Meeting 2May 17, 2018

Agenda

• Recap• Closer Look at Priorities Part 1• Tour• Small Group Discussion• Large Group Discussion• School Finance 101 & KISD Financial Overview• Closing

RECAP: Our Purpose and ChargeServe in an advisory capacity to the Board of Trustees and Administration to:

• Consider the educational needs of all students and align with the district’s mission, vision and goals

• Represent the entire community, its values and perceptions in the facility-planning process

• Assess and prioritize the district’s current and long-term facility needs, including new construction, renovations and other capital improvements

• Bring forward recommendations to the Board of Trustees as to how to address the district’s facility needs

Committee Website:www.kisdcfac.net

RECAP: Committee Process

• Work as a collective to prioritize needs and define recommendations. • Presentations, materials and other resources will be posted online for

committee member use and public consumption.

CLOSER LOOK AT PRIORITIESPART 1

Committee’s Highest Priorities:

Other Top PrioritiesADA Access on PlaygroundsECC

• Cover walkway between TCDC buildings

• Decking and Handrails Repaired or Replaced as Needed

Daniels• Main building and Annex Fire

Alarm SystemNimitz

• Remove and Replace Storm Drain Culvert

Starkey• Parking - # of Spaces, Handicap• Handicap accessibility at front of

school

Tally• Gym floor needs replacement

BT Wilson/HPMS/Tivy Education Center• Covered Walkways Repaired

BTW Gym• ADA Access• Bathroom renovations needed

List of Top Priorities Per Campus• Elementary Schools:

• Starkey Elementary School• Tom Daniels Elementary School• Nimitz Elementary School• Tally Elementary School

• High Schools• Tivy High School• Tivy High School Ag Building• Hill Country High School

• Support• Tivy Education Center• Central Office

• Part 2 (to be discussed next meeting)• Middle Schools: • BT Wilson 6th Grade Campus• Hal Peterson Middle School

Starkey ElementaryPriority Needs:• Safety & Security• Replace roof• Electrical• HVAC• Site Drainage• Parking• Kinder Open Concept• ADA Upgrades (Code)

Stats:• Built in: 1948, 1988• Capacity: 620• Enrollment: 540

TOUR

Tom Daniels Elementary

Priority Needs

• Safety & Security• Replace Roof• HVAC• MEP• ADA Upgrades (Code)

Stats:• Built in: 1966, 1987,

1994• Capacity: 696• Enrollment: 633

Nimitz Elementary

Priority Needs:• HVAC• Site Drainage• MEP• Safety & Security• Replace/Repair Roof• ADA Upgrades (Code)

Stats:• Built in: 1987• Capacity: 601• Enrollment: 471

Tally ElementaryPriority Needs:• Replace gym surface• Site Drainage• Safety & Security• MEP• ADA Upgrades (Code)

Stats:• Built in: 2002• Capacity: 602• Enrollment: 505

Tivy High SchoolPriority Needs:• Safety & Security• Site Drainage• HVAC

Stats:• Built in: 2003• Capacity: 2,000• Enrollment: 1,430

Tivy High School Ag BarnPriority Needs:• Safety & Security• MEP• Roof Repair

• Structural • Capacity • Functionality

Tivy Education Center & Early Childhood Campus

Priority Needs:• Replace Roof on ECC Cafeteria• Cover decking between TCDC

buildings• Replace Wood Decking/Handrails

at ECC• Replace Roof on Special Education,

G-Wing, and Alamo College Annex• ADA Upgrades (Code)

Stats:• Built in: Varies• Capacity: 310• Enrollment: 280

Central Office

Priority Needs:• Replace Roof on Technology Office, Staff Development Center• Repair Roof of CO Building• Replace condensation drain lines and chiller/boiler supply lines at CO

Building• Replace rotting window frames and exterior trim work at CO Building

SMALL GROUP DISCUSSION

Small Group Discussion• Each table is assigned a different campus • Focus your review and discussion on the priority one needs for your

campus• For reference, a handout is available at each table with a listing of all

priorities for your campus. A priority two or three item can be brought to the large group for consideration and further discussion if your small group agrees to do so.

