Jun 10, 2024 School Board Special Workshop

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ALL RIGHT. GOOD AFTERNOON. WE'LL CALL THIS SPECIAL MEETING OF THE CARROLL ISD BOARD OF TRUSTEES TO ORDER ON JUNE 10TH, 2024 AT 5 P.M.

[1. CALL TO ORDER AND ESTABLISH QUORUM]

[2. EXECUTIVE SESSION (Part 1 of 2)]

ALL RIGHT. GOOD AFTERNOON EVERYBODY.

WE WILL CONVENE BACK INTO OPEN SESSION AT 6 P.M..

OUR FIRST AGENDA ITEM IS THE OPENING PRAYER, PLEDGES OF ALLEGIANCE AND MOMENT OF SILENCE.

[3. OPENING PRAYER AND PLEDGES OF ALLEGIANCE/MOMENT OF SILENCE]

WE ARE GRATEFUL FOR THE GENEROUS DONATIONS FROM THE CARROLL EDUCATION FOUNDATION AND THE TOUCHDOWN CLUB, WHICH WILL SUPPORT A DEDICATED TEACHERS AND ENHANCE OUR FACILITIES. LORD, BLESS OUR DISCUSSIONS AND DECISIONS REGARDING THESE CONTRIBUTIONS.

IN THE FINAL BUDGET FOR THE 2024-2025 SCHOOL YEAR.

MAY OUR CHOICES REFLECT YOUR WILL AND SERVE THE BEST INTEREST OF OUR STUDENTS, STAFF, AND COMMUNITY.

GRANT US, CLARITY, UNITY AND A SPIRIT OF COOPERATION AS WE WORK TOGETHER TO BUILD A BRIGHTER FUTURE FOR OUR DISTRICT.

IT'S IN JESUS CHRIST'S NAME THAT WE PRAY.

AMEN. PLEASE JOIN ME FOR THE PLEDGE OF ALLEGIANCE.

ALLEGIANCE], PLEDGE]. PLEASE JOIN ME FOR A MOMENT OF SILENCE.

THANK YOU. ALL RIGHT.

OUR NEXT AGENDA ITEM IS PUBLIC COMMENTS.

MISS SHELTON, DO WE HAVE ANY SPEAKERS TONIGHT? WE DO NOT HAVE ANY SPEAKERS.

ALL RIGHT. NO SPEAKERS. SO WE'LL MOVE RIGHT ALONG TO OUR NEXT AGENDA ITEM.

IN FACT, I WOULD LIKE TO MOVE ITEMS 8.1 AND 8.2 TO OUR NEXT ITEMS FOR DISCUSSION AND ACTION.

I'D LIKE TO BRING UP AND INTRODUCE ALEX MARTIN, OUR EXECUTIVE DIRECTOR FOR THE CARROLL EDUCATION FOUNDATION.

I KNOW SHE HAS SOME EXCITING NEWS FOR ALL OF US.

I DO, MISS MARTIN.

GOOD EVENING, THANK YOU FOR HAVING US.

AS YOU KNOW, I'M ALEX MARTIN, THE EXECUTIVE DIRECTOR OF THE CARROLL EDUCATION FOUNDATION.

TODAY, I'M JOINED BY SEVERAL MEMBERS OF OUR BOARD OF DIRECTORS, AS WELL AS SOME OF OUR TOP [INAUDIBLE] DONORS.

FOR THE LAST 27 YEARS, WE'VE WORKED TO HELP FUND TEACHERS IN OUR GREAT DISTRICT.

THE WAYS THAT WE'VE DONE THIS HAVE CHANGED AS THE NEEDS OF THE DISTRICT HAVE CHANGED.

AND THIS CAMPAIGN YEAR, WE ROLLED OUT A NEW MODEL THAT WOULD ALLOW US TO MAKE A GREATER IMPACT DIRECTLY TO OUR TEACHERS BY FUNDING THEM THROUGH THREE PILLARS TEACHER SCHOLARSHIPS FOR THOSE GOING BACK TO SCHOOL, OUR TEACHERS OF THE YEAR TO AWARD THOSE THAT GO ABOVE AND BEYOND EVERY DAY TO INSPIRE OUR STUDENTS, AND THEN WHAT WE'RE MOST EXCITED ABOUT AND WHY WE'RE ALL HERE TONIGHT.

THE END OF YEAR TEACHER APPRECIATION GIFT THAT WILL GO TO ALL DRAGON TEACHERS.

SO IT IS MY HONOR ON BEHALF OF THE CEF BOARD AND OUR INCREDIBLE DONORS, TO PRESENT THE DISTRICT WITH A CHECK FOR $243,291, WHICH REPRESENTS A $1,200 GIFT FOR ALL FULL TIME TEACHERS AND A 600 GIFT FOR OUR PART TIME TEACHERS.

IN TOTAL, CEF HAS INVESTED $680,491 DIRECTLY TO OUR DRAGON TEACHERS THIS YEAR, WHICH IS THE LARGEST ONE YEAR INVESTMENT IN CEF 27 YEAR HISTORY.

WE'RE EXCITED TO CELEBRATE THIS MOMENT AND WE CAN'T WAIT TO SEE WHAT NEXT YEAR BRINGS.

AWESOME. THANK YOU.

IT REALLY IS AMAZING.

THANK YOU, MISS MARTIN, FOR THIS AND ALL OF YOU THAT ARE SITTING OUT HERE FOR AN INCREDIBLE EFFORT.

I MEAN, JUST CHANGING THE BUSINESS MODEL I KNOW WAS WAS CHALLENGING AND CHANGE IS TOUGH SOMETIMES, BUT THIS IS GOING TO IMPACT ALL OF OUR TEACHERS.

I KNOW THEY WERE ANXIOUSLY WAITING FOR YOUR ANNOUNCEMENT TONIGHT AND SO WE'RE VERY MUCH APPRECIATIVE.

WE'RE JUST GOING TO KEEP GROWING THIS THING YEAR AFTER YEAR AFTER YEAR MARKETING, LETTING THE COMMUNITY KNOW EXACTLY WHAT THEIR MONEY IS GOING TOWARDS AND THAT IS TEACHERS AND THAT'S WHAT WE ARE ALL ABOUT.

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THANKS TO ALL OF YOU.

THANK YOU FOR BEING HERE.

DO WE WANT TO TAKE A PICTURE OR TWO? WE WOULD LOVE TO GET A PICTURE.

OKAY, WITH THE BIG FAKE CHECK.

DAVID HAS THE REAL CHECK.

OKAY. DO YOU HAVE IT, DAVID? ALL RIGHT.

WHY DON'T WE ALL COME UP [INAUDIBLE].

ALL RIGHT, SO WE HAVEN'T APPROVED THIS BIG CHECK YET.

LET'S GO AHEAD AND MOVE TO 8.1.

[8. DISCUSSION / ACTION (Part 1 of 2)]

TRUSTEE BRYAN, WITH YOUR PERMISSION, I'D LIKE TO READ THE BOARD RESOLUTION TO DO JUST THAT.

LET'S DO A MOTION FIRST ON THE ACCEPTING THE DONATION, AND THEN WE'LL MOVE ON TO THE RESOLUTION.

YES, SIR. TRUSTEE YEAGER I MOVE TO ACCEPT THE CEF DONATION TO THE CARROLL ISD.

SECOND, WE HAVE A MOTION.

AND SECOND, ALL IN FAVOR? MOTION CARRIES 6 TO 0.

OKAY, 8.2, CONSIDER APPROVAL OF BOARD RESOLUTION FOR ONE TIME PAYMENT FROM CARROLL EDUCATION FOUNDATION TRUSTEE YEAGER.

YOU BET. BOARD RESOLUTION.

WHEREAS THE CARROLL INDEPENDENT SCHOOL DISTRICT HAS ALWAYS BEEN AND WILL REMAIN COMMITTED TO PROVIDING THE BEST POSSIBLE EDUCATIONAL OPPORTUNITIES AND STAFF FOR ITS STUDENTS, WHILE AT THE SAME TIME BEING GOOD STEWARDS OF AVAILABLE PUBLIC FUNDS AND WHEREAS THE BOARD OF TRUSTEES WISHES TO PROVIDE CERTAIN CARROLL ISD EMPLOYEES A ONE TIME PAYMENT AS AN INCENTIVE FOR THEIR CONTINUED SERVICE TO THE STUDENTS AND SCHOOL COMMUNITY OF CARROLL ISD AND WHEREAS, THE BOARD OF TRUSTEES ANTICIPATES THAT CARROLL ISD WILL UTILIZE FUNDS DONATED BY THE CARROLL EDUCATION FOUNDATION, AND SUCH FUNDS WILL BE DISPERSED BY THE CARROLL ISD TO ELIGIBLE CARROLL ISD EMPLOYEES AS FURTHER OUTLINED BELOW. AND WHEREAS BOARD POLICY 3.4.3 ALLOWS THE BOARD OF TRUSTEES TO ACCEPT ANY BEQUEST OR GIFT OF MONEY OR PROPERTY ON BEHALF OF THE DISTRICT, AT WHICH TIME THE GIFT SHALL BECOME THE SOLE PROPERTY OF CARROLL ISD FOR ITS USE AND DISPOSITION AND WHEREAS A PUBLIC SCHOOL PURPOSE WILL BE SERVED BY THE PAYMENT OF A ONE TIME INCENTIVE PAYMENT TO ELIGIBLE EMPLOYEES IN ORDER TO DEMONSTRATE SUPPORT OF ITS EMPLOYEES, ENHANCE EMPLOYEE MORALE, AND SERVE AS AN EMPLOYEE RETENTION INCENTIVE AND WHEREAS, THE CARROLL ISD BELIEVES THE SUPPORT AND RETENTION OF EXPERIENCED EMPLOYEES BENEFITS THE STUDENTS AND THE STAFF AT CARROLL ISD.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD THAT ONE, THE FINDINGS AND RECITALS IN THE PREAMBLE OF THIS RESOLUTION ARE FOUND TO BE TRUE AND CORRECT IN OUR HEREBY APPROVED AND ADOPTED AND TWO THE BOARD ACCEPTS THE DONATION OF $643,291 FROM THE CARROLL EDUCATION

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THREE THE BOARD AUTHORIZES THE PAYMENT OF A ONE TIME INCENTIVE PAYMENT AS FOLLOWS $1,200 FOR EACH FULL TIME TEACHER, $600 FOR PART TIME TEACHERS, AND A PRORATED AMOUNT FOR EACH TEACHER THAT BEGAN AFTER THE BEGINNING OF THE YEAR STARTED AND WILL BE PRORATED BASED ON THE DAYS WORKED AND FOR THE PAYMENT OF THIS ONE TIME INCENTIVE.

PAYMENT WILL BE FOR THE PURPOSE OF SUPPORTING EXEMPLARY EMPLOYEES, INCENTIVIZING CONTINUED SERVICE TO CARROLL ISD AND ITS STUDENTS, AND FIVE THE PAYMENT OF THIS ONE TIME INCENTIVE PAYMENT IS EXPRESSLY CONDITIONED UPON THERE BEING SUFFICIENT MONIES TO SUPPORT THE PAYMENT OF THE ONE TIME INCENTIVE PAYMENT, AND IN THE ABSENCE OF SUFFICIENT FUNDS, AS DETERMINED BY THE SUPERINTENDENT, THIS PAYMENT SHALL NOT BE PAID, AND SIX THE BOARD FINDS THAT THE PUBLIC PURPOSE AND THE BENEFIT TO THE CARROLL ISD EXISTS IN THE PAYMENT OF THIS ONE TIME INCENTIVE PAYMENT TO ELIGIBLE EMPLOYEES, AND SEVEN.

A COPY OF THIS RESOLUTION WILL BE PLACED IN THE MEETING MINUTES OF THE CARROLL INDEPENDENT SCHOOL TRUSTEE BOARD OF TRUSTEES, ADOPTED BY THE VOTE OF MAJORITY OF MEMBERS OF THE BOARD OF TRUSTEES OF CARROLL ISD.

PRESENT AND VOTING IN OPEN MEETING AND THE BOARD.

THE 10TH DAY OF JUNE.

A WONDERFUL DAY, JUNE 2024, AT WHICH A QUORUM WAS PRESENT.

THANK YOU, TRUSTEE YEAGER.

I MOVE TO APPROVE AS PRESENTED.

SECOND, WE HAVE A MOTION AND SECOND, ALL IN FAVOR? ALL RIGHT. MOTION CARRIES SIX TO NOTHING.

THANK YOU, TRUSTEE YEAGER.

