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School District Budget, Audit, Bonds and Other Financial Information
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Eric Davies, Business Manager |
Pat Montoya, Interim Superintendent |
David Huey, Treasurer of the Board |
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BUDGET |
AUDITS |
BONDS |
While the passage of two mill levy overrides and a bond by voters in November 2007 has significantly helped the district, frugal measures must still be in place as enrollment has declined, mainly due to work slowdowns in the gas fields. The board generously granted all employees a 5% across the board raise in 2008-2009.
Preliminary budget for 2008-2009:
The Primero RE-2 Board of Education adopted a preliminary budget for 2007-2008 as required by statute in June 2007. The Board finalized the 2007-2008 budget in October 2007 in compliance with state law. Major high-lights of the budget for 2007-2008 include $380,000 of reductions in order to balance the operational fund. Major reductions included about $100,000 in staffing savings (accomplished via attrition and retirements without the need for lay-offs), switching health insurance carriers from Rocky Mountain Health Plans to CEBT-HRH (formerly the Urman Company), saving about $63,000, applying for e-Rate savings on tele-communications, saving about $15,000, freezing salaries for staff, saving about $30,000, delaying purchase of a second bus and other curriculum items, saving about $85,000, and other cuts throughout every category within the budget.
The District was very pleased that voters recognized the financial needs of the school district and approved three financial issues on the November 2007 ballot. The three issues included a $350,000 per year general fund mill levy override, a $140,000 transportation fund override, and a $10.7 million bond. The cost of these three issues to taxpayers is about $20.00 per year for every $50,000 of residential property owned.
Download a copy of the 2007-2008 Budget here, adopted by the Board of Education in October 2007:
The District's independent auditor is Dixon - Waller & Company, Inc., of Trinidad, Colorado.
The District sold $10.7 million of non-call municipal bonds on December 6, 2007 with a 10-year maturity to support a major building renovation, addition and improvement project. The District's investment bank and broker, George K. Baum & Company of Denver, underwrote and sold the bonds. Board Treasurer, David Huey, and former Superintendent Gerald Gabbard, attended and monitored the bond sale on behalf of the District. All but about $400,000 of the bonds were sold in two hours on December 6 at competive rates for both investors and for repayment by the district (around 3.8%). George K. Baum underwrote the remaining bonds and sold them in the next few days. George K. Baum also sold the bonds at a premium and was able to secure the full $10.7 million for the District's building project after paying fees such as underwriting costs, bond counsel, rating agency fees, bond insurance, filing fees, etc. The premium generated about $500,000 of additional revenue for the building project at no cost to taxpayers.
The District's bond counsel is Kutak Rock, LLP, of Denver.
The District received a AAA credit rating from Standard & Poor's by having bond insurance from Financial Security Assurance, Inc. (FSA). This raised the District's credit rating from the Colorado State Intercept Program rating of AA- to AAA, thus attracting some investors who only invest in AAA rated bonds.
The Board of Education decided in its regular meeting on December 18, 2007, to invest all of the bond proceeds with First National Bank (FNB) in Trinidad. First National Bank only invests in AAA rated securities and the Board appreciated FNB's conservative investment policies. Initially, these funds were placed in an interest-earning mutual fund account managed solely by FNB. In January 2008, the district's financial team will meet again with FNB representatives to invest some of the bond proceeds in laddered Certificates of Deposit. FNB will waive any fees associated with investing these funds. The bond proceeds were wired from the American National Bank in Denver to First National Bank on December 19, 2007.
See progress on the building project by clicking here.
