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WELCOME TO THE BUFORT COUNTY BOARD OF EDUCATION BOARD WORK SESSION OF MARCH 28TH, 2025 AT THE DISTRICT EDUCATIONAL SERVICES CENTER.
UH, IN ACCORDANCE WITH NEW SAFETY AND SECURITY GUIDELINES.
BAGS, BACKPACKS, AND PURSES ARE PROHIBITED BY THE PUBLIC AT THE BEAUFORT COUNTY BOARD OF EDUCATION MEETING.
PUBLIC COMMENTS ARE LIMITED TO THREE MINUTES PER SPEAKER ON BEAUFORT COUNTY SCHOOL DISTRICT SCHOOL RELATED TOPICS.
CITIZENS WISHING TO PARTICIPATE IN PUBLIC COMMENTS SHOULD DO SO IN PERSON OR VIA PHONE.
UH, REQUEST FOR PER OR TO PARTICIPATE IN PUBLIC COMMENTS VIA PHONE WILL BE ACCEPTED ELECTRONICALLY.
YOU CAN FIND THE BEAUFORT, UH, COUNTY PUBLIC COMMENT FORUM ON WEBSITE@WWBUFORTSCHOOLS.NET ABOUT US BOARD OF ED PUBLIC COMMENTS, PLEASE SIGN UP USING THE PUBLIC COMMENT FORM 24 HOURS FROM THE DAY OF THE MEETING.
REQUESTERS WILL RECEIVE A PHONE CALL DURING THEIR RESPECTIVE PUBLIC FORM TIME AND SHOULD BE READY TO SPEAK.
CITIZENS PARTICIPATING IN PERSON MUST FILL OUT A PUBLIC COMMENT CARD THAT CAN BE OBTAINED FROM THE BOARD CLERK UPON ARRIVAL.
AND DO WE HAVE A CALL TO ORDER? DO WE HAVE A, UH, MOTION TO MOVE INTO EXECUTIVE SESSION? IT'S BEEN MOVED AND SECONDED TO MOVE INTO EXECUTIVE SESSION.
WHO WE HAVING GIVING US LEGAL ADVICE THIS MORNING? ANDREW WHITE.
UH, SOMEBODY SAID ANDREA WHITE AND AYE.
ALL THOSE IN FAVOR SIGNIFY BY SAYING AYE.
EVERYONE HERE IN THE SENATOR, UH, SAID, AYE.
UH, MR. SMITH, HOW DO YOU VOTE? NAY.
UH, MS. HAY, HOW DO YOU VOTE? AYE.
UH, PASTOR GORDON, HOW DO YOU VOTE? AYE.
I'D LIKE TO CALL THE MEETING BACK TO ORDER.
UH, MR. VICE CHAIR? MR. VICE CHAIR? MR. VICE CHAIR, DO WE HAVE ANY MOTIONS COMING OUT OF EXECUTIVE SESSION? YES, SIR.
MR. CHAIR AND BOARD, I MOVE THAT THE BOARD OF EDUCATION APPROVE AMENDMENT NUMBER 34 WITH AJAX BUILDING COMPANY LLC FOR THE ST.
HELENA ELEMENTARY SCHOOL, FISCAL YEAR 2026 8% CAPITAL IMPROVEMENT PLAN, INTERIOR RENOVATIONS, REMAINING SCOPE BASED ON THE GUARANTEED MAXIMUM PRICE PROPOSALS OF $2,005,863.
ALL THOSE HERE IN THE BUILDING SIGNIFY BY RAISING YOUR HANDS.
AND ONLINE, DO WE HAVE MS. HAY? HAY? AYE.
UH, MS. UH, BOATWRIGHT, BOATWRIGHT.
UH, MR. CHAIR AND BOARD, THERE'S A SECOND ACTION, WHICH IS I MOVED AT THE BOARD OF EDUCATION APPROVE AMENDMENT NUMBER 35 WITH AJAX BUILDING COMPANY LLC FOR THE JOSEPH S SHANKLIN ELEMENTARY SCHOOL, FISCAL YEAR 2026, 8% CIP INTERIOR RENOVATION SCOPE BASED ON THE GUARANTEED MAXIMUM PRICE PROPOSAL OF $1,670,000.
AND A SECOND, SECOND, SECOND BY MR. SMITH.
ALL THOSE IN FAVOR? AND THE HERE IN THE BOARDROOM SIGNIFY BY RAISING YOUR HAND.
UH, ONLINE, UH, PASTOR GORDON, PASTOR GORDON.
NEXT ITEM IS APPROVAL OF THE AGENDA.
DO I HAVE A MOTION TO APPROVE THE AGENDA? PLEASE
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APPROVE DR.UH, ANY DISCUSSION? HEARING NONE.
ALL THOSE IN FAVOR IN THE ROOM SIGNIFY BY SAYING AYE.
ONLINE, I'M PASTOR GORDON PASS, GORDON AYE.
MS. BOATRIGHT VOTE RIGHT? AYE.
IF YOU PLEASE RISE NOW FOR A MOMENT OR FOR A PLEDGE OF ALLEGIANCE, FOLLOWED BY A MOMENT OF SILENCE TO THE FLAG.
THE FLAG OF THE UNITED STATES OF AMERICA TO, TO REPUBLIC FOR WHICH IT STANDS.
ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR JUSTICE HALL, YOU AND
HAS THE MEDIA BEEN NOTIFIED, MA'AM? MS. JENKIN? YES.
DO WE HAVE ANY PUBLIC COMMENTS FOR TODAY? AH, I SEE A PUBLIC COMMENT COMING UP.
MR. SINGLETON, WOULD YOU PLEASE COME UP AND ADDRESS THE BOARD? THANK YOU, SIR.
GOOD MORNING, MR. CHAIR, BOARD OF COMMISSIONERS, DR. RODRIGUEZ AND TEAM, I WON'T BE BEFORE YOU LONG.
I JUST WANTED TO COME UP AND GIVE MY HEARTFELT THANK YOU, UH, TO THE BEAUFORT COUNTY BOARD OF COMMISSIONERS.
THOSE OF YOU WHO CAME OUT TO THIS PAST WEEKEND'S ANNUAL BEAUFORT, TWILIGHT RUN.
UM, I SAW A FEW FAMILIAR FACES OUT THERE, EVEN SOME THAT WERE, UM, WALKING WITH A SLIGHT JOG EFFECT.
UM, JUST WANTED TO SAY HOW WE REALLY, REALLY APPRECIATE YOU GUYS' SUPPORT.
THIS WAS ONE OF THE BIGGEST TURNOUTS THAT WE HAVE HAD, UM, IN THE ALMOST 15 PLUS YEARS THAT WE HAVE HAD THE BEAUFORT TWILIGHT RUN.
UM, IN ADDITION TO THAT, UM, THIS PAST WEDNESDAY, WE HOSTED OUR ANNUAL KALEIDOSCOPE ARTS FESTIVAL, UM, AND WELCOMED OVER 10 DIFFERENT LOCAL BEAUFORT ARTISTS TO COME OUT AND JUST SHOWCASE THEIR, UM, TALENTS WITH OUR STUDENTS, AS WELL AS HAVING OUR STUDENTS PUT ON, UM, DIFFERENT PERFORMANCES, ART CELEBRATIONS, AND REALLY JUST EMBRACING THE ARTS.
UM, WE COULDN'T DO THIS WORK WITHOUT YOU GUYS AS SUPPORT, SO I JUST WANTED TO COME UP AND PERSONALLY THANK YOU FOR BEING COMMITTED TO RIVERVIEW AND ALLOWING US TO, UH, SHARE THAT GLORY WITH YOU ALL.
NOW IT'S TIME FOR A LITTLE DEBT WORK AND MR. CROSBY.
UM, SO TODAY I'M GOING TO, UH, FIRST INTRODUCE, UH, BRIAN RIC, OUR FINANCIAL ADVISOR AT, WITH COMPASS MUNICIPAL ADVISORS AND FRANNY HEISER IN THE AUDIENCE.
UH, I'M GONNA DO A BRIEF PRESENTATION OF AN OPERATIONAL EXPECTATION FOR YOU FIRST.
AND THEN, UM, MR. NRIC WILL COME UP AND DO HIS DEBT DAY PRESENTATION.
UM, HE'S BEEN COMING TO THE DISTRICT FOR MANY YEARS, PROVIDING AN UPDATE FOR YOU AS REQUIRED BY BOARD POLICY, UH, AND WILL HIT THE HIGHLIGHTS OF MANY OF OUR, OF YOUR, UH, POLICIES, WHICH ARE SUMMARIZED IN THE OPERATIONAL EXPECTATION.
UM, SO TO AT THE END OF THIS, UM, PRESENTATION, HIS PRESENTATION, I WILL BE REQUESTING, UH, A MOTION TO ACCEPT THE OE, UM, 6.9 THROUGH SIX POINT, UH, 17 TODAY.
SO THAT IS THE ONLY ASK OF THE BOARD AND ACTION THAT I'M RECOMMENDING AND REQUESTING.
UH, AND THE MOTION HAS BEEN PROVIDED IN ADVANCE AS WELL.
SO, UM, SO WE GIVE A COMPREHENSIVE LOOK ON IN EACH MARCH ON OUR DEBT SERVICES.
UM, AND WE AFFECTIONATELY CALL IT DEBT DAY.
SO WE, AS FINANCE FOLKS FIND IT EXCITING.
UH, OTHERS OF YOU MAY, EH, IT'S KIND OF OKAY
WE'RE ABLE TO DO MANY OF OUR PROJECTS IN THE LAST, UH, COUP TWO REFERENDUMS WE'VE ABLE TO DO WITHOUT, UH, WELL, THE LAST REFERENDUM WE WERE ABLE TO DO WITHOUT A TAX INCREASE.
SO WE'RE VERY FORTUNATE TO BE ABLE TO MANAGE TO DO THOSE PROJECTS WITHOUT THAT, UH, I DON'T WANNA STEAL ANY MORE THUNDER FROM MR. NRIC.
SO I'M GONNA MOVE ON TO MY, UH, SUMMARY.
UH, SO WE HAVE SOME, AN 8% BOND PRO, UH, PROJECTS UPDATED, UH, IN THE BOND ISSUANCE IN AUGUST, UH, AROUND THAT
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TIMEFRAME.AND ANOTHER 20 20, 23 REFERENDUM WE ESTIMATE IN MAY.
UH, WE DO CURRENTLY HAVE, UH, AA ONE BOND RATING WITH MOODY'S.
UH, WE GET TWO RATINGS, ONE FROM MOODY'S, ONE FROM STANDARD AND POORS, BUT WE ARE AT THE TOP RATING THAT WE CAN POSSIBLY ACHIEVE, UH, FOR OUR SCHOOL DISTRICT.
AND IT IS, UH, JUST UNDER AAA RATING, WHICH YOU MUST HAVE, UH, UH, BE, HAVE A LOT OF INDUSTRY IN YOUR COMMUNITY FOR, TO BE ABLE TO ACHIEVE THAT LEVEL, WHICH WOULD BE SOMETHING MORE LIKE GREENVILLE.
UH, AND THAT IS SOMETHING THAT WE'RE MORE OF A TOURIST INDUSTRY.
SO, UH, BUT DOUBLE A ONE'S VERY GOOD RATING GETS US A LOT OF COMPETITION, UH, AND A LOT, UH, SOME GREAT INTEREST RATES.
UM, SO ONE OF THE PRIMARY ASPECTS OF THIS TODAY, IT, THAT, THAT I WANNA EMPHASIZE IS, UH, ONE OF THE REQUIREMENTS FOR, UH, OF OE SIX POINT 16 IS THAT WE BRING FORWARD ANY UNUSED 8% FUNDS, UM, IN COMPLETED PROJECTS FOR THAT HAVE BEEN COMPLETED.
UM, SO A FEW YEARS I HAVE BEEN PRESENTING TO YOU THOSE TWO, UH, 2018 AND 2019 8% FUNDS.
UH, ONE HAS GROWN TO 5.9 MILLION, ONE TO 3.4, THAT'S INTEREST INCOME ON IN THE INVESTMENTS THAT WE'RE EARNING.
SO THAT THESE ARE BOTH BASICALLY BOND PROCEEDS THAT ARE REMAINING AFTER ALL THE PROJECT FUNDS HAVE BEEN SPENT.
AND THEN IT'S CONTINUOUSLY EARNING INTEREST.
THE BOARD DID COMMIT A YEAR OR SO, A LITTLE MORE AGO, SIX AND A HALF MILLION FOR BEAUFORT, JASPER ACADEMY FOR CAREER EXCELLENCE.
SO I HAVE THAT POT RESERVED SIX AND A HALF MILLION, AND THERE IS A REMAINING 2.8 MILLION OF THOSE FUNDS THAT ARE UNCOMMITTED.
UM, SO WE TOOK A LOOK AT THE 28, 20 20, 20 20, 20 21 AND 2022 8% FUNDS.
AND THERE ARE BOND PREMIUMS AND INTEREST IN THOSE FUNDS AS WELL, THAT TOTAL 2.7 MILLION.
SO COMBINED WITH THE 2.8 AND 2.7, WE HAVE, UH, EIGHT, 8% FUNDS, UNUSED BOND PREMIUMS AND INTEREST OF 5.5 MILLION.
WHAT I AM PROPOSING, UM, SO, AND PER BOARD POLICY BOARD POLICY SAYS, UM, THAT WE WOULD ROLL THOSE FORWARD INTO THE CURRENT CYCLE.
UH, THAT MOTION WAS MADE, UH, THE POLICY WAS MADE SEVERAL YEARS AGO, I THINK, BY MR. STINGER.
UH, AND WE, UH, SO WHAT I PROPOSE IS TO, UH, AND MR. NEWICK IS GOING TO SHOW YOU, UH, A BORROWING, UH, A POTENTIAL BORROWING OF 30 MILLION, UH, WITH OUR PROJECTED LIST THAT WILL COME FORWARD IN THE NEXT FEW MONTHS FROM THE OPERATIONS COMMITTEE.
UH, BUT I PROPOSE TO ADD THIS 5.5 TO THAT LIST TO ALLOW US TO DO ADDITIONAL $5 MILLION OF PROJECTS WITHOUT ANY BORROWING WITH CURRENT CASH ON HAND.
THAT IS AT THE PURVIEW, UH, THE BOARD, BUT IT ALSO ESTABLISHES BOARD POLICY, ESTABLISHES THAT I DO ROLL IT FORWARD.
SO YOU DO HAVE THAT OPPORTUNITY TO USE THOSE ADDITIONAL FUNDS WITH THE PROJECT LIST, IF THAT IS THE WILL OF THE BOARD, UH, MAINTAIN.
UH, NUMBER FOUR IS MAINTAIN A 10% OF INSURED VALUE IN 8% FUNDS.
UH, BELIEVE MR. GEIER MADE THAT MOTION SEVERAL YEARS AGO OR A FEW YEARS AGO.
UM, THE TOTAL INSURED VALUE THIS AT THIS POINT IN TIME IS $1.2 BILLION OF ALL PROPERTIES IN THE SCHOOL DISTRICT.
UH, 10% OF THAT IS 123,000, AND OUR CURRENT, UM, DEBT CAPACITY IS $162,000.
SO THESE FUNDS ARE USED IF, IF IT THERE IS, UH, A CATASTROPHIC EVENT OF ANY KIND, WE, OR HAVE ACCESS TO BORROW FUNDS AGAINST THESE DOLLARS.
UM, SO WE WANTED SOME RESERVES.
UH, HE WANTED TO RESERVE THE 123 AND HAVE ABILITY TO, UH, DO ADDITIONAL PROJECTS OR NEEDS OR TAKE CARE OF WHATEVER INITIATIVES THAT THE BOARD CHOOSES.
SO WE'RE WELL WITHIN THAT POLICY, BOTH FOR FY 24 AND 25.
UH, THE PROJECTED AMOUNT FOR 25 IS 132 MILLION, WHICH IS STILL WELL ABOVE THAT NUMBER.
UH, WE HAVE BONDS OUTSTANDING OF 374 MILLION AS OF THE END OF THE LAST FISCAL YEAR, SO JUNE 30 OF 24, AND THAT IS DOWN $67 MILLION FROM THE PREVIOUS YEAR.
SO THAT WE ARE WORKING HEAVILY ON, UH, REDUCING DEBT, UH, AND BRINGING THAT NUMBER DOWN.
AND SO WE'VE BEEN VERY SUCCESSFUL WITH THAT.
UM, SO, UH, LION'S SHARE OF THAT IS REFERENDUM DEBT, AND THEN A SMALL AMOUNT OF THAT IS 8%.
UM, MR. NGE IS GONNA TALK ABOUT SOME REFINANCING OPPORTUNITIES, WHICH ARE, WE ARE ALSO REQUIRED TO BRING FORWARD IF THE OPPORTUNITIES BECOME AVAILABLE.
AND WE'RE CURRENTLY AT 36.3 MIL.
AND, UM, WE HAVE NO, UH, PLANS TO MAKE THAT ANY CHANGE IN THAT NUMBER AT THIS TIME.
SO, UH, WITH THAT, I'M GONNA TURN IT OVER TO MR. NRIC, UNLESS ANYONE HAS ANY QUESTIONS FOR ME.
AND QUESTION FROM THE BOARD FROM, I'LL BE AVAILABLE THROUGHOUT HIS PRESENTATION AS WELL, IF YOU HAVE ANY QUESTIONS.
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GOOD MORNING.MORNING, MR. CHAIRMAN, MEMBERS OF THE BOARD, DR. RODRIGUEZ, THANK YOU FOR INVITING ME BACK FOR ANOTHER, UH, YEAR OF DEBT DAY, AS WE LIKE TO CALL IT.
UM, I DUNNO HOW MANY YEARS I'VE, I'VE DONE THESE CONSECUTIVELY, BUT I'M GONNA GO WITH PROBABLY AROUND 10 ISH.
UH, IT IS MY FAVORITE SUBJECT AND, UH, UH, I DON'T GET TO TALK ABOUT IT IN LENGTH EVERY DAY.
SO, UH, I'LL JUST GIVE THAT DISCLAIMER.
UH, NORMALLY THIS CAN TAKE ME UP TO AN HOUR TO GO THROUGH.
WE CAN ABBREVIATE THAT IF WE NEED TO GET KIND OF MOVING THROUGH IT.
I, IF WE HAVE A LOT OF QUESTIONS, WE CAN KIND OF SLOW IT DOWN.
SO IT'S REALLY KIND OF UP TO YOU.
JUST LET ME KNOW AS I CONTINUE TO GO, UM, FORWARD.
UM, BRIAN, I I WOULD SUGGEST, YOU KNOW, WE HAVE THE TIME, YOU KNOW, DO, DO WHAT YOU NEED.
WE HAVE SOME NEW, UH, BOARD MEMBERS THAT JUST CAME ON IN JANUARY, AND I, I JUST WANNA MAKE SURE WE'RE ALL, UH, REALLY ON A LEVEL PLAYING FIELD WITH AS MUCH INFORMATION AS POSSIBLE.
SO FEEL FREE TO DO WHAT YOU NEED.
SO, UH, THIS PRESENTATION ALIGNS WITH PAST PRESENTATIONS IN TERMS OF FORMAT.
SO IF YOU WANTED TO GO BACK AND LOOK AT SOMETHING, SAY FIVE YEARS AGO, YOU COULD GO BACK AND, AND PULL UP A PRIOR, UM, A PRIOR PRESENTATION AND SEE WHAT THE DIFFERENCES ARE.
BUT WE'LL GO THROUGH, UH, EACH PAGE AND EACH PAGE HAS A SPECIFIC, UM, SET OF INFORMATION THAT ALIGNS WITH THE OVERALL CAPITAL PLAN AND PROVIDING THE NECESSARY FUNDING AT A DEDICATED MILLAGE RATE, UM, FOR YOU TO ACHIEVE YOUR GOALS AND OBJECTIVES.
SO BOTTOM RIGHT HAND CORNER, YOU SEE THE NUMERICAL NUMBER ONE.
UH, WE, WE TITLED THIS REPORT ESTIMATED DEBT ISSUANCE SCHEDULE.
SO THE, THE GOAL AND OBJECTIVE OF THIS REPORT IS TO GIVE YOU AN OVERVIEW OF WHAT BONDS WE'RE GOING TO BE ISSUING THIS YEAR, AND THEN SECONDARILY GOING OVER THE, UM, UH, MOST RECENTLY PASSED BOND REFERENDUM AND HOW THOSE BONDS ARE GOING TO BE ISSUED OVER THE COURSE OF TIME.
SO IF YOU LOOK UNDER, UH, THE, THE FIRST BRACKET, ONE THROUGH 5, 20, 25 CALENDAR YEAR ISSUANCES, YOU'LL SEE WE HAVE THE BOARD APPROVAL DATE OF THE BOND RESOLUTION LISTED.
WE HAVE THE ISSUANCE DATE AND MONTH LISTED, THE SERIES, TITLE AND AMOUNT, AND IN BOLD THE TYPE OF DEBT, GENERAL OBLIGATION BONDS PRIMARILY, AND THEN THE ISSUANCE PURPOSE.
SO YOU CAN, I, YOU KNOW EXACTLY WHAT THE, THE DEBT IS BEING ISSUED FOR.
SO AFTER THE BOND REFERENDUM PASSED, WE MET WITH THE FINANCE COMMITTEE AND WE TALKED ABOUT WHEN WOULD BE THE BEST MONTH EACH YEAR TO ISSUE BONDS.
AND WITHOUT HAVING A, A, A CRYSTAL BALL, JUST IN TERMS OF SUPPLY AND DEMAND IN THE MUNICIPAL BOND MARKET, JANUARY HAS THE LOWEST ISSUANCE.
THE REASON WHY IS THAT MOST PEOPLE ARE OFF IN DECEMBER.
SO WHEN YOU'RE WORKING IN DECEMBER, YOU'RE GETTING READY FOR JANUARY.
IF YOU'RE WORKING IN JANUARY, YOU'RE GETTING READY FOR FEBRUARY.
SO WE MADE A, A STRATEGIC DECISION THAT THE AUDIT COMES OUT IN LATE FALL.
WE GET THAT AUDIT, WE UPDATE NUMBERS, WE UPDATE OFFICIAL STATEMENTS, WE SHIP IT UP TO MOODY'S INVESTOR SERVICE AND, OR STANDARD AND POORS.
AND THEN WE GET OUR SALES PREPARED TO ISSUE DEBT IN JANUARY FOR THE REFERENDUM.
SO THERE WOULD BE AN ANNUAL JANUARY ISSUANCE, WHICH TIES TO A MONTHLY DRAW SCHEDULE THAT WE, WE RECEIVE FROM YOUR PROFESSIONAL CONTRACTING FOLKS.
SO LAST YEAR WE ISSUED A BOND ANTICIPATION NOTE TO GET US SOME BEGINNING FUNDS, AND THEN WE WERE SCHEDULED TO ISSUE THIS JANUARY, 2025, OUR FIRST PERMANENT LONG-TERM, UM, ISSUANCE OF REFERENDUM BONDS.
WE GOT TO JANUARY, AND WITH ALL THE CHANGES AT THE FEDERAL LEVEL, THE BOND MARKET BECAME VERY UNCOOPERATIVE.
UH, AND SO WHAT WE DID IS WE WORKED WITH YOUR FINANCE STAFF AND JUST LOOKED AT WHERE YOU WERE IN TERMS OF DRAWING THAT MONEY DOWN.
AND WE DETERMINED THAT WE DID NOT NEED TO ISSUE THE, UM, THE FULL AMOUNT OF REFERENDUM BONDS WE WERE SCHEDULED TO DO.
AND SO UNDER NUMBER ONE, YOU CAN SEE WE ISSUED 50.3 MILLION OF PERMANENT DEBT, WHICH TOOK OUT THAT SHORT TERM BOND ANTICIPATION.
NOTE THAT PUT US ON THIS EVERY JANUARY CYCLE, LOOKING AT THE DRAW SCHEDULE, YOU WILL NEED MONEY AGAIN AROUND MAY.
SO WE TOOK OUR CALCULATORS OUT AND WE DETERMINED BY NOT ISSUING IN JANUARY AND WAITING UNTIL MAY, AND WE DIDN'T START NOT STARTING THAT INTEREST CLOCK, RIGHT? YOU ISSUED DEBT, YOU START ACCRUING INTEREST THAT YOU HAVE TO PAY.
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ALONE? AND IT WAS OVER $2 MILLION.SO WE FELT GOOD ABOUT THE BALANCE OF INTEREST RATE RISK WITH THE TIMING OF WHEN YOU NEED FUNDS.
SO YOU CAN SEE THAT THE BOARD APPROVED A BOND RESOLUTION FOR ALL THE REFERENDUM DEBT JANUARY 16TH, 2024.
ITEM ONE, WE ISSUED, UM, THE MINIMUM AMOUNT IN JANUARY TO KEEP, TO PAY OFF THAT BOND ANTICIPATION NOTE AND KEEP THE PROGRAM MOVING FORWARD.
AND THEN UNDER NUMBER THREE, I'M GONNA SKIP ONE UNDER NUMBER THREE IN MAY, WE ARE PLANNING ON ISSUING $132.2 MILLION TO KEEP YOU ON TRACK WITH YOUR DRAFT SCHEDULE.
CAN I BREAK IN JUST A SECOND? FOR THE NEW BOARD MEMBERS, UH, THE CITIZENS LED OVERSIGHT COMMITTEE LOOKS AT THE DRAW.
IN OTHER WORDS, HOW MUCH MONEY ARE WE PAYING EVERY MONTH TO THE CONTRACTORS THAT ARE BUILDING IT? SO IT, IT'S A FINE DANCE BETWEEN HAVING THE RIGHT AMOUNT OF MONEY IN THE BANK AND THE TREASURER'S OFFICE TO WHEN THE BILLS COME IN AND WE HAVE TO PAY IT.
UH, NOT ONLY DOES BRIAN MONITOR, BUT THE CLOCK MONITORS IT AS WELL, SO THAT, THAT KEEPS US ON TARGET AND IT'S VERY IMPORTANT THAT WE MENTION THAT.
UM, SO OTHER THAN THE REFERENDUM ISSUANCE THAT WE HAVE SCHEDULED FOR MAY, ITEM NUMBER FOUR YOU CAN SEE IS THE 8% PROGRAM OF $30 MILLION.
SO EVERY YEAR, UM, YOUR OPERATIONS COMMITTEE GOES THROUGH A PROCESS TO DETERMINE 8% PROJECTS.
MS. CROSBY JUST TALKED ABOUT YOUR POLICY ABOUT PAST BORROWINGS AND FUNDS THAT ACCUMULATE THROUGH INTEREST, EARNINGS AND BID PREMIUMS. WHEN WE SELL BONDS, AND WE HAVE SCHEDULED $30 MILLION TO BE ISSUED, UH, USUALLY IN LATE AUGUST IS WHEN WE ISSUE THOSE BONDS, UH, THAT IS A RESOLUTION THAT WOULD COME TO THE BOARD AS LISTED AROUND JUNE OF THIS YEAR.
SO THAT IS A, AN ITEM TO COME IN THE FUTURE.
NOW, BACKING UP TO ITEM NUMBER TWO, THE BOARD PREVIOUSLY AUTHORIZED THE REFINANCING OF A BOND THAT WAS ISSUED IN 2015.
AND YOU'LL SEE ON THE FAR RIGHT WHERE IT SAYS 2015 B REFUNDING THAT ASTERISK, IF YOU GO DOWN AT THE BOTTOM, THAT RESOLUTION BY THE BOARD SAYS, WE CANNOT MOVE FORWARD UNLESS WE ACHIEVE A NET SAVINGS OF 1.5 MILLION.
WE HAVE HAD THE SAVINGS UP TO 1.3 MILLION, AND WHEN THE RESOLUTION WAS ADOPTED AND THE BONDS WERE NOT READY TO BE REFINANCED, THE, THE, THE PAYOFF DATE OF THE 2015 BOND WAS MARCH OF 2025.
SO WE WERE GETTING AHEAD OF AND PREPARING FOR THE, UM, THE REFINANCING.
AT ONE POINT WE WERE AT 1.5 MILLION.
AND THEN INTEREST RATES, AS YOU KNOW, HAVE, HAVE GONE UP AND WE WILL CONTINUE TO MONITOR IT, AND YOU'LL SEE UNDER THE ISSUANCE DATE MONTH, IT SAYS A DAY TO DAY.
SO WE ACTUALLY PUT THAT BOND OUT TO MARKET, AND THEN WE PULLED THE SALE AND IT'S LISTED, UH, IN, IN THE BOND BUYER AND IN, IN WHAT WE CALL THE KIND OF THE BOND WORLD, WHERE YOU SEE ALL THE BOND ISSUES ACROSS THE COUNTRY FOR UNDERWRITERS TO BID ON, IT IS ACTUALLY LISTED AS DAY TO DAY.
SO PEOPLE KNOW IT'S SITTING OUT THERE AND WITH 48 HOURS NOTICE, WE CAN PUT THAT TO THE STREET AND COMPETITIVELY BID IT, BUT WE HAVE TO ACHIEVE A MINIMUM SAVINGS OF 1.5 MILLION.
THEN ITEM NUMBER FIVE, I PURPOSELY LEFT IT ON THERE WITH A STRIKE THROUGH.
SO HISTORICALLY, THIS SCHOOL DISTRICT, UH, NEEDED TO, UH, BORROW A TAX ANTICIPATION NOTE EACH YEAR.
AND SO YOU, YOU START THE FISCAL YEAR ON JULY 1ST, AND YOUR TAX MONEY DOESN'T COME IN SUBSTANTIALLY UNTIL AROUND THE MONTH OF JANUARY.
SOME, A LITTLE BIT IN, IN DECEMBER, LOT IN JANUARY, LOT IN FEBRUARY.
THAT'S JUST HOW THE TAX CYCLE WORKS.
SO YOU'RE DEPLETING YOUR FUND BALANCE AND YOU COULD GO INTO THE RED UNTIL THE TAX CYCLE MONEY COMES IN.
WELL, OVER THE COURSE OF OF YEARS, THE SCHOOL DISTRICT HAS DONE A VERY GOOD JOB AT INCREASING ITS FUND BALANCE AND GETTING IT TO WHERE YOU DO NOT NEED TO ISSUE THAT TAX ANTICIPATION NOTE.
NOW, WHEN YOU DO ISSUE A TAX ANTICIPATION NOTE, YOU HAVE INTEREST EXPENSE THAT YOU HAVE TO PAY ON THOSE BORROWED FUNDS THAT IS OFFSET BY INTEREST EARNINGS, BUT YOU DO HAVE TO PAY THE NET BETWEEN THE TWO, AND YOU HAVE FINANCIAL ADVISOR FEES AND YOU HAVE BOND COUNCIL FEES TO ACTUALLY GO THROUGH THE PROCESS OF ISSUING THAT DEBT.
SO, UM, I WANTED TO PUT IT ON HERE JUST AS A REMINDER, AND I THINK AS AN ACHIEVEMENT POINT, THAT THE DISTRICT HAS AN ADEQUATE FUND BALANCE THAT YOU NO LONGER HAVE TO ISSUE A TAX ANTICIPATION NOTE FOR CASHFLOW PURPOSES,
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MAINLY IN THE MONTHS OF, OF KIND OF NOVEMBER AND OCTOBER, WE SEEMED, IS WHERE THE DEEP POINTS KIND OF COME.SO ANY QUESTIONS ON THE BOND ISSUES THAT ARE LISTED, REALLY ITEMS ONE THROUGH FOUR THAT WE POTENTIALLY COULD ISSUE IN OR PLAN TO ISSUE IN 2025? BRIAN, COULD YOU PLEASE TELL THE NEW BOARD MEMBERS THE LENGTH, THE TERM OF THE 8% BONDS AND THE TERM FOR THE REFERENDUM BONDS? YES.
UH, SO THE REFERENDUM BONDS, WE HAVE A 25 YEAR REPAYMENT.
A LOT OF THE BONDS ARE, HAVE SOME PRINCIPLE ON THE FRONT END, AND I'LL SHOW YOU THAT IN A MINUTE.
UM, AND THEN EACH YEAR WE ISSUE, WE SHORTEN THE TERM, SO THE TERM DOESN'T INCREASE.
SO WE START WITH 25 YEARS, THEN WE GO 24, 23, 22 REPORTING IN PROGRESS.
AND I'LL, I'LL SHOW YOU THAT HERE IN A MINUTE.
ON THE DEBT SERVICE, ON THE 8%, I'M GONNA DIGRESS A LITTLE BIT.
WHEN I FIRST, I'VE BEEN WORKING WITH THE DISTRICT FOR ABOUT 20 YEARS NOW, AND WHEN I FIRST, UH, STARTED WORKING WITH THE DISTRICT, WE HAD A SITUATION WHERE THE 8% SCHEDULE WAS, WE WERE, WE WERE GONNA ACTUALLY GO NEGATIVE.
WE WERE SPENDING MONEY FASTER THAN WE WERE PAYING IT OFF.
AND, UM, THROUGH A LOT OF HARD WORK, WE REVERSED THAT AND WE, AT ONE POINT WERE ISSUING 8% BONDS WITH A FIVE YEAR REPAYMENT.
WE NOW HAVE IT DOWN TO A TWO YEAR REPAYMENT.
