School Board Workshop

then what happened? >> Well, we jumped, of course, great bear went for a stent as >> So for Welcome, everybody. To SEPTEMBER 13th. It is Friday. The 13th. Talk a lot about Monday County Coast. But welcome to make area school board all workshop for SEPTEMBER 13th. Called this meeting to order all agenda been Vince, we did add some some stuff after publishing just some of the of presentations and things like that. They were not out there public comments. We do not have any public comments for today's meeting. And I especially jurors on teams. Can she hear us ok? >> I can hear Thank you. >> All right. So let's update to first item today, which is the presentation on the certificates of participation for 2025. The selfish, give you the floor. >> Wanted to introduce the team. That's going to give this presentation today with me today is lor how she's with pfm our financial advisors on the other side of her Tom Kai, our senior underwriter and behind me is Ritesh Patel, our Bond Council with Raymond James. But Lord, take it away. So good morning. We can hear me? Okay. >> Okay. Yeah. Think that makes Yes. >> Issuance the series 2025 certificates of it a and just kind of give you an overview of where the district stands right now with their debt. The market rates this from a couple weeks ago just from the agenda deadline. But this is showing you what the 10 year historical averages have been. >> The graphic on the right hand side, those tan bars show you the range from years. One to 30 in the out curve. The light blue bar. On the top was where we were a year ago and the dark blue bar is where we are today. So rates have decreased from a year ago and you'll see specially last year you can see this inversion of the yield curve and that is starting to smooth out and he's continued to smooth out with anticipation that the Fed is going to start reducing rates next week. So very exciting news and will hopefully be in a great position when the district is ready to go to market to borrow this issue. The graphic on the left to shows you where the current rates were compared to one week one month and one year ago. So before we dive into the next slides, are there any questions on the market? So this is to show you what your current certificates of participation, that debt outstanding looks like. This includes principal and interest. Currently the debt does much Iran years, 2038. And you'll see what the 2023 issuance was. Kind of the bulk of this. And we did do a aggregate level to reduce the overall impact on the millage is opposed to if you just did level principle and interest layered on top of the current debt that you already had. This was taking advantage of sort of the inversion in the yield curve as well. When we did this because when we had done it, the rates for lower a little bit further out than on. The short is actually advantageous for the district to issue the debt this way of the 1.5 mills available to pay debt service. You guys are only using 0.2, 9 mills to cover the maximum annual debt service of 20 million dollars which occurs in 2033. And that's assuming a fiscal year. 25 taxable assessed value of 78.6 million. We do monitor called dates for the district moving forward and you'll see in the graphic on the bottom of the chart. On the right hand side shows you where those call dates are. The one that was in 2023 was a bank banknote which didn't produce savings at the time. But we will be looking when we get to 2026 potential for the 2016 days for refunding. So we're always looking to see if there's opportunities to save on the debt service outstanding for the district as well. Site for a showing the sales tax summary the debt outstanding on this. There is budgeted receive a 50.7 million for sales tax revenues in 2024. That the district to use lies is 12.7 million which equates to 4 times coverage. Very healthy cuts for the debt service and only the one issuance on the sales tax. Outstanding. The series 2017, which doesn't turn 2032 in line with that current sunset. Skipped ahead that the refunding part of this as well. This just shows you how we do monitor and over the course of serving as financial advisor for the district, you know, have helped with the district and monitoring potential savings and found 15.2 million of cash flow savings. And the refund means that the district has taken advantage of over the years. So really awesome results for the district in this. Any questions on any of the outstanding debt before we get into the new money needs. Yes, my question. >> On slide. Number 3. Yes. When it says. 0.2 million, 2 mills of the available. 1.5 mills is required, but those that understand the English words. But what does it mean that we have 1.5 mills available? >> Yeah. So the 1.5 Mills is a total based on the taxable assessed value at this 78.6 of that legally are able to utilize 75% which equates to 1.1 to 5 times. And so just. Looking at this quickly, it would be 125 roughly 2 covered that. 22 Million. >> So there's a legal limit of this. Not aware what you're Yes, the legal limit on how much money we can. Under under Florida statute, 10, 11, 71. You are able to use up to 3 quarters of your capital outlay. Millage. 75%. You currently levy 1.5 mills. So you can use up to 1.1, 2, 5, mills of of revenue to cover your debt service payments on your caps. Outstanding. Okay. But you don't you new lies. 0.2 0.9 to 9 to at this point the point being that you have a lot of capacity at this point to to issue debt, to fund new projects. It's so I understand what you said. We we love 1.5, no capital tax and the law so that we can. We can use 7 aef up to 75% of that. That for least purchase payments release purchase payments. But we're using 0.2, 9, 2%, of it. So we've got Miller so left. >> point. Well, knows that are put some meals or Some like that, ok? >> And the other dollars are, you know, going to help ongoing needs for capital projects and such maintenance staff often is is utilized to pay out at 1.5 mills. But the state does cap it at 1.5 mills back before the recession districts received 2 males and then it was stepped down to the 1.5 and then eventually added the 75% requirement on that 1.5 miles. And so we look at this typically, you know, we advise not to go over 50% of that 1.5 miles, just in case, you know, there is an economic downturn in your tax bill assessed values to decline, to make sure that you really always are within your coverage limits and have you know, enough funds coming in to pay debt service other ongoing needs. >> And in the district, obviously has revenue sources. They can utilize this upcoming issue. We're going to talk about I believe the plan is to use impact fees potentially and one half Levy revenues as well. So and then you obviously is Lord talked about, you do have some extra sales tax. And so those available as well, depending on the project. Okay. >> And so I think I you say that you wouldn't you would recommend never using more than 0.7, 5 Mills. To be paying back these the money that we borrowed right? >> Yeah. There are situations where, you know, will bump over that. For conservative purposes for the rating agencies as well, you know, they prefer to make sure. So typically that's what we're in line with, which the district has plenty of capacity. >> we're well underneath that right now. >> Absolutely, yes. At the 0, 2, 9, 2, so great. >> Thank you for the education Any other questions. >> We