[00:00:01]
DATE IS 22.THIS IS A BUDGET COMMITTEE WORK TIME BEING HELD AS ISD CONFERENCE ROOM, SECOND FLOOR.
THIS MEETING HAS THE POSTED THE COURT OF THE MEETING ACT.
WE DO HAVE A FORMER BOARD MEMBER, SO I WILL CALL RO MS. JONES.
PRESENT ABSENT IS TRUSTEE WOODFIELD.
WE KNOW HOW THE FLOOR FOR A MOMENT.
YEAH, THE FLOOR FOR A MOMENT FOR TURN IT OVER TO TODD.
UM, WE JUST SHARED THAT, YOU KNOW, UM, THIS PAST YEAR AS SUPERINTENDENT, I'VE HAD THE PLEASURE OF WORKING WITH CABINET.
UM, THAT, THAT BRINGS US HERE TODAY FOR OUR BUDGET.
UM, WORKING COLLABORATIVELY WITH THEM TO REFINE AND PROVIDE A VARIETY OF DIFFERENT RESOURCES, UM, THAT WILL HOPEFULLY CONTINUOUSLY IMPROVE UPON OUR STUDENT, UH, TEACHING LEARNING.
UM, ALSO TO CONTINUE TO FEEL, FACILITATE INNOVATION, UM, AND PROMOTE, UM, AUTHENTIC AND RELEVANT LEARNING FOR OUR STUDENTS.
AND I THINK YOU SAW SOME OF THOSE OUTCOMES RECENTLY AS WE ARE IN THE BEST SOUTHWEST, RIGHT? ONE, NUMBER ONE IN BEST, SOUTHWEST IN THE COUNTY ITSELF.
RANK SIX FOR FINISHING UP WITH A TOTAL OF 88, WHICH IS A B, UM, FOR OUR, UM, STUDENT OUTCOMES AS A DISTRICT, UM, TODAY, UH, WE HAVE OUR FIDUCIARY RESPONSIBILITIES THAT THE BOARD AND MYSELF AS SUPERINTENDENT CABINET, UH, TO CONTINUOUSLY LOOK FOR WAYS IN WHICH WE CAN SUPPORT OUR STUDENTS AND OUR STAFF.
AGAIN, UM, I WILL SAY THIS WITH, WITH AN ASPECT, IF YOU WILL, THAT THE ONGOING, UM, PANDEMIC, AS WE KNEW LAST YEAR, LAST FALL, WE DIDN'T EXPECT ANY SURGES, BUT WE NEVER KNOW, RIGHT? THAT WILL COME UP THIS FALL.
SO WITH THAT UNKNOWN, UM, ITEM, YOU KNOW, THE, THE INCREASE IN MONTHLY POPS, WHICH WE'RE ALSO DEALING WITH ON THE POTENTIAL UNFUNDED MANDATES THAT COME ALONG FROM THE STATE AND THE LOCALITY, IF YOU WILL, WE'LL, UH, CONTINUE TO CAREFULLY MONITOR AND, UM, REEVALUATE THINGS THROUGHOUT THE YEAR.
SO, WITH THAT, TODD HAS A DRAFT OF OUR BUDGET AND INFORMATION TO SHARE TODAY.
AND, UH, MR. GARRISON, I SHOULD PROBABLY CALL YOU BY YOUR LAST NAME.
SO I JUST WANNA SAY I NEED Y'ALL TO PROJECT, BECAUSE WE'RE ACTUALLY AUDIO RECORDING TODAY, SO WHENEVER YOU HAVE A QUESTION ON A STATE THING, JUST PLEASE PROJECT SO THE RECORDER CAN PICK A TEACHER VOICE IN A LONG TIME.
UH, GOOD EVENING, PRESIDENT BOARD TRUSTEES, OUR GUEST.
UH, IT'S MY PLEASURE TONIGHT TO WELCOME YOU TO THE BUDGET COMMITTEE MEETING.
UH, WE DO HAVE GUESTS HERE TO TALK ABOUT BOND PRESENTATION.
I'LL GET STARTED WITH JUST A FEW, UH, QUICK NOTES AND THEN WE'LL, WE'LL GO RIGHT INTO THE DEBT SERVICE SIDE OF OUR, UH, TRY TO MAXIMIZE THE USE OF THEIR TIME.
UH, WE'LL OPEN WITH JUST THE FISCAL ROLE OF THE BOARD, UH, FEEL LIKE IT'S IMPORTANT TO SET THOSE GUIDELINES AND JUST, UH, OUTLINE THAT, THAT THE FIDUCIARY RESPONSIBILITIES OF THE, OF THE BOARD.
AND THESE ARE, UH, FROM TASB RECOMMENDATIONS AS FAR AS WE'LL WORK TOGETHER TO ESTABLISH A, A CALENDAR, UM, THAT WE'LL MEET, UH, AT LEAST QUARTERLY.
UH, AND, AND AGAIN, IT'S YOUR PLEASURE TO, TO REVIEW THE BOARD, UH, UH, TO BUDGET FOR THE DISTRICT.
UH, WE'RE GONNA LOOK AT THE DIFFERENT BUDGET ASSUMPTIONS THAT, UH, THAT DRIVE THE, UH, THE BUDGET ITSELF.
UH, WE'RE GONNA HOLD THE REQUIRED PUBLIC MEETINGS, UH, ADOPT A BUDGET AND A TAX RATE.
AND THROUGHOUT THE YEAR, WE'LL HAVE MONTHLY, YOU KNOW, EVERY MONTH WE'LL SUBMIT REPORTS FOR YOU, REVIEW, UH, KIND OF TRACK OUR PROGRESS, UH, ON THE FINANCES AS WE GO THROUGH THE YEAR.
AND THEN YOUR OTHER BIG ROLE IS TO HIRE AN INDEPENDENT AUDITOR THAT WE WILL APPROVE, UH, AUDIT OUR, OUR FUNDS FOR YOUR APPROVAL.
WE DO THAT ANNUAL, UH, JUST BRIEFLY, WE'LL GO, UH, KIND OF TAKE US BACK TO KIND OF THE, UH, MY, THIS GIVES US BACK TO WHEN I STARTED HERE, UH, THE END OF JUNE, FIRST PART OF JULY.
UH, THIS WAS A, THIS IS A SNIPPET FROM THE CALENDAR, UH, FOR THE PROPOSED TAX RATE AND BUDGET CALENDAR.
UH, THE MAIN THINGS TO POINT OUT ON HERE ARE, UH, THAT WE GET OUR CERTIFIED, UH, VALUES FROM THE, UH, CERTIFIED APPRAISAL DISTRICT ON JULY 25TH.
UH, SHORTLY AFTER THAT, WE GET IT.
OUR TAX RATE FROM TEA, UH, THIS SAYS AUGUST 5TH, SO IT'S USUALLY THE FIRST WEEK OF AUGUST.
UM, AND THEN WE, WE WORK THROUGH AUGUST TO, UH, PROPOSE A TAX RATE PUBLISH THAT, DISCUSS THE BUDGET, WHICH WE'RE GONNA DO TONIGHT.
AND THEN WE ARE REQUIRED TO ADOPT THE BUDGET BY AUGUST 31ST, WHICH, UH, INDICATED HERE IN THIS PUBLICATION.
WE'LL, THIS, THIS WILL GO TO PUBLICATION TOMORROW, RUNNING THE PAPER.
UH, WE'LL HOLD OUR, UH, WE'VE GOT THE BUDGET MEETING MEETING TONIGHT, AND THEN WE'LL HAVE OUR MEETING TO
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ADOPT THE BUDGET AND TAX RATE ON AUGUST 30TH.UM, THIS IS JUST A HISTORICAL, UH, TAX VALUE HISTORY.
YOU CAN SEE, I JUST, I JUST INCLUDED BACK TO 2017.
UH, YOU CAN SEE THOSE VALUES THERE.
UM, THE VALUES ON THE LEFT SIDE OF THE CERTIFIED VALUES FROM THE CERTIFIED, UH, FROM THE COUNTY APPRAISAL DISTRICT.
UH, AND YOU CAN SEE THAT WE'VE NEARLY DOUBLED IN VALUE, UH, JUST, JUST SINCE 2017, 18 TO CURRENT.
UH, AND YOU'VE GOT THE PERCENT CHANGE FOR THE CERTIFIED VALUES.
THE COMPTROLLER VALUE ACTUALLY COMES OUT IN JANUARY THAT COMES OUT FROM THE COMPTROLLER.
UM, AND YOU CAN SEE THAT THOSE ARE A LITTLE BIT LESS, THAT IS DUE TO, UH, THE, THE, UH, AMOUNT OF PROTESTED TAXES THAT ARE HELD OUT.
UH, THAT'S WHY YOU SEE THAT A LITTLE BIT LESS.
UH, WE HAVE TO HIT A CONFIDENCE INTERVAL WITH THOSE CERTIFIED VALUES.
BUT YOU SEE, THEY'RE PRETTY CLOSE.
I'VE BEEN IN DISTRICTS WHERE THAT'S NOT THE CASE, AND SO THIS NEEDS TO BE PRETTY SOLID.
UH, THE ONE OUTLIER THERE IS AT THE 13%, BUT THAT WAS THE COVID YEAR AND THERE WAS A, A, A SIGNIFICANT NUMBER OF PROCESSED VALUES AND THAT'S WHAT CAUSED THAT THERE.
THIS IS GONNA GET US INTO THE DEBT SERVICE SIDE, AND I'M GONNA LET YOU TAKE THE HERE AND GO OVER YOUR OH, YEAH, GOT YOU.
AND THIS, I'M WHENEVER YOU, FIRST OF ALL, GOOD EVENING.
IT'S A PLEASURE TO SEE YOU AGAIN.
UH, BEFORE I WANT TO MOVE FORWARD, I WANT TO INTRODUCE MY COLLEAGUE, ALLISON LONG.
UH, SHE'S THE ONE WHO DOES A LOT OF THIS STUFF, SO I WANTED TO BRING HER ALONG.
UH, BEFORE WE GO INTO SORT OF, YOU KNOW, TAX RATE MANAGEMENT AND THINGS OF THAT NATURE, WE WANT TO REMIND YOU HOW THE DISTRICT HAS MANAGED ITS DEBT PORTFOLIO THROUGH A COMBINATION OF REFUNDING YOUR BONDS AT A LOWER INTEREST RATE AND OR PREPAYING YOUR BONDS PRIOR TO FINAL MATURITY.
THE DISTRICT HAS SAVED TAXPAYERS MORE THAN 31.7 MILLION SINCE 2006.
SO THAT COMBINATION IS, THE DISTRICT HAS REFINANCED ROUGHLY 138 MILLION, UH, OF ITS DEBT AT A LOWER INTEREST RATE, WHICH GENERATED 27.5 MILLION IN SAVINGS.
BUT MORE IMPORTANTLY, THE LAST COUPLE YEARS, THE DISTRICT HAS BEEN ABLE TO PAY OFF OVER 4.2 MILLION OF BONDS, WHICH SAVES THE INTEREST COST OF OVER MORE THAN 4 MILLION.
SO COLLECTIVELY, UH, 31.7 MILLION IN TERMS OF INTEREST RATES, YOU WANT TO PULL UP JUST A LITTLE BIT MORE.
EACH YEAR'S A BOARD, YOU ADOPT TWO DIFFERENT TAX RATES, YOUR MAINTENANCE AND OPERATIONS TAX RATE, WHICH LENDS THE DAY TO DAY OPERATIONS OF THE SCHOOL DISTRICT AND YOUR INTEREST IN SINKING FUND, UH, WHICH IS USED ONLY TO PAY YOUR ANNUAL BOND REQUIREMENTS FROM VOTER APPROVED BONDS.
SO TODD'S LAST, UH, SLIDE SHOWED.
SO, UH, HE SHOWED YOU SORT OF THE TAX RATES.
UM, HISTORICALLY, 2016 17, YOU WERE IN A DOLLAR 54 COMBINED HELD TAX RATE.
THIS PAST YEAR, YEAR A DOLLAR 47 0 4, UH, IS BROKEN OUT FROM AN INTEREST IN SEEKING FUNDS STANDPOINT AT 43.75 CENTS AND A LITTLE MORE THAN A DOLLAR THREE.
SO IN THE LAST FOUR YEARS, YOUR TOTAL TAX RATE HAS GONE DOWN BY ALMOST 7 CENTS.
BASED UPON THE GROWTH IN YOUR VALUES, THE M AND O PORTION OF YOUR TAX RATE IS PROJECTED TO GO DOWN 9 CENTS NEXT YEAR.
SO ARE WE GONNA GET A COPY OF THIS SLIDE? YES, WE CAN.
UH, IN TERMS OF HOME VALUES, UM, IF YOU LOOK AT WHAT IT MEANS FOR AN AVERAGE TAX PAYER WITHIN THE DISTRICT, BACK IN 2016 17 SCHOOL YEAR, THE AVERAGE TAXABLE HOME VALUE WITHIN THE DISTRICT WAS 85,000.
THIS CURRENT YEAR IT'S 151,000.
BUT FOR THE 2020 2 23 SCHOOL YEAR, IT'S PROJECTED TO BE ALMOST 174,000.
SO ESSENTIALLY OVER THE LAST SIX YEARS, THE AVERAGE HOME VALUE WITHIN THE DISTRICT, IT, OKAY, WELL IT'S NOT SURPRISING GIVEN THE GROWTH
[00:10:01]
IN YOUR VALUES THAT THE GROWTH IN THE ACTUAL TAXES HAS ALSO GONE UP, RIGHT? SO FOR THE LAST FIVE YEARS, THE AVERAGE HOMEOWNER WITHIN THE DISTRICT HAS SEEN THEIR TAX BILL GO UP BY OVER $900 TO KEEP IT TO MIND.THAT'S BECAUSE THE VALUES IN YOUR DISTRICT ON YOUR HOMES HAVE GONE UP BY MORE THAN THAT.
OKAY? THIS GIVES A LOOK AT YOUR CURRENT DEBT SERVICE PAYMENTS AS THEY STAND RIGHT NOW.
UH, YOUR BONDS ARE REPAID OVER A 23 YEAR PERIOD.
YOU HAVE SEVEN SERIES OF BONDS OUTSTANDING, UH, ROUGHLY 176 MILLION OF DEBT.
UM, THE BONDS ARE BASICALLY REPAID AND LEVEL ANNUAL INSTALLMENTS UNTIL YOU GET TO ABOUT 2030 5 36 WHEN THERE IS A STEP DOWN THAT WAS DESIGNED TO ACCOMMODATE ADDITIONAL BOND CAPACITY.
SHOULD YOU HAVE A BOND ELECTION IN THE FUTURE, ONE OF THE OPTIONS AVAILABLE TO THE DISTRICT, OH, BY THE WAY I SKIPPED OVER THIS, BUT I PROBABLY SHOULD GO BACK TO IT.
DISTRICT IS CURRENTLY RATED A ONE AT MOODY'S INVESTOR SERVICE AND A AT S AND P GLOBAL RATINGS.
I WILL TELL YOU WHY THOSE ARE EXCELLENT RATINGS.
IT'S BECAUSE THE DISTRICT HAS NOT DONE THE BOND DEAL SINCE 2007.
