The board will now convene an open meeting. Today is Monday, November 12, 2012, and the time is 6.40 p.m.
Katy ISD · Regular Board Meeting
Katy ISD Regular Board Meeting, November 12, 2012
Find something in this meeting
Search every word of the automated transcript. A result moves the recording to the moment the words were spoken.
In this meeting
- 0:00 to 41:26 The recording
Full transcript
Automated transcript, not human verified. It is a way to find a passage, not a quotation.
The recording
The board met earlier this evening in closed meeting. Any action arising from discussions in a closed meeting must be taken in a subsequent open meeting.
Mr. Fraley, will you verify that we are in compliance with the provisions of the Texas Open Meetings Law in regard to the notice for this meeting?
Madam President, we are in compliance. The first item is the second amendment to post-closing
agreement associated with district-owned property.
Madam President.
Mr. Adams.
I move that the Board of Trustees approve the second amendment to the post-closing agreement
associated with the district-owned property to Southwest Corner, Stockdick School Road
and Peak Road intersection, currently identified with the future elementary, junior high, and
high school, that the Board authorizes the Board of President to execute any subsequent
amendments to this agreement.
Second.
Second.
I have a motion by Mr. Adams and a second by Mr. Proctor
that the board approves the second amendment to post-closing agreement associated with
district-owned property at the southwest corner of the Stockton Dick School Road and
Peak Road intersection, currently identified for a future elementary, junior high, and high school,
and that the board authorizes the board president to execute any subsequent
amendments to this agreement. Any discussion? Hearing none, we'll proceed
to vote all in favor raise your right hand and say aye aye motion carries seven to zero
this is the hiring and accepting resignations of professional contractual personnel
matter president mr de braille i move that the board approves the
personnel report as recommended by the superintendent second
have a motion by mr de braille a second by mr mahalsky that the board approves the personnel
report as recommended by the superintendent any discussion hearing none will proceed to vote all
All in favor, raise your right hand and say aye.
Aye.
Motion carries 7-0.
Okay, do we have any scouts here this evening?
I don't think so.
All right, we have two consent agenda items.
So, Ms. Stevens, the floor is yours, ma'am.
Good evening, President Fox.
superintendent Fraley and members of the board I have two contracts for your
consideration the this evening the first one is the proposal for maintenance and
repair services for elevators and wheelchair lifts this is a rather small
contract that you typically don't see but we are reaching the limits now where
that does require board award to have this type of contract in place after
evaluation by the from the proposal submitted the recommendation is to award
to A&F Elevator Company as the primary vendor.
And this will provide monthly maintenance service for our elevators and wheelchair lifts at all of our locations
and the annual state inspections for those items and any service calls that are associated with those.
The recommended primary vendor has the lowest overall cost for all items,
and this company has been doing this for a while for us.
And having the same company provide both the monthly maintenance and the annual inspections
will represent some efficiency in how we operate.
The recommendation is to award EMR elevators and Home Elevator of Texas as secondary vendors
in the event that ANF for some reason could not meet a time requirement for service.
And occasionally this happens where we have something that's urgently in need of repair
and we have to bring someone else in.
This will be a one-year contract with an option for four additional one-year renewals,
and the anticipated annual expenditures will be $50,000.
And it is coming from the annual general operating fund and or special revenue funds.
Any questions?
Okay.
Proceed.
Okay.
The second contract I have this evening is a proposal for the repair and rebuild of motors, pumps,
and related equipment.
This, again, is for the maintenance department.
department. After consideration, the recommendation is to award to Energy Efficient Motors and
Controls as the primary vendor. While they are not the lowest in pricing, they are the
one that we have the most experience with and it's been very successful experience in
both timeliness and effectiveness of the repairs. And the recommendation is to award Southwest
Industrial Motors as the secondary vendor and we will give them some non-critical repair
prepare jobs to do for us so that they can begin to build a successful relationship with
Katy ISD so that perhaps we can indeed look at awarding a lower cost vendor in the future.
For the discount section, we will award both all vendors submitting and we will do price
comparisons for any parts that are needed and this will be a one-year contract with
an option for four additional one-year renewals.