BOND REVENUE
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Investment of Bond Funds at First National Bank, Trinidad, Colorado - Beginning February 12, 2008 |
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Investment |
Beginning Balance |
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Invested in mutual fund only @ 3.00% APY (12/19/07 - 2/12/08): |
$11,240,000.00 (includes $10.7 million bond plus premiums) |
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Invested in mutual fund - variable rate of interest 3.00% APY - February 12, 2008 2.75% APY - April 1, 2008 1.75% APY - July 1, 2008 1.50% APY - August 1, 2008 1.00% APY - February 1, 2009 |
$6,000,000.00 |
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Invested in 6 - 8 month CDs @ 4.29% APY |
$3,750,000.00 |
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Invested in 18-month CD @ 4.35% APY (contingency fund) |
$1,500,000.00 |
NOVEMBER 2008: $200,000 matching grant received from the Department of Local Affairs (DOLA) towards design/construction of Community Center, district storage and asphalt paving project
INTEREST EARNED ON INVESTED BOND PROCEEDS
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Interest Earned on Bonds - Invested in Mutual Funds and Certificates of Deposit through First National Bank in Trinidad, Colorado (interest shown is only for the mutual fund account) |
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Month |
Interest Earned for Month |
Interest Earned to Date |
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December 19 - 31, 2007 |
$11,813.06 |
$11,813.06 |
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January 2008 |
$28,199.31 |
$40,012.37 |
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February 2008 |
$19,152.79 |
$59,165.16 |
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March 2008 |
$32,242.50 |
$91,407.66 |
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April 2008 |
$33,089.65 |
$124,497.31 |
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May 2008 |
$25,578.88 |
$153,076.19 |
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June 2008 |
$27,351.58 |
$180,427.77 |
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July 2008 |
$24,931.45 |
$205,359.22 |
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August 2008 |
$22,831.05 |
$228,190.27 |
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September 2008 |
$16,675.21 |
$244,865.48 |
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October 2008 |
$14,913.11 |
$259,778.59 |
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November 2008 |
$13,354.70 |
$273,133.29 |
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December 2008 |
$9,942.09 |
$283,075.38 |
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January 2009 |
$8,901.39 |
$291,976.77 |
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All interest is credited to the district's contingency fund. Beginning balance: $1.5 million (created 2/12/08). |
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Expenses Paid to Date from Bond Funds |
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Date |
Vendor/Contractor/Payee & Purpose |
Amount Approved |
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Summer 2007 |
NorthStar Engineering/Site Survey Parts 1 & 2 |
$13,500.00 |
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Summer 2007 |
CTL Thompson/Soils Testing Part 1 |
$3,000.00 |
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Fall 2007 |
Colorado/PEL Test for Wastewater Permit |
$2,000.00 |
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Summer 2008 |
All Phase Environmental/Mold Testing |
$4,500.00 |
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December 2007 - March 2008 |
All Phase Environmental/Radon Testing |
$3,300.00 |
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December 2007 |
All Phase Environmental/Asbestos Testing |
$1,007.00 |
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December 2007 |
American Bank/Wire Transfer Fee of Bonds |
$150.00 |
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January 2008 |
Garland/Engineered Drawings for Roof |
$4,500.00 |
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January 2008 |
Trinidad Abtract & Title/Title Work |
$350.00 |
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January 2008 - July 2009 |
Owner's Representative |
$118,000.00 |
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February 2008 |
Neenan/Design Fees Part 1 |
$151,500.00 |
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February 2008 |
U-Haul/Boxes & Tape |
$180.00 |
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March 2008 |
Neenan/Design Fees Part 2 |
$121,238.85 |
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March 2008 |
Wal-Mart/Tape |
$150.00 |
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March 2008 |
NorthStar Engineering/Site Survey Part 3 |
$5,937.50 |
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March 2008 |
Bill Reiner/Modular Move |
$7,500.00 |
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March 2008 |
U-Haul/Truck Rental |
$206.21 |
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March 2008 |
Grand Rental Station/Pallet Jack |
$25.00 |
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March 2008 |
Rightway/Dumpsters |
$600.00 |
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March 2008 |
Mobil Mini/Storage Trailers |
$1,200.00 |
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April 2008 |
CTL Thompson/Load Bearing Tests |
$3,900.00 |
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April 2008 |
NorthStar/Site Survey Part 4 |
$1,957.00 |
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April 2008 |
Hazardous Waste, Inc./Phase 1 Asbestos Abatement |
$98,900.00 |
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May 2008 |
Colorado Water Quality Control Division/Permit WTTP |
$4,900.00 |
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May 2008 |
U-Haul/Moving Supplies |
$193.16 |
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May 2008 |
Terry Land Surveying/Finish Land Surveys |
$2,286.50 |
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May 2008 |
Security Systems Plus/Moving Video Cameras |
$400.00 |
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May 2008 |
Trinidad Self Storage/Boxes |
$740.00 |
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May 2008 |
Fre-Comm/Move-Set Up Internet & Phones |
$635.00 |
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May 2008 |
NorthStar Engineering/Site Survey Part 5 |
$4,148.00 |
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May 2008 |
Diamond T/Demolition of IA Building |
$12,142.35 |
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May 2008 |
The Neenan Company-Design Fees Part 3 |
$165,000.00 |
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June 2008 |
The Neenan Company -Design/Construction |
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June 2008 |
Morgan (moving preschool shed) |
$400.00 |
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June 2008 |
Hazardous Waste/Asbestos Abatement Phase 2 |
$48,030.00 |
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June 2008 |
Progressive Roofing/Payment 1 |
$50,972.85 |
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June 2008 |
Water Works Plus/Sprinkler Work - Baseball Field |
$217.32 |
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June 2008 |
Water Works Plus/Irrigation-Sprinkler Work - Football Field |
$4,078.39 |
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June 2008 |
Fre-Com/Remove alarm and master clock |
$275.00 |
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June 2008 |
CTL Thompson/Create and review reports |
$340.00 |
