WEBVTT 1 00:00:00.310 --> 00:00:01.330 Chelsea King: And 2 00:00:03.260 --> 00:00:19.669 Chelsea King: all right. Hello, Everybody uh thank you for being here. Um! I will go ahead and open this uh special board meeting. And uh Miss Douglas, we please call role, certainly Chelsea King. Here, Christy Thompson. Here, Lewis Taylor 3 00:00:20.160 --> 00:00:24.220 Kelly Douglas: Kelly sloop Here, Kirsten Wyatt 4 00:00:24.710 --> 00:00:26.609 Kelly Douglas: here. Thank you 5 00:00:27.050 --> 00:00:38.800 Chelsea King: Alright, Great Thanks. Everybody. For being here. We're here to uh discuss the proposed remaining bond sale for the two thousand and nineteen capital bond, and the Board Resolution uh twenty, 6 00:00:38.880 --> 00:00:43.910 Chelsea King: twenty, two, three, and um, Dr. Ludwig, i'll hand it to you. 7 00:00:45.090 --> 00:00:57.300 Kathy Ludwig: Thank you before I turn it over to Mr. Remote Douglas. I just want to acknowledge that we have uh members of our Bond Council here. We have um Attorney Jim Shannon, 8 00:00:57.730 --> 00:01:09.439 Kathy Ludwig: and it's just one of wave, Jim, so folks can find your name. I'm. Listed as Courtney Dallas, but uh, it is Jim Shannon and Partner Courtney Dials 9 00:01:09.770 --> 00:01:12.299 Courtney Dausz: um also with Bond Council, 10 00:01:12.530 --> 00:01:20.570 Kathy Ludwig: and then from Sd Ao as an independent financial advisor. We do have David Albricht here with us. 11 00:01:20.960 --> 00:01:23.740 Kathy Ludwig: Great to see you, David. Thanks for joining us, 12 00:01:24.150 --> 00:01:30.110 Kathy Ludwig: and they are here to address any questions the board may have um with this topic 13 00:01:30.230 --> 00:01:34.260 Kathy Ludwig: as we go forward. So with that i'll turn it over to Mr. Remote Douglas. 14 00:01:36.670 --> 00:01:44.539 Remo Douglas: Thank you, Kathy. I appreciate it. Thank you. Board for the time this afternoon and the last few weeks, as we've been talking about 15 00:01:44.550 --> 00:01:59.569 Remo Douglas: um this bond sale quite a bit. Um, We did have a session on the third of November um, and there was considerable conversation around this topic, and the reasoning behind it. Um! But as a little bit of a refresh. 16 00:01:59.580 --> 00:02:05.820 Remo Douglas: Um! We did pass a capital bond in the fall of two thousand and nineteen 17 00:02:05.850 --> 00:02:24.729 Remo Douglas: um for a total of two hundred and six point eight million dollars uh we uh had a board resolution to authorize the sale of funds that late that year, and we followed through with the actual sale of around three quarters of the bonds in February of two thousand and twenty. 18 00:02:24.740 --> 00:02:41.679 Remo Douglas: At that time we had projected a spending plan that contemplated a second bond sale towards the end of two thousand and twenty-two, or early two thousand and twenty-three um, and as things have played out uh despite various obstacles, we are more or less on track, 19 00:02:41.690 --> 00:02:58.630 Remo Douglas: and we do uh have a need to proceed with this new bond sale um over the course of the summer we've been planning on for potentially both refinance of past on debt as well as the addition of this new sale. 20 00:02:58.640 --> 00:03:14.230 Remo Douglas: Um, As interest rates have risen over the last several months it became clear there was no longer a financial advantage in pursuing um the refinancing of past bones. Um! And uh, with some of the upcoming 21 00:03:14.240 --> 00:03:31.819 Remo Douglas: um uh Federal reserve meetings, as well as inflation, and job reports coming. Um, Our Council and our financial advisors at Piper Sandler recommended that Um. We have a new resolution around this two thousand and twenty-two on sale. 22 00:03:31.830 --> 00:03:43.829 Remo Douglas: Um that contemplates a maximum interest rate of six and a half percent. Um. And while there's a lot of complexities around the topic. There's been a lot of great questions and conversation. 23 00:03:43.840 --> 00:04:01.490 Remo Douglas: Really. What? Today's um request from staff boils down to is um. Is the board willing to adjust that five percent limit? Um from uh late two thousand and nineteen to six and a half to accommodate 24 00:04:01.500 --> 00:04:06.059 Remo Douglas: those uh economic factors. Um that are at play right now. 25 00:04:06.320 --> 00:04:21.089 Remo Douglas: Um, I don't think i'll i'll belabor the the point hopefully. Each of you have had a chance to read my memo um on the topic, particularly those concluding couple of paragraphs, sort of summarizing that detail. Um, 26 00:04:21.100 --> 00:04:26.809 Remo Douglas: but with that I I think i'd like to open it up to the Board to ask any questions they may have. 27 00:04:28.510 --> 00:04:52.750 Chelsea King: Thank you for that. Um review, and um, I think. Uh, we can certainly start with questions from the board. And um also just wanna honor the process that um, David, you went through um as an independent voice, and i'm just wondering. Would it be helpful from the Board to start with the independent consultant input and review, or should we just start with questions? 28 00:04:56.130 --> 00:05:03.169 Chelsea King: We had quite 29 00:05:04.200 --> 00:05:11.720 Chelsea King: Yeah. Okay. So Um, David, would you like to jump in there and just um tell us a little bit about the process you went through, and where you're landing with this 30 00:05:11.740 --> 00:05:27.030 David Ulbricht: uh sure. So um as I was introduced, I'm. With Sd. Ao, and i'm the director of Municipal Advisory Services at Sdo, and we provide this independent third party uh review and analysis um for 31 00:05:27.200 --> 00:05:43.629 David Ulbricht: local governments throughout the State school districts and cities and special districts, Certainly. And um. So this is my second chance to work with you all. I was able to work with you with the pension obligation bond that was done in two thousand and twenty-one. 32 00:05:43.990 --> 00:05:51.379 David Ulbricht: And so with my how I review the process itself as I engage as as I am engaged as your municipal visor. 33 00:05:53.150 --> 00:06:02.039 David Ulbricht: My essential role in the in in the function is to sit on your side of the table looking at the terms and the conditions in which the bonds are going to be sold. 34 00:06:02.350 --> 00:06:15.910 David Ulbricht: So I compare that to current market rates um secondary market trades, and any other current or recent data that could impact um the pricing or the yields on your bond. 35 00:06:16.330 --> 00:06:31.669 David Ulbricht: Um, certainly, if you, if you already have went through a work session on November third, you probably heard about all the reasonings that we've seen in the interest rate environment, you know. Um, you know. For example, you know, just I was looking at some interest 36 00:06:31.870 --> 00:06:35.200 David Ulbricht: yields uh earlier today, and 37 00:06:35.500 --> 00:06:47.099 David Ulbricht: you know the ten year. Um municipal market index for a general obligation bond that's rated aaa in january was one point, one four. 38 00:06:47.530 --> 00:06:54.129 David Ulbricht: Now we're looking at you know a two hundred and twenty-five basis point increase since that time. 39 00:06:54.340 --> 00:07:13.760 David Ulbricht: Um, and so there's a number of factors that go into it. And so when you look at your. You know the timing of your cell, and primarily it comes down to cash flows. I understand it, too, for your projects, and when you need your money, and how to continue to um, completing the projects in which the bond measure was approved originally. 40 00:07:13.880 --> 00:07:22.359 David Ulbricht: Um, there's not so much we can do about the market. I mean, that's just. We don't have that control. Um, unfortunately. 41 00:07:22.780 --> 00:07:29.760 David Ulbricht: Um! And so my process is to look how the bonds are structured. Does it fall within the guidelines and the expectation of the Board 42 00:07:30.060 --> 00:07:35.259 David Ulbricht: um in the school, you know, in this school district, and how the taxpayers might look at it. 43 00:07:35.600 --> 00:07:39.940 David Ulbricht: Um! And so, as I said right now, there's there's nothing unusual about the structure. 