AND SO THE, THE QUESTION IS ALWAYS POSED TO ME, WELL, YOU KNOW, IT'S LIKE THIS BALANCE OF TAXATION VERSUS NEEDS TAXATION VERSUS NEEDS.
IN A PERFECT WORLD, WE WOULD PAY THE BOT OFF IN ONE YEAR, AND WE HAVE DONE THAT.
THERE HAS BEEN A FEW YEARS AS THE REFERENDUM'S BEEN KIND OF COMING, AND WE HAVEN'T ACTUALLY ISSUED THE DEBT YET.
THERE HAVE BEEN SOME OPPORTUNITIES WHERE WE HAVE DONE A ONE YEAR, UH, PAYBACK ON, UM, ON 8%, BUT RIGHT NOW WE ARE AT A TWO YEAR PAYBACK VERSUS A FIVE YEAR PAYBACK.
AND WITHOUT THAT TWO YEAR PAYBACK, YOU'LL SEE HERE IN A MINUTE, YOU WOULD PROBABLY VIOLATE YOUR POLICY ON HAVING ENOUGH DEBT LIMIT AVAILABLE FOR THE UN THE, THE UNKNOWN, RIGHT? THE HURRICANE THAT THAT HITS.
YOU, YOUR, YOUR, YOUR 8% DEBT LIMIT IS AVAILABLE TO YOU FOR THAT POTENTIAL EMERGENCY.
ALL THESE ITEMS ROLL BACK TO YOUR CREDIT RATING AS WELL.
AND I'LL KIND OF FINISH UP TALKING ABOUT YOUR CREDIT RATING AND SHOW YOU THE PYRAMID OF ALL THE DIFFERENT CREDIT RATINGS, SO YOU CAN BETTER, I THINK, APPRECIATE VISUALLY WHERE YOU ALL SIT.
UM, THAT ADEQUATELY ANSWER THAT QUESTION.
SO THE SECOND PART OF THIS PAGE IS THE 2023 REFERENDUM PERMANENT ISSUANCES.
UH, SO THE REFERENDUM WAS $439,035,000, AND JANUARY OF THIS YEAR, WE ISSUED PERMANENT DEBT OF 50.3 MILLION MAY OF THIS YEAR.
WE PLAN ON ISSUING 132.2 MILLION, AND THEN YOU CAN SEE WE'RE BACK ON THE JANUARY SCHEDULE, UH, JANUARY TWENTY, TWENTY SIX, A HUNDRED TWENTY FIVE 0.5 MILLION, AND THEN JANUARY OF 2027, FINISHING UP WITH 131 POINT, UH, OH THREE FIVE, THE, THE 35,000.
DID YOU EXPLAIN TO THE NEW BOARD MEMBERS ABOUT WHY WE JUST DON'T BORROW IT ALL AT ONCE? SO THE REASON WE DON'T BORROW IT ALL AT ONCE IS YOU HAVE SOME TAX LAW IN TERMS OF WHAT'S CALLED A REASONABLE EXPECTATION.
WHEN YOU BORROW MONEY, YOU NEED TO REASONABLY EXPECT TO REPAY IT TO USE THE FUNDS IN OVER A THREE YEAR PERIOD.
NUMBER TWO, IF YOU BORROW IT ALL AT ONCE, AND THERE'S A DIFFERENCE BETWEEN THE BORROWING RATE AND THE INVESTMENT RATE.
YOU HAVE NEGATIVE CARRY, AND SO YOU HAVE A, A COST TO, TO, UM, TO THAT.
AND I, THOSE, THOSE ARE THE, THE MAJOR FACTORS, UM, THAT DETERMINE FOR US TO WORK WITH THE DRAW SCHEDULE AND DO AN ANNUAL ISSUANCE.
AND WE ALSO HAVE SOME FLEXIBILITY.
I MEAN, IF YOU NEED TO ISSUE DEBT MORE QUICKLY BECAUSE YOU WANNA BRING PROJECTS ONLINE MORE QUICKLY AND YOU HAVE CAPACITY TO DO SO, UM, WE HAVE THE FLEXIBILITY TO DO THAT IF WE WERE TO ISSUE IT ALL AT ONCE, YOU KNOW, WE'VE LOCKED OURSELVES IN AND WE DON'T HAVE ANY FLEXIBILITY AT THAT POINT.
SO THERE'S A NUMBER OF FACTORS, BUT IT REALLY IS ABOUT THE DRAW SCHEDULE THAT DRIVES THE NEED, AND THEN VARIOUS, UM, TAX RELATED ITEMS. OKAY.
ANY QUESTIONS ON DEBT ISSUANCES FOR THIS CALENDAR YEAR AND THEN THE DEBT ISSUANCE CYCLE FOR THE, UM, WHAT I CALL THE PHASE TWO REFERENDUM OF 439 MILLION? YES, SIR.
WHAT IS DEATH? WHAT IS DEATH? WHAT, EXCUSE ME, WHAT IS DEATH? WHAT IS IT CALLED NOW? EXCUSE ME, CAN MY TONGUE GOT TIED? WHAT YOU JUST SAID? DEBT, DEBT, DEBT SERVICE.
NO, YOU SAID NO, YOU SAID SOMETHING.
COULD YOU, COULD YOU, COULD YOU, WHEN YOU BREAK, WHEN YOU SAY THOSE WORDS RIGHT NOW, COULD YOU BREAK THE DEFINITIONS DOWN, DOWN ON WHAT THOSE MEANS? SURE.
JUST FOR GENERAL PUPPET, TWO OF PEOPLE MAY BE LISTENING.
[00:30:01]
UM, LET'S JUST ISOLATE TO THE REFERENDUM, RIGHT TO THE BOTTOM PART.WE HAVE, UH, A RESOLUTION THAT THE BOARD ADOPTED, UM, THAT THE PUBLIC VOTED TO APPROVE TO ISSUE 439,000,030 $5,000 WORTH OF BONDS.
AND SO WHEN WE SAY DEBT ISSUANCE, THAT MEANS WE GO THROUGH THE PROCESS OF PUTTING TOGETHER AN OFFICIAL STATEMENT, WHICH IS A PROSPECTUS TO INVESTORS.
WE THEN TAKE THAT AND WE PRESENT IT TO THE RATING AGENCIES, MOODY'S INVESTOR SERVICE, AND I'LL SAY, AND OR STANDARD AND POORS.
'CAUSE SOMETIMES WE ONLY USE ONE RATING TO SAVE, SAVE MONEY.
THEY THEN GIVE US A CREDIT RATING AFTER WE GO THROUGH THE REVIEW PROCESS, WHICH IS USUALLY A PHONE CALL AND THE EXCHANGE OF DATA AUDITS INFORMATION.
AND THEN WE PUBLISH THAT OFFICIAL STATEMENT TO THE MARKETPLACE ON AN A SEVEN DAYS LATER ON A SPECIFIC DATE AND TIME.
USUALLY 11:00 AM IS WHEN WE SELL BONDS.
WE ACCEPT COMPETITIVE BIDS FROM ANY UNDERWRITER ACROSS THE COUNTRY, SO WE CAN GET BIDS OF SEVEN BIDS ON A LARGER ISSUE.
AND IF IT'S A LITTLE SMALLER, WE MIGHT GET 15 BIDS.
I THINK THE MOST WE HAVE IS MAYBE 2021.
WE ACCEPT THE LOWEST INTEREST RATE, WE CHECK THE MATH, EVERYTHING CHECKS OUT, EVERYBODY SIGNS OFF.
AND THEN ABOUT THREE TO FOUR WEEKS LATER, UM, WE PHYSICALLY CLOSE THE BOND ISSUE.
AFTER ALL THE DOCUMENTS ARE BROUGHT TO THE BOARD TO BE SIGNED.
YOUR BOND COUNCIL HANDLES ALL THE PAPERWORK SURROUNDING, UM, THE CREATION OF THE PROSPECTUS AS WELL AS ALL THE CLOSING DOCUMENTS.
THE FINANCIAL ADVISOR HANDLES ALL THE MATHEMATICS AND MAKING SURE THAT, UM, THE, THE AMORTIZATION OF THE REPAYMENT SCHEDULES ALIGN WITH THE CONSTRAINTS OF THE DEBT SERVICE MILLAGE RATE.
DOES THAT ANSWER YOUR QUESTION? YES, SIR.
UH, YEAH, BA BASICALLY TO SUM UP WHAT YOU SAID WAS THAT BASICALLY, UM, YOU PUT THE BIDS OUT THERE AND YOU ALLOW, YOU ALLOW COMPANIES TO BID ON, TO BID ON THE DEBT.
AND BASICALLY THE ONE WITH THE LOW, WITH THE LOWEST, UH, INTEREST RATE IS PRETTY MUCH WHO YOU GO WITH.
WOULD THAT, WOULD THAT BE A, UM, WOULD THAT BE ACCURATE? UH, ASSESSMENT OF THAT? THAT IS, THAT IS 100% ACCURATE AND STATE LAW REQUIRES US TO COMPETITIVELY BID.
OKAY, ANY OTHER QUESTIONS ON PAGE NUMBER ONE? OKAY, NOW THAT WE HAVE WORKED THROUGH THE 2025 COUNT YEAR ISSUANCES AND THE REFERENDUM PORTION, UM, LET'S MOVE TO PAGE NUMBER TWO, WHICH IS, UH, YOUR BOND RATINGS.
SO THIS CHART IS, UM, ONE THAT WE PULLED FROM, I THINK, STANDARD IMPORTANCE WE PULLED IT FROM, AND SO THEY GIVE YOU RATING GRADATIONS AND, UH, LET'S JUST FOCUS ON THE FAR RIGHT COLUMN TITLED STANDARD AND POORS.
SO THEIR TOP RATING YOU CAN SEE IS AAA.
UM, THERE ARE A HANDFUL OF, OF, OF AA RATED ISSUERS, UH, AROUND THE STATE.
UM, UH, HILTON HIT ISLAND, TOWN OF BLUFFTON HAVE AAA RATING.
UM, I KNOW FROM FROM MOODY'S, UM, DON'T, I DON'T FOLLOW STANDARD IMPORTS AS MUCH AS I FOLLOW MOODY'S, BUT WHEN YOU HEAR CNBC, THEY TALK ABOUT STANDARD IMPORTS.
I TALK ABOUT MOODY'S, SO I'LL JUST FOCUS ON THE FARRAN AM COLUMN.
SO THAT'S THE HIGHEST GRADE THAT YOU CAN HAVE, RIGHT? IT'S, IT'S, IT'S, IT'S, IT'S AA STATUS.
THEN YOU MOVE INTO THE AA CATEGORY.
AND SO YOU HAVE THREE GRADATIONS WITHIN EACH CATEGORY.
YOU HAVE AA PLUS WHOOPSY, AA PLUS, WHICH IS THE HIGHEST CATEGORY.
THEN YOU HAVE WHAT WE CALL AA FLAT, WHICH IS THE MIDDLE, AND THEN WE HAVE DOUBLE A MINUS, WHICH IS, UH, THE LOWEST OF THE DOUBLE A CATEGORY.
AND THEN YOU MOVE TO SINGLE A AND YOU HAVE THE SAME THREE RATING GRADATIONS, AND THEN YOU MOVE INTO TRIPLE B.
AS LONG AS YOU'RE TRIPLE B AND HIGHER, YOU'RE WHAT'S CALLED INVESTMENT GRADE IN THE MUNICIPAL MARKETPLACE.
WHEN YOU GO BELOW THAT, YOU NOW ARE OUT OF INVESTMENT GRADE.
THE REASON THAT CREDIT RATINGS ARE EXTREMELY IMPORTANT IS THAT THE BUYERS OF MUNICIPAL BONDS HAVE THEIR OWN SET OF POLICIES.
AND SO YOU MAY HAVE A FUND THAT ONLY WANTS TO BUY HIGH QUALITY MUNICIPAL BONDS AND THEN OFFER THEM TO INDIVIDUAL OR LARGE INVESTORS.
OR YOU MIGHT HAVE AN INSURANCE COMPANY LIKE STATE FARM THAT THEY'RE GONNA MATCH LIABILITIES WITH ASSETS, THAT THEY HAVE THEIR OWN POLICY.
AND A LOT OF THE POLICIES SAY WE CAN'T OWN BONDS THAT HAVE A UNDERLYING CREDIT RATING OF LESS THAN AA.
SO IF YOU'RE A SINGLE A ISSUER, YOU MAY NOT BE ELIGIBLE
[00:35:01]
TO BE PURCHASED BY CERTAIN FUNDS THAT BLACKROCK HAS OR CERTAIN FUNDS THAT VANGUARD HAS OR CERTAIN FUNDS THAT NUVEEN HAS.AND THEN ON THE INDIVIDUAL INSURANCE COMPANY LEVEL, THE EXACT SAME PROCESS.
SO WHEN YOU LOOK AT BEAUFORT COUNTY SCHOOL DISTRICT'S CREDIT RATINGS, I PUT A A, A RED, UM, A RED CIRCLE NEXT TO YOUR CURRENT, UM, AND HISTORICAL UNDERLYING CREDIT RATINGS.
WITH MOODY'S INVESTOR SERVICE, YOU HAVE AA ONE, AND WITH STANDARD AND POORS, YOU HAVE AA FLAT.
UH, A LONG TIME AGO, THERE WAS WHAT WE CALL A CONVERSION THAT OCCURRED WHERE YOU HAD A CORPORATE SCALE AND A MUNICIPAL SCALE, AND THEY MERGED THEM TOGETHER.
AND WHEN THEY DID THAT, THEY DID A RECALIBRATION IN BEAUFORT COUNTY SCHOOL DISTRICT MOVED UPWARD WITH MOODY'S TO THE A A ONE CATEGORY.
AND EVERY YEAR THE FUND BALANCE WAS THE MAJOR FACTOR IN DETERMINING WHETHER YOU WOULD STAY AT AA ONE OR WHETHER YOU WOULD MOVE BACK DOWN TO AA TWO.
AND THROUGH A LOT OF DISCUSSIONS AND A LOT OF THESE TYPES OF PRESENTATIONS, WE HAVE ALWAYS MAINTAINED THAT FUND BALANCE AT AN ADEQUATE LEVEL THAT MOODY'S NEVER MOVED THE DISTRICT BACK DOWN TO AA TWO.
AND AS WE'VE STUDIED VARIOUS, UM, WEALTH INDICATORS FOR BEAUFORT COUNTY AS A WHOLE, UH, ONE OF THE MAJOR ITEMS OVER THE LAST, I'M GONNA SAY FOUR YEARS, HAS BEEN, UH, WHAT WE CALL THE COVID MIGRATION.
SO THE IRS PUTS OUT EACH YEAR A MIGRATION, UM, STUDY OF ALL TAX RETURNS, AND WE CAN GO TO A COUNTY LEVEL AND SEE IF WE HAVE A NET INFLOW OR A NET OUTFLOW.
AND YOU SEE OUTFLOWS FROM NEW YORK, ILLINOIS, AND CALIFORNIA.
AND THEN YOU HAVE CERTAIN STATES THAT ARE NET WINNERS OF THAT MIGRATION.
BEAUFORT COUNTY HAS BEEN A VERY LARGE WINNER.
UM, THE AVERAGE A GI THAT WE COMPUTED MOVING INTO THE COUNTY WAS $250,000 IS VERY HIGH FOR A TAX RETURN.
WE HAVE OTHER COUNTIES IN THE, THE SAME STATE THAT HAVE A GI NUMBERS AT $90,000.
AND SO THE METRIC THAT THE RATING AGENCIES LOOK AT IN TERMS OF WEALTH INDICATORS FOR BEAUFORT COUNTY HAVE INCREASED TO WHERE I THINK OUR AA ONE IS ON A MORE SOUND FOOTING THAN IT WAS SAY 10 YEARS AGO.
SO YOUR CREDIT RATINGS ARE AT WHAT I CONSIDER TO BE THE, THE PEAK.
UH, I DON'T SEE A PATH TO GETTING TO, UM, TO AAA UNLESS YOU JUST WENT TO NO DEBT, OF COURSE, CAN'T FUND ANY CAPITAL NEEDS WITHOUT ISSUING ISSUING DEBT.
SO I JUST DON'T SEE US MOVING UPWARD.
I SEE US HOPEFULLY MAINTAINING, PROVIDED THAT WE STAY WITH THE SAME FISCAL COURSE.
SO I KNOW THIS IS A LOT TO TAKE IN.
UM, THESE CREDIT RATINGS ARE VERY IMPORTANT FOR MANY REASONS.
UM, DOES ANYONE HAVE ANY QUESTIONS ABOUT THIS PAGE? I THINK YOU NEED TO POINT OUT THE HIGHER THE CREDIT RATING, THE LOWER THE INTEREST RATE.
SO IF THERE'S MORE RISK, NONE OF THESE VERY LOW GRADE JUNK BONDS, IF YOU WILL, THAT'S, YOU'RE GONNA GET A HIGHER, UH, INTEREST RATE THAT YOU'RE GONNA HAVE TO PAY TO BORROW THAT MONEY.
THAT'S WHY IT'S SO IMPORTANT FOR US TO KEEP THIS RATING SO THAT WE CAN GET THE MONEY THAT WE NEED TO BORROW AT THE LOWEST POSSIBLE INTEREST RATE.
THAT'S WHAT THE TAXPAYERS EXPECT US AS THE FIDUCIARY FOR THEIR FUNDS TO BE ABLE TO DO THAT.
THAT'S WHY THIS IS ABSOLUTELY KEY AND IMPORTANT.
AND THAT'S WHY WHEN WE TALK TO THE PUBLIC, WE HAVE TO BASICALLY PAT OURSELVES ON THE BACK AND SAY, WE ARE TAKING CARE OF YOUR FUNDS.
ANY OTHER QUESTIONS OR COMMENTS? OKAY.
SO NOW WE'RE GONNA GET A LITTLE MORE GRANULAR.
SO THIS REPORT IS CALLED THE DEBT CAPSULE REPORT.
AND THE PURPOSE OF THIS REPORT IS TO LAY OUT ALL THE CURRENT BOND ISSUES THE SCHOOL DISTRICT HAS, THE BOND ISSUES THAT WE EXPECT TO ISSUE IN THE CURRENT CALENDAR YEAR, AND IDENTIFY ANY OPPORTUNITIES TO REFINANCE AS PART OF YOUR, YOUR, YOUR BOARD POLICIES.
SO THE COLUMNS ARE LABELED A THROUGH H.
WE HAVE THE BOND SERIES UNDER A ORIGINAL PARAMOUNT UNDER B AMOUNT OUTSTANDING UNDER C, WHETHER THEY'RE 8% FUNDS ARE NOT UNDER D, THE BORROWING RATE UNDER
[00:40:01]
E, THE REFUNDABLE PORTION OR THE REFUNDABLE INTEREST RATE UNDER COLUMN F, FINAL PAYOFF DATE ON COLUMN G.AND THEN IF THE BOND IS CALLABLE OR, OR HAS A REFINANCE, REFINANCE PROVISION, IT'S LISTED.
SO THE FIRST THING THAT, WELL, IF YOU LOOKED AT LAST YEAR'S PAGE VERSUS THIS YEAR'S PAGE, THERE WERE A LOT OF BONDS THAT HAVE BEEN PAID OFF IN MARCH OF 2025.
SO A LOT OF BONDS FELL OFF, AND THIS IS MUCH MORE CONDENSED THAN IT HAS BEEN.
YOU'LL SEE HIGHLIGHTED IN ORANGE, BOTH THE 2015 BREF, THAT MEANS REFUNDING.
IT WAS A, IT WAS A REFUNDING BOND.
AND IF YOU SCROLL ACROSS, YOU CAN SEE THAT THE REFUNDABLE INTEREST RATE IS 3.738%.
AND UNDER THE COLUMN H THE BOND IS ELIGIBLE TO BE, UM, REFINANCED AT ANY TIME BEGINNING MARCH 1ST, 2025.
SO THIS YEAR, AND IF YOU GO DOWN BELOW IN ORANGE IS THE MATCHING, UH, DAY-TO-DAY BOND THAT WE COULD ISSUE IF WE CAN ACHIEVE A LOWER INTEREST RATE THAT NETS 1.5 MILLION IN SAVINGS.
SO I USED THE, THE COLOR SCHEME ORANGE, SO YOU CAN SEE THE TWO AND HAVE THEM TETHER AND TIE TOGETHER, UH, SEPARATED.
AND DOWN BELOW IN BOLD ARE THE FOUR POTENTIAL ISSUES FOR THE CALENDAR YEAR WE'VE PREVIOUSLY DISCUSSED.
THE FIRST IS THE 2025 A, WHICH WAS THE TAKEOUT TO PERMANENT DEBT OF THE BOND ANTICIPATION NOTE FOR LAST YEAR.
AND FOR THE REFERENDUM, UH, IN ORANGE, WE JUST TALKED ABOUT THE POTENTIAL REFUNDING, UH, THE 2025 B SERIES EST FOR ESTIMATE WOULD BE THE 132.2 FOR YOUR BOND REFERENDUM.
AND THEN 2025 CEST ESTIMATED IS THE POTENTIAL $30 MILLION FOR THE 8% PROGRAM.
AND I'LL GET INTO IT A LITTLE BIT LATER, BUT WE HAVE TWO CORE PROGRAMS, THE 8% PROGRAM IN THE REFERENDUM PROGRAM.
SO WE'RE IDENTIFYING, YOU KNOW, BOTH OF THOSE COMPONENTS WITHIN THAT, UM, WITHIN THOSE FOUR SERIES, AS WELL AS THE REFINANCING OPPORTUNITY THAT WE HOPEFULLY WILL ACHIEVE.
SO, UH, WE'VE HAVE, WE HAVE REFINANCED A LOT OF DEBT OVER THE YEARS, UH, SPECIFICALLY DURING WHAT WE CALL QE OR QUANTITATIVE EASING.
SO PRIOR TO, UH, 2022, WE WERE IN A QUANTITATIVE EASING CYCLE WITH THE FEDERAL RESERVE.
INTEREST RATES WERE LIKE BASICALLY ZERO, UH, AND THEN WE HAD THE INFLATION BUG HIT AND THE FED SWITCHED GEARS, AND NOW WE'RE IN A QUANTITATIVE TIGHTENING SCHEDULE, AND IT SEEMS AS IF WE'RE PLATEAUING RIGHT NOW.
AND THE FED'S NOW DISCUSSING WHETHER OR NOT TO LOWER THE FED FEDERAL FUNDS RATE.
SO THIS MORNING, PEOPLE LIKE ME WERE WATCHING AT EIGHT 30 FOR THE PCE NUMBER TO SEE WHAT CORE INFLATION CAME IN AT, CAME IN AT ONE 10TH, HOTTER THAN EXPECTATIONS, BUT BELOW 3%.
AND CONSUMER SPENDING SLOWED BY A 10TH OF A PERCENT.
SO YOU HAVE A LITTLE RALLY IN THE TREASURY MARKET AND GOLD IS GOING UP TODAY.
SO THOSE ARE THE THINGS THAT I LIKE TO WAKE UP AND SEE AT, AT EIGHT 30.
SO, UM, BUT WE MONITOR ALL THAT BECAUSE THOSE ARE IMPORTANT.
IF WE'RE GONNA REFINANCE BONDS OR WE'RE GONNA ISSUE BONDS, WE NEED TO UNDERSTAND HOW THOSE COMPONENTS CHANGE AND WE WANNA BE IN A POSITION OF NOT REACTING, RIGHT? I DON'T WANT TO COME TO YOU AND SAY, I CAN SELL BONDS NOW AND REFINANCE THE BOND AND SAVE YOU 1.5 MILLION.
I WANT TO HAVE IT ALREADY IN PLACE.
SO WE DON'T PREDICT, WE PREPARE, AND THAT'S WHAT WE'VE DONE WITH THE, THE, THE, UM, OPPORTUNITY TO REFINANCE.
AND THAT'S WHAT WE DO WITH THE, THE REFERENDUM STRATEGY AS WELL AS THE 8%, UM, PROCESS THAT YOU GO THROUGH EACH YEAR.
UH, ANY QUESTIONS ON PAGE THREE? THE DEBT THAT'S OUTSTANDING AND THE DEBT TO BE ISSUED THIS CALENDAR YEAR? OKAY, WE'LL MOVE TO PAGE FOUR.
SO AFTER THIS PAGE IS ALL THE MATH BEHIND THIS VERY PRETTY GRAPH.
SO A LOT OF TIMES FOLKS, I THINK, UM, VIS VISUAL IS BETTER THAN LOOKING AT JUST GRANULAR DATA.
SO WHEN WE LOOK AT ALL YOUR BOND ISSUES, BACK TO FISCAL YEAR PAYMENTS IN 2021, ALL THE WAY OUT TO FUTURE ISSUANCE TO 2050, UH, AND THEN AT THE TOP MILLAGE RATES, WHICH I'LL GET INTO THOSE CALCULATIONS, YOU CAN SEE THAT WE HAVE STAYED AT THE 36.3 MILLAGE RATE FOR A PERIOD OF TIME, AND THEN WE STRATEGICALLY HAVE YOUR DEBT
[00:45:01]
SERVICE STRUCTURED.SO IT STARTS TO FALL OFF MORE LIKE A STAIR STEP.
SO IF YOU BACKED UP TO THE FIRST REFERENDUM PHASE, I'LL CALL IT PHASE ONE OF YOUR REFERENDUM PROGRAM, YOUR CURRENT PROGRAM, WE HAD A, UH, MODEST ADJUSTMENT IN THE MILLAGE RATE, AND WE SPENT MANY HOURS, UH, WITH THE FINANCE COMMITTEE, YOUR ADMINISTRATION, BOND COUNCIL, AND, AND OUR GROUP TRYING TO FIGURE OUT AND PREDICT WHAT MILLAGE RATE DO WE NEED TO SET IT AND FORGET IT TO SET THAT MILLAGE RATE AND GIVE THE BOARD THE FLEXIBILITY TO GO THROUGH A SERIES OF REFERENDUMS IF YOU WOULD LIKE TO, TO ISSUE AS MUCH 8% DEBT AS YOU CAN UNDER YOUR LIMIT WITH RESPONSIBILITY TO FUND NEEDS OF THE DISTRICT.
AND WE PROJECT WHAT THE VALUE OF A MILL, HOW IT WILL GROW.
AND I WILL SAY THAT I'M PRETTY PROUD OF THIS PROGRAM'S, UM, CONSTITUTION IN RESPECT TO, WE HAD A MASSIVE AMOUNT OF INFLATION THAT WE HAD TO ABSORB AND WE ABSORBED IT, AND WE HAVE NOT ADJUSTED THE MILL RATE UPWARD.
WE HAVE BEEN ABLE TO KEEP THE MILL RATE WHERE, WHERE WE SAID IT WOULD BE TO THE PUBLIC AT 36.3.
UM, TO ME THAT IS A TESTAMENT OF CONSERVATIVE PRACTICES IN TERMS OF OUR PROJECTIONS, BUT ALSO THE FLEXIBILITY THAT WE MAINTAIN AND HOW WE ROLL OUT, UM, YOUR, YOUR, YOUR ANNUAL ISSUANCES WITH PURPOSE, RIGHT? I THINK IT WAS, IT'S ALSO IMPORTANT TO NOTE FOR EVERYBODY THAT EVEN WITH A SECOND REFERENDUM, WE WERE ABLE TO KEEP IT AT 36.3, CORRECT? CORRECT.
IT'S ALSO SOMETHING THAT YOU HAVE TO REALIZE, UH, THAT WE DEAL WITH CONSTITUENTS AND WE COULD MOVE UP AND DOWN IN THE MILLAGE RATE BASED ON A, A PROJECTION OF WHAT KIND OF REVENUES WE'RE GONNA GET.
AND THERE ARE SOME PEOPLE THAT SAY, WELL, WAIT A MINUTE.
YOU JUST HAD A BIG REASSESSMENT AND THE VALUE OF THE PROPERTY WENT UP, SO YOUR REVENUE HAS GONE UP, SO SHOULDN'T YOU DROP DOWN IN THE MILLAGE RATE? HERE'S THE THING, WHEN WE DROP MILLAGE DROP TAXES, CONSTITUENTS DON'T COME UP TO US AND THANK YOU SO MUCH FOR DROPPING MY TAX BY $25.
BUT IF THE NEXT YEAR WE FIND OUT WE HAVE TO RAISE IT, THAT'S WHEN WE HEAR FROM 'EM OF, WHY DID YOU RAISE MY TAXES? BY HAVING STABILITY, YOU CAN SAY, LOOK, YOUR TAXES ARE NOT GOING TO INCREASE FOR THE NEXT FIVE YEARS TILL THE NEXT REASSESSMENT COMES ALONG.
THAT MAKES IT MUCH, MUCH EASIER FOR US TO LET THEM KNOW THAT, LISTEN, WE'RE MANAGING THEIR MONEY VERY WELL.
SO THAT, THAT'S, THAT'S WHY THIS IS IMPORTANT AND THAT'S WHY I I TAKE THIS CHART WITH ME EVERY TIME I SPEAK TO THE PUBLIC AND I SHOW 'EM THAT DR. RODRIGUEZ, COLONEL, JUST PIGGYBACKING ON WHAT YOU JUST SAID, IT'S IMPORTANT FOR THE PUBLIC TO KNOW THAT WE DON'T JUST DECIDE WE'RE GONNA DO A REFERENDUM, RIGHT? WE, WE HAVE NEEDS THAT WE'RE ADDRESSING THROUGH THOSE REFERENDUMS, BUT WHAT OUR PROJECT REVIEW COMMITTEE IDENTIFIED WAS WAY MORE NEEDS THAN WHAT WE ACTUALLY WENT FOR IN THE REFERENDUM.
AND THE REASON FOR THAT IS BECAUSE THIS IS PART OF THE CALCULUS.
HOW MUCH WORK CAN WE DO WITHOUT IMPACTING OUR COMMUNITY'S TAXES? RIGHT? AND, AND, AND HAVING STABILITY IN THAT, IN THAT RATE, ALTHOUGH WE COULDN'T GET EVERYTHING DONE RIGHT.
WE HAD TO MAKE SOME DECISIONS.
THAT'S, THAT'S HOW, HOW IT WORKS, YOU KNOW? AND, AND PART OF THE CALCULUS IS WHAT CAN WE GET DONE AND NOT AFFECT OUR, THAT, THAT STABILITY THAT YOU TALKED ABOUT.
UH, I ALSO WANNA SAY THAT, UH, IT'S, UM, AS OUR CONSTITUENTS COME TO US, IT'S EASY TO BE REACTIONARY BECAUSE WHEN OUR CONSTITUENTS ARE SPEAKING TO US, WE WANT TO MAKE OUR CONSTITUENTS HAPPY.
WE WANT TO GIVE THE PUBLIC WHAT THEY WANT.
UM, BUT, UH, IF YOU NOTICE, THIS IS A LONG GAME.
UH, WE'RE TALKING DECADES INTO THE FUTURE LONG GAME.
UH, SO EVEN THOUGH WE MIGHT WANNA, UM, UH, CAVE TO THE, THE TEMPTATION OF REACTING TO WHAT OUR CONSTITUENTS ARE WANTING IN THE MOMENT, WE HAVE TO PLAN OUT, UH, VERY DILIGENTLY, UM, HOW WE'RE GOING TO DO THIS IN THE FUTURE TO TRY TO OFFEND THE LEAST AMOUNT OF PEOPLE.
UH, AND I, I, 'CAUSE I, I GO BACK TO THAT
[00:50:01]
AGAIN, THAT'S, I THINK THAT'S OUR JOB.UM, BUT, UH, WE HAVE TO RESIST THE TEMPTATION TO MESS WITH THE MILLAGE BECAUSE MESSING WITH THE MILLAGE CAN ALSO AFFECT OUR CREDIT RATING.
UM, BUT THIS IS A VERY LONG GAME.
UH, AND, UH, I, I THINK, UH, WE ARE LUCKY IN THAT WE HAVE, UH, THE BEST STAFF, UH, AROUND US AND, AND THE BEST HELP OUT THERE, UM, TO MOVE US FORWARD IN A, IN A VERY, VERY SOLID DIRECTION.
UM, SO THE LAST THING ON THIS GRAPH, YOU'LL SEE I HAVE A RED BOX AT THE TOP AND IT SAYS, ONGOING REEVALUATION OF 8% PROGRAM, BORROWING TERM AND FUTURE REFERENDUM PROGRAMS. SO WE STRATEGICALLY HAVE THE DEBT SERVICE FALLING OFF SO THAT THE BOARD THEN HAS A FLEX THE FLEXIBILITY IN FUTURE DECISIONS TO EITHER A, DO A PHASE THREE REFERENDUM WITH NO TAX INCREASE OR B ISSUE.
YOUR 8%, MAYBE GET TO PAINT IT OFF IN ONE YEAR, OR C SOME COMBINATION OF BOTH.
BUT THAT IS FLEXIBILITY FOR A FUTURE BOARD.
UM, YOU'RE NOT TYING THE HANDS OF A FUTURE BOARD.
IN FACT, YOU'RE EMPOWERING A FUTURE BOARD BY HAVING THIS TYPE OF STRUCTURE AND HAVING A LONGER TERM VISION AS OPPOSED TO A SHORTER TERM VISION.
SO BEFORE I MOVE TO THE NEXT PAGE, WHICH IS THE MATH BEHIND THIS GRAPH, DOES ANYONE HAVE ANY QUESTIONS? YES, MA'AM.
UM, VERY INTERESTING PRESENTATION.