will hop back then to slight 6. Discuss the upcoming needs that would be funded with the certificates of participation series 2025. A. And the 2 projects have been identified for this or Artisan Lakes Elementary School. For a total budgeted project amount of 70 million and Wright Ranch Elementary School with the Total Budget Project. Not a as well 70 million dollars. And the details are on there where these are being built and ensure more information. Once Rachel can dive into thing, she brings this information. And we do look at different financing structures just like I had mentioned on the 2023. We had looked at overall aggregate level to take advantage of the market at the time where the yield curve was. And so that's something that we continuously do. And there's new issuance is coming up. And so you'll see inside several 7. This is just a 20 year final maturity of level debt service. So level principal and interest payments on the new money issuance over the total life of the issue outstanding. Going out until 2044. And so you'll see that and bars are what the current deaths services that's outstanding for the district in the blue bars layer on top of that, the new money needs of 140 million those projects. The red line show when the sales tax expires as are tested, mentioned those revenues would be legally available to help fund these projects as well. If there was a need to do so. I know there's intention as well. Utilize impact fees that are coming in for new growth to help cover these payments as well. So those those payments could potentially be used the impact fees on that blue portion of this debt service as well. And you'll see the yellow line on the top is that 50% of the 1.5 mills where you're lining up with that to show you the reference of where we look at, you know, more structure, a mess. So this is size with the project fund of 140 million dollars the true interest cost of 4.1 6%. We would anticipate that is a very conservative estimate that likely would be lower than that. And so your average annual debt service on the new issuance is the 10 million dollars with your ads for your all debt service and this potential new issuance of 32.6, which equates your mileage requirement if we were to structure it this way of 0.4, 3, 2, 8, so still well, under the 0, 7, 5, of where we look at that 50%. And you'll see just along the graphic sort of that show you where Mats hits that those different years and that, you know, it drops off significantly in 2039 to about 10.6 million and didn't want to point that out before we hop to the next slide, which shows what would be the wrap structured. So this again is looking at potential for overall aggregate level debt service rather than the prior one where it was level in principle and interest solely on the new issuance. This looks at the total structure to make level. What that does is ads. But it does increase your interest costs on this. And this is something that we would definitely look into more when we get to go to enter the market next spring to see where rates are, how best to structure, what investor demand is across Kerr. Those are all things that we take into consideration. And, you know, an advantage to this is obviously you do have the lower matzo, the yellow line. You're not nearly bumping up on even before you still have plenty of capacity be there as well. But this millage requirement would be 0.3, 7 0, 3, 7, mills out of the 1.5, but it is the net interest is the 1.2 8 million on this compared to 66.8 And so depending on future capital needs, and I know that there's, you know, projects down in the pipeline that have been identified. But those will be taken into consideration as are looking at this to go to issue next spring. We're not talking about those today, but we understand that there could be potential needs down the road as well. And we want to make sure that there's plenty of capacity will went out away. Your potential interest costs on top of, you know, the additional growth needs and the district as well on this. So and this just shows you the summary of the 2 for comparison. Both have the same final maturity, both the same project amount, the rap structure where it's overall aggregate level does have the higher interest costs in true interest cost a slightly longer its average life. But it does have at switch for Pryor's less mileage. So these are all things that we take into consideration. And we would later on any potential needs down the road as well. When doing this analysis so that we have, you know, a really good picture of everything that's coming down the road. So what is coming in the parameters of the bond resolution that Ritesh has drafted on. This is a not to exceed Parham out of 150. The current project estimate amounts of the 140 million that have been identified. The final gnp, as we know, are not available yet. So there's just that little bit of extra cushion for the 150. We like to make sure that there's that availability so that if for some reason, those projects increased, they're not scream. Leave to go back to the board before we have to issue to ask for an increase in that. But this is the absolute maximum end of the out that you could issue is that one 50 z can't go about that. The underwriters discount we would have set at week 4% of the out not to exceed, which is very standard in the market for Florida school districts. True interest cost not to exceed 5%. Like I said, we would anticipate that to continue to climb with how market rates are trending right now. But again, just that cushion is in there in case, you know, something crazy happens in the next few months before we issue not to final maturity of JULY. First 2045 again, the numbers we showed was 2044, but that just in case things little bit down the road, it gives us that ability to push it out year. We need to and we can always shorten it as well at that app and takes just to the district to make it issue. If we wanted to go something lower than 20 years. >> Then what put the media standpoint, please? >> Maximum annual debt service. >> So don't. Ok, too. >> That's just the largest amount principal interest that comes doing one given year of life that all year potentially okay. >> That's the number they can't be. 0.7, I. >> Thanks. So it can occur. 10 years down the road. But based on your current taxable assessed values, we make sure that it's not what you know, even coming 10 years down the road. >> And that I have more of overall picture of. Of what we do with this. Just public. We borrowed Millions of dollars to build our schools. The money is set aside. Where then account and account we pull that money out as needed when rebuilding our schools and that paying my our mileage. 