Annual expenditures is anticipated to be $50,000 coming from the general operating fund and
and or special revenue funds.
Question?
Dr. Proctor?
Is this something we routinely do as far as motors and all?
Yes.
Yes, sir.
We will repair those that we can that are the higher, the more expensive motors.
The very inexpensive motors we'll just generally replace.
Okay.
But they do try to go ahead and repair anything that would be more cost effective to repair rather than replace.
And we've looked at like say one of the high-end ones have we repaired a multiple times. I mean is there a point at which
Maybe we ought to think about replacement
I do know that they give that consideration when they're looking at cost
They will always get an estimate of cost for repairs and compare it to the replacement cost before they proceed with anything
What what I was talking about is okay your parent two years ago
and then you repair it this year and you repair it next year.
Ms. McDonald probably could answer that better than myself,
but I'm sure that they do get that consideration.
Yes, sir, we do.
We keep up with what we've spent on each motor or pump,
and we do replace them when it gets to a certain point.
The only reason I ask is I've been involved in replacing water feature pumps over and over.
And there's a point at which you say, wait a minute.
Right.
We've spent more repairing it than we've been replacing it.
Thank you very much.
You're welcome.
No more questions?
Thank you, Mrs. Stevenson.
And next, Dr. Harris is going to talk to us about growth units.
Good evening, Madam President and Board and Mr. Fraley.
We're requesting approval of 15 growth units.
This will be used for teachers and instructional staff on campuses as we need those numbers
of increase by growth of students.
We are down to one of the growth units you'd given us in the summer.
Dr. Harris, how many did we have to start the year with?
I believe we had 20 this year.
20.
Mr. Huckabee.
Dr. Harris, is this group here, is this for dealing with where we thought we were going to have overages
at the elementary and stuff?
We have already addressed those issues
that we talked about when we did the waiver.
Our classes are mostly 22, 23 at the most.
Now, you could go on a campus
and they might have 23 or 4 in a class,
but they have 19 in another
because they're doing something on the campus.
But we addressed that right after our meeting, sir.
But this is expected growth between now and December.
Morton Ranch High School is a good example.
They're needing three growth units
to address their needs on their campus right now.
Okay.
Any other questions?
Okay.
Thank you, Dr. Harris.
The next item we have is we're asking for one unit in the Department of Other Languages will be for the Newcomer Center.
Actually, this person would be split between the two newcomer systems, and it's because our numbers are large.
And this is also paid out of a grant.
It is not out of the local GOF.
And the contract does state that if the grant funds don't continue, then the position does not continue?
Yes, sir.
The position will be posted that way and the contracts will state that.
The position is fully funded by the grant?
Yes, ma'am.
Okay.
Any other questions?
Thank you, Dr. Harris.
Thank you.
Rhonda Ward will talk to us about annual course additions, deletions, and revisions for the
next school year.
Hi, Mrs. Ward.
Good evening, Madam President, members of the board, and Mr. Fraley.
The Teaching and Learning Division each year considers course proposals for new and deleted
courses as well as highlights the major revisions for next year.
The course proposals are submitted by campus staff like teachers or principals, and they're also submitted by central office staff like the curriculum coordinators.
When we consider a new course addition or deletion, we think about things like how much the resources might cost, what kind of teacher certifications are required, does it generate student interest?
Would it be a graduation requirement? Would there be online considerations?
considerations. So with all those considerations, the teaching and learning division then gives
the courses a lot of scrutiny. Whenever the course proposals are being finalized, we vet
them through a number of groups like the executive directors, like the assistant superintendents.
We go before the campus principals to get their input. So the course additions that
we're bringing to you tonight, there are two and the first one is technical writing for
for the EOC.
The end of course exam for writing, the campuses right now might provide assistance for those
students who need extra work with some after school tutorials or a Saturday tutorial, sometimes
embedded during the enrichment period during the day.
But this new course proposal for next year will count as an elective credit toward a
diploma toward a graduation requirement.