44 00:07:40.320 --> 00:07:43.290 David Ulbricht: There's the only you know 45 00:07:43.500 --> 00:07:49.629 David Ulbricht: that might give you a little bit of harper, and is the rate environment. But again, we can't control that. It's just 46 00:07:49.680 --> 00:07:52.829 David Ulbricht: how things have progressed. You know, from a 47 00:07:52.980 --> 00:08:02.520 David Ulbricht: local sense, from a national sense and a global sense on the number of factors that have impacted the current rate environment that we're in. 48 00:08:03.530 --> 00:08:08.690 David Ulbricht: So i'm happy to answer any questions. Um, The The board may have, or anybody else. 49 00:08:08.790 --> 00:08:13.179 David Ulbricht: But as I see it right now, proceeding with the bond as your your bond issue 50 00:08:13.240 --> 00:08:14.290 David Ulbricht: Um, 51 00:08:14.810 --> 00:08:24.669 David Ulbricht: there's real no hesitation other than just something abnormal or some un for unforeseen event happens that 52 00:08:33.490 --> 00:08:42.470 Louis Taylor: oh question that I have for, uh, remote, or Dr. Ludwig would be 53 00:08:42.740 --> 00:08:48.949 Louis Taylor: uh this would be. The first question that I would have is I asked to timing? Is it crucial 54 00:08:49.160 --> 00:08:54.620 Louis Taylor: for us to sell these bonds right away, due to 55 00:08:54.720 --> 00:08:58.180 Louis Taylor: the construction of Frog Pond, Or 56 00:08:58.430 --> 00:09:16.910 Louis Taylor: is there an environment where we say, Well, maybe we don't sell the last sixty million in remaining bonds, and just kind of wait to see what happens with interest rates over the next. Let's just say twelve months for the sake of the example. Is that something that is feasible as an option 57 00:09:16.920 --> 00:09:25.049 Louis Taylor: for our projects at a point where it's imperative for that school to start construction or or whatnot 58 00:09:25.240 --> 00:09:29.599 Remo Douglas: understood. Um. With your leave, Kathy, i'll respond. 59 00:09:30.110 --> 00:09:45.629 Remo Douglas: Um! So uh, I have been tracking our cash flow over time. Um! And uh, I know my only one out uh a couple of few hours ago, so it's probably been hard to get to it. Um! 60 00:09:45.640 --> 00:09:50.500 Remo Douglas: But we do expect to need additional cash. Um, 61 00:09:50.560 --> 00:09:52.290 Remo Douglas: not only 62 00:09:52.320 --> 00:10:07.470 Remo Douglas: because Frog Pond will be bidding early next year, and we'll be moving into another significant project. Um! But even excluding that all together, our total contracts that we're currently committed to are for more than the cash we have. 63 00:10:07.480 --> 00:10:21.699 Remo Douglas: Um. So uh, we've always known and planned for this bond sale to happen sometime this quarter or next um, and we will run out of cash. Um, likely in the next six months, 64 00:10:23.470 --> 00:10:37.249 Kathy Ludwig: and just to clarify this is cash for bond projects that we are encumbered for, uh other things on the list besides the new primary school in Wilsonville. Um. That we are midway through or starting 65 00:10:37.430 --> 00:10:41.820 Kathy Ludwig: uh the other factor is each year that we delay 66 00:10:41.960 --> 00:10:47.579 Kathy Ludwig: building that school prices go up for the cost of that school, 67 00:10:47.600 --> 00:10:55.270 Kathy Ludwig: so it might seem like we might save on one end if we wait for interest rates. But then the cost of 68 00:10:55.360 --> 00:11:12.230 Kathy Ludwig: the school or building later also increases in terms of just uh labor market supply demand. Um! And just each year you delay a project that the costs go up. So keeping on our timeline is also important. 69 00:11:12.380 --> 00:11:14.880 Kathy Ludwig: That remote. 70 00:11:15.130 --> 00:11:32.290 Remo Douglas: Yeah, I've been working closely with counterparts at a couple of school districts, as well as through our project Management Firm Cbre Um, Their regional director, used to work um with us under the same banner. Um, and so I speak with him quite regularly. 71 00:11:32.300 --> 00:11:49.739 Remo Douglas: Um! And they've recently established a new partnerships in uh that kind of industry forecasting marketplace, and uh everything that they are seeing everything that our other, our colleagues and other districts are seeing is that construction costs will continue to rise. 72 00:11:49.770 --> 00:12:06.189 Remo Douglas: Um! And that uh lead times. How long it takes to get some of this material and equipment that we need are still on the rise, and they don't see a a sunset of those indicators. Um, 73 00:12:06.200 --> 00:12:09.860 Remo Douglas: you know the a lot of the things that we need are things that 74 00:12:09.870 --> 00:12:32.430 Remo Douglas: um, for instance, large data centers need um that we're building a lot of right now in the country. Um, there's a lot of infrastructure money at the Federal level going to um Various systems, um, and building types that require some of the same things, and they're using up the material and the labor um, and so um it's expected that it will. Construction will continue 75 00:12:32.440 --> 00:12:51.320 Remo Douglas: to get more expensive um, and that it will continue to take longer and longer over the next several years. Um! And so every indication from the construction side is uh we better hurry up and go um, and then um in. In my conversations with Hyper sampler 76 00:12:51.330 --> 00:12:55.379 Remo Douglas: um around the the perspective bond market, you know I 77 00:12:55.520 --> 00:13:00.820 Remo Douglas: put put fairly directly to them. Um! How long do we have to wait 78 00:13:00.890 --> 00:13:06.639 Remo Douglas: before you would feel confident that we might see a better market condition. 79 00:13:06.830 --> 00:13:25.329 Remo Douglas: Um! And they were very reluctant to say when at all. Um! But they said it was uh when press long enough, it's very unlikely in two thousand and twenty-three that we would see. And there's that that there's any reason to expect there might be a more favorable condition 80 00:13:25.400 --> 00:13:26.650 Remo Douglas: um 81 00:13:27.250 --> 00:13:46.210 Remo Douglas: not even to signal that there's any reason there might actually be a more favorable condition later. Um! But there's plenty of signals saying that it is that it's not likely in the next year. Um! And we will definitely need some amount more of funding. Whether or not we start the new primary school. Um, 82 00:13:46.550 --> 00:13:48.099 Remo Douglas: you know, six months from now. 83 00:13:48.590 --> 00:14:00.150 Remo Douglas: So uh it. It would be a major shift, a major change in the direction of the program, and I believe a significant increase to cost. If we were to delay this sale. 84 00:14:02.860 --> 00:14:03.810 Louis Taylor: Okay, Thank you. 85 00:14:04.240 --> 00:14:07.589 Chelsea King: Right. Thanks, Director Taylor. Anybody else. 86 00:14:10.300 --> 00:14:15.310 Chelsea King: We can also entertain a motion um and have further discussion. 87 00:14:21.330 --> 00:14:29.739 Chelsea King: I i'm gonna go ahead and put a motion on the table. Um! And then I can uh explain where i'm landing if that's helpful to this process. 88 00:14:29.770 --> 00:14:43.570 Chelsea King: Um, I move that the board pass uh board Resolution two thousand and twenty-two dash three to sell the remaining bonds for the two thousand and nineteen capital bond. 89 00:14:46.750 --> 00:14:47.750 Kirsten Wyatt: Second. 90 00:14:48.460 --> 00:14:51.250 Chelsea King: All right, Thank you, Dr. Wyatt, for that second. 