DATE, TIME, PLACE OF MEETING
The Calcasieu Parish School Board met in the Conference Room of the Calcasieu Parish School Board located at 1732 Kirkman Street, Lake Charles, Louisiana, on Tuesday, January 24, 2006, 4:45 p.m. The meeting was called to order by Ed Stephens, President. The prayer was led by Mr. Webb; Mr. Robert led the Pledge of Allegiance.
ROLL CALL
The roll was called and the following members were present:
Joe A. Andrepont, Dale B. Bernard, Billy Breaux, Jay L. Duhon, John M. Falgout, Rev. J.L. Franklin, James W. Karr, Sr., Bryan LaRocque, Sheral A. LaVergne,Gregory P. Robert, Dr. Edward Stephens, Philip Tarver and R.L. Webb.
Clara F. Duhon was absent.
James W. Pitre arrived after the meeting convened.
MINUTES APPROVED
On motion by Mr. Breaux, seconded by Mr. Duhon and carried, the minutes of the regular meeting of January 10, 2006, were approved with a roll call correction to reflect the removal of Philip Tarver and notation that Mr. Bernard and Mr. Pitre were absent.
Supplemental Agenda
By general consent the Supplemental Agenda was included as part of the regular agenda.
PRESENTATIONS
Presentation to Past Superintendent Jude Theriot
Dr. Stephens recognized Jude Theriot, past Superintendent, and wife Debbie. He honored Mr. Theriot by presenting a plaque to him for his service from 1995-2005 as Superintendent of schools. Dr. Stephens commended him for his leadership and commitment to the education of children in Calcasieu Parish. Mr. Theriot thanked the Board.
Mr. Pitre entered the meeting.
Mr. Duhon made a motion, seconded by Mr. Breaux, to accept items V1, VII, VIII, IX, X, and XIV as presented in the agenda packet. There was discussion concerning pertinent issues in the Budget/Fiscal Management Committee report that required explanation.
Subsequently, Mr. Andrepont made an amendment to the motion, seconded by Mr. Duhon, to accept all items excluding item VI – Budget/Fiscal Management. The amendment to the motion carried. Dr. Stephens called for a vote on the motion as amended to approve items VII, VIII, IX, X, and XIV. The motion carried.
COMMITTEE REPORTS
Budget /Fiscal Management
Chairman Jay Duhon reported that the Budget/Fiscal Management Committee met January 17, 2006. A quorum was present.
James Spruel informed the committee that Ms. Eason was officially sworn in as a Board member prior to the committee meeting and therefore could participate fully in the meeting.
Mr. Duhon reported that staff addressed the committee regarding the information processing of data crucial to all processes monitored by the State. The data entered by school staff includes attendance, grading, discipline, lunch information and funding. It was recommended that the implementation of a Data Entry Pilot Program would improve the process and free up school staff’s time. The cost to implement the program would be $74,000 for the remainder of the 2005-2006 fiscal year. This would cover the hiring of 3 200-day clerks and training incurred. Implementation for 2006-2007 would add an additional 5 to 7 clerks at a total program cost of approximately $250,000.
A motion was made, seconded and approved, recommending that the Data Entry Pilot Program be adopted for the remainder of the 2005-2006 fiscal year. On behalf of the committee, Mr. Duhon moved to accept the recommendation as presented. The motion carried.
The committee was presented General Fund Budget Revision #1 for the 2005-2006 fiscal year. Projected revenues totaled $200,222,093, an increase of $903,868 over the original budget and expenditures of $202,191,474, an increase of $2,873,249 over the original budget of $199,318,225. The projected changes created an estimated deficit of $1,969,381. Projected undesignated/unreserved fund balance is $21,443,332 or 10.71% of projected revenues.
A motion was made, seconded and approved by committee, to accept General Fund Budget Revision # 1 for the 2005-2006 fiscal year. Mr. Duhon moved on behalf of the committee to accept the revision as presented. The motion carried.
Mr. Duhon reported that Mr. Bruchhaus presented an update of the 2005-2006 School Lunch Budget. Proposed revenues and other sources of funds totaled $13,199,162 and expenditures and other uses totaled $14,384,706 with a proposed deficit of $1,185,544 which was transferred from the General Fund by a Board approved appropriation. The Board also previously approved an increase in lunch prices to generate $127,000 per year in revenues. Originally, staff recommended that 89 full-time equivalent positions be cut to balance the budget. The School Lunch Department has done an excellent job in reducing staff through attrition since the beginning of the budget year with the elimination of 50.86 full-time equivalent positions. They will continue to work on this issue. It is the intention of staff to present a balanced School Lunch budget for 2006-2007 with General Fund contributions limited to the Board approved level of program benefit costs.
A motion was made, seconded and approved by committee, to accept a balanced School Lunch budget for 2006-2007. Mr. Duhon moved on behalf of the committee to accept the balanced budget as presented. He noted that the balanced budget process will be addressed by the Budget Committee at a later date. The motion carried approving the balanced School Lunch budget.
Next, Mr. Bruchhaus spoke to the committee regarding the possibility of mandating direct deposit for all regular monthly paychecks. Many challenges were brought on by Hurricane Rita including the processing and distribution of payroll checks for employees that did not have direct deposit. The School Board’s fiscal agent bank has offered a card-based program called Chase E-Funds Direct that would allow the posting of payroll to a Chase account that can be withdrawn with an ATM card for those employees who do not have a bank account. Staff recommended that enrollment in the direct deposit program be mandated with an offer of the Chase E-Funds Direct card to employees who do not have a traditional bank account.