OTHERWISE, IF WE WENT TO THE RATING AGENCIES RIGHT NOW, I AM QUITE CONFIDENT THAT YOU WOULD RECEIVE SOME TYPE OF RATING INCREASE.
BUT AS WE GO IN SELL BONDS, YOU ALWAYS APPLY FOR THE PERMIT, SCHOOL FUND GUARANTEE, AND YOU GET YOUR AAA RATING FROM THE PERMIT SCHOOL FUND GUARANTEE.
SO OUT OF THE 175.8 MILLION, YOU HAVE OUTSTANDING ROUGHLY 163 MILLION AS CULLABLE PRIOR TO FINAL MATURITY.
YOU COULD SEE IN THE GREEN COLUMN THE CALL DATES FOR EACH ONE OF THESE OUTSTANDING BOND ISSUES.
UH, THE PRINCIPLE AMOUNT, WHAT'S CALLABLE, AND AT THE VERY LAST SORT OF WHAT THE COUPON IS ON THAT INDIVIDUAL SERIES OF BONDS.
UM, RIGHT NOW, WE WOULD TELL YOU BASED UPON PREVAILING MARKET INTEREST RATES, THERE IS NOT AN OPPORTUNITY FOR THE DISTRICT TO REFINANCE ANY OF ITS DEBT AT A LOWER INTEREST RATE.
UH, YOU DO HAVE AN OPTION COMING UP A LITTLE BIT LATER THIS YEAR ON THE 2013 BONDS THAT ARE CALLABLE NEXT FEBRUARY.
UH, BUT RIGHT NOW NOTHING PRESENTS ITSELF TO REFINANCE THE SAVINGS.
THAT SAID, AS THE DISTRICT HAS DONE IN THE LAST COUPLE YEARS, YOU CAN PREPAY DEBT PRIOR TO FILING MATURITY AND SAVE MONEY.
I'LL GET TO THAT HERE IN A SECOND.
SO THE NEXT FEW PAGES ARE ACTUAL EACH INDIVIDUAL BOND SERIES BY INDIVIDUAL MATURITY.
SO YOU CAN SEE THE PRINCIPLE AMOUNT AND THE COUPON, THE YIELD AND THE CALL DATE.
SO WHEN, HISTORICALLY WHEN THE DISTRICT HAS PREPAID ITS DEBT, WE HAVE PREPAID THESE LONG BONDS OUT HERE.
THE REASON WE'VE PREPAID THOSE IS THOSE ARE CALLED BONDS, ANY INTEREST PAYMENT DATE RIGHT NOW, IT'S ALSO THE LONGEST PORTION OF YOUR DEBT PORTFOLIO, WHICH GIVES YOU THE MOST INTEREST COST SAVINGS BY PREPAYING THE DEBT AND MAXIMIZES THE VALUE TO THE TAXPAYER WHEN WE REDUCE.
SO THIS IS THE NEXT FEW SLIDES.
I'M NOT GONNA GO GET THROUGH EACH INDIVIDUAL ONE.
WE'LL SEND YOU A COPY OF THE SLIDE DECK AND IF YOU HAVE ANY QUESTIONS AS YOU GO THROUGH THAT, WE'LL BE HAPPY TO ANSWER THAT.
BUT I'M GONNA GO THROUGH THE NEXT COUPLE SLIDES HERE.
SO AS YOU'RE DETERMINING YOUR TAX RATE FOR NEXT YEAR IN YOUR BOND CAPACITY, YOUR INS BUDGET, UH, THE BIGGEST DRIVER IS THE DISTRICT'S TAX BASE, CUZ THAT IS WHAT GENERATES ANNUAL REVENUES FROM YOUR TAX RATE FOR 2020 2 23.
SO NEXT SCHOOL YEAR WAR VALUE META FROZEN IS ROUGHLY 4.4 BILLION.
OKAY? AS YOU CAN SEE ON THE GRAPH IN THE BOTTOM RIGHT HAND CORNER, UH, THAT MEANS YOUR VALUES, THE VALUE OF THE DISTRICT'S TAX BASE WENT UP 730 MILLION PAST YEAR ALMOST 20%.
THAT'S A LARGE INCREASE, RIGHT?
SO WHEN WE LOOK AT IT FROM A HISTORICAL STANDPOINT, OVER THE LAST 10 YEARS, ON AVERAGE, UH, DISTRICT'S TAX BASE HAS GONE UP 293 MILLION OR YEAR OVER YEAR GROWTH OF 11.6% OVER THE LAST FIVE YEARS.
IF YOU CAN SEE, IT'S BEEN MORE DRAMATIC AVERAGE GROWTH OF 423.6 MILLION, OR YEAR OVER YEAR GROWTH OF OVER 14%.
SO WHAT DOES THIS MEAN IN TERMS OF DEBT MANAGEMENT? ONE OF THE OPTIONS YOU HAVE UNDER STATE LAW IS TO USE CURRENT YEAR DEBT OR CURRENT YEAR TAXES TO PAY OFF
[00:15:01]
EXISTING BONDS.SO THIS GIVES SORT OF A PROFORMA ON THE RIGHT HAND SIDE HERE OF YOUR EXISTING OR YOUR DEBT SERVICE BUDGET FOR THE CURRENT YEAR.
OKAY? AT A 43.75 INS TAX RATE, WHICH IS YOUR EXISTING INS TAX RATE, YOU'RE ANTICIPATED TO GENERATE REVENUES OF ROUGHLY 19.2 MILLION.
YOU OR BOND PAYMENTS ARE ONLY 13.9 MILLION.
OKAY? SO 19.2 MILLION OF REVENUE, 13.8 MILLION IN TERMS OF ACTUAL BOND PAYMENTS.
BY MAINTAINING YOUR CURRENT YEAR TAX RATE, THE DISTRICT CAN ACTUALLY PAY OFF $5.3 MILLION OF BONDS AND REDUCE ITS FUTURE INTEREST COSTS, NOT ONLY TO THE DISTRICT AND TAX BUYERS TAXPAYERS BY AN ADDITIONAL 4,530,000 BEFORE YOU GO TO THE NEXT SCREEN.
I HATE THAT INTERRUPT, BUT, UM, I, AND I KNOW WE ARE GETTING READY TO GO INTO VOTING ON OUR TAX RATES AND ALL OF THAT.
UM, CAN YOU KINDA ELABORATE? BECAUSE ONE OF THE BIGGEST CONCERNS THAT OUR BOARD HAS IS THAT CONNECTION TO WHAT WE SET AND WHAT YOU ARE PRESENTING.
NOW, DO YOU UNDERSTAND WHAT I'M SAYING? BECAUSE I KNOW WE AS THE BOARD SET THE TAX RATE MM-HMM.
OKAY? SO, UM, I'M GONNA TAKE THAT A LITTLE BIT DIFFERENTLY.
OKAY? SO FROM THE MAINTENANCE AND OPERATION SIDE, IT IS 100% CORRECT TO SAY THE STATE IS MANDATING EXACTLY WHAT YOUR M AND O TAX RATE IS.
OKAY? WE LOOK AT THE MAXIMUM COMPRESSED RATE, AND THEN WE LOOK AT THE GROWTH IN YOUR VALUES.
IF YOU GROW MORE THAN TWO AND A HALF PERCENT, THESE START TO COMPRESS YOUR TAX RATE.
SO THE STATE FOR 2020 2 23, THE MAXIMUM COMPRESSED TAX RATE IS 89 OR 0.8941.
BUT UNDER STATE STATUTE ALSO SAYS THAT NO SCHOOL DISTRICT COULD BE MORE THAN 10% AWAY FROM THE HIGHEST SCHOOL DISTRICT.
SO WHY THE MAXIMUM COMPRESSED RATE OR THE HIGHEST LEVEL IS 89 41, THE MINIMUM IS 0.8046.
AND THEN YOU TAKE YOUR ENRICHMENT PENNIES OFF OF THAT.
OKAY? SO THAT IS ULTIMATELY WHAT THE DISTRICT IS DOING THIS YEAR BASED UPON YOUR VALUE GROWTH, YOU'RE AT THE FLOOR, THERE'S NO, THERE'S NO WAY FOR YOU TO GO LOWER.
IF YOU TRY TO SET A TAX RATE LOWER ON MINO SIDE OF THE EQUATION, THE STATE STARTS TO REMOVE FUNDING FROM YOU.
AND THE WAY IT WORKS IS THE FIRST MAXIMUM COMPRESS RATE OF THE FIRST 80 CENTS IS ESSENTIALLY YOUR TIER ONE FUNDING, OKAY? AND THEN ONCE YOU GET INTO YOUR GOLDEN PENNIES AND ALL THAT WONDERFUL STUFF,
WELL, THOSE ARE THE MOST INFLUENTIAL DOLLARS BECAUSE YOU GET THE MOST STATE FUNDING OFF OF THAT FIRST.
SO THE STATE REALLY DESIGNS THE M AND O TAX RATE TO PENALIZE THE SCHOOL DISTRICT FOR NOT LETTING IT AT THE LEVEL THAT YOU'RE TOLD TO.
ON THE DEBT SERVICE SIDE, YOU HAVE MUCH MORE FLEXIBILITY AS LONG AS YOU MEET THE DEBT SERVICE REQUIREMENTS, THAT IS THE MAXIMUM TAX RATE THAT YOU HAVE TO LEVY.
SO IN THIS CASE, ALL YOU WOULD ACTUALLY HAVE TO LEVY IS ENOUGH OF A TAX RATE TO MEET 13.9 MILLION OF BOND PAYMENTS.
OKAY? THE DOWNFALL OF NOT OF LOWERING YOUR INS TAX RATE IS EVERY TIME YOU LOWER YOUR INS TAX RATE, YOU'RE ALSO REDUCING YOUR BOND CAPACITY IN THE FUTURE FOR NO INCREASE, WHICH IS GONNA BE MY NEXT SLIDE.
[00:20:02]
UM, WE'RE PRESENTING THIS AS YOUR CURRENT INS TAX RATE.SO THIS IS JUST ONE OPTION FOR YOU ON, YOU HAVE SEVERAL OPTIONS, UH, AND WHAT WE'VE JUST LIMITED TO TWO, YOU KNOW, THIS IS SOMETHING FOR YOU TO CONSIDER, BUT YOUR PROJECTED MINO TAX RATE FOR THE CURRENT YEAR IS GONNA BE 94.06.
LET'S SAY YOUR INS TAX RATE IS 43.75.
IN THE YELLOW, YOU'RE GOING TO HAVE A 9.23 CENT DECLINE IN YOUR TOTAL TAX RATE.
WHAT DOES THAT MEAN FOR THE AVERAGE HOMEOWNER? THE AVERAGE HOMEOWNER'S PROPERTY TAXES ARE GONNA GO DOWN 160,000, $160 PER YEAR, WHICH IS $13 AND 35 CENTS ON A MONTHLY BASIS.
SO AT 43.75 CENT INS TAX RATE, YOU HAVE TOTAL REVENUES OF ROUGHLY 19.2 TOTAL BOND PAYMENTS OF 13.9, WHICH MEANS YOU HAVE EXCESS COLLECTIONS OF ROUGHLY 5.3 MILLION.
NOW YOU CAN PAY OFF $5.3 MILLION OF BONDERS CREDIT TO MATURE OUT IN 2048, REDUCED THEIR INTEREST COSTS TO TAXPAYERS IN THE DISTRICT BY OVER FOUR AND A HALF MILLION AT A 43.75 CENT INS TAX RATE.
YOUR PROJECTED BOND CAPACITY IS ROUGHLY 190 MILLION, CURRENTLY BASED UPON A PROJECTION OF FUTURE VALUES.
WE'RE GONNA REDUCE THE INS TAX RATE BY AN ADDITIONAL PENNY.
SO NOW, NET REDUCTION IN YOUR TOTAL TAX RATE FOR NEXT YEAR IS 10.23 CENTS.
THAT'S FOR AN AVERAGE HOMEOWNER, $177 AND 60 CENTS.
SO AGAIN, THAT ONE PENNY REPRESENTS ROUGHLY, YOU KNOW, $17 PER YEAR, OR YOU KNOW, LESS THAN $2 A MONTH.
UH, YOUR REVENUES WOULD GO DOWN BECAUSE YOUR'RE LOWERING THE INS TAX RATE.
SO YOUR REVENUES ARE NOW, UH, 18.8 MILLION.
SO YOU WOULD STILL HAVE EXCESS ELECTIONS ON THE DEBT SERVICE SIDE BY 4.8 MILLION.
YOU NOW PREPAY 4.9 MILLION, SAVE TAXPAYERS A LITTLE BIT MORE THAN 4.1 MILLION IN FUTURE INTEREST COSTS.
BUT WHAT I WANNA FOCUS IS ON THE BOTTOM LINE BY LOWERING AT ONE PENNY.
YOUR NOW BOND CAPACITY FOR NO TAX RATE INCREASE IS 179 MILLION.
SO IF YOU LOST 10 MILLION OF BOND CAPACITY FOR NO INCREASE, I WILL TELL YOU AS YOU GO OUT FOR BOND ELECTIONS, NOT KNOWING EXACTLY WHEN LANCASTER ISD WILL GO OUT FOR A BOND ELECTION IN THE FUTURE, IT IS MUCH EASIER TO SELL A BOND PROGRAM FOR NO INCREASE.
MUCH EASIER MESSAGE FOR THE COMMUNITY.
SO, I KNOW I WENT THROUGH THIS RELATIVELY QUICKLY.
ANY QUESTIONS I CAN ANSWER BEFORE I TURN THAT BACK OVER TO MR. GARRISON? I WANNA REPEAT THAT.
DID YOU SAY IT WOULD BE A LOT BETTER TO SELL FOR NO INTEREST? SO HISTORICALLY, ESPECIALLY IN THE LAST FEW ELECTION CYCLES, THE SUCCESS RATE OF BOND ELECTIONS COMMUNICATED TO VOTERS FOR NO TAX RATE INCREASE IS SUBSTANTIALLY HIGHER THAN BOND ELECTIONS THAT CARRY A TAX RATE INCREASE.
SO, YOU KNOW, ONE OF THE THINGS WE ALWAYS TRY TO MEASURE, UH, AS YOU MANAGE YOUR DEBT PORTFOLIO IS TRYING TO WEIGH HOW DO WE, YOU KNOW, ADJUST THAT TAX RATE IN PREPAY BONDS VERSUS HOW MUCH BOND CAPACITY DO I POTENTIALLY NEED IN THE FUTURE, UH, FOR SCHOOL FACILITIES, REPAIRS, WHATEVER.
UH, KNOWING THAT WHEN I DO GO FOR A BOND ELECTION IN THE FUTURE, THE LIKELIHOOD OF SUCCESS IS HIGHER.
IF I COULD SELL IT TO THE COMMUNITY FOR NO INCREASE, WHEN WOULD YOU SAY, UH, WOULD BE A GOOD TIME TO DO THAT IF A DISTRICT DECIDE TO PRO BONO INFLATION? NOW, UM, LET'S PUT IT THIS WAY, THERE ARE A LOT OF WONDERFUL REASONS TO GO OUT A BOND ELECTION NOW BECAUSE YOU'RE STILL LOCKING IN INTEREST RATES ON 25 AND 30 YEAR DEBT OF LESS THAN 4%.