91 00:14:51.520 --> 00:14:52.860 Chelsea King: Um, 92 00:14:53.080 --> 00:15:08.959 Chelsea King: I I don't really actually have further questions. I think. Um, We talked about this at length last week, and i'm hearing um a independent consultant, David Albright. If i'm saying your last name correctly 93 00:15:09.100 --> 00:15:17.360 Chelsea King: indicate that there's no um cautions. Emerging. After reviewing, um 94 00:15:17.370 --> 00:15:40.559 Chelsea King: I assume that legal counsel would tell us that there were costumes, and i'm i'm not hearing any um I The more I've sat with this the more I see, have seen it to be fairly straightforward. Um, I've kind of arrived at the conclusion that we got some pretty good interest rates early, and the market shifted, and we have to sell these bonds, and this interest rate is not um 95 00:15:40.570 --> 00:15:58.939 Chelsea King: uh astronomical. It's not like some sort of you know, huge anomaly. It's within reason. Um, when we look at the historical data, and we need to sell them to continue the projects. So i'm not seeing anything that gives me, major reservations. I i'm comfortable moving forward. Um 96 00:15:58.950 --> 00:16:02.749 Chelsea King: approving up to six point five percent interest rate. 97 00:16:04.150 --> 00:16:11.860 Chelsea King: That's where i'm landing. I'm happy to hear where other board members are landing. If they have more questions, or do you want to express your thinking at this point? 98 00:16:11.900 --> 00:16:14.199 Louis Taylor: I guess I would have a question sending around. 99 00:16:14.930 --> 00:16:24.759 Louis Taylor: Ah, raising that interest rate doesn't necessarily mean that we are approving the actual structure of what the bond might look like when it's presented to the community. 100 00:16:24.990 --> 00:16:26.950 Louis Taylor: Would that be fair to say, David? 101 00:16:29.290 --> 00:16:38.679 David Ulbricht: Yes, that's exactly right. So basically what it is, it's a parameters resolution or or parameter element within the resolution. Um, saying, 102 00:16:38.740 --> 00:16:52.460 David Ulbricht: you know, for it doesn't, you know. Once you adopt the resolution uh Staff doesn't, they wouldn't have to come back to the Board for any further authorization, unless the rate environment got to such where that 103 00:16:52.740 --> 00:16:57.100 David Ulbricht: overall effective rate is above six and a half percent. 104 00:16:57.510 --> 00:17:06.180 David Ulbricht: So it's providing a cushion uh for you to proceed with the bond, and I think the last numbers I saw from paper. 105 00:17:06.700 --> 00:17:07.849 David Ulbricht: Um! 106 00:17:09.349 --> 00:17:11.490 You might get to it real quick. 107 00:17:12.109 --> 00:17:22.450 David Ulbricht: Um! They were looking at around five point six percent overall. You're all in true interest cost, so you wouldn't You're not at that level yet, but would, 108 00:17:22.500 --> 00:17:25.910 David Ulbricht: in order to proceed. You know you need this 109 00:17:26.050 --> 00:17:30.010 David Ulbricht: kind of limit on which you kind of as a stopping point 110 00:17:30.270 --> 00:17:31.569 David Ulbricht: on the bond issue 111 00:17:31.810 --> 00:17:36.950 Louis Taylor: Got you I I We had had a brief discussion at our previous meeting 112 00:17:36.990 --> 00:17:38.890 Louis Taylor: in regards to 113 00:17:38.980 --> 00:17:46.579 Louis Taylor: uh potential call features that would allow us to maybe have a different call date a little earlier call day. So we're not locked into a 114 00:17:46.600 --> 00:17:56.530 Louis Taylor: a high interest rate bond for a substantial period of time, and it was explained that there might be some additional costs with that um, and rightfully so, 115 00:17:56.580 --> 00:18:01.469 Louis Taylor: and that maybe there would be a proposal sent over, or an example sent over 116 00:18:01.620 --> 00:18:16.650 Louis Taylor: showing what an earlier call feature might look like versus the standard normal. Uh Geo um uh format so, or structure. Is that information still going to be provided before bonds are actually sold. 117 00:18:18.250 --> 00:18:23.519 Remo Douglas: Perhaps, David, i'll. I'll speak to my interaction with Piper, and then we could get your view. 118 00:18:23.720 --> 00:18:33.879 Remo Douglas: Um! So uh I did speak with Brandon at Piper Sandler at length, this morning. Um! Just shy of an hour, just talking through all of the different factors. 119 00:18:33.910 --> 00:18:37.020 Remo Douglas: Um, so um! Those different 120 00:18:37.230 --> 00:18:48.369 Remo Douglas: options. Um are all part of the plan of what we're going to work through. Um. Piper is going to develop a number of alternatives. Um, both, 121 00:18:48.380 --> 00:18:59.119 Remo Douglas: of course, in the public market sale, but also there was a brief discussion at the on the third about, you know. Do you go to a bank and and do it differently, because they may. 122 00:18:59.130 --> 00:19:18.710 Remo Douglas: Um, they may see those view those call features differently um than the public market. Um, And so they are exploring all of those um and the intent of the process is that Piper will present all of those option to um staff legal counsels, and then um also invite uh David to 123 00:19:18.720 --> 00:19:31.019 Remo Douglas: look in and provide his feedback to to the administration, so that, you know Staff will have all of that advice before making a final call, and and moving forward with the sale. 124 00:19:31.590 --> 00:19:50.469 Louis Taylor: Oh, Gotcha! And then who makes the final call is, Is Does this come back before the board? Once a structure has been selected? Or is the decision made by uh staff and uh piper and legal at that point? Once we've said, Okay, we we've authorized 125 00:19:50.480 --> 00:19:52.529 Louis Taylor: a threshold of six and a half percent. 126 00:19:52.620 --> 00:19:57.249 Louis Taylor: Um, Who makes the final call on that structure 127 00:19:57.380 --> 00:20:02.480 Remo Douglas: historically, staff with advice from all applicable council. 128 00:20:03.710 --> 00:20:06.549 Louis Taylor: Okay, my only hesitation in 129 00:20:06.960 --> 00:20:11.709 Louis Taylor: in agreeing to. That is what we talked about at our previous meeting, 130 00:20:11.810 --> 00:20:17.120 Louis Taylor: and potentially ham streaming a board in the future. What's high interest rates 131 00:20:17.250 --> 00:20:22.860 Louis Taylor: that could affect them down the road, and so I guess 132 00:20:23.440 --> 00:20:25.829 Louis Taylor: my my thought is 133 00:20:25.850 --> 00:20:31.589 Louis Taylor: that I thought we would be provided that information to to be able to see what the 134 00:20:31.780 --> 00:20:49.700 Louis Taylor: long term effects. Yes, that was the sheet that was provided in that two thousand and thirty-three to forty-nine area um and I know that this portion of the bonds is, even if that a higher rate, we said it would. It may not move the needle based off of the weight of the amount. 135 00:20:49.710 --> 00:20:51.969 Louis Taylor: So was that something that was considered? 136 00:20:52.320 --> 00:20:53.480 Louis Taylor: Um, 137 00:20:54.000 --> 00:21:13.529 Louis Taylor: I guess in your analysis I don't want my name on something that is hamstringing a future board is what i'm telling you so. If I could get the information to allow me to know that me agreeing to raising the interest rate to six and a half percent, and then putting that in your hands to make that decision. 138 00:21:13.920 --> 00:21:31.569 Louis Taylor: Ultimately I'm counting on you to do right right, and i'm not saying that I don't have faith that you should do right. I just say that I don't I I have a hard time blindly signing off on something that I haven't seen the end result on a future community. So that's my that's my my stance on that 139 00:21:31.800 --> 00:21:40.330 Remo Douglas: sure. So, as I understood my conversation with Piper on that um, they felt that 140 00:21:40.650 --> 00:21:42.050 Remo Douglas: the 141 00:21:42.100 --> 00:21:50.569 Remo Douglas: the funding that we would receive as a result of the sale would be impacted materially by those shorter call features. 142 00:21:50.580 --> 00:22:02.460 Remo Douglas: Um! And we would receive it. It is reasonable to expect that we would receive fewer bids, and perhaps no bids on some of our bonds that we would be unable to sell some of them. 143 00:22:02.560 --> 00:22:05.160 Remo Douglas: Um! And 144 00:22:05.980 --> 00:22:09.580 Remo Douglas: they felt that um Any 145 00:22:10.050 --> 00:22:12.420 Remo Douglas: sort of exercise today 146 00:22:12.460 --> 00:22:18.780 Remo Douglas: given how quickly things are moving in the marketplace may not be a very strong indicator of that 147 00:22:18.810 --> 00:22:31.530 Remo Douglas: um, and that to doing an example, you know a prediction, a projection of that based on the market today versus in uh, you know the end of the month. 