WE KEEP, YOU KEEP TALKING ABOUT THE 8% MONEY AND THE REFERENDUM MONEY.
UM, AND I WAS TOLD THAT THE TWO ARE SEPARATE.
THE WHERE DOES THE 8% MONEY COME FROM? OKAY.
SO I HAVE A PAGE ON THE 8% THAT'S COMING UP, UH, AND, UH, ESSENTIALLY EACH YEAR THEY CERTIFY AS OF JUNE 30TH, WHAT THE ASSESSED VALUATION OF THE SCHOOL DISTRICT OR COUNTY IS.
YOU TIMES THAT BY 8% AND IT EQUALS THE AMOUNT THAT YOU CAN BORROW WITHOUT GOING FOR VOTER APPROVAL.
MR. NIG, I HOPE I'M NOT GETTING IN, UH, AHEAD OF YOU, BUT, UH, AND ON THE LAST, ON THE ONLY LAST PAGE, UM, YOU WERE TALKING ABOUT WHEN THE BONDS, THE, UH, IT DROPPED OFF, RIGHT? CORRECT.
YOU, YOU, YOU TALKING ABOUT THE ONE WHEN WE PAID 'EM OFF? WHEN THEY DROPPED OFF, YOU SAID THAT A COUPLE OF 'EM CAME OFF, UH, IN TERMS IN TERMS OF, UM, OH, JUST PAYING OFF DEBT.
RIGHT, RIGHT, RIGHT, RIGHT, RIGHT.
AND, AND TO HELP THE, THE COMMUNITY UNDERSTAND THE, WHEN, WHEN THESE DEBTS DROP OFF, WE ARE PRETTY, WE PRETTY MUCH, WE SCHEDULE WHEN THE DEBT DROP OFF BECAUSE WE PRETTY MUCH KNOW WHEN WE'RE GONNA PAY HOW WE'RE GONNA PAY THIS.
IS THAT CORRECT? YES, IT'S A, YES.
WE HAVE A FIXED RATE PAYMENT SCHEDULE, LIKE A HOUSE MORTGAGE.
SO, SO, SO WE PRETTY MUCH KNOW WHEN WE'RE, WHEN DEBT'S GONNA DROP OFF AND WHAT DEBT WE HAVE OUT THERE, CORRECT? CORRECT.
OKAY, SO MOVING FROM PAGE FOUR TO PAGE FIVE, PAGE FIVE IS, IS A LITTLE LESS PRETTY.
IT'S ALL THE MATH BEHIND THAT GRAPH.
SO ON THIS PAGE WE IDENTIFY UNDER COLUMN A, THE CALENDAR YEAR IN WHICH PAYMENTS ARE MADE.
COLUMN B, GENERAL OBLIGATION BONDS THAT HAVE BEEN ISSUED ALREADY.
AND THEN COLUMN C, D, E, F, AND G ARE RELATED TO THE REFERENDUM PROGRAM.
THE, UH, AMORTIZATION ASSUMPTIONS, THE CURRENT 8% BORROWING THAT WE HAVE, UH, A PLACEHOLDER FOR, FOR THIS CALENDAR YEAR, WHICH IS CALLING ME.
AND THEN WE HAVE TO RESERVE CASH FLOW FOR FUTURE 8% ISSUANCES.
SO WE DON'T, UM, FIND OURSELVES IN A POSITION WHERE WE ARE NOT RETIRING THE DEBT TOO QUICKLY.
WE HAVE TO, UM, HAVE A PLA WHAT WE CALL A PLACEHOLDER, RIGHT? SO BOARDS WILL MAKE FUTURE DECISIONS.
WE PUT IN CERTAIN ASSUMPTIONS, BUT WE'RE SORT OF RESERVING THAT CASH FLOW SO WE DON'T, UM, MAKE A MISCALCULATION.
UH, COLUMN C, YOU CAN SEE THE BON ANTICIPATION NOTE WE TOOK OUT AND REPAID VERY QUICKLY.
WE THEN HAVE A, UM, A, A GAP HERE TO MAY BEFORE WE ISSUE COLUMN D.
AND YOU CAN SEE THE AMORTIZATION UNDER COLUMN D.
IT'S A LITTLE HIGH IN THE, IN HIGHER PAYMENTS ON THE FRONT END.
THEN WE KIND OF SLOW DOWN, WE INCREASE, THEN WE SLOW DOWN AGAIN, THAT IS STRUCTURED SO THAT UNDER COLUMN F AND G, THE FUTURE REFERENDUM DEBT IS ISSUED IN LEVEL PAYMENTS.
SO WE'RE SETTING UP THAT STAIR STEP ON THAT GRAPH.
AND THEN I HAVE LEVEL PAYMENTS THAT ARE A LITTLE BIT EASIER FOR ME TO MANAGE AS WE ISSUE THE BALANCE OF THE REFERENDUM.
UM, COLUMN H IS, UH, THE MATH ON THE NEXT PAGE.
I'LL GO OVER HERE IN A SECOND, BUT IT WILL BE
[00:55:01]
SUBSTANTIALLY SIMILAR TO COLUMN E, WHICH IS YOUR 8% ISSUE IS REPAID OVER A TWO YEAR PERIOD THAT WILL ADJUST, THE PAYMENTS WILL ADJUST A LITTLE BIT AS WE DETERMINE THE FINAL VALUE OF A MILL FOR THE UPCOMING TAX YEAR.SO IN THE FALL, THE TAX BILLS THAT GO OUT WILL SAY TAX YEAR 2025, BUT THAT MONEY DOESN'T COME IN UNTIL 26.
SO JUST KEEP THAT IN MIND WHEN YOU JUST LOOK AT THE TAX BILL.
THERE'S A, THE NEXT CALENDAR YEAR, THE MONEY COMES IN STARTING IN, YOU KNOW, END OF DECEMBER INTO JANUARY AND FEBRUARY AND THEN DELINQUENT THEREAFTER.
UM, BUT YOU CAN SEE HOW WE HAVE, UM, PROGRAMMED TO ISSUE THE FULL REFERENDUM HERE UNDER COLUMNS, CD, F AND G, AND THEN YOUR 8% PROGRAM, THE BORROWING FOR, FOR THIS YEAR, THE ASSUMPTION IS COLUMN E AND THEN UNDER COLUMN H I'LL GO TO THE DETAIL HERE AFTER, UM, WE ANSWER ANY QUESTIONS OR COMMENTS ON THIS PAGE.
THIS IS THE BREAKOUT OF THE 8% PROGRAM AFTER THE CURRENT YEAR.
SO BEGINNING THIS TIME NEXT YEAR.
SO IN TALKING WITH YOUR ADMINISTRATION, WE'VE BEEN DEALING WITH INFLATIONARY PRESSURES.
SO ONE OF THE THINGS THAT THEY ASKED US TO DO AS A PLACEHOLDER ONLY FUTURE BOARD APPROVAL IS UNDER COLUMN B, WE HAVE ANOTHER $30 MILLION SCHEDULED TO BE ISSUED NEXT YEAR SUBJECT TO ADJUSTMENTS.
AND THEN YOU CAN SEE UNDER COLUMN C AND D WE INCREASED TO 35 MILLION FOR INFLATION AND THEN COLUMNS, E, F, AND THEN G IS INTO PERPETUITY.
THOSE NUMBERS WILL CHANGE AS VARIABLES CHANGE AND AS THE NEEDS OF THE DISTRICT CHANGE.
BUT WE HAVE TO HAVE A CONSERVATIVE, UM, APPROACH AND A PLACEHOLDER SO THAT WE DON'T MAKE, SAY, A MISTAKE IN HOW I AMORTIZE THE REFERENDUM PAYBACK.
THESE TWO HAVE TO, IT'S LIKE A PUZZLE PIECE.
THESE TWO HAVE TO MERGE TOGETHER PERFECTLY.
SO THESE ARE PLACEHOLDER AMOUNTS, BUT THIS IS THE 8% PROGRAM, UM, AS WE HAVE IT LAID OUT TODAY.
SO ARE THERE ANY QUESTIONS ON PAGE NUMBER SIX? OKAY, SO MOVING ON TO PAGE NUMBER SEVEN, WE GET INTO A LITTLE BIT MORE FINANCIAL FUND.
THIS IS HOW WE REPAID THE DEBT.
UM, SO UNDER COLUMN A, WE IDENTIFY EACH CALENDAR YEAR B, WE IDENTIFY THE PER MILL VALUATION.
C IS THE GROWTH, BOTH ACTUAL AND, AND ESTIMATED D IS, UH, MONIES.
IF YOU GO TO YOUR AUDIT, THERE'S A DEBT SERVICE PAGE.
THERE'LL BE A SECTION CALLED STATE SOURCES.
IT'S MOSTLY HOMESTEAD EXEMPTION MONIES.
SO COLUMN D REPRESENTS STATE SOURCES THAT COME IN.
YOU CAN SEE IN THE AUDIT, UH, COLUMN E AND F ARE, UM, THERE FOR ANY TRANSFERS OR ANY AMOUNTS IN FUND BALANCE THAT ACCUMULATE, UH, BUDGET VERSUS ACTUAL.
COLUMN G IS THE DEBT SERVICE THAT WE PREVIOUSLY IDENTIFIED ON THE, ON THE DEBT SERVICE PAGE.
UH, COLUMN H IS OUR MILLAGE TARGET, WHICH IS 36.3 COLUMN I IS THE MATH OF TAKING THE VALUE OF A MILL PLUS THE STATE SOURCES AND DIVIDING IT BY THE AMOUNT OF PAYMENTS YOU HAVE.
AND YOU CAN SEE, UM, UH, WE THEN SHOW YOU THE DIFFERENCE IN OUR COLUMN J OF, UH, OUR TARGET VERSUS WHAT THE MATH COMPUTES TO.
AND ANYTHING THAT IS REMAINING CAN BE USED FOR FLEXIBILITY PURPOSES.
UNDER COLUMN A, YOU'LL SEE SPECIFIC YEARS THAT HAVE A SINGLE ASTERISK.
THAT MEANS WE TOOK YOUR AUDIT AND WE LOOKED AT THE REVENUES YOU BROUGHT IN AND WE DIVIDED IT BY THE NUMBER OF A MILLS THAT YOU LEVIED.
SO THAT IS THE ACTUAL WHAT WE CALL COLLECTIBLE VALUE OF A MILL.
SOMETIMES YOU'LL RECEIVE REPORTS FROM THE COUNTY THAT TALK ABOUT ASSESSED VALUATION.
YOU THEN TAKE THAT ASSESSED VALUATION, YOU TIMES IT BY 0.001 AND YOU GET A HYPOTHETICAL NUMBER.
WE HAVE FOUND OVER THE YEARS THAT USING A CASH-BASED SYSTEM IS MUCH BETTER THAN A ASSESSED VALUATION SYSTEM.
SOME MONIES ARE IN TAX, UH, TIFFS WHERE THEY GET REDIRECTED.
SOME HAVE FEE AND LIEU TAX AGREEMENTS WHERE THEY GET A DISCOUNT FOR BRINGING JOBS INTO THE COUNTY.
SO WE USE A CASH BASED SYSTEM.
ONE OF THE THINGS THAT WE HAVE PUT IN PLACE OVER THE LAST, I'M GONNA SAY FIVE YEARS THAT IT'S BEEN VERY SUCCESSFUL IS YOU CAN SEE IN THE 2025 YEAR THERE IS
[01:00:01]
TWO ASTERISKS.AND IF YOU GO DOWN BELOW THOSE TWO ASTERISKS SOURCE TO FUTURE FINANCE COMMITTEE DISCUSSION AND ANALYSIS.
SO THE TIMING OF WHAT NUMBER WE USE FOR 2025 GOES AS FOLLOWS.
YOUR FINANCE DEPARTMENT RECEIVES MONEY EACH MONTH AND THEN THE FOLLOWING MONTH THEY RECONCILE.
SO THE MONIES YOU RECEIVE THROUGH JUNE 30TH GET RECONCILED IN JULY.
SO AROUND JUNE AND JULY, WE HAVE A REALLY GOOD IDEA OF WHAT THE UNAUDITED COLLECTIBLE VALUE OF A MILL WILL BE.
THAT INFORMATION GOES TO YOUR FINANCE COMMITTEE, WE TALK ABOUT IT AND WE COME UP WITH A ESTIMATE FOR THE VALUE OF A MILL.
FOR 2025, I HAVE UTILIZED A GROWTH RATE IN ORANGE.
IF YOU GO BEFORE THAT 5% NUMBER OUTSIDE OF LAST YEAR'S REASSESSMENT, IF YOU KIND OF JUST DO AN AVERAGE, YOU'VE KIND OF REACHED THIS AVERAGE OF 5% GROWTH, RIGHT? POINT OF SALE, UM, IS AN IMMEDIATE ON THE TAXABLE ITEM AS OPPOSED TO A HOME OR A, A BUILDING THAT MAY GET REASSESSED EVERY FIVE YEARS BECAUSE THERE'S NO TRANSFER OF THE PROPERTY.
SO THAT IS OUR PROCESS IN THIS $2,832,942 VALUE OF A MILL ESTIMATE WILL ADJUST AS WE MOVE THROUGH THE TAX CYCLE.
THAT MEANS YOUR FINANCE DEPARTMENT IS RECONCILING FEBRUARY RIGHT NOW.
UM, I JUST RECEIVED NUMBERS A FEW DAYS AGO ABOUT FEBRUARY AND WHAT THOSE COLLECTIONS ARE LOOKING LIKE, AND WE CONTINUE THROUGH THIS PROCESS.
WHEN WE MOVE TO THIS PROCESS, OUR ACCURACY LEVEL INCREASED SUBSTANTIALLY BECAUSE WE NO LONGER RELIED ON AN ASSESSED VALUATION METRIC TO DETERMINE THE VALUE OF A MILL WE USE TO CASH.
AND IT'S BECOME, UM, A MUCH, UH, MORE ACCURATE PROGRAM IN TERMS OF OUR, UM, PROJECTIONS VERSUS ACTUAL RESULTS.
LET ME, LET ME ADD, ADD THAT THIS CAUSES SOME PROBLEM WITH THE COUNTY BECAUSE THE COUNTY DOES BASED ON ASSESSED VALUE.
AND SO THEY WERE LOOKING AT THE VALUE OF THE MILL AT A OFTENTIMES MUCH HIGHER RATE THAN WE DID.
THE PROBLEM WITH THAT PROCESS THAT DOES BY THE COUNTY IS THEY SAY THIS IS, THIS IS BASED ON THE TAX BILLS THAT GO OUT IN OCTOBER.
TAX BILLS GO OUT IN OCTOBER, BUT THERE'S SOME VARIABLES THAT HAPPEN.
YOU HAVE BUSINESSES OR THAT GO UNDER THAT AREN'T GONNA PAY THOSE TAXES.
YOU HAVE TAXPAYERS THAT SAID, OH, I'M 60, I'M 62.
I CAN GET THE, UH, HOMESTEAD EXEMPTION.
IT'S LOWERS MY ASSESSED VALUE OF MY HOUSE.
THERE ARE PEOPLE THAT HAVE A HOUSE THAT THEY'VE RENTED OUT AT AND THEY'RE PAYING 6% AND I'VE DECIDED TO MOVE IN, KICK THE RENTERS OUT AND MOVE IN.
SO THERE'S THREE VARIABLES EVERY YEAR.
WE'VE WORKED ON ONE VARIABLE AND THAT VARIABLE IS WHAT'S IN THE BANK, AND THAT'S WHY OUR PROJECTIONS HAVE BEEN MUCH MORE ACCURATE THAN THE COUNTY'S PROJECTIONS OF WHAT THE VALUE OF THE MILL IS.
AND THAT HAS, I THINK WE HAVE THE NEW AUDITOR, UH, UNDERSTANDING THE DIFFERENCE NOW.
AND I THINK HE'S KIND OF COMING AROUND TO OUR VIEW, THE OLD AUDITOR, IT WAS THE ASSESSED VALUES PERIOD, BUT THAT HAS CAUSED US SOME ISSUES, UH, WITH THE COUNTY.
BUT BY TALKING TO THEM AND BY PROVING THAT WE ARE MAKING THE UH, RIGHT USE OF THE MONEY, THAT CRITICISM HAS KIND OF FALLEN OFF.
BUT IT'S BEEN FIVE YEARS OF US DOING THAT TO MAKE THAT HAPPEN.
YEAH, MOVING TO A CASH BASED SYSTEM.
SO THAT HAS BEEN VERY HELPFUL.
UM, IN 2026, RIGHT? SO BONDS THAT WE'RE ISSUING THIS YEAR, THEIR FIRST PAYMENT WILL BE MATERIALLY IN 2026.
SO DECISIONS WE MAKE TODAY ARE NOT AFFECTING PAYMENTS IN 2025.
THOSE BONDS HAVE ALREADY BEEN ISSUED.
SO IN 2026, I'VE HIGHLIGHTED IN GRAY THAT YEAR.
THAT'S OUR FOCUS YEAR, AND I ESTIMATED ANOTHER 5%
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GROWTH RATE BASED UPON, UM, DISCUSSIONS AND COMMENTS ABOUT THE GROWTH IN THE COUNTY.IT SEEMS AS IF WE'RE CONTINUING THIS 5%, UM, ASSUMPTION IS A REASONABLE, UM, PLACE TO START FROM.
HOWEVER, THEREAFTER YOU'LL SEE WE MOVE TO 1%.
NOW, THE REASON WE MOVE TO 1% IS IT'S EASIER TO TALK ABOUT IT IN THE PAST.
RAISE YOUR HAND IF YOU PREDICTED COVID.
UH, RAISE YOUR HAND IF YOU PREDICTED THE LAST HURRICANE.
THE REASON WE USE 1% IS BECAUSE OF THINGS WE CAN'T KNOW.
SO WE WANT TO BE CONSERVATIVE.
IF WE ARE TOO AGGRESSIVE, WE NAME MAY NOT BE ABLE TO ABSORB VERY HIGH LEVELS OF INFLATION WITHOUT CHANGING THE 36.3 MILAGE RATE COMMITMENT WE MADE TO THE PUBLIC WITH THE PHASE ONE OF YOUR REFERENDUM CYCLE.
SO BEING CONSERVATIVE AND FINDING THAT BALANCE OF THE NEAR TERM 5%, WORKING WITH CASH, BEING CONSERVATIVE WITH 1% GROWTH RATE AS OPPOSED TO 3% ONLY PROVIDES US MORE FLEXIBILITY TO DEAL WITH THE UNKNOWN.
BUT MOST IMPORTANTLY, IT GIVES US THE HIGHEST PROBABILITY THAT WE MEET THE COMMITMENT TO THE PUBLIC.
THE PUBLIC IS VERY UNFORGIVING.
IF YOU RAISE FROM 36.3 TO 40, THEY DON'T LIKE THAT.
THEY WOULD RATHER YOU BE CONSERVATIVE, WHICH IS WHY WE APPROACH IT THE WAY WE DO.
LASTLY, UNDER COLUMN J, IF YOU REMEMBER ON THE GRAPH, WE HAVE THE STAIR STEP.
SO I'VE HIGHLIGHTED IN YELLOW WITH A CONSERVATIVE 1% GROWTH RATE.
WE HAVE 18,554,000 OF UNUSED MILLAGE IN THAT PARTICULAR YEAR.
AND THEREAFTER, THAT THEN BRINGS IN THE FLEXIBILITY FOR A FUTURE BOARD TO DECIDE, DO YOU WANNA DO A THIRD PHASE OF YOUR REFERENDUM WITHOUT A TAX INCREASE? IS ARE THERE NEEDS AROUND THE COUNTY THAT YOU NEED TO ADDRESS THAT WARRANTS A THIRD PHASE? DO YOU NEED TO INCREASE YOUR 8% AMOUNT? DO YOU NEED TO PAY YOUR 8% AMOUNT BACK MORE QUICKLY? ALL THESE THINGS ARE STRATEGICALLY PLACED SO THAT THE PUBLIC HAS THE HIGHEST CONFIDENCE THAT WE'RE GOING TO MEET THE MILLAGE COMMITMENT.
AND THIS BOARD AND FUTURE BOARDS HAVE FLEXIBILITY IN DECISION MAKING.
SO ARE THERE ANY QUESTIONS ON HOW WE CALCULATE THE MILLAGE RATE FOR THE THE DEBT PROGRAM? OKAY, THAT WAS ONE OF MY FAVORITE PAGES, BY THE WAY.
ALRIGHT, PAGE NUMBER EIGHT IS OUR DEBT LIMIT PAGE.
SO OUR 8% PAGE, A LOT OF TIMES WE HEAR PEOPLE TALK ABOUT 8% IS KIND OF LIKE A CREDIT CARD.
UH, YOU'LL SEE UNDER COLUMN A, WE HAVE JUNE 30TH OF EACH YEAR, AND WE GET THE ASSESSED VALUATION FROM YOUR AUDIT.
SO IF YOU GO TO THE AUDIT, IN THE BACK OF THE AUDIT, THERE'LL BE A HISTORICAL, UH, UM, NUMBERS OF THE ASSESSED VALUATION.
IF YOU LOOK UNDER COLUMN G, THAT ASSESSED VALUATION IS THEN MULTIPLIED BY 8%.
AND UNDER COLUMN H YOU HAVE A MAXIMUM LIMITATION.
SO IF YOU HAVE A CREDIT CARD THAT SAYS YOU CAN BORROW A MAXIMUM OF $500 ON THE CARD, THEN THAT WOULD BE THE EQUIVALENT OF COLUMN H WHAT YOUR MAXIMUM AMOUNT YOU CAN BORROW.
WE THEN UNDER COLUMN, I SHOW YOU THE CHANGE IN THE ASSESSED VALUATION EACH YEAR, AND I WANNA POINT OUT SOMETHING TO YOU UNDER COLUMN I IN THE YEAR 2022, IN THE YEAR 2023, THE ASSESSED VALUATION OF THE COUNTY WENT DOWN.
HOWEVER, ON A CASH BASIS IT WENT UP.
THAT IS ANOTHER REASON WHY WE MOVED AWAY FROM USING ASSESSED VALUATION TO PREDICT WHAT THE VALUE OF A MILL IS FOR THE SCHOOL DISTRICT DEBT PROGRAM.
I DON'T KNOW WHY WE HAVE TWO YEARS OF NEGATIVES.
I'M SURE THERE'S A REASON, BUT IT'S NOT IN MY PURVIEW TO, TO HANDLE THAT METRIC.
AND, AND I DON'T, I DON'T, THAT'S NOT MY, MY RIGHT ROLE.
IT'S TO ROLE OF THE COUNTY, BUT IT'S, IT IS, IT IS ITEMS LIKE THAT THAT SUPPORT OUR MOVE TO USING A CASH BASED SYSTEM FOR THE PROGRAM AS OPPOSED TO ASSESS VALUATION.
NOW YOU CAN SEE IT WITH REASSESSMENT IN 2024, WE HAD A ROBUST INCREASE, AND IN 2025 I USED A, UH, AN AMOUNT OF, UH, 5% JUST LIKE I DID ON THE MILLAGE PAGE.
NOW, UNDER COLUMN C, THE CURRENT BOND ISSUE THAT'S, THAT IS, WILL BE SUBJECT TO
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BOARD APPROVAL FOR 30 MILLION.I HAVE THE AMORTIZATION LISTED TO BE PAID BACK IN TWO YEARS, 2026 AND 2027.
AND THEN UNDER COLUMN F, WE HAVE ALL THOSE FUTURE 8% BONDS THAT WE HAVE AS A PLACEHOLDER.
WE THEN TAKE IN EVERY SINGLE YEAR THE MAXIMUM AMOUNT OF 8% LIMITATION THAT YOU HAVE, AND WE SUBTRACT HOW MUCH DEBT YOU WOULD HAVE OUTSTANDING IF YOU CONTINUED THIS PACE.
AND YOU CAN SEE THAT IN, UH, FISCAL YEAR 2025, WE ESTIMATE THAT YOU WILL HAVE AN UNUSED AMOUNT OF $168 MILLION.
THE REASON WHY THAT'S IMPORTANT IS DOWN BELOW WITH THE THREE ASTERISKS I CITED, UH, POLICY OE SIX, SPOT ONE SEVEN MAINTAIN A 10% OF INSURED VALUE CAPACITY IN 8% FUNDS BEGINNING IN FISCAL YEAR 2022.
SO MS. CROSBY PROVIDED ME THE, UH, AMOUNT OF INSURED VALUE OF $1.2 BILLION, MULTIPLY THAT BY 10%, AND WE WOULD NEED A MINIMUM OF $123.5 MILLION IN UNUSED 8% DEBT LIMIT TO STAY WITHIN POLICY.
UH, I, I CANNOT RECALL RIGHT NOW.
I, I CAN'T REMEMBER I SHOULD SAY IF I HA I DON'T BELIEVE I HAVE ANY OTHER SCHOOL DISTRICT IN THE STATE, AND WE WORK WITH 89% OF 'EM THAT HAVE HAS A POLICY LIKE THIS.
YOU'RE A COASTAL COMMUNITY, YOU'RE SUBJECT TO HURRICANE RISK, AS OPPOSED TO I WORK WITH OCONEE COUNTY OPPOSITE END OF THE STATE.
RIGHT? THEY HAVE A LOT LESS HURRICANE RISK THAN WE DO HERE.
SO, SO THIS, UM, POLICY IS VERY MUCH SUPPORTED BY THE CREDIT RATING AGENCIES BECAUSE THEY WANNA KNOW OUTSIDE OF FUND BALANCE, DO YOU HAVE ANY OTHER AMOUNTS OF LIQUIDITY TO DEAL WITH AN UNFORESEEN EVENT? IN THE ANSWER IS YES.
AND, UM, WE PULLED AN OLD REPORT.
SO EVERY TIME I DO A BOND ISSUE, EVERY TIME I ISSUE A BOND, I DO A WHOLE CLOSEOUT REPORT.
JUST LIKE YOU'RE GETTING TODAY.
I WENT BACK TO, TO THE BONDS THAT WE ISSUED IN THE FALL OF 2013, AND YOUR CAPACITY WAS $73 MILLION AND IN THE FOLLOWING YEAR IT WAS GONNA DROP TO 50.
SO THERE'S BEEN A LOT OF WORK DONE IN TERMS OF PAYING DEBT BACK A LITTLE MORE QUICKLY ON THE 8% INSTEAD OF FIVE YEARS.
THAT HELPS WITH THE RECYCLING AND IT THEN MAKES OUR LIQUIDITY MEASUREMENT LOOK BETTER IN THE EYES OF THE RATING AGENCIES.
SO YOU HAVE A LOT OF FLEXIBILITY IN YOUR 8% PROGRAM.
THAT HAS NOT ALWAYS BEEN THE CASE.
UH, BUT EVERYONE HAS WORKED REALLY HARD AND VERY DILIGENTLY TO GET TO THIS POSITION THAT YOU ARE IN TODAY.
UM, SO ARE THERE ANY QUESTIONS OR COMMENTS REGARDING THE DEBT LIMIT CALCULATION? LET ME MAKE A COMMENT.
ONE OF OUR MISSIONS AS A BOARD IS TO DO RISK ANALYSIS, AND WE HAVE TO DETERMINE DO WE HAVE THE RESOURCES FOR THE UNFORESEEN.
IN THE 1890S, THERE WAS A HURRICANE THAT HIT BUFORT COUNTY.
IF YOU GO TO THE, UH, PENN CENTER, YOU'LL LOOK AT THE BIG CHURCH, YOU'LL SEE THAT THE HIGH WATER MARK FROM THAT HURRICANE, IF THAT HURRICANE WOULD COME BACK AGAIN, UH, ST.
HELENA ELEMENTARY, UH, WOULD BE VIRTUALLY GONE.
LADIES ISLAND ELEMENTARY WOULD PROBABLY BE GONE.
SO WE WOULD HAVE, IN OUR OPERATIONAL FUND, BALANCE ENOUGH MONEY TO PAY FOR THE GUYS THAT COME IN.
LIKE THE LAST HURRICANE THAT WE HAD ON ON IT HIT HILTON HEAD SO BAD, THESE TRUCKS SHOW UP, THEY'RE GONNA HAUL AWAY DEBRIS.
YOU GOTTA PAY 'EM RIGHT? THEN.
WE HAVE THAT MONEY IN OUR OPERATIONAL FUND BALANCE TO DO THAT.
BUT ANYTHING MORE THAN THAT, WHAT ARE WE GONNA DO WITH THE PUPILS FROM THAT SCHOOL? WE'RE GONNA HAVE TO FIND ANOTHER BUILDING TO PUT 'EM IN.
WE'RE GONNA HAVE TO START IMMEDIATE RECONSTRUCTION.
AND IF YOU THINK, WELL, YOU GOT $160 MILLION, THAT'S A LOT OF MONEY.
THAT'S NOTHING THAT'LL, THAT'S ENOUGH TO GET US STARTED TO START THE CONTRACTING WORK.
BUT WE WILL, WE WOULD HAVE TO GO TO A REFERENDUM TO REALLY TAKE CARE OF A CATASTROPHIC HURRICANE LIKE THAT.
BUT THAT TAKES TIME, BUT YOU GOTTA PAY THE BILLS.
[01:15:01]
SO THAT'S WHY AS A BOARD, WE, WHEN I CAME ON THE BOARD SIX YEARS AGO, I CAME UP IN PUBLIC COMMENTS BEFORE I RAN FOR THE OFFICE AND SAID, THE WAY I LOOK AT IT, YOU HAVE ABOUT $20 MILLION IN BORROWING CAPACITY, 20 MILLION.NOW WE HAVE 168 MILLION, AND THAT'S ABOUT RIGHT.
BUT FRANKLY, I WOULDN'T BE UPSET TO SEE IT AT 200 MILLION BECAUSE OF WHAT COULD HAPPEN IN THIS DISTRICT.
COLONEL, JUST TO ADD, I MEAN, LONG TERM PLANNING IS IMPORTANT AND IT'S IMPORTANT FOR US, AND WE, WE GO THROUGH TREMENDOUS EFFORT TO ENSURE LONG-TERM PLANNING, UM, AND PROJECTIONS PLANNING.
OF COURSE, WE CAN'T PROJECT HURRICANES, BUT WE HAVE TO BE PREPARED, AS YOU SAID, FOR FOR, UM, FOR ANYTHING LIKE THAT.
I MEAN, IT, IT'S, IT'S INCREDIBLY IMPORTANT.
I HAVE FRIENDS WHO, SUPERINTENDENTS IN OTHER PARTS OF THE COUNTRY WHO, WHO HAVE GOTTEN WHACKED BY HURRICANES AND, AND THE IMPACT ON THE SYSTEM, ALL THE THINGS, AND MORE OF WHAT YOU MENTIONED IN TERMS OF ADJUSTMENTS, MOVING KIDS TO OTHER PLACES, REBUILDING SCHOOLS, YOU KNOW, ALL OF THOSE THINGS.
YOU, YOU HAVE TO BE IN A AND, AND, AND WE HAVE DONE, I WAS GONNA SAY, WE ARE FORTUNATE AND IT'S TRUE.
WE ARE FORTUNATE, BUT AT THE SAME TIME, RIGHT, WE HAVE DONE, I THINK, TREMENDOUS WORK IN PREPARING OURSELVES FINANCIALLY TO PUT OURSELVES IN A GOOD FINANCIAL PLACE.
AND I THINK IT'S IMPORTANT THAT THAT CONTINUES FOR OUR COMMUNITY AND FOR OUR PUBLIC.
ANY OTHER COMMENTS OR QUESTIONS ON PAGE EIGHT? OKAY, MOVING TO PAGE NINE.
UH, THIS IS SIMPLY THE DETAIL OF THE COLUMN F ON THE PRIOR PAGE.
SO I CAN'T HAVE SO MANY COLUMNS THAT WE CAN'T READ THE PRINT.
SO I, I, I'VE NOW MOVED TO TWO PAGES INSTEAD OF TRYING TO, TO FORCE IT ONTO ONE PAGE.
SO YOU CAN SEE THAT THE BORROWING AMOUNTS UNDER COLUMN B IS THE $30 MILLION WE IDENTIFIED EARLIER.
THIS IS SIMPLY THE AMORTIZATION OF THE 30 MILLION, UH, COLUMN C AND D WOULD BE THE 35 MILLION PREVIOUSLY IDENTIFIED.
AND THEN EEF, AND THEN ONGOING G WOULD BE THE 40 MILLION.
AND THOSE AMOUNTS WILL CONTINUE TO EVOLVE AS YOUR ADMINISTRATION, UM, YOU KNOW, GIVES US, GIVES US PERIODIC UPDATES AS TO WHAT THEY'RE SEEING IN TERMS OF, UH, NEEDS AROUND THE DISTRICT, AS WELL AS, UM, YOU KNOW, COST ADJUSTMENTS MOSTLY, UH, I WOULD SAY INFLATION.
THIS IS I THINK THE SECOND TO THE LAST PAGE HERE.
SO PAGE 10 IS WHAT WE BRING TO THE FINANCE COMMITTEE AND THEN COMES TO THE FULL BOARD FOR APPROVAL, UH, AROUND THE TIME WE ISSUE YOUR 8% BOND ISSUANCE.
AND THEN WE SEND THIS TO THE COUNTY AUDITOR TO SHOW THEM OUR ARITHMETIC ON ALL THE BONDS WE HAVE TO PAY OVER AN 18 MONTH PERIOD WITH OUR BEGINNING FUND BALANCE AND THEN OUR FUTURE COLLECTIONS.