A motion was made, seconded and approved by the committee, that direct deposit be mandated for all regular monthly paychecks with an offer of the Chase E-Funds Direct card to employees who do not have a traditional bank account. Mr. Duhon moved on behalf of the committee to approve the recommendation. It was noted for clarification that the process should be in place by the end of the school year. The motion carried.
An update on the damage associated with Hurricane Rita was given by Mr. Bruchhaus. Total costs incurred to date were $14,852,920 which included payroll costs, debris clean-up, temporary and permanent repairs as well as rental of temporary facilities for the transportation and warehouse departments and the purchase of the Sam’s facility to house these employees in the future. Additional costs anticipated are estimated at $2,500,000 which include replacement of destroyed computers, and preparation of the Sam’s building for occupancy. All costs are being accumulated in a separate accounting fund that will eventually be closed out into the General Fund at a later date. The insurance company has visited all sites and has advanced the Board $5 million toward incurred damages. While FEMA representatives have been visiting our schools and collecting data and other pertinent information, we have not received any FEMA funding to date. Staff will continue to update the Board as parameters change or major events occur.
This item was for informational purposes only and no action was necessary.
The next item Mr. Bruchhaus introduced was a recommendation by staff to enter into a consulting agreement with Southern Specialized Risk Options, LLC for assistance with the filing of the School Board’s Hurricane Rita FEMA claim. Although staff has provided all information FEMA has requested, it appears that it may be up to one year before we will receive money from some claims. Steve Haynes, representative of Southern Specialized Risk Options, has a vast knowledge of FEMA rules and regulations and has served as an external consultant helping entities process FEMA claims. The contract would cost $5,000 for the first 60 hours and $100 per hour after that.
A motion was made, seconded and approved by committee, recommending that the contract with Southern Specialized Risk Options, to assist with the filing of the Hurricane Rita FEMA claim, be accepted. On behalf of the committee, Mr. Duhon moved to approve the recommendation. The motion carried.
Next, Mr. Bruchhaus presented an addendum to the Joint Services Agreement with the City of DeQuincy for use of the old DeQuincy Middle School gymnasium. The City has been using the facility since December 1, 1992, and requested permission to extend the agreement.
A motion was made, seconded and approved, recommending that the addendum to the Joint Services Agreement with the City of DeQuincy for the use of the old DeQuincy Middle School gymnasium be accepted as presented. Mr. Duhon moved on behalf of the committee to approve the addendum to the Joint Services Agreement with the City of DeQuincy. The motion carried.
The contract for disposal of surplus used wooden pallets will expire on February 28, 2006. Staff requested permission to advertise for sale of the used pallets.
A motion was made, seconded and approved granting permission to advertise for the sale of the used wooden pallets. On behalf of the committee, Mr. Duhon moved to approve permission to advertise for the sale of the used wooden pallets. The motion carried.
Mr. Robert made a motion, seconded by Mr. Karr, to revise the agenda in order to address a budget item. The motion was approved.
Subsequently, Mr. Robert made a motion, seconded by Mr. Andrepont, to approve the $100.00 teacher supply allocation that has historically been implemented at mid year. It was noted that this would allow the teachers adequate time to accomplish their educational objectives.
Discussion ensued relative to the salary supplement. Mr. Bruchhaus explained that
the supply allocation is palatable, but staff is not prepared to recommend the salary supplement at this time.
Dr. Stephens called for a vote on the motion to approve the teacher supply allocation. The motion carried.
Mr. Webb made a motion to consider the teacher salary supplement.
Mr. LaRocque called for a point of order. Dr. Stephens ruled that the motion by Mr. Webb was not relative to an agenda item.
Mr. Webb made a motion, seconded by Mr. Karr, to revise the agenda. The motion failed.
TAKE APPROPRIATE ACTION
Resolution Authorizing the Issuance of School District Number 26 Bonds
The President presented affidavits evidencing proper publication of the Notice of Sale of the Bonds, said affidavits indicating that the Notice of Sale had been published in the Lake Charles American Press, a newspaper published in Calcasieu Parish, and of general circulation in School District No. 26 of Calcasieu Parish, Louisiana, on January 16, 2006 (such publication having been made at least seven (7) clear calendar days before the date scheduled for the receipt of bids), and also published in the Daily Journal of Commerce, a financial newspaper or journal containing a section devoted to municipal bond news published in the City of New Orleans, Louisiana on January 16, 2006 (which publication was made at least forty-eight (48) hours in advance of the date scheduled for the receipt of bids). The affidavits were approved and were ordered filed with the minutes of said meeting.
The President then presented the sealed bids for the purchase of the Bonds of School District No. 26 of Calcasieu Parish, Louisiana, which had been received, which bids were opened and found to be as follows:
EFFECTIVE
NAME OF BIDDER INT. RATE PREMIUM.
1. Crews & Associates, Inc.
Little Rock, Arkansas 5.072090% $ 933.05
2. Jeff Davis Bank & Trust Co.
Jennings, Louisiana 5.320630% -0-
3. Morgan Keegan & Company, Inc.
New Orleans, Louisiana 4.83654% -0-
Upon verification, it was determined that the bid of Morgan Keegan & Company, Inc., of New Orleans, Louisiana, was the lowest and best bid submitted for the purchase of the Bonds, whereupon the following resolution was introduced and, pursuant to motion made by Mr. Andrepont and seconded by Mr. Duhon, was adopted by the following vote:
YEAS: Mr. Andrepont, Mr. Bernard, Mr. Breaux, Mr. Duhon, Mr. Falgout, Rev. Franklin, Mr. Karr, Mr. LaRocque, Ms. LaVergne, Mr. Pitre, Mr. Robert, Mrs. Eason, and Mr. Webb
NAYS: None
ABSENT: Mrs. Duhon
NOT VOTING: Dr. Stephens
RESOLUTION
A RESOLUTION PROVIDING FOR ISSUANCE OF $2,845,000 GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BONDS OF SCHOOL DISTRICT NO. 26 OF CALCASIEU PARISH, LOUISIANA, 2006 SERIES; CONFIRMING THE SALE THEREOF; AND PROVIDING FOR THE LEVY OF TAXES FOR THE PAYMENT OF PRINCIPAL THEREOF AND INTEREST THEREON.