1.5 and our sales tax. My writing Okay. >> Alright, these are impact fees. Correct? Impact fees. So. >> But when her pulling those those funds over us, when actually doing the building and we're seeing project summers, and that's going on our agenda. And we're approving that. Yes, we're going to bring over them. 40 million dollars over for site work or whatever architectural work or whatever. I just want the public to understand. That's what we do just no more of them getting a mortgage on home. The airline we're doing same thing. We're getting mortgages through the cops process and we're building our schools and we're paying them often asked what these charts. Kate, what we do interest rate that we get that hopefully. Overall interest rate reduces my chores and that kind of fluctuate. Some are correct in assuming not so that debt is issued as fixed rate. >> Okay. Over the life of each of those issuances aren't fixed rate for that. So there is it's set. We know what you're doing. So if interest rates were to drastically rise in a year, that doesn't impact what you currently have outstanding. So just be like a fixed rate mortgage is opposed you know, an arm or something like that. >> Right. Just a little >> If we don't get that person is locked in until we issue today, right? Which is spring issue. I guess my question would be done. For the knot. >> any time, a Salva interest rate drop considerably. We have a process that doing that we can. Bringing right. >> Lorcan speak to that. Typically the first few slides he was discussing about refunding sets. The trend been done over time we have a 10 year call protection on these transactions mean you cannot refund the debt within the first 10 years. And that year 11, basically you can call all the debt rates have dropped and save yourself money. You've done that over time. Saved about 15.2 million. >> More than not person Arena home and refinance its a little different than that. >> But yes, like where you could refinance every year if you wanted But we can't write in. There are ways, you know. Structures that are innovative that, you know, you could issue is taxes. >> then take out his tax exempt things like that to capture savings before the 10 years since advance refunding means were removed with the tax reform in 2017 where previously you were able to advance refund. If rates drop to know we have to wait until the 10 year per call for that. But there's other structures in town could speak to that. If you're interested in hearing about, you know, sort of what the banks offer that way. But yes, it once you do it. It's just like you're refinancing your mortgage. >> The only new a difference. All that is that when we when you refinance your home, if buy your home and your one, you're refinancing your 5. Your mortgage from your 5 will be 30 years. We don't extend the debt when we do this. So this dead, if it's refunded, will stay the final maturity will stay at 2045, you will not go beyond that 10. >> Slide 5 year had sales tax on. 2012. Is that was a sales tax line is 2012 and has a date. Then out and in 2003. I'm out. I'm not really not line very well for for some reason. >> So that was we in 2012 on APRIL 3rd, we were able to refinance the series 2003, which was a par amount of 49.0 4 9 million was refinanced. It allowed the district to have a net present value savings of 2.9 million or 6.3 6% cash flow, savings of over 3 million which equates to average annual cash flow, savings of 554,000. That refinance rate in 2012 was 1.2 8%. And the final maturity remain the same of 2017, ok, Anderson MAY shows learning learning all. Correct? So that someone tree saved just by doing one. >> That would be a good example of refinancing. >> Yeah, absolutely. A double charges. Great that. That why have you and you're doing what you're look at total net savings, you know, 13 Million. I mean, we we've done a really good job of capture the refunding and do it calls and we will be canto. They're going run in. >> When we get this money when bar in the spring, let's say it's MARCH. 15th. It going to? Account where we get some interest on it? What we're waiting to pay the builders down the road. >> Absolutely. And investment advisors are here they would be thrilled to the the sector a what if the things they do want to know and this was kind of from the public, you know, it does sound like there's a lot of money, but something that and retest can speak to this detail. But we don't go beyond with absolutely needed for the projects were not over borrowing because there are spend regulations on that that the irs monitors. >> That the district does have to report. And if you want to just briefly. >> Yeah, there's concept. Which you MAY have heard that term. It's essentially for governments where you can borrow as a as a tax-exempt rate, lower interest rate, invest the proceeds that are seeing there until they get used for building at a higher interest rates of thereby you're earning the spread and that's called tax code does not like you to earn arbitrage. So there are many tech tools involved about how quickly you're going to spend the money, whether you have to pay rebate to the U.S. Treasury. If you do earn arbitrage and you have an overcharge rebate consultant that comes in every 5 years or so. And does those calculations for you to make sure you are evading any any earnings that you have to to the Treasury, there's exceptions are situation where you can keep arbitrage, particularly will be talking about that in a couple weeks on your tan when you guys to a tax exempt tax anticipation know barring there are some special rules involved there that MAY allow you to keep it the current interest rate environment. But yeah, there's a lot of a tax code, but that goes and great thanks. >> I don't see. I don't see teams. I can't see if this measure has question or raise hand. >> I don't have any at this time. No good to me. Sharon meeting with. Anything I think you wouldn't crack there. That's awesome. Yeah. Very informative very much. And it will decide at another point. Whether to level of the rat. >> Yeah. So this will come to the board for approval of OCTOBER 5th for 8th. >> And and we'll be looking at this. You know, the anticipation is the Fed is going to start Lorraine in SEPTEMBER in continue. And so when we get to the early part of 2025, will be looking at this issuance. In addition to potential future needs as well and make that decision before we enter the market. >> And are more question from it. You're basing that go for 150 million is the one for you. >> So this is just are not to exceed that. The board is going prove. So if the project cost actually decrease and it's only 120 million for the project cost, that's all we would issue. But if for some it increases from one 40 to something more. This just allows you for us not to have to come back to the board for a >> And there's a cost to doing the cops, right? So you would want that to see the 140 Million. >> Yes, I mean, there's cost of issuance involved writing she's and things like that. Yes, but that's not 10 million dollars >> that is included in all of Any of the cost of issuance are already included. All the numbers that were shown to end, very conservative estimates on that. >> That if we're looking at 70, 140 million in construction cost right? We would want to to make sure that we. To cover the cost of missions. Yes, Not going to. It 10 a detail in time could probably talk to you all night about this. But there's typically these bonds are issued at 5% coupon. >> So your part amount is actually last and there's more premium. I'm so we size for the exact project funded that you want. But if for some reason there's a shift in the market as well, that discount rates, you know, or want it all of that kind of plays into this. But yes, 150 would give enough cushion that we shouldn't have to come back to the board for reconsideration this. But it does. Everything includes cost of issuance, correct? >> You have to use this money on the projects that are listed. >> You assuming board approval for these projects? We do have some flexibility in the sense that we I think a resolution, we say other projects