So the students can be enrolled under the direction of an English teacher, not for English
credit but for elective credit and get the extra assistance that they need for
the writing EOC. So that's one new course addition we're proposing and the second
one would be a course called Earth Space Science. This would be a fourth year
science graduation requirement. You know Katy sits in the heart of the energy
corridor and Houston calls itself home to many oil and gas companies. So with
that those employment opportunities requiring often a physical science
degree, we feel like this course will start generating student interest in
those careers. Two of our campuses did some major surveys trying to generate or
find if there was student interest on that, so that's where this course
initiated. We're thinking that not only will the kids take this as a fourth year
science requirement, but even a fifth and sixth year requirement, not requirement
but elective, because they're so interested in the science courses. The
The Earth Space Science is an applied science class.
It has a lot of NASA interest, and they're sitting right in our backyard.
So we're hoping that Earth Space Science will, lots of kids will sign up.
We know that our Odyssey, our online technology for course, kids can earn credit.
There's already an Earth Space Science course in Odyssey, so this does lend itself to an online component.
component. We're thinking that Raines High School might be able to teach this science
course in a blended format. You know, it's hard to have science as just an online course
because of the lab requirement, but in a blended setting that this course could lend itself
to an online component. Those are our two course additions. Then we've got some that
we'd like to propose to be deleted. And that first course is the elective exploratory survey.
It's a junior high course and in sixth, seventh, and eighth grade right now the state has required a full year fine art requirement.
The survey lends itself to sampling different electives, but it's clear now that the state wants a full year fine art requirement.
No students are enrolled in this course now and we would like to delete it since no students will be enrolled in the future.
The next three courses are special education courses.
The first one there, the applied horticulture science,
Those skills are actually taught now in the applied daily living skills class in special education.
There's a model where the kids in life skills are paired with best buddies, for example,
and they have a horticulture project that they're combining with their best buddies to meet the needs of that adult daily living skill class.
The next two courses are fundamental courses for special ed.
And what we'd rather see are special education students having their needs met in a regular ed setting.
So instead of a fundamental reading application class,
we would put them in a regular ed reading class with an IEP or in-class support
so the students could be successful there.
If their skills don't warrant that setting,
then they have their reading class taught in the applied setting.
The fundamental health education also lends itself,
instead of being taught in a restrictive environment,
to putting them in a class with regular ed students with in-class support so they can be successful in that environment.
If their skills don't warrant that setting, then they can still have their health graduation requirement taught in the life skills setting.
The next course for deletion that we're proposing is called Principles of Law, Public Safety, Corrections, and Security.
It's a Miller Career Center course.
And a few years ago, Miller Career Center designed a way that kids could get an internship.
internship. The first year Miller Career students take Law Enforcement I and Civil Criminal
Courts Procedures for a two-period schedule at Miller. Their second year they take Law
Enforcement II and they have an independent studies class paired with a study hall and
that allows them twice a week to go off campus to get real world experience with direct interfacing
with judges or police officers or some other type of law enforcement. No students have been
in this enrolled in this class for two years. It is not an articulated credit for junior college,
so Miller Careers is proposing that we delete this class. They are not using it. No students
are enrolled. Another course for deletion would be a special topics class, American Studies.
The tax test is for 11th grade social studies. Teach is taught a strand of social studies,
including the American history class taught in eighth grade.
So if you moved in to Texas or the U.S. after eighth grade
and never had the required course to help you pass the tax.
So this course met that need, but since tax is going away,
next year we have an end of course.
We don't have tax, so we don't need this course anymore.
The end of course will strictly test what's taught in 11th grade U.S. history,
the end of course exam.
It won't need an independent study class.
class.
And the last course scheduled for deletion that we're proposing is electronic media.
We've got our tech apps teachers now who are fine art certified or getting it at the January
test.
And these students now are taking digital art and animation.
They've just not chosen to sign up for electronic media.
We've never had a section make of it.
It's been offered for a couple of years.
So we're proposing that this course be deleted.
needed. Then we're going to highlight some of the major revisions. I've got three of
them to bring forward. One of them is the cosmetology class. That fee is going up $78
next year and we needed to embed that in the course description so students would know.
