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From YouTube: CCSD Board Budget Workshop 2/27/2023
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A
B
And
board
members.
Thank
you
for
attending
today
our
board
budget
workshop
on
February
27
2023..
B
If
we
can
have
the
presentation,
please
and
I'll
start
talking
through
the
purpose
and
intent
of
today's
Workshop,
so
we
craft
this
Workshop
to
engage
with
the
board
a
fundamental
understanding
and
knowledge
of
our
budget
development
process,
our
revenues,
our
expenditures
and
our
Capital
program
and
and
capital
investment
financing.
So
today
we'll
be
covering
those
areas.
Specifically,
you
all
should
be
able
to
see
the
presentation
on
your
screens,
but
let
us
know
if
you
need
more
time
to
pull
them
up.
Thank
you,
okay
again,
next
slide,
please.
B
So
the
first
thing
to
note
is
that
we
have
some
additional
engagement
coming
up
with
the
board,
so
in
April,
in
addition
to
this
financial
overview
that
we'll
cover
today,
we'll
have
an
fy24
budget
update.
This
is
where
we
come
to
the
board.
Let
you
know
the
status
of
the
FY
24
budget
development
process,
major
assumptions,
key
discussions
around
the
budget
development
at
the
time,
and
we
just
engaged
with
the
board
for
discussion
and
feedback
in
may.
We
again,
we
come
before
the
board
to
present
the
first
reading
of
the
budget.
B
This
is
basically
the
preliminary
budget
that
we
push
forward
with
Revenue
assumptions
if
the
state
budget
is
pretty
solid.
At
that
point,
we
come
forward
with
our
Revenue
assumptions,
as
well
as
any
expenditure
assumptions
that
we
have
an
organizational
outstanding
organizational
decisions
that
we've
made
at
that
point
by
June,
we
come
to
the
board
with
a
second
reading
of
the
budget.
B
That's
the
budget
finalization,
that's
where
you'll
vote
and
adopt
the
budget,
but
we
go
through
the
final
revenues
anticipated
final
projected
revenues,
the
anticipated
expenditures
for
the
fiscal
year
and
any
key
assumptions
in
the
budget,
and
we
just
engage
in
a
q
a
in
advance
of
your
vote.
Okay,
thank
you
next
slide,
please.
B
So
again,
today,
the
process
that
we've
outlined
is
to
talk
through
the
budget
development
process.
To
give
you
guys
a
forty
thousand
dollar
forty
thousand
dollars.
Sorry,
forty
thousand
foot
view
of
what
our
budget
development
process
looks
like
what,
where
are
Revenue
sources
are
where
they
come
from
expenditures.
What
are
our
primary
expense
drivers
and
fund
balance?
It's
the
we'll
talk
about
how
we
build
our
fund
balance
and
have
built
our
fund
balance
over
the
last
several
years
and
then
finally,
we'll
close
out
with
the
audited
financials.
B
This
will
cover
the
the
budget
Workshop
related
to
the
general
operating
fund.
Subsequent
to
this
presentation,
we'll
have
our
bond
Council
and
pfm.
Our
financial
advisors
cover
the
capital
portion
for
you
to
provide
a
foundational
knowledge
of
that
as
well.
Next
slide,
please
next
slide,
please,
okay,
budget
development
process,
so
the
big
picture,
what
happens
when
we
develop
School
budgets,
so
the
budget
development
process
for
us
really
starts
with
the
enrollment
projections.
The
enrollment
projections
are
where
we
project
out
the
anticipated
enrollment
as
a
district
as
well
as
at
partic
at
each
particular
school.
B
This
has
funding
implications
for
the
schools
and
also
it
gives
us
a
a
really
good.
It
gives
us
really
good
insight
into
what's
happening
in
our
schools.
Whether
students
are
more,
students
are
coming
in
or
more
students
are
leaving
the
system
where
they're
coming
at
Etc,
so
that
process
is
actually
managed
by
our
director
of
real
estate,
Miss
Angela
Barnett.
She
actually
works
under
Mr
burori
in
his
shop,
and
so
she
starts
with
the
enrollment
projections
for
the
upcoming
fiscal
year.
She
uses
a
number
of
assumptions
just
to
name
a
few.
B
B
Next
is
the
CRF
development.
Crf.
Is
a
contract
recommendation
form?
So
what
this
is
It's
a
form
that
we've
designed
all
schools
have
access
to
this
form
and
it's
a
complete
roster
of
all
the
employees
in
their
school
and
the
intent
behind
it
is
to
see
what
positions
are
filled
with
positions
are
vacant
and
also
to
establish
intention
on.
C
B
B
This
information
then
goes
to
HR
and
they
have
an
entire
process
on
that
they
go
through
and
Mr.
Bergman
is
here
to
speak
through
that.
If
you
all
have
questions
in
order
to
decide
what
the
teacher
contract
issuing
is
going
to
be
issuance
will
be
the
staff
allocations
process
just
to
go
through
that.
So
we
look
at
the
projected
enrollment
at
each
school
and
we
use
a
ratio
to
determine
the
number
of
teachers
that
are
provided
at
each
particular
school.
B
B
This
is
an
enormous
process.
We
take
all
the
information
from
the
schools.
We
take
all
the
information
from
the
central
office.
We
look
at
the
budget,
we
look
at
expenditures
and
we
go
through
cleaning.
The
data
scrubbing
the
data
to
really
make
sure
we
balance
budget
to
expenditures
legally,
you
have
to
have
a
balanced
budget,
and
so
we
go
through
that
process
and
that's
how
we
establish
the
budget.
That's
presented
forward
to
you
now
there
are
a
lot
of
in
between
steps
in
each
one
of
these
processes.
B
This
is
just
a
very
big
picture,
high
level.
Once
we
have
the
budget
reconciled,
that's
we
go
to
First
reading
as
I
discussed
earlier.
Then.
Second,
the
board
then
approves
the
budget,
and
then
what
happens
once
the
budget
is
approved,
July
1
the
budget
is
active
and
live.
We
begin
to
transact
financially,
we
record
those
financial
transactions
and
we
do
monthly
financial
reporting.
So
those
are
the
reports
that
have
been
coming
to
the
committee
on
the
board
with
to
say:
here's
a
snapshot
of
our
revenues,
our
expenditures.
B
This
is
how
we're
anticipating
to
end
the
current
fiscal
year.
It's
us
keeping
a
pulse
on
the
budget
that
we
developed
with
the
actual
activity.
That's
happening
financially,
once
the
fiscal
year
closes.
We
have
an
external
audit
firm,
come
in
to
do
financial
statements,
so
the
district
is
obligated
to
have
an
external
Financial
audit
and
we
have
our
external
Auditors
green
Finney
is
the
current
audit
firm
that
we
use
and
they
audit
our
our
budget
through
their
process.
We
give
them
a
trial
balance
and
they
begin
to
work
through
their
scenarios
and
their
testing.
B
D
Good
afternoon,
as
Miss
Williams
noted
on
the
previous
slide,
projected
enrollment
is
the
starting
point
for
developing
our
school
budgets
and
we
track
it
year
over
year
for
enrollment
Trends.
This
chart
summarizes
the
total
projected
and
seven-day
enrollments
for
FY,
22
and
23,
and
the
projected
enrollment
for
fy24
and,
as
she
said,
enrollment
by
school
and
grade
level,
is
projected
for
the
next
fiscal
year
by
the
operational
planning
department
in
the
spring,
and
it's
used
for
Budget
planning.
D
The
seven
day
process
will
be
described
in
a
bit
more
detail
on
an
upcoming
slide
next
slide.
Please.
D
D
In
the
first
example,
we
have
a
school
with
projected
enrollment
of
159
students
in
second
grade
and
going
across
the
table
with
a
class
size
divisor
of
25
students
per
class.
We
get
6.36
if
you
do
the
math,
but
for
elementary
schools.
We
round
that
up
to
seven
ftes
for
that
classroom,
So
based
on
those
students
and
that
divisor
we
would
have
seven
teachers
in
that
school
for
second
grade
the
number
all
the
way
over
to
the
right
hand.
Column
is
a
per-pupil
school.
D
What
we
call
a
per
pupil
school
supply
allocation
schools
are
allocated,
75
dollars
per
student
and
that
is
to
cover
supplies,
media
center
items
Printing
and
copying
and
other
school
expenses.
So,
in
our
second
grade
example,
we
had
159
students
at
75
dollars
per
student,
that
school
will
receive
11
925
dollars
for
those
non-salary
expense
allocations
and
then
at
the
school's
discretion.
They
divide
that
money
up
and
decide
how
to
spend
that
on
their
school.
D
D
D
D
So
working
down
the
examples,
there's
an
example
of
a
fifth
grade,
the
the
math
on
all
of
them
works
exactly
the
same.
The
divisors
are
different,
depending
on
what
grade
level
and
grade
span
and
in
middle
schools
and
high
schools
we
round
up
if
the
calculation
comes
out
to
over
0.5
and
we
round
down
if
it's
under
a
0.5
next
time,
Maggie.
B
So,
thank
you,
Mr
Sizzler,
so
toggling
back
to
further
detailing
the
seven
day
adjustment
review
process.
So
we
start
off
with
a
budget
based
off
of
projected
enrollment.