WHEREAS, pursuant to a resolution adopted by the Calcasieu Parish School Board, governing authority of School District No. 26 of Calcasieu Parish, Louisiana (the “Issuer”) on August 16. 2005, and in conformity with notice duly published in compliance with law, there was held in School District No. 26 of Calcasieu Parish, Louisiana, on November 12, 2005, a special election at which there was submitted to the qualified electors of said district the following proposition:
BOND PROPOSITION
SUMMARY: AUTHORITY FOR SCHOOL DISTRICT NO. 26 OF CALCASIEU PARISH, LOUISIANA, TO ISSUE NOT EXCEEDING $4,400,000 OF UP TO 20-YEAR PUBLIC SCHOOL IMPROVEMENT BONDS FOR ACQUIRING AND/OR IMPROVING SCHOOL BUILDINGS AND OTHER SCHOOL RELATED FACILITIES WITHIN THE DISTRICT, SAID BONDS TO BE PAYABLE FROM AD VALOREM TAXES.
Shall School District No. 26 of Calcasieu Parish, Louisiana, incur debt and issue bonds in an amount not exceeding $4,400,000 for a period not to exceed twenty (20) years from the date thereof, with interest at a rate not exceeding eight (8%) percent per annum, for the purpose of acquiring and/or improving lands for building sites and playgrounds, purchasing, erecting, enlarging and/or improving school buildings and other school related facilities within and for said School District, and acquiring the necessary equipment and furnishings therefor, title to which shall be in the public, which said bonds shall be retired with, paid from and secured by ad valorem taxes on all taxable property within the limits of School District No. 26 of Calcasieu Parish, Louisiana, sufficient in rate and amount to pay said bonds in principal and interest?
and
WHEREAS, pursuant to said resolution calling said special election, and the notice of said election, the Calcasieu Parish School Board as the governing authority (the “Governing Authority”) of School District No. 26 of Calcasieu Parish, Louisiana (the “Issuer”), did on December 13, 2005, meet in open session and canvass the returns of said election and did declare said election to have resulted in favor of said proposition; and
WHEREAS, on December 28, 2005, the Calcasieu Parish School Board issued $9,000,000 of its Qualified Zone Academy Bond Program (Taxable Certificates of Indebtedness), Series 2005, a portion of which in the amount of $1,555,000, was allocable to the Issuer; and
WHEREAS, the Governing Authority now deems it in the public interest to authorize issuance and delivery of $2,845,000 General Obligation Public School Improvement Bonds of School District No. 26 of Calcasieu Parish, Louisiana, 2006 Series;
WHEREAS, the Governing Authority deems it to be in the public interest that it accept the lowest and best bid received for the purchase of the Bonds reflected above, together with the good faith check which accompanies such bid;
WHEREAS, pursuant to Notice of Sale duly published, the Bonds have been sold to Morgan Keegan & Company, Inc., of New Orleans, Louisiana, at the price of not less than par and accrued interest to date of delivery, the bid of said purchaser being in full as follows:
We offer to purchase TWO MILLION EIGHT HUNDRED FORTY-FIVE THOUSAND AND NO/100 ($2,845,000) DOLLARS General Obligation Public School Improvement Bonds of School District No. 26 of Calcasieu Parish, Louisiana, 2006 Series, in the initial denominations of one Bond for each maturity, with transfers in multiples of $5,000.00, bearing interest payable semi-annually on February 15 and August 15 of each year, beginning February 15, 2007, maturing serially, WITH OPTION OF PRIOR PAYMENT, all in accordance with the Notice of Bond Sale and Official Statement, all the terms and conditions of which by reference are made a part hereof, and bearing interest at rates as follows, viz:
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPAL INTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(Feb. 15) ANNUM (Feb. 15) ANNUM
2007 20,000.00 6.00% 2017 195,000.00 5.125%
2008 15,000.00 6.00% 2018 210,000.00 5.125%
2009 15,000.00 6.00% 2019 220,000.00 5.00%
2010 15,000.00 6.00% 2020 230,000.00 4.70%
2011 20,000.00 6.00% 2021 240,000.00 4.70%
2012 20,000.00 5.50% 2022 255,000.00 4.70%
2013 15,000.00 5.50% 2023 265,000.00 4.75%
2014 20,000.00 5.00% 2024 280,000.00 4.75%
2015 15,000.00 5.00% 2025 295,000.00 4.75%
2016 190,000.00 5.25% 2026 310,000.00 4.75%
We will pay the principal sum of TWO MILLION EIGHT HUNDRED FORTY-FIVE THOUSAND AND NO/100 ($2,845,000) DOLLARS, together with accrued interest from the date of the Bonds to the date of delivery, plus a premium in the amount of $ -0- .
For your information, we calculate the lowest effective interest rate to School District No. 26 to be 4.83654 %, said rate to be determined in accordance with the “True” or “Canadian” interest cost method of calculation by doubling the semiannual interest rate (compounded semiannually) necessary to discount the debt service payments from the payment dates to the date of the Bonds and to the price bid, excluding the accrued interest from the date of the Bonds to the date of their delivery.
