The following is provided as an update to the investment of bond proceeds. The question posed to staff regards the USD 475 Investment Services Request for Proposal dated 19 January 2018. Staff received this request for clarification from a potential investor and are publishing it out of a desire to remain transparent.
Question: Can you please clarify in regards to the bond proceeds being used to pay for the construction of the new schools, are those funds to follow the same statute the HIA funds are or would there be a separate statute given there is a substantially shorter time frame for this money?
Response: Please review USD475 Board of Education policy section DFE. The section that discusses the investments allowed for USD475 begins on page 88 and ends on page 90. The funding is considered a bond proceed and is considered the same, for investment purposes, as the escrowed Heavily Impact Aid (HIA) funding. The funds will be used to pay for the expenses related to the construction of the high school over the next (estimated) 36 months. A schedule of draws will be identified once a Construction Risk Manager is hired and the design is completed.