Now I've been in touch with our grant finance clerk who is in contact with the vendor to
find out why it's going up $78. It's required by the state. These kids use this in cosmetology
one and cosmetology two and they use it for their state licensing exam so it's
critical but students who go to Miller who have a hard time paying for this
they can either go on a payment plan or they can apply for the scholarship that
they have over there to help them afford this kit this work yes you talk about is
required by the state what's required by the kit the kit itself is going up seventy
eight dollars okay so so it's a state requirement that's causing us yes yes
Yes, we're not choosing to add any extra equipment this time.
All right, thanks for joining us.
Thank you.
And then that med class has a $5 increase because scrubs are going up.
And then the good news is we have a web design class right now that we have 407
students enrolled in.
CTE is introducing a course next year called Web Technologies.
We would put our students in the Web Technologies course,
which the TEKS are nearly identical.
And that way, we'll generate weighted funding for
students being in a Web Technologies course.
Those are our addition proposals and deletions.
And may I answer any questions?
Dr. Proctor?
Just a question on cosmetology.
Do we follow up and see how many students get placed once they finish the program?
I don't know, Dr. Proctor.
And...
I can find out.
And the other thing we probably got to look at is the wages that they make.
only because we ran some programs like that where I was and we found out that
while they spend a lot of time a lot don't get placed and those that do make
minimum wage and so we kept the program but we let people know this is not we do
We do know that some of our students are earning this license as a way to fund their education
while they're in college that they'll be working.
That's great.
Most of the people that made money who came through our program ended up owning a shop.
Let me find out some placement figures for you.
Just no big deal.
Okay.
Mr. Griffin, you had his hand up.
Ma'am, the technical writing for the course edition, is that going to be available at
all the high schools?
Every high school will have the option to implement that, and I would think that
every high school will be happy to be able to offer that elective course by one of their
English teachers.
Okay, and will it be like one class for 9th, one 10th, one 11th, or will it be one
class and then any age group can then do it if they need it?
The persuasive writing and the expository writing skills will be taught in that, with
within that section.
And the campus can still determine what grade level
goes in, what's most appropriate.
It can be taught as a semester course or as a year-long
course.
Now for next year when it's implemented, I would
anticipate probably a sophomore section and then a
freshman section.
It's possible they could have more than one section.
So it would be up to the campus to decide if they
wanted to blend that.
OK, thank you.
Mr. DeBrell, you had a question?
The technical writing course, we're doing this because of the end of course exam, correct?
Yes.
Are we in any way tracking the cost that's being added to the district
based upon these new state testing requirements?
It could be that it would be no cost on this course because instead of a study hall, for example,
a teacher might pick up an extra section of this, adding no additional staffing units.
But we're having to put it in because of the new testing requirements.
It would be an option for a campus to meet the needs of their students.
They could still offer after school tutorials or the same way they've been meeting that
need now, but this is another option for a way to, what the campuses want is to be able
to have a way for a kid to earn college, high school credit for the diploma.
While working to pass the test.
But it might cost an extra unit if there's enough demand for it that we would need an
extra unit.
it. Now I have done the master schedule at my campus for many years and depending
on the number of kids if we had a huge demand they would might come they would
have to come out of maybe another elective a speech course so I think it
would just be shifting kids can only take so many classes during the school
day would be shifting where you have your teachers teaching what their
assignments are so I I'm not convinced that it would require a unit. Okay. Mr.
Mr. Huckabee.
Being as tight with the EOC, is this mainly
going to be more like a remediation for the kids that
don't pass the EOC?
Well, the writing process lends itself
to helping other courses be successful.
Rather than remediation, it might
be considered acceleration, where they're
going to learn how to do research
and then develop those into the conventions of the mechanics
and the usage of the grammar.
summer. So I don't think that it would be considered remediation from the teacher standpoint
and it would not be billed at that. I think that the students are having such ownership
in the needing to pass the EOC with a cumulative scores. I think students are realizing the
importance of it and I think many of them are getting more eager about getting the help.
Plus I think they'll appreciate not having to go after school.
I guess what I was because when I read it technical writing for EOC it makes it
sound like there it's more like in the remediation or for people who haven't
passed that's why I was kind of asking that question well I'm sorry we thought
we might just call it technical writing but we didn't want to get it confused
right so we wanted to make it real clear that the purpose of it was for those
students needing help on the EOC. Okay and the second question I had was on the
the cosmetology kit is that the kit is that like their clippers and everything
else? Shears and hair I've learned that they start with long hair and as a
semester goes they keep cutting it shorter as they work into short haircuts
there's different colors of hair in there but yes they do and the smock is
in there there's just everything they need for the cosmetology license. Okay
They would not be able to practice on Mr. Fraley or Mr. DeBrell, would they?