On
the
seventh
day
of
school,
we
take
actual
enrollment,
that's
attendance
students
in
seats.
Once
we
have
the
actual
enrollment.
We
then
compare
it
to
the
projected
enrollment
and
we
look
at
if
there
are
variances.
So
if
there
are
more
students
or
less
students,
then
we
projected
or
anticipated.
If
there
are
variances,
we
then
work
through
a
process
to
adjust
that
school's
Staffing
allocation.
B
So
it's
a
true
up
of
our
enroll
projected
enrollment
in
our
actual
enrollment
and
that's
how
we
reallocate
the
Staffing
Resources
to
schools
to
make
sure
our
schools
have
adequate
staff
in
place
for
the
number
of
students
they
actually
have
and
throughout
this
process.
This
isn't
just
a
financial
process.
E
So
for
General
operating
fund
there
were
four
sources
of
revenue.
Excuse
me
there's
local
sources,
State
sources
Federal
and
what
we
call
transfers.
The
transfers
basically
are
reimbursements
from
special
Revenue
funds,
whether
it's
part
of
the
eia
allocation
to
cover
salaries
and
benefits,
or
it
could
be
overhead
costs
from
other
special
Revenue
funds
to
reimburse
general
fund
the
location.
Excuse
me,
the
local
sources
are
about
62
percent
of
our
overall
revenues,
whereas
State
sources
are
about
35
percent
and
transfers
are
3.6
percent,
so
our
budgeted
FY
23
revenues
are
at
640.8
million
dollars.
E
E
So
majority
of
the
districts
local
revenues
come
from
property
taxes,
also
known
as
local
tax
revenues.
Taxes
are
levied
on
personal
property,
as
well
as
non-owner
occupied
real
property
based
on
a
set
millage
rate
that
is
approved
by
the
board.
There's
a
millage
limitation
on
the
actual
increase
which
is
based
on
the
local
population.
Growth
plus
the
Consumer
Price
Index
increased
and,
unfortunately
those
numbers.
We
have
to
wait
on
those
numbers
to
come
to
us
from
the
South
Carolina
revenue
and
fiscal
Affairs
office.
E
E
E
This
is
what
we
are
projecting
to
to
receive
whenever
you
combine
the
motor
vehicle
taxes,
so
you'll
notice
that
we
have
motor
vehicle
assessments
January
through
June
and
then
another
line
line
item
that
has
motor
vehicle
taxes
prior
year,
July
through
December,
and
that's
because
if,
if
there
is
a
millage
increase
change
or
a
millage
change,
the
January
through
June
represents
the
new
millage
rate,
whereas
the
July
through
December
at
one
day
I'm
sorry
the
prior
year
July
through
December
for
Motor
Vehicles,
represents
the
old
or
the
prior
year,
millage
rate.
E
And
so,
whenever
you
add
in
the
prior
year
July
through
December
for
Motor
Vehicles,
then
we
get
a
projected
tax
revenue
before
credits,
and
this
is
the
number
that
we
consistently
tie
back
to
the
Charleston
County
Auditor's
office
with
so
that
we
know
we
have
a
good
Baseline
now.
The
next
sign
item
is
we
don't
have
any
control
over
this,
but
these
are
the
tax
increment
financings,
as
well
as
economic
rebates
and
you'll
notice.
E
A
What
was
it
zero?
Oh
I
was
just
gonna
say
on
these
tiffs.
How
long
are
these
tiffs
in
place?
I
mean
there's
how
many
of
them.
E
E
We
have
six
Active
tiffs
right
now:
they're
called
tax
incremental
financings.
We
have
three
with
the
City
of
Charleston
and
we
have
three
with
the
city
of
North
Charleston.
We
have
two
that
have
been
approved
that
are
not
active.
The
last
time,
I
checked
with
the
auditor's
office
and
so
and
they
I
have
a
I.
Have
information.
I,
don't
have
with
me
right
now,
but
I've
got
I
track
them
with
end
dates,
and
if
memory
serves
me
right,
the
the
the
most
recent
one,
that's
an
active
tip,
won't
end
until
2038..
So.
B
B
C
Would
add
when
When
Miss
Carlson
said
that
we
don't
have
any
control?
That's
a
true
statement.
We
don't
have
control
of
it
over
existing
tips,
so
those
are
already
locked
in
for
how
whatever
period
of
time,
but
the
board
does
have
control
over
any
proposed
new
tests.
It
was
two
or
three
years
ago
we
actually
developed
a
tiff
policy
in
that
policy.
C
Simply
says
that
that
we
I
mean
it's
a
necessary
document,
but
essentially
says
that
a
wee
in
the
district
is
in
the
in
the
in
the
business
of
educating
students,
as
opposed
to
supporting
the
economic
development
of
the
community
of
the
county,
and
so
there
has.
There
has
to
be
some
really
compelling
reasons
that
would
support
support
The
District
in
order
for
the
board
to
agree
to
go
into
a
tiff,
and
so,
but
that's
a
policy
that
was
put
in
place.
Maybe
three
years
ago.
F
C
No,
no,
what
I'm
saying
is
definitely
any
any
future
proposed
to
us.
You
all
have
absolute
control
over
that,
whether
you
wouldn't
want
to
go
through
a
tiff
and
participate
or
not-
and
it's
been
the
history
since
we
put
the
that
policy
in
place
that
we
have
not
participated,
but
for
the
tips
that
that
the
finance
team
is
going
to
provide
to
you
all.
That's
that
currently
exists.
We
have
no
choice
but
what
to
to
forego
that
that
23.7
million
dollars
per
year
until
the
tips
are
expire
and.
B
C
Me
Give
an
example
so,
with
the
attack,
the
Mount
Pleasant
Town,
Center,
The,
District
internet
to
a
tiff
agreement
with
Mount,
Pleasant
I,
don't
know
Carol
you
might
know
years
ago,
and
that
Tiff's
just
expired
I
think
probably
four
years
ago
and
at
that
point
we
losing
10
million
dollars
of
our
potential
Revenue
through
the
loss
of
that
Tiff.
But
but
it
expires.
So
it's
no
longer
in
this
23.7
million
dollars.
G
I
just
miss
William,
just
trying
to
clarify
you
said
the
last
tip
will
expire
in
2038.
B
G
G
E
C
So
the
bonds,
the
but
the
bonds
that
we're
referring
to
that
would
expire
they're,
not
the
district
funds.
They
have
the
bonds
that
the
whatever
governmental
entity
we
entered
into
a
tiff
agreement
with
they
issue
the
bonds,
and
so
we
will
committed
to
then
to
foregoor
that
Revenue
until
those
bonds
are
paid
off.
E
Correct
and
if
you
remember
remember,
I
noted
that
we
had
two
inactive
bonds
that
were
approved
by
this
board,
that
nothing
has
been
happening
with
them,
based
upon
the
conversations
I've
had
recently
with
the
Charleston
County
Auditor's
office,
and
so
so
to
can
I'm.
Sorry
too.
So
to
finish
out
this
slide,
you
know
we
come
up
with
our
projected
local
tax
revenue
after
the
reductions,
which
is
382.8
million
dollars,
and
how
we
calculate
the
value
of
a
mill.
E
Is
we
divide
that
number
by
130
mils
and
so
that
there
you'll
see
that
the
approximate
value
of
a
mill
is
about
three
million
dollars
and
I
tell
you
that
so
that
when
you're,
when
you're
having
budget
discussion,
discussions
and
you're
wondering
you
know
how
much
would
it
cost
for
us
to
just
hypothetically?
How
much
would
it
cost
for
us
to
increase
millage?
You
know
the
millage
rate
by
three.
It
would
be
nine
million
dollars.
E
Next
slide,
please,
so
this
slide
covers
the
different
categories
for
all
the
local
revenues
for
the
first
four,
the
first
four
line
items
actually
tie
back
to
our
local
tax
revenues,
the
ad
valorem,
the
delinquent
taxes,
the
other
taxes
is
also
our
heavy
equipment
taxes
and
then
our
fee
in
lieu
now
I
do
want
to
point
out
the
the
information
we
just
covered
on
the
prior
slide
does
not
include
what
we
budget
and
what
we
receive
for
delinquent
taxes
or
for
other
taxes.
E
So
if
you
add
the
ad
valorem
tax
line
item
and
the
fee
and
Lou
tax
line,
item
it'll
tie
back
to
what
we
were
just
discussing
before
we
calculated
the
mill
value,
and
so
we
also
have
regular
Day
School
from
patrons,
which
is
our
out-of-county
tuition.
You
know
when
we
have
another
student
attending
our
district
from
an
outside
County.
You
know
we
have
the
capability
to
build
the
parents
for
that,
for
that
cost,
and
that's
where
we
would
record
those
revenues.
E
The
next
slide.
We
have
interest
on
investments,
we
have.
We
earn
interest
on
several
several
of
our
bank
accounts
throughout
the
district,
and
the
next
line
is
rentals
and
leases,
and
this
is
where
we
would
record
whenever
we
run
our
facilities
out.
This
is
where
we
would
record
that
Revenue
coming
in
and
then
there's
receipt
of
insurance
proceeds
and
refund
a
prior
Year's
expenditures
and
miscellaneous.