that MAY legally allowed. But obviously we would want the board to know about that and make sure if the funds will used for anything else, you would be well aware of it and signed off on that. And there's also other rules. If we have a bond insurer and the project changes, we MAY have to give them ferc consent. So typically speaking, we're not changing projects, but things do arise sometimes after we issued the debt where price get substitute and we can work with than that to make sure it works. District okay. >> Thank very Appreciate >> To make >> question for a play for doctor was on too. Know, I discussion about some potential other ways of and apparently decided not to go in that direction. Well, I I'm not trying to be coy. We talked about and t c even the srq project in regard. Some money for that. And then we. Apparently that's not part of what are. You going to make the decision? That's not a good way to go or so. >> We have had further planning discussions about a couple of the future needs a Dem tc. I think I think we've made progress. On the hangar project. And we have some other thoughts about future expansion needs that at mtc that we might take a look at in a future need because just because of the timing that's involved. So I think you know, again, we we certainly could modify. But I think right now our priority. Is wrapping up the process for these 2 elementary so that we can get financing and get moving with construction. But I do that. We're thinking about options related to the ntc expansion, maybe for a future. >> And just for my fellow board members, I was at as a member of the ntc Council or board or whatever we call the or you know that they are getting very full there and they're looking at expanding, you know, building that other building behind the building that they currently have. And so I thought about why not just bars some we're going to borrow 141 a bar. They need about, I think a billion dollars to get that bill. And so I talked to doctor why song about potentially doing that? And obviously we can't talk about that. You know, where tortoise and rationed yet over in the sunshine. So that was what I was discussing with him currently. >> This is that launched project. Yeah. That will be asked of patients. Yeah. So they came up and that's why i was asking him about that. And apparently. >> You know, the decision has been made to do that at a different time a different way. I mean, I suppose we could do something different as the board, but does. But you know what? Question was about what's going on there? >> You know, I do think that it just I mean, I know kind of off topic and I'm now we good talking about with the Ranger here, I thought so. I do think that that project is extremely. What would you say price very low. Those numbers are for like 3 or 4 years ago. I don't think we're building that building now for what we originally thought. Is my it. I think we need to go back and make sure we've got the actual troop numbers just from just because obviously I was I was pushing for the launch and we're talking with people trying help. The preparation process and things like that. That 18 million that we'd are 16 million roughly. Be the cost they thought could be a double that. Now. Just why usa made up way to fund it. But >> they seem to get pretty full over there. As you know from what and what Wagner show me, getting full. But anyway, for sure. >> It kind of the follow-up our discussion about a legislative priorities >> and >> whether to ask for that. The Congress at the legislation, 2, go back to the 2.2% or 2 Mills. >> at that. >> We started borrowing and looks like in 2010. And it was 2008 2009 that they reduced our. Capital. So consequence, you know, we're we're still paying for. And >> And it looks like what will we be dicey somewhere that will be at like 0.5 mills once we. Once we move a point forward. >> Not something pretty close, but eventually we're going to get to the point where which is like at that 0, 7, 5, could potentially just keeps going up a little bit up a little bit. So. >> But that's just debt service and just tires about the fact that we even have to go out for dead. Well, that's true. >> Or it could bring down the costs ability schools how to, but some of them to change in the s rough. It can be. Anyway. Great right to bring this to our annual best >> For the fiscal year, JUNE 30 23 for sellers. >> wanted to introduce our Deep blue investment team. We have David, saying and we've got Dominic, Chris borrow. Said that right. And John Scott, let them take it >> Thank you very much. Is honored to be here. My family moved down to Sarasota Branson area in 1971. And Eye. I am a product of the Florida public school system. So thank you very much for all you do. The annual in a portfolio. First of all, before docking investments, we always look look at the economic update us what is going on and what's the effect is going to have on your investment portfolio. One thing every is talking about next week. Next Wednesday, the Fed is going to reduce rates Spike 0.2 5% or 25 basis points to a new target of 5 to 5.2 5% overnight. What's that mean to you? Well, your investments are still going to pretty well. The market is trying to get ahead of the south yet at the beginning of this year, the market's felt that that the that can go into recession, that that that was going to reduce rates 5 to 6 times before the end of this year. What is going on now is I think that that is going lower rates one time and they're going to see watch the economic data that comes in. So what's going on here in Manatee County? We are and call it a tale of 2 cities here. You have people moving to Florida because they love it down here with the number 3 state in the country in population. You see the assessed values, Manatee County going out. It's very good. On the other hand, the downside to that is prices are rising faster expected. And the biggest things that we hear when we talk to other school districts of the city's other county clerks is workforce housing. So right now, people who retire here in 2000 are fixed income are having a hard time to a pay for insurance. They bought your property insurance Bill Auto insurance. I was shocked when I was doing some research that the average policy for homers in Florida's $10,000. Average. So that's half average 10,000 and the rest of the country's $2,800. I was stunned when I when I did that research there. So it's it is a tale of 2 cities. I think the top 20% of wage earners are doing just fine. They either had no mortgage. They walked 2 and a half percent mortgage in 2021, there are earning 5% on the money market fund and they're traveling all over the world. The bottom 40%, I think, are really having a tough time because these are the renters use. Your wage earners. Just case in My stepson 2 years ago received a 500 all increase in his apartment. Well, he's an alley worker. I do worry going, you know, you're already working 40 hours a week. What are you going to do? So that side there is is is where we are. It is. It's a double edged sword for us here in state of Florida, especially in southwest Florida because it is one of the more popular spots for people to move to from up north from California, Illinois, the Northeast. So that's where we are with that. Any questions. Comments? Okay. So you look at the current market conditions. I think we're still pretty good. Interest rates are going to be