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Meeting Date:
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6/27/2024 - 6:00 PM
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Category:
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Finance
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Type:
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Action
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Subject:
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Consider Approval and Act Upon Adoption of an Order Authorizing the Restructuring of the Crowley Independent School District Unlimited Tax Refunding Bonds, Taxable Series 2020 Escrow Fund
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District Goals:
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Goal 1 Thriving Students Goal 2 Engaged Community Goal 3 Empowered Staff
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Enclosure
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File Attachment:
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Summary:
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CISD has identified an Escrow Restructuring Opportunity with one of the securities that was included in the escrow account that was established to pay off the bonds that were refunded by the District’s Unlimited Tax Refunding Bonds, Taxable Series 2020. As a reminder, CISD saved $25,084,543 in interest on that refunding bond issue.
One of the securities included in the escrow account, in the amount of $107,709,000 matures approximately 45 days prior to the funds being used to pay the final escrow requirement, essentially, ensuring a period of 45 days where the security is not earning any interest. As such, our Financial Advisors have advised us of the opportunity to execute a substitution with a more efficient security that would generate interest on each of the aforementioned 45 days, and that could ultimately be used for future Bond Projects. The amount of interest revenue is dependent on interest rates, but it is anticipated that the interest revenue will be in excess of $500,000, which again, can be used for bond projects as opposed to being limited to the payment of debt.
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Budgetary Impact:
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Anticipated interest revenue in excess of $500,000
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Recommendation:
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Recommend that the Board adopt the order authorizing the restructuring of the Crowley Independent School District Unlimited Tax Refunding Bonds, Taxable Series 2020 Escrow Fund as presented.
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Approvals:
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Recommended By:
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Signed By:
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Leon Fisher - Chief Financial Officer
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Signed By:
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Michael McFarland - Superintendent
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