Bonds bid for herein will be delivered and shall be paid for on or about February 23, 2006 at such place in Louisiana, and on such business day and at such hour, as the Issuer shall fix on five business days’ notice to the successful bidder, or at such other place and time as may be agreed upon with the successful bidder, it being understood that School District No. 26 will furnish to us, free of charge, at the time of delivery of the Bonds, the qualified approving legal opinion of Joseph A. Delafield, A Professional Corporation, of Lake Charles, Louisiana, and a certified transcript of this proceeding.
In accordance with the Notice of Bond Sale, we enclose herewith (certified) (cashier’s) check(s) number(s) 10802240 drawn on Whitney National Bank of New Orleans, LA , in the amount of FIFTY-SIX THOUSAND NINE HUNDRED AND NO/100 ($56,900.00) DOLLARS, which is tendered as evidence of our good faith in accordance with and under the provisions of the Official Statement and of the Notice of Bond Sale. Said check shall be returned to the undersigned upon award of the Bonds, provided this proposal is not accepted; otherwise, to be retained uncashed by School District No. 26 of Calcasieu Parish, Louisiana, and returned upon delivery of the Bonds and payment therefor, or to be cashed and forfeited as and for full liquidated damages in case of the failure of the undersigned to make such payment.
We acknowledge and understand the Bonds are designated as “qualified tax-exempt obligations” pursuant to Section 265(b)(3)(B) of the Internal Revenue Code of 1986.
This bid complies with the terms stipulated in the aforesaid Notice of Bond Sale, the receipt of which Notice of Bond Sale is hereby acknowledged.
NOW THEREFORE, BE IT RESOLVED by the Calcasieu Parish School Board, governing authority of School District No. 26 of Calcasieu Parish, Louisiana, as follows:
SECTION 1. Definitions. As used herein the following terms shall have the following meanings, unless the context otherwise requires:
“Agreement” means the agreement to be entered into between the Issuer and the Paying Agent pursuant to this Resolution.
“Bond” means any 2006 Series Bonds of the Issuer authorized to be issued by this Resolution, whether initially delivered or issued in exchange for, upon transfer of, or in lieu of any bond previously issued.
“Bond Register” means the record kept by the Paying Agent at its principal corporate office in which registration of the Bonds and transfers of the Bonds shall be made as provided herein.
“Bonds” means the General Obligation Public School Improvement Bonds, 2006 Series of the Issuer, authorized by this Resolution, in the total aggregate principal amount of Two Million Eight Hundred Forty-Five Thousand Dollars ($2,845,000).
“Business Day” means a day of the year other than a day on which banks in the city in which the Paying Agent is located are required or authorized to remain closed or the New York Stock Exchange is closed.
“Code” means the Internal Revenue Code of 1986, as amended.
“Debt Service Fund” shall have the meaning ascribed to such term in Section 10 hereof.
“Defeasance Obligations” shall mean (a) cash, or (b) non-callable Government Securities.
“Executive Officers” means, collectively, the President and Secretary of the Governing Authority.
“Governing Authority” means the Calcasieu Parish School Board.
“Government Securities” means direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which are non-callable prior to their maturity, and may be United States Treasury obligations such as the State and Local Government Series and may be in book-entry form.
“Interest Payment Dates” means February 15 and August 15 of each year beginning February 15, 2007.
“Issuer” means School District No. 26 of Calcasieu Parish, Louisiana.
“Outstanding” when used with respect to the Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Resolution, except:
1. Bonds theretofore cancelled by the Paying Agent or delivered to the Paying Agent for cancellation.
2. Bonds for which payment or redemption sufficient funds have been theretofore deposited in trust for the Owners of such Bonds, provided that, if such Bonds are to be redeemed, irrevocable notice of such redemption has been duly given or provided for pursuant to this Resolution or waived.
3. Bonds in exchange for or in lieu of which other bonds have been registered and delivered pursuant to this Resolution.
4. Bonds alleged to have been mutilated, destroyed, lost, or stolen, which have been paid as provided in this Resolution or by law.
5. Bonds for the payment of principal (or redemption price, if any) of and interest on which money or Government Securities or both are held in trust with the effect specified in this Resolution.
“Owner” or “Owners” or “Registered Owner” when used with respect to any Bond means the Person in whose name such Bond is registered in the Bond Register, as herein provided.
“Paying Agent” means Argent Trust Company, a Division of National Independent Trust Company, in Ruston, Louisiana, until a successor Paying Agent shall have been appointed pursuant to the applicable provisions of this Resolution, and thereafter “Paying Agent” shall mean such successor Paying Agent.
“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or government or any agency or political subdivision thereof.
“Purchaser” means the original purchaser or purchasers of the Bonds.
“Record Date” for the interest payable on any Interest Payment Date means the first calendar day of the month in which an Interest Payment is due, whether or not such day is a Business Day.
“Resolution” means this Resolution authorizing issuance of the Bonds.