AND THIS PAGE, UH, DOESN'T MIRROR 100% BECAUSE IT'S MORE GRANULAR, BUT IT IS VERY CLOSE TO THE DEBT SERVICE PAGE IN YOUR AUDIT.
SO IF YOU GO TO THE AUDIT, PULL UP THE DEBT SERVICE PAGE AND PUT IT SIDE BY SIDE TO THIS, YOU'LL START SEEING SOME PARALLELS.
SO AT TOP WE HAVE ESTIMATED REVENUES.
WE HAVE A BEGINNING FUND BALANCE THAT I SHOW AT $12 MILLION WHEN YOUR FINANCE DEPARTMENT RECONCILES IN JULY.
THE COLLECTIONS THAT HAVE COME THROUGH JUNE, WE WILL HAVE A NEW UPDATED ESTIMATED BALANCE AT THAT TIME.
HOPEFULLY IT'LL BE MORE THAN 12 MILLION BECAUSE WE GO INTO A YEAR WITH A PROJECTION, AND THEN WE END UP WITH AN ACTUAL, AND IF WE'RE CONSERVATIVE, WE TYPICALLY OUTPERFORM.
SO THAT NUMBER WILL ADJUST THE MILL VALUATION, UH, TIMES BY THE 36.3 MILLS LEVIED PRODUCES THE 107.9 UH, MILLION DOLLARS IN REVENUE.
WE WILL HAVE A CONVERSATION WITH FINANCE COMMITTEE REGARDING THE, UM, UNAUDITED COLLECTIONS AS WE GO THROUGH THIS CYCLE.
AND WE WILL CONTINUE TO UPDATE WHAT THAT MILL NUMBER ON A CASH BASIS WOULD BE.
UH, THE STATE SOURCES ARE PRETTY STATIC.
UH, YOU CAN SEE IN THE AUDIT IT'S MOSTLY SIMPLY HOMESTEAD EXEMPTION, AND THOSE FUNDS KIND OF COME AROUND IN THE MAY TO JUNE TIMEFRAME.
SO THEY'RE NOT AVAILABLE FOR THE MARCH PAYMENTS, BUT THEY ARE AVAILABLE FOR THE FALL PAYMENTS.
SO THEN YOU HAVE TOTAL REVENUES, AND THEN YOU HAVE EXPENSES.
SO ON THE EXPENDITURE LINE, WE LIST EVERY
[01:20:01]
SINGLE BOND ISSUE THAT ARE CURRENTLY ON THE BOOKS AND THAT WE PLAN TO ISSUE AND PREVIOUSLY IDENTIFIED.AND I HAVE THOSE BOLD IN, IN GRAY, THE ONES TO BE ISSUED.
AND YOU CAN SEE THAT WE HAVE PAYMENTS THAT HAVE TO BE MADE THIS SEPTEMBER.
SO WE HAVE 7 MILLION, I'LL JUST ROUND IT, 7.4 MILLION IN TOTAL PAYMENTS DUE SEPTEMBER OF 2025.
WE HAVE OUR LARGEST PAYMENTS, WHICH IS THE, WHICH INCLUDES THE PRINCIPLE PIECE THAT'S DUE IN MARCH OF 2026.
AND THEN WE ALSO HAVE ANOTHER ROUND OF FALL PAYMENTS IN SEPTEMBER OF 2026 OF 8.8 MILLION.
YOU ADD THOSE UP, IT COMES TO 17,064,000.
AND THEN WE LOOK AT WHAT YOUR CASH BALANCE IS AT TWO INTERVALS AT THE END OF THE NEXT FISCAL YEAR, FISCAL YEAR ENDING 2026.
AND THEN WHAT THE LOW POINT IS IN DECEMBER 31ST, 2026, AFTER YOU MAKE THE FALL PAYMENTS AND THE NEXT TAX CYCLE STARTS BEFORE YOU RECEIVE ANY MONEY.
AND WE TRY TO TARGET RIGHT AROUND $5 MILLION AS THE LOW POINT GOING INTO OUR PRO FORMA EACH YEAR AS OF DECEMBER 31ST, 2026.
SO THAT NUMBER THAT YOU SEE RIGHT NOW, IT'S 4.6 MILLION IS GOING TO ADJUST AND IT WILL ADJUST BASED UPON A FEW FACTORS.
ONE, THE BEGINNING FUND BALANCE, IF ACTUAL IS MORE THAN ESTIMATE, THAT NUMBER WILL INCREASE SLIGHTLY.
AS THE VALUE OF A MILL EVOLVES THROUGH THE COLLECTION CYCLE, WE WILL MAKE AN ADJUSTMENT.
AND THEN NUMBER THREE IS THE PAYMENTS.
THE PAYMENTS THAT BONDS WERE GOING TO ISSUE.
I HAVE ESTIMATES AS TO INTEREST RATES, AND THEN WE'LL HAVE ACTUAL VERSUS VERSUS BUDGETED.
BUT THAT NUMBER THERE WILL ADJUST AND WE TARGET, UH, 5 MILLION EACH YEAR.
SO WHEN WE DO, UH, THE 8% ISSUANCE IN LATE AUGUST, WE WILL FINE TUNE THE PAYMENTS IN 2026 TO HIT THAT $5 MILLION TARGET.
I GIVE, I THINK, GIVE A, A MORE GRANULAR VIEW OF EVERY PAYMENT THAT YOU HAVE, ALL THE REVENUES THAT ARE COMING IN AND HOW THEY GET EXPENDED.
BUT MOST IMPORTANTLY, THAT NUMBER AS OF DECEMBER 31ST, 2026 CANNOT BE NEGATIVE.
NEGATIVE WOULD EQUAL A BAD EVENT END.
DOES EVERYONE UNDERSTAND THE CASH FLOW HERE ON HOW WE, UH, GO VERY GRANULARLY NOW, FROM AN APPROVAL PERSPECTIVE OVER THE LAST FEW YEARS, WHAT WE HAVE DONE IS WE FINALIZE THIS REPORT IN FINANCE COMMITTEE.
FINANCE COMMITTEE THEN VOTES TO TAKE IT TO THE FULL BOARD FOR APPROVAL.
THE FULL BOARD THEN, UM, APPROVES THIS AND THEN, UH, YOUR CHIEF FINANCIAL OFFICER PUTS A COVER PAGE AND SENDS IT TO THE COUNTY AUDITOR.
SO THEN THEY KNOW AND HAVE, UH, ALL OF THE PAYMENTS AND THEY CAN THEN DOUBLE CHECK WITH THEIR NUMBERS AND MAKE SURE THAT WE HAVE TWO SETS OF EYES ON EVERYTHING.
THERE ARE A LOT OF MOVING PIECES TO IT, AND IT TAKES A VILLAGE TO TO, TO PUT IT TOGETHER.
AND, AND, AND THE COUNTY AUDITOR IN PARTICULAR IS A PARTNER IN THIS PROCESS.
SO PROVIDING THIS PAGE, UM, SHOULD PROVIDE EVERYBODY WITHIN THE COMMUNITY THE COMFORT LEVEL THAT WE'RE NOT GONNA EVER HAVE A NEGATIVE THERE AT THE DECEMBER 31ST.
ANY QUESTIONS ON HOW THE CASH FLOW IN JUST ONE TAX CYCLE WORKS? YES, SIR.
UH, MY MIND IS WORKING A LITTLE SLOW, A LITTLE, LITTLE CATCHING UP.
UH, JUST ALSO IN THE, IN THE TERMS OF TALKING ABOUT WITH THE LAST PAGE IN, IN GOING INTO THIS PAGE HERE ALSO IN THE, IN THE EMERGENCY, IN THE EMERGENCY MONEY IS NAMED THERE, ISN'T THERE EMERGENCY PAY, UH, FOR STAFFING AS WELL, IN TERMS OF ALSO OF SOMETIMES IN OCTOBER.
I KNOW IN THE PAST WHERE WE HAVE, WHEN WE, WHEN WE COLLECT MONEY, AS IN, UH, MR. GUY SAID EARLIER ABOUT SOMETIMES WE HAVE THREE ELEMENTS OF THAT.
AND SOMETIMES THE, THE PAYMENTS MAY NOT COME AS FAST AS THE BILLS MAY COME AT SOME POINT.
DON'T WE USE SOME, SOME OF THAT MONEY TO KEEP, KEEP THE LIGHTS ON? I THINK THAT'S WHAT WHAT WAS USED BEFORE, CORRECT.
SO YOU'RE, YOU'RE TALKING ABOUT IS A TAX ANTICIPATION NOTE BECAUSE YOUR FUND BALANCE IS HIGH ENOUGH NOW YOU CAN GET THROUGH THAT PERIOD WHERE TAXES ARE NOT COMING IN AND, AND, AND, AND EASILY CONTINUE TO PAY THE BILLS, PAY SALARIES, KEEP THE LIGHTS ON AS YOU SAY, AND THEN THE TAX CYCLE REPEATS AND, UM, YOUR GENERAL FUND IS REPLENISHED.
AND, AND TO, SO WITH ME ASKING THAT, THE
[01:25:01]
WHERE, WHERE, WHERE IN THIS, IN THIS, IN THIS PROPOSAL, WHERE IN THIS ARE HA HAVE WE KIND OF WENT OVER THAT A LITTLE BIT IN, IN HERE? SO THAT GREAT QUESTION.SO THAT WOULD BE THE DECEMBER 31ST AMOUNT THAT'S IN ORANGE.
SO THAT'S, THAT IS OUR PROJECTED, YOU KNOW, WORST CASE SCENARIO BECAUSE I THINK WE'RE CONSERVATIVE, RIGHT? I THINK THE VALUE OF A MILL IS CONSERVATIVE.
THE BEGINNING FUND BALANCE AS OF NOW IS PROJECTED, BUT WILL, IT WILL BECOME KNOWN AS WELL AS THE PAYMENTS.
BUT BY KEEPING THAT AT A $5 MILLION TARGET, WE CAN BE OFF BY, YOU KNOW, I'LL JUST ROUND IT LIKE ALMOST 1.5 MILLS, RIGHT? WE HAVE A FLEXIBILITY OF THE VALUE OF A MILL IS 2.9 MILLION, RIGHT? AND THIS IS 5 MILLION.
WE HAVE THE FLEXIBILITY OF A LITTLE BIT MORE THAN ONE MILL TO TO BE OFF AND STILL BE OKAY.
AND, AND WE HAVE FOUND OVER A LONG PERIOD OF TIME THAT THE $5 MILLION NUMBER HAS BEEN A VERY COMFORTABLE NUMBER.
DOES THAT ANSWER YOUR QUESTION? THAT'S FINE, YEAH.
ANY QUESTIONS ON THIS BEFORE WE GO TO THE LAST PAGE? OKAY, PAGE 11.
SO OVER THE COURSE OF YEARS, WE HAVE WORKED TO DELINEATE EIGHT SPECIFIC GOALS AND OBJECTIVES AND NARROW THEM DOWN SO THAT EVERYBODY'S ON THE SAME PAGE.
AND I HAVE HIGHLIGHTED FOUR ELEMENTS OF, OF THAT WORK.
FIRST IS THE IDENTIFICATION OF THE FUNDING OF ANNUAL MAINTENANCE THROUGH THE 8% PROGRAM.
WE'VE GONE THROUGH HOW WE CALCULATE THE 8% DEBT LIMIT.
WE'VE GONE THROUGH HOW WE STRESS TEST IT.
WE'VE GONE THROUGH THE POLICY THAT'S BEHIND IT, AND YOU CAN SEE THAT THE GOAL IS TO FUND $30 MILLION PLUS BECAUSE WE HAVE ADJUSTMENTS IN THE FUTURE ANNUALLY THROUGH THE 8% DEBT LIMITATION SUBJECT TO ONGOING AND INFLATION ADJUSTMENTS.
AND THEN THE SECOND POINT IS TO STRUCTURE THE TERM OR REPAYMENT OF EACH BORROWING TO SUSTAIN THE PROGRAM WHILE PROVIDING FLEXIBILITY FOR FUTURE PROGRAM ADJUSTMENTS.
USED TO BE FIVE YEAR ISSUANCES.
WE ARE NOW AT TWO YEAR ISSUANCES.
WE USED TO NOT HAVE A POLICY IN TERMS OF MINIMUM CAPACITY TO MAKE SURE WE KEEP, WE NOW HAVE A POLICY AND THE $30 MILLION, IT'S A BOARD DECISION EACH YEAR.
BUT YOU CAN SEE WE HAVE BUILT IN SOME FLEXIBILITY BECAUSE WE JUST BELIEVE THAT INFLATION IS A FACTOR WE NEED TO TAKE INTO ACCOUNT ON A PRO FORMA OR HYPOTHETICAL OR A PLACEHOLDER BASIS.
THE SECOND IS THE FUNDING OF LARGE PROJECTS THROUGH THE REFERENDUM PROGRAM.
THERE WAS A TIME WHERE WE BUILT A HIGH SCHOOL THROUGH THE 8% PROGRAM AND IT USED UP A LOT OF CAPACITY.
WE JUST PAID THAT BOND OFF IN MARCH OF 2025.
THAT'S WHY WE'RE IN A BETTER PLACE HERE TODAY.
BUT THROUGH THAT PROCESS, WE'VE PUT TOGETHER THIS REFERENDUM PROGRAM.
YOU'VE HAD TWO SUCCESSFUL PHASES OF IT.
THE FIRST ESTABLISHED THE MILLAGE RATE WITH THE COMMUNITY, THE COMMUNITY DECIDED WHAT PROJECTS THEY WANTED.
DR. RODRIGUEZ THEN PARED THAT DOWN TO AN AMOUNT THAT WAS MORE ACHIEVABLE FOR TO, TO ACTUALLY, UH, BRING IN ON TIME AND ON BUDGET.
AND THEN WE DEFERRED THE SECOND PHASE TO A PHASE TWO FOR FUTURE REEVALUATION.
YOU THEN NOW HAVE HAD A SUCCESSFUL PHASE TWO, NO TAX INCREASE BECAUSE OF GREAT PLANNING.
AND WE ARE NOW IN THE PROCESS OF ISSUING THAT DEBT.
AND WE'VE IDENTIFIED THAT IN THE FUTURE, BASED UPON THE WAY WE'RE STRUCTURING THE REPAYMENT, YOU HAVE THE FLEXIBILITY TO DO A PHASE THREE WITHOUT A TAX INCREASE TO THE EXTENT IT'S WARRANTED.
AND THAT WILL BE A WHOLE NEW DISCUSSION, I ASSUME IN, IN A FEW YEARS.
HOPEFULLY THE PRIOR PAGE WON'T GO NEGATIVE AND I'LL STILL BE EMPLOYED IF WE GO NEGATIVE, FULLY EXPECT I WON'T BE STANDING HERE.
UM, SO THE, THE, THE BASIS OF DEFINING THE REFERENDUM PROGRAM IS BECAUSE OF LARGE PROJECTS.
SO FUND LARGE PROJECTS THROUGH REFERENDUM BONDS AS APPROPRIATE AND WHEN NEEDED, YOU ALL HAVE A GREAT PROCESS IN PLACE THAT HAS COMMUNITY INVOLVEMENT.
UH, THE THIRD IS STRUCTURED DEBT SERVICE, MILLAGE RATE, STRUCTURED DEBT SERVICE MILLAGE RATE.
SO APPLY FORWARD FORECASTING AND PERIODIC ASSESSMENTS OF THE APPROPRIATE BALANCE BETWEEN THE DEBT SERVICE MILLAGE RATE, A REFRESH OF ONGOING NEEDS AND MAINTAINING APPROPRIATE DEBT LIMIT AVAILABILITY.
SO YOU HAVE THE SCALES TAXES VERSUS NEEDS, TAXES VERSUS NEEDS.
AND RIGHT NOW I THINK THAT WE'VE DONE A VERY GOOD JOB AT IDENTIFYING 36.3, ABSORBING THE INFLATION THAT WE ABSORBED AND STILL HAVE A VERY VIABLE ROBUST PROGRAM GOING
[01:30:01]
FORWARD FOR THE CURRENT BOARD AND FOR FUTURE BOARDS.AND THEN LASTLY IS MANAGING CREDIT RATINGS.
MAINTAIN THE 8% IN REFERENDUM PROGRAMS WHILE PRESERVING THE HIGHEST POTENTIAL BOND RATINGS FROM MOODY INVESTORS SERVICE AND STANDARD AND PORES, AND MAINTAIN AN APPROPRIATE FUND BALANCE TO SUPPORT THE AA ONE AND AA FLAT CURRENT CREDIT RATINGS, WHICH WE HAVE DONE SUCCESSFULLY FOR A NUMBER OF YEARS.
AND YOU CAN SEE THE PYRAMID OF THE RATINGS TO THE RIGHT HAND SIDE.
AND IF THERE ARE ANY QUESTIONS THAT CONCLUDES MY DEBT DAY PRESENTATION.
UM, WE'VE NOW HEARD FROM OUR FINANCIAL ADVISOR AND, UH, HE'S THE BEST.
WE NEED TO, WE NEED TO HAVE TO HEAR FROM THE OTHER PART OF THAT TEAM.
ATTORNEY HEISER, WOULD YOU PLEASE COME UP AND INTRODUCE YOURSELF AND LET THE NEW BOARD MEMBERS KNOW YOUR FUNCTION AND ROLE IN THIS TEAM THAT'S GOT US WHERE WE ARE TODAY.
WELL, THANK YOU COLONEL GEIER.
IT'S GREAT TO BE WITH Y'ALL THIS MORNING.
UH, MY NAME IS FRANNIE HEISER.
MY LAW FIRM IS NAMED BUR FOREMAN, BUT TRADITIONALLY WE HAVE BEEN THE MCNAIR LAW FIRM AND HAVE WORKED WITH THE SCHOOL DISTRICT LITERALLY PERSONALLY SINCE 1989.
AND I HAVE TO SAY THAT WHEN MR. CAMPBELL WAS HERE, MR. CAMPBELL AND I WERE THE TWO, UH, LONGEST SERVING PEOPLE, UM, HERE IN THIS ROOM.
UH, I HAVE THE PRIVILEGE AND PLEASURE OF WORKING WITH Y'ALL, UM, TO ISSUE THE DEBT THAT BRIAN HAS OUTLINED.
UH, WE PREPARE THE CLOSING DOCUMENTS.
WE GIVE THE LEGAL OPINIONS NECESSARY FOR THE, THE TRANSACTION TO CLOSE.
SO WE SAY THAT BRIAN DOES THE NUMBERS AND, AND I DO THE WRITING.
AND SO THAT'S SORT OF, SORT OF OUR, UH, COMBINATION AS A TEAM.
UM, I WILL BE BACK WITH Y'ALL THIS SUMMER, MAYBE IN JUNE, UH, TO, UH, HAVE PRESENTED THE RESOLUTION FOR THE 8% BOND ISSUE.
AND WE'LL ASK Y'ALL TO ADOPT THAT EARLY IN THE SUMMER.
WE'LL GET THE PAPERWORK READY, WE'LL SELL IT IN AUGUST SO THAT THE, UM, DEBT SERVICE MILLAGE WILL BE IDENTIFIED AND IT'LL BE ON THE TAX BILLS IN THE FALL.
AND I'M ALWAYS AVAILABLE THROUGH, UM, THROUGH TANYA TO ANSWER ANY QUESTIONS Y'ALL MIGHT HAVE.
WELL, OH, MS. CHLOE, THANK YOU.
I DON'T HAVE A QUESTION, BUT I DO SAY, MS. BRANDY, IT IS A PLEASURE WORKING WITH YOU AND YOUR TEAM.
I WILL BE READING IT FOR THE NEXT FIVE DAYS,
UH, I WANNA, THANKS ALSO, THANK YOU BOTH.
UM, TOOK US AN HOUR AND A HALF.
IT NORMALLY TAKES AN HOUR, BUT WE, WITH THE NEW BOARD MEMBERS, UH, YOU NEEDED TO HAVE A LITTLE BIT MORE IN DEPTH, UH, DISCUSSION.
AND, UH, NEXT YEAR IT'LL BE OLD HAT TO YOU.
AND, UM, I WILL SEE Y'ALL PROBABLY IN JUNE.
AND I THINK, UH, MS. CROSBY HAS AN ITEM FOR YOU.
JUST NEED, UH, THE MOTION FOR THE OPERATIONAL EXPECTATION.
UM, THANK YOU, UH, MR. CHAIR AND BOARD MEMBERS.
I MOVE TO ACCEPT OPERATIONAL EXPECTATIONS 6.9 THROUGH 6.17, DEBT ADMINISTRATION.
UM, TO GO BACK TO THIS, UM, AT THE BEGINNING OF THE, AT THE BEGINNING OF THIS, UM, DISCUSSION, YOU GAVE US SOME, UH, SOME FEEDBACK.
BASICALLY, BASICALLY UPON YOU, YOU WERE TELLING US ABOUT WHY THIS WOULD BE NEEDED, B BASED UPON, UH, THIS GOING AGAINST THE BOARD'S, UH, POLICY WE'RE NOT GOING AGAINST, BUT, BUT THERE'S A POLICY THAT, THAT, THAT, THAT MAKES THIS COME UP.
IS IT, WERE YOU SAYING THAT THERE IS A, THE, THE OPERATIONAL EXPECTATION THAT YOU, THAT IS THE MOTION TODAY IS THE REQUIREMENT THAT MAKES US REPORT ALL OF THESE ITEMS. AND AS PART OF THAT, WE BRING MR. NEWICK AND MS. HEISER IN TO GIVE THE DETAILS BEHIND WHY AND, AND BEHIND THE SUMMARY THAT I PROVIDED YOU.
AND, AND PRIOR TO THAT, YOU MENTIONED THAT, THAT, THAT, THAT THIS POLICY WAS PUT IN BY DAVID SCR, WAS, IS, IS THIS NO ONE PARTICULAR POLICY RELATED TO THE UNUSED 8% FUNDS? HE MADE THE MOTION ORIGINALLY TO, UM, MOVE OLD UNUSED FUNDS TOWARD THE CURRENT 8% FUNDING CYCLE.
[01:35:01]
TO HELP OFFSET SOME OF BORROWINGS THAT WERE NEEDED FOR THAT PROGRAM.AND ALSO, AND ALSO, DO YOU REMEMBER, DO YOU REMEMBER HOW HOW THIS CAME UP JUST FOR, FOR, UH, IT, WE REPORTED EVERY YEAR TO THE BOARD? WELL, THE, THE, THE DEBT, THE DEBT DAY PRESENTATION IS PART OF THE REQUIREMENTS WITHIN OE 6.9 AND SIX POINT 17 TO PROVIDE, UH, THROUGH SIX POINT 17 TO PROVIDE THE BOARD WITH INFORMATION RELATED TO THE DEBT.
SO WE HAVE TO, WE HAVE TO DO OUR WORK THROUGHOUT THE YEAR AND AT THE APPROPRIATE TIME THEN BRING FORWARD, UH, THE OE PART OF THAT IS THE WORK THAT WAS JUST HIGHLIGHTED FOR YOU.
BUT IN, IN UNDERSTANDING THIS, UH, MR. SRI MADE THIS MOTION ALSO IN TERMS OF PUTTING ALL THE 8% MONEY, UH, MONEY, UH, BECAUSE I BELIEVE THAT ONE POINT IN TIME THAT WE DID THAT, WE THAT, AND WE DID FIND SOME MONEY THAT, THAT, UH, THAT, THAT WAS BEING USED FOR OTHER, OTHER PROJECTS, SO THAT THE BOARD WOULD BE AWARE OF, OF, UM, OF, OF THE OTHER MONEY.
IS, IS, IS, IS, IS, WOULD THAT BE AN ACCURATE, AN ACCURATE STATEMENT FORWARD? WE BROUGHT, NOT PUTTING IT ON ANYONE, BUT JUST CLARITY OF, OF WHY, WHY THE, WHY, WHY, WHY, WHY THE ORIGINAL, UH, MOTION WAS MADE.
UM, I WOULDN'T SAY THAT WE FOUND MONEY.
WE ALWAYS HAVE AN ACCOUNTING OF ALL OF THE ACCOUNTS THAT, THAT ARE USED OR UNUSED OR CLOSED OR, AND SO ON.
SO THERE WAS A MOTION TO BRING THOSE DOLLARS FORWARD IN A REPORT TO THE BOARD.
SO THAT'S WHAT WE'VE BEEN DOING FOR SEVERAL YEARS.
UH, MAKING SURE THAT YOU'RE STILL AWARE THAT THOSE FUNDS ARE AVAILABLE, WHAT THEY'VE BEEN COMMITTED FOR, AND WHAT'S REMAINING AND WHAT CAN ROLL FORWARD TO THE NEW CYCLE.
SO IT GIVES THE BOARD AN OPPORTUNITY TO LESSEN THE, THE BORROWING FOR THE NEXT CYCLE.
SO IT WAS A, IT WAS A VERY VALID, I, I SUPPORT THE MOTION.
IT WAS, UH, IT'S SOMETHING THAT THE BOARD NEEDS TO BE AWARE OF EVERY YEAR, SO.
BUT JUST FOR, JUST TO CLEAR, JUST TO BRING, WHAT I'M SAYING IS THAT IN, IN OPERATIONS, WE JUST FOUND THAT THERE WERE, THAT THERE WAS JUST SOME DIFFERENT PROJECTS THAT WERE, THAT WERE, THAT, THAT HAD BEEN DONE AND COMPLETED.
AND WE HAD JUST FOUND OUT THAT THERE WERE, THAT THERE WERE, THAT HAD BEEN MONEY USED TO DO OTHER PROJECTS.
AND SO THAT WAS THE POINT OF US BRINGING THAT, BEING, BEING A PART OF THE OPERATIONS COMMITTEE MEMBER.
THAT'S WHY SOME OF, OF US, UM, MADE THE MOTION TO BRING THE, TO BRING THIS, UH, MOTION FORWARD FOR THE BOARD.
THAT'S JUST A, A, A LITTLE BACKGROUND.
I, I'M JUST, I'M JUST GRANTING BACKGROUND ON WHAT PREP, BECAUSE SOMEONE MAY WONDER, WELL, WHY, WHY WOULD HE HAVE TO BRING THIS FORWARD? OR WHY, YOU KNOW, BEING THAT WE'RE DOING SUCH A GOOD JOB, I JUST WANNA GIVE THE BACKGROUND ON IT OF WHY THIS EVEN BECAME A MOTION.
ANY OTHER DISCUSSION? WE'LL CALL THE QUESTION, UH, ALL THOSE IN THE ROOM.
UH, YOU HAVE A MOTION AND A SECOND.
ALL THOSE IN FAVOR IN THE ROOM, PLEASE, UH, SAY AYE.
I HEARD EVERYBODY, UH, PASTOR GORDON, HOW DO YOU VOTE? PASTOR GORDON SAYS, AYE.
THANK YOU, MS. HAY, HOW DO YOU VOTE? A AYE.
THANK YOU, MS. BOATWRIGHT, HOW DO YOU VOTE? VOTE RIGHT.
AND, UH, LET US TAKE A FIVE, 10 MINUTE BREAK, UH, FOR A LITTLE RESTROOM, STOP, AND WE'LL COMMENCE AGAIN AT, UH, TEN FIVE MINUTES.
TWO, LET'S CALL THE MEETING BACK IN ORDER.
I WANNA TAKE A MINUTE TO RECOGNIZE THE TEAM OF PEOPLE THAT ARE HELPING TO MANAGE, UH, ROBIN CPER, OUR, UH, BOARD SECRETARY'S WORK TODAY.
UH, THERE ARE A LOT OF PEOPLE THAT ARE DOING A GREAT JOB AND ANTICIPATING OUR NEEDS, AND I JUST WANT TO RECOGNIZE YOU ALL.
I'M NOT GONNA SAY IT BY NAME 'CAUSE I'LL MESS 'EM UP.
BUT, UM, I THINK, UH, WE APPRECIATE Y'ALL AND THANK YOU FOR ALLOWING ROBIN TO TAKE A DAY OFF FOR A CHANGE
UM, SO WE ARE PROVIDING, I'M PROVIDING A BUDGET UPDATE, UH, TODAY.
WE, AS WE DO EACH YEAR, UM, I WANNA GIVE A LITTLE PRELUDE TO THAT IS THAT ONE, THERE IS NO ACTION REQUIRED TODAY.
UH, THAT WILL, UM, BE LATER ON IN THE BUDGET PROCESS.
AND TWO, IS YOU WILL NOT SEE LEVEL OF DETAIL TODAY THAT YOU MAY BE LOOKING FOR.
UM, THOSE DETAILS ARE STILL BEING COMPILED,
[01:40:01]
PUT TOGETHER BY A TEAM.WE HAVE THREE FOLKS IN THE BUDGET OFFICE, ONE OF WHICH IS MORE CAPITAL PROJECTS THAN, THAN ANY OTHER.
LOU ACKERMAN IS OUR CAPITAL PROJECTS ANALYST.
KATIE ABAR IS OUR BUDGET COORDINATOR.
AND THEN JENNIFER HAMLIN, OUR DIRECTOR OF BUDGETING.
SO WE HAVE THREE PEOPLE MANAGING A $359 MILLION BUDGET, UH, WHICH IS, WE'RE VERY FORTUNATE TO HAVE THAT TEAM OF PEOPLE WE USED TO DO IT WITH, UM, TWO MEN IN A TRUCK
UM, AND SO, AND MS. PHILLIPS AND I, UH, ALSO SUPPORT THAT FUNCTION, UH, AS WELL AS DOING OTHER THINGS AS WELL.
BUT, UM, THEY'RE, THEY'VE BEEN A GREAT TEAM TO BE ABLE TO, UH, PUT THIS TOGETHER AND WE STILL HAVE A WAYS TO GO.
UH, WE DON'T KNOW THE DETAILS YET.
UM, IT TAKES A WHILE TO GET THOSE NUMBERS IN AND GET THEM SCRUBBED FOR ANY DUPLICATIONS, ANY THINGS THAT WE MISSED TO MAKE SURE.
'CAUSE THEY ARE A HUNDRED THOUSAND EXPENDITURE ACCOUNTS IN OUR GENERAL LEDGER.
SO, UM, WE ARE IN THE NEXT COUPLE OF WEEKS, WE'LL BE FINE TUNING THAT, UH, GETTING A LITTLE MORE INFORMATION ON REVENUES AND THEN BEING ABLE TO COME FORWARD ON APRIL 25TH WORK SESSION WITH THE DETAILS.
UH, AND A PLAN, A SCENARIO FOR US TO MOVE FORWARD, UM, FOR, UH, WE'LL SEE IT AT LEAST THREE TIMES APRIL 25TH, UH, AND THEN THE FIRST MEETING IN MAY, AND THEN THE SECOND MEETING IN MAY FOR FINAL APPROVAL.
SO, AND THEN AFTER THAT, WE WILL BE HEADED TO, UH, COUNTY COUNCIL FOR, UH, UM, THEIR APPROVAL.
SO THE NEXT SLIDE IS, UH, JUST, UH, A BRIEF CALENDAR YOU'VE SEEN BEFORE OF OUR BUDGET DEVELOPMENT.
UH, WE ARE IN THE MARCH 28TH LINE ITEMS. SO WE'RE DOWN, UH, ON THE DEVELOPMENT STAGE.
UH, WE STILL HAVE TO PUT, UH, GET SOME LOCAL TAX REVENUES, INFORMATION REPORTED FOR THE MONTH OF MARCH, UH, WHICH WILL COME IN APRIL, UH, NEAR THE END OF APRIL.
WE MAY NOT HAVE IT BEFORE OUR MEETING, BUT WE'LL DO THE BEST WE CAN.
UH, WE JUST RECEIVED, UM, FEBRUARY NUMBERS ABOUT TWO DAYS AGO.
UM, SO WE DO HAVE SOME UPDATED INFORMATION AND WE ARE IN A, IN GOOD SHAPE WITH THAT.
UM, AND ALSO WE'RE WAITING ON MILLAGE NOTIFICATION FROM THE DEPARTMENT OF REVENUE, UH, OR THE REVENUE AND FISCAL AFFAIRS OFFICE.
UM, SO THAT WILL TELL US HOW MUCH, UH, WE ARE ALLOWED TO GO UP IN MILLAGE, UH, FOR THIS YEAR.
AND I'LL TALK A LITTLE BIT ABOUT MORE MILLAGE IN JUST A, IN ONE OF THE SLIDES LATER ON.
AND THEN WITH THAT INFORMATION, I COMPILE, WE BELIEVE PROGRESS, WHAT WE BELIEVE IS THE BEST, UM, EXPENDITURE BUDGET TO BRING FORWARD, MATCH IT WITH THE REVENUES WE HAVE AVAILABLE, ANY, PERHAPS RECOMMEND ANY POTENTIAL TAX INCREASES IF NEEDED.
UH, WHAT THE TEACHER'S SALARY PROPOSAL WILL BE.
WE'LL BRING ALL THOSE DETAILS FOR YOU NEXT TIME.
SO A LOT OF WORK LEFT TO DO, BUT, UH, WE'LL PULL IT ALL TOGETHER BY THE END OF APRIL.