Can I get one of those kids?
Do they have hair growth in those kids?
I know at our Cosmo, we have our group of kids do a fundraiser over at Langham,
and they call it Princess Spa Day.
And they get all the teachers, kids, or girls rather, not all kids but girls,
and they come in and they do their nails and they do their hair and they have a pizza and they have
a um the one of the princess movies going and they and they make a killing off of all of us
because there's 300 something of us teachers there and so you know it's a it's a we can go
drop them off at nine and pick them up at one and and they have a full day and they come out with
their you know they're all glitched and glammed and they love it and it's like 20 bucks and i'll
spend 20 bucks for her to have fun for four hours princess ball i have made a note of that thank you
it is there is a waiting list matter of fact i got a call on thursday on my cell phone from the
teacher saying is she coming that's pretty neat mrs ward i had a question about the junior high
when you talked about a fine arts credit a year long are are we allowed to have a fine arts credit
high school fine arts credit from junior high? Not high school. It's just junior
high. The state wants a full year of a junior high course that is fine arts.
It's not high school credit. Now if you're asking are we having high school
credit in junior high, we have an art class where you earn high school credit.
That's true. But not fine arts. But the state is now asking every student have a
year fine arts while in junior high. Yes. Really? Okay.
what fine arts means as a class?
Pardon?
What does fine arts mean as a class?
Yes, it is a course.
No, what contained in it.
In the junior high?
Yeah.
A year of choir, a year of art, a year of theater, band or orchestra.
Okay.
So the courses are already there.
Okay.
I appreciate very much the detail that you gave us this evening.
and knowing that many of these courses are already making themselves known that the children are moving on to something else
because we're offering such a great variety of courses that students are moving into things they really care about.
So thank you for being up on that and bringing us great recommendations.
Anyone else have any questions?
Just make sure Ms. Fox is invited to the spa.
I would like to be the princess spa.
Oh, yes.
And just as a side note to what Dr. Proctor asked,
I've been to the cosmetology place at Miller
and had my nails done and my hair done.
And we have certainly, as a board,
have invested very much in that facility.
And the girls there and guys are great.
And they love it.
And they talk a lot about using those skills.
While they're in college, they cut hair
to make their spending money and take care of things like that.
And so they love it there.
and I usually have lunch and then my nails done at the bistro thank you they
do like seeing but I'm I'm on the school board I think I just should do that you
know just serve that's what I do thank you
board members is there any objection to moving items one two or three to consent
agenda. So moved. Next we have coming who's presenting that to us?
Madam President we had come before the board a few months back a citizen asking
that we consider asking the board to consider naming the tennis course at
Taylor High School after coach Jim Mavity he's a legend legendary member of
the staff an outstanding job of beginning that program and taking it to
very high respectful levels since that time we received a number of inquiries
and and and from and and requests from folks in keeping with your board policy
that we have this named after him and and board policy does allow us to name a
portion of a campus or facility and that's at the board's discretion.
Staff cannot imagine anyone else having the name on these tennis courts at all and probably
is one of the most defensible renaming that we'll have before this board.
So all the procedures have been followed and now it's here before the board to say yea
or nay.
So the recommendation is to name it after Coach Jim Mavity.
Mr. President.
Mr. DeBrell.
We're going to consider doing this after Coach Mavity.
We have to make sure that we keep those tennis courts nice and pristine and clean,
make sure we don't allow any kookaburras to find their way to them.
We really have to make sure that that occurs.
curves.
Madam President, I would like to
not put this on consent.
I would like to. And have Mr.
Mavity be here when we do
this.
He's in town.
And there's a lot of
confidence from you in that statement,
Mr. Adams, that have him
present. Okay.
We will work on that.
Dr. Minnis has it down already, right?
right? Because he also is still very active
in substituting.