SECTION 2. Authorization of Bonds; Maturities. In compliance with and under the authority of the provisions of Article VI, Section 33 and Article VII, Section 26(E) of the Constitution of the State of Louisiana of 1974, as amended, and those portions of Part II of Article 7 of the Constitution of 1974 of the State of Louisiana not repealed by the 1977 Louisiana Legislature, and Sub-Part A, Part III, Chapter 4, Sub-Title II of Title 39 of the Louisiana Revised Statutes of 1950, as amended, and constitutional and statutory authority supplemental thereto, and pursuant to proceedings regularly and legally taken by the Issuer, and a special election held within the Issuer on November 12, 2005, there is hereby authorized the incurring of an indebtedness of Two Million Eight Hundred Forty-Five Thousand Dollars ($2,845,000) for, and on behalf of and in the name of the Issuer, for the purpose of acquiring and/or improving school buildings and other school related facilities within and for the Issuer, and acquiring the necessary equipment and furnishings therefor, a work of public improvement, title to which school improvements shall be in the public, and to pay the cost of issuance of the Bonds, and to represent said indebtedness this Governing Authority does hereby authorize issuance of Two Million Eight Hundred Forty-Five Thousand Dollars ($2,845,000) of General Obligation Public School Improvement Bonds, 2006 Series, of the Issuer. The Bonds shall be in fully registered form, shall be dated February 15, 2006, shall be issued in the denomination of Five Thousand Dollars ($5,000) each, or any integral multiple thereof within a single maturity, and shall be numbered consecutively from R-001 upward and shall mature in the years and in the principal amounts set out in the following schedule. The unpaid principal of the Bonds shall bear interest from date thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for, payable on each Interest Payment Date, commencing February 15, 2007, at rates of interest of not to exceed 8% per annum, as determined by receipt of sealed bids pursuant to advertisement, and maturing in the principal amounts as set out in the following schedule:
MATURITY PRINCIPAL INTEREST MATURITY PRINCIPALINTEREST
DATE AMOUNT RATE PER DATE AMOUNT RATE PER
(Feb. 15) ANNUM (Feb. 15) ANNUM
2007 20,000 6.00% 2017 195,000 5.125%
2008 15,000 6.00% 2018 210,000 5.125%
2009 15,000 6.00% 2019 220,000 5.00%
2010 15,000 6.00% 2020 230,000 4.70%
2011 20,000 6.00% 2021 240,000 4.70%
2012 20,000 5.50% 2022 255,000 4.70%
2013 15,000 5.50% 2023 265,000 4.75%
2014 20,000 5.00% 2024 280,000 4.75%
2015 15,000 5.00% 2025 295,000 4.75%
2016 190,000 5.25% 2026 310,000 4.75%
The principal of the Bonds, upon maturity or redemption, shall be payable at the principal corporate trust office of the Paying Agent, upon presentation and surrender thereof, and interest on the Bonds shall be payable by check mailed by the Paying Agent to the Registered Owner at the address shown on the Bond Register. The person in whose name any Bond is registered at the close of business on the Record Date with respect to an Interest Payment Date (unless such Bond has been called for redemption on a redemption date which is prior to such Interest Payment Date) shall be entitled to receive the interest payable with respect to such Interest Payment Date notwithstanding the cancellation of such Bond upon any registration of transfer or exchange thereof subsequent to such Record Date and prior to such Interest Payment Date. Each Bond delivered under this Resolution upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond, and each such Bond will bear interest (as herein set forth) so that neither gain nor loss interest shall result from such transfer, exchange or substitution.
No Bond will be entitled to any right or benefit under this Resolution, or be valid or obligatory for any purpose, unless there appears on such Bond a certificate of registration, substantially in the form provided in this Resolution, executed by the Paying Agent by manual signature.
SECTION 3. Redemption Provisions. Those Bonds maturing in the years 2007 to 2011, inclusive, shall not be subject to redemption prior to maturity. Those Bonds maturing February 15, 2012 and thereafter shall be callable for redemption by the Issuer in full at any time on or after February 15, 2011, or in part in the inverse order of their maturities, and if less than a full maturity then by lot within such maturity, on any Interest Payment Date on or after February 15, 2011, at the principal amount thereof, plus accrued interest from the most recent Interest Payment Date to which interest has been paid or duly provided for to the date fixed for redemption.
In the event a Bond to be redeemed is of a principal amount denomination larger than $5,000, a portion of such Bond ($5,000 principal amount or any multiple thereof) may be redeemed. Any Bond which is to be redeemed only in part shall be surrendered at the principal corporate office of the Paying Agent and there shall be delivered to the Owner of such Bond a new Bond or Bonds of the same maturity and of any authorized denomination or denominations as requested by such Owner in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal amount of the Bond so surrendered. Official notice of such call of any of the Bonds for redemption will be given by means of first class mail, postage prepaid, by notice deposited in the United States mail not less than thirty (30) days prior to the redemption date, addressed to the Owner of each Bond to be redeemed as shown on the Bond Register.
SECTION 4. Exchange of Bonds; Persons Treated as Owners. The Issuer shall cause books for registration and for transfer of the Bonds (the “Bond Register”), as provided in this Resolution to be kept at the principal office of the Paying Agent, and the Paying Agent is hereby constituted and appointed the Registrar for the Bonds. The Bonds may be transferred, registered and assigned, at the expense of the Issuer, only upon the Bond Register upon surrender thereof at the principal office of the Paying Agent and by execution of the assignment form on the Bonds or by other instrument of transfer and assignment in such form as shall be satisfactory to the Paying Agent. A new Bond or Bonds will be delivered by the Paying Agent to the last assignee (the new registered owner) in exchange for such transferred and assigned Bonds within three (3) business days after receipt of the Bonds to be transferred in proper form. Such new Bond or Bonds must be in the principal amount denomination of $5,000 or any integral multiple thereof within a single maturity. Neither the Issuer nor the Paying Agent will be required to issue, register the transfer of or exchange any Bond during a period beginning (i) at the opening of business on the Record Date, or (ii) with respect to any Bond called for redemption prior to maturity during a period beginning at the opening of business fifteen (15) days before the date of mailing of a notice of redemption of such Bond and ending on the date of such redemption. The execution by the Issuer of any fully registered Bond shall constitute full and due authorization of such Bond and the Paying Agent shall thereby be authorized to authenticate, date and deliver such Bond; provided, however, that the principal amount of outstanding Bonds of each maturity authenticated by the Paying Agent shall not exceed the authorized principal amount of Bonds for such maturity less previous retirements, subject to the provisions of Section 18 hereof. The Issuer is authorized to prepare, and the Paying Agent shall keep custody of, multiple Bond blanks executed by the Issuer for use in the transfer and exchange of Bonds.