UM, SO ONE OF OUR REQUIREMENTS IS THAT WE, UM, WELL ACTUALLY, I'M NOT SURE IF IT'S A REQUIREMENT, BUT WE, WE BELIEVE THAT IT'S EXTREMELY IMPORTANT TO HAVE, UH, ENGAGEMENT IN OUR COMMUNITY, UH, IN OUR STAFF, IN OUR AND, UH, IN OUR SCHOOLS.
SO WE GET A LOT OF FEEDBACK FROM OUR BUDGET.
NOW, MANY OF THESE SLIDES ARE, ARE, YOU'RE GONNA SEE VERY SIMILAR, SO I'M NOT GONNA BELABOR THOSE THAT YOU'VE SEEN BEFORE.
BUT, UH, WE HAVE PUT OUT A BUDGET SURVEY, UM, AND, UH, WE HAVE SPOKEN WITH YOU ALL AND WORK DONE INTO EXERCISE, PERFORMED AN EXERCISE TO, UH, SEEK, UH, PRIORITIES OF THE BOARD.
UH, WE HAVE A SURVEY THAT'S GONE OUT TO PRINCIPALS, AND WE HAVE A STUDENT LEADERSHIP, STUDENT ADVISORY MEETING OF HIGH SCHOOL STUDENTS, UM, LEADERS THROUGHOUT THE COMMUNITY, UH, THAT WE WILL BE MEETING LATER IN A, THE MONTH OF APRIL.
UM, WE HAD THE DEPARTMENTAL, UH, INPUT THROUGH THEIR BUDGETARY REQUESTS.
AND, UH, FINALLY, YOUR, THE BOARD HAS ESTABLISHED ITS PRIORITIES.
THE NEXT SLIDE SHOWS THAT THOSE THREE PRIORITIES OF ACADEMICS AND PROGRAMS. THE SECOND IS TEACHER RAISES, STAFF RAISES, BUS DRIVER RAISES, AND THREE IS THE SCHOOL SECURITY.
YOU'VE GOT PERSONNEL TRAINING AND OTHER PROTOCOLS.
UH, I WOULD ADD, UH, EQUIPMENT AND SUPPLIES FOR THE SECU SCHOOL SECURITY SUCH AS RADIOS, COMMUNICATION DEVICES, AND THAT SORT OF THING.
THE NEXT SLIDE PROVIDES A SURVEY OF RESULTS AND THE TOP AREAS THAT, UM, PRINCIPALS WERE ASKED TO RANK, AND THEY TOO AGREED WITH THE, THE FORMAT.
UH, 78% OF THE VOTES WERE FOR ACADEMIC PROGRAMS, UH, 72%.
UH, THE VOTE, THEY VOTED WHEN RANKING THEM ONE, TWO, AND THREE.
[01:45:01]
STAFF RAISES AS SECOND, AND 61% RANKED SCHOOL SECURITY AS THIRD.SO IN THAT ORDER, UH, THEY AGREED WITH YOUR ASSESSMENT AND YOUR PRIORITIES TO, AND HELPED US TO DEVELOP, UM, THEIR, UH, THEIR PRIORITIES AS WELL.
THE NEXT SLIDE IS BUDGET SURVEY.
UH, BCSD CONNECTED IS THE SECTION OF OUR WEBSITE THAT IS, UM, MANAGED BY, UH, THE COMMUNICATIONS OFFICE.
UH, WE WORK WITH THEM TO GET A SURVEY OUT EACH YEAR.
UH, WE DID HAVE TOTAL VISITS OF ONE AND A HALF, UH, UH, 1000, UH, USERS.
VISITORS WERE 59 INFORMED VISITORS WERE 400 AND AWARE VISITORS WERE 8 63.
I CAN'T TELL YOU WHAT EACH OF THOSE CATEGORIES MEAN, BUT THE DEEPER YOU GET DOWN IT, WHEN YOU'RE ENGAGED, YOU'RE ACTIVELY COMMENTING ON THINGS WITHIN AND MAKING, UM, MAKING, UH, EFFORTS TO PARTICIPATE IN THE PROCESS.
ON THE NEXT SLIDE, IT PROVIDES THE QUESTIONS ON THE LEFT SIDE OF THE SURVEY QUESTIONS.
WE WANNA KNOW WHAT THINGS HAVE BEEN SUCCESSFUL CONTRIBUTING TO OUR STUDENTS' ACADEMIC SUCCESS, AND WHAT DO WE THINK THAT PRIORITIES SHOULD BE IN THE NEXT YEAR'S BUDGET TO HELP ADVANCE THAT ACADEMIC SUCCESS.
UM, SO SOME OF THE COMMENTS WERE INCLUDED, IMPROVED PROGRAMS SUCH AS COLLEGE AND CAREER PREPARATION, UM, GIFTED AND TALENTED.
UH, THE TIDES PROGRAM, WHICH IS OUR DUAL ENROLLMENT PROGRAM.
UH, AND E-LEARNING, ALSO A SAFE LEARNING ENVIRONMENT, UH, WAS LISTED IN A COMMON, UH, COMMON, UH, REFERENCE OR COMMENT MADE IN THE RESULTS.
AND, UH, OFTENTIMES THE INCREASING THE COMPENSATION FOR ALL EMPLOYEE CATEGORIES WAS MENTIONED AS WELL.
SO WE'RE SEEING THAT A LOT OF THESE RESULTS ALL ALIGN TO THE SAME, UH, PRIORITIES.
THE NEXT LINE, NOT ONLY DO WE ALIGN WITH THE PRIORITIES, WE ALIGN IT WITH THE, ALIGN THE BUDGET WITH THE STRATEGIC PLAN.
OUR BUDGET TEAM MEM HAVE MEMBERS THAT ARE ON THE STRATEGIC PLAN COMMITTEE, AND SO THEY HELP DEVELOP THE STRATEGIC PLAN, HELP BUILD IT, AND ARE ACTIVELY PARTICIPATING IN THE ONGOING WORK THAT THAT TEAM IS DOING.
AND SO, UH, THOSE, THE CS ACRONYM IS, UH, SUPPORT, ENGAGEMENT, ACHIEVEMENT AND STEWARDSHIP.
AND WE FEEL LIKE STEWARDSHIP FITS FINANCE AND THE BUDGET PROCESS VERY WELL.
AND, UM, IT'S, UH, CARE PROVIDES FOR A CAREFUL AND RESPONSIBLE MANAGEMENT OF RESOURCES AND INVESTMENTS.
SO THAT IS OUR OBJECTIVE, IS TO BE, UH, GOOD STEWARDS OF TAXPAYER DOLLARS IN THE WORK THAT WE'RE DOING.
WHILE PROVIDING FOR THE NEEDS OF THE DISTRICT.
UH, AGAIN, THERE'S, UH, WE STRATEGIZE TO MAXIMIZE OUR ACADEMIC OUTCOMES.
UH, WE'RE CALCULATING REVENUES, UH, TO SUPPORT THE EXPENDITURES, THE NEEDS THAT WE HAVE.
UM, WE NEED A BALANCED BUDGET.
WE NEED TO, UH, MAINTAIN SUFFICIENT DOLLARS TO NOT HAVE TO BORROW A TAX ANTICIPATION NOTE, WHICH WE TALKED ABOUT A FEW MINUTES AGO, THAT, THAT LOW POINT IN THE FALL WHEN, UH, TAX REVENUES HAVE BEEN EXHAUSTED AND SPENT ON THE, THE LEVEL EXPENDITURES THAT WE HAVE THROUGHOUT THE YEAR, AND RIGHT BEFORE TAX REVENUES COME IN, IS THE LOW POINT IN OUR BANK ACCOUNT, BASICALLY.
SO WE, WE WANNA HAVE ENOUGH IN OUR FUND BALANCE AT JUNE 30TH TO COVER, UH, ANY SHORTFALLS THAT WE HAVE IN CASH.
SO WE WANT STAY ABOVE, UM, STAY ABOVE WATER IN THE FALL, AND THEN TAX REVENUE BECOMES TO COME IN RAPIDLY IN DECEMBER, WELL, SLOWLY IN DECEMBER, RAPIDLY IN JANUARY.
SO WE HAVE TO BRIDGE THAT TIMEFRAME OF CASH FLOWS IN ORDER TO NOT HAVE TO BORROW MONEY TO MAKE UP FOR THAT.
AND WE'VE BEEN SUCCESSFULLY DOING THAT FOR THREE OR FOUR YEARS NOW, AND WE INTEND TO CONTINUE KEEPING OUR FUND BALANCE, UH, AND BUILDING A BUDGET TO KEEP OUR FUND BALANCE AT A LEVEL AT 20%, WHICH IS THE LEVEL THAT WE SELECTED AS BEING THE SPOT, THE SWEET SPOT OF OUR FUND BALANCE TO AVOID BORROWING ADDITIONAL FUNDS IN USING THE TAN.
UM, AGAIN, WE WANNA MAINTAIN A STRONG CREDIT RATING.
WE TALKED A LOT ABOUT THAT THIS MORNING.
AND THEN MINIMIZING THE FINANCIAL IMPACT ON TAXPAYERS AND, UH, FINANCIAL IMPACT USUALLY COMES IN THE FORM OF A MILLAGE INCREASE.
AND SO IN A COUPLE OF SLIDES I'LL TALK ABOUT THAT.
UM, BUT FIRST OF ALL, JUST, JUST A REMINDER ON OUR REVENUE SOURCES ON THE NEXT SLIDE.
UM, SO LOCAL, STATE, AND FEDERAL, UH, LOCAL IS 62% OF OUR TAX REVENUE TAX, UH, LOCAL 62% OF OUR TOTAL REVENUE, EXCUSE ME.
UM, AND THAT IS ALMOST ENTIRELY, UM, TAX REVENUE.
[01:50:01]
AND THAT IS WHAT WE RECEIVE MOSTLY IN DECEMBER, JANUARY, AND THEN A TRICKLE THROUGHOUT THE REMAINDER OF THE YEAR.UH, LITTLE UNPREDICTABLE, BUT AGAIN, WE DO THE BEST WE CAN WITH, UH, LOOKING AT THE CASH THAT'S IN THE BANK, MAKING PROJECTIONS FOR THE NEXT BUDGET YEAR.
UM, WE ESTIMATE A GROWTH FACTOR.
UM, AND LAST THIS YEAR, IT'S LOOKING LIKE SIX TO 7% GROWTH.
I'M GONNA BE EXPECT, UH, UH, PREDICTING, UH, A MUCH MORE CONSERVATIVE GROWTH FACTOR, UH, IN, BECAUSE IT'S BEEN DECLINING THE LAST COUPLE OF YEARS.
SO I WILL GO A LITTLE LOW AND AS, UH, MR. NEW'S STRATEGY, UM, I LIKE IT TO BE A LITTLE CONSERVATIVE AND OUTPERFORM MY PROJECTIONS.
SO THAT'S THE STRATEGY, BUT I WANNA BE AS CLOSE AS POSSIBLE.
UM, KIND OF THE PRICE IS RIGHT MODEL YOU, YOU DON'T WANNA GO OVER
I THINK I, I DON'T MIND GOING A LITTLE OVER, I JUST DON'T WANNA COME UNDER.
THANK YOU FOR THIS OVERVIEW SO FAR.
UM, I'M LOOKING AT THE FEDERAL, UH, REVENUE MM-HMM
THE GOOD QUESTION PRESIDENT HAS DIS DISMANTLE.
SO HOW WILL THIS AFFECT, I MEAN, 0.4% DOESN'T SEEM LIKE A LOT TO ME IN TERMS OF, YOU KNOW, 37.4% AND 62.2%, BUT IF WE, WHEN LOSING THIS MONEY, HOW WILL WE COMPENSATE FOR WHAT THAT MONEY WAS DOING FOR US? I THINK ONE OF THE FIRST THINGS, AND THEN I'LL, I'LL, I'LL LET TANYA JUMP IN, BUT ONE OF THE FIRST THINGS IS WE STILL DON'T KNOW, WE HAVEN'T BEEN GIVEN, GIVEN ANY SPECIFIC INFORMATION ABOUT HOW OR WHAT, UH, IMPACT THAT'S GONNA BE IN TERMS OF THE ACTUAL DOLLARS THAT, THAT WE WOULD RECEIVE.
THE SECOND THING IS THAT WENT, YOU KNOW, 0.4% RIGHT? MAY NOT SEEM LIKE A LOT IN RESPECT TO, TO THE OVERALL OTHER PERCENTAGES.
SOME OF THOSE FEDERAL DOLLARS ARE SPECIFICALLY TARGETED DOLLARS, LIKE TITLE $1 THAT GO, UH, PARTICULARLY TO HIGH POVERTY SCHOOLS, RIGHT? RIGHT.
UM, WHERE, WHERE ADDITIONAL DOLLARS MAY BE NECESSARY.
I THINK THE OTHER THING IS, UM, THAT THERE ARE OTHER FEDERAL FUNDING, UH, SUCH AS PROFESSIONAL DEVELOPMENT FUNDING FOR EDUCATORS, WHICH ARE ESSENTIAL IN MAINTAINING AND SUSTAINING, UH, UH, HIGH QUALITY INSTRUCTION FOR KIDS OR AROUND OTHER PROGRAMS THAT WE OFFER, RIGHT? SO, SO THAT'S JUST, YOU KNOW, TWO EXAMPLES, RIGHT? AND SO TANYA, I'LL LET YOU CHIME IN ON, UH, YOU KNOW, ANYTHING ELSE YOU WANNA SAY, BUT WITH RESPECT TO THE IMPACT OF THAT 0.4%, UM, YOU KNOW, SHE'S, SHE'S ASKING, I THINK, HOW DO WE MAKE THAT UP, RIGHT? YES.
AND BECAUSE IT'S, IT'S, IT'S ALREADY, IT'S HERE.
WE MAY NOT SEE THE IMPACT RIGHT NOW, THE OTHER, BUT WE SHOULD BE, WE SHOULD BE GETTING READY FOR IT.
BECAUSE IT WILL HAVE AN IMPACT ON, UM, TITLE ONE.
AND, AND, AND MAYBE SPECIAL ED OR, YOU KNOW, BUT WE NEED TO MAKE SURE THAT WE CAN TAKE CARE OF YOU.
THANK YOU FOR BRINGING SPECIAL ED UP.
THAT IS ANOTHER MAJOR ONE THAT, THAT FEDERAL FUNDING.
THAT'S WHY DA, UH, TAPS INTO, BUT I THINK THE OTHER THING IS THIS, UM, UM, LOST MY TRAIN OF THOUGHT.
THE, THE, UM, NO, WELL, THAT, THAT'S COMING FROM THE US DEPARTMENT OF AGRICULTURE, SO IT'S NOT NECESSARILY THE DEPARTMENT OF OF EDUCATION, BUT I, I SUPPOSE THEY'RE NOT IMMUNE TO, UH, UH, SOME OF THE CUTS AND THINGS LIKE THAT COMING NO.
UM, YOU GO TANYA, IT MAY SPARK MY MEMORY AND I'LL BRING IT BACK IF I GET IT.
I'M NOT GETTING OLD, BY THE WAY.
I'M JUST, YOU KNOW, TERRY SU SU SUPERINTENDENT.
JUST WANNA SAY, WELCOME TO THAT FORGET MEMORY CLUB, OKAY? AMEN TO THAT.
UM, MS. UM, MS. CROSBY, I THINK YOU DID SOME, YOU IDENTIFIED A CERTAIN AMOUNT OF, OF FUNDING THAT WAS COMING FROM CERTAIN PLACES.
UH, SO CAN YOU SHARE THAT WITH US? BUT IN
[01:55:01]
ADDITION TO THAT, THE US DEPARTMENT OF AGRICULTURE ALSO PROVIDES SIGNIFICANT FUNDING IN THE FOOD AREA.I DON'T KNOW IF THAT WAS INCLUDED IN THE INITIAL AMOUNT THAT YOU, YOU, YOU SHARED.
UH, MR. DO IN LIGHT OF MY RECENT LAPSE, AND IT CAME BACK TO ME.
DO YOU MIND IF I INTERJECT BEFORE? ABSOLUTELY.
I DON'T WANNA, BEFORE HE FORGETS AGAIN, YOU KNOW, MR. CROSBY'S YOUNGER.
SO WITH THAT, UH, FROM WHAT I'M UNDERSTANDING, THE DIRECTION IS THAT THE DOLLARS, WHATEVER THEY ARE GOING TO BE, WOULD FLOW TO THE STATE GOVERNMENT, AND THE STATE GOVERNMENT WOULD THEN TAKE THE JOB OF DISTRIBUTING THE TITLE $1.
RIGHT? WE NEED TO BE CON CONSCIOUS THAT BEAUFORT COUNTY AND THE STATE OF SOUTH CAROLINA EMPLOYS AN INDEX OF TAX PAYING ABILITY AS THEY FUND SCHOOLS, WHICH MEANS THAT, IN ESSENCE, THE GREATER THE WEALTH IN THE COMMUNITY, RIGHT? THE LESS PER PEOPLE YOU MIGHT GET.
SO, SO THAT WOULD LEAD ME TO THINK THAT WHATEVER YOU WOULD NORMALLY GET IN TERMS OF TITLE DOLLARS, IF THAT SAME METHODOLOGY IS APPLIED, YOU WOULD GET LESS FROM THAT WITH RESPECT AS IT COMING DOWN FROM THE STATE.
AND THEN THE MAKEUP OF THAT DIFFERENCE TYPICALLY THEN GOES TO THE LOCAL LEVEL FUNDING.
THIS JUST SORT OF PASSING DOWN.
BUT AS A COUNTY, IF THAT'S AFFECTED BY THE SAME METHODOLOGY, THEN THE INDEX OF TAX PAYING ABILITY, IF THAT KICKED IN, THEN WE COULD SEE MAYBE LESS THAN WHAT WE TRADITIONALLY GET WITH RESPECT TO TITLE $1 AS AN EXAMPLE.
SO FIRST OF ALL, UM, THE 0.4% IS ABOUT A HALF A MILLION DOLLARS, AND IT INCLUDES TWO MAIN CATEGORIES.
ONE IS IMPACT AID, WHICH I BELIEVE THE COM UH, FUNDING COMES THROUGH DOD BECAUSE IT'S MILITARY IMPACTED STUDENTS.
SO WE ARE, WE RECEIVE REIMBURSEMENT EACH YEAR FOR IMPACT AID, UH, WHICH IS THEN CALCULATED.
UH, IT IS, UH, IT IS PART OF OUR $350 MILLION OF REVENUES.
UM, AND A PORTION OF IS ALSO SHARED WITH RIVERVIEW, UH, BASED ON A PER PUPIL BASIS.
AND, UH, THE FORMULA DIVIDED BY THE TOTAL NUMBER OF DISTRICT STUDENTS TIMES THEIR NUMBER OF STUDENTS AS WELL.
UM, THE E-RATE FUNDS IS THE SECOND AREA WE, WE RECEIVE E-RATE FUNDS IN THIS FUND AS WELL.
IF IT WAS RELATED TO TELECOMMUNICATIONS, E-RATE IS A TELE IS THROUGH THE FCC, UM, I DON'T KNOW, S-C-C-F-C-C, SO I DON'T THINK THAT'S IN THE DEPARTMENT OF EDUCATION.
IT WOULD BE THE COMMUNICATIONS COMMISSION, FEDERAL COMMUNICATIONS COMMISSION.
THAT'S WHAT IT'S, UM, AND SO THOSE WOULD BE BASED ON A, A FEDERAL PROGRAM THAT IS OFFERED, UH, THROUGH THE, UM, LIBRARIES, THE FEDERAL LIBRARIES COMMISSION, AND IN THEY SUPPORT SCHOOL DISTRICTS WITH COMMUNICATIONS.
UM, IT IS NOT DEVICES, IT IS INFRASTRUCTURE TO ALLOW THE, UH, COMMUNICATION TO WORK THROUGH THE INTERNET.
SO, UM, THOSE TWO PROGRAMS ARE NOT THROUGH THE DEPARTMENT OF ED, BUT AGAIN, THEY'RE FEDERAL PROGRAMS THAT COULD BE SUBJECT TO ANY REDUCTIONS.
SECOND THING I WANNA SAY, UH, UH, UM, FEDERAL, UH, PROBABLY THE LARGEST FEDERAL FUNDING SOURCE WE HAVE IS IN THE FOOD SERVICE FUND.
THOSE FUNDS ALL COME FROM THE US DEPARTMENT OF AGRICULTURE.
UM, AND, UH, THEN TITLE, UH, TITLE ONE IS THE SECOND LARGEST TITLE.
UH, IDEA FUNDS ARE THE, UH, THIRD LARGEST.
I HAVE NOT RECEIVED ANY NOTIFICATION NOR MY STAFF OF ANY CUTS, UH, FROM FEDERAL PROGRAMS. UH, WE ALSO THOUGHT THERE WAS A, WE THOUGHT THERE WAS A HOLDUP ON A NEW GRANT, BUT IT HAS BEEN RELEASED AND AWARDED.
SO WE'RE CONTINUING TO WORK ON THAT GRANT.
UM, SO WE HAVE NO INDICATION OF ANY CURRENT CUTS.
UH, WE'RE CURRENTLY, WE'RE ACTIVELY MONITORING FEDERAL, UM, COMMUNICATIONS THAT WE RECEIVE, UH, WEBINARS THAT WERE OFFERED.
WE TAKE OPPORTUNITIES TO DO THAT.
UM, SO I AM CAUTIOUSLY OPTIMISTIC ABOUT, UH, THE FUNDING SOURCES, BUT WE ALSO HAVE A PLAN B, AND I THINK THAT WAS WHAT MR. DALLAS WAS REFERRING TO.
YOU MAY RECALL, AND THERE'S SOME NEW BOARD MEMBERS THAT DON'T KNOW, BUT LAST YEAR WE HAD AN INCREASE IN THE FUND BALANCE.
UH, WE WERE ABLE TO KEEP OUR FUND BALANCE PERCENTAGE THE SAME AT 20%, AND WE WERE ABLE TO MOVE THE EXCESS FUNDS THAT WE RECEIVED AS A RESULT OF A LITTLE UNDERSPENDING AND SOME OVER, UM, EXCESS OR FAVORABLE VARIANCE ON THE REVENUES.
[02:00:01]
A LITTLE UNDER SPINNING, AND WE MOVED $10 MILLION TO A CAPITAL PROJECTS FUND THE BOARD APPROVED, UM, IN THE EARLY FALL, I BELIEVE IT WAS, THAT IT IS TOTALLY UNCOMMITTED FUNDS, AND TO ME, THOSE WOULD BE PART OF PLAN B.SO THEY'RE UNCOMMITTED AT THIS TIME.
UH, I BELIEVE, AND I'VE TALKED TO DR. RODRIGUEZ, WE BELIEVE THEY SHOULD JUST STAY ON HOLD UNTIL THINGS STABILIZE AT THE FEDERAL LEVEL TILL WE KNOW MORE.
BUT THAT THOSE FUNDS, AND IF WE BUILD ON THOSE THIS YEAR, COULD HELP OFFSET ANY EFFECTS OF FEDERAL FUNDING CUTS IF THAT WERE TO OCCUR.
SO WE DO HAVE A SAFETY NET, UM, AND THAT IS, THAT IS IT.
AND, UM, SO WE, UH, CAN HELP OFFSET ANY, ANY MAJOR, UH, CHANGES THAT MAY OCCUR IN FEDERAL FUNDING.
UM, IN ADDITION, UM, I'LL LET YOU KNOW, UH, NANCY MESA'S OFFICE HAS HAD REACHED OUT TO INQUIRE ABOUT, UM, UH, ANY, ANY IMPACT THAT COULD BE FORESEEN AND, UH, INDICATED THEIR INTEREST IN ANY EFFORTS, UH, ON THEIR PART TO IDENTIFY, UH, OTHER FUNDING SOURCES, UH, THAT, WHETHER IT BE GRANTS OR WHATEVER IT IS THAT, UM, THAT THE DISTRICT COULD PURSUE IF THERE WERE CUTS THAT IMPACTED ANY OF THESE THINGS.
UM, MR. CROSBY, YOU JUST KIND OF GAVE US A LIST OF HOW, HOW THE, UM, OF, FROM LOT, FROM BEGINNING TO END, UH, IN TERMS OF MOST IMPORTANT TO, UH, TO A LEAST AMOUNT OF MONEY.
DO YOU HAVE A, DO YOU HAVE A PRINT OFF OF JUST A LIST OF HOW, OF, OF WHO, WHERE, WHAT, AND HOW IN TERMS OF JUST THE, UH, BUT, UH, GET, GET TO THE POINT.
SMITH, DO YOU HAVE A LIST OF YES, THANK YOU.
COULD YOU SEND THAT, UM, THE MEDIA ASKED FOR IT, UH, A WEEK OR TWO AGO, AND SO WE CAN PROVIDE YOU WITH WHAT THEY PROVIDED.
THERE ARE A LOT OF SMALL GRANTS, UH, AND SOME LARGER ONES.
WE DEAL DIRECTLY THROUGH, UM, WE HAVE TWO GRANTS CURRENTLY.
UM, BUT THOSE WEREN'T THE MOST IMPORTANT.
I WOULDN'T SAY THEY WERE THE LARGEST DOLLAR AMOUNT IS WHAT, UH, PER YEAR, ANNUALLY THAT I, THAT I WAS REFERRING TO.
AND I, AND I JUST APPRECIATE THAT BECAUSE OF THE POINT OF, EVEN AS A BOARD MEMBER, WHEN WE GO TO THE STATE HOUSE, UH, IF EVEN IF THE STATES, IF, IF THE STATE, IF THE THEY DO, UH, GIVE THE MONEY TO THE STATES, THEN WE NEED TO KNOW WHAT WE'RE ALSO, WE NEED TO BE ADVOCATING FOR ON, ON THAT, ON THAT DAY TOO.
I, I, I KNOW WE'RE GOING TO THE STATE HOUSE SOON.
SO MY, MY POINT OF GETTING THAT IS SO THAT WE CAN KNOW WHAT, WHAT WE NEED TO START FIGHTING FOR IMMEDIATELY TO, TO HELP US TO GET SOME RELIEF EVER, IF EVER DO NEEDED.
THIS IS ALL ABOUT LOCAL TAX COLLECTIONS, AND IT'S ACTUALLY CHANGED SINCE, UM, I PROVIDED THIS ON FRIDAY.
UH, SO AS I MENTIONED, UH, TWO DAYS AGO WE RECEIVED TAX COLLECTIONS.
UM, AND I SHOULD HAVE UPDATED THESE SPECIFIC AMOUNTS, BUT WE RECEIVED, WE HAD PROJECTED, UH, TO RECEIVE $2 MILLION IN THE MONTH OF FEBRUARY, AND WE ACTUALLY RECEIVED $4 MILLION.
SO, UH, SO THE CHANGES WON'T BE SIGNIFICANT.
SO YOU ADD FOUR MIL, WELL, THERE'S OTHER, YES, $4 MILLION TO, SO THIS TWO WOULD BE TWO, IT WOULD BE 2 0 5.
UM, I DON'T HAVE THE PERCENTAGE UPDATED FOR YOU TODAY, BUT, UM, WE ARE SHOWING, WHAT I WAS SHOWING HERE, HERE IS THAT WE WERE ON TARGET WITH THE PROJECTION.
NOW WE'RE SLIGHTLY ABOVE THE PROJECTION, SO WE WERE FALLING RIGHT IN LINE PRIOR TO, UH, THE NEW DATA.
AND NOW WE ARE, ARE TRENDING SLIGHTLY ABOVE ABOUT $2 MILLION.
UM, SO THAT WE'RE IN A GOOD PLACE, EVEN THOUGH THESE PERCENTAGES LOOK LOW.
UH, IN 2025, UH, WE HAD A LARGE EXCESS IN 2024 AND 2023 THAT WE WERE NOT EXPECTING.
UH, 2023 HAD A, A 14, UH, EXCUSE ME, 2024 HAD A 14% GROWTH FACTOR, WHICH I HAVE NEVER SEEN IN MY CAREER WITH THE SCHOOL DISTRICT IN THE, IN THE VALUE, IN THE ASSESSED VALUE OR THE VALUE OF THE MILL.
UM, I THINK NONE OF US COULD HAVE PREDICTED THAT.
UH, IT'S JUST A, A MATTER OF INFLATION, THE ECONOMY, NEW, NEW PROPERTIES COMING ONLINE IN THE DISTRICT.
UM, THESE WOULD BE PRIMARILY BUSINESSES AND NON-OWNER OCCUPIED RESIDENCES.
UM, SO, UH, WE AREN'T SEEING IN THE CURRENT YEAR WE'RE, WE PROJECTED A 7% GROWTH FACTOR, SO ABOUT HALF, UM,
[02:05:01]
AND WE'RE SEEING THAT TREND ABOUT 7% AND NOW JUST SLIGHTLY HIGHER.UH, WE ARE EXPECTING THAT GROWTH FACTOR TO GO DOWN AGAIN.
SO, UH, WE'RE GONNA BE IN THE THREE TO 5% RANGE OF PROJECTING NEXT YEAR, UNLESS I GATHER INFORMATION FROM THE COUNTY OTHERWISE.
SO I'VE BEEN IN CONTACT WITH THEM.
I, UH, MR. NRIC IS PREDICTING A 5% GROWTH FACTOR IN DEBT SERVICE, BUT I, I, THAT MAKES ME A LITTLE NERVOUS TO PREDICT SOMETHING, UH, AGGRESSIVE AND, AND I DON'T WANNA FALL SHORT.
SO, UM, JUST KNOW THAT WE ARE IN GOOD PLACE WITH OUR TAX REVENUES.
UM, BUT WE DO GET THE INFORMATION VERY LATE IN THE, IN THE MONTH FOLLOWING THE COLLECTION.
SO IT, UM, I ALWAYS, I WILL ALWAYS COME TO PROVIDE YOU THE LATEST AND GREATEST, BUT IT MIGHT NOT REFLECT IN THE PRESENTATION, UH, WHICH I PROVIDE ABOUT A WEEK EARLIER.
SO THE NEXT SLIDE IS ABOUT AVAILABLE MILLAGE.
NOW, MR. NERRICK TALKED ABOUT 36.3, THAT'S DEBT SERVICE.
WE ALSO HAVE ANOTHER LINE ITEM ON THE TAX BILL, AND THAT'S THE OPERATIONS SCHOOL OPS IS WHAT IT SAYS ON YOUR TAX BILL.
AND 1 21 0.8 IS THE MILLAGE RATE FOR THE SCHOOL DISTRICT'S OPERATIONS.
SO WE HAVE, UM, UH, AGAIN, I THINK IT CAME IN A LAW IN 2006 UNDER ACT 3 88.
IT REQUIRES US TO HAVE A CAP ON HOW MUCH WE CAN INCREASE MILLAGE IF WE NEED IT, UM, AND IF WE CHOOSE TO, TO MOVE FORWARD WITH IT.
AND EACH YEAR THAT COMBINATION IS OF THAT CALCULATION.
IT COMES FROM THE SOUTH CAROLINA DEPARTMENT OF REVENUE AND FISCAL AFFAIRS.
IT'S A COMBINATION OF CPI OR CONSUMER PRICE INDEX, WHICH HAS TO DO WITH INFLATION.
AND THE SECOND ITEM IS GROWTH IN POPULATION IN OUR COUNTY.
AND SO IT HAS NOTHING TO DO WITH SCHOOL ENROLLMENT.
IT, IT'S ALL ABOUT THE POPULATION GROWTH IN THE COUNTY.
AND OVER THE YEARS WE'VE ACCUMULATED, UH, AND IN THE PAST COUPLE OF YEARS, I THINK LEAST TWO YEARS, WE HAVE NOT INCREASED THIS MILLAGE RATE.
WE HAVE ACCUMULATED 20.6 MILLS, UH, OF, OF ALLOWABLE MILLAGE UNDER THE PROVISIONS OF THIS LAW.
UM, IN 25, 26, I AM PREDICTING 5.6 ADDITIONAL MILLS.
WE ALREADY HAVE ONE OF THE FACTORS, BUT NOT THE OTHER.
SO I MENTIONED CPI AND GROWTH.
WE'VE RECEIVED ONE NUMBER BUT NOT THE OTHER.
I'VE PREDICTED VERY CONSERVATIVELY BASED ON WHAT WE GOT LAST YEAR IN POPULATION GROWTH, I CAN'T REMEMBER WHICH ONE WE'VE RECEIVED POPULATION OR CPI, WE HAVEN'T GOTTEN POPULATION YET.
THAT ONE COMES LATE IN THE MONTH OF APRIL.
AND SO, UH, WE'RE ESTIMATING IT BA BASED ON THE CONSERVATIVELY 1.6% IS THAT FACTOR.
UH, AND SO WE THINK WE CAN GAIN ANOTHER 5.6% OUT OF THAT CALCULATION, WHICH WOULD MEAN A POTENTIAL FOR 26.2 MILS, UH, TOTAL.
NOW, OF COURSE, WE, I DON'T THINK WE WOULD.
UH, LET ME TELL THE NEW BOARD MEMBERS WHEN TANYA THIS, UH, COMPUTES, THE FINAL MILLAGE INCREASE.
WHAT WE'VE DONE IN THE PAST IS WE'VE PUT THAT INTO DOLLARS AND CENTS.
AND ONE OF THE THINGS WE DO IS FOR A LANDLORD WHO IS, UH, HAS A PROPERTY FOR $400,000 IS ASSESSED VALUE THAT'S GOING TO COST THAT LANDLORD THIS AMOUNT OF MONEY.