148 00:22:31.540 --> 00:22:46.100 Remo Douglas: Uh that there could be material changes there, and and they're they're hesitant to represent. That is accurate to what what would happen at the time. Um, So they're working to do those exercises much closer to the actual bond sale. 149 00:22:46.330 --> 00:22:59.089 Remo Douglas: Um in terms of in general. Um, the Board's ability to borrow um in order to address long term needs for the district. Um, you know 150 00:22:59.380 --> 00:23:14.620 Remo Douglas: the steps that we're seeing in the the table that's being shared on the screen right now. Um is showing that, uh, the district has a very large capacity to 151 00:23:14.740 --> 00:23:31.570 Remo Douglas: take on additional loans to go out for future allegation bonds. Um, and that it is stare stepped in a way which is traditional for us. Um to provide boards over time that latitude and that play um 152 00:23:32.390 --> 00:23:34.180 Remo Douglas: piper-viewed 153 00:23:35.220 --> 00:23:52.650 Remo Douglas: these these other means as perhaps being more complex for a board to deal with. Um, because it to some extent these these that would be a more technical move and require another action at a specific time in the future. 154 00:23:52.660 --> 00:23:57.330 Remo Douglas: Um! And expecting a board to 155 00:23:57.410 --> 00:24:16.800 Remo Douglas: um, grapple with that and manage their way through that at the right time in the future. Um was perhaps more binding of a future board um than the more traditional option. Um, but again. Um! The way this debt is being structured is that a board could, 156 00:24:16.810 --> 00:24:34.210 Remo Douglas: in the fall of two thousand and twenty-four go out for a substantial bond should it wish to um, and then stare, step that debt in a way that five or six years from then there could be another substantial bond um without ever um coming into potential conflict 157 00:24:34.220 --> 00:24:49.050 Remo Douglas: with that uh community commitment to three dollars per thousand assessed value. Um additionally. Um. We've directed Piper to continue to act conservatively on the projected growth for assessed value. 158 00:24:49.350 --> 00:24:50.650 Remo Douglas: So 159 00:24:51.150 --> 00:24:54.970 Remo Douglas: when we sold bonds in two thousand and fifteen 160 00:24:55.430 --> 00:25:03.279 Remo Douglas: um. The projection at that time is that a two thousand and nineteen bond could only be around twenty-seven million dollars 161 00:25:03.970 --> 00:25:22.800 Remo Douglas: and stay under the three dollars per thousand um Assess growth or sorry assess value has grown far more than what we've projected. And obviously we've We've passed a a over two hundred million dollar bond program, and and we're 162 00:25:23.380 --> 00:25:41.179 Remo Douglas: fulfilling that last step. And there's still a substantial room for future. Um. So we don't know exactly how assessed value will grow. Um, but it's reasonable. Expect that what we're showing is conservative, and that future boards will have tremendous latitude 163 00:25:41.190 --> 00:25:45.540 Remo Douglas: for um incurring additional debt to address feature needs. 164 00:25:47.130 --> 00:25:59.199 David Ulbricht: Um. This is David, and I I wanted to go back to Director Taylor's one comment about call features, you know, having earlier calls um, you know. I've been in at Minnesota Finance 165 00:25:59.370 --> 00:26:02.689 David Ulbricht: World for close to thirty years now, and 166 00:26:02.910 --> 00:26:15.739 David Ulbricht: in the when you try to develop a structure with a bomb, particularly a bonds such as yours, and the traditional call is is a ten year non-call feature of a financing. When you go out to the public market, 167 00:26:15.880 --> 00:26:17.050 David Ulbricht: when you, 168 00:26:17.240 --> 00:26:22.549 David Ulbricht: when you access the public market or the capital markets to raise your capital for your bond program 169 00:26:22.930 --> 00:26:30.800 David Ulbricht: when you start introducing short call features. Investors tend to start looking at well 170 00:26:31.290 --> 00:26:36.779 David Ulbricht: for that increased flexibility from a call or a redemption feature standpoint. 171 00:26:37.180 --> 00:26:53.429 David Ulbricht: I've seen where i'll, and i'll just call it a rate penalty, you know, for a lack of better term. But for that additional flexibility. I've seen. The interest costs go up anywhere from fifty basis points up to one hundred and fifty basis points. 172 00:26:53.800 --> 00:26:57.079 David Ulbricht: So you, if you 173 00:26:57.150 --> 00:27:13.560 David Ulbricht: so when you What i'm saying is when you try to develop additional features or more flexibility, there, there is a cost element that comes involved in it. Um! And if you go to the private market to the bank, or whatever you know, banks right now, they're um, 174 00:27:13.610 --> 00:27:18.539 David Ulbricht: and I work with a number of banks, and you know, most Banks won't go out 175 00:27:18.900 --> 00:27:26.990 David Ulbricht: past fifteen years right now, and in most banks. They want to rate reset at about five years because of the current rain environment. 176 00:27:27.290 --> 00:27:37.879 David Ulbricht: So what you're getting there is you? You might be able to get a lower interest rate at the time, and maybe some flexibility and call feature. But that rate is not set for the life of the bond. 177 00:27:37.960 --> 00:27:45.600 David Ulbricht: And when you're looking at a capital improvement program, such as the district is embarking on or with May in in the future, 178 00:27:45.860 --> 00:28:02.110 David Ulbricht: utilizing the step approach that you have, you're creating more flexibility due to the issue, or as the voters for additional uh on financing that fits within your expectation or community goal, keeping it under dollars or less a thousand. 179 00:28:02.740 --> 00:28:04.650 David Ulbricht: So there's 180 00:28:04.760 --> 00:28:17.620 David Ulbricht: as much flexibility as we like to build any of these. Uh, you know, bond financing programs. There's sometimes comes a cost with that, too. And so in the case of earlier call features. Um! 181 00:28:18.220 --> 00:28:24.179 David Ulbricht: You might have to pay an initial higher rate than you would have otherwise. 182 00:28:24.650 --> 00:28:29.159 David Ulbricht: So. But that's part of the element of as your independent advisor 183 00:28:29.200 --> 00:28:33.349 David Ulbricht: to work closely with Piper looking at those options as well. 184 00:28:33.530 --> 00:28:42.310 David Ulbricht: And although you, you have this parameter resolution in place that's going to, you know, set the new effective rate at um six and a half percent. 185 00:28:42.350 --> 00:28:51.799 David Ulbricht: Um, i'm not aware of anybody that's really gone out and issued bonds or girl money that even though you don't have to go back to the board for further authorization. 186 00:28:51.890 --> 00:28:57.609 David Ulbricht: Staff has always been really good about providing the information to the board, so they're informed along the way, 187 00:28:58.320 --> 00:29:16.109 David Ulbricht: and um and I know, working with the district before that was the case as well. Before the rates were finally set there was a number of conversations and other meetings and other, you know, emails and such to keep folks informed along the way. And you could still ask questions, you know. Um. 188 00:29:17.030 --> 00:29:27.619 David Ulbricht: So I I just wanted to get back to your your question, Director Taylor about, you know. Can we introduce an earlier call feature? Yes, you can, but it could come with a cost. 189 00:29:32.330 --> 00:29:33.240 Louis Taylor: Thank you 190 00:29:37.110 --> 00:29:41.360 Chelsea King: right. Sure, Thompson. Oh, sorry. Go ahead, Director sloop. I just saw your hand there. 