SECTION 5. Registered Owner. As to any Bond, the Person in whose name the same shall be registered as shown on the Bond Register required by Section 4, shall be deemed and regarded as the absolute Owner thereof for all purposes, and payment of or on account of the principal of and premium, if any, and interest on any such Bond shall be made only to or upon the order of the Registered Owner thereof or his legal representative, and the Issuer and the Paying Agent shall not be affected by any notice to the contrary. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid.
SECTION 6. Form of Bonds. The Bonds and the endorsements to appear thereon will be in substantially the following form, to-wit:
(FACE OF BOND)
UNITED STATES OF AMERICA STATE OF LOUISIANA
PARISH OF CALCASIEU
REGISTERED REGISTERED
NO. R-____________ $____________
GENERAL OBLIGATION PUBLIC SCHOOL IMPROVEMENT BOND OF
SCHOOL DISTRICT NO. 26 OF
CALCASIEU PARISH, LOUISIANA
2006 SERIES
DATED DATE INTEREST RATE: MATURITY DATE: CUSIP:
February 15, 2006
School District No. 26 of Calcasieu Parish, Louisiana (herein called the “Issuer”), for value received, hereby acknowledges itself indebted and promises to pay to
REGISTERED OWNER:
PRINCIPAL AMOUNT
(Lower Left)
OFFICE OF SECRETARY OF STATE
STATE OF LOUISIANA
BATON ROUGE, LOUISIANA
This Bond secured by a tax. Registered
on the ______ day of February, 2006.
____________________________
SECRETARY OF STATE
PAYING AGENT/REGISTRAR'S
CERTIFICATE OF REGISTRATION
This Bond is one of the Bonds referred
to in the within mentioned Bond Resolution.
Argent Trust, a Division of
National Independent Trust Company
in the City of Ruston, Louisiana,
as Paying Agent/Registrar
By:___________________________
Date of Authentication:
(Lower Right)
or registered assigns, on the maturity date set forth above, the principal amount set forth above, together with interest thereon from the date hereof, said interest payable semi-annually on February 15 and August 15 in each year, beginning February 15, 2007, at the interest rate per annum set forth above until said principal sum is paid, unless this Bond has been previously called for redemption and payment shall have been duly made or provided for. The principal of this Bond upon maturity or redemption is payable in lawful money of the United States of America at the principal corporate trust office of Argent Trust, a Division of National Independent Trust Company located in the City of Ruston, Louisiana (the Paying Agent/Registrar), or successor thereto, upon presentation and surrender hereof. Interest on this Bond is payable by check mailed on each interest payment date by the Paying Agent/Registrar to the registered owner (determined as of the first calendar day of the month in which an interest payment is due) at the address, as shown on the books of the Paying Agent/Registrar.
REFERENCE IS MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF WHICH SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH HEREIN.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Resolution defined hereinafter until the Certificate of Registration hereon shall have been signed by the Paying Agent/Registrar.
IN WITNESS WHEREOF, the Calcasieu Parish School Board, acting as the governing authority of School District No. 26 of Calcasieu Parish, Louisiana, has caused this Bond to be executed in its name by the facsimile signatures of its President and Secretary and the impress or imprint hereon of the seal of said School Board, and this Bond to be dated February 15, 2006.
CALCASIEU PARISH SCHOOL BOARD
/s/ [facsimile] /s/ [facsimile]
SECRETARY PRESIDENT
(REVERSE OF BOND)
ADDITIONAL PROVISIONS
This Bond is one of an issue, the Bonds of which are all of like date, tenor and effect, except as to the number, maturity and rate of interest, aggregating in principal the sum of TWO MILLION EIGHT HUNDRED FORTY-FIVE THOUSAND AND NO/100 ($2,845,000) DOLLARS; said Bonds to mature annually, issued pursuant to a resolution adopted on January 24, 2006, by the Issuer (the “Bond Resolution”), under and by virtue of Article 6, Section 33 and Article 7, Section 26(E) of the Constitution of 1974 of the State of Louisiana, and those portions of Part II of Article 7 of the Constitution of 1974 of the State of Louisiana not repealed by the 1977 Louisiana Legislature, and Subpart A of Part III of Chapter 4 of Sub-Title II of Title 39 of the Louisiana Revised Statutes of 1950, as amended, and all other laws on the same subject matter, and pursuant to proceedings regularly and legally taken by the Issuer, for the purpose of acquiring and/or improving lands for building sites and playgrounds, purchasing, erecting, enlarging and/or improving school buildings and other school related facilities within and for the Issuer, and acquiring the necessary equipment and furnishings therefor.
This Bond and the issue of which it forms a part are payable out of the receipt of unlimited ad valorem taxes levied on all properties subject to taxation within School District No. 26 of Calcasieu Parish, Louisiana.
The Paying Agent/Registrar for this issue is Argent Trust, a Division of National Independent Trust Company, Ruston, Louisiana. This Bond shall pass by delivery on the books of the Issuer to be kept for that purpose at the principal corporate trust office of the Registrar and such registration is noted hereon. After such registration no transfer shall be valid unless made on said books at said office by the registered owner in person or by his duly authorized attorney and similarly noted hereon. This Bond may not be discharged from registration by like transfer to bearer. The Issuer and the Registrar may treat the registered owner as the absolute owner hereof for all purposes, whether or not this Bond shall be overdue and shall not be bound by any notice to the contrary.
