There were no changes or additions to the agenda.

Chief Carr presented an update of the Memphis Shelby County Schools 2024-2025 Financial Scorecards for all Schools.  KIPP Memphis Public Schools received 5/5 for each school on the fiscal year 2025 Financial Scorecard. 

Mrs. Gatson presented and update on the following:

• 2025-26 regional update (Pre-Audit).
• June 2026 Financial Highlights (State/Local)
  • Overall savings were driven by salary and benefit vacancies, increased investment and management fee revenue, the timing of the new school renovation, and lower non-personnel expenses.
• FY 2026 Cash Projections: 193 Days cash on hand which excludes Trustmark CD (excludes Trustmark CD) but ended with actual 218 Days Cash on Hand at June 2026
• FY 2027 Cash Projection:  185 Days projected cash on hand at June 2027  (excludes Trustmark CD)

Chief Carr presented an update on the 2026-27 Enrollment.

• Enrollment was 1,056 students as of September 12, 2026, exceeding the budgeted enrollment by 41 students. Operations and school teams were recognized for their strong enrollment efforts.

Chief Carr presented an update on the KIPP Collegiate Cordova Elementary Renovation Loan.

• The renovation loan consists of the General Contractor guraranteed maximum price of $8,633,158 plus closing costs. The projected closing date is September 24, 2026. The loan will provide interest-only financing during the construction phase, with an option to convert to a fixed interest rate upon completion of construction, subject to the terms of the loan agreement.

KCCE Bond Purchase and Loan Agreement (Debt Covenants)

• Quarterly and annual audited financial reports are required, along with maintaining a minimum Debt Service Coverage Ratio (DSCR) in excess of 1.00 to 1:00 as of June 30 each year.

• The final audit report is expected in December and will be shared with the Finance Committee upon completion. The external auditors will present and discuss the audit results at the February Finance Committee meeting.
• The Board Chair or Finance Committee Chair should encourage Board Members to thoroughly review the financial documents before Thursday’s Board meeting.
  • Finance Committee Chair Kyles will contact the Board.

Committee Chair Kyles:

• The final audit report is expected in December and will be shared with the Finance Committee upon completion. The external auditors will present and discuss the audit results at the February Finance Committee meeting.
• The team is confident the KCCE project allowances are sufficient and the loan will remain within the approved not-to-exceed amount.
• Committee Chair Kyles thanked the team for the strong presentation and recognized KIPP’s success in exceeding its enrollment goal. She also thanked Committee Member Anderson for joining to establish a quorum and allow the Committee to proceed with the necessary motions.

Board Chair Johnson emphasized the importance of strong Board participation in Finance Committee meetings, particularly given the significant financial matters and decisions being discussed. He also expressed concern regarding the limited Board Member attendance at the meeting.

It is recommended that the KIPP Memphis Finance Committee approve the KMPS Executive Team proceeding with the finalization and execution of a construction-to-permanent loan agreement with First Horizon in an amount not to exceed $8,633,158 plus closing costs to finance the renovation of KIPP Cordova Collegiate Elementary School (KCCE).

It is recommended that the KIPP Memphis Public Schools Finance Committee approve the revised contract to Grinder, Taber, & Grinder, Inc. for a Guaranteed Maximum Price amount not to exceed $8,633,158 to provide Construction Management At Risk (CMAR) General Contractor services to renovate the KIPP Cordova Collegiate Elementary School property at 7275 Goodlett Farms Pkwy.

The funding source for this expense will be financing secured for and by the 7275 Goodlett Farms Pkwy property.