WE'LL MOVE ON THE AGENDA ITEM NUMBER FIVE, WHICH IS CONSIDERATION AND POSSIBLE ACTION ON ANY MATTERS ADDRESSED IN EXECUTIVE SESSION.

WE HAVE NONE.

SO WE'LL MOVE ON TO ITEM NUMBER SIX, WHICH IS THE PRESIDENT'S REPORT AND I HAVE A UPDATE ON THE COMPLAINTS

[6. PRESIDENT'S REPORT]

BUT BEFORE I DO THAT, AND SINCE THIS IS A WORKSHOP AND IT'S SUPPOSED TO BE AN INFORMAL MEETING, I WOULD LIKE TO JUST EXPRESS ON BEHALF OF THE BOARD, HAPPY BIRTHDAY TO OUR A HAPPY 39TH BIRTHDAY TO OUR VERY OWN TRUSTEE YEAGER.

AND IF YOU DON'T MIND, EVERYBODY IN THE ROOM, WE'RE JUST GOING TO SING HAPPY BIRTHDAY TO HIM RIGHT NOW.

OKAY. READY? [SINGING].

CONGRATULATIONS TO YOU.

ALL RIGHT WE'LL MOVE ON TO MY UPDATE OF THE OCR COMPLAINTS.

AS A RECAP FROM OUR MAY 15TH BOARD MEETING.

AS I MENTIONED AT THAT MEETING, THE DISTRICT RECEIVED A LETTER FROM OCR ON MAY 6TH, 2024 THAT INCLUDED A PROPOSED RESOLUTION OF ACTION ITEMS RELATING TO THE FOUR COMPLAINTS.

OCR GAVE THE DISTRICT 90 DAYS TO SIGN THE PROPOSAL.

HOWEVER, OCR DID NOT PROVIDE THE DISTRICT A STATEMENT OF THE CASE, WHICH THEY ARE REQUIRED TO PREPARE IN ACCORDANCE WITH THEIR OWN CASE PROCESSING MANUAL. SECTION 303D.

THE STATEMENT OF THE CASE IS TO INCLUDE SUCH ITEMS AS THE ALLEGATIONS RAISED IN THE COMPLAINT AND EXPLANATION OF PERTINENT LEGAL STANDARDS, RELEVANT BACKGROUND INFORMATION, A STATEMENT OF EACH ALLEGATION IN THE FINDINGS OF FACT FOR EACH, INCLUDING ANALYSIS OF EVIDENCE ON WHICH THE FINDINGS WERE BASED.

CONCLUSIONS FOR EACH ALLEGATION, AND AN EXPLANATION OF HOW THE TERMS OF THE PROPOSED RESOLUTION ARE ALIGNED WITH THE EVIDENCE.

THE DISTRICT HAS REQUESTED THIS DOCUMENT ON THREE SEPARATE OCCASIONS, AND OCR HAS REFUSED TO PROVIDE IT IN EVERY INSTANCE.

FOR THE LATEST REQUEST WAS MADE BY ME AND DOCTOR LEDBETTER, ALONG WITH OUR DISTRICT AND BOARD LEGAL COUNSEL, VIA A VIDEO CONFERENCE CALL ON MAY 29TH.

WITH THE TWO OCR ATTORNEYS ASSIGNED TO OUR CASE, ALONG WITH THEIR SUPERVISOR.

OCR ONCE AGAIN DENIED OUR REQUEST AND INSISTED THAT THEY WOULD ONLY PROVIDE THEIR FINDINGS IN CONCLUSIONS, I.E.

STATEMENT OF THE CASE.

AFTER THE DISTRICT AGREES TO SIGN THE PROPOSED RESOLUTION.

SO. JUST TO BE CLEAR, THE OFFICE OF CIVIL RIGHTS INSISTS THAT THE DISTRICT SIGN A DOCUMENT AGREEING TO CERTAIN DEMANDS BEFORE ARTICULATING TO THE DISTRICT WHAT THEIR FINDINGS AND CONCLUSIONS ARE IN THE EVIDENCE THAT WAS USED TO ALIGN WITH THOSE FINDINGS AND CONCLUSIONS.

FURTHER, THERE IS NO LEGAL STATUTE PROHIBITING OCR FROM PROVIDING US THIS DOCUMENT AT THIS JUNCTURE IN THE

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SO WHAT HAPPENS NOW? IF THE DISTRICT DECIDES THEY ARE AT AN IMPASSE AND DOES NOT ENTER INTO A RESOLUTION AGREEMENT WITH OCR WITHIN THE 90 DAY TIMELINE.

THE NEXT STEP IN THE PROCESS, IN ACCORDANCE WITH OCR CASE PROCESSING MANUAL SECTION 305 IS.

OCR WILL PREPARE A LETTER OF IMPENDING ENFORCEMENT ACTION.

NOW PAY CLOSE ATTENTION TO THIS NEXT STATEMENT.

THE LETTER OF IMPENDING ENFORCEMENT ACTION, WHICH OCR IS REQUIRED TO SEND TO THE DISTRICT.

INCLUDES THE STATEMENT OF THE CASE AND GIVES THE DISTRICT TIME TO ENTER INTO FURTHER NEGOTIATIONS WITH OCR IF THEY SO CHOOSE.

I CAN'T MAKE THIS STUFF UP.

WHY NOT JUST GIVE US THE STATEMENT OF THE CASE NOW? LASTLY, MANY IN THE LEGACY MEDIA, INCLUDING SOME OF OUR OWN RESIDENTS HAVE CLAIMED, AND HAVE BEEN QUOTED AS SAYING, THAT THE OFFICE OF CIVIL RIGHTS SENDING THE DISTRICT A LIST OF DEMANDS MEANS THEY HAVE FOUND CIVIL RIGHTS VIOLATIONS IN OUR DISTRICT.

THAT IS SIMPLY NOT TRUE.

NO ONE KNOWS WHAT THEY HAVE FOUND BECAUSE THEY REFUSE TO PROVIDE THAT TO US.

NEVERTHELESS, THE BOARD PLANS TO DELIBERATE ON THIS MATTER AND PROVIDE ANOTHER UPDATE TO YOU, THE COMMUNITY, PRIOR TO THE 90 DAY OCR DEADLINE.

ALL RIGHT. WE'LL MOVE ON TO ITEM NUMBER SEVEN, THE INFORMATION SECTION OF OUR AGENDA.

[7. INFORMATION]

THANK YOU, PRESIDENT BRYAN.

MEMBERS OF THE BOARD.

TONIGHT, I AM PLEASED TO BRING YOU THE FINAL BUDGET.

NOT SURE IT'S NOT SHOWING.

HERE WE GO.

SO TONIGHT'S AGENDA WILL GO THROUGH THE PRELIMINARY TAX RATES.

WE'LL GO THROUGH THE GENERAL FUND BUDGET AND SOME OF THE ASSUMPTIONS THAT WE'VE REFINED AND WORKED THROUGH OVER THE COURSE OF THIS BUDGETING PROCESS.

TALK A LITTLE BIT ABOUT THE DEBT SERVICE FUND BUDGET AND THE PLAN WITH DEBT SERVICE.

WE HAVE DONE THE PHASING.

I'M GOING TO UPDATE YOU GUYS ON THAT AND THEN WE'LL TALK A LITTLE BIT ABOUT NEXT STEPS.

THIS BUDGET YEAR IS UNIQUE.

IT'S THE FIRST BUDGET ADOPTION ON THE NEW FISCAL YEAR AND WHEREAS HISTORICALLY, WE HAVE WAITED UNTIL JULY, CERTIFIED VALUES COME OUT ON JULY 25TH THIS YEAR, WE GO BY UNCERTIFIED VALUES.

WE GET VALUES FROM TARRANT APPRAISAL DISTRICT IN APRIL AND IN MAY AND SO IN MAY I USED THE UNCERTIFIED VALUES TO CALCULATE WHAT IS MOST LIKELY GOING TO BE OUR MAXIMUM COMPRESSED RATE.

IN PRESENTING THE INFORMATION I'M GOING TO PRESENT TO YOU TONIGHT.

SO. RIGHT NOW WE'VE GOT THE MAXIMUM COMPRESSION RATE TO BE 6169.

THAT IS THE MOST THAT WE WOULD COMPRESS THE TAX RATE AND THAT IS DUE TO THE LEGISLATION THAT SAYS EACH YEAR THEY SET THE FLOOR FOR THOSE, AND OUR PROPERTY VALUES HAVE GROWN, OUR PROPERTY VALUE ON AN INTERIM BASIS GREW ABOUT 11.5%.

SO THE FORMULA IT SIMPLY CAPS THE FORMULA IS WHAT IT DOES.

SO OUR MPR THAT IS DETERMINED BY THE STATE THAT PRODUCES OUR TIER ONE FUNDING IS 6169, A DECREASE OF 0.0056.

THE ENRICHMENT TAX RATE IS 0.05.

THAT IS NOT CHANGED. THE TIER TWO PENNIES AS WE LIKE TO REFER TO THOSE AND OUR OVERALL TAX RATE WILL BE 6669, A LITTLE BIT LESS THAN 0.0056 THAN LAST YEAR RIGHT NOW.

WE'LL TALK A LITTLE BIT ABOUT DEBT SERVICE, THE INTEREST AND SINKING TAX RATE, WHICH SERVICES, WHICH PROVIDES REVENUE TO SERVICE OUR DEBT.

AT THIS POINT, I'M PROPOSING TO TO NOT CHANGE THE 2024 2025 MAXIMUM COMPRESSED RATES.

WE WILL KNOW DEFINITIVELY IN EARLY AUGUST ONCE WE GET THE CERTIFIED VALUES, THE CERTIFIED VALUES DETERMINE WHAT THE MCR WILL BE AND AGAIN, BASED ON OUR GROWTH, WE'RE GOING TO HIT THE WE'RE GOING TO MORE THAN EXCEED WHAT THE FLOOR WOULD BE.

SO WE'RE LIMITED TO THAT AMOUNT.

SO, MR. JOHNSON, WE GO BACK TO THAT LAST SLIDE.

I JUST WANT TO MAKE SURE THE COMMUNITY UNDERSTANDS THAT THE DIFFERENCE BETWEEN THE 2022, 2023 EFFECTIVE TAX RATE, THE MAXIMUM COMPRESSION RATE OF

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CORRECT? CORRECT.

AND SO THE ENRICHMENT TAX RATE IS SOMETHING THAT THE AND THE BOARD, I MUST SAY APPROVED THAT THROUGH A UNANIMOUS VOTE.

CORRECT. THE ENRICHMENT TAX RATE.

THAT'S RIGHT. RIGHT BELOW THAT IS THAT'S CONTROLLED BY THE BOARD.

THE FIRST $0.05 IS CONTROLLED BY THE BOARD.

WE HAVE THREE PENNIES OR $0.03 THAT WE COULD APPROVE, WHICH IS NOT SUBJECT TO RECAPTURE, IF I'M CORRECT.

CORRECT. IS THAT CORRECT? HOWEVER, THE VOTERS WOULD HAVE TO APPROVE THAT THREE PENNY INCREASE THROUGH A AN ELECTION.

THAT IS CORRECT. CORRECT. OKAY AND THEN THERE'S AN AND THOSE EXTRA THREE PENNIES JUST LIKE THESE FIVE PENNIES DO NOT RECAPTURE DOES NOT APPLY TO THEM AT ALL AND EACH ONE OF THOSE PENNIES IS APPROXIMATELY $1 MILLION, A LITTLE OVER A MILLION.

OKAY. SO AND I KNOW YOU'RE GOING TO TALK A LITTLE BIT ABOUT THE INS TAX RATE IN THIS PRESENTATION TO SHOW THE COMMUNITY HOW MUCH ROOM WE HAVE RIGHT NOW IN THE I&S RATE VERSUS THE M&O RATE.

AND WHAT WE CAN DO IN THAT REGARD, IF WE WERE TO EVER NEED YOU KNOW, WE'RE WAITING ON THE 89TH LEGISLATIVE SESSION, HOPEFULLY CROSS OUR FINGERS THAT THEY'LL DO SOMETHING POSITIVE FOR PUBLIC SCHOOL FINANCE.

BUT YOU KNOW, WE'RE ALL WE'RE NOT HOLDING OUR BREATH AND SO I KNOW THAT WE HAVE TO COME UP WITH SOME SORT OF A PLAN B AND MAYBE EVEN A PLAN C TO START MAKING UP FOR THAT 20, 25% INFLATION DIFFERENCE OVER THE LAST, YOU KNOW, 4 OR 5 YEARS IN WHICH THEY HAVE DONE ABSOLUTELY NOTHING.

SO I JUST WANTED TO POINT THAT OUT.