191 00:29:42.210 --> 00:29:43.990 Kelly Sloop: Um, so 192 00:29:45.980 --> 00:29:57.639 Kelly Sloop: I guess i'm just asking for a clarification. Um! So the maximum would be six. Point five. But you're saying right now. There's rates that are available at five point six percent, 193 00:29:57.790 --> 00:30:05.499 Kelly Sloop: and we're going to be looking to sell these bonds sooner than later, because we're going to be running out of 194 00:30:05.780 --> 00:30:10.090 Kelly Sloop: um cash to support our contracts. 195 00:30:10.260 --> 00:30:19.289 Kelly Sloop: And this is in regards to the remaining balance of fifty-eight point, nine million. I'm just trying to understand what this is all about. 196 00:30:19.500 --> 00:30:21.309 Kelly Sloop: Is that correct? 197 00:30:21.580 --> 00:30:39.960 Remo Douglas: Yeah, I would. I would ask uh, David, to speak to the technicalities of of where rates are. Are We're seeing rates at the moment? Um, But yes, we are looking to sell those remaining bonds um doing the pricing on November thirtieth. So the end of this month. 198 00:30:40.170 --> 00:30:49.469 Remo Douglas: Um, and uh it, it's an it's an interesting process on the pricing day, and I was able to observe the last one. 199 00:30:49.480 --> 00:31:06.599 Remo Douglas: Um! And we we set up what the public offering is for what we're looking to to do. Um! And then these investment groups um bid for the bonds. We get a number of offers for each package of bonds that are that we're putting out 200 00:31:06.640 --> 00:31:15.800 Remo Douglas: um, and the market will dictate what that you know to some extent what that interest rate is at the time of sale. 201 00:31:16.240 --> 00:31:34.810 Remo Douglas: Um and and David, perhaps you could speak to what we're seeing in the marketplace today. Um, and um. I know there's a lot of you know any one of us lay people can can check cnn and see things about the fed doing things, and we hear about inflation and labor. Um 202 00:31:34.820 --> 00:31:47.579 Remo Douglas: mit ctl. And so maybe you could talk a little bit briefly about what we're seeing today in sales and sort of what are those factors that may play with what that rate is by the time we get to the end of the month two. 203 00:31:48.900 --> 00:31:54.810 David Ulbricht: Well, I I will do my best to address the the matter 204 00:31:56.220 --> 00:32:01.029 David Ulbricht: what we're see I mean over the last week or so. We've kind of seen a a 205 00:32:01.080 --> 00:32:02.090 David Ulbricht: not, 206 00:32:02.430 --> 00:32:18.049 David Ulbricht: you know spikes and rates, or you know what dropping rates has been kind of a leveling off period, because, you know, just did another seventy-five uh basis point increase in the fed funds rate um between. Now, in the middle of December. There's talk of another, you know. Rate increase by the Feds 207 00:32:18.060 --> 00:32:37.139 David Ulbricht: at the December meeting before the end of the year. Um which could have an impact. Uh, you know, rates going to higher um from kind of an economic point of view. You know a lot of folks and readings that I've I've seen out there and talking to various folks involved in a municipal bond market. 208 00:32:38.430 --> 00:32:40.710 David Ulbricht: There's not a uh. 209 00:32:41.080 --> 00:32:44.139 David Ulbricht: There's the consensus is rates are going to be 210 00:32:44.680 --> 00:32:51.800 David Ulbricht: good going out before they go down. Um, because of inflation factors. Um! And again, you know, 211 00:32:51.970 --> 00:32:52.970 uh 212 00:32:53.320 --> 00:33:04.389 David Ulbricht: Superintendent one. We mentioned the fact, too, about cost escalation with inflation, and you know inflation, you know fears are still going out there, I mean, there's talk of sessions and such. Um, 213 00:33:04.540 --> 00:33:22.730 David Ulbricht: But back to you. The process of on the on the Bond sale date itself. Uh how that process works is that usually the week before the bond cell, um pipers Underwriter Markley. He's he's still started having conversations with me about you know where they think 214 00:33:22.740 --> 00:33:29.010 David Ulbricht: yields would be for the bond that they're gonna go out and put in a in a open market, 215 00:33:29.900 --> 00:33:34.220 David Ulbricht: and at that point in time, you know, like following the market, you know, 216 00:33:34.460 --> 00:33:51.599 David Ulbricht: like I do. And then Also, as we get closer to the cell date, I start doing a more analytical analysis to see. Okay, comparable bond issues in the market are trading at a certain level. And how does that compare to what Westland Wilson, the school district, might get with It's on stuff, 217 00:33:52.220 --> 00:34:00.279 David Ulbricht: and then we get close to the day before we actually have a conference call with with Staff and um. Whoever wants to be involved 218 00:34:00.310 --> 00:34:06.490 David Ulbricht: with Piper and the bond underwriter, and we talk about where levels might be or yields where they might be. 219 00:34:06.520 --> 00:34:15.249 David Ulbricht: Um! And then we come to a consensus on where we think. Um, yes, we agree to proceed, or um, 220 00:34:15.900 --> 00:34:27.199 David Ulbricht: you know, if you allow the underwriter to proceed with the bond, sell the next day, or there may be a conversation that I might have um with them, say? Well, you know, in the market 221 00:34:27.810 --> 00:34:32.119 David Ulbricht: I've seen comparable securities and securities trading at this level, 222 00:34:32.480 --> 00:34:41.609 David Ulbricht: so justify why you might think level should be higher than they might be otherwise with a comparable municipal security. 223 00:34:42.179 --> 00:34:55.660 David Ulbricht: So that this is part of the negotiation process. And again, you know, as your advisor, I sit on your side of the table, and I have a fiduciary duty to you know, represent you and your best interest first over anybody else. Um! 224 00:34:55.710 --> 00:35:01.369 David Ulbricht: So i'm your so-called advocate. When it comes to the time and pricing of the ball 225 00:35:01.770 --> 00:35:09.090 David Ulbricht: the next day that process, how it works. About seven o'clock in the morning. They release the bonds out there with, you know, estimated yields, 226 00:35:09.150 --> 00:35:16.840 David Ulbricht: and they start taking orders from. You know, institutional investors, retail investors, insurance companies, 227 00:35:16.910 --> 00:35:20.200 David Ulbricht: all kinds of people that invest in municipal securities, 228 00:35:20.700 --> 00:35:21.939 David Ulbricht: and 229 00:35:22.270 --> 00:35:25.489 David Ulbricht: this this process allows 230 00:35:25.660 --> 00:35:28.990 David Ulbricht: the bonds to get placed at a level 231 00:35:29.160 --> 00:35:41.449 David Ulbricht: true to the market to where the market really actually is. So you're going out there with your. The piper is going to recommend their best case where they think interest rates might be, or your yield on your wall. 232 00:35:42.470 --> 00:35:53.620 David Ulbricht: But then they're in the actual order. Period of this call is they're allowed to fine tune it. So if you have a thirty year maturity, for example, on your bond, 233 00:35:53.700 --> 00:35:57.799 David Ulbricht: and say, there's twenty-five million dollars in that maturity. 234 00:35:58.660 --> 00:36:09.120 David Ulbricht: You might get five or six orders for that maturity. And so now it's called being oversubscribe, which then allows you to lower the rates on the bond 235 00:36:09.210 --> 00:36:12.759 David Ulbricht: to find out what investors are going to stay at the lower yield. 236 00:36:13.740 --> 00:36:21.279 David Ulbricht: And so that's usually, you know, an hour and a half period. You go through this process that allows you to find to those rates, and they up the market, 237 00:36:21.780 --> 00:36:30.780 David Ulbricht: and at the end of that then you come to you only have another call. We agree. Um! Everyone has their asked questions, and and they'll explain the process. 