Those Bonds maturing in the years 2007 to 2011, inclusive, shall not be subject to redemption prior to maturity. Those Bonds, or portions thereof in multiples of $5,000, maturing in the years 2012 to 2026, inclusive, shall be subject to redemption prior to their stated maturities, at the option of the Issuer, in such order as the Issuer may determine and by lot within any maturity, on any interest payment date on or after February 15, 2011, at par and accrued interest to the date fixed for redemption.
Official notice of such call for redemption of any of the Bonds shall be given not less than thirty (30) days prior to the redemption date by means of registered or certified mail by notice deposited in the United States mail addressed to the Paying Agent/Registrar and to the registered owner of each Bond to be redeemed at his address as shown on the registration books of the Paying Agent/Registrar. In the event a Bond is of a denomination larger than $5,000, a portion of such Bond ($5,000 or any multiple thereof) may be redeemed.
It is certified that this Bond is authorized by and is issued in conformity with the requirements of the Constitution and statutes of the State of Louisiana. It is further certified, recited and declared that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issuance of this Bond necessary to constitute the same as a legal, binding and valid obligation of the Issuer, have existed, have happened and have been performed in due time, form and manner as required by law, and that the indebtedness of the Issuer, including this Bond, does not exceed any limitation prescribed by the Constitution and statutes of the State of Louisiana.
ASSIGNMENT
FOR VALUE RECEIVED, , the undersigned, hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney or agent to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises.
Dated:___________________
NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever.
(FORM OF LEGAL OPINION CERTIFICATE -
TO BE PRINTED ON ALL BONDS)
I, the undersigned Secretary of the Calcasieu Parish School Board, governing authority of School District No. 26 of Calcasieu Parish, Louisiana, do hereby certify that the above and foregoing is a true copy of the complete legal opinion of Joseph A. Delafield, A Professional Corporation, Lake Charles, Louisiana, Bond Counsel, the original of which was manually executed, dated and issued as of the date of payment for and delivery of the Bonds of the issue described therein and was delivered to the Original Purchasers thereof. I further certify that an executed copy of the above-referenced legal opinion is on file in my office and that an executed copy thereof has been furnished to the Paying Agent/Registrar for this Bond.
Secretary
SECTION 7. Execution of Bonds. The Bonds shall be signed by the Executive Officers of the Issuer for, on behalf of, in the name of and under the corporate seal of the Issuer, and the Legal Opinion Certificate shall be signed by the Secretary of the Governing Authority, which signatures and corporate seal may be either manual or facsimile and the delivery of any Bond so executed at any time thereafter shall be valid although, before the date of delivery, the persons signing the Bonds cease to hold office.
SECTION 8. Registration with Secretary of State. The Bonds shall be registered with the Secretary of State of the State of Louisiana as provided by law and shall bear the endorsement of the Secretary of State of Louisiana in substantially the form set forth herein, provided such endorsement shall be manually signed only on the Bonds initially delivered to the Purchaser, and any Bonds subsequently exchanged therefor as permitted in this Resolution may bear the facsimile signature of said Secretary of State.
SECTION 9. Pledge of Full Faith and Credit; Tax Levy. The Bonds shall constitute general obligations of the Issuer, and the full faith and credit of the Issuer is hereby pledged to the punctual payment or the Bonds in accordance with the authority of Article VI, Section 33 of the Constitution of the State of Louisiana of 1974, as amended, Sub-Part A, Part III, Chapter 4, Title 39 of the Louisiana Revised Statutes of 1950, as amended, and constitutional and statutory authority supplemental thereto. The Issuer obligates itself and is bound under the terms and provisions of law and the election authorizing the Bonds to impose and collect annually in excess of all other taxes an ad valorem tax on all property subject to taxation within the territorial limits of the Issuer sufficient to pay principal of and interest on the Bonds falling due in each year, said tax to be levied and collected by the same officers, in the same manner and at the same time as other taxes are levied and collected within the territorial limits of the Issuer. The proceeds of such tax shall be devoted and applied to the payment of said interest and principal as such shall become due, and without further action on the part of the Governing Authority, the proper officer or officers are hereby authorized and directed, for the year 2006 and each year thereafter, to include in the annual levy of taxes upon, and to extend upon the assessment rolls against, all taxable property situated within the territorial limits of the Issuer, a sum sufficient to pay the principal of, premium, if any, and interest on the Bonds becoming due the ensuing year. The Issuer shall deposit the avails of said tax in the “Debt Service Fund” herein provided for. Principal or interest falling due at any time when the proceeds of said tax levy may not be available shall be paid from other funds of the Governing Authority, and such funds shall be reimbursed from the proceeds of said taxes when said taxes shall have been collected. The Issuer covenants and agrees with the Purchaser and the Owner of the Bonds that so long as any of the Bonds remain outstanding, the Issuer will take no action or fail to take any action which in any way would adversely affect the ability of the Issuer to levy and collect the foregoing tax levy, and the Issuer and its officers will comply with all present and future applicable laws in order to assure that the foregoing taxes will be levied, extended and collected as provided herein and deposited in the Debt Service Fund established in Section 10 to pay the principal of and interest on the Bonds.
SECTION 10. Debt Service Fund. For the payment of the principal of and the interest on the Bonds, the Issuer will establish a special fund, to be held by the regularly designated fiscal agent of the Issuer (the “Debt Service Fund”), into which the Issuer will deposit the proceeds of the aforesaid special tax and accrued interest on the Bonds. The depository for the Debt Service Fund shall transfer from the Debt Service Fund to the Paying Agent at least one (1) business day in advance of each Interest Payment Date, funds fully sufficient to pay promptly the principal and interest falling due on such date.