THE DIFFERENCE BETWEEN WHAT WE HAVE CONTROL OVER AND WHAT WE DON'T WE DO HAVE CONTROL OVER THOSE FIVE PENNIES AND THEN THERE'S AN ADDITIONAL NINE PENNIES.

CORRECT AND THEY'RE CALLED COPPER PENNIES THAT ARE SUBJECT TO RECAPTURE AND THEY'RE ABOUT WE WOULD RECEIVE APPROXIMATELY 60%, I THINK, 40% ON THOSE 40% OF THOSE AND THEN WE'D HAVE TO PROVIDE 60%, WHICH IS ABSOLUTELY HIGHWAY ROBBERY.

BACK TO THE STATE, WHICH THE STATE CONTROLLER OR OUR LEGISLATIVE OFFICIALS WILL TELL US NOTHING ABOUT WHERE THAT MONEY IS GOING THAT WE'RE GIVING THEM.

SO, OKAY, I JUST WANTED TO MAKE SURE THAT WE'RE, YOU KNOW, ON THE SAME PAGE RIGHT THERE AND THEN I KNOW HAVE YOU TALKED TO THE OR ARE YOU GOING TO BE TALKING WITH IT TO THE INTEREST AND SINKING TAX RATE LATER ON IN YOUR PRESENTATION? YES. OKAY. THANK YOU.

YEAH. THANK YOU.

SO AS WE LOOK AT THE MAJOR DRIVERS IN REVENUE, AND OF COURSE, ROUGHLY 80% IS DETERMINED BY OUR ADA AVERAGE DAILY ATTENDANCE, WHICH IS WHEN THE STUDENTS SHOW UP.

PLUS REALLY THE TIER TWO TAX RATE THAT PRESIDENT BRYAN JUST ALLUDED TO.

SO OUR MAY 2024 UNCERTIFIED PRELIMINARY ESTIMATES ARE ABOUT 11.5% WHAT THAT RESULTS IN AND I'LL GO THROUGH THAT IN A LITTLE BIT MORE DETAIL IN THE FOLLOWING SLIDES MEANS INCREASED PROPERTY TAX REVENUE AND OF COURSE, SINCE WE HAVE DECLINING ENROLLMENT, WE DON'T REALLY GET TO KEEP MUCH OF ANY OF THAT.

PRELIMINARY PROPERTY TAX PROJECTIONS.

COLLECTIONS ARE PROJECTED TO BE 99.5% PRELIMINARY.

TOTAL TAX RATE IS 6669 AND THAT IS A DECREASE.

IT'S LIMITED BY BY THE LEGISLATION WE WERE TALKING A LITTLE BIT ABOUT THE ANTICIPATED SALE OF PROPERTY.

SO WE KNOW THAT WE HAVE WE'RE UNDER CONTRACT FOR THIS PROPERTY AND THE ONE UP ON NORTH HIGHLAND, THAT'S APPROXIMATELY $36 MILLION IN THIS BUDGET CYCLE.

WE'RE LOOKING AT UTILIZING ABOUT 8.6 MILLION TO BALANCE THE BUDGET.

THE PROJECTED ENROLLMENT DECLINE.

WE HAD A DEMOGRAPHIC PROJECTION AND SO I FACTORED THAT IN AT THE NOW NEW RELATIONSHIP OF ATTENDANCE TO FALL SNAPSHOT OF 93.8%.

I THINK THAT'S CONSERVATIVE.

IT IS CONSISTENT WITH WHAT WE'VE SEEN IN THE LAST COUPLE OF YEARS.

SO I FEEL THAT IS A CONSERVATIVE APPROACH.

BACK IN FEBRUARY, WE, ONE OF OUR TRUSTEES CALLED AUSTIN AND GOT AN INCREASE IN OUR PRE-K TUITION THAT HELPED TO ABOUT $870,000 TRANSPORTATION FEES AND CHILD NUTRITION.

WE INCREASED BOTH OF THOSE INCREMENTALLY.

SO WE'VE DONE THINGS OUTSIDE REALLY OF, THE NORM BY BY PURSUING ALL ADDITIONAL REVENUE SOURCES THAT WE COULD ON THOSE TWO ITEMS AND THEN LASTLY, INTEREST INCOME BASED ON CURRENT RATES, THAT'S ABOUT $3.3 MILLION AND SO THAT'S KIND OF THE CRYSTAL BALL.

BUT RIGHT NOW I'VE GOT A DEFINED STARTING POINT.

SO IF THINGS CHANGE THEN WE CAN CERTAINLY REVISIT THAT AS THE CIRCUMSTANCES.

SO A COUPLE OF THINGS, MR. JOHNSON BEFORE YOU MOVE ON TO THE NEXT SLIDE, AND THAT IS I KNOW ALL OF US TRUSTEES GET ALL THE TIME.

WELL, YEAH, SURE. YOU'VE REDUCED THE EFFECTIVE TAX RATE BY 21 PENNIES, BUT MY TAX BILL IS STILL MORE THAN IT WAS LAST YEAR.

IS THERE A REASON FOR THAT? YEAH BECAUSE YEAH THE VALUATIONS GO UP.

THE TAX RATE COMES DOWN. SO OUR PROPERTY VALUES ARE GOING UP AND THAT'S A RESULT OF THE TAXES BEING INCREASED NOT OUR EFFECTIVE TAX RATE.

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OUR FUNDING FORMULA IS BASED ON A BASIC ALLOTMENT OF $6,160.

THAT HAS BEEN CONSTANT SINCE 2019 AND EVEN THOUGH TO YOUR POINT EARLIER WE SEE AN INSURMOUNTABLE INFLATION GROWTH IN UTILITIES INSURANCE, YOU ALL HAVE DONE WELL TO TAKE CARE OF THE EMPLOYEES.

THAT 61 60 HASN'T CHANGED AND SO WE DON'T GET ANY MORE MONEY.

WE CAN OUR TAX BASE CAN GROW AD NAUSEAM AND WE DON'T GET TO KEEP THAT MONEY BECAUSE THAT IS A FORMULA FUNDED SYSTEM THAT CAPS WHATEVER YOU GET.

YOU CAN GET, YOU KNOW, A COUPLE OF HUNDRED THOUSAND MORE.

YOU'RE STILL LIMITED TO EXACTLY WHAT THAT FORMULA OF 61, 60 TIMES THE NUMBER OF STUDENTS PLUS THE WEIGHTED FUNDING IN TIER TWO.

SO THANK YOU.

MENTIONED YOU MENTIONED THE WEIGHT AND THAT'S IT'S YOU KNOW YOU LOOK AT SOCIAL MEDIA AND THEY'RE LIKE WELL YOU KNOW NO WAY CAM.

YOU'RE YOU'RE TELLING US 6160 IS THE BASIC ALLOTMENT.

BUT YOU KNOW KELLER'S OUT THERE CLAIMING 14,000 PER STUDENT AND IN FACT, OUR WEIGHTED AVERAGE DAILY ATTENDANCE RATE IS ABOUT 8300 PER STUDENT OR SOMETHING LIKE THAT WHEN WE INCLUDE THE TIFF.

YEAH, BUT THE REASON WHY WE NEED THE BASIC ALLOTMENT, THE 6160 RACE IS SO THAT 8300 ALSO CAN RAISE.

IS THAT CORRECT? CORRECT.

OKAY. SO YOU HAVE KELLER OUT THERE, KELLER ISD, WHO'S OPERATING AT $14,000 A STUDENT, AND WE'RE OPERATING AT $8,300 A STUDENT, WHICH, CORRECT ME IF I'M WRONG, BUT WE'RE THE FOURTH LOWEST OUT OF 1200 SCHOOL DISTRICTS IN THE STATE OF TEXAS IN TERMS OF MONEY PER PUPIL.

IF YOU PULLED THE RAW DATA AND IT'S AVAILABLE ON TEA'S WEBSITE, THEIR STATE FUNDING WEBSITE, IF YOU PULLED OUT THE RAW DATA FOR 23-24, 22-23, WHICH IS OUR LAST AUDITED YEAR, WE ARE BOTTOM. NOW.

I ADD BACK SOME OF THE CHANGES FROM THE TIF, AND I DON'T KNOW EXACTLY WHO ELSE GOT THE TIF, BUT WE ARE LOWEST IN THE STATE OF TEXAS BECAUSE OF THE LOW TIER TWO PENNIES AND THE LOWEST WATER TO ADA RATIO.

WE GET THE LEAST AMOUNT OF WEIGHTED FUNDING IN THE STATE OF TEXAS AND THE COMBINATION OF THOSE TWO HAS US AT ABOUT 83 TO $8500.

BUT IT IS THE BOTTOM.

IT IS THE BOTTOM AND SO KELLER ISD, FOR INSTANCE, HAS GOT A HIGH CONCENTRATION OF SOCIOECONOMIC ECONOMICALLY DISADVANTAGED.

THEY GET, GOSH, ANYWHERE FROM ABOUT 1300 TO $2300 MORE PER STUDENT AND YES, THAT DOES SERVICE THOSE STUDENTS.

BUT THERE'S AN INDIRECT COST REVENUE THAT CONTRIBUTES TO THE REST OF THE OPERATIONS OF THE DISTRICT WITHIN THOSE CALLED INDIRECT COST REVENUE, DIRECT EXPENDITURES, 55% INDIRECT COST. SO THAT BENEFITS THEM FROM AN OPERATIONAL STANDPOINT, WE DON'T GET THAT ADVANTAGE.

WE DON'T GET THAT INDIRECT COST REVENUE BECAUSE OF THAT.

RIGHT AND SO LET'S GO ON TO TRANSPORTATION.

SO EVEN THOUGH WE HAVE RAISED THE AMOUNT OF COST PER STUDENT AND FAMILY IN TRANSPORTATION, HOW MUCH ARE WE STILL LOSING? ARE WE STILL LOSING SOMEWHERE JUST A LITTLE BIT LESS THAN $1 MILLION.

SO WE'RE SUBSIDIZING FAMILIES IN SOUTHLAKE TO TRANSPORT THEIR CHILDREN TO SCHOOL.

AND DO WE HAVE TO DO THAT? UNDER STATE STATUTE? YOU DO NOT HAVE TO DO. WE DON'T HAVE TO DO THAT.

SO WE'RE LOSING $1 MILLION ON THAT EVERY YEAR TO SUBSIDIZE THAT WE CAN'T AFFORD.

OKAY. THANK YOU.

THANK YOU.

SOME OF THE COST SAVING MEASURES WE WERE ABLE TO DO AND DOCTOR SMOLSKIS, I THINK, BEGAN THESE CONVERSATIONS IN, IN FEBRUARY.

WE REDUCED SOME OF THE ELEMENTARY STAFFING.

WE'RE REDUCING IN ENROLLMENT.

WE'VE DECREASED OUR ENROLLMENT SOME AND SO TO KEEP OUR POSITIONS RELATIVE AND RIGHT SIZE RELATIVE TO THE NUMBER OF STUDENTS THEY SERVED, WE'RE ABLE TO, BY ATTRITION NOT REHIRE TEN OF THE POSITIONS.

SO 758,000 ON THAT SECONDARY STAFFING, SAME THING.

I THINK THERE WAS A PLAN TO DECREASE, ACTUALLY ABOUT 13.

BUT SINCE WE DID NOT LOSE THOSE BY ATTRITION, WE DID NOT ELIMINATE THOSE PEOPLE AND THOSE POSITIONS AND SO RIGHT NOW WE'RE AT ABOUT 1.8 MILLION IN SAVINGS.

SO THAT WAS WHAT WE HAD PRESENTED EARLY ON AND ARE STAYING TRUE TO THAT.

SOME OF THE COMPENSATION INCREASES.

THE LARGEST CATEGORY OBVIOUSLY IS TEACHERS.

THAT'S THE BULK OF OUR EMPLOYEES AND THEY ARE GETTING 1.1 MILLION ADMINISTRATIVE PROFESSIONAL, 395 CLERICAL AND PROFESSIONAL PARAPROFESSIONALS, AUXILIARY, 131 225, RESPECTIVELY, A TOTAL OF 1.8 MILLION THAT GETS EVERYBODY IN THE DISTRICT WITHIN 95% OF MARKET, AND IT GIVES A 3% OF MIDPOINT RAISE AND MR. JOHNSON JUST WE WENT THROUGH AND IT WAS APPROVED UNANIMOUSLY.

THE ONE TIME SUPPLEMENT PAY.

THAT'S AN ADDITION TO THIS, RIGHT? THAT'S ABSOLUTELY CORRECT AND SO THIS IS JUST KIND OF COMPARING LAST YEAR LAST MEETING TO THIS MEETING AND SO YOU SEE THE CHANGES IN THE REVENUE 6.7 MILLION.