THAT SAID, CONSTRUCTION COSTS ARE NEAR ALL TIME HIGHS.
CONSTRUCTION INFLATION IS VERY HIGH.
AND GENERALLY SPEAKING, IN ORDER TO IDENTIFY
[00:25:01]
PROJECT NEEDS, FACILITY NEEDS AND GET READY FOR A BOND ELECTION, THAT'S REALLY A SIX TO 12 MONTH PROCESS.SO THAT ALWAYS PICKS THE QUESTION, WHERE ARE YOU AS A DISTRICT AND IDENTIFYING POTENTIAL NEEDS IN THE FUTURE? I KNOW WE HAVE A LOT OF NEEDS AND UM, I'M HEARING WHAT YOU, YOU KNOW WHERE WE WERE STANDING, BUT IT'S BOARD SOON
SO YOU SAID THE INTEREST RATE IS GOOD, BUT THE COST OF INFLATION AND THE PRODUCT IS GOING TO EAT.
SO YOU BETTER JUST LEAVE IT ALONE IF YOU DON'T NEED ANYTHING.
WELL, WE COULD USE, WE WOULD, WE COULD STILL BE IN A BAD SITUATION IS BECAUSE IF WE USE OUR OWN MONEY TO REPAIR, WE HAVE A LOT OF SCHOOLS THAT NEED DIFFERENT THINGS DONE.
AND SO WE MAY BE AT A GOOD SPOT NOW, BUT WHEN WE START PICKING ON WHAT WE HAVE WOULD BE AT A BAD SPOT.
SO, SO I WOULD ANSWER THAT AGAIN BY JUST SAYING IT DEPENDS ON WHERE YOU ARE WITH YOUR FACILITY NEEDS.
UM, IF YOU HAVE, IF YOU'RE BUSTING AT THE SEAMS AND NEED SPACE FOR STUDENTS, THERE IS NO TIME LIKE THE PRESENT.
THE FLIP SIDE IS MAYBE THE RATE OF CONSTRUCTION INFLATION WILL SLOPE AS THE FEDERAL RESERVE KEEPS INCREASING THE FED FUNDS RATE.
WE ARE HOPEFUL, UM, THROUGHOUT MY 24 YEAR CAREER, I NEVER REALLY SEE CONSTRUCTION PRICES GO DOWN.
I SEE THE RATE OF INCREASE SLOW DOWN, BUT I NEVER REALLY SEE THAT SLOW DOWN.
UM, SO AGAIN, IT'S JUST DISTRICT BY DISTRICT, COMMUNITY BY COMMUNITY AND WHAT YOU HAVE AND WHAT YOUR NEEDS ARE.
IT'S BETTER TO TRY TO GIVE A RELIEF TO YOUR CITIZEN INSTEAD OF JUST STICKING IT TO 'EM.
CAUSE YOU CAN, RIGHT, THAT'S THE FIRST.
SO IF YOU LOOK AT THE STUDENTS IN THE CONDUCIVE OF LEARNING, THEN P WHAT YOU GET.
I HAVE A COUPLE QUICK QUESTIONS.
A COUPLE THINGS I DON'T UNDERSTAND.
ONE OF THE THINGS I NOTICE IS THAT THESE BOND ISSUES ARE LONG TERM DEBT, BUT WE OFTEN SPEND IT ON SHORT TERM ISSUES LIKE BUSES, AUTOMOBILES,
UM, AND WHY IS THAT? WHY, WHY DO WE SPEND LONG TERM MONEY ON SHORT TERM THINGS? SO I'M GOING TO ANSWER THAT AND TELL YOU, YOU DON'T WHY SHORT TERM ASSETS ARE IMPORTANT.
EVERY TIME WE DESIGN A BOND PROGRAM, WE ASK THE SCHOOL OF DISTRICT HOW MUCH IN SHORTTERM NEEDS DO YOU NEED? SO FOR INSTANCE, IF WE WERE SELLING A HUNDRED MILLION BONDS AND YOU'VE HAD 10 MILLION SHORT-TERM NEEDS, WE MAKE SURE IN YOUR DEBT PORTFOLIO THAT 10 MILLION IS AMORTIZED IN THE FIRST 10 YEARS, THERE'S NO REASON TO FUND A SHORT TERM ASSET OVER A 30 YEAR PERIOD.
THE FLIP SIDE IS A LOT OF YOUR CONSTRUCTION OVER THE LAST SEVERAL YEARS HAVE BEEN NEW CAMPUSES OR REDO FUND CAMPUSES.
THOSE ACTUALLY HAVE A USEFUL LIFE OF 30 OR 40 YEARS.
THAT IS WHY YOU SEE THE LONG TERM DEBT.
BUT AS A GENERAL RULE OF THUMB, ESPECIALLY WHEN WE GO IN FRONT OF IF YOU LEGAL COUNSELING OR TAX COUNSEL AND THE ATTORNEY GENERAL, WE MAKE VERY SURE THAT ANY TYPE OF SHORT TERM NEED THAT YOU HAVE, WE REPAY IN THE FIRST FIVE, 10 YEARS OF YOUR PORTFOLIO.
I DON'T, SO THE BONDS AREN'T BALLOON PAYMENTS, THEY DON'T HAVE JUST ONE FINAL OF MATURITY.
SO I'LL GO BACK TO, LET'S SAY YOU GO DOWN TO, UM, LET'S SEE, I GO ONE MORE HERE.
SO WHEN WE STARTED SELLING YOUR BONDS FROM THE 2015 BOND PROGRAM, UM, WE WERE TOLD THAT THE SHORT TERM ASSET NEED WAS ONLY A COUPLE MILLION DOLLARS, RIGHT? SO YOU COULD SEE WE'RE TRYING TO AMORTIZE THOSE BONDS IN THE FIRST SEVERAL YEARS.
THE LONGER TERM BONDS ARE REALLY ALLOCATED, IF YOU WILL, TO LAND AND SCHOOL FACILITY CONSTRUCTION.
SO FOR EACH ISSUE, DO YOU DESIGNATE EACH PORTION OF THE MONEY TO BE SPENT ON A SPECIFIC ITEM AT A SPECIFIC TIME? SO WHEN WE'RE LOOKING AT FUNDS A FUND, IT DOESN'T MAKE ANY DIFFERENCE.
YOU'RE STILL GONNA PAY FOR IT.
BUT WE WANT TO MAKE SURE THAT, LET'S SAY I'M SELLING 10 MILLION OF BONDS AND YOU HAVE A MILLION DOLLARS OF SHORT TERM NEEDS, WE STILL WANT MAKE SURE THAT MILLION DOLLARS IN THE FIRST FIVE TO 10 YEARS,
[00:30:02]
RIGHT? WHAT WE DON'T WANT TO DO IS NOT HAVE A PRINCIPAL PAYMENT AND THEN PUT IT ALL OUT 30 YEARS BECAUSE NOW YOU'RE REALLY FUNDING SHORT TERM ASSETS OVER RAN LONGER PERIOD OF TIME.YES SIR? UH, THE MONEY, THE ISSUE MONEY FROM THE ISSUE THAT YOU DON'T SPEND.
WHAT, WHAT HAPPENS TO IT? I UNDERSTAND THAT THERE'S SOME KIND OF PENALTY OR SOMETHING, WOULD YOU EXPLAIN? SO THAT IS A GREAT QUESTION AND THEN IS CHANGED OVER TIMES.
BASED UPON YOUR LAST BOND PROGRAM, ANY REMAINING DOLLARS LEFT OVER CAN BE USED FOR ONE OF TWO THINGS.
ONE IS TO CONTINUE CONSTRUCTION PROJECTS BASED UPON THE ORIGINAL LANGUAGE IN THE BOND PROPOSITION.
SO TYPICALLY, UH, WE MADE THOSE BOND PROPOSITIONS OPEN ENDED, MEANING, UH, WE WOULD SAY FOR THE CONSTRUCTION AND EQUIPMENT OF SCHOOL FACILITIES WITHIN THE DISTRICT, INCLUDING THE PURCHASE OF LAND AND SCHOOL BUSES, SORT OF ALL ENCOMPASSING THAT WAY.
IF YOU HAD UNSPENT BOND PROCEEDS, YOU COULD USE IT FOR PRETTY MUCH WHATEVER PROJECT YOU WANTED TO WITHIN THE DISTRICT.
THE OTHER OPTION YOU HAVE IS TO MOVE THAT MONEY OVER TO YOUR DEBT SERVICE SIDE AND PAY THAT OFF EARLY.
THOSE ARE THE TWO OPTIONS THAT THE DISTRICT HAS.
NOW, THE REALITY IS FROM YOUR LAST ISSUE, YOU PROBABLY DON'T HAVE MUCH BOND PROCEEDS REMAINING AT THIS POINT IN TIME.
CAUSE THERE'S BEEN MORE THAN FIVE YEARS SINCE THE SOLD BONDS.
THAT'S WHAT I WANTED TO UNDERSTAND.
AND WHERE, WHAT, UH, REGULATIONS GO? SO IN TERMS OF THE SPENDING, IS IT FEDERAL TAX LAW, UM, IN TERMS OF THE SPEND DOWN TEST? UM, SO ANYTIME WE GO SELL BONDS, TAX EXEMPT BONDS UNDER FEDERAL TAX LAW IS CALLED THE REASONABLE EXPECTATION TEST.
YOU HAVE TO REASONABLY EXPEND EXPECT TO EXPAND 85% OF THOSE BOND PROCEEDS WITHIN A 36 MONTH PERIOD.
AFTER 36 MONTHS THAT YOU HAVE NOT SPENT THAT MONEY.
NOW IT COMES UP TO WHAT'S KNOWN AS FEDERAL ARBITRAGE ALL.
SO THE YIELD RESTRICT THE MONEY THAT YOU HAVE.
SO YOU CAN'T EARN MORE INTEREST ON IT THAN WHAT THE BOND, THE YIELD IS ON THE BONDS.
AFTER A FIVE YEAR PERIOD, YOU'RE REALLY SUPPOSED TO SPEND ALL THE BOND PROCEEDS.
AND IF YOU HAD EARNED INTEREST OVER AND ABOVE WHAT WAS ALLOWABLE, YOU WOULD OWE THE GOVERNMENT A FEDERAL ARBITRAGE REBATE CHECK.
NOW, HISTORICALLY, THE LAST SEVERAL YEARS, WHICH YOU'RE SURE YOU IS BEEN SO LOW, YOU HAVEN'T BEEN ABLE TO EARN ANYTHING, RIGHT? UH, INTEREST INCOME HAS PROBABLY NOT EVEN BEEN A LINE IN YOUR BUDGET BECAUSE IT'S BEEN SO LOW.
THAT IS STARTING TO CHANGE NOW THAT THE FEDERAL RESERVE IS STARTING TO INCREASE INTEREST RATES.
BUT IF YOU HAD ONE SPENT FUNDS FROM AN ISSUE, IT WOULD SEEM TO BE THE OBVIOUS THING TO ADD TO INS PAYMENT.
RIGHT? WHAT I WOULD TELL YOU AT THIS POINT, IF YOU HAD A FACILITY NEED OR A LITTLE PROJECT, I WOULD SPEND THAT MONEY ON THE PROJECT, RIGHT? BECAUSE ALTERNATIVELY, YOU EITHER HAVE TO HAVE ANOTHER BOND ELECTION TO FUND THAT PROJECT OR YOU WOULD HAVE TO COME OUT OF YOUR GENERAL FUND BALANCE.
UH, SO I WOULD TAKE THE BOND PROGRAMS AND IT EXITS BOND FUNDS YOU HAD, AND I WOULD ALLOCATE IT TO THAT PROJECT AND I WOULD SPEND THAT AS SOON AS POSSIBLE.
VE GOT A LOT PROJECT, AND WE DID AT, OF THIS, THE BOND THE LAST FALL WE HAD, I THINK THERE WAS A, JUST, DAVID, CORRECT ME IF I'M WRONG, OVER 3 MILLION LEFT IN THAT.
AND WE HAVE BEEN REALIZING THAT NOW WITH HVAC SYSTEMS AND ROOFING AND CETERA NEEDS, THAT WAS PRESENTED TO THE BOARD BACK IN, I THINK, UM, JANUARY OR FEBRUARY.
SO THOSE PROJECTS ARE ONGOING, UH, OVER THE COURSE OF THE NEXT, I THINK WAS IT TWO OR THREE YEARS? I BELIEVE THREE.
SO THAT, UM, AND WE ALSO, UH, ACQUIRED SOME SER DOLLARS, UM, UTA, WHEN WE REALLOCATED SOME OF OUR PE DOLLARS, WE DIDN'T GET ADDITIONAL ONES TO HELP WITH THAT.
CAUSE I THINK THE TOTAL PROJECT WAS ABOUT, UH, FIVE, ALMOST 6 MILLION.
SO THOSE THREE AND THEN ADDED MORE FROM SER TO, UH, TAKE CARE OF SOME OF OUR ROOFING, UM, AND HVAC AND OTHER NEEDS, DRAINAGE ISSUES CETERA.
SO THOSE PROJECTS BASED, ONE OF THAT BEGAN THIS SUMMER.
I HAVE A QUESTION, UM, AND JUST FOR CLARIFICATION, UM, IS, IS THAT MONEY THAT'S ALLOCATED FOR THAT, IS THAT THE SAME AS A FUND? MONEY FUND?
[00:35:01]
CONSTRUCTION FUND? I'M SORRY.LIKE THE CONSTRUCTION FUND WHEN WE, ALICE EXCUSE, I'M SORRY.
WHEN WE, WHEN WE UM, UM, VOTED ON TO FOR THOSE PROJECTS, IT CAME OUT OF FUND MONEY, DIDN'T IT? SOME OF IT WAS BOND DOLLARS LEFT THOUGH, FROM THE LAST BOND.
AND SOME OF IT WAS, UM, UH, DOLLARS FROM ESSER THAT WE HAD REALLOCATED FROM THE AMOUNT, TOTAL AMOUNT WE HAD, WE REALLOCATED TO HELP WITH THOSE PROJECTS AS WELL.
SO THIS, UM, THIS SPECIFICALLY IS
THIS IS SPECIFICALLY BOND MONEY.
BUT WHEN WE VOTED, WE VOTED FROM ANOTHER DO THIS, IT SHOULD BE SHOULD BE FUND BALANCE.
THAT'S SEPARATE FROM, FROM THIS, THAT'S SEPARATE.
AS, AS YOU'VE HEARD, SOME OF OUR MEMBERS SAY WE HAVE A LOT OF FACILITY NEEDS.
I'M JUST TRYING TO UNDERSTAND WHERE, UM, WHEN WE LAST VOTED, WHERE DID THAT, WHERE THIS FACILITY? SO THOSE WERE SOME SMALLER PROJECTS, UM, THAT WE, WE, UM, PRIORITIZED BY DEPARTMENT.
UM, WE ASKED FOR THE ONE, 1.6 OR 7 MILLION TO COME OUT OF OUR FUND BALANCE TO COME OVER TO GENERAL OPERATING SO THAT WE CAN FIND SOME OF THOSE SMALLER PROJECTS.