fine for you. I think from both investment bar inside, you're pretty good for us on the next page. Please. You have your investments summary. Okay. So before we start and investment summary here, you look at the state of Florida has a state investment statutes called to 18.4 5. You don't need to remember that. But the state of Florida said you have to have a certain type of investment your lap, very high quality, fixed income doesn't does not get too crazy. Then on top of that, we we've been your best advisers since 2016. We then worked with your finance team to create your own investment policy statement. That's an ips. Going to hear that a lot IPs, but investment policy statement. We further take what the state allows him to do and say, ok, what else do you like? To make trick shuns on? So for us. Say a five-year corporate bond would say you should have no more than 20% your portfolio. And that and no more than 5% per issue. For your qualify. Public depository account at jp Morgan, then you're allowed to have 100% because you have access that every day. And there's no risk your principal. So far the more risk you have the further we that we restrict how much you can have of that individual security. So with that said, you, you are now looking at your investments summary. District's portfolios is in what call local government and that some pools lgi peas. Those are and you are well diversified. You have 4 different types, Florida fixed income trusts, which is managed by people, investment advisors yet Florida prime, which is managed by Federated, Florida, Palm, which managed by U.S. Bank Asset Management. And yet Florida class, which is managed by public trust advisors. So you're very well diversified. They're so what is the local government that simple? Well, it's I call it a money market fund for local governments. Only local governments are allowed to be in there and each one of your pools. You have daily access to and there's no risk to your principal. And we took advantage of the market. >> Beginning in JUNE of 2022, in interest rates rose. >> We decided to have the allocation as it is today. As you see, you have 344 million in in your in regular investment portfolio. And then your bond proceeds, which is also underneath the some policy. But it's only to find by the state of Florida. The state of Florida statutes. So so you have a total of over 487 million dollars right now between bond proceeds and your regular. That's a portfolio. Question the real quick. Yes, sir. And the top of the chart here. >> That money is not. Being used to service any kind or anything know it's just. >> It's the these are funds that you allocate internally. So a lot of these funds are restricted, right? Okay. So there are designated for some. Some a purpose are ready. So what you're Feinstein, does it do? Pool investment counting. And what they do is they say, ok to come to us, they go, ok, David, we want we have 344 million total. Where do you recommend for us to to put this money? Okay. >> Because there's asset is if you're down to the second. >> Part of the charm that. Those numbers are for money that apparently we've borrowed. As cops to pay for building. Right. So so is the money above the 344 million is that. Being used to service and it kind of debt that we've borrowed money on or is that just? Money that's sitting to pay for something that's coming up like curriculum or yes. >> The the the money in the top part 3. And 44 million is time for anything other than your bond proceeds. >> Anything other anything other than the Bon. What mean by the bond pro with the bond proceeds on the bottom of your your cops. 2023, you're caught a We decide to take that portion. >> And separate that. So therefore, I think like that talked earlier about Robert r# # rebates. So what we do is we create a separate account for your bond proceeds. So very easy for defiance team to determine where things go. That the top part of 344 million, this is basically money that you're going to have to run the school district. Okay. Whatever you need. Okay. >> So if it would be like it's like big savings account, maybe and the s absolutely like if I know and in the road from my house, I can do it until 9 months from now. I take the money as ticket in my savings account earns a little bit of interest was sitting there in the 9 months down the road pulled out and pay for my rove. So is that correct? All right. I'm smart I look so I All right. Thanks. That's what I want Thank you. Excellent. Great question. >> So on the bottom here, you also have the investment ratings. So another level of comfort for you is each of these pools are rated the half highest spy nationally recognized 8 rating agencies on the bottom. You see snp that standard poors. You have Moody's and Fitch. So the Florida that cash pull is rated triple a f s one. S one. So that means that is the highest. It's for floating rate pool. It's managed to dollar and dollar out. You have that Florida 5th Choice Pool which is rated triple a af. And then you have your Florida Prime, Florida Palm, Florida class, which are triple am and all it is the difference s and p uses that uses af. You have the highest rating there. So that's another thing gives you peace of mind knowing that these are the highest rated pools thank you. Okay. Any questions? Next slide. Please. And then here we are. Your portal says your portfolio statistics for fiscal year. 23 24. So from JULY one. >> Of 2023 to JUNE, 30th 2024, you look at the Middle column, their fiscal year, 2024 earned income. So all your investments. >> But you kept in for and non bond proceeds in fiscal year, ending JUNE 30 2024, you earn 19 million 100 and 44th that 125,000. A 92.7, 4. That is really, really good compared to 2 years ago when interest rates were rock. Bottom, there was really nothing there. But the inverted yield curve, meaning short-term interest rates are higher than long-term. We've been able to keep yourself short. No risk your principal. At the same time. 30 19 million dollars is not that on on on your non bond proceeds and then a bond proceeds. You shoot it like space that asked earlier. This is money that you set aside and you you try down as you need. You also earn additional 7.7 million dollars in the last fiscal year. Just on those bond proceeds. So for total, you almost 27 million dollars your investment portfolio for both bond proceeds and your regular operating reserves. That is really good. I think even with the Fed lowering rates because these are pools pools, meaning that there's a lawsuit, not all securities, which are same time. Even though theres a sort start lowering interest rates in SEPTEMBER. I think maybe one maybe one more straight couple for the year. But doubtful. I think people want void the election and we'll see what happens after that. I think the economy is better than people think so. With that said, I think you will still earn quite a bit interest income for next year because of these pools. Not all securities. Are there. I just. >> The calculation for not counting. The bond proceeds says 5 and a half percent for the year. That sounds about right? Yes, yes. Okay. And then the bond proceeds. We haven't had those in effect for all e the whole year So so it So that would be a more if I >> All your money. All these pools have averaged over 5% for fiscal year. She's good. Really good. That's going to help offset a lot of pressures that you can have on expense side of your budget. Services aren't going down. Teacher salaries are going down. >> You and it it's a miracle. What you all do here. And I thank all of you for Vinnie do every day for the kids is a my wife's a speech. Language pathologist she deals with the no first of 3. So we believe education. And it's it's a great thing. So these are great numbers for you here. >> I think you're set. I the sellers and Miley Hayden is our great job. We love working with them. So thank you very much. >> More questions yes or more better educated. So through my education being on the school board and what I've learned is that and it was repeated today, there are. There us doesn't like doesn't like I was a term called aggregate are trying hard us. So, but it appears that only applies to money that you borrow. It doesn't apply. So ERs is okay with the top portion of this chart, you can could it 1 Million. 