AND AS I RECALL THE, YOU KNOW, THE LAST TIME THAT WE HAD PREVIOUS TWO YEARS, WE DIDN'T RAISE MILLAGE AT ALL.
BUT BEFORE THAT, UH, WE SAID IT WAS FOR A $400,000 HOUSE, UH, THAT A LANDLORD HAD.
IT WAS ABOUT 20, $25 A MORE, UH, TAX FOR THE YEAR THAT THEY WERE GONNA, OR NO, IT WAS FOR THE MONTH.
AND SO, UM, THAT GOES OUT TO THE PUBLIC.
AND OF COURSE I GOT FEEDBACK FROM, UH, LANDLORD, YOU MEAN I'M GONNA HAVE TO RAISE RENT BY, UH, $21 A MONTH? AND I SAID, WELL, YES, IF YOU USE IT, BUT I'LL BET YOU YOU'LL RAISE IT BY $25 OR, OR $50.
SO BOTTOM LINE IS WE GIVE THE PUBLIC AN IDEA OF WHAT ANY MILLAGE RATE THAT WE, UM, PROPOSE, WHAT IT'S GOING TO COST.
AND REMEMBER, THIS DOESN'T COST, THIS DOESN'T GO TO PRIMARY HOMEOWNERS.
IT GOES TO BUSINESSES, AND IT GOES TO A MULTIFAMILY, HOMEOWNERS AND, UH, PEOPLE THAT RENT THEIR HOUSES OUT.
SO JUST TO LET YOU KNOW, WHEN WE'RE TALKING 5.6 MILLS, UH, WE'LL, WE'LL BE ABLE TO GIVE
[02:10:01]
YOU A DOLLAR AND CENTS VALUE OF THAT IS, AND ALSO JUST FOR THE GENERAL PUBLIC, BECAUSE I REMEMBER WHEN I, WHEN I FIRST ON THE BOARD, I HAD TO LEARN IT.UM, COULD ALSO, COULD, UM, COULD YOU GIVE THE PUBLIC A, UH, UH, INFORMATION AND KNOWLEDGE ON WHAT ACT 3 88 IS? BECAUSE EVERYONE, UH, DON'T HAVE THAT AROUND THE STATE.
AND THAT'S SOMETHING SOMETIMES THAT KIND OF, UH, I WON'T SAY PUT OUT, PUT IT THUMBS ON US, BUT, YOU KNOW, IT KIND OF, YOU KNOW, TELL WE NEED TO CUT IT TOO.
SO COULD YOU, IF YOU COULD JUST GIVE THEM A LITTLE BACKGROUND ON WHAT THAT, WHAT THAT IS.
I HAVE TO GIVE YOU THE BASICS 'CAUSE I'M NOT A LAWYER, BUT
THE, ONE OF THE MAIN THINGS THAT IMPACT US, THERE WERE A COUPLE, ABOUT THREE THAT I CAN THINK OF HERE, UM, IN THIS CASE.
AND THE MAIN THING, WELL, MILLAGE RATE, INCREASE CAP, THIS IS ONE, TWO, IS THE 8% LIMITATION.
I BELIEVE THAT LIMITATION WAS DEVELOPED IN THAT SAME ACT, BUT ALSO THE MAJOR IMPACT FOR US IS SCHOOL OPERATIONS TAX WAS ELIMINATED FOR PRIMARY RESIDENCES.
UH, YOUR SCHOOL OPERATIONS TAX SAYS ZERO IN THAT COLUMN FOR SCHOOL DISTRICTS.
UM, YOU HAVE STILL HAVE A DEBT SERVICE TAX IN, IN LIEU OF THAT REPLACEMENT.
UM, THE, THERE WAS A 1% SALES TAX, SO THE FIFTH CENT OF SALES TAX THAT WAS ADDED AT THE TIME, I KNOW WE'RE CURRENTLY AT 6%.
UM, BUT THE, THE SI FIFTH CENT OF SALES TAX WAS ENACTED.
THOSE FUNDS GO TO THE STATE LEVEL AND RE RECEIVE A LINE ITEM IN, IN THE GENERAL FUND OF STATE REVENUE AS A REIMBURSEMENT.
SO IT COMES, INSTEAD OF COMING THROUGH LOCAL TAX REVENUE IS COMING THROUGH STATE REVENUE.
UM, AS YOU HEARD, THE VALUE OF THE MILL IN DEBT SERVICE IS $3 MILLION PER MILL.
THE VALUE IN THE MILL IN THE OPERATIONS FUND IS TWO, ABOUT 2 MILLION.
SO WE LOSE A MILLION DOLLARS PER MILL IN THAT TRANSACTION.
UM, BUT IT'S SUPPLEMENTED BY FUNDING FROM THE STATE, BUT NOT AT THE SAME LEVEL IT WOULD HAVE IF WE HAD COLLECTED OURSELVES.
SO THAT'S THE PRIMARY EFFECTS OF IT.
BECAUSE, UM, IT, IT WAS, THAT WAS A, JUST A, A REAL BIG ISSUE.
AND JUST UNDERSTANDING THAT, THAT WE ARE, THAT BEING, BEING UNDER THE ACT, ACT 3 88, THAT THAT DOES, YOU KNOW, UH, BRINGS US SOME, SOME ISSUES THAT JUST OTHER PEOPLE AND, AND WHO'S WATCHING MAY WANNA KNOW.
ALSO, BOARD MEMBERS MAY WANT TO, UH, JUST, JUST RESEARCH AMONGST THEMSELVES IN TERMS OF MM-HMM
WHY, AS WE GO THROUGH THIS PROCESS.
AND, AND ANOTHER FINAL COMMENT ON THAT, SALES TAX IS MORE VOLATILE.
IT'S SUBJECT TO ECONOMIC CONDITIONS, INFLATION, THOSE SORTS OF THINGS.
UM, LOCAL TAX REVENUE IS MORE STEADY, UH, STABLE FOR THE DISTRICT.
SO WE ARE, WE'VE ENTERED, WE HAVE A PORTION OF OUR FUNDING, A MILLION DOLLARS PER MIL, UM, OF FUNDING THAT'S COMING THROUGH A LITTLE BIT MORE VOLATILE SOURCE.
AND WE MAY NOT HAVE A GOOD YEAR.
WE MAY HAVE A BETTER YEAR, AND, AND IT MAY VICE VERSA.
SO I WANTED TO POINT OUT, UM, I DIDN'T MENTION LOOK BACK MILLAGE.
SO NOT ONLY COULD WE USE THE 5.6, BUT WE HAVE THREE YEARS OF LOOK BACK.
SO THAT EQUATES TO THE 20.6 MILLS THERE.
BUT EACH YEAR, ONE YEAR, THE OLDEST YEAR DROPS OFF.
SO WE COLLECTED, UH, 4.7 MILS BACK THREE YEARS AGO, UH, OR FOUR YEARS AGO NOW.
AND THAT OLDEST YEAR DROPS OFF.
THAT DOESN'T TAKE FROM WHAT I HAVE UP HERE, I'VE ALREADY INCLUDED THAT.
BUT THOSE, OH YES, IT'S INCLUDED IN THE 20.6.
UM, IF THOSE ARE NOT USED, UM, THEN THOSE WILL EXPIRE THIS YEAR.
SO, UM, THERE HAVE BEEN YEARS WHERE WE HAVE LOST SOME, UM, BUT THEY ARE AVAILABLE TO THE BOARD IF NEEDED.
UH, THE SEC THE NEXT SLIDE IS, UH, JUST IS SORT OF A REPEAT OF WHAT WE, UM, SAW AT YOUR LAST, AT THE LAST PRESENTATION.
AGAIN, THESE ARE THE SPECIFIC SECTIONS IN STATE LAW THAT REFERRED TO THE MILLAGE RATE INCREASE.
UH, THAT CAPS INFLATION PLUS GROWTH, WHICH WE JUST MENTIONED.
AND THE CURRENT BUDGET BILL IS HOUSE BILL H 40 25.
UH, IF YOU'RE FOLLOWING IT, UH, IT'S THE GENERAL APPROPRIATIONS BILL FOR THE NEXT SCHOOL YEAR.
AND IN ON THE NEXT SLIDE, WE TALK ABOUT, UM, THE CONSTRAINTS OF THAT.
UH, I THINK WE'VE ALREADY HIT PRETTY MUCH ALL ON THIS.
THIS IS OUR 8%, UH, OUR MILLAGE RATE CAP.
UM, THE CALCULATION OF THE ROLLBACK MILLAGE, UH, APPLIES TO THAT, UH, THAT LAW AS WELL, WHICH WE'RE NOT ROLLBACK.
MILLAGE IS ONLY APPLIES IN A REASSESSMENT YEAR.
WE DON'T HAVE TO WORRY ABOUT THAT.
UM, THAT COMES EVERY FOUR TO FIVE YEARS.
AND THAT WAS, UH, LAST YEAR, I BELIEVE.
UM, THAT'S WHY THE INCREASE OF FOUR 14%.
[02:15:01]
SO THE HOUSE BILL 40 25 WERE INITIAL PROJECTIONS ARE RECEIVED FROM THEM.AND YOU'LL SEE THOSE JUST A MOMENT, UH, FROM THE HOUSE, UH, HOUSE APPROVAL.
AND THOSE ARE SUBJECT TO CHANGE AS THEY MOVE THROUGH THE SENATE.
SO ON THE NEXT SLIDE, THE DARK, UH, THE NAVY BLUE SECTION IS WHERE WE'RE AT.
UH, BUDGET DELIBERATIONS ARE HAPPENING IN THE MONTH OF APRIL.
SO WE'VE ALREADY BEEN, UH, THE BUDGET HAS BEEN APPROVED BY THE HOUSE WAYS AND MEANS, AND THE HOUSE OF REPRESENTATIVES, IT'S NOW AT THE SENATE FINANCE.
SO THEY'RE ABOUT HALFWAY THROUGH THEIR LEGISLATIVE SESSION.
THEY'RE HALFWAY THROUGH AND WE'VE GOTTA PRESENT A BUDGET NEXT, YOU KNOW, IN A, IN A MONTH.
SO THEY'RE A LITTLE, IF THEY WERE, IF THEY WERE ABOUT A MONTH AHEAD OF US, WE WOULD BE A LOT BETTER SHAPE.
SO WE'D HAVE BETTER PROJECTIONS FOR YOU.
UM, AND SO, UM, BUT WE ACTIVELY ARE MONITORING THE, THE BILLS AND WHAT THEY'RE, THE HOUSE, UH, THE BUDGET BILL IN PARTICULAR, AND LOOKING TO SEE WHAT THINGS ARE HAPPENING AT THE STATE LEVEL.
HIGHLIGHTS OF, UH, HOUSE WAYS AND MEANS COMMITTEE.
UM, COUPLE OF THING, THREE ITEMS, STATE AID TO CLASSROOMS THERE, THE HOUSE BILL, UM, MOVE TEACHER SALARIES UP IN THEIR BUDGET BY $1,500, UH, FROM 47,000, UH, STARTING SALARY TO 48 5.
UH, AND ALL OTHER SALES OF THE MINIMUM SALARY SCHEDULE WOULD APPLY AS WELL.
UM, THAT DOES NOT MEAN THAT WE ARE GOING TO, UH, RECOMMEND THAT.
UM, SO WE WILL, AS WE PUT THE BUDGET TOGETHER, WE KEEP THIS IN MIND.
THAT IS A MINIMUM FOR US, NOT NECESSARILY, UH, GUIDE OUR WORK TO THE EXACT NUMBER, UH, STATE MINIMUM SALARY SCHEDULE.
UM, UH, THERE ISN'T, UH, AN EFFORT TO REMOVE THE BACHELOR'S.
THERE ARE FIVE EDUCATION LEVELS AND CER CERTIFICATION LEVELS IN THE TEACHER'S SALARY SCHEDULE.
BACHELOR'S, BACHELOR'S PLUS 18 MASTER'S, MASTER'S PLUS 30, AND PHD.
THEY ARE LOOKING TO REMOVE ONE OF THE BACHELOR'S, UH, BACHELOR'S 18 CATEGORY AND COLLAPSE THAT WITH BACHELORS.
UH, DISTRICTS MAY OPT TO KEEP THIS COLUMN OF, OF LAYER OF EDUCATION AND INCREASED LEVEL ABOVE BACHELORS.
UM, BUT IT WILL BE UP TO US TO FUND IT.
SO THEY'RE FUNDING LESS AT A LOWER LEVEL FOR THAT.
UH, EDUCATION LEVEL OF TEACHER CERTIFIED TEACHERS.
UM, SCHOOL BUS DRIVERS RECOGNIZED, UM, STATE EMPLOYEE CATEGORY, THEY ARE JUST RECOMMENDING A 2% INCREASE TO THE STATE MINIMUM WIDE SALARY SCHEDULE.
UM, WE GENERALLY COME AT OR ABOVE THAT LEVEL ON OUR BUDGET RECOMMENDATIONS.
SO THAT SHOULD BE, UH, NO, NO ISSUE FOR US.
THE NEXT SLIDE IS GONNA BE A LITTLE SMALL.
THAT IS THE ACTUAL DOCUMENT THAT WE RECEIVE FROM THE HOUSE, WAYS AND MEANS BUDGET PROJECTIONS.
UM, AS YOU CAN SEE, THE FIRST COLUMN IS 77.5 MILLION.
THAT'S OUR CURRENT YEAR, CURRENT ALLOCATION OF STATE REVENUE IN VARIOUS SOURCES.
UM, THERE IS SOME, UM, EIA FUNDS IN THERE AS WELL.
UM, SO, UH, THE NEXT TO THE LAST IS AN A EIA FUND, UM, EDUCATION IMPROVEMENT ACT.
SO IT'S IN A DIFFERENT, IT'S NOT IN OUR OPERATIONS BUDGET.
SO THE TOTAL REDUCTIONS BETWEEN OPERATIONS AND EIA IS A $1.1 MILLION REDUCTION, UM, IN OUR BUDGET PROJECTIONS.
SO AS THESE, UH, FLUCTUATE, AND SOMETIMES WE DON'T KNOW EXACTLY WHAT THE NUMBER, YOU KNOW, WHAT THE RESULT OR THE REASON FOR THE NUMBER IS.
UM, BUT, UH, THESE ARE BASED ON THE 45 DAY ENROLLMENT FOR STUDENTS IN OUR DISTRICT.
UM, SO WE'RE INCORPORATING THESE NUMBERS, BUT WE'RE HOPEFUL, AND LIKE I SAID, CAUTIOUSLY OPTIMISTIC THAT THE SENATE PROJECTIONS, I'M HOPING THE SENATE WILL PUT IN SOME MORE FUNDING AND GO ABOVE THE $1,500 RATE, UH, TO A HIGHER LEVEL.
AND THAT WE'LL SEE SOME IMPROVEMENT TO THAT NUMBER WE TYPICALLY DO.
SO IT'S A WAIT AND SEE KIND OF MISSION FOR US, UH, AT THIS POINT.
SO, UM, UH, WE ALREADY TALKED ABOUT, UH, FEDERAL PROGRAMS AND OUR PLAN B, SO I'M GONNA SKIP THAT SLIDE.
UH, THESE YOU, THE NEXT FEW SLIDES YOU'VE SEEN AS WELL.
BASICALLY OUR CATEGORIES OF THESE ARE OUR CATEGORIES OF EXPENDITURES.
UM, SALARIES AND BENEFITS MAKE UP ALMOST 80% OF OUR BUDGET.
AND SO THAT IS THE KEY FOCUS, UH, THAT WE HAVE.
IT IS, UH, AND IT INCLUDES ALMOST 3000 EMPLOYEES.
WE ARE THE LARGEST EMPLOYER IN BEAUFORT COUNTY.
AND I'M NOT SURE HOW THEY QUALIFY DOD, WHETHER IT'S A FEDERAL OR A LOCAL, BUT WE ARE UP THERE IN EITHER ONE OR TWO SPOT.
UM, AND SO THAT'S A PRIMARY FOCUS OF OURS, AND
[02:20:01]
WE WANNA REMAIN COMPETITIVE AND BE ABLE TO RECRUIT TEACHERS AND, AND WELL QUALIFIED STAFF IN ORDER TO, AND BE COMPETITIVE WITH OUR NEIGHBORS WITH CHARLESTON AND OTHER NEIGHBORING DISTRICTS THAT ARE COASTAL COUNTIES AND, AND ATTRACTIVE PLACES FOR YOUNG PEOPLE TO GO.UM, SO THE DEPARTMENT OF BUDGET REQUESTS HAVE BEEN SUBMITTED.
UM, WE ARE ACTIVELY WORKING ON THOSE TO, UM, REMOVE ANY DUPLICATIONS TRIM WHERE WE CAN.
AND, UH, THE SCHOOL BUDGET REQUESTS HAVE BEEN, HAVE ARRIVED.
WE ARE LOOKING AT EVERY CONTRACT TO SEE WHAT INCREASES CONTRACTUALLY WE EXPECT FOR THE NEXT YEAR.
UH, OPERATIONAL, ONGOING OPERATIONAL COSTS, ENERGY PHONE BILL, YOU KNOW, UTILITIES, THOSE SORTS OF THINGS OF WHAT WE ARE ACTIVELY CALCULATING.
AND, AND THEN THE CHARTER SCHOOL ALLOCATION, AS WELL AS THE BEAUFORT, JASPER, ACE VOCATIONAL SCHOOL ALLOCATION AS WELL.
SO ALL OF THOSE HAVE TO BE CALCULATED AND READY TO GO, UH, WHEN WE PRESENT THE DETAILS OF THE NEXT BUDGET.
UM, SO, UH, THE NEXT SLIDE IS A PYRAMID.
INFLATION CONTINUES TO REMAIN AT THE, AT LEVELS.
WE DON'T SEE MUCH IN DECREASES IN PRICING.
UM, WE'RE GETTING A LOT OF BILLS THAT COULD BE POTENTIALLY UN UNFUNDED OR UNDERFUNDED MANDATES OF FROM THE LEGISLATURE.
UM, BUT ONE OF THE BIGGEST HEARTACHES FOR ME IS THE TIMELINE OF THE LEGISLATIVE PROCESS.
WE, AND, AND THE TIMING OF, OF RECEIVING ALL THE TAX REVENUE INFORMATION AS WELL.
UM, IT, IT MAKES IT, WE HAVE TO DO A LOT MORE PROJECTIONS THAN SEEING SOME ACTUAL NUMBERS.
SO WE DO THE BEST WE CAN AND WITH THE INFORMATION THAT WE HAVE AVAILABLE, AND WE USE HISTORY TO HELP US MAKE THOSE DECISIONS, AND A LOT OF COMMUNICATION WITH OUR PARTNERS AND OTHER GOVERNMENTS, OTHER ENTITIES, OUR FINANCIAL ADVISORS AND SO ON, WE, WE TALK TO A LOT OF DIFFERENT PEOPLE TO COME UP WITH THE NUMBERS THAT WE DO.
I THINK IN ADDITION, UH, TANYA, YOUR TEAM ALSO TALKS TO OTHER SCHOOL DISTRICT MM-HMM
UM, UH, CFOS AND, AND FINANCIAL DEPARTMENTS TO SORT OUT WHAT OTHER IDEAS ARE OUT THERE ON, ON NAVIGATING THIS MM-HMM
SO IT'S IMPORTANT FOR ALL OF YOU TO KNOW THAT IT'S NOT AN ISOLATION, IT'S THE OTHER PARTNER SHE'S TALKING ABOUT, BUT TO INCLUDE OTHER SCHOOL DISTRICTS THAT WE, THAT WE ALREADY HAVE NETWORKS WITH, UH, OVER THE YEARS.
UM, EACH OF US ON SENIOR STAFF AND DR. RODRIGUEZ AS WELL, EACH HAVE A NETWORK OF PEOPLE.
LIKE YOU HAVE THE SCHOOL BOARD ASSOCIATION AND OTHER ENTITIES THAT YOU WORK WITH.
I WORK WITH THE SCHOOL BOARD ASSOCIATION, UM, MS. WALTON AND WITH THE HUMAN RESOURCES FOLKS.
SHE SAID, WELL, I HAVE A CALL WITH SO AND SO AT THIS SCHOOL DISTRICT TODAY.
I'LL ASK HIM WHAT HE IS DOING.
SO I HAVE HIM ON SPEED DIAL AND TEXT, AND I CALL HIM, I TALKED TO DORCHESTER TOO YESTERDAY ON SOME THINGS THAT SHE'S DOING.
UM, SO WE, WE HAVE A GREAT NETWORK AND HAVE TIGHT BONDS WITH PEOPLE TO HELP EACH OTHER OUT AND FIND OUT INFORMATION AND COMPARE NOTES.
SO IT'S A, IT'S A GOOD PROCESS.
I COULDN'T DO WHAT I'M DOING, ESPECIALLY HAVING GONE THROUGH COVID AS A NEW CFOI COULD HAVE NEVER SURVIVED WITHOUT THAT SUPPORT.
AND THEY TOO, SOME OF THEM WERE NEW AS WELL, BUT, UH, YEAH, THAT WAS LIKE CRITICAL.
'CAUSE WE ALL NAVIGATED A, A, A PATH THAT NONE OF US HAD GONE DOWN BEFORE.
UH, THE NEXT SLIDE IS WE'RE JUST CONTINUING TO MONITOR LOCAL REVENUE, THE STATE REVENUE, THOSE TWO THINGS ARE IMPORTANT.
AND THE FEDERAL FUNDING, UM, CHANGES THAT COULD OCCUR THAT WOULD AFFECT US, OR THAT ARE OCCURRING THAT MIGHT AFFECT US, UM, AND HOW THAT MIGHT BE.
UH, AND WE, WE JUST HAVE TO COMPLY WITH, WE HAVE TO LOOK AT STATE MANDATES, OUR BUDGET PRIORITIES, OUR STRATEGIC PLAN, OUR ALIGNING WITH OUR DISTRICT'S INITIATIVES.
WE TRY TO PUT ALL THAT TOGETHER.
UM, I THINK ONE OF THE THINGS THAT I MIGHT HAVE MISSED HERE IS THE FUND BALANCE.
I WANNA MAKE SURE THAT OUR FUND BALANCE CONTINUES AT THE 20%, UH, RATE, UM, OF THE NEXT YEAR'S EXPENDITURES, BECAUSE OUR CREDIT RATING DEPENDS ON IT.
UH, WE NEED TO, THEY COMPARE OUR FUND BALANCE PERCENTAGE WITH PEER DISTRICTS, LIKE DISTRICTS ACROSS THE STATE, ACROSS THE NATION.
AND WHEN THAT, WHEN OUR NUMBER, OUR PERCENTAGE, NOT THE AMOUNT, BUT WHEN THE PERCENTAGE FALLS, THAT IS IT, UM, LOOKS AND REFLECTS NEGATIVELY ON US.
IT MAY NOT BE AS, AS POWERFUL OR AS STRONG AS A, UM, WEIGHTED AS STRONG AS SOME OF THE OTHER CATEGORIES, LIKE THE WEALTH OF THE DISTRICT IN TERMS OF THE ASSESSED VALUES.
UM, BUT IT IS CERTAINLY A COMPONENT OF THEIR CALCULATIONS ON, ON CALCULATING THAT, UH, CREDIT RATING.
IN THIS SLIDE, ANALYZE REVIEW EXPENDITURES.
[02:25:01]
THE CONTRACTS COMING DUE THAT ARE BEING RENEGOTIATED? UH, FOR EXAMPLE, THE MAINTENANCE CONTRACT? YES, SIR.IN FACT, UH, AS SOON AS WE PREPARED THE MAINTENANCE, UH, ANALYSIS TO DECIDE WHETHER TO CONTINUE TO BID OUT THE SERVICES, I PROVIDED THAT DOCUMENT TO THE BUDGET OFFICE.
AND, UH, THEY HAD ALREADY BUILT IN A BUDGET INCREASE, AND THEY HAD TO SLIGHTLY INCREASE IT TO MATCH MY PROPOSED INCREASE.
AND SO WE WERE PRETTY MUCH RIGHT ON THE MARK.
AND SO WE, THEY LOOKED AT AN ANALYSIS A DIFFERENT WAY.
I LOOKED AT IT MY WAY, AND WE CAME TOGETHER AND, AND TOOK A SLIGHTLY HIGHER NUMBER, WHICH WAS, BUT WE DON'T HAVE ANY BIDS IN YET.
SO WE DON'T REALLY KNOW UNTIL WE GO THROUGH THE BIDDING PROCESS YES, WHAT THAT, UH, EXPENDITURE'S GOING TO BE.
I TOOK A VE VERY, WE TOOK A, UM, STRONG APPROACH TO MAKING SURE THAT WE WOULD NOT FALL UNDER.
UM, SO IT WAS AT LEAST 35% INCREASE TO MAKE SURE THAT WE DID NOT, UH, AND THAT IS BASED ON HISTORICAL INCREASES THAT WE SAW IN THE CUSTODIAL CONTRACT.
SO WE LOOKED AT WHAT NUMBERS DID WE LOOK LIKE IN THAT CONTRACT ABOVE, ABOVE OR BEYOND, UM, WHAT WE HAD BUDGETED.
AND SO THAT WAS BASED ON PRIOR YEAR INFORMATION AND A HIGHER NUMBER THAN I WOULD LIKE
SO AGAIN, UH, THE NEXT SLIDE IS JUST, UH, BALANCING OUT THE REVENUES WITH THE TOTAL EXPENDITURES, AND WE'RE WORKING ON THOSE DETAILS.
AND THEN FINALLY, THE BUDGET ADOPTION SCHEDULE.
UM, OKAY, SO I HAD, I'M GONNA FALL ON THE SWORD HERE.
I HAD A FEW ITERATIONS OF THIS PRESENTATION, AND I HAVE TO MAKE, UH, TWO CORRECTIONS.
UM, SO THE TOP SECTION IS FINE.
WE ARE HERE TODAY AT MARCH 28TH.
UH, WE'RE GONNA PROVIDE, UH, I DON'T THINK WE'RE GONNA HAVE ANOTHER, WE'RE NOT GONNA HAVE ANOTHER UPDATE ON APRIL 1ST.
THAT'S JUST A FEW DAYS AWAY, SO, WE'LL, THAT WILL NOT BE NEEDED.
UM, AND THEN, UH, APRIL 25TH, WE WILL HAVE A, AT THE WORK SESSION, WE'LL HAVE AN INITIAL PRESENTATION OF THAT, UH, BUDGET WITH THE DETAILS, UM, MAY 6TH.
AND, UM, WE WILL, IF NEEDED AND HAVE ENOUGH INFORMATION, WE WILL HAVE A BUDGET DISCUSSION IF NEEDED AT THE BOARD, A REGULAR BOARD MEETING.
UH, THEN WE HAVE TWO BUDGET FORUMS, PUBLIC FORUMS. WE USUALLY DO ONE NORTH OF THE BROAD, ONE SOUTH OF THE BROAD IN ADDITION TO ALL THE OTHER ENGAGEMENT THAT WE ARE PERFORMING ONLINE, IN PERSON, AND SO ON.
UM, AND THEN WITH AN ANTICIPATED BOARD BUDGET CERTIFICATION ON MAY 20TH, THE CHANGES I NEED TO MAKE ARE THE FINANCE COMMITTEE UNDER COUNTY COUNCIL READINGS.
THE COUNTY FINANCE COMMITTEE IS TO BE DETERMINED.
UH, I DO NOT KNOW EXACTLY, UH, THEIR DATES HAVE, UM, CHANGED FROM THE PRIOR YEAR OF EXACTLY WHEN THAT FINANCE AND, UM, COMMITTEE, THE FINANCE GROUP MEETS.
SO I WILL BE, UM, WORKING WITH THEIR STAFF TO DETERMINE WHAT THE BEST TIME, WHAT THE BEST DATE IS FOR US TO, UH, BRING THAT FORWARD.
IT WILL DEFINITELY BE AFTER APRIL 25TH.
UM, BUT BEFORE THE FIRST READING.
FIRST READING, THAT IS THE SECOND CHANGE.
IT IS ACTUALLY MAY 27TH, BECAUSE THAT IT'S ON A TUESDAY, BECAUSE THAT IS MEMORIAL DAY.
SO FIRST RODEO COUNTY COUNCIL WILL BE THE 27TH.
SO WE'RE GONNA UPDATE ALL, ALL OF THOSE DATES.
I USED THE WRONG, I FIXED IT, AND THEN I PULLED THE WRONG VERSION IN FOR YOU TODAY.
BUT I WILL FIX THAT ON THE BOARD DOCS, UM, ITEMS FOR YOUR REFERENCE.
AND SO WITH THAT, I'LL CONCLUDE MY PRESENTATION AND TAKE ANY COMMENTS OR QUESTIONS YOU MAY HAVE QUESTIONS MR. SMITH.
UM, IN, IN, IN THESE, UH, IN THIS, UH, FIRST BO, UH, BUDGET.
LOOK, I WAS LOOKING FOR SOME, ALSO SOME MORE IN DEPTH IN, IN TERMS OF, UM, SOME, SOME NUMBERS TO LET US KNOW WHERE WE MIGHT BE AT IN, IN TERMS OF THE, THE WORK, THE WORKUP.
AND I KNOW YOU, I KNOW THAT YOU JUST SAID AT THE BEGINNING THAT IT PROBABLY WON'T BE TO WHAT SOME OF US MAY, UH, MAY WANT.
BUT, UM, I JUST THINK THAT THE, THE EARLIER WE GET THOSE NUMBERS, AND I KNOW, AND I UNDERSTAND THAT SOME OF Y'ALL, THAT Y'ALL ARE STILL WORKING THROUGH SOME OF THAT.
BUT I JUST THINK THAT THAT GIVES US A, A, A BETTER, UH, GIVES US MORE TIME TO YIELD OUR CONSTITUENTS, UH, THE COMMUNITY TO, TO KIND OF UNDERSTAND, AND ALSO ME PERSONALLY, TO, TO DIGEST AND UNDERSTAND WHERE WE, WHERE WE AT SO WE CAN HAVE THAT
[02:30:01]
DIALOGUE AND GO BACK AND FORTH IN TERMS OF UNDERSTANDING WHAT THE, WHAT THE BOARD IS.AND I UNDERSTAND THAT WE DID THE SESSION WHERE WE, WHERE WE CAME UP WITH THE, UM, PRIORITIES.
BUT I, I, I JUST THINK THAT STILL WE, UH, UH, EVEN THOUGH WE DID THAT, THAT STILL DOES NOT NEGATE THE, THE, THE FACT THAT WE, I THINK THAT WE STILL SHOULD BE MORE BE ABLE TO PINPOINT, YOU KNOW, THAT, THAT, UM, WHERE, WHERE FINANCES ARE AND IN TERMS OF, AND WHAT, WHO'S GROWING AND, AND WHAT THAT LOOKS LIKE.
WHERE, WHAT AND WHY AND HOW GONNA PUT THAT OUT THERE.
I THINK PART OF IT TOO IS A, A SIGNIFICANT PART OF IT IS YOU HAVE TO HAVE ALL THE INFORMATION TO HAVE ALL THE PIECES IN THE PUZZLE IN ORDER TO BRING FORWARD.
OTHERWISE WE BRING SOMETHING FORWARD.
WHATEVER WE BRING FORWARD CAN'T HAPPEN OR WHATEVER, WHATEVER THE SITUATION IS.
AND, AND SO, YOU KNOW, THIS, THIS REQUIRES INTERNAL WORK THAT IS ONGOING.
IT REQUIRES KNOWING ALL THE PIECES OF THE PUZZLE FINANCIALLY, RIGHT? UM, AND, AND I THINK, UM, THAT IS WHY, I MEAN, IF THIS IS, IF THIS PRESENTATION AT THIS TIME ISN'T A VALUE, UH, TO YOU IN FUTURE YEARS, WE COULD CUT THIS UPDATE OUT AND JUST GET TO THE LATTER ONE WHEN ALL THE PIECES COME IN.
'CAUSE WE DON'T CONTROL WHEN THE PIECES COME IN, RIGHT? THAT, THAT, THAT PART OF IT, UM, YOU KNOW, WE HAVE TO, IT IS OUT OF, OUT OF THEIR HANDS WHEN THEY GET ALL THE INFORMATION THAT THEY GET THAT'S COMING FROM THE OUTSIDE IN.
SO IF THE, I MEAN, IF IT'S NOT OF VALUE, WE COULD, YOU KNOW, WE COULD DO THAT, BUT NO, NO.
LET'S, LET'S NOT, UM, UM, MISUNDERSTAND WHAT I'M SAYING.
I'M, I'M, I'M JUST SAYING THAT I WAS JUST LOOKING FOR SOME, A LITTLE BIT MORE.
SO I, I I VALUE REPORTING AND, UH, THANKING YOUR STAFF FOR, FOR DOING THIS, BECAUSE I, I KNOW IT TAKES A HELL OF A LOT SOMETIMES DON'T GET TWISTED.
BUT, BUT I'M JUST SAYING JUST, AND, AND, AND I, AND I'VE, AND I'VE EXPRESSED THIS AND, AND, AND, AND, YOU KNOW, I'VE EXPRESSED THIS, YOU KNOW, I JUST, I JUST THINK THAT THE EARLIER WE COULD LOOK AT IT AND BE ABLE TO PUT, UM, APPLES WITH ORANGES AND APPLES WITH OUR APPLES WITH APPLES, WE CAN KIND OF UNDERSTAND EXACTLY WHERE WE ARE AND, AND, AND WHAT WE ARE ACTUALLY, UH, WHAT, WHAT WE'RE, WHAT WE'RE WORKING WITH VERSUS WHAT WE NOT, WHAT WE'RE NOT WORKING WITH IN TERMS OF, TO, TO THE POINT OF WHAT MRS. UH, GORDON WAS ALLUDING TO TODAY, UM, IN TERMS OF WHAT THE STATE MAY NOT BE BRINGING.