WE'VE, THAT THE SIX MILLIONS, THOSE LARGE PROJECTS LIKE HVAC AND ROOFING, WHICH ARE VERY COSTLY AND ROGER CAN SHARE THOSE LIST AGAIN WITH OUR BOARD MEMBERS.
AGAIN, THAT, THAT STUFF, UH, I THINK WITH PRESENTED FIRST, I THINK WE'RE BACK IN THE FALL.
I THINK IT WAS, UH, FEBRUARY OR SO WHEN THERE WAS A VOTE, UH, FOR THOSE TWO, THE COMBINATION OF THOSE TWO FUNDS, THE LARGER SYSTEM, PHASE ONE IS BEGUN, AND THEN THE OTHER ONE WENT FROM ALL THE OTHER DEPARTMENTS AND PRIORITIES IN THEIR AREAS AS WELL.
UM, I GET FREQUENTLY, I BROUGHT THAT UP EARLIER TO START WITH IT, ABOUT THE BOND AND WHAT WOULD HAPPEN AND IS IT A GOOD TIME? IT'S BECAUSE I FEEL WE DO HAVE A BUILDING THAT EITHER WE NEED TO DETERMINE IN THE FUTURE WE GOING TO ALLOW BUILDING BECAUSE WE, IT JUST, IT WE ALMOST IMPOSSIBLE FOR US TO TAKE FUNDS FROM ANY AREA WITHOUT DOING A TEAR DOWN, JUST BUILDING.
BUT I'M CALL BUILDING'S BUILDING.
THIS IS NOT FOR YOU AND I'M GONNA BE
I JUST WANT US TO, AS A BOARD, WHAT WE ARE GONNA, AND WHAT ARE WE GOING DO.
BECAUSE EITHER YOU'RE GONNA ON THE BACK FRONT AND IF WE ARE GIVEN PACKED CARE OF THE BREAK NOW, AND NOTHING CAN HAPPEN THIS SOON, BUT JUST THE THOUGHT, LET'S THINK ABOUT FIRST OUR CHILDREN.
THINK ABOUT OUR CHILDREN, THE BUILDING, THE NEEDS THAT THEY WALK INTO, BECAUSE IT'S ABOUT ONE THING WITH THE SCHOOL DISTRICT.
ANY MORE QUESTIONS? THANK YOU.
WHERE HE LEFT OFF, HE DID A GREAT JOB OF TALKING ABOUT TAX RATE, THAT IT MAKES MY TAX RATE JOB A WHOLE LOT EASIER.
UH, I KNOW HE TALKS ABOUT THE INS SIDE, BUT HE ALSO TALKED A LOT ABOUT THE M O SIDE AS WELL AND HOW THAT TIES IN.
UM, THE NEXT SLIDE I'VE INCLUDED.
THIS IS, UH, A PORTION THAT'S ACTUALLY THE, UH, LAST PORTION OF THE TRUTH AND TAXATION WORKSHEET THAT, UH, DALLAS COUNTY SENDS TO US.
UH, THEY GATHER THE, UH, VALUES, HISTORICAL VALUES THAT PUT ALL, UH, ALL THAT TOGETHER TO GENERATE A COUPLE OF NUMBERS OF INTEREST.
THIS IS OUR TAX RATE FROM LAST YEAR.
THEY COMPARE THAT AND THEY GENERATE A, UH, NO NEW TAX RATE, WHICH WOULD BE A DOLLAR AND 27 CENTS, AND THEN A VOTER APPROVED TAX RATE OF A DOLLAR AND 38 CENTS.
UM, WE NEED TO BE BETWEEN THOSE.
WE CAN'T EXCEED THE VOTER APPROVED TAX RATE ON A, ON A TOTAL WITHOUT GOING TO A VOTE OF THE PEOPLE, UH, OF THE CONSTITUENTS.
AND SO, UH, AS HE MENTIONED EARLIER, UH, WITH OUR TAX RATE FOR M AND O, UH, WITH OUR ENRICHMENT PENNIES AND EVEN LEAVE NINE AS THE SAME, WE WILL BE UNDER ACTUALLY A PENNY UNDER THAT DOLLAR 38, UH, HISTORICAL VIEW OF WHAT THE TAX RATE LOOKS LIKE.
UH, TOOK THIS BACK TO, UH, 2006, UH, FISCAL YEAR 2016.
UM, TOTAL RATE OF A DOLLAR 54.
[00:40:01]
WANTED TO BE ABLE TO SHOW A GRAPHIC OF, OF WHAT OUR TAX RATE HAS DONE.AND AS HE MENTIONED, IT'S BEEN A DRAMATICALLY COME DOWN THIS YEAR.
UM, AGAIN, THIS IS YOUR TOTAL TAX RATE, YOUR MAINTENANCE AND OPERATION AND COMBINED WITH YOUR HIGHS AND YOUR INS CANNOT EXCEED 50 CENTS.
AND SO YOU WERE AT THE MAX AT LEAST THREE YEARS HERE.
UM, YOU CAN SEE THAT THE TR E WAS PASSED.
AND SO THIS IS WHERE THESE ENRICHMENT PENNS COME IN.
UM, LAST YEAR'S RATE, A DOLLAR 47 MINO WAS 1 0 3, AND THEN YOU HAD THE 43 CENTS FOR INS.
SO A LITTLE MORE BREAKDOWN, A LITTLE MORE DETAIL.
UH, AGAIN, THIS IS HISTORICAL HERE.
A BREAKDOWN OF LAST YEAR WHEN WE TALKED ABOUT TIER ONE, TIER TWO.
UH, THIS IS YOUR TIER ONE BASIC ALLOTMENT WAS 89.
69, AND YOU CAN SEE THAT YOUR ENRICHMENT PENNIES ARE THE SAME.
AND SO, AND THEN YOUR INS HERE.
SO AGAIN, WITH, UH, WE HIT THE FLOOR AND, AND THE REASON YOU, WE TALKED ABOUT HITTING THE FLOOR WITH, UH, GOING TO THE LOWEST POSSIBLE COMPRESSED RATE FOR YOUR M AND O.
AGAIN, THAT'S DETERMINED BY TEA.
EVERY SCHOOL IN THE STATE, UH, HAS TO BE WITHIN THAT RANGE.
NOBODY CAN BE LOWER THAN THAT.
THEY SET A RANGE THAT'S A LITTLE BIT HIGHER, AND NO ONE CAN EXCEED THAT WITHOUT ONE TO A VOTE FOR, FOR MORE ENRICHMENT PENNIES.
AND SO THIS IS, WE, BECAUSE WE GREW 20%, UH, WE DROPPED ALL THE WAY DOWN TO, UH, JUST OVER 80 CENTS.
YOU ADD YOUR ENRICHMENT PENNIES, AND AGAIN, YOUR INS, UH, PUTS US AT A DOLLAR 37 PUTS US UNDER THE VOTER APPROVED RATE, SO WE DON'T HAVE TO GO TO A VOTE, UH, TO DO THAT.
UH, AND AGAIN, A 9 CENT DECREASE IN OUR OVERALL TAX RATE.
AND SO HAVING THAT INFORMATION, I JUST WANTED TO GO OVER A FEW BUDGET ASSUMPTIONS AND, UH, WHAT, WHAT REALLY DRIVES THE BUDGET, WHERE WE GET THOSE NUMBERS, WHERE DO THEY COME FROM? UH, THE, THE BUDGET YOU'LL SEE, UH, TODAY TO REVIEW, AND AGAIN, I'VE GOT ON HERE IS A DRAFT, BECAUSE THIS IS A WORKING DOCUMENT.
UH, THIS IS WHERE WE'RE AT IN THE PROCESS AT THIS TIME.
BUT WE'RE USING, UH, A PROJECTED ENROLLMENT OF 7,100, UM, AND THEN A REFINED ADA.
UH, WE'RE FUNDED NOT ONLY ON ENROLLMENT, BUT OUR ATTENDANCE AND ALSO ON OUR WEIGHTED ATTENDANCE.
BUT RIGHT NOW WE'VE GOT THAT PROJECTED JUST OVER 94%.
UM, THIS IS SOMETHING WE'LL DEFINITELY MONITOR.
UH, WE'VE, WE'VE SEEN THAT COME UP.
WE'RE STARTING TO SEE THAT COME BACK UP.
BUT WE'LL SEE THIS LEVEL OUT AFTER SEPTEMBER.
IF YOU'LL REMEMBER, I'M GONNA TAKE YOU BACK TO, I, I WAS JUST GETTING STARTED, BUT I KNOW IT WAS NOT LONG AFTER I WAS HERE THAT THE BUDGET MEMO WAS DONE TO REDUCE YOUR, UM, REVENUE COLLECTIONS.
AND IT WAS DUE TO YOUR ATTENDANCE.
SO THAT'S SOMETHING THAT WE'LL MONITOR, UH, CLOSELY BECAUSE THAT'S A BIG DRIVER IN YOUR REVENUE.
AND THEN AGAIN, WE'LL KEEP HITTING THIS, BUT YOUR M AND O SIDE, YOUR INS SIDE, YOUR COMBINED RATE, YOUR CERTIFIED VALUES, AND THEN YOUR T2 VALUES, THESE ARE THE THINGS THAT WE USE TO DRIVE THE OVERALL BUDGET.
UH, REVENUE PROJECTION CHALLENGES.
UH, AGAIN, WE DON'T GET, SO WE GET THE T THAT T2 VALUE, THE REASON IT'S PROJECTED IS WE DON'T GET THAT UNTIL JANUARY.
SO, UH, ONE OF THE MOST DIFFICULT THINGS ABOUT DOING A BUDGET IN TEXAS NOW, SEVERAL YEARS AGO YOU WERE BUDGETING OFF OF ACTUAL NUMBERS BECAUSE THEY HAD A YEAR LAG.
YOU WERE DOING IT OFF THE PRIOR YEAR, SO YOU KNEW WHAT YOUR NUMBERS WERE.
THEY WERE CERTIFIED, THEY WERE SOLID.
YOU COULD BUDGET, YOU DIDN'T HAVE THESE QUESTIONS.
YOU HAD QUESTIONED YOUR ENROLLMENT A LITTLE BIT, BUT YOU HAD SOLID NUMBERS.
UH, WE, WE WORK WITH THE DEPARTMENTS TO GATHER INFORMATION FROM THEM AS FAR AS PROJECTING THINGS THAT WE MIGHT NEED.
BUT AS FAR AS PROJECTING OUR REVENUE, WE DON'T GET VALUES.
WE DON'T EVEN GET OUR CERTIFIED VALUES UNTIL THE END OF JULY.
SO JULY 25TH, THOSE ARE RELEASED.
AND THAT'S WHEN WE CAN REALLY START TO DO THAT.
AND AS YOU MENTIONED, TE SETS THE TAX RATE.
WE DON'T GET THAT UNTIL THE FIRST WEEK OF AUGUST.
SO HERE WE SET WITH VALUES WE GET AT THE END OF JULY AND A TAX RATE THAT WE GOT THE FIRST WEEK OF AUGUST AND PUTTING TOGETHER A BUDGET TO RUN FOR NEXT YEAR.
SO, UH, THAT'S, THAT'S, UH, THAT'S ON THOSE.
AND THOSE ARE ALSO ESTIMATES CUZ THEY'RE NOT CERTIFIED UNTIL WE GET THAT COMP CONTROL VALUE.
AND WE WON'T GET THAT UNTIL JANUARY.
SO THAT'S WHERE YOUR T2 VALUE COMES FROM.
THAT T2 VALUE COMES, UH, THEY, THEY ADJUST THAT OFF OF YOUR APPRAISED VALUE.
UH, THE OTHER THINGS, TEACHER, TEACHER VACANCIES AND ALLOTMENTS.
WE'VE, WE'VE GOT A LOT OF MOVEMENT.
AGAIN, WITH THE ENROLLMENT WE'VE GOT, WE'RE FILLING SPOTS, TRYING TO GET PEOPLE HIRED.
UH, THAT'S THE BIGGEST DRIVING FORCE IN YOUR BUDGET.
UH, I KNOW THAT, UH, I VISITED, WE GOT FOR TODAY AND WE FEEL LIKE WE'RE REALLY SOLID ON STAFFING.
THINK WE HAVE ALL OF OUR POSITIONS FILLED, UH, BUT MAKING CERTAIN THAT THOSE ARE LOCKED IN, YOU KNOW, WITH PEOPLE IN OUR BUDGET, WE HAVE ALL THE BUDGET, UM, RAISES THAT ARE IN THERE ON A SHORT TIMEFRAME, MAKING SURE THAT THOSE ARE, THEY'RE BALANCED OUT.
PER MENTIONED EARLIER, HOPEFULLY WE WON'T BE DEALING WITH THIS AS MUCH, BUT IF THERE'S ANYTHING THAT WOULD AFFECT THOSE, THOSE THINGS ARE ON THERE BECAUSE AGAIN, TO AFFECT ATTENDANCE AND ATTENDANCE DROPS OUR BUDGET CAN, CAN I, UH, IF YOU'LL GO BACK ONE BEYOND THAT, UM, I HAVE A LOT OF PRINCIPALS SITTING HERE, SO I JUST WANNA DRAW THAT ATTENTION TO THE BUDGET NUMBER THAT WE'RE UTILIZING.
AS YOU SEE THE PROJECTED ENROLL
[00:45:01]
WITH 71, THAT MEANS SOMETHING, BUT IT DOESN'T MEAN AS MUCH TO THE ADA.YOU CAN HAVE 7,100 KIDS, BUT YOUR ADA IS HOW MANY KIDS.
THAT'S REALLY WHAT YOU FIND IT.
SO AT 94%, THAT'S WHAT WE NEED FOR EVERY SINGLE BUILDING.
THAT'S, THAT'S AGAIN, COVID, UM, HIT US LAST YEAR THAT, THAT NEW VARIANT HIT US LAST YEAR.
THAT BROUGHT US UNDER THAT A LITTLE BIT.
HOWEVER, YOU COULD STILL HAVE 7,100 KIDS SHOW UP, BUT THE STATE'S ONLY GONNA FIND YOU ON 66 85.
THAT'S, UH, I, I APPRECIATE YOU DOING THAT BECAUSE YOU'RE RIGHT.
I, I SHOULD HAVE GIVEN MORE ATTENTION TO THAT BECAUSE IF YOUR ENROLLMENT IS THIS, AND THIS IS 90%, THIS NUMBER GOES DOWN AND THIS NUMBER RIGHT HERE IS WHAT'S DRIVING YOUR BUDGET.
SO YOUR ATTENDANCE IS CRITICAL IN, IN DRIVING THAT NUMBER UP.
WE HAVE TO SHOW UP TWICE A YEAR.
SO
UM, NOT A SURPRISE TO SEE THAT, UM, AN INCREASE IN YOUR CURRENT PROPERTY TAX.
SO THAT'S, YOU'RE, YOU'RE DEFINITELY GONNA SEE THAT.
UM, AGAIN, WITH ME BEING FAIRLY NEW AND, UH, HAVING A, A TOTAL OF ABOUT, UH, SIX TO SEVEN WEEKS TO SEE IN YOUR BUDGET, SOME OF THESE NUMBERS WERE A LITTLE BIT, UH, STARTLING TO ME WHEN I SAW SOME OF THE GROWTH.