All moneys deposited with the regularly designated fiscal agent bank or banks of the Issuer or the Paying Agent under the terms of this Resolution shall constitute secured funds for the benefit of the Owners of the Bonds, and shall be secured by said fiduciaries at all times to the full extent thereof in the manner required by law for the securing of deposits of public funds.
At the written request of the Issuer, all or any part of the moneys in the Debt Service Fund shall be invested in accordance with the provisions of the laws of the State of Louisiana, in which event all income derived from such investments shall be added only to the Debt Service Fund.
Immediately upon issuance of the Bonds, moneys paid to the Issuer by the Purchaser as accrued interest, if any, shall be deposited by the Issuer into the Debt Service Fund and utilized to pay interest on the Bonds on the Interest Payment Date next due.
SECTION 11. Application of Proceeds; 2006 Project Fund. The Executive Officers are hereby empowered, authorized and directed to do any and all things necessary and incidental to carry out all of the provisions of this Resolution. The proceeds derived from the sale of the Bonds, other than accrued interest upon the Bonds which shall be deposited into the Debt Service Fund in accordance with the provisions of Section 10 hereof, shall be deposited into a fund separate and apart from the general funds of the Governing Authority, namely, the “School District No. 26 Project Fund” (the “2006 Project Fund”) hereby created, and disbursements shall be made from the 2006 Project Fund solely and only for the purposes for which the Bonds are being issued and for which the principal proceeds are hereby appropriated.
Earnings, if any, upon the invested proceeds of the Bonds within the 2006 Project Fund shall be maintained within the 2006 Project Fund and utilized solely and only for (i) the purposes for which the Bonds are being issued and/or (ii) payment of any required rebate of excess arbitrage profits to the United States Treasury.
SECTION 12. Bonds Legal Obligations. The Bonds shall constitute legal, binding and valid obligations of the Issuer, and shall be the only representations of the indebtedness as herein authorized and created.
SECTION 13. Resolution a Contract. The provisions of this Resolution and the Bonds shall constitute a contract between the Issuer, or its successor, and the Owner or Owners from time to time of the Bonds and any such Owner or Owners may at law or in equity, by suit, action, mandamus or other proceedings, enforce and compel the performance of all duties required to be performed by this Governing Authority or the Issuer as a result of issuing the Bonds.
No material modification or amendment of this Resolution, or of any resolution amendatory hereof or supplemental hereto, may be made without the consent in writing of the Owners of two-thirds (2/3) of the aggregate principal amount of the Bonds then outstanding; provided, however, that no modification or amendment shall permit a change in the maturity or redemption provisions of the Bonds, or a reduction in the rate of interest thereon, or in the amount of the principal obligation thereof, or affecting the obligation of the Issuer to pay the principal of and the interest on the Bonds as the same shall come due from the taxes pledged and dedicated to the payment thereof by this Resolution or reduce the percentage of the Owners required to consent to any material modification or amendment of this Resolution, without the consent of all of the Owners of the Bonds then outstanding.
SECTION 14. Recital of Regularity. This Governing Authority having investigated the regularity of the proceedings had in connection with issuance of the Bonds herein authorized and having determined the same to be regular, the Bonds shall contain the following recital, to-wit:
“It is certified that this Bond is authorized by and is issued in conformity with the requirements of the Constitution and statutes of the State of Louisiana.”
SECTION 15. Effect of Registration. The Issuer, the Paying Agent, and any agent of either of them may treat the Owner in whose name any Bond is registered as the Owner of such Bond for the purpose of receiving payment of the principal (and redemption price) of and interest on such Bond and for all other purposes whatsoever, and to the extent permitted by law, neither the Issuer, the Paying Agent, nor any agent of either of them shall be affected by notice to the contrary.
SECTION 16. Notices to Owners. Wherever this Resolution provides for notice to Owners of Bonds of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first class postage prepaid, to each Owner of such Bonds, at the address of such Owner as it appears in the Bond Register. In any case where notice to Owners of Bonds is given by mail, neither the failure to mail such notice to any particular Owner of Bonds, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Resolution provides for notice in any manner, such notice may be waived in writing by the Owner or Owners entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Owners shall be filed with the Paying Agent, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.
SECTION 17. Cancellation of Bonds. All Bonds surrendered for payment, redemption, transfer, exchange or replacement, if surrendered to the Paying Agent, shall be promptly cancelled by it and, if surrendered to the Issuer, shall be delivered to the Paying Agent and, if not already cancelled, shall be promptly cancelled by the Paying Agent. The Issuer may at any time deliver to the Paying Agent for cancellation any Bonds previously registered and delivered which the Issuer may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Paying Agent. All cancelled Bonds held by the Paying Agent shall be disposed of as directed in writing by the Issuer.
SECTION 18. Mutilated, Destroyed, Lost or Stolen Bonds. If (1) any mutilated Bond is surrendered to the Paying Agent, or the Issuer and the Paying Agent receives evidence to its, satisfaction of the destruction, loss or theft of any Bond, and (2) there is delivered to the Issuer and the Paying Agent such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Issuer or the Paying Agent that such Bond has been acquired by a bona fide purchaser, the Issuer shall, under the authority of Part XI of Chapter 4 of Title 39 of the Louisiana Revised Statutes of 1950, as amended, execute, and upon its request the Paying Agent shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Bond, a new Bond of the same maturity and of like tenor, interest rate and principal amount, bearing a number not contemporaneously outstandi