E
So
the
local
Revenue
piece
by
itself
for
our
budget
was
393.6
million
dollars
and,
as
I
said
earlier,
when
we
actually
reported
or
whenever
we
reported
the
most
recent
Financial
update
for
December,
we
reported
that
we
were
going
to
come
in
over
budget
by
4.9
million
dollars
on
just
on
local
revenues.
E
E
So
shifting
to
State
revenues,
FY
23
was
the
first
year
of
the
new
state
aid
funding
in
Prior
years.
We
were
our
people.
Excuse
me,
our
Pew
per
pupil
funding
was
based
on
a
cost
per
student,
cost
I
mean
a
base
student
costs,
and
now
the
new
funding
is
completely
different.
There
are
more
variables
involved.
E
E
The
student
teacher
ratio
does
not
include
excuse,
me
does
not
just
include
classroom
teachers,
it
includes
special
ed
teachers,
Pre-K
kindergarten
library,
media
Specialists
guidance,
counselors
Etc
and
also
I'd
like
to
note
that
the
student
teacher
ratio
is
not
defined
by
class
size.
This
is
not
the
same
as
a
traditional
pupil
to
teacher
ratio
and
then
the
last
piece
this
is
this
is
real
important.
The
state
defined
the
cost
of
a
teacher,
the
state
defined
cost
of
a
teacher
is
not
the
same
cost
that
we
actually
pay
for
our
teachers.
B
Thank
you
Miss
Carlin,
so
just
to
recap
for
a
state
revenue.
So
this
data,
it's
a
classroom
program
allocation,
was
implemented
in
FY
233
through
the
legislative
session.
That's
our
new
funding
formula.
It
replaced
the
EFA
education
Finance
act,
funding
that
operated
off
of
a
base
per
cost
based
student
cost.
B
There
was
anticipated
to
be
property,
tax
relief
through
the
ACT
388,
and
that
was
from
owner
to
replace
owner
occupied
taxes
under
act.
388,
however,
and
restricted
state
revenue
for
specific
special
programs.
B
Funding
towards
teacher
salary
benefit
increases
in
retiree
health.
So
so
what
that
means
is
we
do
receive
revenues
from
the
state
to
supplement
a
portion
of
our
teachers
salaries.
However,
because
our
teachers
make
more
than
the
state
scales,
it's
never
a
fully
funded
initiative
from
the
state,
so
we
don't
receive
enough
funding
from
the
state
to
cover
our
teachers,
salaries.
B
Also
other
state
revenue
includes
a
portion
of
the
the
state
increase
the
portion
of
the
retirement
pension,
so
this
has
been
a
cause.
That's
been
gradually
shifting
over
to
districts
the
pension
shift
from
the
state
to
the
local
districts
they
fund
a
portion
of
that
General
operating
fund
funds,
the
rest
of
it,
so
it's
not
even
a
full,
fully
funded
obligation,
that's
being
pushed
over
to
the
school
district.
Thank
you
next
slide.
Please.
B
The
Paradox
is
that
at
388
limits
or
caps,
the
amount
of
Revenue
that
we
can
raise
based
off
of
the
property
value
by
limit
eliminating
school
districts,
operating
levies
on
owner
occupied
property,
but
it
doesn't
fully
replace
it,
meaning
act.
388,
says:
okay,
we'll
put
this
in
place.
You
can't
text
your
owner
occupied
properties,
here's
an
alternate
Revenue
Source,
but
it
doesn't
fully
fund
our
needs.
There's
a
paradox
where
it
limits
our
ability
to
Levy
and
to
generate
revenues
that
would
or
should
replace
the
owner
occupied
tax
income
that
we
would
get
next
slide.
B
D
Okay,
we're
going
to
move
on
to
talk
to
revenues
a
little
bit
now:
Health
expenditure.
Sorry,
this
graph
illustrates
the
breakdown
of
our
FY
23,
budgeted
general
fund
expenditures.
D
The
majority
of
our
funding
goes
to
support
our
schools
and
the
majority
of
that
support
is
in
the
form
of
salaries
and
benefits
so
working
around
from
the
top
of
the
graph
to
the
right.
The
blue
salaries,
orange
employee
benefits,
screen
purchase
services
and
yellow
materials
and
supplies,
wedges
total
77
percent
of
the
general
fund
budget,
and
that
represents
allocations
of
Staffing
services
and
non-salary
amounts
to
schools.
D
11
is
payments
to
school,
sponsored
Charter
and
partner
schools
and
another
11
is
district
offices.
The
final
one
percent
remaining
relates
to
Capital
outlay
and
reserves,
Each
of
which
account
for
less
than
one
percent
of
the
total
next
slide.
Please.
D
D
We
provided
a
step
increase
to
eligible
teachers
and
a
step
is
the
movement
of
one
increment
up
the
salary
schedule
for
a
year
of
experience
in
fiscal
22
and
for
many
years
prior
to
that,
the
top
step
on
our
salary
schedules
was
26
years
in
FY
23,
we
were
able
to
increase
the
maximum
step
from
26
years
to
30
years,
which
allowed
us
to
provide
additional
compensation
to
our
most
experienced
teachers
in
recognition
of
their
valuable
experience
to
us.
In
addition,
all
teachers
received
a
two
thousand
dollar
salary
increase
on
the
next
line.
D
The
total
cost
of
these
Investments
was
15.7
million
dollars
for
teachers
and
10.7
million
dollars
for
non-teachers,
and
there
are
also
annual
changes
in
the
employee
benefit
rates
which
impact
the
budget
each
year.
That's
the
table
at
the
bottom
of
the
slide
in
FY
23,
the
state
required
an
increase
to
the
employer
share
of
retirement
of
one
percent,
which
is
equivalent
to
approximately
three
million
dollars
in
cost,
and
we
projected
an
increase
of
1.7
million
dollars
to
the
cost
of
employer
health
insurance.
D
D
D
If
the
total
employer
contribution
rate
had
remained
15.9
percent,
which
was
the
rate
in
2015.,
our
FY
23
projected
budget
for
retirement
would
have
been
51
million
dollars,
but
because
this
rate
has
continued
to
increase
it's
now
at
23.81
percent.
Our
actual
projected
budget
for
retirement
from
FY
23
was
75
million
dollars.
B
B
One
in
addition,
so
if
you,
if
you
recall
the
pie
chart
that
you
saw,
you
saw
that
about
63
percent
of
our
total
general
fund
budget
goes
to
salary
and
benefits
and
retirement
for
our
employees.
In
addition
to
that,
we
have
what
we
call
contractual
must-dos.
So
when
you
start
to
think
about
student
transportation
and
energy
and
and
water,
those
are
must
Do's.
We
have
to
keep
the
lights
on
in
the
buildings.
We
have
to
keep
the
heat
going
et,
cetera,
et
cetera,
and
so
when
we
look
at
our
contractual
must
use.
B
These
are
just
a
few
that
we've
pulled
out
next
slide.
Please.
These
are
just
a
few
that
we
pulled
out
just
to
show
you.
So
we
have
our
obligations
with
our
charter
schools
and
meeting
streets
and
FY
in
FY
23
that
increased
by
5.6
million
dollars,
property
of
flood
insurance
a
little
under
half
a
million
dollars,
our
custodial
Grounds
Maintenance
and
other
contracts
related
to
operations
about
approximately
five
million
dollars,
and
these
are
just
the
increases.
B
B
For
example,
our
utilities
Lisa,
is
about
what
20
million
our
utilities
currently
is
about.
20
million
a
year
just
to
keep
the
lights
on,
and
so
there's
salary
benefits
retirement,
and
then
there
are
all
of
these.
Other
contractual
must
Do's
that
we
also
have
to
budget
for
annually
and
just
like
any
other
contract,
there's
inflation.
There
are
terms
and
agreements,
we
have
to
rebid
things
out
at
the
end
of
a
contract
term
Etc
and
we're
subject
to
Market
rates
at
that
particular
point.
So
next
slide.
Please.
F
I'm,
looking
at
this
correctly
on
custodial
Grounds
Maintenance,
another
contracts
am
I.
Reading
this
correctly
that
we've
gone
from
fiscal
year,
22
1.6
million
to
fiscal
year,
23
4.9
million,
almost
5
million
yes,
whoa.
A
A
A
B
One
thing
that
we
also
saw
to
piggyback
off
of
Mr
broey's
point:
there
was
a
significant
increase
in
inflation
in
the
market.
The
operations
cost
on
many.
Many
many
specific
areas
has
have
increased
and
we'll
talk
a
little
bit
about
that
later,
when
we
get
to
the
debt
portion
of
the
presentation
foreign.
B
Thank
you.
So
the
district's
financial
position,
so
I
want
to
talk
about
fund
balance.
Just
to
so
everyone
understands
what
it
is
and
and
how
we've
achieved
the
fund
balance
status
that
we
have
so
the
district's
fund
balance
is
a
major,
a
major
indicator
in
the
district's
financial
position.
It's
a
requirement
for
rating
for
debt
Etc.
It
also
really
speaks
to
the
health,
the
Financial,
Health
and
condition
of
the
overall
District.
B
So
the
fund
balance
is
a
total
accumulation
of
operating
Surplus.
Essentially,
revenue
is
less
expensive,
so
deficits
are
not
good.