We'll give him a power blower with a good strong motor in it to blow the
cockaburras off the board.
This is called a blended conversation that just went way south.
Mr. Smith,
come and save us. Talk to us about
grant ratifications sorry if I limped up here my leg fell asleep on me hope I
don't put y'all asleep now in accordance with grant guidelines the board is to
ratify our participation in grant projects the attached list before you
has grants that are federal, state, and local that we've applied for and in some
cases have already received or that we've been awarded. These grants range
from 1.2 million dollars for a project tyke. This provides intervention services
for identified children from birth ages from birth through age three who are
developmentally delayed. We have idea B, discretionary deaf grant funds
for 51,000 visual impairment funds for 20,000 we have grant funds for the
regional day school for the deaf and we actually have a local grant for $500 to
pay the expenses of a Taylor high school band to travel to perform at the
Brookwood community so in total the grants before you list two million one
hundred fifty three thousand five hundred thirty dollars and it is our
recommendation that they be ratified by the board any questions any objection to
moving this to consent so moved okay on the November budget amendments we do
have three things that increase the district's budget of those are five
thousand five four hundred fifty dollars for the LVN overtime six thousand seven
hundred seventeen dollars for overtime for paraprofessionals who are required
required to ride a bus with a special needs student,
$35,600 to fund salary and benefit additions
to the crossing guards that y'all did last month,
and the remaining amendments are directly offset
between functions.
Again, approval of these amendments
will increase expenditures a total of $47,767.
Any questions?
Any objection to moving it to consent?
Nope.
So move.
Every year we are required to give you our annual investment report and set time of year.
So Mr. Moore will walk us through that.
We're having a little technical difficulty over here, but hopefully we can get through it.
This is an annual review of our investment policies and strategies.
Tonight we're presenting the annual review of those policies and strategies.
According to our investment policy, which is CDA local,
the district requires the board to review this information annually.
It also includes a list of our investment brokers and our authorized pools, our authorized trainers, and then an investment summary.
According to the Public Funds Investment Act, we have to comply with those guys.
Districts are asked or urged or required to address the significance of safety, liquidity, and yield.
and it's an old joke but it's called SLI, safety, liquidity and yield.
This year we're recommending that there's no changes be made to the investment policy
and the investment strategies also remain the same.
Kindly flowing through the documents that you have, my computer is out so we're going to paper.
You do see I believe where it says annual review of investment policies and investment strategies
and there's a page, there's a couple of links there to the actual local policies and legal policies if you want to read those.
We have those. The page behind it, or the slide, whichever, is the brokers that are authorized to engage.
We're engaging in investment transactions. Because of our pools and everything, it's been very,
in the interest rate environment, it's been very rare that we have used these.
but we send out questionnaires to these brokers to determine their qualifications before we include them on the list.
And one of the requirements is that they understand our policies and we'll comply with them.
We have that in writing.
And one of the reasons for that is we're a little bit more restrictive than what the law allows us to do.
If you notice, most of those are major Wall Street firms and banks.
The next page, there's a list of three pools.
TECS pool is the state of Texas pool, remember the state of Texas.
TECSTAR is another pool and then LOMSTAR.
And LOMSTAR, you may recognize that as the TASB, Texas Association of School Business pool.
We do invest in those pools.
The page after that, and I will not go through all those, but your trainers for the investment officers,
which is Chris Smith, Sherry Butterfield, who is our technical expert and is out ill tonight.
These are the places that are certified for us to go to our training,
and there's a list of about 12 or 15 of those.
The following page is a summary of the investments for the year.
maybe to give you an idea of how low the rates are. If you look on the far right hand side,
this is under the schedule, it says market value and weighted average yield. You'll see three-month
and six-month T-bill rates for the last 12 months. When that says 0.012%, that means 0.012%. And if
you look back over to the left, we're sort of proud of this, but the third column from the left
It says monthly weighted average yield.
That's the KISD weighted average yield.
Even though it looks low, it's about two to three times higher than what the T-bills are
paying.
One of the main reasons there is we negotiated a depository contract with our local prosperity
bank about, I guess, a year, year and a half ago.
In that contract, they pay us about 50 basis points.
