11-12-2015 Work Session Minutes - Laserfiche WebLink

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/ 6`�`�_� `� ��v� 34B7North mnmooRoad, Idaho Falls, Idaho, u3401 (208) 525-4400 Fax (208) 529'0104 wwwV93schuo|sorn s`:u^,,|�r^'x':.,'v`/^^o/�",�.m"``x,." Work Session Board 0fTrustees Coeur d'AlePe/Idaho Thursday, November 12,2016 12:00 noon i Call \oOrder Chairman McBride called the meeting to order at 11:45 a.m. He thanked Eric Heringer from PiperJaffray for all his support and efforts made in our behalf for the victory of passing the bond. He also recognized Nicholas Miller from Hawley TmxoUfor being inattendance, U. Roll Call Chairman Brian McBride present Vice Chairman Paul Jenkins present Treasurer Amy Landers present Trustee Jeff Bird present Trustee Greg Calder present Ui Welcome Visitors and De|emadiona Others in attendance were Chief Financial Officer April Burton, Rocky Mountain Middle School Vice Principal Thomas Kennedy, Deputy Superintendent MarjeanMcConnell, Superintendent Charles Shaoke#. EhcH*hnger. Danielle Quade, Nicholas Miller, Chelsea Porter, Scott StraUbhar, and Board Clerk Mary Mortenson. IV, Items for Discussion A. Bond Issue Plannina—Chairman McBride turned the meeting over toEric Heringer,PiperJuffrayand Nicholas Miller, Hawley Troxell. Mr. Hahngmrdistributed adocument, Bond Sale Planning, November /2, 20/5toall inattendance. The key points were: ° Bond Election Planning assumptions lists the details of the bond that were prepared and accepted by the board and proposed for the November 2O15bond election. " This plan also includes future Supplemental maintenance and operation levy allowances for 2017 or 2018 as needed. ~ Market value growth assumption io4.O0Y6annual growth. " With the passing of the Novernber Bond, the District property tax levy rate will increase from $5.45 to $5.80 per $1,000. This increase allows for flexibility and includes supplernental levy increase, ° Selling the bonds will be impacted by interest rates and the municipal bond market; interest rates have been increasing recently. Short term rates will increase more rapidly than long term rates, ° In the tax collection cycle, it is best to sell bonds in March 15, 2016 which will be paid back by September 15,2033, ° |fthe bonds are entirely sold and interest rates are locked in, the money will h*invested and start earning interest throughout the three year construction timeframe. This could be advantageous when short term interest rates increase. ° If the bonds are sold as a split sale, there Could be potentially $1.96 million saved in interest costs; however, ifinterest rates increase, potential savings Could belost inmsplit sale. ° For the split sale consideration, locking ininterest cost isbest for longer bond maturities, Also allows additional flexibility to manage levy rates and be able to fine tune our bond payments.