't need to talk about the issuance of bonds tonight. That's what the committee is going to decide is how we want to issue those. Yeah. And we can, you know, uh we can always um you know, that'll be kind of a discussion item. There's a lot of uh documents we're getting together in the meantime and we could always have a special um meeting. It's just a matter of, you know, opening up that discussion with Sodma Bank and getting them, you know, to to kind of get back to us on on a rate and then probably at your July meeting, we could circle back with the full board. Okay. Bridget, has there been any conversation with Stocksman Bank yet on your guys'
012side? Nope, we have not. Okay. Just so you're aware of that, there we actually had a conversation with them last week about something totally different and it I just I passed that information on and they were going to pass that to whoever needed to be used to be looking for that after tonight's meeting. Oh, good. Good. Yeah, we we have done um just in the last uh couple of months a couple of closings with Stock Bank. Um and uh Ron O'Donnell is the person out of the billing office that heads up that effort. So yeah. Yeah. Good. So that'll be good. I think uh you know in the past they've always been a big purchaser of the bond. So when we go to offer them if we did break it up into $5,000 increments like
013we just did the like for instance the city of mile city fire station um they were a big participant in that offering and and your prior offerings or just just by their headquarters in my city. they do a really good job. But we uh yeah, we just took close to bond issu or two bond issues where they purchased the entire um offering um instead of breaking it up. So, yep. So, that'll be good. You want to be on that finance committee and who else? Who's on the finance committee? That's not me anymore on the fin. Oh my god. Pretty sure it's you. I think it's you. There's three of you though. Hold on. Got to go. I got moved to IBB. That is finance. That's all. Lisa, Arena, and Stephan are the three IBB finance
014members. You said there would just be a couple of meetings. Bridget. Yeah. Is your couple the same as everybody else's couple? I know that's a good point. So, if we end up going with just a streamline um process of Stockman Bank, that might condense down uh to probably uh you know, two meetings for that committee. But if we do a normal, you know, like we did with your last bond issue and the Carter County Hospital and Mo most bonds, we would do, you know, maybe a couple more. There might be two meetings on the low side and four on the high side. And I have a feeling that Stockman will probably be, you know, giving us a pretty good rate and we probably will, you know, end up, if I were guessing, choosing that route,
015but that'll be, you know, we just want to we we'll have to work down with that first. And those are will happen these summer months. Yeah. Yep. So, we would be wrapped up. Um, and they're always uh, you know, conference call, we can handle a conference call or a Zoom call or a Teams meeting or any of those. We can and usually they're all less than an hour. It's just more of a we send you some information, you take a look at it, and then you guys say, "Yep, that looks good. Let's let's do this or and then let's present to the board and make a recommendation in the July meeting." So the meetings will be Zoom or some sort that makes it easier. Yeah. And again, I really have an inquiry and we'll see
016what Stockland Bank says, but I they just have been um you know, doing such a great job on some recent offerings that we we think that will probably the route maybe we end up deciding to go. It's just a little less work and a little a fewer cost. you don't have to go through like the bond rating process and and some of those you know things that take both take up time and also cost a little bit. The only offsetting factor is we we would we give up on premium and so we take a look at the pros and cons of that as a committee and then be able to move forward. Do you guys want to appoint an alternate then if one of you cannot be there? Reena would fill in if somebody can.
017Okay. Okay. Okay. Perfect. That sounds good. So, yeah. So, we will um we'll kind of gather up and get your schedules and maybe have a a meeting. But it sounds like you are I mean the main thing was underneath the the topic of perhaps just going directly to Stockman Bank um to see if they would um be able to you know we'll we'll present them part of what we do is we'll present them with what um you know the other rates have been comparable financing and see if they can you know meet or beat that and then we'll be and especially because we have this um this Glasgow school bond this that'll um we'll have those breaks on Wednesday. Thank you for taking the time with us. Thanks very much. Thank you. And so you
018just want to adopt the resolution tonight. Um did you are you needing to formally do that next? Yep. We'll formally do that, but I also have I have filament on Tyler stuff too. Oh, great. Okay, great. Well, good. Well, we look forward to uh getting this done and uh the financing should be really favorable and especially when we have kind of all the final numbers with your new taxable value and in August we think the news will be really good for people in the district. Um you know again your tax base is just really strong and vibrant with um all the major taxpayers. So, I think we'll have a good we'll put together a little um kind of almost like a press release that you can send out to um people in the district to
019let them know that the bonds are going to come in lower than we had anticipated in the information. So, that'll be good news. Perfect. Thanks, good. Thanks everybody. Have a good night. You too. Um, we can do them two separate, but then also attached is the stuff from Tyler. So, the first document was the resolution and then all the next ones are from the kids tree. That was a lot. It was a lot of stuff. I just included everything he sent me. So, I'm really sorry. He was gone when I first told him we moved the meeting. Now, I think he was done as quickly as possible. which I really appreciate. We don't have to do it until the end of the month. But um the biggest thing is the preliminary services contract which is
020that big first article. Is that your name? Any questions? Is there any board discussion? Comments. Public comment. Public comment. Discussion. Motion. I move to approve the Bond resolution that present. We'll second the motion. DB moved to approve the bond resolution as presented. Lisa second the motion. Is there any public comment? Public comment. Work comment. DB made the motion to approve the bond resolution as presented. Lee second motion. All those in favor say I. I. All those post and sign. Motion carries. Then we have to approve or not the preliminary services from the chemistry on that same page. Is there any discussion on that? Public comment. Public comment. a motion. I move to approve the the service contract with K Street for the design project high school. I'll second that. BB made the motion to approve
021the preliminary services contract with Kinstry for the design build project of the high school bond. Is there any public comment? Public comment discussion. DB made the motion to approve the preliminary services contract with Mcken Street for the design build project at the high schools. Second and second the motion. All those in favor say I. A little closing sign. Motion carries. I can find where it ends. It begins. Is there any student class report this month? We're going to do this a little different. I'll do a little trustee report and Mr. Captain will give his report um with the rest of the reports being posted and for members reading them we'll ask for any questions but otherwise we talk I'm going to do a quick part two so I can change the audio so just so
022you're aware I'm ending it and then starting it up again. Okay. Do you want me to wait? If you want. Okay.