Manor ISD board approves $13.1 million short‑term note as district cites cash‑flow pressure despite TEA 'superior' rating

Manor Independent School District trustees voted Oct. 22 to authorize a short‑term maintenance tax note of $13.1 million to cover operating cash needs through the winter months, after finance staff warned cash on hand could fall below 30 days by the end of the fiscal year.

The approval came after a detailed presentation of the Texas Education Agency's first financial rating for fiscal 2022–23. Moises Santiago, presenting the TEA indicators, told the board that Manor ISD achieved a "superior" rating for that year and cited a positive net position of roughly $40,100,000, strong current‑ratio metrics (3.19) and robust days‑cash‑on‑hand figures on several measures. "For this particular year, the district has scored a superior rating," Santiago said during the presentation.

Trustees and finance staff, however, described a separate short‑term cash‑flow problem driven by timing: monthly payroll runs about $8 million and accounts payable about $2.22 million. Finance staff reported an unaudited 2023–24 unassigned fund balance of approximately $29.7 million (about 99 days cash on hand at that snapshot) but said seasonality and the district's revenue calendar can leave the district needing interim financing before December and January tax receipts arrive. To preserve operations and provide a cushion, staff recommended a maintenance tax note sized at $13.1 million (roughly $13.0M available for district use and an estimated $100,000 in issuance costs) with a plan to repay the note when revenues come in.

External financial advisers briefed trustees on bank responses to a competitive term sheet and recommended Regions Bank based on net cost once fees and counsel costs were factored. Advisers said the short‑term notes under consideration are non‑rated and that, appropriately managed, they should not materially affect the district's long‑term bond ratings; they said rating agencies were engaged and asked the district to follow up with more detail on corrective actions.

The board approved a resolution authorizing the sale and delivery of the maintenance tax note after a second and a public vote.

Public comment at the meeting linked the financing discussion to a recent payroll mishap. Candace Cooper of the Texas Coalition For Change urged trustees to prioritize payroll continuity and staff compensation, and to "suspend your travel" and redirect those funds, saying open‑records checks showed some trustees' cumulative travel expenses near "nearly $50,000" (time period not specified by the speaker). The board acknowledged the payroll disruption and a board member apologized publicly for the mishap while commending finance staff who worked to resolve the issue.

The board also approved consent agenda items and asked staff to return with additional financial detail and monitoring reports for trustees and rating agencies. The district's financial advisers said the plan is to call and retire the note as soon as revenues allow; if repaid early, the district would pay only interest through the call date under the recommended call features.