THAT'S BECAUSE OUR VALUES NOW THAT I GOT VALUES I USED THE REVISED VALUES.

SO THAT INCREASED OUR REVENUE.

IT ALSO INCREASED THE RECAPTURE.

SO REALLY NOT A LOT OF BENEFIT OUT OF THAT OTHER RESOURCES IS A GATSBY GOVERNMENTAL ACCOUNTING STANDARDS BOARD REQUIRED ADDITION.

[00:30:05]

OBVIOUSLY WHAT STANDS OUT TO THIS IS THE PROPERTY SALE OTHER OF $8.5 MILLION.

IT'S A LITTLE BIT DIFFERENT THAN IT WAS ON THE LAST SLIDE.

BUT IT'S ABOUT $8.5 MILLION.

WHEN I COME TO YOU AT THE NEXT MEETING WE'RE REQUIRED TO ADOPT.

THE BOARD IS REQUIRED TO ADOPT A BUDGET BY FUNCTION, BY FUNCTIONAL CATEGORY, WHICH SAYS SPECIFICALLY WHERE THOSE DOLLARS ARE GOING TO BE SPENT AND SO WHAT I DID, JUST AS A BASIS OF COMPARISON ADOPTED 2023 REVISED 2024, WE HAD SOME REVISIONS.

IN OTHER WORDS, WE HAD TWO BUDGET AMENDMENTS OVER THE COURSE OF THE YEAR.

ONE WAS FOR SOME TECHNOLOGY, $880,000.

TO YOUR POINT. TRUSTEE YEAGER, WE ALSO DID A ONE TIME PAYMENT IN FEBRUARY AND SO THAT WAS $721,000.

THERE WAS A $1.8 MILLION.

IT WAS FOR DEVICES AND SOME OTHER TECHNOLOGY EXPENDITURES.

SO THAT WAS 1.8 MILLION AND SO WHERE WE ADOPTED THE BALANCED BUDGET, WE ADDED THOSE THINGS.

I DIDN'T CHANGE THE REVENUE ON THAT AND SO WE'RE AT A DEFICIT OF ABOUT 3.7.

IF WE LOOK AT THE PROPOSED BY FUNCTION, WE'RE LOOKING AT ABOUT A $13 MILLION INCREASE FROM OUR ORIGINALLY ADOPTED BUDGET IN THE BULK OF THAT REALLY IS GOING TO BE THE RECAPTURE OF ABOUT $6.4 MILLION, THE TIF PAYMENT.

WE HAVE TO MAKE A PAYMENT TO THE CITY OF SOUTHLAKE FOR THE TIF PROPERTY.

THAT'S ABOUT THAT'S UP ABOUT 750,000.

DATA PROCESSING IS ANOTHER LARGE ONE AND SO WE'RE PAYING FOR THINGS OUT OF NO THAT WE HAVE NOT HISTORICALLY PAID OUT OF NO AND THAT'S ABOUT $2.5 MILLION AS COMPARED TO THE 2324 ORIGINAL ADOPTED BUDGET.

FACILITIES IS THE NEXT LARGEST.

IT'S JUST A SHADE UNDER A MILLION AND SO WE DID THE FACILITY ASSESSMENT.

WE'VE GOT SOME REALLY BIG NEEDS THAT WE'RE EXPERIENCING WITH OUR FACILITIES RIGHT NOW.

AFTER THAT FACILITY ASSESSMENT, WE GOT THAT MID-YEAR.

BUT IT BECAME APPARENT AND I THINK WE AMENDED ACTUALLY FOR THAT IN THE JANUARY TIME FRAME THE NEEDS WERE JUST OUTWEIGHING THE RESOURCES THAT WE HAD ALLOCATED TO DO THAT AND THEN TRANSPORTATION ALSO HAD A SUBSTANTIALLY LARGE THAT SAID, WE'RE AT ABOUT AN $8.5 MILLION.

I'VE PUT THAT IN OTHER PROPERTY SALES SO THAT THE BOARD CAN SEE, AND WE'RE ALL VERY TRANSPARENT ON WHAT WE'RE USING TO BALANCE THE BUDGET.

HAPPY TO ANSWER ANY QUESTIONS ANYBODY MIGHT HAVE ON THIS PAGE.

OKAY. WE'LL TALK A LITTLE BIT ABOUT THE 24-25 DEBT SERVICE BUDGET AND SO WITH THOSE PRELIMINARY VALUES, I'VE GONE AHEAD AND USED THOSE VALUES TO CALCULATE THE REVENUE AND THE BUDGET FOR THE INTEREST AND SINKING OR DEBT SERVICE FUND, AS IT IS COMMONLY REFERRED TO BUDGET AT THE 33 PENNIES.

IT'S ABOUT $43 MILLION IN TAX REVENUE WITH OUR CURRENT VALUES AND I WILL REFINE THOSE ONCE WE GET OUR FINAL CERTIFIED VALUES STATE AID FOR HOMESTEAD EXEMPTIONS AND SO WHAT HAPPENS IS OVER THE COURSE OF LEGISLATION, WE HAVE ISSUED DEBT AND THEY CHANGE THE, YOU KNOW, THE HOMESTEAD EXEMPTION.

I THINK IT WENT FROM 15 TO 25 TO 40 TO 100 AND SO WHAT THEY'RE DOING IS THEY'RE MAKING US WHOLE FOR REDUCING THE TAX BASE THAT WE HAD ANTICIPATED IN ISSUING THAT DEBT AND THAT'S ABOUT A MILLION FOR PENALTIES AND INTEREST AND INTEREST INCOME OF ABOUT 1.1 MILLION.

THE DEBT OBLIGATIONS ARE 24.9 MILLION.

SO 20,000 PLUS $20,000 IN FEES FOR TOTAL EXPENDITURES OF 24.9 MILLION.

THE DEBT DEFEASANCE WILL BE DETERMINED ON FINAL VALUES IN JULY.

SO WE'LL COME BACK.

I'LL COME BACK AND EXCUSE ME AND TALK A LITTLE BIT ABOUT WHAT OUR FINAL BUDGET LOOKS LIKE, BECAUSE THIS IS DEPENDENT ON FINAL VALUES.

WHERE ARE THE OTHER ONE REALLY ISN'T? M&O. BECAUSE AS THE TAXES GO UP, SO DOES RECAPTURE AS TAXES DON'T GO UP OR TAX REVENUE DOESN'T GO UP, RECAPTURE DOESN'T.

THIS ONE IS NOT THAT SAME RELATIONSHIP.

SO WHATEVER WE GET IS FINAL CERTIFIED VALUES WILL DEFINITELY IMPACT THE BUDGET.

AND SO LET'S MR. JOHNSON WE GO BACK TO THAT. LET'S STAY ON THIS SLIDE JUST FOR A SECOND.

BECAUSE I THINK IT'S IMPORTANT THAT THE 33 PENNIES THAT WE CHARGED FOR THE TAX RATE, WE REALLY HAVEN'T CHANGED THAT IN IN MANY YEARS.

CORRECT AND SO THAT GIVES US A REVENUE OF ABOUT $43 MILLION A YEAR AND OUR DEBT PAYMENT ANNUALLY IS APPROXIMATELY 25 MILLION.

SO TALK TO US ABOUT WHAT THE BALANCE OF THAT MONEY THAT WE HAVE, WHAT CAN THAT BE SPENT ON THAT CAN ONLY BE SPENT ON DEBT SERVICE? OKAY.

THIS IS SPECIFIC TO DEBT ONLY.

OKAY AND SO WHAT THIS BOARD VOTED TO DO WAS TO TRY TO PAY OFF OUR DEBT THAT WE HAVE EARLY.

CORRECT, SO THAT WE CAN CONTINUE TO DECREASE OUR DEBT.

SO EVENTUALLY WE COULD VOTE TO DECREASE THAT $0.33 WAY DOWN, EFFECTIVELY GIVING OUR COMMUNITY ANOTHER PROPERTY TAX BREAK.

[00:35:08]

RIGHT? CORRECT. ABSOLUTELY AND STILL CONTINUE WITH DEFEASANCE OF BONDS.

CORRECT. PAYING OFF DEBT EARLY AND THE EFFECTIVE TAX RATE STAYS THE SAME.

CORRECT? OKAY.

THE BOARD DEFINITELY HAS THAT OPTION.

OKAY AND SO ON THE NEXT PAGE I JUST PUT INTO KIND OF NUMBERS FORM THE DEBT SERVICE REVENUE, 45.6 MILLION THE ANNUAL PRINCIPAL PAYMENTS 14 MILLION.

250 ANNUAL INTEREST PAYMENTS OF TEN 721 LEAVES A NET OF ABOUT $20.5 MILLION AT THAT RATE, AT THAT PROPERTY VALUE, OBVIOUSLY SUBJECT TO CHANGE. LET ME JUMP FORWARD ON A SLIDE REAL QUICK TO THIS ONE.

SO AS WE TALK ABOUT NEXT YEAR, LET'S TALK ABOUT THIS YEAR AND REFLECT ON THIS YEAR FOR JUST A QUICK MINUTE AND SO LAST FALL THE BOARD APPROVED A DEBT DEFEASANCE PLAN OF ABOUT.

WELL, THERE WASN'T A NUMBER TIED TO THE DEBT DEFEASANCE IT'S WITHIN WHATEVER OUR BUDGET WOULD ALLOW AND SO WHAT ULTIMATELY IS GOING TO HAPPEN IS WE'RE GOING TO DEFEASE DEBT AND THE AMOUNT OF 19,500,000 THAT IS ABOVE THE NORMAL AMORTIZATION PAYMENT AND I WROTE DOWN WHAT WE'VE DONE WITH DEBT SINCE 2021 AND 2021 PRINCIPAL WAS 329 MILLION.

TOTAL DEBT, WHICH INCLUDES INTEREST IS 457 MILLION.

AFTER THE PAYMENT YOU'RE LOOKING AT NOW IN FISCAL YEAR 2024, WHICH IS UNAUDITED, THE OTHER YEAR IS AUDITED.

WE WILL HAVE GONE DOWN PRINCIPAL AND INTEREST BY ALMOST $100 MILLION IN THREE YEARS.

SO WE'VE SAVED THE DISTRICT BY DOING DEBT DEFEASANCE $100 MILLION IN THREE YEARS.

WE PAID OFF PRINCIPAL AND INTEREST ALONE.

CAN YOU REPEAT THAT NUMBER, PLEASE? YEAH, IT'S $100 MILLION IN THREE YEARS DUE TO GOOD FISCAL RESPONSIBILITY BY THIS BOARD, CORRECT? AHEAD OF SCHEDULE. YES AND SO WHAT WE'VE DONE HERE AND ON THE NEXT SLIDE, THESE ARE STILL THE CALLABLE BONDS AND I'M WORKING WITH OUR FINANCIAL ADVISOR AND HOW WE THEN MOVE FORWARD WITH OTHER DEBT AND SO THIS THIS YEAR ON THE NET SAVINGS WHICH IS OBVIOUSLY INTEREST, IT'S ABOUT $7.1 MILLION.

WE'RE GOING TO FINISH THAT TRANSACTION THIS MONTH AND SO AS WE REFLECT BACK ON WHAT WE'VE GOT AVAILABLE AND THE FACT THAT WE'VE GOT DEBT THAT CAN BE CALLED, WE'LL CONTINUE TO LOOK AT OPTIONS TO.

SO WHERE'S OUR NEXT WHAT'S THE NEXT BOND.

THAT'S SO WE'VE GOT THREE THAT'S CURRENTLY CALLABLE AND THAT 36.9 IS THE AMOUNT THAT WE WOULD HAVE TO PAY TO PAY THAT DEBT OFF.

CORRECT? YEAH.

WHICH ONE? NOW, THE FIRST ONE THOSE ARE THE BABS OR THAT'S ARE THOSE SUBJECT TO THOSE? THOSE ARE WHAT WE GET IN OPERATING.

WE GET AN OPERATING SUBSIDY ON THOSE.

OKAY AND HOW MUCH IS THAT APPROXIMATELY? IT'S IT'S ABOUT 1.7, $1.8 MILLION A YEAR.

SO THAT'S M&O REVENUE AS LONG AS WE PAY OUR DEBT SERVICE ON THOSE THREE BONDS, WE RECEIVE OVER $1 MILLION A YEAR.

CORRECT. IN REVENUE.

RIGHT. THE BUILD AMERICA BONDS.

WE, YEAH.

OKAY. AND SO WE'LL, I'LL BRING BACK A LITTLE BIT MORE INFORMATION AT THE NEXT ONE.