Surpluses
are
are
good,
and
so
we
have
a
fund
balance
policy
here
in
the
district
that
we
use
to
manage.
Our
external
Auditors
have
vetted
our
policy
as
well,
and
what
we
try
to
do.
B
What
we
do
do
actually
is
make
sure
that
we're
in
compliant
with
that
policy,
and
we
make
sure
that
we
are
building
and
or
adding
to
fund
balance
by
being
good
Financial
stewards
over
our
resources,
so
positive
fund
balance
indicates
that
we
have
a
net
Surplus
and
has
and
have
exceeded
net
deficits,
which
is
great
next
slide
please.
B
So
this
side
is
important.
What
this
is
the
red
and
the
blue
lines
represent
the
district's
revenue
and
expenditure,
so
you
see
that,
as
our
expenditures
have
increased,
so
have
our
revenues
and
even
though
those
two
are
very
almost
similarly
parallel
and
and
almost
extremely
aligned,
we
still
were
able
to
create
a
healthy
fund
balance
for
the
district,
specifically
based
around
Good,
Financial
practice
and
intentionality,
and
so
we'll
talk
about
some
of
how
we
got
there
shortly
next
slide.
Please
all
right!
This
is
one
of
my
favorite
slides.
B
So
if
you
look
at
2014
look
at
2015
and
you
look
at
2016.,
the
district
was
in
significant
financial
disarray
at
that
particular
point.
So
much
so
where
it
triggered
the
attention
of
state
state
representatives,
legislators
Etc,
the
district
was,
you
know
at
the
time
fiscal
watch,
and
so
what
we
had
to
do,
and
so
let
me
tell
you
the
danger
in
this,
so
our
our
payroll
is
about
what
it's.
B
B
So
this
is
significantly
bad
from
FY
17
to
FY,
22,
Good,
Financial
leadership.
The
district
began
to
put
practices
in
place
and
really
focus
on
maintaining
and
achieving
fund
balance.
A
positive
Surplus
fund
balance
is
through
a
number
of
different
efforts.
One
was
being
more
intentional
about
the
budget,
actually
looking
at
positions:
the
district's
affordability,
studying
our
revenues,
closer
managing
our
expenses,
tighter
remediating
audit
findings
and
establishing
the
fund
balance
policy
and
year
over
year.
This
is
something
that
we
pay
explicit.
Close
attention
to.
B
The
audit
and
finance
committee
paid
very
close
attention
to
this
during
the
time
of
rebuilding
and
now
we're
happy
and
to
report
that,
as
of
FY
22,
we
have
158.9
million
dollars
in
fund
balance.
If
you
guys
recall
in
covet
during
covid,
Cove
could
happen
in
FY
22
we
were
able
to
maintain
flat
fund
balance.
That's
great.
There
was
a
lot
of
uncertainty
in
economic
recession
during
the
onset
of
covid
and
the
district
maintains
its
Financial
stability.
I.
Think
that's
noteworthy.
B
B
G
B
Up
my
acronyms
they've
established
and
defined
how
we
can
allocate
resources
and
fund
balance,
so
there's
a
non-spendable
portion
of
fund
balance,
which
is
which
are
assets
that
that
can't
be
spent.
So
this
is
prepaid
items
inventory
Etc.
We
cannot
spend
that
money.
Currently
we
have
7.1
million
7.2
million
in
fund
balance.
There
restricted
is
amount.
Our
remounts
as
reserved
due
to
legislation.
Regulation,
Etc
restricted,
is
also
meaning.
We
cannot
spend
that
Reserve
in
that
particular
portion
of
the
fund.
Then
there's.
B
So
these
are
amounts
that
are
specifically
designated
and
it
requires
a
formal
action
of
the
board.
I'll
give
you
an
example.
A
few
months
ago,
I
bought
I
brought
forward
the
Esther
sustainability
for
10
million
dollar
allocation
to
go
and
to
fund
balance,
so
that
10
million
would
be
a
part
of
that
72.8
million
that
you
see
there,
but
it's
required
by
an
actual
official
board
action
to
puts
to
commit
a
portion
of
fund
balance
assigned.
This
is
the
plan
used
to
fund
balance
for
budgeting,
so
you'll
learn
about
this
in
our
budgeting
process.
B
A
B
Again
legally,
we
have
to
provide
a
balanced
budget,
revenues
have
to
tie
to
expenditures,
and
so
that's
why
assigned
is
critical
for
us
and
then
there
is
unassigned
fund
balance,
and
these
are
amounts
that
are
not
contained
in
any
of
the
other
categories.
There's
a
little
more
discretion
in
this
particular
area,
but
unassigned
does
not
mean
not
designated
we're
not
just
with
unassigned
means
that
it's
it's
just
not
committed
restricted
or
non-spendable
reasons
to
maintain
a
healthy
fund
balance,
provides
cash
flow
and
support
for
cyclical
tax
collections.
C
Shouted
by
me
so
on
that
committed
the
72-point
eight
million
dollars.
Is
that
really
is
the
district's
safety
net,
so
it
was
put
in
there.
Necessarily,
there
are
formulas
that
say
how
much
that
should
be
left
and
so
that
number
changes
each
year
based
on
that
formula,
that's
associated
with
what
Ms
Williams
is,
is
the
gasby
Federal
requirements,
as
well
as
the
state
of
South
Carolina
requirements,
and
so
that
is
the
district's
emergency
fund.
C
If
something
some
real
disaster
were
to
occur,
then
you
all
the
board,
then
would
have
a
pool
of
dollars
to
act
upon
for
that
emergency.
B
A
B
E
Thank
you.
So
the
next
three
slides
actually
came
from
a
board
presentation
on
November
14th
by
Green
fenney
cauli,
which
is
our
external
audit
firm,
and
it
was
what
she
was
doing
was
presenting
the
preliminary
FY
FY
22
Financial
audit.
E
The
final
audit
had
no
changes,
so
that's
why
I
went
ahead
and
just
pulled
this
from
it.
So
our
audited
revenues
for
FY
22
were
588.5
million
dollars.
Majority
of
that
was
from
property
taxes
as
well
as
state
revenues
from
FY
21
to
22.
We
saw
a
32.5
million
dollar
increase
in
revenues,
and
that
was
mostly
attributable
to
property.
Tax
increases.
F
On
the
audit,
what
exactly
is
the
purpose
of
this
audit?
Is
it
just
to
show
that
everything
is
balancing
out
that
something's
gone
missing,
or
is
it
actually
looking
for
anything?
In
particular,.
B
So
it's
it's
a
full
Financial
audit
and
when
I
say
full,
it
means
that
it's
it's
a
sample,
but
it's
a
full
Financial
audit.
So
it's
not
an
audit.
It's
not
like
a
policy
and
procedure
audit.
It's
looking
at
our
revenues,
our
expenditures,
our
accounting,
our
books,
our
trial
balances,
making
sure
we're
recording
things
and
classifying
things
properly.
B
According
to
gaap,
generally,
accounting
generally
accepted
accounting
principles,
as
well
as
making
sure
that
we're
guys
be
compliant
like
the
fund
balance
policy.
So
it
looks
it
takes
a.
They
take
a
deep
dive
into
the
financial
condition
of
the
organization
and
it's
required
legally.
H
Period
of
time
we
were
doing
this
in
fiscal
year,
16
doing
a
outside
audit
each
year
correct
and
that's
how
we
got
under
the
financial
watch
and
16.
C
So
there
were
a
number
of
things
that
taken
place,
then,
first
of
all,
I
wasn't
here
in
15
or
16.
right,
so
I'm
not
able
to
really
articulate
what
what
occurred.
C
What
I
well
I
can
say
that
when
I
did
come
on
board,
I
took
a
look
at
all
the
procedures
that
we
had
in
place
specifically
around
how
we,
how
we
pay
attention
to
monitoring
and
Reporting
through
the
art
and
finance
committee
each
month,
the
status
of
revenues
and
and
expenditures,
and
then,
at
this
time
each
year,
I
started
projecting
out
where
we
think
we're
going
to
end
the
year
when
the
books
closed
and
so
based
on
that
strategy.
C
We're
able
to
manage
the
flow
of
of
Revenue
and
expenditures
against
expenditures
at
the
last
six
months
of
the
year
and
that
that
that
that
resulted
in
the
increase
in
the
in
the
fund.
Balance
that
you
see.
But
there
were
you
know
there
were
there-
were
things
that
were
going
on
in
2015.
I
think
that
that
resulted
in
the
in
the
in
the
decrease
in
our
fund.
Our
financial
condition.
A
C
I'm
not
so
I'm,
not
attributing
this
to
any
to
one
person,
any
one
person,
it's
just
the
financial
management,
it
and
I,
don't
know
if
they
said
you
know
you
were
here
during
that
time
period.
D
I
was,
and
Dr
postalway
came
on
during
the
summer
of
2015,
so
or
2016.
she
that
was.
She
was
after
that
she
was
here
when
the
Fallout
happened,
but
she
wasn't
here
when
leading
up
to
it.
The
majority
of
it
was
like
Don
said
we
had
some
issues
with
financial
reporting
and
some
mistakes
that
were
made
on
some
of
the
reporting
documents
that
were
presented,
and
there
was
also
budgets
that
weren't
adhered
to
at
the
time
that
caused
us
to
go
over
budget.
