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Midway ISD reports $83.5 million in bond proceeds; finance director outlines spending and collection highlights
Summary
Finance director Wesley Brooks told the board the district received $83.5 million in bond proceeds, is holding the funds across several accounts, and reported tax collections at roughly 97.9% of the adjusted levy with about $1.1 million still outstanding as of end of March.
Wesley Brooks, the district's finance presenter at the Midway ISD board meeting, reported that the district received $83.5 million in bond proceeds last month and outlined where those funds are currently held.
"Last month we received bond proceeds of $83.5 million," Brooks said, and noted the proceeds are currently distributed across the Lonear investment pool, South State Bank (the district depository), and TFNB money-market accounts. He cautioned that because the bonds are tax-exempt the district is restricted in its yield and must monitor arbitrage rules; investments are currently earning around 3.8% but the district is limited to 3.24% on tax-exempt financing and may have to pay back excess earnings to the IRS.
Brooks also reviewed near-term capital spending: the board packet shows about $11 million with the Lonear pool, $55.8 million with South State Bank, and $15 million at TFNB; some bond proceeds have already been used on vehicles and technology. Brooks highlighted a $1.1 million payment to Apple for iPads (a multi-payment, interest-free purchase) and said future iPad purchases could be funded from the bond proceeds.
On operating revenue, Brooks said the district had collected about 97.9% of the adjusted tax levy by the end of March and expects to reach 100% by June; he estimated roughly $1.1 million remained uncollected at that point. He reported a current-year general fund projection showing a $1.3 million deficit after adopted budget amendments but noted an audited property-value adjustment will bring an additional $654,000 in state revenue this year.
Brooks said administrators will begin presenting a bond-budget worksheet next month and described plans for a citizen bond-oversight committee to review expenditures and enhance transparency in project execution.
The board had brief follow-up questions about whether the lower collections were a countywide trend and about the timing and saving achieved by purchasing technology early; Brooks said pre-purchasing earlier in the year saved about $650,000 compared with buying later.