SO IN TERMS OF THAT, WHAT THAT MAY AFFECT IN TERMS OF IEPS OR IN TERMS IN TERMS OF SPREAD DEPARTMENT.
SO I KNOW ALSO THAT WE'VE INDICATED THAT WE WANT TO MAKE SOME, SOME INCREASES, BUT ALSO IF, IF, IF, IF, IF MR. PRESIDENT TRUMP IS MAKING SOME CUTS, THEN WE GONNA HAVE TO SCALE SOME THINGS BACK.
AND I THINK THE MORE TIME THAT WE HAVE TO DIGEST IT, UH, WHICH UNFORTUNATE AND WHICH, WHICH I DO, I DO UNDERSTAND THAT IT, IT PUTS YOU IN A TOUGH PLACE TOO, BECAUSE LIKE YOU SAID, THE NUMBERS, IT, IT MAY, IT MAY CHANGE OR IT, IT MAY OR MAY NOT CHANGE, BUT THAT'S JUST SOMETHING I, I'LL PUT OUT THERE AND I JUST LEAVE THAT ALONE.
BUT I DO APPRECIATE YOUR TEAM.
BY NO STRETCH OF MY IMAGINATION, AM I SAYING THAT, HEY, THAT, THAT THIS PRESENTATION ISN'T A GOOD JOB.
I APPRECIATE YOU AND I APPRECIATE THEM FOR DOING THIS.
AND THE, UH, THE, THE SECOND THING IS ALSO THAT YOU, YOU GUYS, UH, YOU AND YOUR STAFF, Y'ALL DO A, A, UM, A, I GOT IT RIGHT THERE, A SURVEY MM-HMM
UH, IN TERMS OF THE, THE, THE SURVEY AND, AND COMPILING.
I'M NOT SURE HOW HOW Y'ALL, HOW Y'ALL GO OVER THAT SURVEY, BUT I, I, I, I, UM, I THINK THAT SOME OF THATS SURVEY IF, IF, IF, IF, IF IT'S, IF IT'S NOT MINE THAT I JUST LIKE TO SEE SOME OF THE INFORMATION, SEE WHAT'S KIND OF COMPILED AND WHAT'S, YOU KNOW, I, I JUST THINK THAT IF WE COULD GET FORWARD THAT IF, IF, IF IT'S POSSIBLE OR THAT Y'ALL PERSONAL SURVEY I DO.
I RESPECT THAT AND I UNDERSTAND THAT.
BUT JUST, UH, BECAUSE SOMEONE DID MENTION THAT, THAT WE PUT OUT, I PUT A SURVEY, I SENT SOME STUFF IN THE SURVEY FOR Y'ALL TO READ.
AND, UH, YOU KNOW, SO I'M NOT SURE IF IT'S Y'ALL HOW THAT SURVEY WORK, WHAT THAT LOOKS LIKE.
BUT, BUT IF IT, IF IT COULD, 'CAUSE WE JUST GET SOME HIGHLIGHTS OF THAT AS WELL.
MISS BOATRIGHT, YOUR HAND IS UP.
AND THANK YOU FOR, UH, THE PRESENTATION, MS. CROSBY.
UH, I HAVE A COUPLE OF QUESTIONS.
ONE IS WITH THE, UH, BOARD PRIORITIES OF TEACHER RAISES, STAFF RAISES, AND BUS DRIVER RAISES, UM, WHAT I, WHAT I TAKE FROM THAT THERE'S THE CLASSIFIED AND THE CERTIFIED EMPLOYEES, AND WE'RE TALKING ABOUT, UM, RAISES FOR EVERYBODY EXCEPT FOR THOSE THAT, THAT ARE CONTRACTED EMPLOYEES.
DOES THAT SOUND CORRECT OR AM I MISSING SOME? A, A GROUP? UM, THEY WOULD BE EMPLOYEES OF THE DISTRICT.
ANYONE EMPLOYED WITH THE DISTRICT? OKAY.
SO, YOU KNOW, UM, FOLLOWING UP ON MS. GORDON AND THE CONCERNS WITH FEDERAL FUNDING AND THE STATE, YOU KNOW, WE'RE LOSING SOME MONEY THERE AND, AND THERE'S SOME UNCERTAIN CONSUMER SENTIMENT CAME DOWN.
UM, YOU KNOW, I THINK THAT WHEN WE TALKED AND, UH, I BELIEVE IT WAS OPERATIONS ABOUT THE MAINTENANCE CONTRACT, 'CAUSE I THINK I'M WELL DOCUMENTED ON THE RECORD, I'M OPPOSED TO, UH,
[02:35:01]
CONTRACTING OUT MAINTENANCE AND CUSTODIAL BECAUSE THEY DON'T HAVE ACCESS TO HEALTHCARE AND, AND PAID TIME OFF AND, YOU KNOW, THOSE SORTS OF THINGS.UH, BUT MY COLLEAGUE, UH, MR. DALLAS MADE THE POINT THAT, YOU KNOW, WE'VE GOT SOME, UM, ECONOMIC HEADWINDS WE'RE GOING INTO HERE IN THIS YEAR AND, AND A LOT OF UNCERTAINTY.
AND SO IT'S VERY IMPORTANT THAT WE SORT OF TIGHTEN OUR BELT, UM, AND MAKE SURE THAT WE'RE BEING REALLY, REALLY, UH, JUDICIAL AND RESPECTFUL OF TAXPAYER DOLLARS.
BUT WHAT QUESTION IS, IS THERE ANYBODY THAT WORKS INSIDE THE DESC THAT IS A CONTRACTED EMPLOYEE THAT WORKS IN THAT BUILDING, BESIDES THE MAINTENANCE AND THE CUSTODIANS OF THE BUILDING? IS THERE ANY, UM, FOOD SERVICE STAFF THAT, THAT IS A CONTRACTED THAT WE HAVE NOT HEARD ABOUT? MM-HMM.
UM, FOOD SERVICE IS A CONTRACTED SERVICE AS WELL.
UM, WE DO HAVE, UH, THREE DISTRICT EMPLOYEES IN FOOD SERVICE, BUT THE, UH, THE REMAINDER IS CONTRACTED AND HUIE, CBRE HERE, TURNER, TOWNSEND, HUIE, WHATEVER THE TERMINOLOGY IS,
UM, THERE ARE EMPLOYEES, UM, OF HUIE AS WELL IN THE BUILDING, SUPPORTING THE REFERENDUM AND 8% PROJECTS, UH, PROJECT MANAGEMENT.
BUT THE VAST MAJORITY OF THE PEOPLE THAT WORK IN THE DESC ARE, UM, EMPLOYED BY THE DISTRICT? I WOULD, YES, MA'AM.
THAT WOULD BE MY ASSESSMENT BASED ON THAT.
SO MY QUESTION IS, YOU KNOW, AS ARTIFICIAL INTELLIGENCE IS COMING ON, A LOT OF PEOPLE, SCHOOL DISTRICTS, UH, OTHER GOVERNMENT AGENCIES ARE SHIFTING TO MORE CONTRACT MODELS FOR SAY, UM, PAYROLL PROCESSING, IT SUPPORT, HR.
ARE THERE SOME COST SAVINGS THAT WE COULD REAP BY LOOKING AT CONTRACTING OUT SOME ADDITIONAL, UM, EMPLOYEES? HAVE WE CONSIDERED THAT WHEN WE'RE LOOKING AT OUR, I HELP ON THAT ONE.
POTENTIAL SHORTCOMINGS WITH FEDERAL FUNDING, ET CETERA.
WE CAN TAKE A LOOK AT TO SEE WHAT, WHAT SORT OF POSSIBILITIES.
I MEAN, WE DO HAVE, UM, IN ADDITION, IN ADDITION TO WHAT I THINK YOU'VE, YOU'VE ALREADY HEARD HERE, UM, THERE MAY BE SOME SPECIAL ED, UH, STAFFING, NOT NECESSARILY AT THE DIS IN THE DESC, BUT, BUT IN THE SCHOOL SITES THAT ARE CONTRACTED, UH, AS WELL, UM, BECAUSE THERE ARE VACANCIES AND THEREFORE THE NEED THAT YOU HAVE, YOU CAN CONTRACT OUT TO GET SOME OF THOSE SERVICES MET THAT WAY AS WELL.
UM, I THINK THAT FROM WHAT I'VE HEARD, A LOT OF, UM, PEOPLE ARE MOVING IN THAT DIRECTION BECAUSE EVERYTHING'S CLOUD-BASED AND REMOTE AND IT'S EASIER TO DO.
SO I THINK IT'S AN OPPORTUNITY.
UM, AND YOU HAD TALKED ABOUT LAST YEAR ABOUT POTENTIALLY, I KNOW SOME OF THE TEACHERS THAT I TALKED TO IN BOTH MY PERSONAL AND MY BOARD, UH, LIFE HAVE TALKED ABOUT CONCERNS WITH THE FACT THAT WE, UH, CONTRACTED OUT ALL THE TEACHING ASSISTANTS AND THE PARAPROFESSIONALS.
AND I KNOW WE HAD TALKED ABOUT POTENTIALLY BRINGING THAT, SOME OF THEM BACK IN WITH THIS BUDGET.
IS THAT STILL ON THE TABLE? YES.
AND HR HAS ALREADY BEEN WORKING WITH, UH, WITH THOSE, UH, EMPLOYEES, UM, THAT HAVE AN INTEREST IN DOING THAT, UM, UM, AT THIS JUNCTURE.
SO WE'LL SEE THAT THE NEXT FULLER BUDGET PRESENTATION, MR. VICE.
THE, UM, THIS IS, THIS IS A REALLY CHALLENGING TIME FOR BUDGETING.
THE UNCERTAINTY GROWS EVERY DAY.
TUESDAY NIGHT, WE WIN A MEETING WITH A CONGRESSMAN, ONE OF THE LEADERS IN IN CONGRESS, AND ALSO THE FORMER HEAD OF THE SOCIAL SECURITY ADMINISTRATION.
AND WHAT THEY POSITED IS THAT THE FEAR IS THAT WITH ALL THE EMPLOYEES THAT ARE BEING LET GO, YOU'RE LOSING SO MUCH INSTITUTIONAL KNOWLEDGE THAT THE SYSTEMS WILL NOT BE ABLE TO BE MAINTAINED BY THOSE FEW PEOPLE REMAINING.
AND THEN THE NEW PEOPLE WHO ARE COMING IN AND LOOKING AT ADDING TECHNOLOGIES THAT NO ONE ELSE KNOWS.
SO THEY, AND THIS, THIS SHOCKED ME TO NO END.
THEY SAID THAT WE SHOULD EXPECT DISRUPTION IN SOCIAL SECURITY PAYMENTS.
73 MILLION PEOPLE IN THE US ARE ON SOCIAL SECURITY, 1.3 MILLION IN SOUTH CAROLINA ARE ON SOCIAL SECURITY.
AND A LOT OF THESE PEOPLE ARE DEPENDING ON THEIR SOCIAL SECURITY CHECKS TO SUSTAIN THEIR LIFESTYLE.
SO I AGREE WITH ALL THE THINGS ABOUT CUTTING COSTS.
I KNOW THAT, UM, CFO CROSBY IDENTIFIED A SHEET, UH, THAT HAD SEVERAL PROGRAMS THAT WERE AT RISK AND A DOLLAR AMOUNT THAT WAS CONNECTED TO THAT.
I MAY BE A LITTLE BIT OFF 'CAUSE IT WAS A COUPLE OF WEEKS AGO, BUT I REMEMBER ABOUT $27 MILLION TO THIS PARTICULAR
[02:40:01]
DISTRICT THAT POTENTIALLY COULD BE AT RISK.SO THAT'S THE TYPE OF ANALYSIS THAT'S ALREADY TAKEN PLACE.
AND I WOULD JUST, YOU KNOW, LET'S, LET'S SEE IF WE CAN GET A LITTLE BIT MORE TIME TO CRYSTALLIZE.
AND WE ARE RAISING THESE ISSUES AT THE, UH, APRIL 9TH, UH, DAY AT THE CAPITOL WITH OUR LEGISLATORS.
BECAUSE REAL QUESTION IS HOW MUCH OF WHAT COMES FROM WASHINGTON IS ACTUALLY GOING TO END UP HERE IN OUR DISTRICTS.
AND THEN, AND THEN YOU GO, SUCH A GENTLEMAN.
UM, I WAS LISTENING TO WHAT MS. COSBY WAS, UH, SHARING WITH US AND MS. BOATWRIGHT, AND I AGREE.
I THINK AT THIS TIME, WHEN YOU'RE LOOKING AT UNCERTAINTIES WITH FUNDING, NOW WE ARE VERY, VERY, UH, BLESSED TO HAVE MS. COSBY AND HER TEAM WHO CONSISTENTLY WORK THOSE NUMBERS AND KEEP US A FUND, BALANCE OUR BENEFIT, BUT TO BRING ON ADDITIONAL PEOPLE, UM, AT THIS TIME, I THINK IS, IS A BIT SUSPECT IN THE FACT THAT WE MAY NOT HAVE THOSE FUNDS LATER.
WE MAY NEED THOSE FUNDS FOR SOMETHING ELSE.
UM, THESE ARE UNCERTAIN TIMES FOR PEOPLE WHO ARE BEING LOSING THEIR JOBS, UM, IN THE FEDERAL GOVERNMENT, OTHER, IN OTHER PLACES.
BUT ALSO IT'S BEEN A CHALLENGE FOR US JUST TO GET TEACHERS.
AND WE HAVE CLASSROOMS WHERE PEOPLE, WE DON'T HAVE TEACHERS IN THE CLASSROOMS. WE'VE GOT TEACHERS DOING DOUBLE, TRIPLE DUTIES TO TAKE CARE OF OUR STUDENTS.
AND SO WHEN I'M LOOKING AT HOPEFULLY GIVING THEM A LITTLE RAISE, UH, DON'T GET ME WRONG, I DON'T SAY THAT LIGHTLY, BUT, UH, SOMETHING IS BETTER THAN NOTHING WITH THE STABLE PEOPLE THAT WE HAVE HERE.
EMPLOYEES, ALL OF THEM ARE CERTIFIED AND NON-CERTIFIED.
THE OTHER THING IS, I THINK WHEN WE LOOK AT WHERE WE ARE AS A DISTRICT, WE'VE BEEN VERY FORTUNATE TO HAVE ONE OF THE RICHEST FUND BASED, UH, BALANCES OF THE 72 OR 73, UH, DISTRICTS.
WE TAKE THAT FOR GRANTED, BUT MS. COSBY LOOKS AT THIS MONEY CAUTIOUSLY ABOUT WHERE AND HOW WE CAN SPEND IT.
AND I THINK WE NEED TO PUT A, YOU KNOW, PUT A LITTLE BREAK NOW AND LOOK AT WHERE WE'RE GOING, HOW WE'RE GETTING THERE, WHAT WE NEED TO HAVE LEFT OVER JUST IN THE CASES MY MOM USED TO SAY JUST IN THE CASE.
AND SO, WHILE I'M ALL FOR HIRING PEOPLE, DON'T GET ME WRONG, AND BRINGING PEOPLE IN IF WE CAN AFFORD TO, BUT THAT PRICE, PEOPLE DON'T COME AND WORK FOR YOU FOR FREE.
AND WE HAVE TO LOOK AT WHERE WE ARE, PEOPLE, EMPLOYEES THAT WE HAVE NOW, AND WHERE THIS DISTRICT IS GOING SO THAT WE DON'T END UP ON THE NEGATIVE END OF OUR FUND BALANCE AND HAVE IT TO HOPEFULLY TRY TO, TRY TO BORROW MONEY.
I APPRECIATE THIS INFORMATION.
AND, UH, AS ALWAYS, EVEN TO OUR LISTENERS WHO ARE LISTENING, OUR, OUR COMMUNITY KNOW THAT, UH, THIS CFO, OUR FINANCE AND HER TEAM ARE DOING A TREMENDOUS JOB.
BUT I'M NOT LOOKING FOR US TO GO IN THE HOLE OR THE NEGATIVE AT THIS JUNCTURE, BECAUSE WE DON'T KNOW, WE DON'T KNOW WHERE THIS IS GOING TO LEAD US.
MAYBE THIS SUMMER WE'LL HAVE A BIT MORE INFORMATION, UH, BUT RIGHT NOW I THINK WE, WE STAY STEADY.
DR. RODRIGUEZ, YOU WANNA RESPOND? THANK YOU.
I WOULD JUST SAY, UH, I WAS GONNA SAY SOMETHING ELSE, BUT I'LL CUT THAT OUT AND I'LL JUST SAY, WE ACTUALLY HAVE THE BEST
[02:45:01]
WORK ON ALL OF THIS.I THINK WE ALL HAVE CONCERNS AND, AND THERE'S SO MUCH UNKNOWN.
UH, THIS MIGHT BE A QUESTION FOR THE TWO OF YOU.
UM, DO WE ANTICIPATE ANY UNFUNDED OR UNDERFUNDED MANDATES? ALWAYS.
WELL, EVERY YEAR DO WE KNOW HAVE AN I, IT'S, WELL, A LOT OF THAT DEPENDS ON THE LEGISLATION THAT OUR LEGISLATIVE COMMITTEE IS FOLLOWING VERY CLOSELY.
RIGHT? UM, YOU KNOW, DONE A, A PRETTY SUBSTANTIAL JOB THIS YEAR IN, IN, IN LOOKING AT THAT.
UH, AND I THINK EVERYBODY HAS A, A BIT OF A TASK COMING OUT OF THERE IN TERMS OF MONITORING CERTAIN BILLS.
SO IT'S NOT 160 SOME BILLS, UH, ON ANY ONE PERSON.
AND I THINK THAT'S, THAT'S BEEN DISTRIBUTED, UH, AND YOU KNOW, TO, TO, TO TAKE A LOOK AT.
BUT I THINK THAT, UM, UH, E EVERY YEAR THAT HAPPENS, I MEAN, I'LL GIVE YOU AN EXAMPLE.
UH, IN HERE YOU SAW FROM THAT HOUSE BUDGET $1,500 FOR RAISES THAT, THAT THEY WERE PUTTING IN THERE, RIGHT? TO, TO BE CLEAR, THE COST OF THAT IS MORE THAN $1,500.
RIGHT? SO, SO THE FULL COST OF IMPLEMENTING A $1,500 RAISE, UH, TO, TO EMPLOYEES IS, IS MORE THAN $1,500, RIGHT? YES.
EVERY, EVERY SOURCE OF FUNDS WE GET IS UNDERFUNDED, BASICALLY.
UM, HE MENTIONED THE TAX INDEX OF TAX PAYING ABILITY EARLIER.
SOME OF OUR FUNDING SOURCES ARE APPLIED TO THAT.
UH, AND BUFORT IS ONE OF THE WEALTHIER DISTRICTS.
I THINK CHARLESTON IS INDICATED AS THE WEALTHIEST IN TERMS OF ASSESSED VALUE.
UM, AND SO IF IT'S APPLIED TO THAT FORMULA, THEN BUFORT IS ON THE LOSING END OF THAT, UH, THAT REVENUE SOURCE.
UM, SO WE'RE HOPEFUL THAT ANY NEW OR ANY, ANY NEW APPLICATIONS OF THAT, UH, METHODOLOGY WOULD NOT BE OCCURRING.
UM, BUT YES, WE ARE CONTINUE TO BE, UH, MONITORING.
WE GET, UH, FROM THE STATE DEPARTMENT OF ED REQUESTS TO GIVE FISCAL IMPACTS OF BILLS THAT THEY BELIEVE COULD HAVE AN IMPACT ON A SCHOOL DISTRICT.
AND WE PROVIDE THEM, UM, MS. PHILLIPS, ALMOST SINGLE-HANDEDLY WITH THE HELP AND SUPPORT OF A LOT OF OTHER PEOPLE IN THE DISTRICT PROVIDE INFORMATION BACK TO THE STATE, AND THEY COMPILE IT IN A JOT FORM.
SO THEY HAVE BY BILL, UH, AND THE IMPACT OF ANY SCHOOL DISTRICT THAT'S WILLING AND ABLE TO ANSWER THE QUESTION.
AND WE TRY TO RELIGIOUSLY ANSWER THAT QUESTION.
UM, ONE OTHER SHORT ONE, AN EXAMPLE OF AN UNPREDICTABLE REVENUE, AH, INTEREST INCOME
MORE THAN WE ANTICIPATE, OR IS THAT SOME OTHER SOURCE? OR HAS IT HAPPENED BEFORE? YOU MIGHT HAVE, UH, UNPREDICTABLE REVENUE LOSS.
LIKE WE HAVE GRANTS, RIGHT? SOME FEDERAL, FEDERAL GRANTS AS AN EXAMPLE, RIGHT? OKAY.
IF ANY OF THOSE GRANTS, RIGHT.
UM, THAT WOULD BE A LOSS TO, TO, TO SOME REVENUE TO OPERATE CERTAIN PROGRAMS, RIGHT? MM-HMM
SO YEAH, I WAS THINKING YOU'RE TALKING ABOUT GROWTH MONEY, MONEY THAT MIGHT COME FROM AN UNEXPECTED PLACE.
WE TYPICALLY DON'T GET NEW MONEY FROM AN UNEXPECTED PLACE.
UH, WE USUALLY APPLY, HAVE TO APPLY FOR IT, UM, UNLESS IT'S VERY SMALL, YOU KNOW, WE, WE GET, WE GET SMALL AMOUNTS FOR LIKE, PARKER GIVING US 75,000.
UM, IF THE BOARD CHOOSES TO PLACE IT IN THE OPERATING FUNDS OR IS A ONE TIME SOURCE TO USE FOR ANOTHER PURPOSE, THAT COULD BE A A A REVENUE SOURCE.
THERE'S ALSO A JOCKEY BETWEEN FOUR AND 6%.
SO, UH, IF YOU'RE AT 4% AND YOU KNOW, OR WHATEVER, 6%, THAT'S, UH, THAT GOES BACK AND FORTH, PEOPLE CAN APPLY.
WELL, I, I'M SUPPOSED TO BE AND I'M NOT, AND THIS AND THAT.
SO THAT, THAT, THAT IS CONSTANTLY FLUCTUATING.
AND WE HAVE ONE MORE QUESTION BEFORE WE GO OR TAKE A BREAK.
I GOT A BREATH OF FRESH AIR AND A GOOD LITTLE BIT OF GOOD NEWS TOO.
I, I'LL, I'LL JUST SAY THAT, UM, ON THE PART OF THIS IS, UM, PART OF MY COLLEAGUE WAS ABOUT RIGHT IN TERMS OF THE BRINGING THE STAFF IN-HOUSE AND FOR THOSE BENEFITS, I DO AGREE WITH THAT.
BUT, UH, ON THE FLIP SIDE OF, UH, OF SOMETHING ELSE, I JUST WANNA SAY, AND I REMEMBER IN OH EIGHT, I DO THINK THAT WE KNOW WE ARE HAVING A TEACHER SHORTAGE PROBLEM.
[02:50:01]
WHEN THESE PEOPLE WHO HAVE THESE TEACHING DEGREES, I REMEMBER IN OH EIGHT, THEY CAME AND, AND, AND THEY CAME TO THE DISTRICT AND THEY CAME AND APPLIED FOR JOBS.I BELIEVE THAT WE'RE GONNA, IN A MINUTE, WE'RE GONNA SEE A REOCCURRING OF THAT.
WE'RE GONNA SEE PEOPLE WHO'VE BEEN FIRED OR WHO'VE BEEN LET GO FROM THESE POSITIONS.
GOD BLESS THEIR SOULS, UNFORTUNATELY, THAT THEY'RE GOING TO, THEY'RE GONNA BEGIN TO COME, COME TO JESUS AND SAID, YOU KNOW WHAT? LEMME GO BACK INTO CLASS AND TEACH, AND, AND THEN WE'LL BE ABLE TO APPRECIATE THAT PART.
BUT I BELIEVE THAT THERE, THERE WILL BE SOME HELP, SOME HELP COMING TO THE CALVARY.
JUST WANNA PUT THAT OUT THERE.
UH, YOU KNOW, MR. SMITH, THAT'S AN EXCELLENT POINT THAT, THAT YOU BRING UP BECAUSE A LOT OF 'EM COME WITH, UH, SOME TREMENDOUS EXPERTISE IN SPECIFIC CONTENT AREAS.
THE ONE THING, UH, DIFFERENT STATES ARE POSITIONED DIFFERENTLY, UH, UH, TO BENEFIT FROM THAT.
AND, AND ONE EXAMPLE IS THAT IN FLORIDA, I WAS ABLE TO HAVE UNCERTIFIED STAFF.
SO THESE PEOPLE MAY NOT BE TEACHER CERTIFIED, RIGHT? THEY MIGHT BE, UH, THEY, THEY MAY HAVE A, A BIOLOGY DEGREE OR A, OR A MATH DEGREE, RIGHT? BUT NOT A TEACHING DEGREE.
AND THEY MAY OR MAY NOT BE CERTIFIED TO TEACH IN FLORIDA.
I COULD TAKE ON, UH, SOME OF THOSE TEACHERS AND HELPED THEM WORK TOWARDS CERTIFICATION.
AND I HAD A SET NUMBER OF YEARS, UH, TO, TO ACCOMPLISH THAT.
AND I CAN TELL YOU, I GOT A, A DOCTOR FROM CUBA WHO COULDN'T PRACTICE MEDICINE HERE IN THE UNITED STATES, BUT DECIDED SHE WANTED TO TEACH.
SHE HAD A TREMENDOUS CONTENT KNOWLEDGE EVENTUALLY.
AND I WAS ABLE TO HIRE HER AND, AND PUT HER IN PLAY TEACHING, RIGHT? AND, AND HELP HER EARN HER TEACHING DEGREE, RIGHT? AND, AND, AND EVENTUALLY, YOU KNOW, CONTINUE HER PROFESSION IN EDUCATION BECAUSE OF THAT.
CHARTER SCHOOLS, I'M POINTING THIS WAY 'CAUSE DEVONTE'S SITTING RIGHT HERE.
RIVERVIEW IS AN EXAMPLE WHEN OTHER CHARTER SCHOOLS ACROSS THE STATE HAVE THE BENEFIT OF, IS IT 10%, 20%, ABOUT 10, ABOUT 10% OF STAFF THAT THEY CAN HIRE THAT ARE UNCERTIFIED.
NOW THERE ARE SOME NEW INITIATIVES WITHIN THE STATE LOOKING AT THIS AND, AND, AND PRO POTENTIALLY PROVIDING SOME POSSIBILITIES AROUND THAT.
AND, AND, AND IF, IF IT'S THERE, WE HAVE OUR OWN PROGRAMS WHERE WE HELP PEOPLE WITHIN THE DISTRICT TRY TO GET, UH, CERTIFIED WHO MIGHT BE AN ASSISTANT WANTING TO BE A TEACHER AND DIFFERENT THINGS LIKE THAT.
BUT IF, BUT IF THAT'S AVAILABLE, THAT, THAT, YOU'RE RIGHT.
THAT DOES OPEN UP A LITTLE BIT OF A, OF A POOL.
UH, AND IT'S JUST A QUESTION OF HOW DIFFERENT STATES PERMIT YOUR TRADITIONAL PUBLIC SCHOOLS TO TAKE ADVANTAGE OF THAT.
ONE, UH, SINCE WE'RE GOING TO THE CAPITOL, MAYBE LEG PROMOTING THE IDEA THAT, UH, WE BE ALLOWED DURING THIS VERY PERILOUS TIME TO HAVE THE 10% SO THAT WE ARE PUTTING IT RIGHT THERE, UH, REALLY THIS IS A REALLY CHALLENGING TIME.
SO LEMME GO BACK TO 2008 WHEN THE FINANCIAL MARKETS CRATERED CRUDE WAS ABOVE, IT WAS LIKE $110 A BARREL, AND IT DROPPED TO AROUND 75, AND THE BUDGET HAD COME IN TO ME.
AND KNOWING THAT YOU'VE LOST ALMOST 30% OF YOUR INCOME FROM THE CRUDE SIDE, WE CREATED A PROGRAM CALLED 50 AND 50, AND WE CHALLENGED THE ORGANIZATION TO CUT $50 MILLION IN 30 DAYS.
NOW, I THOUGHT I'D BE RUN OUT OF AFRICA, BUT THEY DID IT.
AND WE ACTUALLY REMAIN PROFITABLE.
NOW, I'M NOT SAYING WE NEED TO CUT PEOPLE, BUT MAYBE JUST HAVING AN EXERCISE OF SAYING, HOW DO WE CUT 15% OF OUR OP-ED EXPENSE BUDGET? AND THEN WE HAVE BUILT IN A LITTLE INSURANCE AGAINST ANY REVENUE DECLINE AS WELL.
BUT WE CAME OUT, WELL, WE WERE ABLE TO, IT, THE PROGRAM WAS ACTUALLY ADOPTED BY MOTHER CHEVRON.
SO THAT WAS ONE OF THOSE WINS FOR US.
BUT JUST MAYBE THAT EXERCISE OF HAVING EVERYBODY LOOK AND SAY, HOW CAN WE CUT, YOU KNOW, TO SAVE THE, ALL THE GREAT THINGS THAT ARE GOING ON.
AND THEN IF THERE'S UPSIDE, THAT'S ALL GREAT.
YOU DON'T HAVE TO DO ALL THOSE THINGS.
MS. CROSBY, DO YOU HAVE ANYTHING FURTHER? NO, SIR.
UH, WE, OUR LUNCH IS HERE AND, UH, LET'S TAKE 30 MINUTES.
THAT'D BE COMING BACK, UH, BACK IN ORDER ON, UH, 20 MINUTES, UH, TO ONE.
SO WE ARE NOW RECESSED RECORDING STOPPED.
WE'RE GONNA RECORDING IN PROGRESS,
[02:55:01]
OPEN UP THE, UH, AGENDA.AND, UH, UH, NEXT ITEM ON THE AGENDA IS TEXTBOOK ADOPTION.
CHAIRMAN GEIER AND BOARD MEMBERS THIS AFTERNOON.
OUR INSTRUCTIONAL SERVICES DIVISION HAS A FEW PRESENTATIONS.
WE WILL START WITH THE ADOPTION OF THE MATH TEXTBOOKS.
YOU SHOULD HAVE IN YOUR POSSESSION, THE EXECUTIVE SUMMARY.
AND TO NOTE THAT THIS PASS ON MARCH 25TH, A FULL PRESENTATION OF THE TEXTBOOK PROCESS ALIGNMENT TO THE STATE REGULATION AND THE WORK THAT DR.
MONA LISA DIXON AND HER TEAM CONDUCTED FROM ELEMENTARY, MIDDLE, AND HIGH SCHOOL, WAS PRESENTED AT THE ACADEMIC COMMITTEE.
WHAT YOU HAVE FOR YOURSELF RIGHT NOW IS THE TEXTBOOK SUMMARY, EXECUTIVE SUMMARY AT THE ACADEMIC COMMITTEE.
IT WAS A FULL SUPPORT BY THE COMMITTEE TO BRING THE VOTE TO THE BOARD.
WHAT YOU HAVE IN FRONT OF YOU RIGHT NOW BY MS. JENKINS IS THE MOTION, AND I WILL PAUSE AND BRING DR. DIXON UP AS WELL IN THE EVENT, SHOULD YOU HAVE ANY QUESTIONS, IF YOU WOULD LIKE TO BRING FORWARD BOARD MEMBERS.
I MOVE THAT THE BEAUFORT COUNTY SCHOOL DISTRICT BOARD OF EDUCATION APPROVED THE FOLLOWING TEXTBOOK, ADOPTIONS, GRADES K THROUGH FIVE, CURRICULUM ASSOCIATES, GRADES SIX THROUGH EIGHT, MCGRAW HILL.
SEVEN SAVAS COURSES, ALGEBRA ONE, ALGEBRA TWO, GEOMETRY REASONING IN MATHEMATICS, APPLICATION AND MODELING, STATISTICAL MODELING CALCULUS, THEN BRADFORD FREEMAN, WIRTH COURSES, AP STATISTICS, AP CALCULUS, NATIONAL GEOGRAPHIC, AND OOD COURSES, PRE-CALCULUS.
UH, DO WE HAVE QUESTIONS? MR. MR. SMITH? UH, IN, IN QUESTIONING OF THESE, UH, BOOKS, HOW MANY OF THESE BOOKS ARE HARDBACK? WELL, I WOULD SAY THEY ALL HAVE THE POTENTIAL TO BE HARDBACK, BUT THEY ALSO HAVE THE, UM, ACCESS TO BE DIGITAL AS WELL.
AND THE REASON WHY I'M MENTIONING THIS IS BECAUSE I'VE BEEN HAVING SOME CONVERSATION, UH, WITH, UH, TEACHERS, FORMER TEACHERS AND CONSTITUENTS, UH, ABOUT, YOU KNOW, UM, IN, IN, IN, IN TERMS OF US MOVING FORWARD, UH, UH, BEING A, UM, INNOVATIVE, UH, ONE OF THE NUMBER ONE DI DISTRICTS IN TERMS OF MOVING TO TECHNOLOGY.