238 00:36:30.890 --> 00:36:37.319 David Ulbricht: And then you proceed to if everything's okay. One purchase agreement gets signed, and then you're off to, 239 00:36:38.140 --> 00:36:44.989 David Ulbricht: and that's when Jim and Courtney come in because they got to do a lot of paperwork um generating legal documents and such. 240 00:36:46.560 --> 00:36:49.959 David Ulbricht: But in the the current environment, you know, I don't. 241 00:36:51.100 --> 00:36:57.170 David Ulbricht: I don't anticipate myself seeing a scenario where rates are going to be coming down anytime soon. 242 00:36:57.230 --> 00:37:02.760 David Ulbricht: I think we're going to be in this high rate environment until inflation comes back under control, 243 00:37:03.140 --> 00:37:07.339 David Ulbricht: and folks are now talking. That may not be until two thousand and twenty-four 244 00:37:09.420 --> 00:37:14.429 Chelsea King: director Sloop, did that get your question answered. Do you have further questions? 245 00:37:14.780 --> 00:37:19.430 Chelsea King: Okay, by sure, Thompson, I saw that you had unmuted earlier. Would you like to jump in there? 246 00:37:19.900 --> 00:37:27.909 Christy Thompson: Yeah, thank you. Um. Just because I I want to make sure. I ask all the questions and and explore all the options. Um! 247 00:37:28.070 --> 00:37:42.720 Christy Thompson: Of the fifty-eight point nine million that we are going to sell. What percentage of that remote you talked about that? Um! We already have contracts where we're currently that you know some of that money is currently committed. 248 00:37:42.960 --> 00:37:49.319 Christy Thompson: And then we know that some of that money is going to go to Prop. Can you speak to? How much 249 00:37:49.530 --> 00:37:59.060 Christy Thompson: is, how much of that would go to current projects that we need to continue with and about how much we go to frock time again roughly, 250 00:37:59.270 --> 00:38:02.060 Christy Thompson: and then my question would be, 251 00:38:02.470 --> 00:38:11.699 Christy Thompson: you know. Is it a possibility if we felt, you know, that we just go out for the amount that we need to satisfy those current 252 00:38:12.210 --> 00:38:13.390 Christy Thompson: um 253 00:38:13.560 --> 00:38:29.800 Christy Thompson: to those current projects, and then possibly wait, you know, to see if the interest rate market gets better to do the other. So that's kind of one of my questions, and then kind of a follow up in that is, i'd be curious to know 254 00:38:30.090 --> 00:38:36.740 Christy Thompson: where we are at with our enrollment at Beckman, as far as capacity 255 00:38:37.170 --> 00:38:53.829 Christy Thompson: and enrollment at is fair, you know. I'm. Assuming that Frog Pond would gather Stu would take students from, and then maybe Lowry too. But this the schools that those students would come from? 256 00:38:53.940 --> 00:39:00.119 Christy Thompson: What does our What do our numbers look like? I mean, Are we overflowing, or 257 00:39:00.630 --> 00:39:02.279 Christy Thompson: do we have time 258 00:39:05.250 --> 00:39:08.029 Christy Thompson: that makes sense to those. Those are my questions. 259 00:39:08.070 --> 00:39:24.419 Remo Douglas: Yup, I'm writing a little notes. Uh I I can only remember so many uh questions. 260 00:39:24.430 --> 00:39:32.950 Remo Douglas: Um. So in terms of uh, you know, sort of other projects versus the new primary school. Um. The latest 261 00:39:33.010 --> 00:39:47.540 Remo Douglas: quarterly report is showing a a fair overage on the program. We're, of course, working very hard on how to reduce that, and i'm I believe i'm presenting on the fourteenth um to talk more about that 262 00:39:47.600 --> 00:39:50.790 Remo Douglas: um at the moment 263 00:39:51.900 --> 00:39:55.509 Remo Douglas: like it would be in the. This is 264 00:39:55.590 --> 00:40:13.879 Remo Douglas: I'm. Not certain exactly of the number. I'm off the top. My head, I would say eight to twelve million dollars is what we would need to complete the current contracts. There are quite a few contracts beyond the new primary school. That's not the only thing that's left, and there are some number of millions, and we could 265 00:40:13.890 --> 00:40:27.449 Remo Douglas: um prepare reports that would describe that. Um the the broader point um that may notify that um regardless is that um completing a bond sale is somewhat expensive 266 00:40:27.460 --> 00:40:38.720 Remo Douglas: uh all of these wonderful folks that are helping us are very good at what they do um, and those services to complete a bond sale are not free. Um! So uh 267 00:40:38.770 --> 00:40:55.170 Remo Douglas: in general, as I recall the advice from both Mercer Shannon as well as Piper Sandler. Is that to the extent that you can group a bond sale into a bigger amount and do fewer larger sales. You want to do that it's cost effective 268 00:40:55.210 --> 00:41:12.579 Remo Douglas: um. In this case we had a two thousand and twenty series, and we're having a two thousand and twenty-two series, because we knew we it wasn't practical to attempt to complete all of the work within three years, and there's uh regulations around um! How quickly you spend the money once you get it. 269 00:41:12.590 --> 00:41:22.000 Remo Douglas: Um! And so we did this two step on purpose. Uh, when we were considering this summer doing some refinancing 270 00:41:22.010 --> 00:41:39.030 Remo Douglas: um. We talked with both Piper and Mercer Sandler Shannon. Uh and said, Well, um! Should we break those two up the refinance and the new bonds, or what is best? And it was once again a reminder of Uh, there's a lot of efficiency 271 00:41:39.040 --> 00:41:53.049 Remo Douglas: um for the cost of doing the bond sale to group those things so um one could break it up into two. Um! But we would spend more of the bond money on getting the bond money. 272 00:41:53.060 --> 00:41:59.670 Remo Douglas: Um, and we expect that the new primary school cost would be a lot higher later. 273 00:42:02.330 --> 00:42:05.259 Remo Douglas: Perhaps Uh, Jim or David could 274 00:42:05.280 --> 00:42:13.980 Remo Douglas: could uh comment briefly on um. The notion of efficiency, of of breaking up or not phone sales. 275 00:42:18.460 --> 00:42:28.260 David Ulbricht: Uh yeah, I mean, I didn't want to interrupt Jim or Courtney with with their response. But you know you you're exactly correct in your assessment. From the standpoint of 276 00:42:28.340 --> 00:42:39.899 David Ulbricht: there's an economies of scales that's created by issuing, you know, one series of bonds rather than multiple series of bonds, because each time you issue a bond there are 277 00:42:40.160 --> 00:42:43.830 David Ulbricht: costs that are involved there, you know. Just be it incurred 278 00:42:43.900 --> 00:42:50.540 so as an aggregate, those costs may be higher than it would have been otherwise if you would have just issued the one bond itself. 279 00:42:50.600 --> 00:42:55.890 David Ulbricht: So when you break it up into a series, those cost. Um, you know, can 280 00:42:56.410 --> 00:43:06.409 David Ulbricht: we increase naturally, but also from a standpoint, it with those increased costs it would diminish the amount of proceeds for your projects as well. 281 00:43:08.140 --> 00:43:09.600 Jim Shannon: I agree. 282 00:43:10.350 --> 00:43:12.350 Remo Douglas: Okay, 283 00:43:13.050 --> 00:43:29.120 Kathy Ludwig: Um, Dr. Ludwig, I don't know if you. If you want to speak to enrollment, I've seen some of those numbers, but and it's just a reminder for the Board, the new primary school, and Wilsonville is not being built 284 00:43:29.170 --> 00:43:47.619 Kathy Ludwig: as a full completion school within this bond, if you recall. It's what we call a starter school, so we already are watching the incremental uh growth that's happening in Wilsonville, knowing that we don't need a school right away. 285 00:43:47.630 --> 00:43:59.279 Kathy Ludwig: That has a five hundred student um capacity. Which is why the project that's on this bond is for I think it's a two, fifty, three hundred 286 00:43:59.550 --> 00:44:03.880 Kathy Ludwig: capacity, just with the nod, remove 287 00:44:04.170 --> 00:44:05.700 Kathy Ludwig: within, 288 00:44:05.800 --> 00:44:18.299 Kathy Ludwig: with the design that we would add the additional porches um later, probably in a subsequent bond. So already we're looking at those kinds of enrollment projections. 