I JUST WANTED TO HIGHLIGHT THE FACT THAT WE'VE REALLY REDUCED DEBT.

AND RIGHT NOW, BASED ON THE PRELIMINARY VALUES, IT'S ABOUT $20.5 MILLION IN AVAILABLE CAPACITY TO EITHER REDUCE THE TAX RATE OR, TO YOUR POINT, CONTINUE TO RATE TO RETIRE THE DEBT EARLY, WHICH WOULD SAVE MILLIONS OF DOLLARS OVER THE COURSE OF THAT AMORTIZATION.

RIGHT. THANK YOU AND SO ONE OF THE OTHER THINGS THAT'S REQUIRED BY THE TEXT EDUCATION.

WE ANNUALLY WE GET A FIRST RATING WHICH IS FINANCIAL INTEGRITY RATING SYSTEM OF TEXAS.

THE BOARD DISCUSSION REALLY KIND OF STEMS FROM PRE HOUSE BILL THREE AND THE 86TH LEGISLATIVE SESSION, WHERE THEY FUNDAMENTALLY CHANGED THE FUNDING FORMULA. HISTORICALLY DISTRICTS TEA USED THE PRIOR YEAR VALUES.

SO THE DIFFERENCE BETWEEN THE CURRENT YEAR VALUE AND A PRIOR YEAR VALUE IN A GROWING ENVIRONMENT GAVE YOU ADDITIONAL REVENUE ABOVE ON YOUR TIER ONE ALLOTMENT AND SO THAT WAS REFERRED TO AS LAG FUNDING AND FOR SOME IT WAS REALLY SUBSTANTIAL AND VERY BENEFICIAL.

GOING TO CURRENT YEAR VALUES ELIMINATED THAT BENEFIT.

BUT THEY ALSO WANTED TO TALK ABOUT IN THE BOARD DISCUSSION SOME OF THE OTHER FINANCIAL CHALLENGES.

I THINK SOME DISTRICTS ARE TALKING ABOUT THEIR REVENUE, SCHOOL, HEALTH AND RELATED SERVICES.

[00:40:05]

I KNOW SOME DISTRICTS, SOME OF THE LARGER DISTRICTS ARE LOSING MILLIONS.

WE'RE LOSING SOMEWHERE BETWEEN 2 AND $300,000.

WE'RE ALSO LOSING SOME OF THE ESSER FUNDS.

FORTUNATELY, OUR DISTRICT DID NOT BECOME DEPENDENT ON THOSE FEDERAL FUNDS AND SO WE REALLY DON'T HAVE SOME OF THE HEARTBURN THAT SOME OF THE OTHER DISTRICTS HAVE, WHICH ARE CUTTING PROGRAMS. AS A RESULT, WE USE THAT MONEY FOR ITS INTENDED PURPOSES, SOME LEARNING LOSS, SOME SUPPLEMENTAL MATERIALS TO TRY TO BOOST THE STUDENTS.

BUT WE DID NOT BECOME DEPENDENT ON THOSE.

SO I JUST WANTED TO COVER THAT'S A CHECK THE BOX KIND OF DISCUSSION.

BUT I KNOW THAT THIS BOARD IS VERY WELL VERSED IN FUNDING THE CHANGES IN THE FUNDING AND SO I'LL LEAVE THAT UNLESS ANYBODY HAS ANY QUESTIONS.

SO NEXT STEPS, BUDGET ADOPTION WILL BE ON JUNE 24TH.

THE NEW FISCAL YEAR BEGINS ON JULY 1ST.

THE CERTIFIED VALUES THAT I REFERRED TO EARLIER WILL COME OUT ON JULY 25TH.

WE'LL THEN TAKE THAT INFORMATION, SUBMIT IT TO THE TEXAS EDUCATION AGENCY.

THEY WILL APPROVE THE MAXIMUM COMPRESS RATE, WHICH IS THE TIER ONE TAX RATE.

THEY'LL GET THAT BACK TO US IN EARLY AUGUST AND THEN I WILL GO THROUGH AND CALCULATE THE TRUTH AND TAXATION PUBLICATION EFFECTIVE TAX RATE, NO NEW REVENUE RATES.

POST THAT AND ADOPT THE TAX RATE.

THIS IS I'M SORRY I DID THIS ON FRIDAY.

I THINK WE'VE CHANGED THAT BOARD MEETING IN AUGUST, BUT BEFORE I HAVE NOT HAD A CHANCE TO CHANGE THIS.

BUT WE'RE ALL AWARE THAT THE CHANGE IN THAT MEETING AND THAT WILL COMPLETE THE BUDGET AND TAX RATE.

SO CAN YOU MOVE BACK TO THE I JUST WANT TO MAKE A QUICK POINT ON THE 24-25 BUDGET.

THIS ONE. YES.

THAT ONE. SO I THINK IT'S WISE TO POINT OUT THAT YOU KNOW, THIS BOARD HAS ELECTED TO SELL PROPERTY IN ORDER FOR US TO BE ABLE TO KEEP OUR PROGRAMS AND EVERYTHING UNCHANGED.

WHEREAS OTHER ISDS AROUND THE STATE DO NOT HAVE THAT LUXURY, AND THEY HAVE BASED TEACHER SALARY INCREASES ON ESSER FUNDS, WHICH THEY DON'T HAVE ANY MORE, AND MADE SOME OTHER FISCALLY IRRESPONSIBLE DECISIONS, WHICH NOW THEY ARE OVER OR THEY'RE UNDER IN THEIR BUDGET AND THEY'RE HAVING TO CLOSE CAMPUSES, THEY'RE HAVING TO TAKE DRASTIC MEASURES TO, TO BALANCE THEIR BUDGETS, WHEREAS WE'VE MADE VERY GOOD FISCAL DECISIONS OVER THE PAST THREE YEARS. HOWEVER, THE COMMUNITY NEEDS TO UNDERSTAND THAT WHILE THE THERE'S A ZERO AT THE BOTTOM OF THIS PAGE, UP IN THE TOP HALF OF THE PAGE OR THE TOP THIRD OF THE PAGE WHEN IT SAYS OTHER PROPERTY SALE, WE'RE BALANCING THIS BUDGET BASED ON PROCEEDS FROM THE SALE OF PROPERTY, WHICH IS 8.5 MILLION.

SO IF YOU TAKE THAT $8.5 MILLION OUT, THAT'S HOW MUCH, REALLY WE'RE RUNNING A DEFICIT.

IS THAT CORRECT? THAT IS CORRECT AND THIS CAN'T HAPPEN.

I MEAN, WE ONLY HAVE WE SOLD THE PROPERTY FOR 36 MILLION, AND THAT'S ONLY GOING TO LAST SO LONG.

SO AS A BOARD AND WE MADE THIS DECISION.

SO AS WE'RE NOT MAKING THESE DRASTIC CUTS THAT OUR NEIGHBORS ARE MAKING AND WE ARE JUST LIMPING ALONG UNTIL THE 89TH LEGISLATIVE SESSION THAT CROSS OUR FINGERS.

WE HOPE THAT THEY RAISE THAT BASIC ALLOTMENT AND GIVE PUBLIC SCHOOL FINANCE THE ATTENTION THAT IT SO DESPERATELY NEEDS, BECAUSE I THINK I SAW ONE SLIDE OF YOURS A WHILE BACK, MR. JOHNSON, THAT SAID THAT BY 2026, 2027, WE'RE GOING TO BE TOTALLY UNDER.

IF WE KEEP THINGS UNCHANGED HERE IN THIS DISTRICT, THE OUT YEARS ARE HARDER TO PREDICT.

BUT YES, WE HAD IN A BAD PLACE REALLY QUICK.

THE OTHER THING THAT I WANT TO BRING UP, AND I'M GLAD THAT YOU BROUGHT UP THE PROPERTY SELLING THOSE PROCEEDS.

OUR DISTRICT HAS GOT A GOOD FUND BALANCE.

RIGHT, AND SO I KNOW SOME DISTRICTS THAT ARE BELOW A MONTH IN FUND BALANCE AND FUND BALANCE IS A MEASURE OF HEALTH AND SO WE'VE GOT I THINK 37% FUND BALANCE IN THE RECOMMENDED IS 25%.

THERE ARE THOSE THAT HAVE 8% AND SO THE COMBINATION OF THE TWO IS GIVEN THIS DISTRICT AND THIS BOARD OF TRUSTEES OPTIONS THAT ARE NOT AVAILED TO A LOT OF DISTRICTS.

RIGHT AND SO THAT'S WHY WE COULD KIND OF LIMP ALONG FOR THE NEXT YEAR OR SO UNTIL THE LEGISLATIVE SESSION DOES SOMETHING AND THEN IF THEY DON'T, THEN THAT'S WHY WE'RE FORMING A YOU WANT TO TALK ABOUT THAT JUST FOR A SECOND AND A COMMITTEE THAT IS GOING TO COME UP WITH PLAN B OR PLAN C OR PLAN D OR WHATEVER THAT IS.

YES AND IT'S GOING TO BE THE BUDGET AND I THINK I DON'T KNOW THAT WE'VE FORMALLY NAMED IT, BUT IT'S GOING TO BE BASICALLY A BUDGET REDUCTION ADVISORY COMMITTEE.

THERE ARE A LOT OF THOSE TYPE OF COMMITTEES THAT ARE HAPPENING THROUGHOUT THE STATE, AND WHAT IT GIVES IS AMPLE TIME AND RUNWAY TO LOOK AT THE WHOLE LAY OF THE LAND AND IF YOU WERE GOING TO CUT, THAT IS THE TIME THAT PEOPLE CAN PROVIDE INPUT AND LOOK AT ALL THE PROGRAMS AND IN THE EVENT THAT THE LEGISLATURE DOESN'T DO ANYTHING, AN ENORMOUS AMOUNT OF

[00:45:01]

SO IT'S REALLY COMING UP WITH A LONG TERM FINANCIAL PLAN BY BY INVOLVING THE COMMUNITY AND HELPING THEM KIND OF SEE HOW WE OPERATE AND WHERE WE SPEND THE MONEY AND THAT DOESN'T EVEN MENTION, I MEAN, YOU DIDN'T REALLY MENTION THIS, BUT OUR FINANCIAL ANALYSIS OF OUR CAPITAL NEEDS SHORT MID AND LONG ARE ABOUT $220 MILLION, WITH THE 1 TO 5 BEING ABOUT 54 OR SOMETHING LIKE THAT.

MILLION DOLLARS AND WE DON'T HAVE ANY MORE LIKE YOU KNOW, WE DON'T HAVE ANY BOND PROCEEDS LEFT FOR CAPITAL IMPROVEMENTS.

A SMALL AMOUNT OF BOND PROCEEDS, SMALL AMOUNTS.

SO WE'RE GOING TO HAVE TO TRY TO FIGURE OUT HOW TO COME UP WITH THAT REVENUE IN ORDER TO FIX THE LEAKY ROOFS AND THE INFRASTRUCTURE THAT'S AGING ACROSS OUR DISTRICT.

DISTRICT. CORRECT. OKAY.

THAT'LL DEFINITELY BE A PART OF THIS PROCESS THIS SUMMER.

RIGHT AND YOU DIDN'T MENTION AND I DON'T KNOW, I'LL JUST GO AHEAD AND BRING IT UP.

BUT YOU KNOW, ALL THESE DISTRICTS, A LOT OF DISTRICTS AROUND THE STATE ARE PASSING THESE BILLION DOLLAR BOND INITIATIVES AND PUTTING THEIR COMMUNITIES IN DEBT FOR 40 TO 50 YEARS AND WE'RE NOT WE'RE SIMPLY NOT GOING TO DO THAT.

SO YOU HAD A GREAT IDEA AND THAT IS LOOKING AT A SHORT TERM BOND, A SEVEN YEAR TYPE OF BOND WHERE IT WOULD BE A SMALLER AMOUNT THAT WE COULD GO TARGET. EXACTLY WHAT THE CAPITAL NEEDS ARE FROM OUR FACILITIES, STUDY AND BE ABLE TO PAY FROM THAT FUND AND PAY IT OFF.

CORRECT. IN SEVEN YEARS VERSUS PUTTING OUR COMMUNITY IN DEBT FOR 40 OR 50 YEARS.

CORRECT AND THAT'S ONE OF THE SCENARIOS THAT I POSED TO OUR FINANCIAL ADVISORS AND THAT WAY YOU DO PAY SOME INTEREST, BUT YOU DON'T PAY 25.

PLUS YEARS OF INTEREST AND SO THOSE ARE OPTIONS AND SO YEAH WE'LL CONTINUE TO EVALUATE ALL OPTIONS THAT WE HAVE ON CAPITAL NEEDS.