D
D
It
was
just
a
matter
of
our
financial
practices.
At
the
time
were.
H
H
And
it's
looking
like,
we
I
guess
I'm
about
to
get
into
this.
Also
there
were,
our
revenue
is
going
to
be
less
than
the
expenditures
for
23..
So.
H
Right
I'm,
looking
at
the
the
line
graph
that
we
have
for
the
Maggie.
H
To
that
slide,
please
right
for
fiscal
year,
23
it's
looking
like
60
653.1
and
then
four
expenditures
and
then
for
the
revenue
645
Point
here,
I.
B
Think
it's
the
the
other
line
graph
Maggie
the
slide
24.
Yes,.
B
So
so,
where
we're
projecting
to
end
23
is
that
revenues
are
coming
in
higher
than
we
budgeted
and
expenses
are
coming
in
right
around
where
we
budgeted,
but
we're
actually
anticipating
to
use
less
fund
balance.
So
that
means
that
we're
actually
coming
in
better
than
we
anticipated
for
20
30.
C
So
those
numbers
would
not
be
reflected
on
this
slide.
Those
numbers
would
be
reflected
on
the
monthly
financial
report
that
that
will
be
presented
during
the
board
meeting
this
this
afternoon.
These
are
these
are
budgeted
numbers
not
actuals,.
G
E
E
So
to
finish
up,
we
actually
exceeded
the
budget
on
revenues
for
FY
22
by
about
11.9
million
dollars,
and
this
was
due
to
property.
Tax
increases
as
well
as
state
increases
next
slide.
Please
so
audited
expenditures.
E
B
A
B
Sorry,
one
back
Maggie,
okay,
so
so
this
was
the
portion
of
the
presentation
that
was
pulled
out
from
the
FY
22
Financial
audit,
and
it
just
reiterates
the
strength
in
our
fund
balance
in
our
financial
position.
So,
overall,
as
a
result
of
activity,
Financial
activity
from
FY
22,
we
increased
the
fund
balance
by
13.7
million.
That
was
that
took
it
to
the
159
million
that
you
saw
our
non-spendable
fund
balance
7.2
million
again,
that
was
for
inventory
and
prepaids
committed
fund
balance,
72.8
million
for
operating
reserves
and
a
sign
fund
balance.
B
A
What
do
you
mean
by
Easter
stabilization
and
sustainability.
B
Is
the
districts
have
received
a
significant
portion
of
money,
they've
attached
people
programs
to
this
money,
and
so
everyone
is
concerned
in
talking
about
the
district
in
various
districts
on
well,
what
do
we
do
when
the
money
sun
sets
when
it
goes
away,
and
so
what
we
took
to
the
board
last
year
was
to
be
proactive
for
programs
and
and
projects
that
we
deem
as.
B
B
So
it's
to
to
hedge
that
funding
Cliff
once
we
decide
whatever
the
sustainable
activities
are
programs
that
are
Tethered
to
Esser.
B
Thank
you,
Dr
Temple,
so,
just
reiterating
again
that
we
have
three
more
engagement
sessions
with
the
board
in
April.
We'll
have
an
additional
follow-up
with
the
board
for
Budget
update
in
May,
we'll
take
the
first
reading
or
the
preliminary
budget
bring
that
forward
to
the
board,
with
our
projected
revenues,
expenditures
and
all
of
our
initiatives
and
then
by
June.
You
will
have
the
final
budget
in
front
of
you
for
voting
and
adoption.
Yes,.
H
Sir
Mr
Calhoun
yeah
I'm
sorry
I
was
trying
to
think
of
how
to
access
what
the
SR
stabilization
and
sustainability
we're.
C
H
That,
with
all
pilot
projects,
correct
all
piloted
projects
going
on
through
the
districts
and
said
we
got
grant
funding
like
the
Federal
grant
funding
for
v9.
H
B
So
it's
it's
not
for
all
grants,
so
so
it
depends
on
the
grant.
So
there
are
some
grants
that
are
single
year,
grants
nurse
grants
and
there's
some
that
are
multi-year
and
it
depends
on
the
purpose
and
the
timeline
of
the
grant.
So
I'd
have
to
know
specifically
which
Grant
you're.
H
Talking
about
too
I'm
just
thinking
about
for
any
grant
that
we
get
if
we
bring
it
in.
If
we
see
something,
that's
working
with
that
Grant
with
any
grant
that
we
bring
in
how
do
we
expanded
throughout
the
district,
but
then
also
try
to
make
it
sustainable
that
we
will
always
know
what
we
can
pay
for
great.
B
A
B
If
you
take
a
look
at
things
like
Head
Start
or
early
childhood,
we
submit
an
application
every
year
requesting
that
money,
so
that
money's
been
in
the
district
for
several
years.
That
holds
true
for
other
grants
as
well:
Title
II,
for
instance,
a
lot
of
professional
development
for
teachers
is
one
is
funded
by
title
two
and
that's
a
recurring
grant
that
the
district
receives.
So
it
just
depends
on
the
Grant
and
the
stipulations
attached
to
it.
H
Like
I'm
thinking
about
on
another
one,
I'm,
specifically
thinking
about,
would
be
with
the
celebration
schools
and
the
bonuses
that
we
put
out
that
are,
can
come
in
with
the
teachers
If.
They
raise
the
test
scores.
B
That's
a
great
question
so
so
those
are
some
of
the
actual
conversations
and
questions
that
the
administration
and
the
board
engages
in
when
we're
talking
about
building
the
budget
right.
I,
don't
have
an
answer
for
that
today.
For
that
specific
example
right,
but
typically
the
district
looks
at
critical
work
and
the
continuity
of
that
critical
work.
So
in
previous
years
there.
B
Those
items
in
in
future
years,
so
those
conversations
happen.
So
so
yes.
B
You
so
now
we'll
have
the
portion
of
our
presentation.
That's
related
to
our
debt
and.
B
C
I
In
case
we
need
to
share
I'm
I'm
Carol
Clark
with
Haynes
receiver,
Boyd
Law
Firm
here
in
Charleston,
and
I've
been
working
with
the
district
for
close
to
20
years
now,
and
this
is
Jake
Glover
with
on
public
financial
management
out
of
Orlando
and
they've,
been
financial
advisor
to
the
district
for
about
the
same
length
of
time
and
while
Ms
Williams
and
her
team
were
really
focusing
on
operations
and
on
the
operating
fund,
we're
really
looking
more
at
the
the
debt
side
of
things,
the
debt
financing
for
long-term
capital
projects
and
also
the
debt
millage
side
of
the
equation.
I
There
are
several
different
types
of
Finance
financings
we
go
through
every
year
and
great
we've
got
the
slides
on
now,
and
one
of
these
is
actually
on
the
agenda
for
today's
meeting,
which
is
the
approval
of
the
bond
anticipation,
notes
and
all
of
these
financings
are
sort
of
woven
together
and
to
understand
one.
You
really
need
the
big
picture
of
stepping
back
and
looking
at
all
of
them
and
how
they
sort
of
relate
to
each
other.
I
I
At
the
end
of
the
day,
that's
all
paid
out
of
the
sales
tax
collections,
then
moving
on
down,
we've
got
long-term
debt,
which
consists
of
General
obligation
bonds,
which
is
the
way
that
the
district
really
funded
all
of
their
Capital
needs
up
until
2004,
when
there
was
a
transition
made
to
installment
purchase
revenue
bonds,
which
are
referred
to
as
iprbs
or
alternative
financing
that
funded
the
2004
through
2009
Capital
programs
through
three
series
of
bond
issues,
and
then
lastly,
is
the
sales
tax
program
which
the
district
has
just
started
on
their
third
sales
tax
program.
I
The
initial
one
was
approved
in
2010
and
I
ran
for
six
years.
Then
we
had
a
new
list
of
projects.
That
program
was
approved
in
2014
and
then
most
recently
the
current
program
was
approved
in
2020
and
that
one
cent
started
collections
on
January
1st
of
this
year
and
while
that
is
all
managed
through
debt,
it's
just
on
a
short-term
basis
and
the
the
whole
shift
of
this.
The
or
the
intention
is
to
shift
from
debt
that
is
paid
back
by
property
tax
payers.
I
With
short-term
debt,
as
we
were
mentioning
tax
anticipation
note-
and
we
will
talk
about
this
more
in
depth-
in
probably
August
or
September,
but
when
you
get
your
property
tax
bill
that
usually
comes
in
around
October
and
taxes
are
due
without
a
penalty
by
January
15th,
and
so
most
people
pay
their
taxes
in
December
and
January.
So
the
bulk
of
that
money
for
operations
comes
in
and
practically
a
six-week
period
And.
I
So
by
the
time
we
get
into
the
late
summer
or
early
fall,
the
bank
account
can
be
getting
a
little
bit
low
on
the
operating
side,
and
so
this
is
just
really
borrowing
in
advance
of
the
the
general
fund
tax
collections.
I
So
we
typically
issue
those
notes
around
September
or
October,
and
they
are
required
by
state
law
to
be
paid
back
within
90
days
of
the
due
date
for
tax
collections.
