May 22, 2023 at 6:00 PM - Finance Committee Meeting
Minutes |
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1. Call to Order
Description:
This is a meeting of the Board of Education in public for the purpose of conducting the School District's business and is not to be considered a public community meeting.
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2. Issues with Upcoming Debt Defeasance and Recommended Course of Action
Description:
When setting up a defeasance, the District deposits funds into an escrow account to earn revenue that will offset future interest costs for the debt to be paid off. Only two allowable investment vehicles are available for use: State and Local Government Securities (SLGS) and US Treasuries purchased on the open market. For any tax-exempt debt defeasance, we always use the SLGS vehicle instead of US Treasuries purchased on the open market because purchasing treasuries incurs additional costs.
Unfortunately, due to the debt ceiling not being lifted, the SLGS purchasing window closed as of 9:00 am on May 2, 2023. It will remain closed until the Federal Government raises the debt ceiling, assuming they do so. According to Secretary Yedlin's commentary, many believe the target date for the debt ceiling deal is June 1, 2023. Here are the options available to us:
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3. Finance Report
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3.A. Monthly and Year to Date Financial Reports
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3.B. Insurance Renewals
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4. Adjourn from Open Meeting
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