THANK YOU. MR. PRESIDENT ON THAT POINT, CAN YOU GIVE US AN EXAMPLE OF WHAT WOULD BE A SHORT TERM BOND LIKE THE SIZE AND WHAT THE INTEREST WOULD BE? YOU KNOW, I PROBABLY COULD BRING THAT BACK TO THE NEXT BUDGET MEETING, IF YOU'D LIKE.

I DO HAVE SOME SCENARIOS THAT I ASKED OUR FINANCIAL ADVISOR TO LOOK AT AND SO THERE YOU CAN BORROW NOT YOU CAN BORROW A PRETTY SUBSTANTIAL AMOUNT BECAUSE YOU'RE NOT GOING TO ISSUE THEM ALL AT ONCE BECAUSE IT'S REDOING.

SO YOU WOULDN'T BORROW THE FULL LOT OR ISSUE THE FULL LOT UP FRONT.

YOU'D DO IT AS NEEDED AND THAT WAY YOU WOULDN'T HAVE THE INTEREST FOR THE FULL SEVEN YEARS ON THE WHOLE AMOUNT, BUT THE AMOUNTS THAT YOU NEED AND SO I CAN DEFINITELY BRING THAT BACK TO YOU. BUT I HAVE LOOKED INTO THAT MR. JOHNSON DOES THAT.

I ASSUME THAT REQUIRES A COMMUNITY VOTE OR IS THAT SOMETHING WITHIN OUR AUTHORITY? SO WE WOULD HAVE TO GO TO THE COMMUNITY EVEN ON THAT.

CORRECT? OKAY. YES.

THANK YOU. MR. JOHNSON, I LOVE THE USE OF A HIGHLIGHTER AND IF SOMEBODY IN OUR COMMUNITY IS FOLLOWING ALONG ON THIS BUDGET THEY MIGHT HIGHLIGHT A COUPLE THINGS IN EXPENDITURES THAT HAVE MARKEDLY CHANGED.

OKAY AND WHEN I'M LOOKING AT THIS, BECAUSE IF YOU'RE JUST LOOKING AT A BOTTOM LINE OF, YOU KNOW, 118 MILLION IN TERMS OF EXPENDITURES TO 122 TO 131, RIGHT, BIG JUMP TO THE NAKED EYE, THEY MIGHT SAY, WHERE'S THE FISCAL RESPONSIBILITY? RIGHT. IT LOOKS LIKE THE EXPENDITURES ARE REALLY PICKED UP.

MY HIGHLIGHTER, IF YOU WOULD, IS LOOKING AT THINGS LIKE CHAPTER 49 PAYMENTS RECAPTURE.

SO AS MUCH AS THE MONEY COMES IN, IT LITERALLY MAKES OUR EXPENDITURES LOOK LIKE THEY'VE RISEN DRAMATICALLY.

CORRECT. YOU KNOW A COUPLE OTHER ONES YOU MENTIONED TRANSPORTATION.

IS THERE ANYTHING ELSE HERE THAT MY HIGHLIGHTER OR FOR THE PUBLIC MIGHT WE WANT TO LOOK AT AND SAY THESE ARE EXPENDITURES THAT WENT UP BECAUSE SOME OF THEM REALLY KIND OF DON'T SERVE TO HELP UNDERSTAND.

RIGHT. NO. LET ME GO BACK THROUGH THAT.

SO THE RECAPTURE IS THE HIGHEST AND THAT $6.4 MILLION AND THAT'S SIMPLY A RESULT OR A BYPRODUCT OF THE FORMULA FUNDING THAT CAPS WHAT WE CAN KEEP BASED ON THE STUDENTS.

WE'VE GOT THAT INCREASED 6.4 MILLION THE TIF PAYMENT AND WE GET WE'RE IN AN ARRANGEMENT WITH THE CITY OF SOUTHLAKE.

IT'S VERY FINANCIALLY BENEFICIAL, BUT WE HAVE TO PAY TAXES TO THE CITY OF SOUTHLAKE AT THE 2005 ADOPTED RATE OF $1.50 PER $100 OF VALUATION, THAT PAYMENT INCREASED 748,000. NOW, BOTTOM LINE, IT'S ALL BENEFICIAL FOR US.

BUT THAT ONE SINGLE PAYMENT IS $750,000 HIGHER.

RIGHT NOW, DATA PROCESSING, WHICH IS FUNCTION 53, WHICH ARE SOME OF THE THINGS WE'VE HISTORICALLY BOUGHT OUT OF BONDS INFRASTRUCTURE.

THAT'S $2.5 MILLION AND SO THAT ONE FACILITIES AND OF COURSE, TO PRESIDENT BRYAN'S POINT, WE HAD THE FACILITY ASSESSMENT RESULTS. GOSH, I THINK THAT WAS IN MARCH.

BUT EVEN IN JANUARY, SOME OF THE NEEDS WERE IT WAS SO APPARENT AT THAT POINT, WE AMENDED THE BUDGET FOR $880,000.

[00:50:01]

TRANSPORTATION IS ABOUT 867, ABOUT 860,000.

THESE WERE COST THAT ARE GOING UP WITH EVERYBODY IN EVERY SECTOR OF THE ECONOMY.

RIGHT. EVERYBODY'S STILL PAYING ALL THESE ADDITIONAL THINGS THAT WHAT I JUST ADDED UP IS $11.4 MILLION THOSE ITEMS AND THEY'RE REALLY NOT WHAT I WOULD CALL BUDGET AD'S FROM THE STANDPOINT THAT WE'RE ADDING PROGRAMS. THOSE ARE TO SERVICE OUR EXISTING NEEDS.

IT'S JUST FROM THE ADDITIONAL COST THAT WE'RE ALL EXPERIENCING ACROSS AND THAT'S JUST FROM LAST YEAR.

CORRECT? CORRECT. FROM THE ADOPTED BUDGET $5 MILLION INCREASE IN ONE YEAR AND THE STATE GIVES US NOTHING, NOTHING BUT UNFUNDED MANDATES, CORRECT? YEAH. THEY GIVE YOU YOU KNOW, I WAS AT A CONFERENCE IN SAN ANTONIO AND ONE OF THE LADIES THAT FORMERLY WORKED FOR TO AND IS A MEMBER OF TASBO, THE BUSINESS OFFICE GROUP TALKED A LITTLE BIT ABOUT THE LEGISLATIVE OUTLOOK AND JUST WAS NOT REALLY POSITIVE IN SPITE OF THE FACT THAT WE'VE GOT INSURMOUNTABLE INCREASES OF EXPENDITURES, INSURANCE, UTILITIES, EVERYTHING THAT WE'RE GOING TRYING TO TAKE CARE OF TEACHERS SO THAT, YOU KNOW, THEY CAN AFFORD TO CONTINUE TO LIVE.

IT'S A VERY CHALLENGING SITUATION.

MR. JOHNSON, BEFORE YOU MOVE OFF THIS SLIDE, AND YOU MIGHT HAVE TOUCHED ON IT, BUT I MISSED IT.

WHAT I SEE, THE FEDERAL REVENUE IS DECREASING AT LEAST INTO 24, 25.

CAN YOU JUST TELL US AGAIN WHY IT'S.

OH, THAT'S ESSER THAT.

NO, THAT'S NOT ESSER. THIS IS JUST GENERAL FUND.

SO TWO THINGS THAT ARE FEDERAL FUNDINGS ARE WE'VE GOT TO BUILD AMERICA BONDS, REBATES.

THOSE ARE THE OPERATIONAL REBATES FROM THE TAX TAXABLE DEBT THAT'S ISSUED.

THAT IS THAT FOLLOWS AN AMORTIZATION SCHEDULE.

IN OTHER WORDS, LIKE OUR INTEREST EXPENSE DECREASES EVERY YEAR.

SO DOES THE REBATE THAT COMES IN ON THAT.

THE OTHER PART OF THAT IS THE SCHOOL HEALTH AND RELATED SERVICES.

A 2011 AUDIT CAME OUT AND 2017, FOR WHATEVER REASON, IT TOOK THIS YEAR TO GET EVERYTHING FINALIZED ON THAT.

EVERY DISTRICT IN THE STATE OF TEXAS TOOK A BIG FINANCIAL LOSS ON THAT.

I THINK SOME OF THE NEIGHBORING DISTRICTS HAD SEVEN FIGURES.

OURS WAS ABOUT 300,000.

SO IT'S THE COMBINATION OF THE LOWERING AND THE BABS REBATE AND THE [INAUDIBLE] REVENUE WAS THE INTEREST THAT WE GOT.

THE NICE THING ABOUT THERE'S SEVERAL NICE THINGS ABOUT THIS PROPERTY THAT WE'VE SOLD TO HELP US WITH THIS, YOU KNOW, TEMPORARY BALANCING OF THE BUDGET.

ONE OF THEM IS THAT WE'RE NOT DIPPING INTO OUR FUND BALANCE.

THAT SAID.

RIGHT. WELL, WE WILL UNTIL WE GET CASH FLOW, BUT YES.

OKAY, THAT WOULD BOLSTER OUR FINANCIAL POSITION GREATLY.

OKAY AND WITH INTEREST RATES BEING WHERE THEY ARE, THAT'S A BENEFIT TO SAVERS.

OH, ABSOLUTELY. SO IS THAT INTEREST THAT WE'VE ACHIEVED AND GROWN.

IS THAT IN THE LOCAL REVENUE LINE AT THE.

OKAY. YES.

OKAY. THANK YOU, MR. JOHNSON. GREAT JOB.

THANK YOU. ALL RIGHT, LET'S MOVE ON TO ITEM EIGHT WHICH IS OUR DISCUSSION ACTION PORTION OF THE AGENDA.

WE'VE ACCOMPLISHED 8.1 AND 8.2.

LET'S MOVE TO 8.3.

BUDGET AMENDMENT 4-24 FOR 2023-2024 BUDGET.

[8. DISCUSSION / ACTION (Part 2 of 2)]

SORRY. IT'S OKAY.

SO TONIGHT I BRING TO YOU THE BUDGET AMENDMENT FOR THE $643,291, WHICH IS INCREASING REVENUE AND IT'S INCREASING EXPENDITURES.

THAT IS, SO THAT WE CAN HAVE IN THE BUDGET THE PAYMENT FOR THE ONE TIME PAYMENT.

THAT WAS FROM THE DONATION FROM CARROLL EDUCATION FOUNDATION TONIGHT.

MOVE TO APPROVE THE BUDGET AMENDMENT TO THE 2023 2024 BUDGET AS PRESENTED.

SECOND MOTION AND SECOND.

ALL IN FAVOR? MOTION CARRIES 6 TO 0.

THANK YOU, MR. JOHNSON.

STAY UP. REQUEST FOR QUALIFICATIONS FOR TECHNOLOGY CONSULTANT FOR.

OH, MR. SALAZAR.

OKAY. ALL RIGHT. WELL, SORRY, MR. JOHNSON. YEAH.

OKAY. ITEM 8.4, REQUEST FOR QUALIFICATIONS FOR TECHNOLOGY.

CONSULTANT FOR RELOCATION OF DATA CENTER.

YES, SIR. YES.

BOARD MEMBERS AS PART OF THE SALE OF THE ADMINISTRATION PROPERTY IT IS NECESSARY TO RELOCATE THE NETWORK OPERATIONS CENTER. CISD HAS ISSUED A REQUEST FOR QUALIFICATIONS TO SEVERAL TECHNOLOGY CONSULTANTS.

WE'VE RECEIVED THREE RESPONSES.

A COMMITTEE CONSISTING OF RANDY STEWART, HECTOR SARABIA AND MYSELF.

EVALUATED EACH RESPONSE TO ASSIGN A FIRM THAT SPECIALIZES IN DATA CENTERS SCORED THE HIGHEST OF THE THREE SUBMISSIONS TO THE SCENE SOLUTION HAS WORKED WITH THE DISTRICT IN THE PAST TO THE SCENE IS HIGHLY RECOMMENDED BY OTHER AREA DISTRICT CTOS AND THE ADMINISTRATION RECOMMENDS THE BOARD APPROVE THE NEGOTIATIONS OF SERVICES WITH TWO VOICE IN SOLUTIONS.

[00:55:04]

WHAT'S THE TURNAROUND? WE'VE GOT SOME ASSESSMENTS GOING ON WITH ANOTHER FIRM TO GET THOSE DATES AND TIMELINES.

OKAY. HAMMERED OUT. WE'LL HAVE TO BRING THAT INFORMATION BACK TO YOU OKAY.

ARE WE TALKING ABOUT SIX MONTHS.