25 million, 30 million that are not worried about that. They're worried about money that you borrow and invest and then you're trying to make money off of money that you invested. But we can earn as much money as we want and are, quote, unquote savings account that we have with money that we didn't borrow. All right. Thank you, absolutely. All right. Thank you. >> And we will continue marta markets to see, you know, when it's a good time for us to, you know, find their alternatives. We constantly see where the market is. But right now, this the most cost efficient way to manage your money is to recruit these pools. And if you questions. Thank you for your time. Very much. We have >> board. I know. Yeah, you see. That's the brief recess I welcome back. >> We're going move on to item number 3 update on enrollment. And futures. >> Schools. >> Which we just got talked about with cops and building future schools. So ties right in. So DR. Weiss on it that you first and that you guys Thanks, Rick. >> Good morning. CHAIRMAN Board members, thank you for spending time with us today. Now that the school year well under way. We've been in session for a month and bored with your approval of the budget at our meeting on Tuesday night. Were settled into this year and really ready start planning for next year beyond. And of course, we're always working in the in multiple years this presentation is a collaboration of a lot of different departments. A lot of different leaders. And so you've got a panel in front of you, but we're also going to change out some folks during the course of Presentation we want Asked that as you see questions, risk questions come to you on each slide. We would love to have your questions as we go because this is a lengthy presentation. It starts a little broader than by the end. Gets pretty detailed. So just giving you a preview of where we're heading. But again, this is a multi department collaboration. Across all 3 divisions of the organization Finance Operations instruction. We've really been working on this some have been working on this really before I even arrived. But you MAY remember that at the end of my 100 day entry plan, one of the areas that I identified for future study was student assignment. Our enrollment processes. Competitiveness in the change in public education landscape. And so and so some of those concepts studies meetings are reflected in this work. I want to highlight in addition to the individuals you're going to hear from today. I want to thank der Leyen Black who's a supervisor, you know, our information technology department, she provides our enrollment numbers. Make sure that all our data gets up to Florida deo we so that we get all of the funding that we're entitled to helps with a lot of our enrollment projection. So you won't hear from her from her today. But she gets a lot of work done for us. And then of course, Mike Pendley, our executive planner who is providing all of our kind of growth projections and understanding where our community is headed. And then again, thank you to the deputy superintendents and MR. Chapman, you won't hear from all of them today. But again, this has been collaborative work across our organization. I also want to thank Dr Rio with MISTER Richardson for being You have an opportunity here from both principals today and thank you to their assistant principals who are holding down the fort so they can be with us this morning. So we want to begin with a very brief enrollment update. We could spend a lot of time on this one slide. But this is really just a set. The context for the work ahead. The table on the left again is quite but it shows you we were we were at this year versus last year. There were 2 days apart in the counts, but but it's pretty close and board members, as you remember, the 10 day count is important because that's where we look at all of our enrollment across schools. And we make sure that we're properly staffed moving around a personnel if necessary. The great news this year is that we did not have to move anyone around, but we did have to add some allocations because as you can see, our numbers are up so data from last year district operated schools. We're at 41,076 students, Day 8 this year. 41,631 students so district operated schools and sites were up the grand total of 555 students. Our charter schools were up 452 students for a total growth of just over 1000. This data does not include are voluntary pre kindergarten programs because they're not funded in the same way as our k through 12 programs. These numbers do not include home education. Those families register with the school district, but that don't have any regular involvement, additional funding involved. So we don't include that group in this count and then are the various of Florida empowerment scholarship programs commonly known vouchers are not included in these numbers, either. So again, we see that overall in manatee public schools. Enrollment is up. What's notable and not displayed on the slide is that? Our district operated schools were well above the staffing projection in the state projections. So if you argue if you took the overall number that's in state document. Send you back out all of the different programs and then you back out the charter school projections. We were actually projected to lose students this year and not only did that not happen, but again, we're up even more than we projected. Our group is mostly at elementary and that's positive because actually middle school has been an area enrollment was down a little bit and that's flattened out. As an additional note and this is typical, our actual numbers are higher than these today because we always see little bit of a spike in enrollment after with the Labor Day holiday. So so again, numbers certainly appear to be healthy and we're committed to continuing to grow that enrollment. Talked with our leadership team and our principles about a competitive family centered mindset. So the reality is we're in a choice environment. How do we help understand what our family's needs and expectations are. And then how do we adjust policy practice and strategy to be sure that we're that that we're meeting those families and where where they want to be. And so really, right now, that's looking at 2 areas. The first is enhancing the quality of our articulation, particularly movement between elementary and middle schools and what that handoff looks like. So you'll be seeing some different approaches there. And then also continuing to review the innovative programs that we