NOW, AGAIN, WHEN YOU'RE TALKING ABOUT $460,000, IT SOUNDS LIKE A LOT OF MONEY UNLESS YOU'RE COMPARING IT TO AN 80 MILLION BUDGET.
SO, UH, WHILE THAT'S NOT A HUGE FACTOR IN OUR BUDGET IS A BIG INCREASE FROM LAST YEAR.
BUT WHAT WE FOUND IS THAT BECAUSE OF COVID AND THAT A LOT OF UNCERTAINTIES THAT THIS BUDGET WAS DONE ON THE REVENUE SIDE VERY CONSERVATIVELY, THESE NUMBERS HERE ARE ACTUALLY BASED ON THINGS THAT WE'VE COLLECTED THIS YEAR.
THEY'RE GONNA BE TIED REALLY CLOSELY TO THAT.
AND SO THAT'S WHAT WE USED LAST YEAR'S, UH, REVENUE, UH, KIND OF DRIVE THOSE PROJECTIONS.
AND SO THIS IS WHAT WE SAW IN THESE CATEGORIES.
UH, INTEREST INCOME, UH, AS YOU KNOW, THERE WAS, YOU KNOW, INTEREST WAS SUPER LOW LAST YEAR.
UH, THAT'S STARTING TO COME BACK AROUND.
THIS IS ACTUALLY PRETTY CONSERVATIVE ESTIMATE BECAUSE THIS IS, WE, WE COLLECTED THIS ON LAST YEAR'S INTEREST RATES AND WE WERE STARTING TO SEE THOSE GO UP.
SO I WOULD EXPECT THIS ACTUALLY TO EXCEED THIS AMOUNT HERE.
UM, E-RATE, UH, IS, IS A NEGATIVE.
AND IT'S NOT IN HERE THIS YEAR BECAUSE WE'RE, WE'RE NOT FUNDING IT THIS WAY.
THIS IS, THIS IS SHOWING AS A COLLECTED REVENUE.
UH, IT'S A FEDERALLY FUNDED, UH, PROGRAM.
UH, WE'RE ACTUALLY GONNA DO THAT THROUGH A DISCOUNT PROGRAM.
WE'LL TAKE THE PERCENTAGE, IT'S BASED ON OUR FREE AND REDUCED, UH, LUNCH ACCOUNT AND, UH, THAT THAT'LL ACTUALLY GO DIRECTLY TO A DISCOUNT ON THOSE BILLS.
SO WE'LL SEE THAT ON LESS ON THE EXPENSE SIDE, NOT ON THE REVENUE SIDE.
OH, NOT MAYBE CLICK THAT BUTTON.
UH, OVERALL THOUGH, UH, OF ABOUT $3 MILLION OVERALL, UH, THIS IS ANOTHER ONE THAT WE WOULD WANT TO TALK ABOUT.
THE DALLAS COUNTY SCHOOLS, UH, PAYBACK.
THIS GOES BACK TO THE PAT RATING CENTER, UH, THE SCHOOLS THAT OWE US FOR THAT.
AND SO WE EXPECT THIS YEAR TO COLLECT, UH, ABOUT $650,000 FROM THOSE DISTRICTS ON MONIES THAT THEY OWE US FOR THAT FACILITY.
AND SO THAT WAS SOMETHING THAT WASN'T IN THE BUDGET LAST YEAR.
THE REST OF THESE, AGAIN, ARE BUS BASED ON, UH, PROJECTED REVENUES THAT WERE, UH, IN THESE CATEGORIES.
AND AGAIN, UH, THIS IS ANOTHER ONE THAT WAS SIGNIFICANTLY MORE, BUT PROBABLY BUDGETED CONSERVATIVELY AGAIN, BECAUSE OF COVID.
UM, ON THE STATE REVENUE SIDE, UH, YOU CAN SEE, AND IT, AND IT IRONIC THAT WE'RE UP ON LOCAL REVENUE, ABOUT 3 MILLION AND WE'RE DOWN ON STATE REVENUE ABOUT 3 MILLION.
SO, UH, 2222, YOU'RE STATING THAT THOSE NUMBERS IS BASED ON COVID? NO, WELL, THESE ARE PROJECTED.
SO THIS IS WHAT THEY'VE BUDGETED FOR ANTICIPATING LAST YEAR.
SO JUST LIKE THESE, THESE ARE PROJECTIONS.
WE, WE, THESE ARE THE TARGETS WE'RE HOPING TO HIT THIS YEAR.
UM, WHEN WE GET TO THIS TIME NEXT YEAR, I'LL KNOW EXACTLY WHAT THOSE ARE, PLUS OR MINUS.
WE MAY HAVE SOME COLLECT MORE, WE MAY HAVE SOME COLLECT LESS, BUT THIS IS WHAT WAS PUT IN THE SYSTEM AS FAR AS WHAT WE WERE BUDGETING AGAINST AT THIS TIME LAST YEAR WHEN THIS WAS PRESENTED.
OKAY, SO DO WE HAVE THE NUMBERS PRIOR TO DO, UM, MORE OF A REALISTIC COMPARISON? WHAT I'M ASKING IS, ON 22, WE HAVE THOSE PROJECTED NUMBERS BASED ON, RIGHT, SO WE TALKED ABOUT DOING THAT AND INCLUDED THE ACTUAL ALLOCATIONS OF WHAT WE'VE RECEIVED TO DATE.
BUT AS, AND WITH DANA SITTING HERE, WE HAVE COLLECTIONS THAT ARE STILL OUT.
WE DON'T HAVE ALL OF OUR COLLECTIONS IN FOR AUGUST, SO WE WON'T HAVE A COMPLETE SNAPSHOT OF THAT.
BUT BASED ON WHAT WE HAVE COLLECTED, IT'S GONNA BE CLOSE TO THESE NUMBERS HERE.
WHAT ABOUT PRIOR TO 22? UH, WE COULD PULL THOSE.
UH, BUT AGAIN, IT'S GONNA BE NOT AS COMPARABLE BECAUSE YOUR VALUES ARE GONNA BE, UM, IT'S COMPLETELY DIFFERENT INDICATOR.
YOU'VE GOT DIFFERENT ENROLLMENT, YOU'VE GOT DIFFERENT ATTENDANCE RATES, YOU'VE GOT DIFFERENT
[00:50:01]
COMPTROLLER VALUE.AND SO LIKE, YOU COULD COMPARE THE REVENUE, BUT YOU'RE COMPARING APPLES TO ORANGES BECAUSE OF YOUR DIFFERENT I UNDERSTAND THAT, BUT I'M JUST STATING BECAUSE OF THE JUMP AND THE NUMBERS AND A SIGNIFICANCY, IT, UM, IT GIVE US MORE OF REALISTIC AS IT, WHAT IT WAS.
OF COURSE WE HAD COVID, BUT WHAT WE ARE LOOKING FORWARD TO, BUT THEN IT, FOR THOSE WHO ARE INTO NUMBERS, IT WOULD MAKE SENSE WHEN IT, WHEN YOU'RE LOOKING AT WHAT WAS THE PROJECTION AND WHAT WE'RE PROPOSING, OF COURSE.
AND WHEN CAN WE GET THAT? WHAT WOULD YOU THAT'S WHAT I'M ASKING.
AVAILABLE ON THE WEBSITE, BUT I'M, I NEED HIM TO BREAK IT DOWN.
AND AGAIN, YOU KNOW, THE BULK OF THAT IS GONNA BE, THERE'S 1.7 MILLION OF THAT 3 MILLION, THE BULK OF THAT'S GONNA BE IN THAT, IN YOUR PROPERTY TAXES IS WHERE THAT'S GONNA BE.
THE REST OF THIS IS PRETTY MINUSCULE IN THE BIG SCHEME OF THINGS.
AGAIN, ON THE FOUNDATION SIDE, ON THE STATE REVENUE SIDE, UH, YOU'RE SEEING A LITTLE BIT OF A DECREASE IN THAT BECAUSE YOUR LOCAL VALUES ARE UP.
AND SO THEY'RE GONNA OFFSET THAT WHEN YOU GROW LOCALLY.
THEY'RE GONNA TAKE IT AWAY ON THE, ON THE STATE SIDE.
UH, AND THEN YOU'VE GOT YOUR FEDERAL DOLLARS HERE.
UM, THAT, UH, AGAIN, WE HAVE A LITTLE BIT MORE CLAIMING AN INDIRECT COST, UH, WITH TEA THAT'S BASED ON YOUR FREE AND REDUCED LUNCH COUNT FROM OUR FEDERAL PROGRAMS. WE'RE ALLOW, WE'RE ALLOWED TO, UH, TAKE A PERCENTAGE OF THAT AND APPLY IT FOR, UM, OUR USE.
AND THIS Q A, AND AGAIN, YOU PROBABLY, YOU, YOU COULD, I, YOU COULD TALK FOR THREE HOURS ON THIS, BUT BASICALLY WE TALKED TO THE AUDITORS AND BASICALLY THIS WAS DONE AS A REFUND.
BASICALLY, THE FEDERAL GOVERNMENT, UH, PAYS A PORTION OF THE INTEREST PREMIUMS ON THE BONDS RELATED TO THAT.
AND WE WERE, AND I, I'VE DONE THIS IN OTHER DISTRICTS, THEY WERE REPLYING THAT DIRECTLY TO THE EXPENSE.
SO WE WOULD EXPENSE IT WHEN THEY WOULD GIVE US IT AS A REIMBURSEMENT, WE WOULD DEPOSIT THAT INTO RE UH, INTO THE EXPENSE ACCOUNT JUST TO OFFSET THAT.
AND THAT'S WHY THIS WAS ONLY, UH, SHOWING THIS MUCH IN REVENUE.
WE'RE ACTUALLY GONNA DEPOSIT THAT REFUND INTO THE REVENUE ACCOUNT AND ACTUALLY SHOW IT TRUE EXPENSES, WHAT THE AUDITORS WOULD PREFER.
SO THERE'S REALLY NOT ANY CHANGE IN THAT.
BUT IT'S A GREAT PROGRAM BECAUSE BASICALLY THE FEDERAL GOVERNMENT'S PAYING PART OF OUR INTEREST ON, ON THOSE, UH, BONDS.
CAN YOU REVISIT THE DCX PAYBACK ISSUE? YES.
UM, IT'S NOT ACTUALLY DALLAS COUNTY SCHOOLS.
IT'S FOR RENT, RIGHT? AND THEY PAID US FOR LAST YEAR ALSO
IF IT WAS, IT WASN'T THAT MUCH.
SO THERE WAS A, THIS 20 SOMETHING DOLLARS, IT'S A COMBINATION.
A COMBINATION OF THE, YEAH, SOME OF IT, THE SOUTHWEST THAT WERE THERE WERE MAYBE COLLABORATION WITH US THAN THAT WAS.
SO THAT IS PROBABLY A PART OF THIS.
BUT THIS IS ACTUALLY, THERE WAS A, A GROUP THAT OWNED THE PIPE BRANDING CENTER.
THEY ACT, WE WENT THROUGH A BUNCH OF LEGAL DOCUMENTS.
DEBBIE WAS THE ONE THAT COORDINATED THAT, UH, SENT THAT OUT.
AND THEY ARE ACTUALLY TO BE PAYING US FOR THAT.
UM, THEY'RE BASICALLY PAYING IT OFF ALMOST LIKE A LOAN.
SO THAT'S THE REVENUE THAT SHOULD COME IN FOR THAT, UM, PROJECT THIS YEAR.
SO OVERALL, AT THE END OF THE DAY, WE'RE, WE'RE LOOKING AT ABOUT, UH, A MILLION DOLLARS IN ADDITIONAL PROJECTED REVENUE TOTAL.
SO IT'S A, IT'S A SMALL CHUNK OVERALL FROM WHAT WE WERE LOOKING AT LAST YEAR.
UM, THE NEXT TRAFFIC IS JUST A SIMPLE PIE CHART.
THE MAIN THING I WANTED YOU TO SEE HERE, AND THE MAIN REASON I INCLUDE IT IS YOU CAN SEE THAT, UH, THIS, THIS, THIS WHITE SIDE IS THE STATE PORTION.
AND YOU CAN SEE THAT THIS IS GETTING SMALLER AND YOUR LOCAL IS GETTING BIGGER.
AND I THINK IF YOU WERE TO PULL THIS SLIDE UP FIVE, 17 YEARS AGO, IT WOULD'VE LOOKED JUST THE OPPOSITE.
SO AGAIN, AS YOU'RE SEEING LOCAL VALUES GO UP, YOU'RE FUNDING THIS MORE LOCALLY, WE'RE GETTING LESS, LESS REVENUE FROM THE STATE.
SO, UM, BUDGET IMPACT ITEMS FOR, UM, ON THE EXPENSE SIDE.
SO WE TALKED ABOUT THE REVENUE, UH, THE PIECES THAT DRIVE THE REVENUE.
THE REVENUE SHOULD ALWAYS DRIVE YOUR EXPENSES.
THESE ARE SOME OF THE ITEMS THAT ARE IN THIS YEAR'S BUDGET THAT ARE, ARE IMPACTFUL.
OBVIOUSLY THIS IS NOT ALL INCLUSIVE, BUT THESE ARE SOME OF THE BIGGER ITEMS. UH, AS WE KNOW, FUEL PRICES ARE UP.
UH, THAT'S SOMETHING WE'RE DEALING WITH.
THIS RIGHT HERE IS ONE OF THE BIG ONES.
IT'S A FIVE, UH, 5% PAY RAISE FROM THE MIDPOINT.
OUR PROPERTY INSURANCE IS INCREASED.
UH, WE'VE HAD AN INCREASE IN LEGAL FEES.
WE'VE DONE SOME SBY STUDIES, UH, SOME OF THE LARGER PROGRAMS THAT HAVE BEEN REQUESTED BY DIFFERENT, UH, ORGANIZATIONS, UH, THAT HAVE BEEN INCLUDED IN THE BUDGET.
UH, WITH THAT SAID, WE HAVE A SIDE BY SIDE COMPARISON FROM LAST YEAR TO THIS YEAR.
AGAIN, THIS IS LAST YEAR'S ADOPTED BUDGET THAT WAS ADOPTED, UH, AT THE END OF AUGUST.
UH, COMPARED TO RIGHT NOW, OUR, UH, AGAIN, A DRAFT OF WHERE WE ARE IN THIS PROCESS.
UH, YOU CAN SEE I, I'D LIKE TO JUST START AT THE BOTTOM.
YOU CAN SEE THERE THAT, UH, AT 74.6 MILLION LAST YEAR, YOU AT 76.5 MILLION THIS YEAR.
[00:55:01]
$2 MILLION INCREASE.AND AGAIN, THIS ALSO SHOWS A BALANCED BUDGET.
OUR REVENUES EQUAL OUR EXPENDITURES AT THIS POINT.
UH, SO OVERALL, NOT A HUGE, NOT A HUGE INCREASE.
THE MAJORITY OF THIS, AND YOU LOOK AT THIS, IS GONNA COME DOWN TO YOUR 5% FOR MIDPOINT RAISES.