289 00:44:18.520 --> 00:44:27.909 Kathy Ludwig: We do know, you know, across the State of Oregon, that public schools are down temporarily with enrollment. Um and with 290 00:44:28.230 --> 00:44:34.730 Kathy Ludwig: housing markets kind of slowing a little bit um, but that we don't expect that to 291 00:44:34.880 --> 00:44:52.580 Kathy Ludwig: stay permanent. Um As we look around there are mounds of dirt being moved and houses being built, and that area of Wilsonville where the growth is projected is still on track to be completed, and so we will need by the time this school opens. 292 00:44:52.590 --> 00:45:01.419 Kathy Ludwig: Um, we will need to start to to make some of those shifts around um our starter enrollment. 293 00:45:02.120 --> 00:45:15.180 Kathy Ludwig: Um in terms of capacity and enrollment. I think we have to be careful with those terms. A building might have a certain capacity in terms of square footage, but we don't, 294 00:45:15.280 --> 00:45:17.960 Kathy Ludwig: but we enroll students differently. 295 00:45:18.000 --> 00:45:21.909 Kathy Ludwig: For example, our community likes smaller class sizes, 296 00:45:22.230 --> 00:45:35.960 Kathy Ludwig: and may not like to use the square footage per student kind of methodology that's out there, and so capacity might be larger than where our families feel comfortable with their class sizes. 297 00:45:36.050 --> 00:45:45.099 Kathy Ludwig: Um! And so we've maintained smaller class sizes in our elementary schools than maybe what other districts have. 298 00:45:45.180 --> 00:45:49.640 Kathy Ludwig: Um. Additionally, Boone's Ferry, when it was built. 299 00:45:49.890 --> 00:45:52.830 Kathy Ludwig: Um was built in the days when 300 00:45:52.850 --> 00:46:04.619 Kathy Ludwig: large schools was becoming a wonder around a trend. And so the capacity of Boone Sperry with, if you, if you remember being in doing it, it has two gymnasiums, 301 00:46:04.700 --> 00:46:09.910 Kathy Ludwig: two wings that go out kind of in a V shape two common areas. 302 00:46:10.100 --> 00:46:26.189 Kathy Ludwig: It's capacity is much larger than we would ever allow the enrollment there to be. So we do keep that school um at an enrollment um around five hundred, and wouldn't allow it to go to an eight hundred or eight fifty 303 00:46:26.240 --> 00:46:44.049 Kathy Ludwig: um elementary school. Um, although the time when it was constructed there was some thinking at that time, I think, by by folks that large elementary schools might be something that a community would prefer, and we know now that our communities prefer 304 00:46:44.060 --> 00:46:50.980 Kathy Ludwig: um more medium sized elementary schools where students are known. Um, and there aren't as many 305 00:46:51.540 --> 00:47:08.010 Kathy Ludwig: children in them. Um! So we have. That enrollment is at a place where we would say, is where it needs to be at Boone's Ferry, and also at Lowry. Um. Beckman has gone down slightly, but it's enrollment is gone 306 00:47:08.190 --> 00:47:14.950 Kathy Ludwig: back up again this year. I don't know the exact number, and where the growth is happening is actually around Beckman, 307 00:47:15.400 --> 00:47:18.319 Kathy Ludwig: and so we're not concerned 308 00:47:18.420 --> 00:47:31.319 Kathy Ludwig: that we wouldn't need this school. Um! We feel confident that we will need this new school built. What we can control for is, you know, that opening date? Um, but delaying it 309 00:47:31.480 --> 00:47:33.040 Kathy Ludwig: um too long 310 00:47:33.110 --> 00:47:39.109 Kathy Ludwig: increases the cost of the school being built. It's kind of like When you remodel your kitchen, 311 00:47:39.200 --> 00:47:40.259 Kathy Ludwig: you might, 312 00:47:40.590 --> 00:47:58.029 Kathy Ludwig: you know, wait till you've saved a little bit more, but two years from now the cost of everything costs more. And so then you actually need more money. Um! And you know, Think of that exponentially for an elementary school. Every year of delay increases by a certain percentage, the cost of actually constructing 313 00:47:58.040 --> 00:48:02.149 Kathy Ludwig: because of labor because of gas because of product material. 314 00:48:02.400 --> 00:48:05.349 Kathy Ludwig: So there is this fine line of, 315 00:48:05.410 --> 00:48:22.599 Kathy Ludwig: you know, going out now, while we know we will need this school. But delaying it would result in a much more costly elementary school, and we would need, you know, probably to go out to our community for um another larger bond, just even to the starter school. 316 00:48:22.820 --> 00:48:41.079 Kathy Ludwig: So we we know we can build that starter school with with the bonds that have been allocated by the voters. Um in front of us today, and that's what we'd like to do. So That is Our recommendation to you is that we sell these bonds, and we do ask that this parameter um 317 00:48:41.120 --> 00:48:47.219 Kathy Ludwig: be approved by the board, so that we we can sell the bonds, knowing that inflation is a little higher. 318 00:48:47.290 --> 00:48:48.439 Kathy Ludwig: Um, 319 00:48:48.710 --> 00:48:50.169 and we're 320 00:48:50.500 --> 00:48:54.179 Kathy Ludwig: confident that our um bond underwriters will 321 00:48:54.330 --> 00:49:03.280 Kathy Ludwig: work um with due diligence, and also with David as our Independent Council, watching those rates. Um getting us a rate that hopefully isn't 322 00:49:03.450 --> 00:49:10.579 Kathy Ludwig: isn't near six point five, and doing the best that we can but appreciate um the board um 323 00:49:10.820 --> 00:49:22.670 Kathy Ludwig: giving us some cushion there so that we can get these sold and these projects um that are encumbered completed, and the ones on the horizon. Um, staying on our timeline, 324 00:49:22.900 --> 00:49:27.540 Chelsea King: all right. Thank you so much. Uh, by sure, Thompson, do you have any further questions, 325 00:49:27.730 --> 00:49:40.950 Christy Thompson: You know. I guess i'm just still um. I I hear it all, and it all makes sense that it, You know we built. If we wait to build it later, It's gonna cost more money, and I guess Still, where I just struggle a little bit is, 326 00:49:41.240 --> 00:49:42.330 Christy Thompson: you know, 327 00:49:43.070 --> 00:49:48.479 Christy Thompson: doing and I apologize. That's my dog um in the background. Um, 328 00:49:49.730 --> 00:49:52.340 Christy Thompson: I guess I just want to make sure that 329 00:49:52.750 --> 00:49:55.210 Christy Thompson: I want to be um 330 00:49:55.410 --> 00:50:10.750 Christy Thompson: want to be super responsible with our taxpayers money, and that's where my, you know I I want to. And so that's why I want to ask all these questions, and I want to know where. What do our numbers look like at these other 331 00:50:10.760 --> 00:50:17.659 Christy Thompson: great schools, Do we really, in fact, need I mean, I understand it will cost more money in a couple of years. 332 00:50:17.960 --> 00:50:19.040 Christy Thompson: Um. 333 00:50:19.410 --> 00:50:21.799 Christy Thompson: Do we really, in fact, need 334 00:50:21.870 --> 00:50:29.959 Christy Thompson: this great school? But and that was my reason for asking about capacity in the other school. Um, I just. I I want to be very. 335 00:50:30.740 --> 00:50:35.299 Christy Thompson: It's not. You know we're dealing with other people's money, and and so 336 00:50:35.490 --> 00:50:50.239 Christy Thompson: I just want to know that that we yes, we need the school. I understand It's going to cost more if we wait. But I I hope that's coming, and so um! That's just where i'm still in a little bit of a struggle, 337 00:50:50.250 --> 00:51:04.879 Remo Douglas: and I think I I hear that the spirit of what you're looking for, and I can tell you that uh no one spends more time worrying about that uh, with this program than I do uh it. It is my uh. It is my 338 00:51:04.890 --> 00:51:19.009 Remo Douglas: uh goal of this five year period. Um! To do this Well, to do the make the right choices with these projects provide the right guidance or uh recommendations. I should say um to the administration around this program. 