have how we market them and also how we promote k 12 feeder patterns in school. Pathways, for example, Guy Harvey, right, Anna Maria King and then up to manatee high. How you build programs across schools and grade levels. One of the new requirements that we've put in place this year is that each of our principals will spend a day on the on another campus. That's different grade level. But within their feeder patterns so that our principles are seeing the programs at their feeder schools in action and spending time with those principles which will improve our our communication and our facilitation of articulation. Any questions of moment? >> Yeah, I have and the funding of fefp is that doesn't based on the date 10 day count or is it based on the estimate and is it our estimate for is that the state's estimate? >> Great questions. So really the process starts with the legislative session. This black and our leadership team. Look at some different projection models and trends that we ultimately send we're agree to a target. Enrollment number with deo. We that helps facilitate the formation of the state budget. The day 10 count is an internal metric for us because we have to get everything in place to be sure that we're in complaints with the class size Amendment by survey 2, which is Mid-OCTOBER, that Mid-OCTOBER count, which get sent up to Tallahassee is what confirms our funding. That data comes back to us in the form of the dollar amount in JANUARY. When we get what's called the count, 3 report. And then that happens again in FEBRUARY to bring in our second semester funding. >> But if the state does its budget based on estimates and let's say they estimate everybody's going to be down. And so the the fefp allocated in the budget as well. And everybody comes That's when allocation kicks in. Right? We are all. >> Right. So we're going to submit our higher numbers. We know that other districts are down enrollment, right. So it goes through that process. It is important that the release of that JANUARY calculation is important because that's kind of squaring up point. And there is always the possibility of her probation, right? If if everyone is up and you start funding ceilings, proration as possible. That's why a fund balance is important in case those things do happen. That's what you want to have. A healthy reserve. Being up is certainly better than being down. Our legislators. >> Oh, no. Just like cops presentation. Everybody wants to come to Florida. Certainly. Are they protecting any kind every year? The growth? Not just first second 3rd count, but for 25, 26. Are they looking hope we are because is getting. You know, not I'm not just out of control as its. We really need to be looking like we do strategic planning the 5. You're planning a really can't find your student growth planning. Yes and no. I mean, those models exist I I would argue that once upon a time they were more reliable than they are now because we are in a more competitive school choice environment, right? And so >> we We know that our families. Have an array of choices and in so it's different from how it used to be, because, again, you can. >> You know, you can build algorithms that run data on. Here's new construction and historically, here's how many we get from certain size. Houses are certain types of housing. But the reality is >> they can go to charter. They can take a voucher. They can go nonpublic altogether. You can go home. It. You have so many different options. And that's where that that's where we have to be. Sure we understand what are families needs are great and adapt. Our district so that we are competitive because We want all of this to balance out. At the end. We don't want to build schools that are empty, right? We also don't want to have all of our schools overcrowded, but it's a market environment and so the planning is much more complex than it used to So the answer your question is absolutely yes, we're planning, but there are more variables than ever before. And I think that's the challenge that state saying every single school board in Florida right now. My. >> Just real quick. Just quick in and here. First, I want to say I do wish to discuss that. I looked at last night and we'll see these protests are gone. But I think is fantastic. I think this is you talk about marketing. Invite 9, 0, this is weird to say the school district like we've got a market ourselves and we've got to make, you know where the choice. But we have to like this is the competitive environment, which is. I got compare out compete. So like But my thought is look at enrollment data MAY. If I'm wrong here MAY be absolutely wrong. But I thought we were looking at our numbers with a as we go to the budget process. That charters and this is, again, we do controlled and they say, hey, to the state, we think we're going x number enrollment work date projected to be like somewhere between like 11, 5 12,000 ethically made 10, 3. I correct in that? You are CHAIRMAN. So when our charters each project to their enrollment, when you aggregate it, all of that, I think as of the end of MAY. >> That number was well over 12,000 and the s 12, 3. And some of our charters reduced their enrollment targets over the summer. But overall is a group of schools. They're coming in lower. You know, the then projected this is the this is where, again, there's a science to this. But a lot of this is art and a little bit of crystal ball. If we had presumed 100% of that target for charters and 100% of the numbers that the state was projecting for vouchers. We would have staffed at 39,000 and change. And we would have been way, way under right in our classes. Massively So the good news is we want. We felt confident that the numbers were going to come in higher than taking all of those subtractions out. We didn't come in as high as we ended up, which is why we've put some additional teaching vacancies out there. The other option, right? Or the other reality you prepare for is that if you over staff and the numbers don't come in, then you're either spending against your fund balance. You are. Potentially releasing people from employment, which is the very last resort because you're going to need those people later as employees go on, leave forward, move out of area or whatever. And so you never want to do that. And again, that's why you want that healthy fund balance. >> Yeah, and it's about I think the whole thing is it's definitely about Yeah, just I would just point out I I thought it was around like 12 and but I think that also to to the point, the rest of this, this And I don't think man says common question so we can move on. But to the point, the rest of this, we're removing our thought process is you know, I think did that. >> Charters. I've always had for the smaller schools size typically. So we we do do what the parents want a little more. We're a little more free to some things here there. Whatever. But I think that if if our mindset becomes that of connecting with >> the the the community and the parents. >> But also we had things that that we can offer that just Chuck charge came to be quite frank right. I think that's gonna be huge for us to w so appreciate appreciate you can you can go. >> But CHAIRMAN, you're exactly right about that. And actually, the might the that this swearing-in day writers, July 3rd, last year, I said my one of my goals here was how do we individual lives? For students but take advantage of