UH, ANOTHER SLIDE THAT YOU'LL SEE ON HERE SHORTLY IS GONNA BE THAT, YOU KNOW, PAYROLL'S 80% OF YOUR BUDGET, UH, THAT YOU GOT 20% LEFT OVER, YOU REALLY DON'T HAVE 20% LEFT OVER.
YOU HAVE FUEL UTILITIES, UH, OPERATIONAL COST INSIDE THAT 20%.
SO THE FRACTION THAT YOU HAVE TO SPEND AS, UM, YOU KNOW, DOLLARS THAT YOU CAN, YOU KNOW, HAVE ALLOCATIONS TO DO WHAT YOU WANT WITH IS, IS VERY SMALL.
SO, UH, SOME OF THE ITEMS THAT JUMP OUT HERE, UM, ONE IS THAT PLANT MAINTENANCE IS DOWN ALMOST 1.7 MILLION.
THAT IS RELATED TO, WE MENTIONED THAT WE WERE USING ESSER FUNDS TO FUND SOME OF THOSE PROJECTS.
AND SO THAT, THAT BUDGET'S BEEN REDUCED BY THAT AS WELL AS A PORTION OF THAT 1.8 MILLION TRANSFER FROM FUND BALANCE.
SO THAT'S WHERE HE HASN'T LOST MONEY.
WE DIDN'T CUT HIS BUDGET 1.7 MILLION.
HE'S, HE'S BEEN MADE WHOLE AND THEN SOME.
BUT WE'VE SHOWN THAT IT'S SAVINGS HERE ON THE EXPENSE SIDE.
UH, SAME THING ON DATA PROCESSING.
IT'S DOWN, UH, SIGNIFICANTLY, BUT THAT'S ALSO RELATED TO THAT 1.8 MILLION, UH, BUDGET AMENDMENT TRANSFER.
SO, UM, ANOTHER ITEM, UH, THAT THIS GENERAL ADMIN IS UP SIGNIFICANTLY.
UH, SOME OF THAT, ONE OF THE THINGS THAT I'VE IDENTIFIED.
SO ONE OF THE THINGS THAT I DO WITH THIS, AS I GO THROUGH, WE PUT THE BUDGET TOGETHER.
I'LL TAKE THESE AND LOOK FOR ANOMALIES AND THAT THIS, THIS JUMPED OUT AT ME.
AND THEN WHEN I SAW IT, THERE WERE SOME THINGS THAT I IDENTIFIED THAT ARE CODED TO 41 THAT NEED TO BE REALLOCATED TO OTHER AREAS.
UM, THERE NOT ONLY PERSONNEL, BUT A COUPLE OF PROGRAMS. SO THAT'S GONNA BE YOUR GENERAL ADMIN HERE.
BUT SOME OF THAT GOES OUT TO CAMPUSES.
THERE ARE SOME PEOPLE THAT WERE CODED AND HIRED THAT I'VE SEEN AS THEY COME IN THAT JUST NEED TO BE REPURCHASED SO THAT, UH, THAT NUMBER WILL BE, THAT NUMBER WILL BE LESS.
BUT OVERALL, ABOUT A $2 MILLION INCREASE IN OUR EXPENDITURE BUDGET.
AND AGAIN, THIS IS WHERE I WAS TALKING ABOUT, AGAIN, SIMPLE PIE CHART, BUT IT'S VERY IMPACTFUL WHEN YOU CAN SEE THAT YOUR DOLLARS ARE BEING ALLOCATED TO PEOPLE.
UH, 80% OF YOUR BUDGET RIGHT THERE IN PAYROLL, WE'LL GO THE CHILD NUTRITION BUDGET, UH, UP SIGNIFICANTLY.
UH, FEEDING IS UP, BUT THIS IS, UH, THE CHILD NUTRITION BUDGET IS SENT IN, UH, FROM THE CONTRACTED SERVICE.
WE HAVE TO BID THAT PROGRAM EVERY FIVE YEARS.
MATTER OF FACT, IT'S UP TO RENEWAL.
UH, THAT PROCESS WILL PROBABLY START IN OCTOBER.
UH, IT'S VERY STRICT ON HOW THEY BID THAT ANYBODY THAT WE DO SERVICE WITH HAS TO BE APPROVED BY TDA.
UM, WE GO THROUGH A REALLY SIGNIFICANT BID PROCESS ANYWAY.
WE HAVE A BUDGET THAT'S PUT TOGETHER AND THAT BUDGET IS PROVIDED TO US.
IT'S APPROVED BY TDA AND THIS IS, THIS IS WHAT THEY'VE SENT IN FOR THAT.
I MEAN, IT'S PRETTY, THAT'S PRETTY SIMPLE.
THIS IS, UH, I WENT AHEAD AND ADDED THIS DEBT SERVICE.
THIS JUST REFLECTS WHAT JOSH PRESENTED EARLIER A LITTLE BIT WHAT'S IN MY BUDGET.
AGAIN, THIS IS GONNA BE YOUR COLLECTIONS FROM YOUR INS REVENUE.
SO YOU'RE GONNA HAVE YOUR OVERALL, YOUR CURRENT YEAR AS SHOWING ABOUT 18.6, BUT THEN YOU'RE ALSO GONNA COLLECT SOME PRIOR YEAR PENALTY INTEREST AND THEN ANY INTERESTING FUND THAT COMES IN FROM BEING IN THAT ACCOUNT.
SO THIS, I'M, I'M ACTUALLY PRETTY SURPRISED THAT WE'RE STILL SEEING A LITTLE BIT OF STATE REVENUE.
I REALLY EXPECTED THIS STATE REVENUE TO GO AWAY, BUT IT'S PRETTY, YOU KNOW, AGAIN, WHEN YOU'RE TALKING ALMOST $20 MILLION, $200,000 IS NOT A LOT ANYWAY.
BUT I WAS REALLY HONESTLY SURPRISED THAT STATE SENATE, ANYTHING.
AND AGAIN, THIS IS BASED ON THAT ASSUMPTION OF, UH, 43, UH, 75, UH, 43 CENTS, UH, FOR AN IN RATE.
AND THE ONLY THING THAT WE CAN DO WITH THAT IS PAY BACK.
NOW, UH, AS WE, AS WE GET CLOSE TO THE CLOSE, I WANTED TO GO BACK TO, YOU KNOW, WHEN I PRESENTED AT THE JULY MEETING, WE TALKED ABOUT THE POSTING GOING IN THE PAPER AND NOT TO RATE NOT TO EXCEED.
THIS IS ACTUALLY THE, UH, BUDGET NOTICE THAT WILL BE POSTED AND RUN, UH, IN THE PAPER, UH, TOMORROW ACTUALLY.
AND IT ACTUALLY HAS THAT MAINTENANCE AND OPERATION TAX AT 0.946, WHICH IS AGAIN, SET BY TE UH, BASED ON THE LOWEST, UH, VALUE PLUS 13 CENTS IN RICHMOND PENNS THAT WERE VOTED ON BY THE CITIZENS OF LANCASTER AT ONE POINT.
AND THEN, UH, THIS ACTUALLY HAS IT AT THE 0.4, 3 75.
AGAIN, PROPOSED RATES, PROPOSED BUDGET, UH, THAT WE WON'T ADOPT ANYTHING.
THERE WILL BE NO ACTION TAKEN UNTIL WE GET TO THE MEETING ON THE 30TH AND WE JUST CANNOT EXCEED THESE RATES THAT WE PUBLISHED.
AND THERE'S NO REASON TO DO THAT AGAIN.
UH, M O RATES SET BY THE STATE AND WE WON'T BE OVER THAT 43 CENTS THERE.
AND AGAIN, THIS JUST SHOWS THE ADDITIONAL, UH,
[01:00:01]
INCREASES, UM, BASED ON THE VALUES AND THOSE RATES.AND I SPLIT THAT UP INTO TWO SHEETS.
IT ACTUALLY RUNS US ONE, BUT IT WAS JUST REALLY HARD TO SEE.
THAT'S ACTUALLY ONE SHEET THAT'LL RUN IN THE PAPER.
I SPLIT IT ON THERE JUST SO IT'D BE A LITTLE EASIER.
JUST SHOWS LAST YEAR'S RATES, THIS YEAR'S RATES, RATES TO MAINTAIN YOUR SEEKING RATE, UM, WHAT YOUR FUND BALANCES ARE THERE AT THE BOTTOM AS WELL.
AND THEN AT THE END OF THE DAY, WHAT I WANTED TO END WITH TODAY IS, THIS IS ALL OF WHAT WE'VE TALKED ABOUT COMBINED ON ONE SHEET AND HOPEFULLY ON AUGUST 30TH WHEN WE GET THERE, THIS IS, THIS IS WHAT IT WILL LOOK LIKE WHEN WE ADOPT THE BUDGET FOR, FOR NEXT YEAR.
UH, AGAIN, YOU GUYS WILL ADOPT, UH, YOU'RE, YOU'RE REQUIRED TO ADOPT THE GENERAL FUND, UH, 1 99, 2 40 FOOD SERVICE AND THE 5 99 DEBT SERVICE.
AND THEN SET A TAX RATE THAT WILL FUND BOTH OF THOSE, UM, ALL OF THESE PROGRAMS. AGAIN, THE, THIS GENERAL FUND, THIS IS THE REVENUE THAT WE SHOWED.
THESE ARE THE EXPENSES THAT WE SHOWED ON THE OTHER PAGE.
I'M GONNA ROLL THAT JUST A LITTLE BIT.
IT'S MY, OH NO, THAT'S RIGHT THERE.
IF YOU JUST LOOK HERE, SO YOUR REVENUE AND YOUR EXPENDITURES MATCH SHOWS A ZERO BALANCE BUDGET.
THE ONLY ONE THAT'S NOT AS FOOD SERVICE.
AND THE REASON THAT FOOD SERVICE IS SHOWING, UM, A NEGATIVE IS BECAUSE WE HAVE EXCESS, UH, FUND BALANCE IN FOOD SERVICE AND WE WANNA MAKE CERTAIN THAT WE SPEND MORE THAN WE BRING IN BECAUSE WE HAVE MORE IN FUND BALANCE THAN WHAT WE NEED.
AND SO THAT'S ESSENTIALLY WHAT THAT IS.
AND ROGER AND I WORK TOGETHER TO COME UP WITH A PLAN TO, UH, WHAT, WHAT ITEMS THAT ARE ALLOWABLE ABOUT TDA TO REINVEST INTO OUR, UH, FOOD SERVICE PROGRAM, UH, TO, TO BRING THAT FUND BALANCE DOWN TO AN ALLOWABLE MAP.
AND I REALLY EXPECTED MORE QUESTIONS ALONG THE WAY, BUT I DEFINITELY, DEFINITELY OPENED UP QUESTIONS.
CAN YOU GO BACK TO THE SLIDE RIGHT BEFORE THE PAYROLL PERCENTAGE OF BUDGET? I HAD A QUESTION ONLINE.
ITEM 32, CAN YOU EXPO A LITTLE BIT ON WHY THERE WAS, WASN'T ANYTHING IN, UM, PHYSICAL YEAR 22? JUST GET RIGHT THERE.
THIS, I, I CAN GET AN ANSWER, A DEFINITE ANSWER TO ME.
BUT WHAT THIS LOOKS LIKE IS WE'VE, THIS IS SOMETHING THAT WASN'T BUDGETED IN THE PAST AND THIS FUND WE HIRED SOMEONE OR BUDGETING SOMETHING IN THAT CATEGORY IS WHAT I, TO KNOW EXACTLY WHAT THAT IS.
I WOULD HAVE TO GO LOOK THAT UP, BUT I CAN TELL YOU THAT THAT'S EXACTLY, THAT'S WHAT IT'S SHOWING ME IS WE DIDN'T HAVE ANYTHING.
BUT THAT'S A GOOD CATCH AND I'M GLAD YOU BROUGHT IT UP, BUT, AND I CAN GET A DEFINITE ANSWER.
IT'S NOT A LOT OF MONEY, UH, BUT IT IS SOMETHING THAT FALLS INTO THIS.
SO THESE, WE CAN TALK A LOT ABOUT THIS, BUT THESE ARE, UM, WE, UH, FUNCTION LEVEL, THESE ARE FUNCTION NUMBERS AND THAT'S THE LEVEL THAT WE ADOPT THE BUDGET AT.
AND SO FOR SOMETHING TO NOT BE IN HERE TO HAVE HERE, IT JUST MEANS THAT WE EITHER IDENTIFIED SOMETHING THAT SHOULD HAVE BEEN PAID OUT OF THERE THAT WAS PAID OUT SOMEWHERE ELSE AND MOVED OVER.
SO I DIDN'T KNOW, BUT I KNEW THAT WAS ONE OF THOSE TWO THINGS.
WE EITHER ADDED SOMETHING THAT WASN'T IN THERE BEFORE, OR I CAN'T SEE DANA SHAKER, WHICH MEANS, SO WHAT, WHAT IF, JUST LIKE WHAT I WAS, IT'S, IT'S A GREAT QUESTION CUZ IT ALLOWS TO ELABORATE.
THERE'S A LOT OF LINE CODES TO GO IN THIS.
AND AS PEOPLE GET HIRED AND MOVED AND THEN MOVE TO ANOTHER DEPARTMENT OR SOMETHING COMES ON AND THEN YOU SAY, OKAY, WELL WE, WE HAD 'EM CODED HERE, BUT THEN THEY MOVED TO THIS.
WELL, IF IT'S NOT COMMUNICATED, THEN WE MAY NOT CATCH THAT UNTIL LATER.
SO IT'S SOMETHING THAT'S BEEN BROUGHT TO THE ATTENTION, JUST LIKE, JUST LIKE WE WERE TALKING ABOUT IN 41.
UM, THERE ARE TIMES WHERE WE'LL SEE THAT AND WE'LL SEE IN THE FINANCE OFFICE THEY'VE BEEN CODING.
WE'RE LIKE, AH, THAT'S REALLY WHAT DOES THIS PERSON DO? WHAT'S THEIR ROLE? WHAT DO THEY DO? WELL THAT REALLY ISN'T THIS, IT REALLY FALLS INTO THIS CATEGORY.
SO I NOTICED THAT THERE'S, DOES SPECIAL EDUCATION GO UNDER GENERAL ADMINISTRATION OR WHAT DOES THAT FALL IN THIS ITEMIZATION? SO ANOTHER GREAT QUESTION.
SO SPECIAL EDUCATION IS ACTUALLY, UM, A SPECIAL SUBGROUP.
SO THERE'LL BE SPECIAL ED CODES THAT GO THROUGH A LOT OF THESE.
SO THERE'LL BE, THERE'S, I'M, I'M CERTAIN THAT THERE'S PROBABLY SOME INSTRUCTIONAL ADMINISTRATION THAT, THAT IS CODE SPECIAL ED.
THERE'S A DEFINITELY A LOT OF THIS THAT'S COVERED THE SPECIAL ED ON THE INSTRUCTIONAL SIDE.
UH, THE OTHER THING THAT'S NOT ON HERE THAT SPECIAL ED WILL GET IS THEY ACTUALLY HAVE THEIR OWN ALLOCATION.
THERE'S TWO ALLOCATIONS THAT GO DIRECTLY TO SPECIAL ED THAT ARE FEDERAL.