So
every
year
we
have
an
April
1st
maturity
date,
so
that's
just
kind
of
basically
getting
an
advance
on
our
operating
fund,
operating
funds
coming
from
property
taxes
and
then
the
second
type
of
short-term
financing
are
the
bond
anticipation,
notes
and
we
will
see
when
we
look
at.
I
What's
being
approved
today,
but
there
is,
there
is
a
series,
a
issue
every
year
which
pays
the
fixed
cost
of
ownership,
which
is
basically
capital
projects
that
are
undertaken,
a
lot
of
them
over
the
summer
holidays
for
re-roofing
schools
or
painting,
or
just
typical
kind
of
Maintenance
projects.
There's
also
technology
upgrades
as
I
said
kind
of
typical
Capital
maintenance,
and
then
the
other
part
of
that
is
to
make
payments
on
the
installment
purchase
revenue
bonds,
which
we'll
get
into
in
a
little
bit
more
detail.
I
And
then
we
always
have
a
second
series
of
bond
anticipation,
notes,
which
is
cash
flow
funding
for
the
construction
projects
being
funded
by
the
sales
tax
program
and,
as
we
said,
the
the
current
sales
tax
program
started
collections,
January
1
of
this
year,
and
so
that
will
be
sort
of
a
bell
curve
over
the
course
of
the
next
six
years,
and
so
the
construction
gets
wrapped
up
before
there
enough
dollars
in
really
to
just
use
pay-as-you-go
funding.
For
that,
and
so
with
this
Bond
anticipation
note
for
sales
tax.
I
That
is
just
to
it's
like
a
construction
loan,
but
it
will
be
paid
back.
We
will
roll
those
notes
every
year
for
the
six
year
period
and
then
at
the
expiration
of
the
current
sales
tax
period.
Those
will
be
retired
from
sales
tax
collections
and
Jay
May
touch
on
this
a
little
bit
more,
but
typically
in
the
first
kind
of
three
years
of
the
sales
tax
program
that
first
year
you,
you
borrow
a
little
bit
that's
for
advanced
design,
then
the
next
year.
B
Next
slide:
okay,
just
one
second
I,
think
the
slide's
coming
back
up.
Thank
you.
I
Okay,
and
without
going
too
much
into
the
history
of
things,
but
up
until
really
the
mid
2000s
General
obligation,
Bonds
were
really
school.
Districts
only
means
from
that
financing,
long,
financing,
capital
projects,
and
they
were
usually
done
over
20
25
year
period-
that
there
are
two
types
of
debt
that
are
authorized.
I
I
I
There
is
a
501c3,
a
non-part
non-profit
corporation,
which
in
Charleston's
case
is
called
the
Charleston
education,
educational,
Excellence,
Finance,
incorporation
or
sief
you'll
hear
references
from
time
to
time
about
the
thief,
but
the
non-profit
issues,
the
bonds
uses
the
money
to
Bill
schools
and
the
school
district
makes
semi-annual
payments
deceive
in
amounts
that
are
sufficient
to
make
the
principal
and
interest
payments
on
the
bonds,
and
in
that
way
the
district
is
basically
buying
portions
of
those
schools
back
from
C
on
of
semi-annual
basis
and
so
with
with
the
the
outstanding
iprbs.
I
So
the
district
needs
to
have
a
means
of
way
of
raising
money
prior
to
June,
1
and
December
1,
to
make
the
payments
on
those
bonds
which
are
in
effect
paying
for
the
construction
renovation
of
of
a
number
of
schools
that
were
financed
in
2004
five
and
six,
including
abused
and
just
there's
a
long
list,
academic
magnet
time.
The
list
goes
on
and
on
throughout
the
district.
I
So,
as
I
said,
that
is
one
of
the
things
that
we
are
here
to
talk
about
is
the
financings
for
for
making
those
payments
on
the
thief
bonds
and,
as
I
said,
we
we
did
those
financings
in
2004,
five
and
six
and
then
in
2006.
The
state
legislature
said
no.
We
don't
think
you
should
be
able
to
use
this
type
of
financing
anymore.
I
So
from
2006
oil
from
2007
onwards,
iprbs
were
not
available
for
financing
school
facilities,
but
we
have
had
a
couple
of
refundings
a
couple
of
refund
a
refinancings
were
done
in
2013
and
2014
just
to
lower
the
interest
rates,
and
that's
another
thing
that
we
may
be
talking
about
sometime
later
on
this
year.
Is
there
may
be
the
possibility
later
on
in
the
year
of
again,
saving
money
by
lowering
the
rates
on
those
funds.
I
Then,
with
the
neck,
the
next
slide,
this
just
kind
of
puts
together
a
timeline
for
the
types
of
financings
that
we
have
been
talking
about,
we'll
we'll
skip
long-term
debt
at
the
top
and
talk
about
the
short-term
debt.
That's
listed
here,
April
and
May.
We're
actually
coming
to
you
now
for
the
approval
of
the
spring
Bond
anticipation,
note,
which
will
be
issued
in
early
May,
and
that
is
to
find
all
these
different
type
projects.
We've
been
talking
about,
plus
the
sales
tax.
I
The
spring
ban,
the
series
a
band
will
be
retired
in
November,
from
a
very
short-term
General
obligation
bond,
which
will
be
retired
on
March
1
of
next
year,
through
millage
issued
in
the
2023-24
budget.
The
sales
tax
ban
will
have
a
one-year
maturity,
and
so
in
May
of
next
year,
we'll
be
coming
back
to
refund
that
possibly
add
new
money
and
that
process
will
continue
through
2028.
I
Note
we
mentioned
will
be
done
in
late
spring,
I
mean
late
summer,
just
whenever
the
need
arises,
and
then
the
October
or
November
annual
General
obligation
bonds
will
be
to
retire
the
series
a
ban
and
make
the
December
1
payment
on
the
installment
purchase
bonds
and
then,
finally,
while
we
said
that
the
district
has
not
really
issued
any
long-term
debt
in
the
past
several
years,
there
is
the
option
there
under
the
eight
percent
debt
limit
and
that's
something
that
various
members
of
the
finance
team
as
well
as
bfm,
will
be
talking
about,
because
there
may
be
some
schools
later
on
this
year,
which
I
believe
were
were
approved
as
part
of
the
current
sales
tax
program.
I
J
Carol
and
again
Jay
Glover
from
pfm
financial
advisors.
We
are
the
districts
financial
advisor
on
debt
related
matters
and,
while
Carol
gave
kind
of
an
overview
of
the
words
associated
with
these
financings
I'm
going
to
try
to
dig
into
the
numbers
just
a
little
bit,
but
also
keep
it
as
high
level
as
possible.
We
do
maintain
a
fairly
detailed
Excel
model
that
shows
cash
flows
over
the
entire
term
of
your
debt
portfolio,
which
is
through
fiscal
year
2032,
not
only
on
the
general
obligation
side,
but
also
on
the
sales
tax
side.
J
It
looks
like
cash
flows
are
associated
with
the
projects,
sales
tax
collections
to
make
sure
that
the
ultimate
plan
will
be
followed
through,
on
which
I
think
we've
all
talked
about,
which
is
the
district
being
debt
free
by
2032,
which
is
still
the
plan
and
still
on
target
absent
any
future
decisions
that
might
be
made
to
add
that
service
in
the
future
on
slide.
Six
here
this
is
just
pictorially
what
your
current
outstanding
debt
looks
like
that
Carol
just
described,
and
it's
broken
down
into
the
categories
just
like
she
mentioned
on
the
top.
J
Is
your
long-term
go
bonds?
There
and
you
can
see
it's
about
50
million
dollars
outstanding
as
of
March
1
2023,
and
we
also
have
a
category
that
shows
how
much
of
that
is
approved
within
your
eight
percent
debt
limit,
because
we
always
want
to
make
sure
they're
sufficient
capacity
moving
forward
to
issue
eight
percent
debt
for
the
reasons
Carol
mentioned
Richard
to
provide
cash
flow
on
your
sales
tax
program,
but
also
make
sure
there's
capacity
to
pay
your
installment
payments
each
twice
a
year.
J
So
again,
25
million
of
that
long-term
debt
is
eight
percent
debt.
The
next
category
is
your
short-term
bonds
and
again,
while
this
is
a
significant
amount
of
debt,
it's
very
short-term
in
nature
for
cash
flow
and
again,
I
won't
go
into
the
reasons
why
as
Carol
just
described
but
247,
almost
250
million
dollars
worth
of
your
debt
is
short-term
debt
and
associated
with
your
eight
percent
debt
limit.
Having
said
that,
the
2
2022
b
band,
which
is
there
about
74
million
dollars,
that's
the
remaining
piece
of
your
phase,
four
sales
tax
program.
J
So
your
last
collections
just
came
in
in
December
for
that
program
and
we'll
actually
pay
all
of
the
debt
off
in
March
of
2023.
Excuse
me,
may
of
2023,
so
you'll
be
completely
debt
free
on
your
phase,
four
sales
tax
program
and
the
same
thing
with
the
2022
C
band.
That's
for
your
phase
five
program,
Yeah
question.
F
I
I
am
learning
about
this.
Obviously
so,
but
I
know
like
in
my
personal
life
like
with
mortgages,
and
things
like
that,
if
you're
able
to
apply
a
little
extra
to
your
payment,
then
eventually
you
you
save
money,
because
you
gain
momentum
faster
on
paying
off
debt.