ARE WE TALKING ABOUT TWO MONTHS.

DO YOU HAVE ANY IDEA UNTIL YOU THE MOST I'D SAY MAYBE 18 MONTHS.

OH, YEAH. THAT'LL WORK.

I THINK IT'S A LONG PROCESS.

ARE YOU TALKING ABOUT THE ACTUAL APPROVAL OF THE CONTRACT WITH THE GROUP? ARE YOU TALKING. NO, I'M TALKING ABOUT WHAT WE'RE CONTRACTING THEM FOR.

I MEAN, WHEN ARE THEY GOING TO PROVIDE US A PRODUCT THAT WE CAN, THEY'LL KNOW SO AND MOVE OUT ON THE NEXT STEPS ARE SO APPROVING A CONTRACT, THEN GIVING THESE GUYS THE SCOPE OF THE WORK FROM THE ASSESSMENT THAT IS CURRENTLY BEING PERFORMED.

ONCE WE HAVE THOSE TWO, ONCE WE PROCURE THEIR SERVICES, RIGHT, ONCE WE GET THE ASSESSMENT, THEY'LL SIT DOWN AND KIND OF GIVE A LITTLE BIT MORE TIMELINE.

AND WHAT HAPPENS AS FAR AS IS THE LENGTH OF TIMELINE.

SO THE FIRST THING TO DO, I GUESS IT SOUNDS LIKE, IS WE NEED TO Y'ALL.

IF THE BOARD WOULD APPROVE THEM TO NEGOTIATE A CONTRACT WITH TUBA SEEING, WHO WILL THEN DESIGN AND GIVE US THAT INFORMATION.

OKAY, IT JUST SEEMS LIKE IF WE APPROVE IT AND THEN THEY COME BACK AND SAY 18 MONTHS, THAT'S NOT GOING TO WORK.

SO, I MEAN, THEN WHAT DO YOU DO? YOU KNOW, I THINK IT'S HARD TO SAY.

HONESTLY. IT'S HARD TO SAY EXACTLY HOW LONG THAT PROJECT WILL TAKE.

I THINK THE RESULTS OF THE ASSESSMENT, SOME OF THE WORK THAT THE ASSESSMENT THAT'S BEING PERFORMED WITH THIS GROUP WOULD KIND OF GIVE US MORE INSIGHT AS TO WHAT THAT TIME, WHAT'S OUR OPTIONS IF WE IF THEY COME BACK AND IT'S NOT A TIME FRAME THAT WE'RE THAT'S ACCEPTABLE TO US.

SO, MR. SALAZAR, I BELIEVE MR. STEWART HAS TALKED ABOUT SOME INTERIM, LIKE SOME TEMPORARY.

WE CAN DO A TEMPORARY DATA CENTER.

YES. WHILE WE'RE WORKING THERE IS A TEMPORARY SO WE CAN RELOCATE THIS FACILITY WITH A TEMPORARY CENTER WHILE WE'RE BUILDING THE NEW FACILITY.

SO I THINK THERE'S THERE'S SOME OPTIONS.

YES. WE HAVE. OKAY.

ALL RIGHT. THAT'S PART OF THE ASSESSMENT.

ALRIGHT. OKAY. THANK YOU.

SO IF I MAY.

YEAH. SO WHAT IS THE CONSULTANT SAYING ABOUT THE SCHEDULE.

WE HAVE A CONSULTANT RIGHT.

YES. YES.

HAVE THEY GIVEN US AN IDEA ON WHAT IT WOULD TAKE? WE'RE STILL WORKING ON AN OVERALL ASSESSMENT.

PERSONALLY, I WOULD LIKE TO SEE A LITTLE BIT MORE OF A PLAN ON THIS.

WELL, THE CONSULTANT THAT THEY'RE HIRING THAT THEY'RE WANTING TO HIRE IS GOING TO ONE THAT PUTS THAT PLAN TOGETHER TO GET THAT SECURED.

WE'VE HAD THE ASSESSMENT THAT'S BEEN PERFORMED.

IT'S BEING PERFORMED NOW IS BY AN EXPERT WHO'S ASSESSING THE NEEDS OF THE NOC.

THAT WILL CREATE THE SCOPE OF WORK WE'RE NOW HIRING.

THE GOAL NOW IS TO HIRE THE CONSULTANT BASED ON THAT SCOPE OF WORK WILL FLESH OUT THE PLAN.

SO WE HAVEN'T HIRED THE PERSON WHO'S FLESHING OUT THE PLAN.

WE'VE HAD SOMEBODY PROVIDE THE ASSESSMENT OF WHAT'S NECESSARY AND THE MAGNITUDE OF THE WORK TO KIND OF GUIDE THE NEXT STEPS.

SO I GUESS MY THOUGHT IS THAT PARTICULAR SUBJECT MATTER EXPERT WOULD HAVE A GENERAL IDEA ON WHAT IT WOULD TAKE TO.

WHAT THE SCHEDULE MIGHT LOOK LIKE, AND THAT'S STILL NOT COMPLETED AT THIS POINT.

SO, MR. JOHNSON, THE THING THAT KIND OF CONCERNS ME IS WHEN WE TALK ABOUT NEGOTIATING, SO ARE WE AUTHORIZING MR. SALAZAR OR THE DISTRICT TO NEGOTIATE THE CONTRACT WITH THE PERSON, THE PERSON OR COMPANY THAT IS GOING TO DO THE MOVE, OR ARE WE WILL THERE BE A POINT IN TIME WHERE WE GET TO SEE WHAT AMOUNT OF TIME IT'S GOING TO TAKE, OR WHAT THE INTERIM OPTIONS AND COSTS ARE? SO THIS IS KIND OF LIKE HIRING AN ARCHITECT, THE CONSULTING FIRM.

SO THEY WOULD HAVE THE EXPERTISE TO KIND OF FLESH THE TIMELINE OUT AND I GUESS WE CAN TALK TO THEM ABOUT I THINK DOCTOR LEDBETTER, I THINK, DID YOU ACTUALLY MAYBE HAVE SOME CONVERSATIONS ON LAST WEEK ABOUT SOME OF THE INTERIM OPTIONS TO TO THE TRUSTEES POINT? SO I WAS NOT PART OF THAT CONVERSATION.

I KNOW DID NOT. WE'RE TALKING ABOUT THE ASSESSMENT, BEING MARRIED WITH THIS CONSULTANT WHO WOULD THEN THEORETICALLY BE ABLE TO COME OUT AND SAY, ALL RIGHT, YOU NEED TO DO X, Y, AND Z AND HERE'S THE TIMELINE TO DO THAT AND SO OBVIOUSLY THAT WORK HAS GOT TO BE DONE BEFORE WE WOULD KNOW THAT.

BUT I THINK THERE WERE SOME CONVERSATIONS LAST WEEK ABOUT OTHER INTERIM OPTIONS, TEMPORARY LOCATIONS.

YEAH AND I BELIEVE THERE ARE MR. STEWART WOULD HAVE TO ADDRESS THAT MORE FULLY.

AND HE CAN DO THAT ON THE 24TH.

SO I DO THINK WE HAVE SOME OPTIONS FOR MOVING THE FACILITY TEMPORARILY, WHETHER THAT'S 12 MONTHS, 18 MONTHS, WHATEVER THAT IS, WHILE WE MAKE THE PERMANENT MOVE.

CORRECT. YOU KNOW, WE CAN WAIT UNTIL MR. STEWART IS BACK NEXT ON THE 24TH AND TALK ABOUT SPECIFICALLY WHAT THE CURRENT CONSULTANT IS DOING VERSUS WHAT THE ONE WE'RE HIRING IS GOING TO DO.

ONCE AGAIN, IF WE DO THAT PROBABLY DELAYS US TO A COUPLE OF WEEKS AND THAT'S THE CHALLENGE WITH IT.

SO I DON'T SO THIS.

WHAT KIND OF CONTRACT? I'M SORRY. WHAT? IT'S MORE OF A DESIGN BUILD OF THE DATA CENTER AND THE TEMPORARY SOLUTION IS THIS A FIRM FIXED PRICE?

[01:00:05]

WHAT IS THIS CONTRACT? ARE YOU ASKING US TO ALLOW YOU TO GO NEGOTIATE THE CONTRACT? THEY'RE GOING TO BRING IT BACK TO US, CORRECT? YES. OKAY. EXACTLY.

MR. SALAZAR, IN THE BACKGROUND INFORMATION.

I'M JUST CURIOUS.

IT'S GREAT THAT TUBICEN SCORED HIGHEST.

CAN YOU MAYBE JUST GIVE US A LITTLE BIT OF A PICTURE OF, YOU KNOW, THE OTHERS THAT WERE INVOLVED? AND SINCE WE DON'T SEE THIS REPORT CARD WELL, WE BASED ON CATEGORIES OF REPUTATION, OF THE CONSULTING SERVICES, THE SIZE OF THE FIRM, MOST OF THE FIRMS THAT SUBMITTED WERE 70 TO 60 STAFF MEMBERS.

THE FINANCIAL AND LEGAL STABILITY OF EACH FIRM EXPERIENCE IN THE K 12 REALM PAST RELATIONSHIPS WITH THE DISTRICT AND OF COURSE, YOU KNOW, THE QUALITY OF THE PROPOSAL AND THEIR REFERENCES.

TRUSTEES. ANY OTHER QUESTIONS ABOUT THAT? LOOK, I DON'T WANT TO HOLD UP THE PROCESS.

I WANT TO SPEED IT UP AND IF WE CAN CONTINUE THE DISCUSSION, YOU KNOW, IN TWO MORE WEEKS ABOUT WHAT THE INTERIM OPTIONS ARE AND AT SOME POINT SEE A TIMELINE THAT'S GOING TO SATISFY US OR THAT WE HAVE AN ALTERNATIVE TO CONSIDER, THEN GREAT.

LET'S NOT SLOW DOWN.

LET'S SPEED UP, YOU KNOW.

BUT YEAH, YOU GOT IT.

THEN PRESIDENT BRYANT.

THEN I WOULD MAKE A MOTION TO APPROVE NEGOTIATIONS THAT THE ADMINISTRATION CAN ENTER IN NEGOTIATIONS OF SERVICES WITH TWO TUBE DESIGN SOLUTIONS.

SECOND. ALL RIGHT.

MOTION. AND SECOND. ANY FURTHER DISCUSSION.

A CHANCE TO LOOK AT THIS AND THIS IS RIGHT NEGOTIATIONS.

THIS IS NOT APPROVING A CONTRACT.

THAT'S WHAT I UNDERSTAND.

OKAY. ALL RIGHT.

THANKS. MOTION AND SECOND.

ALL IN FAVOR? MOTION CARRIES SIX ZERO.

THANK YOU, MR. SALAZAR.

ALL RIGHT, MOVING ON TO 8.5.

CONSIDER APPROVAL OF PERSONAL CARE AIDE FOR TRANSPORTATION, DOCTOR BONNER, I THANK YOU.

THIS ITEM SERVES TO PROVIDE A PROPOSAL FOR A POSITION DEDICATED TO OFFERING 1 TO 1 SUPPORT FOR STUDENTS RECEIVING SPECIAL EDUCATION, TRANSPORTATION, AND REQUIRING SPECIALIZED ASSISTANCE.

ADDITIONALLY, BY CREATING THIS NEW POSITION, THE PERSONAL CARE AIDE ON AS PART OF A TRANSPORTATION AIDE PLAN, IT WILL ALLOW US TO BILL AND COLLECT FOR SHARS REIMBURSEMENT.

TRANSPORTATION AIDES WORK FOUR HOURS A DAY.

THIS POSITION WOULD WORK FOUR HOURS A DAY.

SO THE IMPACT ON THE BUDGET WOULD BE SOMEWHERE BETWEEN 12,057 AND $13,998, DEPENDING UPON EXPERIENCE AND YEARS OF SERVICE THAT'S PAID BY SHARS.

SO IT WOULDN'T BE 100% PAID BY SHARS, BUT THOSE SERVICES WOULD BE ELIGIBLE FOR REIMBURSEMENT.

SO WE CURRENTLY HAVE PEOPLE ON THE BUS PROVIDING THESE SERVICES.

THIS WOULD ALLOW THEM TO TO MEET THE CRITERIA THAT SET FORTH FOR US TO FOR THEM TO BILL FOR THE SERVICES THEY PROVIDE. AND THEN THE INCREASE WOULD BE THE DIFFERENCE BETWEEN A CURRENT TRANSPORTATION AID RATE. WHAT WE'RE PROPOSING IS THAT WE PAY THEM THE SAME RATE AS WE PAY OUR SELF-CONTAINED STAFF, BECAUSE THEY WOULD BE PROVIDING 1 TO 1 SUPPORT FOR STUDENTS ON THE BUS.