THE REASON THEY'RE NOT ON HERE IS WE MENTIONED AT THE END THAT WE ADOPT THE GENERAL FUND, THE FOOD SERVICE AND THE DEBT SERVICE 1 99, 2 40 AND UH, 5 99 FEDERAL OR FEDERAL FUNDS ARE UH, 200 CODES.
AND SO THEY, THEY'RE NOT ADOPTED AT THE BOARD LEVEL, BUT WE DO RECEIVE THOSE FEDERAL FUNDS AND WE USE THOSE FUNDS AS WELL.
AND THEN WE SUPPLEMENT THOSE FUNDS WITH
[01:05:01]
THIS.BUT IT WOULD BE SPREAD OUT ACROSS THIS ESPECIALLY, I MEAN ANOTHER GOOD EXAMPLE WHERE YOU WOULD SEE SPECIAL NEEDS IS IN TRANSPORTATION IN 34.
YOU'RE DEFINITELY GONNA SEE THAT THERE AS WELL.
SO WE IDENTIFY THOSE SEPARATELY IN A DIFFERENT CODE.
IT'S CALLED A PICK CODE AT THE END SO THAT WE CAN IDENTIFY AND, AND PULL ALL OF THOSE THINGS.
AS A MATTER OF FACT, DANIEL WAS WORKING ON A REPORT TODAY THAT WE SEND IN THAT WE HAVE TO MAINTAIN THAT.
IT'S CALLED MAINTENANCE OF EFFORT THAT WE HAVE TO MAINTAIN THAT WE SPEND THE SAME AMOUNT OR MORE EACH YEAR.
ANOTHER GREAT QUESTION IN THE SERVICES THEY RECEIVE AND HOW WE SUPPORT IT, IT CAN, IF YOU, A LOT OF THOSE, THOSE FUNCTIONS FOR SURE.
CAUSE YOU MAY HAVE A STUDENT WHO OBVIOUSLY SPECIAL TRANSPORTATION OR THE THE INSTRUCTIONAL PIECE, YOU KNOW, SOME SPECIAL NEEDS REGARDING THEIR FACILITIES AT THEIR SCHOOLS.
IF WE JUST ADD SOME LIFTS AND THINGS LIKE THAT AT, UM, TWO OF OUR ELEMENTARY SCHOOLS, THE BATHROOMS, STUDENTS WHO ARE WHEELCHAIR BOUND.
SO THOSE THINGS, I MEAN THAT IT COULD BE ANYWHERE IN THERE.
IF THERE AREN'T MORE QUESTIONS, WHAT I, I MIGHT END WITH IS THAT I, AT ONE, I APPRECIATE YOUR ATTENTION.
I APPRECIATE THE OPPORTUNITY TO SHARE THIS WITH YOU.
UM, WHAT CAN BE EXPECTED AT THE AUGUST 30TH MEETING? THERE SHOULD BE VERY LITTLE CHANGES TO US.
AGAIN, WE'RE TALKING ABOUT ABOUT A WEEK AND A HALF BETWEEN NOW AND AUGUST 30TH.
WE'LL GO THROUGH AND LOOK AT SOME OF THESE CODES, DOUBLE CHECK THOSE, WE'LL UPDATE THE PAYROLL BECAUSE AGAIN, THAT'S THE BIGGEST BUDGET IMPACT, BUT THAT, THAT'S GONNA BE PUT OUT FOR BOARD PACKETS NEXT WEEK.
UH, THE THE THINGS THAT WE WOULD BE LOOKING AT IS THE DEBT RATE, UH, ADOPTING, MAKING CERTAIN THAT WE'RE FIRM ON THOSE RATES.
BUT I WOULD NOT, I JUST WANT TO BE SURE THAT I EXPLAIN THAT I WOULDN'T EXPECT MAJOR CHANGES ON THE REVENUE SIDE OR ON THE EXPENDITURE SIDE.
AND, AND TO SHARE WITH YOU THAT JUST BECAUSE WE ADOPT THAT BUDGET, THIS IS A GOOD TIME TO TALK TO YOU ABOUT THE FACT THAT HOW MANY TIMES DID YOU AMEND THE BUDGET THIS LAST YEAR? AND I'M NOT ONE TO AMEND THE BUDGET.
I DON'T, I DON'T CARE TO AMEND THE BUDGET VERY OFTEN, BUT THIS IS A LIVING, BREATHING, WORKING DOCUMENT.
WHEN WE ADOPT THAT BUDGET, WE'RE ADOPTING IT AS A SNAPSHOT OF THAT DAY.
YOU GET INTO THE NEXT YEAR, YOU MAY HAVE AN EMERGENCY NEED, YOU MAY HAVE AN INCREASE IN ENROLLMENT, YOU MAY HAVE A DECREASE IN ENROLLMENT.
THERE ARE A LOT OF FACTORS THAT CHANGE THAT WE'RE GONNA MONITOR THROUGHOUT THE YEAR.
THAT'S WHY YOU GET A MONTHLY BOARD REPORT.
THAT'S WHY WE CHECK, UH, WE DO TEAM SNAPSHOT IN OCTOBER TO CHECK WHAT OUR ENROLLMENT IS.
AND SO WE'LL MONITOR THAT THROUGHOUT THE YEAR.
AND IF THERE COMES A NEED WHERE WE NEED TO INCREASE THE REVENUE OR WE NEED TO MAKE OR DECREASE REVENUE, WE'VE SEEN A DROP.
THOSE ARE THINGS WE'RE GONNA MONITOR.
SO I DON'T, I DON'T EVER WANT TO ALARM A BOARD WITH, GOSH, WE'RE ADOPTING AN 80 MILLION BUDGET AND WE'RE LOCKED INTO IT FOREVER.
WE'RE LOCKED INTO IT FOR A MONTH CUZ THE NEXT MONTH WE CAN AMEND IT IF WE HAVE TO.
AGAIN NOW IT'S NOT SOMETHING YOU WANT TO TOY WITH AND PLAY WITH.
YOU WANNA MONITOR AND, AND SAFEGUARD, BE AS GOOD AS YOU CAN.
BUT AGAIN, WHEN YOU START LOOKING AT WHAT IT WAS COMPARED TO LAST YEAR TO THIS YEAR, NOT A LOT OF CHANGES.
THE CHANGES ARE EXPLAINED BASED ON ENROLLMENT, YOUR CERTIFIED VALUES.
UH, AND THEN WE'LL MONITOR THAT THROUGHOUT THE YEAR.
I, I ALSO WANTED TO ADD I THINK, UM, 80% OF THIS, UH, THIS BUDGET ALREADY BECAUSE YOU APPROVED CONTRACTS FOR OUR STAFF, UH, WHETHER THEY'RE CERTIFIED OR LICENSED, A NON-LICENSED, UM, YOU'VE ALSO, UM, UH, VOTED ON UH, RESOURCES THROUGHOUT THE YEAR.
SOME OF THOSE CONTRACTS ARE ONGOING NEW THAT WAS PRESENTED TO YOU THIS SPRING.
SO THOSE ARE ALREADY IN THERE AS WELL.
UM, AND THEN THE LAST THING IS NOT LAST, BUT ONE OF THE MOST IMPORTANT I THINK IS THE COMPENSATION PACKAGE AS WELL THAT YOU'VE ALREADY VOTED ON.
SO ALREADY WE'RE SITTING HERE TODAY, 80% OF THAT BUDGET'S ALREADY ADOPTED BY YOU IN A SENSE BECAUSE YOU VOTED ALREADY TO GO FORWARD WITH THOSE THINGS.
SO TRULY AS TODD SAID, UM, THAT PIECE WILL NOT CHANGE MUCH CAUSE YOU'VE ALREADY TAKEN ACTION ON THAT.
UM, ALTHOUGH YOU HAVE TO DO IT FOR THE OVERALL BUDGET WITH THE FUNCTIONS COME WEEK AFTER NEXT.
UM, BUT THAT HAS BEEN ADOPTED WHERE WE HAVE SOME LEVEL OF FLEXIBILITY.
IT MIGHT BE ABOUT 3% WHAT'S SEE CAUSE HE SAID WE HAVE TO HAVE THE LIGHTS ON, RIGHT? YOU HAVE TO RUN WATER WITH THE EXCEPTION OF BELT LINE TODAY.
I'D LIKE TO HAVE A LITTLE RELAY ON THAT.
UM, BUT AGAIN, WE HAVE TO HAVE THOSE THINGS AS WELL.
SO, UM, WITH THAT SAID, UM, I'M GONNA TURN BACK OVER THE TODD OH YEAH, COURSE, COURSE FREE IN.
WE SPOKE ABOUT IT FURTHER DOING YOUR RESEARCH THAT YOULL FIND OUT THAT WE HAVE ANY WARRANTY IN THIS BUILDING FOR MAINTENANCE.
YOU KNOW, LOT OF THE SCHOOLS HAVE PROBLEM, THEY SOME OF FIVE YEARS, 15 YEARS OLD, SO THERE IS NO WARRANTY IN THE MAINTENANCES.
A LOT OF THINGS HAVE A LIFE CYCLE AND I, MY EXPERT IS SITTING BEHIND YOU.
[01:10:01]
INSTRUCTION MY CONSTRUCTION.SO I'M GONNA LET HIM ANSWER THAT QUESTION RIGHT HERE.
UM, I KNOW HE'S BEEN DISCOVERY A LOT OF THOSE THINGS THAT WE'VE HAD THAT THAT HAS FAILED ON ON US AND HE HAS NOT HAD A WARRANTY OR HAD A WARRANTY OR A LOT OF IT IS NO.
SO, UM, I WISH I COULD TELL YOU YES AND OTHERWISE, BUT ALSO I WILL SAY TO YOU, SOME OF IT'S JUST THE, THAT WE PURCHASED LIKE THE ON WEST MAIN PLEASANT RUN, BUT YOU HAVE TWO OF THEM, UH, OR SIX OF THEM ON THE FIRST, SECOND, THIRD STORY FOR WHAT THE FLASH ARE.
AND THERE'S ONE THAT THEY'RE ALL 3 1 30 TON UNITS AND ONE OF FROM THE GET.
AND THAT WAS A DECISION MADE WHEN YOU WERE BUILDING THAT, THAT FACILITY.
UM, AND I CAN TELL YOU IT'S ONE THAT I KNOW JUST FROM MY EXPERIENCE IN UH, EDUCATION AND CONSTRUCTION, THAT WAS A TERRIBLE UNIT.
TERRIBLE CAUSE OF WHAT WE'RE EXPERIENCING RIGHT NOW.
UH, KEEP GOING BACK FORTH WITH THAT UNION AT THE HIGHEST MIDDLE SCHOOL.
YEAH, I'VE BEEN TOLD THAT THAT PURCHASE WAS MADE JUST BASED OFF THE SQUARE FOOTAGE, COST PER SQUARE FOOTAGE FOR THE, BUT ALSO WE GOT RUN THIS PAST SATURDAY AND THERE'S ALSO, YOU'RE LOOKING AT THAT MEETING AIR THAT INSTALLED IT DUCT TAKE THE, I CAN'T SAY AS THE BOARD MEMBER.
SO A LOT OF THINGS WENT NEGLECT.
AND SO NOW WITHIN THE LAST YEAR, EVERYTHING IS COMING FROM UNDER THE, IT'S FIXED.
SO IT'S NOT JUST THE A I SPEAKING UP BEFORE WE GOT A LOT OF NEW BUILDINGS AND THEY ALL FALL.
YOU WOULD THINK YOU WOULD HAVE SOME WARRANTY, YOU GOT BILLINGS, YOU KNOW, SEVEN OR EIGHT YEARS OLD THAT YOU, THAT WAS THE BILLING AT THAT TIME ON THE CONTRACT AND THE WARRANTY.
THAT'S WHEN THAT SHOULD HAVE BEEN LOOKED AT.
IF YOU GONNA GIVE US A FIVE YEAR WARRANTY, A 30 YEAR WARRANTY OR A 20 YEAR WARRANTY.
SO A LOT OF THINGS WEREN'T NEGLECT AND SO IT WENT UNDONE NOW AT BOARD MEMBER.
THAT'S WHAT I UNDERSTAND THAT HAD HAPPENED.
IT IS UP TIME AND PAY UP TIME.
IT IS CLEAN UP AND I HAVE A LOT OF PRINCIPALS SITTING HERE AND I KNOW THEY KNOW THEIR FACILITIES BETTER THAN I DO.
BUT WHAT I CAN SAY IS THAT, UM, WE HAVE REALLY MADE AN EFFORT THIS YEAR.
AND AGAIN, I'M NOT GOING ASK ANY OF THEM TO SPEAK IF THEY WANT TO.
UM, YOU'VE ADDRESSED A LOT OF THINGS THAT A LOT OF BUILDINGS, UM, THAT HAVE BEEN THINGS THAT HAVE BEEN DIDN'T HAPPEN OVERNIGHT, I'LL SAY THAT.
SO WE'VE GOT SOME NEW FACILITIES.
THOSE SOMETIMES FAIL US, BUT OUR, OUR OLDER BUILDING AS WELL, WE'RE TRYING TO MAKE SURE THAT WE ALL, I CAN TELL YOU FROM CONTINUE TO ADDRESS THOSE I DT IF ANY WANTS TO SAY ANYTHING, I THINK YOU WANT US TO SAY SOMETHING.
SO I'M, I'M TAUGHT THE PEOPLE AND I'M THE TERM PRINCIPAL AT, SO TODAY WAS A EXAMPLE OF HOW THE FACILITY IS KIND OF, EVERY TIME THERE'S A STORM OF LIGHTING, RAIN, UM, WE HAD WATER IN THE, IN THE BUILDING TODAY WE HAD NO POWER.
AC WENT OUT SO WE HAD TO CANCEL SCHOOL.
AND SO THIS IS THE SECOND TIME THIS SCHOOL YEAR THAT I'VE HAD TO TRANSITION MY STAFF OR STUDENTS.
SO THERE WAS A POWER OUTAGE WHEN ONLY TEACHERS WERE THERE AND I HAD TO COME OVER HERE AND DO TRAINING AND THINGS LIKE THAT.
SO I THINK THAT'S EVIDENCE OF THAT THAT BUILDING KIND OF NEEDS A LOT OF WORK, YOU KNOW, JUST CAUSE IT RAINS OR WIND BLOWS THE SCHOOL SHOULDN'T, YOU KNOW? TOTALLY.
AND IT HAPPENS A LOT, LOT UM, AT THIS PARTICULAR FACILITY.
UM, AND BELT LINE IS ONE OF THE OLDER BUILDINGS, UM, IN THE DISTRICT TO MOVE THE MILL BROKE MY NEIGHBORHOOD, SAME THING.
RAIN THE WIND, THE LIGHTS OUT, QUESTIONS NOW, NOW ARE FOCUSING ON TRYING TO ADDRESS THINGS NOT THAT LEADERSHIP.
I THINK WE HAVE A GOOD GROUP TO UNDERSTAND.
UH, WE HAVE TO HAVE THESE THINGS, UH, LOOK AT FIXED AND ITS TIME, MONEY AND, BUT ONE IN THE COMMUNITY HAVE THEM TO AND SUPPORT THAT BECAUSE AT THE END OF THE DAY WE'RE GONNA' HAVE TO HAVE A, YOU CAN'T IDEA THEIR WAY EVERY DAY OR RIGHT
[01:15:01]
THE DAYWHAT ARE WE DOING TO UH, TO ADDRESS THIS ISSUE RIGHT NOW? TO ADDRESS THE ISSUE WITH THE POWER WITH BELT LINE.