339 00:51:19.020 --> 00:51:25.830 Remo Douglas: Everything we're hearing from the city of Wilsonville is that the Frog Pond area is going to develop, 340 00:51:25.940 --> 00:51:41.910 Remo Douglas: and when two thousand more homes are built over the next ten, or perhaps twenty years. If things slow down. Um, that school will be vital. Um, and our ability to be ahead of that a little bit. 341 00:51:42.000 --> 00:51:52.879 Remo Douglas: Um is very important to success. When we built the Lowry Primary school, I remember standing in in the nearly completed building and looking at all the farm fields around it. 342 00:51:52.930 --> 00:52:12.519 Remo Douglas: Um! And uh, the principal was a little worried if there would be enough students coming uh, and two years later he was asking if we could build an addition. Um, it. It really does happen that quickly. Um. And we have data from our demographics firm that tells us. 343 00:52:12.530 --> 00:52:29.700 Remo Douglas: Um, every house is point two, three, or, you know. Don't quote me on the exact number. Um, but uh, they know how many students come from each home, on average. And when you put these very large blocks together Um! The need for this starter school 344 00:52:29.710 --> 00:52:43.439 Remo Douglas: in the next several years. Um, there. There's no question in my mind having seen the data. Um! That that need is absolutely there. Um! The exact timing, as the district may consider another bond in the future. 345 00:52:43.450 --> 00:53:01.079 Remo Douglas: Um, you know, we'll need to do new demographic studies and see, you know, when does that full build need to happen? Um, Sometimes the full build is needed right away, you know, under a next program, or sometimes that could be five, ten more years out. Um, but we will have 346 00:53:01.090 --> 00:53:18.260 Remo Douglas: um. We'll have the right process before our next program to verify that there's of course, Meridian Creek um, which is a starter school as well. Um, We didn't expand it under this program. Um. But depending on over the next two years how we see Wilsonville 347 00:53:18.270 --> 00:53:31.610 Remo Douglas: moving forward with all of their development. Um! We'll be able to have a very clear idea of when more capacity is needed. Um! But, uh, in my mind, the need for this start of primary school is unquestionable. 348 00:53:37.370 --> 00:53:53.450 Chelsea King: All right, very good. So just a time check that we have a few minutes remaining, and um uh Director Wyatt. I know you haven't had a chance to ask questions yet, so my hope is to give you a chance, and then we have a motion on the table. Maybe we can um be ready for vote at that point. Go ahead, Director Wyatt. 349 00:53:54.290 --> 00:54:03.390 Kirsten Wyatt: Uh, thank you. And uh, I just have a quick comment. Um! And I I think it follows up to the great questions from Director Thompson and Director Taylor. 350 00:54:03.400 --> 00:54:32.569 Kirsten Wyatt: Um, and I know that this you know the num. It's such a it's such a big number. I think all of our families in our district, you know, are feeling the current economic conditions. Um, And so it is. Um! It is really tempting to, you know, to figure out just like we do. You know, in our own lives, where we can cut back, or where we can try to find some savings, and um I have the um pleasure of being the board um liaison to the long-range planning committee. It's also the bond oversight committee, and um. 351 00:54:32.580 --> 00:54:52.020 Kirsten Wyatt: I know that um director, King and Thompson you've also, you know, had that opportunity. But what I observed from that committee and from the work of the Operations department. Um is their laser. Focus on um on how all of our capital projects are planned and how the money is spent. 352 00:54:52.030 --> 00:55:11.150 Kirsten Wyatt: Um! They're spending, you know, considerable time tracking construction costs um really figuring out how to plan ahead. Um how to maximize the money that the voters have been trusted us with um, and I feel like that concept of sound financial stewardship is really baked in. And I think that that's something that 353 00:55:11.160 --> 00:55:31.129 Kirsten Wyatt: the long range planning committee fees, you know, when we meet quarterly? Um! And so you know again, the number is big. It's tempting to say like, where do we find savings? But I have complete confidence that if they're saying, now is the time. And we do this because it's the way that we can maximize the bond money that we have 354 00:55:31.140 --> 00:55:43.889 Kirsten Wyatt: um. I know that they've done their work, and that and they've and they've done that well. Um, they've looked at all of those numbers for projected development. Um, And so I just been, and sharing this from my perspective as a board member 355 00:55:43.900 --> 00:55:53.899 Kirsten Wyatt: to kind of echo what Mr. Douglas was just saying um in the work that they've been doing, and the research that's been done. Um! And so I have confidence, and we'll be um supporting the resolution. 356 00:55:57.530 --> 00:56:00.430 Chelsea King: All right things, Director. Why, it so. Um, 357 00:56:00.440 --> 00:56:19.499 Chelsea King: it's. We've been at this for about an hour. Um! We have a couple of people who have shared where they are with the the vote. Uh, certainly. Don't want to rush a big decision if folks want to. They feel like. If you have a another question you need to have answered before you feel comfortable voting, or if you want to make a statement before the vote, now is your opportunity 358 00:56:25.010 --> 00:56:27.850 Chelsea King: all right? I think i'm seeing none. 359 00:56:28.650 --> 00:56:32.450 Chelsea King: So i'm going to ask Ms. Douglas to please call the vote. 360 00:56:32.740 --> 00:56:36.959 Kelly Douglas: Certainly. Chelsea King I Kristy Thompson. 361 00:56:39.740 --> 00:56:42.130 Christy Thompson: Hi, Lewis Taylor 362 00:56:43.650 --> 00:56:45.770 Kelly Douglas: alright, Kelly Sloop 363 00:56:48.890 --> 00:56:51.379 Kelly Douglas: I Kirsten. Why, it 364 00:56:51.870 --> 00:56:53.790 Kelly Douglas: Okay, Thank you. 365 00:56:54.770 --> 00:57:14.620 Chelsea King: All right. Thank you so much. Board for uh, making time and for asking such thoughtful questions, and to um all the staff and experts who lended your expertise as well. Um, and thank you, uh, Pat and remote, with our capital bond management, Dr. Ludwig, would you like to make any closing statements. 366 00:57:16.310 --> 00:57:36.819 Kathy Ludwig: I just want to echo what you said. Um, both you and Director Wyatt. Um, thank you just for being so thoughtful. I would expect nothing less than that from this board. Um, and that is why the community um I know, is so grateful that the five of you um are on this leadership team. You read every document we send you. You ask great questions. 367 00:57:36.830 --> 00:57:59.739 Kathy Ludwig: You're fully present You're invested in the conversation. Um, and we appreciate that. That's what you're charged to do, and you've done that today. Um! And we appreciate that. And if there are any other, follow up questions um feel free to send them our way, and any one of our staff would be happy to meet with you. Um! And talk more about. You know how the process moves forward from here. So thank you so much. 368 00:58:00.230 --> 00:58:13.919 Christy Thompson: Great. Uh, by Sir Thompson. Yeah. Just to follow up on that Dr. Late. So when they and I don't know the correct terminology. Go out for and and will we? I am assuming that we will hear what that rate is 369 00:58:14.010 --> 00:58:16.470 Christy Thompson: that the bonds were sold at. 370 00:58:16.730 --> 00:58:23.160 Kathy Ludwig: Yes, we absolutely will give you that information when the sale happens. And yes, absolutely thank you. 371 00:58:23.270 --> 00:58:34.389 Kathy Ludwig: I'm looking looking for remote in my gallery. There he is. I see I see him nodding, and I also see Mr. Mcguff's thumbs up. So yeah, I'll be curious what you know. So if we all want to know. 372 00:58:35.470 --> 00:58:39.579 Chelsea King: All right. Very good, thank you. Everybody, and the meeting is adjourned. 373 00:58:39.890 --> 00:58:42.179 Chelsea King: Thank you. Bye, bye,