SO IT'S REALLY JUST CLASSROOM VERSUS A BUS.

SO WE HAVE PEOPLE DOING THIS SERVICE NOW.

CORRECT. BUT THEY'RE PROBABLY HARDER TO RETAIN, PROBABLY HARDER TO CORRECT OBTAIN.

YES. WELL, I APPRECIATE YOU BRINGING THIS.

I THINK THIS IS A GOOD IDEA.

ALL RIGHT. ANY FURTHER? I MAKE A MOTION AND THAT IS THAT FOR THIS BOARD TO APPROVE THIS POSITION AS PRESENTED BY DOCTOR BONNER.

SECOND MOTION AND SECOND FURTHER DISCUSSION.

OKAY. ALL IN FAVOR? MOTION CARRIES 6 TO 0.

THANK YOU, DOCTOR BONNER. THANK YOU.

ALL RIGHT. LAST ITEM ON OUR AGENDA IS 8.6 DONATION TO THE TOUCHDOWN CLUB COACH KEESLER. GOOD EVENING.

THANKS FOR HAVING US.

I AM HERE TO TALK A LITTLE BIT ABOUT OUR TOUCHDOWN CLUB.

A COUPLE, 2 OR 3 YEARS AGO, WE CAME HERE AND ASKED YOU TO GET BEHIND THIS GROUP, AND THEY'VE DONE AMAZING WORK FOR OUR STUDENT ATHLETES.

[01:05:03]

BUT MOST EVERY PROJECT THEY'VE DONE HAS BEEN FOR ALL OF OUR STUDENT ATHLETES AND IT'S BEEN AMAZING.

I WAS FORTUNATE ENOUGH TO MEET WITH EVERY ONE OF OUR COACHES THIS YEAR, AND WITH THE ADDITION OF COACH CASTLEBERRY, OUR STRENGTH COACH, I CAN TELL YOU THAT'S BEEN A HUGE SUCCESS FOR OUR PROGRAMS, AND I THINK ALL OF OUR KIDS HAVE OBVIOUSLY BENEFITED FROM THAT.

WE YOU GUYS, WE CAME TO YOU GUYS NOT TOO LONG AGO ABOUT THE ADDITION OF HELPING US WITH THE IMPROVEMENT OF CARROLL MIDDLE SCHOOL WEIGHT ROOM, DAWSON MIDDLE MIDDLE SCHOOL WEIGHT ROOM AND WE'VE DONE THAT AND IT'S SUPER EXCITING TO SEE SOME OF THOSE THINGS HAPPEN AND THAT'S JUST THE BEGINNING.

SO THANK YOU AGAIN FOR GETTING BEHIND THESE THIS GROUP WITH THE AGING OF OUR CURRENT CARROLL SENIOR HIGH WEIGHT ROOM, THE DISTRICT HAS IDENTIFIED NECESSARY UPGRADES TO ENSURE THE SAFETY TO PROVIDE BENEFITS FOR ALL OF OUR STUDENT ATHLETES.

OBVIOUSLY, ALL OF OUR STUDENT ATHLETES USE THE BIG WEIGHT ROOM AT OUR FIELD HOUSE AT CARROLL SENIOR HIGH.

AND THIS TOUCHDOWN CLUB HAS IDENTIFIED THIS AS ONE OF THEIR MAJOR PROJECTS AND HAS MADE A PRIORITY TO RAISE THE FUNDS FOR THE UPGRADES OF THE WEIGHT ROOM.

AGAIN, I WANT TO MAKE SURE THAT EVERYBODY REALIZES THIS IS NOT JUST A FOOTBALL DEAL.

THIS IS FOR EVERY ONE OF OUR ATHLETES, BOYS AND GIRLS AND HIGH SCHOOL AND SO IT BENEFITS ALL OF OUR STUDENT ATHLETES.

THE TOUCHDOWN CLUB IS A REMARKABLE.

WE'LL FUND THE ENTIRE PROJECT, WHICH WILL INCLUDE, BUT NOT LIMITED TO NEW FLOORING, WEIGHT ROOM EQUIPMENT, RAISING THE CEILING TILES, THE RECONSTRUCTION OF WINDOWS TO PROVIDE SOME ADVERTISING PLATFORMS. AND THIS CAN CONSIDER APPROVAL OF AN IN-KIND DONATION FROM THE TOUCHDOWN CLUB AND THE RENOVATION TO THE SENIOR HIGH SCHOOL WEIGHT ROOM, AND THE AMOUNT OF APPROXIMATELY $1 MILLION.

SO THIS IS TRULY FANTASTIC.

THANK YOU, COACH KESSLER AND IT'S AMAZING THAT OUR COMMUNITY ONCE AGAIN IS YOU KNOW, DISPLAYING SUCH GENEROSITY.

$1 MILLION OR EVEN MORE FOR THIS WEIGHT ROOM FOR THE SAFETY.

IT'S REALLY A SAFETY PROJECT AS WELL.

YES. CORRECT AND IT'S FOR ALL ATHLETES, BOYS AND GIRLS AND IT IS NEEDED AND IT'S AMAZING THAT OUR PARENTS OUT THERE CAN STEP UP AND RAISE THAT MUCH MONEY FOR THIS AND THIS BOARD IS CONSIDERING THIS TONIGHT SO THAT THEY CAN START LETTING CONTRACTS AND MAKING SURE THAT THINGS GET ORDERED AND ALL THAT ON TIME.

IS THAT CORRECT? YES, SIR.

YES. I'M JUST BASICALLY ASKING FOR YOU GUYS TO GET BEHIND IT AND TO GIVE US THE OKAY TO MOVE FORWARD ON THIS PROJECT AND, WORK WITH OUR TOUCHDOWN CLUB TO BRING YOU THE FUNDS TO, OUR FOR THEM TO BE ABLE TO DO IT IN KIND AND THIS IS 100% FUNDED BY THE TOUCHDOWN CLUB, ALL MILLION OR WHATEVER IT'S GOING TO COST.

THEY ARE COMMITTED TO FULLY FUNDING THAT.

CORRECT. YES, SIR.

THEY ARE THE ONES THAT ARE GOING TO BE MANAGING THE CONTRACT.

THE I'M ASSUMING THAT WE WOULD HAVE SOME SORT OF OVERSIGHT.

YES, SIR. OVER THAT, SINCE IT'S ON CAMPUS, THROUGH ALL THE VENDORS WILL WORK THROUGH ME OR OUR AND MAINTENANCE DEPARTMENT THROUGH US, BUT THEY'RE THE ONES THAT WILL BE PAYING FOR IT AND WE'LL BE MONITORING THE RENOVATIONS AND SO BUT THIS IS A VERY COMPETITIVE AND COMMITTED GROUP AND THEY'LL GET THE MONEY AND I HAVE NO DOUBT ABOUT THAT.

DO YOU HAVE A TIMELINE ON THAT HAVE THEY TOLD YOU THAT THEY WOULD HAVE THIS PROJECT COMPLETED BEFORE NEXT SEASON OR NEXT YEAR TO BE ABLE TO START THE PROJECT? I MEAN, WE'RE GOING TO HAVE TO PUT UP SOME ORDER SOME THINGS EARLIER.

BUT REALLY, THE COMPLETION OF THIS PROJECT WOULD BE NICE TO BE DONE BY MAYBE FEBRUARY OF NEXT YEAR.

SO WE COULD BE WORKING THROUGH THE RENOVATIONS DURING KIND OF ONCE FOOTBALL SEASON IS OVER AND IN THE CHRISTMAS HOLIDAY IS KIND OF START AT THAT POINT.

SO ABOUT A 6 TO 8 MONTH YES, SIR PROJECT ONCE YOU GET STARTED.

YES, SIR. COACH KESSLER, JUST TWO QUESTIONS.

SINCE WE TALKED ABOUT THE TIMELINE, WILL THERE BE A DISRUPTION WITH THE ATHLETES BEING ABLE TO WORK OUT DURING THE PERIOD OF TIME WHEN THEY'RE WORKING ON THE FACILITY? YEAH, WE AND WE'LL HAVE TO MOVE SOME OF THOSE THAT EQUIPMENT OUT.

WE'LL HAVE TO KIND OF ALMOST LIKE COVID SEASON.

WE HAD TO PUT IT OUT INTO THE INDOOR FACILITY.

WE'VE WORKED THROUGH SOME OF THAT WHERE WE'RE GOING TO HAVE A LITTLE TEMPORARY OPERATION, BASICALLY DURING THE TIME OF CONSTRUCTION.

OKAY AND SECONDLY, IT'S EXCITING.

I REALLY THINK IT'S AMAZING, CAN YOU SAY A FEW MORE WORDS ABOUT THE PROVIDE ADVERTISING PLATFORMS ON THE WINDOWS OR WHAT IS WHAT'S

[01:10:04]

IT'S ALMOST LIKE A TEN YEAR ADVERTISING COMMITMENT TO BE ABLE TO HELP FUND THIS PROJECT.

IT'LL BE FOR THIS PROJECT.

THE WINDOWS WILL BE FACING KIND OF THE PARKING LOT, AS YOU WOULD SAY.

AND WE'LL WORK WITH THAT WITH THOSE ADVERTISERS THROUGH THOSE PROCESS.

SO ALL RIGHT AND THE COLOR SCHEME AND THE COLOR SCHEME AND THE COLOR SCHEME WILL BE BLACK, GREEN AND WHITE.

GOTCHA. OKAY.

YES, SIR. THAT WILL. ALL RIGHT.

THANK YOU, COACH KEESLER.

YES, SIR. COACH KEESLER, YOU ARE IN TUNE WITH, YOU KNOW, THE BEST ATHLETIC DEPARTMENTS OF HIGH SCHOOLS IN THE STATE OF TEXAS.

IS IT TOO EARLY FOR YOU TO AND YOU'VE SEEN THE PROJECT? PROBABLY. ON PAPER, WHERE WOULD THIS PUT CARROL IN TERMS OF ITS WEIGHT ROOM FACILITIES? IT WOULD BE IN THE TOP.

I DO BELIEVE IT WOULD BE ONE OF THE TOP WEIGHT ROOM AND REALLY MORE ABOUT OBVIOUSLY, THE LOOK AND THE EQUIPMENT WILL BE TOP OF THE LINE, BUT MORE THAN ANYTHING IS ABOUT THE EFFICIENCY.

WE SPENT A LOT OF TIME ON THE EFFICIENCY OF THE WEIGHT ROOM AND HOW WE CAN GET A NUMBER OF KIDS THROUGH THERE EFFICIENTLY IN A TIME PERIOD AND ALSO USING TECHNOLOGY, WHICH IS CRAZY IN OUR WORLD NOW.

BUT WE CAN HAVE TWO WE CAN HAVE A FEMALE TEAM AND A MALE TEAM WORKING IN THE SAME WEIGHT ROOM WITH A WHOLE DIFFERENT SCHEDULE, AND EVERY KID GETS THEIR OWN WEIGHT YOU KNOW, THEIR OWN PROGRAM THAT THEY ARE SCHEDULED BY OUR STRENGTH COACH.

SO IT WILL BE REMARKABLE, QUITE HONEST WITH YOU.

WE'RE REALLY LOOKING FORWARD TO IT.

THAT'S WONDERFUL AND AGAIN, AS PRESIDENT BRYAN SAID, THE COMMUNITY THAT'S BEHIND THIS AND SUPPORTING IT IS JUST WONDERFUL.

MR. BRYAN, I WOULD GO AHEAD AND MAKE A MOTION TO APPROVE THIS IN-KIND DONATION FROM THE TOUCHDOWN CLUB FOR RENOVATION OF THE CSHS WEIGHT ROOM AND THE APPROXIMATE AMOUNT OF $1 MILLION.

SECOND MOTION AND SECOND.

ALL IN FAVOR? ALL RIGHT. MOTION CARRIES 6 TO 0.

THANK YOU, COACH KEESLER. LOOKING FORWARD TO SEEING IT.

ALL RIGHT. WE HAVE SOME UNFINISHED BUSINESS FROM EARLIER.

[2. EXECUTIVE SESSION (Part 2 of 2)]

OKAY. GOOD EVENING.

WE WILL CONVENE AN OPEN SESSION AT 8:50 P.M., AND WE DO NOT HAVE ANY ACTIONS TO TAKE FROM EXECUTIVE SESSION.

SO IF NO OBJECTION, WE WILL ADJOURN THIS MEETING AT 8:50 P.M.

* This transcript was compiled from uncorrected Closed Captioning.