THERE'S BEEN A LARGE CONCERN THAT, UH, IN, IN TERMS, IN TERMS OF, UH, GOING, GOING BACK A LITTLE OLD SCHOOL IN, IN TERMS OF THE HARDBACK BOOKS.
AND THAT'S WHY I WAS JUST WONDERING IN TERMS OF SEEING THESE, SEEING THESE ALGEBRA, REMEMBER ME BEING IN SCHOOL, HAVING, HAVING AN ALGEBRA ONE, ALGEBRA TWO BOOK.
AND SO, UM, AND, AND THE REASONING FOR HAVING THE HARDBACKS IS TO WHEN A STUDENT SOMETIMES COULD BE ON THEIR, ON, ON, ON THESE DEVICES, THEY GET SOMETHING FROM ANOTHER STUDENT OR SOMETHING, AND THEY, AND THEY, THEY COULD SEE WHAT THE STUDENT'S DOING AND THEY BASICALLY BEING TREATED TO THAT MESSAGE VERSUS BEING ON WHAT THEY'RE SUPPOSED TO BE ON.
AND THAT'S JUST, JUST, JUST, JUST WONDERING IN TERMS OF THE DISTRICT, HOW, HOW, HOW MUCH ARE WE ACTUALLY HARD BACKING HOW, UH, OR YOU COULD SEE OLD SCHOOL VERSUS BEING IN THE NEW, THE NEW SCHOOL.
JUST KIND OF JUST WONDERING THAT MOVING FORWARD.
YEAH, I'M GOOD WITH THAT SLIDE.
SO THE OPTION FOR HARDCOVER VERSUS AN ELECTRONIC VERSION, I HAVE TO PUT FORWARD THAT SOME STUDENTS ALWAYS PER THEIR IEP, IT IS A REQUIREMENT THAT THE STUDENT ALSO HAS A HARDCOVER.
SO WE DO HAVE VERSATILITY AVAILABLE WITHIN THE CLASSROOM.
NUMBER TWO, I WANT US TO RECOGNIZE AS A BOARD THAT OUR SCHOOLS HAVE, I BELIEVE IT'S CALLED DRAGONFLY.
THE TEACHERS HAVE THE OPPORTUNITY TO MONITOR THE UTILIZATION ON SOFTWARE OF WHAT'S GONE IN THEIR CLASSROOM.
I THINK THAT'S VERY IMPORTANT.
THE THIRD ITEM TO BRING FORWARD BOARD MEMBERS IS RECOGNIZING WE TRY TO PUSH FORWARD THAT WE GONNA HAVE CLASSROOM SETS AS WELL, BECAUSE SOMETIMES THINGS MAY NOT BE WORKING ELECTRONICALLY.
SO I ENJOY VERY MUCH HOW MR. SMITH IS BRINGING FORWARD WHAT'S CALLED OLD SCHOOL, BUT SOMETIMES WHAT WAS IN THE PAST COMES BACK AGAIN.
AND, UM, THERE IS THAT BALANCE THAT WE TRY TO LEAVE, BUT, BUT IF IT'S A ONE-TO-ONE, IT IS A ONE-TO-ONE OF THAT BOOK TO THE STUDENT, EITHER HARD COPY
[03:00:01]
OR ELECTRONIC RECOMMENDATIONS THAT WE ALSO GET A CLASS SET AS A BACKUP IN ORDER WHEN EMERGENCIES HAPPEN OR WHEN WE DO WANNA HAVE A DIFFERENT TYPE OF MODELS IN THE CLASSROOM AS WELL AS LIMIT THE AMOUNT OF TIME OF OUR STUDENTS BEING DEPENDENT UPON THEIR DEVICE.THE BEAUTY OF THE ELECTRONIC IS THAT I, THE STUDENT JUST TAKES THEIR DEVICE HOME.
THEY'RE NOT TAKING THE DEVICE AND A TEXTBOOK.
SO THERE'S OTHER MEDICAL COMPONENTS THAT FALL ON THAT WITH THE WEIGHT OF A BACKPACK.
RIGHT? THAT'S ONE BIG REASON AS WELL, THAT THE SYSTEM HAS GONE TO A ONE, TOBI, ONE-TO-ONE DEVICE AS WELL.
IT LIGHTENS THE LOAD ONTO OUR CHILDREN, ONTO THE AMOUNT OF TEXTBOOKS THAT THEY TAKE HOME TO EXECUTE THEIR HOMEWORK.
AND I DO UNDERSTAND MY GRANDMA, MY GRANDMA WOULD SAY, WHAT? DON'T KILL YOU TO MAKE YOU STRONGER.
SO THEY GET A LITTLE STRONGER WITH THAN BACKPACKS.
BUT, UM, I DO UNDERSTAND WHAT WHAT YOU'RE SAYING, BUT I JUST, MY, MY POINT OF JUST BRINGING IT OUT, JUST BECAUSE I WAS KIND OF, I WAS SOMEWHERE AND SOME RETIRED TEACHERS KIND OF JUST SWARMED AROUND ME.
THEN I WENT TO ONE OF THE FAIRS AND, AND THIS WAS, WAS EVEN BOUGHT.
IN FACT, I WAS GIVEN A BOOK TO EVEN TO READ ON IT BY ASSIGNMENT, BY SOME, UH, RETIREES, UM, UH, IN TERMS OF THEIR GRANDKIDS.
BUT, UM, UH, UH, SO, UH, I JUST WANTED TO PUT THAT, PUT THAT OUT THERE AND JUST GIVE YOU THAT VISION THAT WAS GIVEN TO ME AND JUST, JUST, JUST SO THAT WE, YOU KNOW, WE ARE IN, WE'RE IN SYNC WITH IT.
SO Y'ALL CAN'T SAY I I DIDN'T TELL Y'ALL ABOUT IT.
SO IF THEY ASK YOU, YOU KNOW, YEAH.
HE MENTIONED IT AND APPRECIATE Y'ALL.
OTHER QUESTIONS IS THIS, I WENT TO THE ACADEMIC COMMITTEE MEETING AND DOES THIS SOFTWARE INCLUDE THE MAGIC PEN THAT YOU HAD A VIDEO
DIXON'S ON KATE
IT'S DIFFERENT FROM THIS TEXTBOOK.
IT, IT, IT IS THAT, THAT IS ARTIFICIAL INTELLIGENCE THAT WE ARE PILOTING.
UM, THERE WITH, UM, DR. CARR AND I HAD A VERY GOOD CONVERSATION ABOUT, UM, HAVING IT UTILIZED IN THE HIGH SCHOOLS, ESPECIALLY WITHIN OUR ACCOUNTABILITY AREA AS ALGEBRA ONE.
STRATOS IS WANTING, UM, AT A ANOTHER BOARD MEETING FOR US TO BRING THE PENS SO THAT YOU CAN SEE THE PENS AS A FULL BOARD.
AND, UM, LET'S SEE HOW YOU GUYS CAN DO SOME MATH.
ANY
ALL THOSE IN FAVOR HERE IN THE BOARDROOM SIGNIFY BY SAYING AYE.
AND MS. BOATWRIGHT, I THINK WE'VE LOST MS. BOATWRIGHT.
BOARD MEMBERS AND THANK YOU CHAIR.
NEXT ITEM ON THE AGENDA IS THE MARCH 5TH, 2025 WEATHER MAKEUP DAY.
AND WHO WILL GIVE THAT YOU WANT? DR.
YEAH, WE YOU GOT A, I THINK A TRIPLE DOSE OF, OF DR.
INSTRUCTIONAL ACADEMICS, PERSONNEL, AND NUMBER TWO.
SO BOARD MEMBERS WITH THIS, WHICH YOU SHOULD HAVE, UM, IS ACTUALLY A MOTION AND A COPY OF THE CALENDAR AS WELL.
UM, THE MOTION, THESE ARE YOUR CHOICES.
WE KNOW THAT ON MARCH 5TH WE HAD A WEATHER DAY.
WE ALSO RECOGNIZE THAT WE HAVE NO MORE MAKEUP DAYS.
WHAT ELEARNING THAT I COULD USE ON THE CALENDAR.
SO WE HAVE THE OPTION TO LOOK AT MAY 30TH IF WE CAN PULL UP THE CALENDAR IF POSSIBLE.
THAT WHAT YOU SEE GOING BY YOU RIGHT NOW IS ACTUALLY THE STATE MEMORANDUM.
UH, YOU SHOULD HAVE A COPY OF IT.
AND IF WE CAN PAUSE RIGHT HERE.
AND OH, JUST A LITTLE FURTHER DOWN.
I DID CUT THE MONTH OF MAY SHORT.
ON THIS TO MAKE UP MARCH 5TH, YOU AS BOARD MEMBERS HAVE THAT OPPORTUNITY BY WHICH TO HAVE THAT WE USE A MAKEUP DAY OF MAY 30TH, OR YOU MAY WAIVE MARCH 5TH.
SO YOUR MOTION THAT'S PRESENTED TO YOU GIVES YOU THAT OPTION OF WHICH WAY YOU WOULD LIKE TO GO AS BOARD MEMBERS.
AGAIN, YOU HAVE THE OPTION, IT WOULD BE YOUR SECOND.
YOU HAVE THREE DAYS THAT YOU AS BOARD MEMBERS MAY WAIVE.
[03:05:01]
TO BE ABLE TO WAIVE THAT, OR WE WILL USE MAY 30TH AS A MAKEUP DAY.UM, SCOTT WORD YESTERDAY, UM, FOR INFORMATION ONLY, BUT WHO'S NOT HERE ANYMORE, I'LL POINT OVER THERE.
BUT, UH, RIVERVIEW, UM, THEIR BOARD VOTED I THINK YESTERDAY OR THE DAY BEFORE, AND THEY WAIVED THAT DAY.
SO MS. JENKINS, IS IT POSSIBLE TO PULL THE MOTION SHEET BACK UP SO THAT OUR BOARD MEMBERS MAY BE ABLE TO SEE THEIR OPTIONS? MA'AM, THANK YOU.
SO WHAT YOU HAVE IN FRONT OF YOU ARE YOUR TWO CHOICES OF WHICH WAY YOU WOULD LIKE TO GO AS BOARD MEMBERS.
OKAY? SO LET'S HAVE A DISCUSSION BEFORE WE DECIDE.
WHICH, WHICH MOTION, UH, WE WILL, WE WILL BRING UP.
SO, UH, ANY COMMENTS ON MOTION? NUMBER ONE, HEARING NONE.
ANY COMMENTS ON MOTION? NUMBER TWO, MISS MS. GORDON? I'M SORRY, UH, CHAIR, MR. CHAIR.
I HAD IT IN FRONT OF ME, BUT I DID READ IT.
UM, RESCIND THAT DATE, MEANING THAT WE WERE NOT COUNTED.
I REMEMBER SITTING AT HOME AND I REMEMBER THE WEATHER ANNOUNCEMENT OF POSSIBLE HEAVY GUSTY WINDS UP TO 70 MILES AN HOUR.
AND SO THE DECISION WAS MADE BASED ON THAT.
UH, I SPOKE WITH A FRIEND OF MINE, THEY WERE LIKE, WHY ARE THEY CANCELING SCHOOLS WITH ME? I SAID, IT'S FOR THE SAFETY.
THE SAFETY OF OUR KIDS, OF OUR EMPLOYEES.
IF YOU CAN IMAGINE A BUS DRIVER ENDING UP AT 4 30, 5 30, PICK UP THESE CHILDREN, THEY'RE NOT THE BEST AT TIMES WITH THEIR BEHAVIORS.
SO YOU'RE DEALING WITH DUSTY WINDS, CHILDREN WHO ARE KNOWN AND A DRIVER IS TRYING TO SAFELY GET THEM TO A BUILDING SITE FOR THEIR EDUCATION.
I WOULD RATHER THEY STAY HOME ERA OF CAUTION, THE FACT THAT WE CARE FOR THE NUMBER ONE PRECIOUS CARGO THAT THEIR PARENTS ARE SENDING TO US.
AND I THOUGHT THAT THAT WAS A GOOD MOVE.
SO I VOTE THAT WE, UM, RESCIND SEND, UH, A MAKE DAY.
I, I'D LIKE TO MAKE A COMMENT.
UM, I AGREE WITH, UH, I AGREE WITH YOU ON MOTION TWO, BUT FOR A DIFFERENT REASON.
I REALIZE THAT HAVING A MAKEUP DAY ON MAY 30TH, HMM, IT IS NOT, IT IS NOT GOING TO BE A VERY PRODUCTIVE DAY.
UH, THERE'LL BE LOTS OF MOVIES WATCHED, PERHAPS, BUT THAT'S AFTER GRADING IS DONE, AND THAT'S THE LAST DAY OF CLASS.
UH, IT IT'S, IT'S REALLY NOT WORTHWHILE.
SO I I I WOULD RATHER, UH, JUST GO WITH, UH, MOTION NUMBER TWO.
UH, BUT ANY OTHER COMMENTS? DR. RODRIGUEZ? I THINK THAT THE OTHER THING I WOULD JUST ADD IS THOSE, I'M, UH, THOSE AREN'T DECISIONS THAT ARE MADE LIGHTLY.
I MEAN, MY TEAM CAN TELL YOU THAT WHENEVER WE'RE DEALING WITH THIS ONE, I SIT ON EMERGENCY MANAGEMENT, UH, FOR THE, FOR THE COUNTY.
UH, NUMBER TWO, UH, WE GET BRIEFINGS DIRECTLY FROM, UM, UH, THE NATIONAL WEATHER SERVICE.
UM, AND, AND WE HAVE TO DEAL WITH WITHIN THE DATA THAT WE HAVE AND THAT'S BEING PRESENTED AT THAT TIME, ONE OF THE OPTIONS WE CONSIDER AND WE LOOK AT, OKAY, WELL LET'S MOVE THE START TIME.
WE CAN MOVE THE START TIME LATER AND LET THOSE, LET THOSE STORMS GO BY.
RIGHT? UM, BUT WITHIN THE WINDOWS OF WHEN THIS, THIS FELL, THAT THAT START TIME DELAY DIDN'T IMPACT THE, THE, THE DECISION.
IT COULDN'T 'CAUSE IT WOULDN'T HAVE MADE A DIFFERENCE.
SO, SO, YOU KNOW, FOR EVERYBODY TO UNDERSTAND, WE HAVE SPECIFIC THRESHOLDS TO RUN OUR BUSES THAT COME, COME FROM THE STATE.
AND THAT'S FOR SAFETY REASONS, WHICH IS ENHANCED WHEN YOU PUT THOSE, THOSE BUSES ON BRIDGES.
AND WE HAVE A LOT OF BRIDGES IN, IN BEAUFORT COUNTY.
[03:10:01]
PERSPECTIVE.UM, BUT MY TEAM WILL TELL YOU, I, I STRUGGLE WITH IT, YOU KNOW, 'CAUSE I HATE TO DO IT.
I HATE TO DO IT, BUT SAFETY ALWAYS WINS OUT.
SO UNLESS I HEAR OBJECTION, WE'LL, WE'LL HAVE A MOTION FOR NUMBER TWO.
I MOVE THAT, I MOVE THAT THE BEAUFORT COUNTY BOARD OF EDUCATION APPROVED THE 2024 SLASH 2025 CALENDAR MODIFICATE, OOPS, WRONG ONE.
NUMBER TWO, I MOVED AT THE BEAUFORT COUNTY BOARD OF EDUCATION AS PER SOUTH CAROLINA CODE 1 9 7 6 AS AMENDED SECTION FIVE NINE DASH ONE DASH 4 2 5.
WAVES HAVING A MAKEUP DAY FOR THE MISS ACADEMIC DAY, MARCH 5TH, 2025 DUE TO INCRE INCLEMENT WEATHER.
ANY FURTHER DISCUSSION? MR. SMITH IS, IS THIS THE LAST DAY THAT WE CAN WAIVE? NO, NO, NO.
WE'RE, ARE WE, ARE WE AT TWO MORE? OKAY.
NOW I JUST, I JUST, I JUST WANTED, I WANTED TO GET UNDERSTANDING AND MAKE SURE THAT ONE MORE OKAY.
JUST TO, I WASN'T ON THE MICROPHONE.
AND I REMEMBER TELLING MY CO MY CO-PART WHEN WE WAS AT THE LIBRARY AT THE LAST MEETING, HOPEFULLY WE DON'T HAVE TO DO THIS AGAIN, AND, YEAH.
UH, ALL THOSE IN FAVOR IN THE BOARDROOM, UH, SIGNIFY BY SAYING AYE.
UH, ONLINE, UM, PASTOR GORDON, GO.
I DON'T SEE MS. BOATWRIGHT, SO IT LOOKS LIKE IT PASSED.
NEXT ITEM IS SUMMER SCHOOL UPDATE.
CHAIRMAN GUYER, THANK YOU ONCE AGAIN AND BOARD MEMBERS.
WITH THAT, I DO DO WANNA BRING FORWARD TWO OF OUR DIRECTORS, KAREN MCKINSEY, OUR DIRECTOR OF SECONDARY TEACHING AND LEARNING, AND DR.
THIS IS FOR YOUR INFORMATION ONLY.
I DO WANT, IF WE CAN PULL UP THE EXECUTIVE SUMMARY IN ORDER TO SIT THAT THE TEAM A RESPECTIVELY START WITH ELEMENTARY.
IF YOU WANNA REVIEW, I'LL HAVE MS. BULLOCK GIVE YOU A FEW POINTS.
AND THEN, UM, MS. MS. MS. MCKENZIE SAID, SHARE A FEW POINTS WITH YOU AS WELL FOR SECONDARY, AS WELL AS SOME OF THE CAMPS THAT WE ARE PROVIDING FOR OUR COMMUNITY THIS SUMMER.
WE'RE EXCITED ABOUT PROVIDING OUR STUDENTS WITH MANY ENGAGING OPPORTUNITIES THIS SUMMER, AND WE'RE EXCITED ABOUT OUR ELEMENTARY PROGRAMS. WE'RE GONNA BE SERVING THIRD GRADE STUDENTS, AND THAT'S IN COMPLIANCE WITH OUR READ TO SUCCEED LEGISLATION.
WE'RE GONNA BE USING LOTS OF DATA TO INFORM WHAT WE'RE DOING WITH THOSE STUDENTS AND MAKE SURE IT'S PERSONALIZED, AND WE'RE GONNA MAKE SURE THAT WE'RE WORKING ON BOTH THEIR COMPREHENSION AND THEIR FLUENCY SKILLS.
AND I'LL TURN IT OVER TO MS. MCKENZIE TO TALK ABOUT THE REST OF OUR PROGRAMS. THANK YOU, BRANDY.
SO I'LL JUST GO DOWN, IF THAT'S OKAY, JUST TO MAKE IT A LITTLE BIT EASIER AND KIND OF END UP WITH MY SECONDARY SUMMER SCHOOL.
MEDTECH SEVEN CAMPS THIS SUMMER HAVE EXPANDED.
LAST YEAR THEY HAD TWO CAMPS FOR TWO WEEKS.
THIS YEAR WE HAVE FOUR WEEKS AND WE HAVE SEVEN CAMPS.
WE ARE GONNA MAINTAIN THE STEAM CAMP.
THAT WAS A HUGE HIT WITH OUR FAMILIES AND OUR STUDENTS.
BUT WE ARE ALSO ADDING A MEDTECH CAMP, JUST SPECIFICALLY ON MEDICAL.
AND WE HAVE A TECHNOLOGY IT CAMP, SO THREE VERY SPECIFIC CAMPS THERE.
AS YOU KNOW, CSA IS VERY NEAR AND DEAR TO MY HEART.
WE WENT TO TWO CAMPS LAST, UH, YEAR BEFORE LAST.
WE DO A SCHOOL, UM, AN ARTISTIC CAMP ON THE SOUTH OF THE BROAD AND ONE NORTH OF THE BROAD.
LAST YEAR OUR NUMBERS WERE UP A LITTLE BIT, SO WE'RE ANTICIPATING THEY WILL CONTINUE TO CLIMB.
LAST YEAR WE WERE AT ABOUT A HUNDRED AND SIXTY, A HUNDRED FIFTY, A HUNDRED SIXTY.
WE'RE HOPING TO HAVE OVER 200 THIS YEAR IN THOSE CAMPS.
AND WE WILL PROVIDE ALL ARTS AREAS.
SECONDARY SUMMER SCHOOL, WE'RE REALLY EXCITED ABOUT.
UM, WE WILL BE OPERATING IN 12 OF OUR BUILDINGS, UH, FOR OUR 14 DIFFERENT SCHOOLS.
HILTON HEAD HIGH SCHOOL'S GONNA JOURNEY OVER TO HILTON HEAD, MIDDLE SCHOOL, AND RIVER RIDGE IS GONNA JOURNEY ON OVER TO MCCRACKEN DURING THAT TIME.
OUR STUDENTS USE THAT TIME TO GAIN PROFICIENCY IN COURSES THAT THEY'VE TAKEN AND TO MASTER THAT CONTENT SO THAT THEY CAN MOVE ALONG THEIR PROGRESSION OF LEARNING.
I HAVE TO SAY THIS BEFORE I CONCLUDE, AND THAT IS, SUMMER SCHOOL IS NOT JUST BRANDY AND I, WE DO ENJOY WORKING ON IT.
FACILITIES, TRANSPORTATION, FOOD SERVICE, CUSTODIAL, THE ENTIRE ISDD TEAM IS PART OF IT AS WELL.
SO IT IS TRULY A DISTRICT EFFORT TO PROVIDE
[03:15:01]
THESE EXTRA OPPORTUNITIES FOR OUR STUDENTS THROUGHOUT THE SUMMER.SO, BOARD MEMBERS OUT TO BUILD AS WELL.
WE'LL HAVE EXTENDED SCHOOL YEAR FOR OUR STUDENTS WITH DISABILITIES, WILL BE HOUSED AT TWO LOCATIONS, MC RILEY, AS WELL AS BEAUFORT ELEMENTARY.
THAT IS HOUSED THROUGH OUR STUDENT, THROUGH OUR STUDENTS TO OUR DEPARTMENT OF, UM, SPECIAL EDUCATION.
AND I DO WANNA GO BACK TO THE ELEMENTARY COMPONENT BECAUSE AT THE ACADEMIC COMMITTEE, WE SHARED A LOT OF TIME DISCUSSING WITH YOU TO UPDATE YOUR EDIFICATION WITH REGARD TO THE SHIFT AT THE STATE LEVEL AND THE IMPACT OF LEGISLATION ON POTENTIAL RETAINES LAST YEAR AT THIS TIME, COMPARED TO NOW, AND I'M NOT GONNA QUOTE NUMBERS OF STUDENTS WHO ARE MULTILINGUAL LANGUAGE LEARNERS.
WE HAVE ABOUT A 49 STUDENT, OR ACTUALLY THAT WAS DONE BY MS. DR. DIXON.
A 17% INCREASE OF POTENTIAL RETAINES.
THE STATE HAS NOW SHIFTED THE SCORE NEEDED ON YOUR SE READY TO INCREASE BY 70 POINTS.
AND I AM MUST CORRECT MYSELF THAT IT, THAT IT'S ACTUALLY A 70 17% PERFORMANCE INCREASE BY STUDENTS IN ORDER TO MEET THE THRESHOLD SCORE NOT TO BE RETAINED.
OUR PARENTS HAVE BEEN NOTIFIED EARLIER IN THE YEAR BY PROJECTIONS THAT WE, YOU RECOGNIZE WE DO DIAGNOSTIC TESTING THREE TIMES A YEAR.
THAT FALL DIAGNOSTIC IS AN INDICATOR OF POTENTIAL RETAINES.
SO WE START COMMUNICATING WITH FAMILIES WAY EARLY IN THE YEAR WE ARE HELD TO GET THAT OUT.
BY THE END, THAT FIRST COMMUNICATION OUT BY THE END OF NOVEMBER, THIS ELEMENTARY TEAM HAS BEEN VERY PROACTIVE AND, UM, VERY PROACTIVE WITH OUR SCHOOLS.
AND THAT COMMUNICATION ACTUALLY STARTS AS SOON AS THAT DIAGNOSTIC FIRST HAPPENS.
RIGHT? LET'S GET OUR FAMILIES ENGAGED.
I ALSO WANT YOU TO RECOGNIZE THE STATE REG REGULATION HAS PULLED THE USE OF A PORTFOLIO IN THE PAST.
THE STUDENT COULD DEMONSTRATE THEIR PROFICIENCY BY EXECUTING EX DEMONSTRATING THEIR MASTERY SPECIFIC STANDARDS THAT IS NO LONGER BY THE TEACHER MADE MATERIAL.
WE ARE TIED TO THE ASSESSMENT AND ONCE AGAIN, RECOGNIZE THAT'S A 70 POINT INCREASE FROM A YEAR AGO.
WITH THAT, I'LL BRING, UM, DR. BULLOCK BACK UP IF WE HAVE ADDITIONAL INFORMATION AND NUMBERS IF YOU'D LIKE TO SHARE.
SO AT THIS TIME, WE'RE LOOKING AT 310 STUDENTS WHO BASED ON THEIR WINTER I-READY DIAGNOSTIC ARE AT RISK FOR RETENTION IN THIRD GRADE.
WHEN WE LOOK AT OUR MULTILINGUAL STUDENTS, AND WE KNOW THAT WE DON'T WANT TO, WE WANNA LOOK AT THOSE MORE CLOSELY.
IF WE PULL THOSE STUDENTS OUT, WE'RE DOWN TO 209.
SO WE'RE ANXIOUS TO SEE THE SPRING DIAGNOSTIC SCORE AND SEE HOW THEY DO ON THAT SCORE.
BECAUSE IF WE CAN GET THEM TO A 4 89, THEN THAT DOES TAKE THAT RISK OF RETENTION AWAY.
UM, BUT WE WILL STILL PROVIDE A SUMMER SCHOOL OPPORTUNITY FOR THOSE STUDENTS BECAUSE WE KNOW, EVEN IF THEY HAVE THAT SCORE, THEY STILL NEED, UM, SOME ADDITIONAL SUPPORT.
SO IN, IN THE SUMMER PROGRAMMING, UH, IN THE PAST, THE PORTFOLIO PROCESS ALLOWED STUDENTS WHO, FOR EXAMPLE, MAY NOT HAVE BEEN, UM, A GREAT TEST TAKER, YOU KNOW MM-HMM
TO DEMONSTRATE MASTERY IN A DIFFERENT WAY.
AND, AND THAT'S NO LONGER AN OPTION.
SO YOU, YOU HAVE TO BECOME A GREAT TEST TAKER EARLY ON, RIGHT? AS PART OF, UH, AS PART OF IT.
THIS IS WHEN IT BEGINS TO IMPACT THAT HAS OTHER, OTHER THINGS THAT OUR, UH, SCHOOL-BASED PERSONNEL HAS TO, HAS TO ACCOUNT AS THEY'RE ASSIGNING CLASSES TO STUDENTS.
YOU MAY HAVE MORE THIRD GRADE CLASSES THAN YOU HAD IN THE PAST AND FEWER FOURTH GRADE CLASSES THAN YOU HAD IN THE PAST.
SO THOSE ARE, I MEAN, THERE'S DIFFERENT DOMINO EFFECTS FROM, FROM, FROM ALL OF THAT, WHICH, WHICH OF COURSE WILL WORK THROUGH AND TO BUILD ON REGULATION AS DR. RODRIGUEZ IS SHARING WITH YOU.
SO AGAIN, IT WAS FOUR 19 LAST YEAR WAS THE PASSING.
YOU HAD TO DEMONSTRATE ADD 70 POINTS.
WE HAVE THE MATH PORTFOLIO OF DEMONSTRATING MASTERY OF THE STANDARDS IS NO LONGER CAN BE CONSIDERED FOR RETENTION.
THE OTHER ITEM TO RECOGNIZE IN LEGISLATION POTENTIALLY IS FIRST GRADERS FOR THE NEXT YEAR WILL BE INCLUDED FOR SUMMER SCHOOL.
SO I HAVE TO PUT EMPHASIS TO OUR COMMUNITY, RECOGNIZE THAT KINDERGARTEN'S CRITICAL THIS YEAR, LET'S BUILD UP ALL THAT MUSCLE WORK FOR OUR LITTLE ONES.
UM, BECAUSE FIRST GRADE WILL BE LOOKED AT VERY CLOSELY THE COMING YEAR BY THE STATE.
AND IN ADDITION, YOU KNOW, THAT'S JUST, WE JUST WANT YOU TO HAVE THAT INFORMATION BECAUSE AS, AS PEOPLE FIND OUT THAT MAYBE THEIR CHILD IS RETAINED OR NOT RETAINED, YOU KNOW, THEY'LL, THEY'LL CALL US.
BUT WE WANT YOU TO UNDERSTAND WHY THAT DIFFERENCE
[03:20:01]
THIS YEAR FROM PRIOR YEARS, UH, AND WHERE THAT'S COMING FROM AND THE POTENTIAL IMPACT OF, OF THAT.MR. COMMENTS, MR. SMITH, FIRST ALL, FIRST OF ALL, I WOULD JUST LIKE TO THANK YOU ALL FOR BRINGING THIS INFORMATION FORWARD.
AND ALSO, UM, IN THE, UH, WITH US GOING TO THE STATE HOUSE, UM, IN, IN, IN A COUPLE, IN A COUPLE OF DAYS, OR WHEN, WHEN WE DO GO, THIS IS SOMETHING THAT I THINK THAT WE NEED TO BRING TOWARDS TO LEGISLATORS BECAUSE THEY CANNOT CONTINUE TO MOVE THE GOALPOST AND THEN SAY WHO IS HITTING IT AND WHO'S NOT HITTING IT.
AND, AND, AND, AND HAVING US TO SAY, HEY, HEY, THIS IS WHAT WE EXPECT.
IF YOU CONTINUE TO MOVE THE GOLD POLES.
HELL, WE AIN'T GONNA NEVER MAKE A TOUCHDOWN.
WE, WE GONNA JUST BE, KEEP MOVING THE BALL.
SO THIS IS SOMETHING THAT WHEN WE, WE SPEAK TO OUR LEGISLATORS, WE'RE GONNA HAVE TO SPEAK FIRMLY AND, AND LETTING THEM KNOW THAT IF, IF YOU CONTINUE TO MOVE THE GOALPOST, AND HOW ARE WE GONNA BE ABLE TO REAL REALISTICALLY EVALUATE WHERE WE ARE AS A DISTRICT, REALISTICALLY EVALUATE WHERE WE ARE IN TERMS OF SCHOOLS, IF YOU KEEP MOVING THAT.
SO, I MEAN, THAT'S JUST SUCH, THAT'S JUST SOME FOOD FOR FOOD FOR THOUGHT.
I JUST WANNA PUT THAT OUT THERE BECAUSE THIS IS A VERY BIG POINT.
UH, YOU KNOW, REVEREND, SOME PEOPLE MAY REALIZE THEY'RE NOT THIS, THIS IS, THIS IS HUGE.
THAT'S, THAT'S THAT, THAT'S A LOT.
AND ALSO, I JUST WANTED TO THANK, UH, MS. BULLOCK, BECAUSE I DON'T KNOW, I'M NOT SURE EXACTLY HOW YOU DO IT, BUT, UH, WHAT YOU DO, I KNOW, UH, I'VE COME TO C HOME A COUPLE TIMES AND I'VE SEEN YOU WHEN YOU ARE IN THERE WITH THEM IN THAT MEETING ROOM WITH THOSE TEACHERS.
I SEE THEY'RE IN THERE LIKE, LIKE, LIKE THEY, THEIR HEADS DOWN.
SO I JUST WANTED TO PUBLICLY THANK YOU, THANK YOU FOR YOUR WORK OUT THERE AND WHAT YOU DO, BECAUSE YOU HAVE THEIR FULL ATTENTION.
GUYER, IF I COULD BRING A POINT ALSO, BECAUSE MRS. CROSBY WAS SHARING WITH YOU, THE IMPACT OF FUNDING FOR US WE'RE FUNDED EACH YEAR BY THE PRIOR POPULATION OF SUMMER SCHOOL.
SO NEXT YEAR, FIRST AND THIRD GRADER REQUIREMENTS.
WE WANNA RECOGNIZE THAT EITHER AT THE STATE LEVEL, THEY HAVE TO INCREASE POTENTIAL FUNDING OR WE HAVE TO MAKE A DECISION ON WHO WILL BE SERVED.
SO I DO WANNA BRING THAT TO YOUR ATTENTION AS WELL.
ONE, THE FIRST ONE IS, UM, WHAT YOU JUST MENTIONED IS THAT WHAT, WHAT CAN WE DO TO SORT OF PRECLUDE THAT? UH, AND THEN THE SECOND QUESTION IS, HOW DO WE NOTIFY THE PARENTS SO THEY HAVE A HEADS UP THAT THEIR INSTRUCTION IN HOME IS BECOME EVEN MORE CRITICALLY IMPORTANT? SO THE FIRST ITEM ACTUALLY IS HAVING THAT CONVERSATION WHEN YOU GO UP TO COLUMBIA, PLEASE TO SHARE THAT, IF YOU'RE SHIFTING THE RESPONSIBILITIES OF WHO WE SERVE AT SUMMER SCHOOL, PLEASE MAKE SURE YOU CAST