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June 2008 |
Purgatoire Valley Construction/Payment 1 - Houses |
$85,917.20 |
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June 2008 |
Hazardous Waste/Asbestos Abatement Phase 3 |
$45,962.00 |
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July 2008 |
The Neenan Company/Construction |
$959,988.64 |
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July 2008 |
Water Works Plus/Irrigation-Sprinklers |
$2,526.16 |
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July 2008 |
D&L Lawn Jockeys/Roll-offs |
$1,100.00 |
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July 2008 |
Diamond T - Demo |
$26,262.65 |
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July 2008 |
Progressive Roofing |
$27,509.15 |
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July 2008 |
CTL Thompson/Soils-Compaction Tests |
$3,840.00 |
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July 2008 |
RAI - Tree Removal |
$6,900.00 |
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July 2008 |
Mobile Mini LLC (storage units) |
$249.30 |
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July 2008 |
Progressive Roofing |
$247,582.35 |
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August 2008 |
The Neenan Company - Construction |
$1,372,923.62 |
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August 2008 |
Progressive Roofing |
$336,421.01 |
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August 2008 |
Fre-Com |
$770.00 |
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August 2008 |
Mobile Mini LLC (storage units) |
$266.04 |
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August 2008 |
CTL Thomspon/Compaction tests |
$7,962.50 |
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August 2008 |
Water Works Plus, LLC (irrigation/pumps/drainage) |
$3,905.81 |
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August 2008 |
Tiger Direct (technology upgrades-computers, LCD projectors) |
$1,823.19 |
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August 2008 |
Roto Rooter (fix plugged sink and long drain line) |
$1,200.00 |
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September 2008 |
Diamond T |
$1,932.50 |
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September 2008 |
Fre-Com |
$4,615.00 |
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September 2008 |
Security Systems, Plus |
$2,112.50 |
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September 2008 |
Frashuer Painting |
$4,350.00 |
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September 2008 |
The Neenan Company |
$1,604,203.00 |
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September 2008 |
Bear Saver |
$2,433.00 |
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September 2008 |
Mobile Mini, LLC |
$266.04 |
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September 2008 |
Tiger Direct |
$155.38 |
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September 2008 |
U-Haul |
$904.58 |
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September 2008 |
Walsenburg Sand & Gravel |
$27,750.00 |
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October 2008 |
CT Bueno Construction |
$15,546.00 |
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October 2008 |
Diamond T Enterprises |
$10,658.75 |
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October 2008 |
Fre-Com |
$25,818.00 |
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October 2008 |
Low Buck Storage |
$85.00 |
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October 2008 |
S & S Services |
$1,120.00 |
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October 2008 |
Terry Land Survey |
$891.50 |
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October 2008 |
The Neenan Company |
$1,025,537.00 |
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November 2008 |
CT Bueno Construction |
$4,230.00 |
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November 2008 |
Mobile Mini, LLC |
$866.60 |
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November 2008 |
Security Systems, Plus |
$5,855.00 |
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November 2008 |
Water Works, Plus LLC |
$18,093.94 |
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November 2008 |
CT Bueno Construction |
$2,465.00 |
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November 2008 |
CTL Thompson |
$875.00 |
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November 2008 |
Pro-Ex Fire Safety Equipment |
$653.85 |
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November 2008 |
Alphabet Signs |
$1,185.08 |
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November 2008 |
Low Buck Storage |
$85.00 |
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November 2008 |
Mobile Mini, LLC |
$116.28 |
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November 2008 |
Tiger Direct |
$549.99 |
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November 2008 |
U-Haul |
$18.00 |
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November 2008 |
Worthington Direct |
$856.80 |
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December 2008 |
Purgatoire Valley Construction, Inc. |
$193,311.45 |
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December 2008 |
The Neenan Company |
$429,285.03 |
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December 2008 |
Al's Gas Service, Inc. |
$2,588.67 |
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December 2008 |
CTL Thompson |
$8,130.00 |
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December 2008 |
Fre-Com |
$3,488.84 |
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December 2008 |
Leone Sand & Gravel |
$1,608.06 |
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December 2008 |
Low Buck Storage |
$180.00 |
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December 2008 |
Mobile Mini, LLC |
$116.28 |
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December 2008 |
PlaqueMaker.com |
$712.00 |
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December 2008 |
The Neenan Company |
$765,714.66 |
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December 2008 |
Water Works, Plus LLC |
$832.88 |
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January 2009 |
A & A Welding |
$8,628.58 |
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January 2009 |
D & L Lawn Jockeys |
$4,950.00 |
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January 2009 |
Government & Educational Furnishings |
$49,296.71 |
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January 2009 |
Leone Sand & Gravel |
$1,565.60 |
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January 2009 |
Purgatoire Valley Construction, Inc. |
$77,324.58 |
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January 2009 |
Sportsworld |
$2,822.57 |
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January 2009 |
Mobile Mini, LLC |
$232.56 |
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January 2009 |
U-Haul |
$179.33 |
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January 2009 |
Purgatoire Valley Construction, Inc. |
$219,092.21 |
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February 2009 |
Sportsworld |
$3,272.57 |
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TOTAL EXPENDITURES TO DATE: |
($8,549,331.20) |
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Bond amount remaining: |
$2,641,315.80 |
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The District files its annual disclosure requirements for the bonds with the Municipal Disclosure Council of Texas via its website, www.disclosureUSA.org. The CUSIP number associated with Primero's bonds which mature on December 19, 2017, is 74163B AK9.
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