BOARD OF TRUSTEES SPECIAL MEETING
Administrative Conference Room
August 30, 2007
12:00 noon
A.
CALL TO ORDER
President Tim Jones called the meeting to order at 12:10 p.m. with
five members present.
B. DECLARATION OF QUORUM
President Tim Jones, Vice
President Mary Broussard, Secretary Randall Pitcock, Trustees Garland Watson and
Marc Chaloupka were present. Trustee
Steve Aldrich arrived at 12:11 p.m.
Trustee Charlotte Slack was absent.
C. BUSINESS AND OPERATIONS
C-1. Receive report on the Investment
Strategy and plan for investing proceeds from 2007 Bond sale
Superintendent
Eddie Coulson recognized Deputy Superintendent for Business and Operations Mike
Ball who reported to the Trustees as it pertains to CSISD’s Investment Strategy
and Plan for Investing Proceeds from the 2007 Bond Sale. The
Investment Strategy is significantly impacted by the arbitrage rebate rules
wherein the District will not be able to keep earnings on the bond proceeds
that exceed the effective interest rate on the bond debt – 4.72 percent. Any interest earned above that rate must be
paid to the IRS. Additionally, we know
that the District will not meet any of the exceptions to the arbitrage rebate rules;
therefore, there is no incentive to seek investment returns above the arbitrage
rate – 4.72 percent.
The
Proposed Investment Strategy for the 2007 bond proceeds is:
a. To protect the security of the principal
b. To provide for liquidity when needed
c. To seek a fixed rate of return as close to
the arbitrage rate as possible
The
Investment Options for the 2007 Bond proceeds are:
a. Governmental Investment Pool Funds
b. Individual Securities
c. Flexible Repurchase Agreement
Recommended
Firms with which the District would make investment transactions:
a. Southwest Securities
b. First Public
c. First Southwest Asset Management Company
Discussion
occurred.
C-2.
Consideration, discussion, and possible action related to future
board meetings related to the 2007 Bond Program
Superintendent
Eddie Coulson led a brief discussion regarding the schedule of a Special Board
Meeting on September 6th at 6:00 p.m. related to the 2007 Bond
Program.
C-3.
Consider approval of a list of brokerage firms with which the District
would be authorized to make investment transactions
Deputy
Superintendent Mike Ball reported that the three firms that are recommended by
the District for inclusion on the District’s listing of approved Brokerage
Firms are:
a. Southwest Securities
b. First Public
c. First Southwest Asset Management Company
The
District currently has a business relationship with each of the recommended
firms. All three are reputable and
capable firms. They each have served the
District well in their respective roles.
Discussion
occurred. Trustee Steve Aldrich
requested a report of detailed investments as it pertains to the Bond proceeds.
MOTION 3815: I
move approval of Southwest Securities, First Public, and First Southwest Asset
Management Company as firms with which the District would be authorized to make
investment transactions, as presented.
The motion was made by Trustee Steve Aldrich and seconded by Trustee
Marc Chaloupka. The motion passed with
six ayes and zero nos. Trustee Charlotte
Slack was absent.
C-4.
Consideration, discussion, and possible action related to a report on
various projects associated with the 2007 Bond Program construction program
Superintendent Eddie Coulson discussed two projects that were
identified in the State of the Facilities Study conducted by VLK
Architects. The projects are
time-sensitive and are in preparation for the Athletic Facilities construction
scheduled to begin immediately at the conclusion of Football season. The Grounds Maintenance facility and storage
needs to be relocated and Replacement of the CS Middle School track, including
drainage issues at CSMS. Discussion
occurred.
President Tim Jones asked that a standing report at the Regular
monthly Board Meetings be a Construction Report.
D. ADJOURNMENT
Without objection, President Jones adjourned the workshop meeting
at 1:00 p.m.
TIM
JONES RANDALL PITCOCK
PRESIDENT SECRETARY