So
two
questions
is
that
a
possibility
with
any
of
this
and
then
also
if
we
become
debt
free,
is
that
money
that
we
can
then
apply
to
say
raising
salaries
for
teachers
well,.
J
Let
me
attack
that
in
two
two
different
questions
and
Mr
Kennedy
might
want
to
weigh
in
on
the
second
piece
there,
but
yes,
most
of
this
debt
yeah,
that's
the
short
answer.
We
can
go
into
that.
J
Most
of
this
debt
does
have
potential
call
flexibility,
so
there
is
the
ability
to
pay
it
down
early
at
points
in
time.
If
there's
additional
cash
to
do
that
or
if
interest
rates
are
lower,
you
could
just
refinance
debt
for
Debt
Service
savings.
So
that
is
the
flexibility
you
know
just
like
your
mortgage.
J
You
can
pay
it
down
early
potentially,
but
you
obviously
have
to
have
the
cash
flow
to
do
that
and
within
our
current
model
we
target
28
Mills
for
Debt
Service,
which
really
covers
what
you
need
to
make
existing
payments
so
to
go
above
and
beyond
that
you'd
likely
have
to
raise
an
additional
millage.
As
for
the
second
question,
we're
really
talking
about
Debt,
Service
millage.
So
to
the
extent
that
goes
to
zero
I
mean
you
could,
potentially,
you
know,
raise
an
operating
millage
for
salaries,
but
that's
really
unrelated
to
The
Debt
Service
millage.
J
That
would
give
you
a
lot
of
flexibility
in
your
Capital
program
moving
forward
and
allow
you
to
reduce
the
millage
levy
on
the
citizens
and,
if
you
keep
in
mind
with
a
Debt
Service
millage,
that's
not
only
residential
but
that's
also
your
commercial
property.
So
that
would
be
the
benefit
of
that
really
lots
of
flexibility
with
a
capital
program
and
potentially
a
lower
or
no
Debt,
Service
millage,
but
Mr
Kennedy
I
know
that's
probably
a
lot
to
handle
there.
I
don't
know
if
you
had
anything
really
on
I.
J
J
The
20
and
just
going
through
the
2022
C
band,
so
that
was
actually
81
million
dollars.
That
was
your
initial
upfront
money
for
your
phase,
five
sales
tax
program.
So,
as
was
mentioned,
your
collections
didn't
start
until
January
of
2023,
but
there's
a
lot
of
advanced
design
and
planning
that
comes
about.
So
these
projects
can
be
put
into
the
ground.
So
last
year
we
actually
raised
81
million
dollars,
so
we
could
start
paying
for
some
of
that
advanced
design
so
that
we
can
get
those
projects
started
very
quickly.
So
again,
that's
81
million
dollars.
J
We
will
be
rolling
that
as
part
of
the
2023
b
band
and
adding
about
40
million
additional
to
that
so
you'll
have
about
a
hundred
and
twenty
million
dollars
of
cash
flow
ban
associated
with
your
phase
five
program.
It
was
mentioned
that
will
ramp
up
over
time
and
then
probably
level
out
and
we'll
start
paying
that
ban
down
as
we
approach
the
sunset
of
the
phase
five
program,
just
like
we're
doing
in
May
of
this
year
with
the
phase
four
program
and
then
the
2022
A
and
B.
J
So
we're
right
on
target
using
very
conservative
assumptions
to
pay
this
off
and
meet
that
program.
I
know
that
was
a
question
that
came
up
before,
but
we're
very
conservative
on
our
our
estimates
in
terms
of
assessed
value,
growth,
I
think
we'll
use
between
one
and
a
half
and
two
percent
annually,
and
we
do
not
assume
a
assessment
which
happens
every
five
years.
So
we
think
we're
very
conservative
on
that.
Also
with
the
sales
tax
program,
the
Baseline
that
we
are
using
for
your
sales
tax
collections.
J
Again,
as
we
move
through
the
program,
we
reassess
the
collections,
the
timing
of
projects
and
are
adding
projects
as
we
can,
but
we
don't
want
to
do
that
too
quickly,
because
we're
really
only
in
the
second
month
of
Collections
and
while
things
have
been
great,
the
last
several
years,
we're
always
cautious
of
a
recession
or
you
know
if
inflation
becomes
much
more
in
check
and
the
cost
of
items
goes
down.
That
also
negatively
impacts
your
sales
tax
collection.
J
So
if
there's
one
of
a
few
takeaways
from
this,
is
that
we're
very
conservative
in
our
assumptions,
because
we
don't
want
to
put
you
in
a
situation
where
you
don't
have
sufficient
capacity
to
pay
your
debt
off
and
I'm
gonna
move
here
pretty
quickly
again
page
seven,
if
we
can
flip
one
more
slide,
this
is
a
calculation
of
your
eight
percent
debt.
So
it
takes
your
assessed.
J
Valuations
takes
eight
percent
of
that
and
the
good
thing
for
Charleston
County
School
District
is
you:
have
413
million
dollars
worth
of
eight
percent
capacity,
which
generally
grows
as
your
assessed?
Values
grow
again
you're
in
a
very
fortunate
position.
In
this
terms,
there's
many
districts
that
are
nice
quite
nice
size
that
might
only
have
40
or
50
million
of
eight
percent
capacity,
and
you
can
imagine
what
40
or
50
million
dollars
of
the
debt
dues
in
terms
of
building
schools.
J
It
doesn't
get
you
very
far,
so
you
are
in
a
very
good
position
and
we
stay
well
within
that
limit
within
all
of
our
projections
and
our
model
flipping
to
the
next
slide
and
again
I'm
trying
not
to
get
too
much
in
the
weeds.
But
this
is
the
really
the
output
that
we,
you
know,
look
at
moving
forward.
J
So
even
if
that
is
approved,
do
we
move
forward
with
that
there's
still
sufficient
capacity
within
your
eight
percent
debt
limit
to
handle
all
of
this
and
then
skipping
to
page
nine
I
think
this
goes
without
saying,
or
we've
actually
said
it
a
bunch
already.
This
eight
percent
capacity
changes
over
time,
hopefully
assessed
values
continue
to
grow,
which
improves
that
eight
percent
capacity
also
improves
the
amount
of
money
that
you
can
generate
by
that
28
mils
of
Debt
Service
Levy
in
it
also
improves,
as
debt
is
retired.
J
But
then,
if
we
issue
new
debt,
it
goes
down.
So
it's
a
real
balancing
act
that
we
model
out
over
again
the
full
term
of
your
program
to
make
sure
we
stay
well
within
the
limits-
and
we've
mentioned
this
before
as
well.
We
target
28
million
dollars,
I
mean
excuse
me,
28
meals
for
Debt
Service.
We
issue
about
55
million
dollars
a
year
for
fixed
cost
of
ownership,
I
think
so.
I
think
the
slides
went
up
one
back
one
more
you're,
fine
and
that
grows
each
year
as
the
needs
grow
grow.
J
So
going
to
the
last
slide
and
again,
I
think
this
is
another
one
of
the
takeaways
and
we'll
kind
of
come
full
circle
from
Miss
Williams
presentation.
You
know
it
seems
like
there's
a
lot
of
debt
outstanding
and
I'm.
Not
there
is
a
lot
of
debt,
it's
big
numbers,
you're,
a
very
large
school
district,
but
the
District
staff
and
the
board
has
been
very
proactive
in
how
they
manage
this
debt
and
it's
really
resulted
in
very
strong
credit
rating.
J
So
if
you
look
here,
we
pay
off
about
45
million
dollars
of
debt
per
year
and
all
the
debt
will
be
paid
off
by
fiscal
year
2032..
We
continue
to
reiterate
that,
because
that's
something
we've
talked
about
for
years
and
years
and
are
on
plan
to
do
that.
We
also
have
been
in
a
declining
interest
rate
cycle
up
until
about
a
year
ago.
So
we've
been
very
proactive
in
taking
advantage
of
market
conditions
to
do
refinancings
you
talk
about
your
mortgage.
Just
like
you
would
refinance
your
mortgages
rates,
go
down.
J
We've
done
that
with
the
district's
debt
and
saved
to
the
tune
of
about
90
million
dollars
on
a
Net
Present
Value
basis.
Since
2010.
those
opportunities
might
be
less
frequent
moving
forward
because
we're
on
a
rising
interest
rate
environment
now
and
we've
actually
lowered
the
debt
rate
on
each
of
our
outstanding
obligations.
Significantly,
there's
one
main
opportunity:
we
are
monitoring
associated
with
your
installment
purchase
revenue,
bonds
that
with
a
little
bit
of
help
from
interest
rates
over
the
next
year,
or
so
we
might
be
able
to
save
some
money
on
that.
J
But
that
would
come
back
to
you
for
further
consideration
the
appropriate
time
and
I'll
conclude
just
by
saying
anytime,
you
issue
debt,
you
go
out
and
get
what's
called
a
credit
rating.
So
that's
a
third
party
entity
that
comes
in
and
looks
at
the
financial
position
of
the
district,
your
debt
metrics
and
they
put
a
credit
rating
on
the
district
and
right
now,
you're
rated
double
A
2
and
double
A
Plus
by
Moody's
and
s
p.
