This is the final presentation of the FY27 General Operating Budget for Committee
review. Based on total revenues of $8,195,458 with an increase in State Health
premiums and a .5% increase in the MOU with Pataula there is a projected surplus
of $83,476. Cheryl is requesting Committee approval before full Board presentation.
 

Due to timing constraints, and in accordance with our policies for emergency situations, Cheryl Weathersby obtained a short-term construction loan to cover construction costs until bond closing. 

The loan is guaranteed by Spring Creek’s certificate of deposit (CD). The bank has extended a line of credit equal to the full value of the CD—$1,044,000—at an interest rate of 5.25%.

In accordance with our emergency situation policy, Grayson Flowers signed the loan application.

Cheryl is requesting approval from the Committee to add retention bonuses for all staff members to the Spring Creek AFY26 General Operating Budget. The cost for all staff members to receive a bonus of 2.5% of their gross salary is approximately $84,100, leaving a surplus of approximately $15,000.

Bond Closing on the new construction project is set for April 23, 2026 and Cheryl is requesting approval to reinvest various proceeds from the bond. Kevin King, Owners Rep and Tom Draffin, Project Manager for the new construction project were available to give a financing update to the committee and present their recommendations for reinvestment opportunities. The final pricing number for the new construction is $37,478,788 issued with a 7.189% interest rate, this is an  increase from the original price by $910,386. This increase is due to economic factors tied to the current conflict with Iran and uncertainty with Charter School financing due to enrollment variations and a recent media article regarding failed charter schools. 

It is recommended that the Board enter a Guaranteed Investment Contract with Causey Public Finance for approximately $28,000,000 of the bond proceeds with a 3.9 - 4.1% interest rate and invest approximately $2,000,000 with Morgan Stanley through Regions Bank with an interest rate of 3.57% with draw down availability when needed.