Detroit Financial Review Commission

SCHOOL DISTRICT REGULAR MEETING

Monday, August 31, 2020

Following the City’s Regular Meeting

(Begins no earlier than 1:05 p.m.)

Using Microsoft Teams

MINUTES

Approved: September 28, 2020

1. Call to Order
   1. Madame Chair, Rachael Eubanks called the meeting to order at 1:35 p.m.
2. Roll Call         

Members Present – 6

• Rachael Eubanks
• Chris Kolb
• Ron Rose
• Iris Taylor
• Nicholai Vitti
• John Walsh

Members Absent – 4

• Stacy Fox
• Brenda Jones (non-voting)
• Dave Massaron (non-voting)
• David Nicholson

Let the record show that Six (6) Commission members eligible to vote were present. A quorum was present.

3. Approval of proposed Minutes from the FRC’s July 27, 2020 School District Monthly Meeting
   1. Motion made to approve the draft minutes of the Commission’s July 27, 2020 School District Meeting as presented. Motion moved and supported; the Commission approved the minutes of the July 27, 2020 meeting as presented.
4. Old Business
   1. None
5. New Business
   1. DPS Financial Report
      1. Chief Financial Officer Jeremy Vidito presented the Financial Report for DPS. He noted that in June the District received $16.5 million in 13 mills receipts bringing the year-to-date total to $85.8million. The current 13 mill tax receipt reserves are $20.7million.
      2. The District also received $10.4 million in 18mills receipts bringing the year to date total to $70.3 million, and a total of $18.6 million in supplemental payments were made on the outstanding ORS debt. The ending general fund cash balance for June was $3.0 million, and the projected ending balance for June 30, 2020 is $3.1 million. He addressed questions from the Commission.
   2. Transmittal of the Community District/DPS debt service requirements per MCL 141.1636 (11)
      1. Chief Financial Officer, Jeremy Vidito, stated that the Debt Service Requirements Report is a statutorily required report from the School District. He further stated that the Detroit Public Schools Community District (DPSCD) has no debt requirements to report at this time, however, he presented a report outlining all bonds, leases and other debt for the City of Detroit Public Schools (DPS) through the second quarter of FY21. The meeting was further informed that provided the City of Detroit maintains tax payment deadlines and does not extend them due to the COVID-19 pandemic, Detroit Public Schools (DPS) is projected to be financially able to meet the debt service requirements through the end of the Second Quarter of FY21. Mr. Vidito further noted that should the tax due dates are extended, DPS may have to borrow from the Student Loan Revolving Fund (SLRF) in order to make the Second Quarter of FY 21 payment, and if tax receipts are received as currently forecast, DPS estimates that it will borrow approximately $100 Million from the SLRF in the Fourth quarter to meet the remaining debt service requirements through the end of Fiscal year 2021.
   3.  Presentation of the Community District’s Monthly Financial Report
      1. Chief Financial Officer Jeremy Vidito presented the monthly financial report and stated that year to date revenues through June are running $25.8 million ahead of budget and the increased revenue in local and state sources are due to additional local tax collections and no reduction in state per pupil funding. He further stated that year-to-date expenses are $7.7 million ahead of budget, which is as a result of the District purchased additional materials, supplies, equipment and PPE in preparation for summer school and fall classes, and budget amendment #2 assumed more significant reduction in utility costs than actual costs.
      2. Mr. Vidito also reported that at the end of June 30, 2020 the District’s cash balances were: General fund $30.0 million; the internal service fund $14.8 million and the projected year-end balance for FY 2020 is $15.0 million; the rainy-day fund is $36.3 million; the MILAF investment account is $71.1 million, and the total available general fund is $153.3 million. The District’s capital projects fund is $38.1 million. The District’s food service fund is $22.1 million, and the legal reserve fund is $1.2 million. He further noted that a transfer of $25.3 million was made to the Capital Projects fund for planned FY21 projects; a transfer of $21.2 million was made from the General Fund to the MILAF account to maximize interests income and a transfer of $3.2 million was made from the ISF to cover associated costs. He addressed questions from the Commission.
   4. Consideration of the Community District’s August 31, 2020 Contract approval requests per MCL 141.1636 (6) (FRC School District Resolution 2020-18)
      1. Public Act 181 of 2014 requires the Financial Review Commission to review and approve contracts meeting any of the three criteria: 1) the contract exceeds $750,000; the contract has a term exceeding 2 years; and 3) multiple contracts within a single entity that exceed $750,000 in aggregate.
      2. Chief Financial Officer, Jeremy Vidito gave a brief overview of the Community District’s Twelve (12) contract approval requests and addressed questions from the Commission. All contracts have been reviewed by the FRC Advisory subcommittee on Contracts and Procurement.
      3. Motion made to consider and approve the Community District’s August,2020 contract approval requests (FRC School District Resolution 2020-18). Motion moved and supported. The Commission approved School District Resolution 2020-18.
6. Public Comment
   1. Michelle George
7. Next Meeting Date
   1. School District Regular Meeting: Monday, September 28, 2020, following the City Meeting, beginning no earlier than 1:05 pm, remotely using Microsoft Teams.
8. Adjournment
   1. Motion made to adjourn. Motion moved and supported; the Commission approved the motion to adjourn.
   2. There being no further business, the meeting adjourned at 2:10 p.m.

Signed: Beverly C. Greaves

Date:  8-31-2020