J
Triple
A
is
the
highest
credit
rating
you
can
get,
which
is
one
notch
below
that
double
A
Plus
rating
that
you
have
and
I
am
not
aware
of
any
school
district,
at
least
in
the
state
of
South
Carolina
and
potentially
in
the
nation.
I'm
sure
there
might
be
one
in
the
nation.
I
probably
shouldn't
say
it
on
the
record,
but
not
in
South
Carolina
I'm,
aware
of
that
has
a
AAA
rating
there's
just
issues
with
school
district
for
the
rating
agencies
very
rarely
get
to
AAA
rating.
J
The
wrong
direction,
I
think
they
got
as
low
as
potentially
a
at
least
in
the
a
category
mainly
related
to
that
fund
balance,
and
since
then,
that
steady
progression
and
fund
balance
up
to
the
159
million
dollar
level
last
year
is
really
one
of
the
main
reasons
why
these
credit
ratings
are
so
strong.
So
I
would
encourage.
You
continue
to
be
diligent
about
fund
balance
and
make
sure
that
sort
of
at
the
top
of
your
mind
when
you're
making
financial
decisions,
which
I
know
it
will
be.
J
But
again,
if
there's
just
a
couple
of
takeaways
I
know
it
sounds
like
a
lot
of
debt,
but
it
is
very
conservatively
managed.
Your
staff
is
very
proactive
about
how
they
go
about
doing
it.
We
as
Financial
professionals,
support
them
in
doing
so,
and
I
think
we'll
be
in
good
position
to
execute
on
that
plan.
J
To
have
you
all
out
of
debt
by
2032,
you
know
absent
any
decisions
you
might
make
in
the
future
to
add
additional
debt,
but
with
that
I
know
it
was
a
lot
and
a
little
bit
in
the
weeds,
but
I
hope
that
at
least
gives
you
a
sense
of
things
that
might
come
before
you
in
terms
of
debt
and
reassure
you
that
it
is
managed
in
a
proactive
and
efficient
manner.
Just.
F
To
just
to
go
back
to
what
you
were
saying
about,
the
rating
is
just
saying
that
we
are
over
a
double
A
on
our
way
to
three
Triple
A.
Well,.
J
So
you're
one
notch
below
a
triple
A
rating,
with
just
the
highest
credit
rating
you
can
have,
and
actually
s
p
doesn't
rate
the
federal
government,
AAA
so
I
think
like
Charleston
County
is
a
triple
A
and
it's
not
uncommon
for
a
city
or
county
to
get
to
that
triple
A
level,
which
is
the
highest
level.
I
would
suggest
to
you
that
staying
at
that
double
A
Plus
level
is
a
great
achievement
and
absent
any
Financial
deterioration.
You
would
stay
there.
It's
very
unlikely.
J
The
school
district
is
going
to
get
to
that
AAA
rating,
and
the
reason
is
because
you
would
have
to
build
your
fund
balance
up
to
a
level-
that's
probably
not
seen
very
well
by
the
state
per
se.
They
would
want
you
to
spend
that
money.
So
you
get
to
some
point
where
you
know
your
fund
balance
needs
to
get
so
high
to
get
to
AAA
that
you
really
don't
want
to
get
there
because
there's
trade-offs
in
terms
of
your
operations
and
other
things
to
do
that.
B
Thank
you
like
that.
Thank
you,
Jay
one.
One
thing
I
wanted
to
add
to
Jay's
great
presentation
is
one
thing
I
wanted
to
highlight
that
he
said
is
that
we
do
this
work
in
partnership
with
pfm,
so
the
finance
team
is
very
diligent
about
meeting
discussing
what
our
debt
is.
B
The
financial
Outlook
I
know
I,
specifically
and
and
CFOs
before
me
have
asked
for
different
scenarios
to
model
out
things
before
we
bring
them
to
the
board
and
they're
very
good
at
doing
that.
So
so
we
take
all
things
into
consideration
before
we
bring
something
as
significant
as
debt
before
the
board
for
voting.
J
And
and
Miss
Williams,
if
I
might
add,
I
know
there
was
a
lot
of
questions.
You
know
we
prepare
a
presentation
periodically.
That
goes
to
your
sales
tax
oversight
committee,
that
looks
at
stress
tests
and
we
look
at
what
the
Baseline
revenue
is.
We
look
at
like
what
happens
if
there's
a
15
decline,
recession
scenario,
and
then
you
grow
up
two
percent
after
that,
and
really
under
almost
every
scenario,
you're
well
within
the
baselines
in
the
model,
and
we
hope
that
over
time
the
collections
are
much
stronger
than
we're
estimating.
J
But
we
intentionally
are
very
conservative
in
that
and
that
served
you
well
you've
hit
coven.
You
know
we,
it
was
a
temporary
blip,
thankfully,
but
you
all
rebounded
relatively
well,
and
we
hope
that
any
future
kind
of
issues
we'll
be
able
to
withstand
as
well.
B
So
Carol
is
going
to
review
one
final
component
of
debt.
Just
so
you
guys
are
Ultra
clear
on
what
we're
presenting
to
you
for
a
vote.
Maggie.
Can
you
can
you
pull
that
up?
Please.
I
Yes,
that's
it
as
I
mentioned,
when
we
got
started
that
we
do
have
one
item
on
the
agenda
today.
That
makes
this
presentation
timely,
because
we
are
talking
about
the
bond
anticipation,
notes,
which
we
will
go
out
in
the
market
to
sell
in
April
and
then
close
on
those
in
May
and
One
One
requirement
of
that
or
anytime.
We
issue
debt.
I
The
board
has
to
approve
a
resolution
authorizing
the
issuance
of
the
debt,
and
so
we've
got
the
sort
of
40
page
document
here
that
has
all
of
the
details
and
then
what
Maggie
has
up
on
the
screen
is
the
sort
of
the
two
two-page
Cliff
Notes
Edition,
and
so
we
can
just
kind
of
walk
through
that
quickly.
Just
to
spell
out
the
specifics
of
what's
being
approved,
we've
got
three
series
that
we
are
looking
to
have
approved
in
this
resolution,
and
this
all
relates
back
to
what
we
were
talking
about.
I
With
the
bond
anticipation
notes,
we've
got
series
a
which
is
being
authorized
and
the
amount
not
to
exceed
70
million
dollars
and
that
that
will
fund
three
different
parts
of
the
overall
program.
I
As
I
mentioned
earlier,
we
will
use
funding
from
that
to
make
the
installment
payments
the
the
June
1
interest
payment
on
the
installment
bonds
and
the
total
funding
that
will
be
coming
from
series.
A
band
will
be
approximately
5.9
million
and
then
on
the
second.
The
largest
piece
of
it
is
the
fixed
cost
of
ownership
program
which
will
include
facilities,
maintenance,
technology,
security,
furnishings
and
equipment
and
I
believe,
there's
an
item
on
the
agenda
today.
I
That
will
go
into
some
detail
as
to
exactly
what
is
being
approved
to
be
funded
in
that
fix,
fixed,
fixed
cost
of
ownership,
sort
of
umbrella,
and
there
the
approximate
amount
is
55
million
dollars
and
then
finally,
there
were
three
schools
that
were
approved
in
the
current
sales
tax
program
and
we
issued
a
small
amount
of
money
last
year,
I
think
to
fund
the
advanced
design
of
these
schools
being
Morningside,
Middle,
School,
AC,
Corcoran,
Elementary
and
Deer
Park
middle
and
the
the
series
2023a
band
will
include
approximately
1.2
million
to
begin
construction
on
those
schools.
I
So
that's
that
series
a
and
series
a
will
be
paid
off
in
November
of
this
year
by
a
short-term
General
obligation
bond,
which
will
be
retired
in
its
entirety,
on
March,
1st
of
2024,
and
so
where
we
are
talking
about
issuing
debt
to
retire
debt.
It
still
will
all
be
within
about
a
nine
month
period
and
then
series
B
is
the
sales
tax
program.
I
It
will
retire
the
2022
sales
tax
ban,
which
matures
in
May
this
year
in
the
approximate
amount
of
84.5
million,
and
then
it
will
also
provide
cash
flow
funding
for
construction
of
approximately
40
million
dollars
of
the
current
sales
tax
program
and
then
finally,
one
smaller
item
that
we
really
didn't
touch
on.
But
back
in
2020
there
was
a
refunding
opportunity
to
refunding
a
portion
of
the
2013
installment
bonds,
but
because
of
changes
in
the
tax
law.
I
Since
since
those
Bonds
were
issued,
the
2020
refunding
bonds
could
not
be
issued
as
tax
exempt,
but
they
could
be
issued
as
taxable
and
still
generated
say.
You
know
sufficient
savings,
so
we've
got
a
very
small
issue
here.
That's
not
exceeding
two
million
dollars
will
be
issued
as
a
short-term
taxable
bond
to
make
the
decent
I
mean
the
June
1
interest
payment
on
the
taxable
iprbs.
I
So,
as
I
said,
this
will
be
on
the
agenda
for
the
regular
meeting
for
approval
and
we
just
thought,
since
we
were
sort
of
in
the
mindset
of
talking
about
all
these
debt
issues,
to
go
through
this
item
now,
just
in
case
there
were
any
questions
related
to
it.