BELT LINE, CORRECT? YES MA'AM.
WHAT ARE WE DOING TO ADDRESS THE ISSUE WITH BELT LINE RIGHT NOW? THAT POWER ISSUE IS ADDRESSED UH, BY NOON THIS MORNING AND UH, I WAS TOLD THAT BE BACK ON BY ENCORE TIL FOUR, BUT WE'RE AT THE MERCY OF ENCORE FOR DELIVERING POWER.
WHAT ABOUT THE LEAKING ONE? THE LEAK LEAK WATER THAT'S BEING LOOKED AT WITHS TOMORROW? ACTUALLY IS THIS YOUR FIRST TIME, IS THIS YOUR FIRST YEAR HERE? I'M SORRY? HOW MANY YEARS YOU BEEN HERE? I'VE BEEN IN FOR ONE YEAR.
WE'VE ALMOST THE CRAZIEST HELLO.
SO YOU HAVE HAD THAT LEAKAGE BEFORE? YES, YES.
AND I KNOW THAT, UM, EFFORTS HAD BEEN MADE TO BRING IN, UM, CONTRACTORS TO DO ROOFING OF CERTAIN SECTIONS OF THE ROOF, LIKE PATCH PATCHING CERTAIN AREAS.
UM, AND IT JUST SEEMS LIKE ONCE YOU GET THAT AREA FIXED, THEN THERE'S ANOTHER AREA.
SO I KNOW WE PROBABLY NEED A ROOF, BUT IT'S EXTREMELY EXPENSIVE.
BEFORE YOU NEED A ROOF, YOU PROBABLY NEED TO KNOCK THE BUILDING DOWN.
SO, AND THAT ROOF WAS ON MY LIST OF CAPITAL HOUSING THAT ROOF AND ALSO PARKS ELEMENTARY AND JD.
WHAT ARE WE DOING TO TAKE CARE OF THIS ISSUE UNTIL WE GET AN APPROVAL TO GET THIS TAKEN CARE OF? LIKE SHE SAID, WE CALL OUT CONTRACTORS AND THEY, THEY TAKE CARE OF AND IT'S THE SAME CONTRACTED PRIOR OR IS THIS AND IS THERE A WARRANTY OR ANY TYPE OF RECOURSE OR ANY TYPE OF ACTION AS FAR AS SOMEONE PREVIOUS, THEY WARRANTED THE WORK THAT THEY DO RIGHT IN THE AREA.
BUT LIKE, LET'S SAY LIKE SHE SAID, YOU FIXED IT ONE SPOT, YOU FINALLY LEAK DOWN THE WAY, THERE'S A MEMBRANE ON THAT ROOF AND YOU CAN FIX THAT ONE SPOT AND THEN IT COULD POUR OFF OVER TO THE OTHER SIDE AND COME OUT ANOTHER AREA.
SO UNTIL WE GET, UNTIL THAT COMES BEFORE US.
I GUESS MY NEXT QUESTION WOULD BE THE PERSON THAT WILL COME OUT TO TAKE A LOOK AT THE ROOF, ARE THEY REVIEWING, ANALYZING WHERE THIS LEAK IS DOING A TEST OR WHAT HAVE YOU? CAUSE I KNOW IT CAN BE DONE BUT TO UH, TAKE CARE OF THAT ISSUE AND UNFORTUNATELY I'M GONNA USE THE UGLY WORD PATCH OR SOME TYPE OF FIX UNTIL WE ACTUALLY GET SOMEONE OUT HERE REPLICABLE TO UM, FIX THAT PERMANENTLY.
I I WILL HAVE ONE COMING FORWARD HERE SOON.
THIS BOARD MEETING, THE BOARD MEETING FORD HALL AND THAT THAT'LL 20 YEAR WARRANTY.
SO TIME THERE'S AN ISSUE WITH IT.
WE, I'M TALKING ABOUT THIS RIGHT NOW.
THAT WOULD BE IN THE PROBLEM RIGHT NOW.
BUT I'M TALKING ABOUT HE'S FROM WHAT I'M RECEIVING, HE'S TALKING ABOUT THEY'RE COMING OUT.
BUT THIS WILL BE, SO YOU'RE TALKING ABOUT THIS THE SAME COMPANY THAT'S COMING OUT FOR THIS HERE? I'M SAYING IT COULD BE, COULD BE.
THERE'S A PROCESS WE HAVE TO FOLLOW, WE HAVE TO BID IT OUT.
AND SO IT COULD POSSIBLY BE THE SAME COMPANY, SOME OF IT.
I UNDERSTAND THE PERMANENT SIDE OF IT.
I'M TALKING ABOUT THE THE TAKING CARE OF THIS RIGHT NOW.
CAUSE SEE IF IT RAINS TOMORROW THEN WE HAVE NO SCHOOL TOMORROW.
AND AGAIN, THESE ISSUES DIDN'T HAPPEN OVERNIGHT.
I'M JUST TALKING ABOUT MOVING FORWARD.
LIKE WHAT ARE WE DOING RIGHT NOW TO TAKE CARE OF IT? YEAH, WELL AS SOON AS IT DRIES UP WE HAVE REPAIR TEAM COMING OUT REPAIR AND THAT TAKES CARE OF THAT OFFICE.
BUT THAT, THAT'S NOT WHAT SHUT DOWN THE SCHOOL POWER BEING OFF COULDN'T WORK.
I THINK THERE WAS A QUESTION ABOUT THE, UH, GENERATOR EARLIER.
WE DO HAVE GENERATORS AS I SHARED WITH YOU EARLIER TODAY, BUT I DIDN'T SHARE WITH THE REST OF THE BOARD WHEN YOU ASK THAT QUESTION IS THAT WE DO HAVE GENERATORS, BUT THAT'S ONLY A LEVEL ONE IN ALL OF OUR BUILDINGS.
MUSIC IT ONLY DO KIND OF SOME LIGHTS AND MAJOR AREAS IN THE HALLWAYS.
IT DOES NOT RUN HVAC, OTHER BIGGER UNITS.
UM, AND YOU ASKED ME, WELL HOW, HOW OTHER SCHOOLS DONE THAT? AND I SAID I'VE HAD UH, SHARED SERVICES WITH MUNICIPAL GOVERNMENTS BECAUSE OUR SCHOOLS WERE UTILIZED AS EMERGENCY SHELTERS AND SO THEY WOULD PURCHASE AND PUT GENERATORS IN OUR SCHOOLS THAT WOULD BE UTILIZED FOR EMERGENCY SHELTERS THAT COULD RUN ALL OF THOSE LEVELS.
UM, IN ANY OF OUR S WE ONLY HAVE THE LEVEL ONE IN ALL OF I I KNOW THAT.
I DON'T KNOW WHICH BUILDINGS ARE I.
YOU I HOPE THAT LINE DOES NOT
[01:20:07]
STILL TO GET MOVES.THAT'S BEEN EXPERIENCE HOW THAT DO YOU ANY QUESTIONS? JUST ONE OF THE THING THIS UM, UH, WHAT I'M HEARING IS WE HAVE UH, LOTS OF NEEDS AND THE PROBLEM IS DEFERRED MAINTENANCE, RIGHT? YET FROM THE CURRENT BUDGET YOU PRESENTED, WE'RE TAKING MONEY FROM MAINTENANCE.
BUT WHY WOULD WE DO THAT? RIGHT? INSTEAD OF DOUBLING DOWN TO GET SOME OF THESE NEEDS FIXED.
WELL THAT'S WHAT YOU PRESENTED, RIGHT? RIGHT.
THAT'S UP COMING BACK TO THE SLIDE.
SO WHERE THIS, THIS IS WHERE YOU'RE SAYING WE'VE TAKEN THIS OUT OF MAINTENANCE, WE'VE ACTUALLY NOT TAKEN THAT OUT OF MAINTENANCE.
THIS BUDGET IS REDUCED TO BE ABLE TO BALANCE THIS.
WE DID A 1.8 MILLION BUDGET AMENDMENT AT THE LAST MEETING TO MAKE THOSE FUNDS AVAILABLE IMMEDIATELY AND TO BE ABLE TO USE, NOW THAT'S OUT OF THIS BUDGET, AN ADDITIONAL 1.4 MILLION IS ALSO BEING USED TO OFFSET THAT AS WELL.
SO WHILE THIS SHOWS LESS MONEY BEING SPENT, IT'S BEEN, THAT'S ALREADY BEEN MOVED OVER.
THAT MONEY'S BEEN ALLOCATED ALREADY.
AND THAT WAS THE WHOLE PURPOSE OF TAKING THAT MONEY OUT OF FUND BALANCE, MOVING THAT OVER, MAKING IT AVAILABLE.
AND YES, WE DID TECHNICALLY TAKE IT OUT OF THIS YEAR'S BUDGET, BUT WHEN WE TOOK IT OUT OF THIS YEAR'S BUDGET, WE JUST MOVED IT OVER TO THE CURRENT YEAR, MADE IT AVAILABLE TO HIM.
SO THE BUDGET HAS NOT BEEN REDUCED.
AND FURTHERMORE, HOW MUCH, HOW MUCH STER HAS BEEN MOVED IN? FIVE, FIVE, $6 MILLION.
SO ADDITIONAL 5, 6, 5 OR $6 MILLION HAS BEEN MADE AVAILABLE OUT FEDERAL FUNDS TO DO DEFERRED MAINTENANCE AS WELL AS APPROPRIATING FUNDS EARLY.
UH, AND I'VE NEVER SEEN THAT DONE ANYWHERE I'VE EVER BEEN.
AND IT'S A, I MEAN AGAIN, A 25 YEARS AND, AND I THINK IT'S AGAIN AN EFFORT, A CONSERVED EFFORT TO DRIVE MAINTENANCE AND TAKE CARE OF THOSE THINGS.
ALL I'M SAYING IS IT LOOKS LIKE WE NEED THAT TOO.
WE CAN YOU DO A BOND JUST ON MAINTENANCE AND THEN WHATEVER YOU FIX, MAKE SURE WE HAVE THE 20 YEAR WARRANTIES.
NOT INSTEAD OF TRYING TO JUST GET A BOND BILL ALL NEW WHATEVER YOU NEED FIXED.
IF YOU SAY YOU NEED 35 MILLION TO REPAIR EVERYTHING, COULD YOU GO INTO A BOND JUST ON THAT? BUT SINCE YOU DONE A BOND, YOU GET MUCH AS YOU CAN LIKE MOST OF THEM, RIGHT? THE BOARD CAN, CAN DIRECT TO DO THAT IF THEY LIKE TO.
WELL IT'S, THAT'S NOT MY CALL.
IF THE BOARD'S ACTION LET'S ROLL.
IS IT THE TIMING CORRECT? I WOULD PROBABLY TELL YOU NO.
CAUSE WE'RE CONTINUING TO IMPROVE OUR CREDIT RATING AND TO ME THAT'S IMPORTANT BECAUSE THAT MEANS I DON'T HAVE TO GO AND ASK TAXPAYERS FOR MORE MONEY DOWN THE ROAD.
SO LET ME GET THERE WITH TRYING TO REPAIR WITH MONEY THAT WE DO HAVE.
WE DO HAVE, CAUSE I DON'T, I I'M NOW TAXPAYER HERE.
I DON'T WANT YOU ASKING ME FOR MORE MONEY WHEN I KNOW YOU HAVE RESERVES.
I WANT YOU FIRST BEFORE YOU COME IN.
I MOST OF 'EM PAY FEED, GET MORE MONEY FROM THE PLACE.
THAT WAS JUST A TEST
YOU FIX IT WHERE PEOPLE WANNA MOVE TO YOUR DISTRICT.
YOU KNOW, INSTEAD OF HAVING 500 PEOPLE PAY THE TAX, YOU GET 800 PEOPLE.
AND THE WAY WE DO THAT, THAT'S HOW YOU DO CONTINUE TO IMPROVE OUR PROGRAMS, IMPROVE THOSE TO ENSURE THAT WE HAVE SAFE AND BUILDING WHERE KIDS IS CONDUCIVE TO LEARNING.
SO WE, WE'LL CONTINUE TO FIND NO ONE WANTS MOVE TO
I'M GLAD YOU EVERYBODY TAX, TAX TAX.
WELL I THINK TIED TO TAX IN ADA, IF IF OUR STUDENTS, LIKE IT WAS SAID, WE GOT 7,100 AND ONLY 55,000 SHOW UP.
WELL YOU LOOK ALL AROUND THE METRO TOOK PLACE, CAROL.
PEOPLE ARE BUILDING APARTMENTS.
SO WE GOTTA LOOK AT WHAT'S GOING ON HERE AT THAT'S WHAT I'M SAYING.
OTHER WAYS YOU PROVIDE GOOD EDUCATION OR YOU GONNA PAY THE COST.
I WOULD ALSO ASK THAT WE TALK WITH OUR LEGISLATORS
[01:25:01]
BEYOND THIS TABLE SIMPLY CAUSE OF THE FACT THAT TEXAS IS ONE OF THE LAST STATES THAT FUNDS THEIR KID, THEIR STUDENTS BASED ON ADA.WHEN WE DON'T REALLY, WE CAN'T REALLY CONTROL WHO COMES TO OUR BUILDINGS EVERY DAY.
WE CAN ENTICE, WE CAN ENGAGE, BUT WE CANNOT MAKE SURE WE CAN PROVIDE THEM WITH UH, UH, SERVICES AND BUSES, ET CETERA.
IT IT TRULY, THAT IS SOMETHING THAT REALLY NEEDS TO GO.
A LOT OF STATES THAT MOVE AWAY FROM THAT.
SO WE HAVE 71 KIDS TURNS ZERO UP, WE'RE FUNDED FOR 71.
CAUSE IF WE DON'T GUESS WHAT THAT DIFFERENCE IS ON THE LOCALITY, THAT'S WHY YOU SEE THAT GOING THIS WAY.
UM, AND I WANT EVERYBODY TO JUST KIND OF THINK ABOUT THE FACT THAT WHAT'S GOING ON WITH THE TEXAS BUDGET, THE STATE BUDGET.
YOU DON'T HEAR ANYBODY TALKING ABOUT SHORTFALL SHORTCUT.
BUT IF YOU LOOK AT THE LAST EIGHT YEARS, YOU SEE 68 TO 7,100 STUDENT.
BUT JUST ECONOMIC DEVELOPMENT THAT'S BRING TAX FAIR.
BUT IF YOU HAVE MORE HOMES AND OKAY.
GO, YOU CAN'T JUST TAX PEOPLE CAUSE YOU NEED MONEY.
MR. GARRISON, DO YOU HAVE ANYTHING ELSE YOU WANNA SHARE OR THIS IT NO MA'AM.
BOARD ANY OTHER QUESTIONS FOR MR. GARRISON? OKAY.
THE DURING THE TIME AT 9:00 PM ALL A AJOUR BOARD.
AYE, ADJOURN AT SIX AT 9:00 PM UH, BOARD AND CASH.