We're guaranteed 0.5. Now the reason you don't see an average of 0.5 is we are limited in the amount of money we can get for 0.5.
And then the rest of it goes in the pools, and the pools now are earning around 0.15.
So when you weight it out, it's a lower rate.
There has been some confusion regarding our investments.
I can say that since I've been here, we've never lost any money on our investments.
and I've been here a long time and hopefully that will continue.
That's because school districts are really restricted in their investments.
It's either the Public Fund Investment Act directs us toward U.S. government
securities or agencies or the state investment pools that hold U.S.
securities or agencies and then they either have to be direct obligations or
or they have to be collateralized by the government securities or FDIC insurance.
And that's why the rates are so low.
As far as a government earning anything on investments, they're really limited on what they can do.
If you remember also, once a quarter we report all our investments to you,
and those are the detailed listings.
You can see what all our investments are invested in.
at August 31 which is our year end we actually were very limited we were using
our depository contract because at year end we have August 31 year end is
probably one of the lower times of the year that we have balances because we
receive our taxes in December in January and then we're on a spending trend after
that but we had monies in Prosperity Bank and the two pools Tex pool and
long star pool and there was about three hundred and forty million dollars in
those pools at the end of the year. There's also been some mention of LIBOR.
Just to kind of help you with that because I know it's in the newspaper
from time to time. LIBOR is the London Interbank Offered Rate. It's a rate that
is set by international banks in London. It's the borrowing rate. I got a lot of
this information from my financial advisor so pardon me if I read a little
bit. It is the borrowing rate that banks charge each other and is often used as an index in
financial transactions. It is not an investable security. We cannot invest in LIBOR. It's
an index of which a lot of financial transactions are based. The way Katy is linked to LIBOR
is that it's used in a hedge that we have. We have variable rate bonds that we sell.
those variable rates are subject to going up and down so those are based on
LIBOR and what we've done is we also have a hedge that's based on LIBOR so if
our payments go up on a variable rate the hedge also goes up which means we
receive more so we pay more on one hand and receive more on the other hand and
the two balance out and so that's how we and we do use LIBOR but that's the way
we do use it. It's not an investment for us. And I know it does get confusing.
Thank you. Dr. Proctor? You've probably answered this question before. What are
the sources of the funds we invest? The sources of the funds we invest? If it's in
the general fund, it's the state funding, it's property taxes. If it's on the
construction side, excuse me, on the debt service side, which is different from
construction debt service side is also property taxes and on the construction
fund is the bond proceeds okay so we ended up August for with 340 million
dollars invested right okay some of that was our fund balance out of our general
fund yes and we also had a bond sale in June July and so we were just beginning
to spend that money that's the reason that number would be that high okay
Okay. I think it was $150 million.
Okay. So when we have a bond sale, is there a restriction on how quickly we have to spend that money?
The restriction is that when we do the cash flows to determine the size of the bond sale, we look out to about 12 months.
So that money is normally spent from 12 to 18 months.
The other restriction is the IRS arbitrage.
They allow you a certain length of time.
you have to spend a certain percentage of your bond proceeds for six months 12
18 months 24 like that and they're watching it very closely because these
are tax-exempt bonds the IRS is looking for ways to maybe get some tax and money
and that's the way they do it okay thank you thank you
Any other questions?
Any objection to moving this to consent?
So moved.
OK.
Madam President, for your information,
we have the next meeting will be this coming Monday,
a regular board meeting on the 19th in this very room, 630.
Just a quick announcement, one celebration
of Seven Lakes High School band played at the state marching
Marching contest last week and did a great job.
And we have three teams in football playoffs this week as well.
We had a cross-country.
Katie Girls won region third place and second place.
And Seven Lakes was third.
And Cinco Boys were ninth or tenth, one of those.
So we've been quite busy.
That's all we have, ma'am.
It's all great celebrations.
And we just want to say thank you to our veterans for serving our country
and providing us great freedom that we enjoy here,
and we are very grateful to you.
Having no further business, this meeting is adjourned at 7.21.
Official documents
Motions and votes
Recorded actions
The motions and votes for this meeting have not been recorded here yet. Whether any were taken is not stated either way. The agenda and the recording above are the primary sources.