the scale that we have right. To your point, we have a ton of programs and options. It's all about connecting kids based on interests and needs and family goals and that in the scale is our advantage. So how do we make it feel small and personalized with the advantage of scale? So with that enrollment update, we're going to spend much of presentation talking about this next wave of of school construction and again, I when I arrived here, this plan was in place. This leadership team is executing the plan with some adjustments. You know, as as enrollment has continued to shift as growth has continued to happen, as as I have shared in another presentations board members that you that ended in a in a district our size opening 5 schools in 3 years is is aggressive exciting. You know, if you if you the size range here, the distance from elementary, one to that high school. He's really only about 21 miles between the 2 schools. So to be adding 5 schools over that three-year time period is a is a really unique opportunity to be clear. We're really trying to achieve 2 things with this next wave school projects. First to relieve. The schools were were over capacity to get them back closer to how they were designed. But also to do a little bit or to have a little bit of excess capacity as the community continues to grow. And again, the the trick is is not to build new schools that sit empty, nor nor to Nordic. Get to the point where you're out of room everywhere. You always want to have some capacity in reserve in the right places because we can't quickly. Just, you know, within within single school year. Keep in board, you know this. But just for the benefit of of others who MAY be listening, these 5 schools are not the only strategy that this board is using to expand capacity. We also have added single buildings at various schools, which we can do a lot less expensively. And so and so we're we have green space available and where we can add a building her. They're on an existing site that strategy has is already in play. So really going to be at. At the at the next to schools that opened in AUGUST with 25. That's the focus of the remainder of the presentation. And of course, we've already talked this morning about how to finance the 2 elementary will open in AUGUST of 26, but you know a key point to this is that we're phasing these in over a three-year period because this still is a relatively small geographic space. The openings of the schools are very interconnected. And when we talk about each of the schools that opened in AUGUST of 25, we're not proposing a rezoning right now to get those schools open in AUGUST of 25. Now, if after this presentation and the board thinks about it, if you want to initiate a boundary, change now, we certainly are capable of doing that. The problem is that because when you adjust boundaries, you don't just impact one school. You impact the surrounding schools. We believe that we can't build attendance zones for the 2 schools that opened in AUGUST of 25 without running the risk that when we build zones for the schools opening on AUGUST, 26, we wouldn't have to move those lines again. And I think probably everyone sitting in this room would prefer to not have a family moved twice in a short period of time. And so we've had to be creative about how to achieve our goals with the 2 schools opening in AUGUST of 25 and then have a clear plan for the 2 schools opening in AUGUST of 26. So again, there's an interconnectedness to the work and that's why we're doing this workshop today, too, to propose how we're going to do that without just doing a traditional boundary adjustment and then doing it again in 12 months. And again, 12 months after that, right? We want to try to avoid that for the benefit of families. >> I think we'd all rather want, you election that we >> doing a real quick question on this map. And showing how the major. Rhodes I'm just wondering, is there a map available to show? All existing No same. I mean, there's only showing details. Record a >> We certainly him do that. I think actually this is this. This has been used by the district for some time to show general, ok, right? Board on the 9.24 meeting agenda. There is a there is a purchase approval request from the staff related procuring the new mapping program that will help us facility. The boundary change process when it's time. That gives us incredibly granular detail not just for these areas but of the entire district and that that software products will actually help multiple departments with multiple projects. So again, we're bringing that to you for approval of that We have some other products now. Certainly that do those things and but we want one system where we can build multiple data layers. You know, look at area, right? Looked right. Look at how everything just when when you do start playing with changes to attendance, boundaries. >> The other map it has been used before and correct me if I'm wrong. I think >> there's been. >> a legend out of I think it does not mean news right now. But alleged out the bottom where it says the school and kind of the intersection of the roads all. >> Thank you. Putin making member seen but I think that we did. >> That was a summary. >> again and are Okay. >> So was it is on this map. But aps seen okay. >> Okay. So having kind of set the context for all of this >> I'm going turn this over to MR. Ja'marr clerk came on board in JULY. We're currently in a transition process where the Office of student assignment will move from it to under district clerk and he'll be leading this competitive. Family mindset approach. So I wanted him to justice or to share some thoughts with you after being on the job here about What about 3 months now? >> Not that I'm counting Thank you, Dr Weiss on Good Morning Chair. Good Morning Board. My name is Jim. Our Clark and the new director of student in Rome. I'd like to continue with the spirit of gratitude and highlighting collaboration by first really thanking my team at at let's say off the student assignment. In addition to darling, black and all of ours. School support specialist I'm sorry, school specialists are specialists that. A specialist I'm sorry. I also would like to make sure I think MR. Henson are our focus team and the registrars that are at all the schools around the county. It is essential that we work as a team and welcome all of the students into Manatee County and these staff on the frontline. And I really am appreciative of them working with me in the the few months. So yes, MR. Mccarthy McCarthy is here. And is he part of this group >> Well, he is a part of the team and I am thinking that has such a integral part of making sure our students are enrolled, whether it's that our bus drivers that are getting them. Are our food service staff that are feeding our students, make sure they're healthy. And all of our people working at at at sites. Just curious if he's because I think he's parts to it. No, right You're going have a McCarthy, Evan Mobley. He's he's MR. Carney's director of Assessment Accountability reports to MISTER Genson. >> Does all of that instructional performance day to work? Also he's some great work around data layer in specific variables. And so, yes, we've turned to him anytime. We have a complex problem. Then he very quickly gives us a solution yet. >> You know, I've never seen I'm not sure he exists >> Sorry >> for the brain freeze. Earlier our state reporting sp