• Members from the Facilities Planning Committee (Phase 1) are available at each group. District Administration and Huckabee team members are also here to help.

Small Group Discussion• Select a note taker and a spokesperson for your group (will report

out during large group)

Guiding Questions:• How would you describe your campus?• Are there any absolutes/ non-negotiables for your campus?• Are there any items not of concern?• What is missing?

LARGE GROUP DISCUSSION

Let us Know• Spokesperson for each group, share your key take-aways and

questions

SCHOOL FINANCE 101

School Finance: The Big Picture

A school district’s budget is generated from three sources:

• Federal funding

• State funding

• Local funding (tax effort)

State26%

Local73%

Federal1%

Federal Funding• Appropriated for special programs or to provide services to

a specific group of students

• Cannot be used to replace state or local dollars to fund aprogram

• About half of federal funds go directly to school districts• The remainder goes to the state or to regional service

centers

FEDERAL 1%

State FundingFoundation School Program• Provides state funding to school districts• Administered by TEA• Meant to ensure that all school districts,

regardless of property wealth, receive "substantially equal access to similar revenue per student at similar tax effort, considering all state and local tax revenues of districts after acknowledging all legitimate student and district cost differences.”

STATE26%

State Funding

State funding system is COMPLICATED.

The simplest explanation:

• Each district receives different level of funding• Basic funding levels are primarily established by looking at “wealth per

student”• Tax base divided by number of students

• Lower “wealth per student” = more state funding• Higher “wealth per student” = less state funding

M&OCapped at $1.04 per $100 of

property value

If a district wants to raise the rate beyond that, it can only go

as high as $1.17 but must receive voter approval in a Tax

Ratification Election.

I&SCapped at $0.50 per $100 of

property value

Every cent requires voter approval in a Bond Election.

Local Tax Effort

Local Tax Effort

• Generated from property taxes (not sales taxes)• Called “ad valorem” taxes• Each year, a school district adopts two tax rates:

• Maintenance & Operations (M&O)• Interest & Sinking (I&S)

M&O, 1.04

I&S, 0.14

Maintenance & Operations

M&OSalaries

Transportation

Supplies

Utilities & Maintenance

Chapter 41 (Recapture)

CITIZEN- House Repairs

- Car fuel & service

- Groceries

- Cleaning supplies

- Utilities

DISTRICT

Interest & Sinking

I&SExisting Building Renovations

New Building Construction

Technology

Land

School Buses

DISTRICT CITIZEN- New home purchase- House renovations- Land for a home- New kitchen appliances- New home computer/ technology

M&OThe Annual District Budget

is passed by theBoard of Trustees.

89% of KISD’s M&O budget pays for salaries, fuel and

utilities.

I&SI&S funds may only be

used to repay debt.

They may not be used for salaries, utilities or other

day-to-day expenses.

Local Tax Effort

Kerrville M&O Budget

Salary80%

Contracted Services9%

Supplies4%

Operating Costs7%

Capital Outlay1%

Other7%

2018-19 Budget Assumptions• Tax rate:• M&O - $1.04• Debt Service - $.14

• Projected Enrollment:• Average Daily Attendance – 4,651• Increase of 10 students = $50,000

Fund Code/Object Code - Funding Source199/5812 - Foundation School Fund $7,896,475199/5811 - Available School Fund $958,687599/5829 - Existing Debt Allotment (EDA) $0599/5829 - Instructional Facilities Allotment (IFA) (Bo $0599/5829 - Instructional Facilities Allotment (Lease P $0TOTAL 2017-18 FSP/ASF STATE AID $8,855,162

Fund Code/Object Code - Funding Source199/5812 - Foundation School Fund $5,752,430199/5811 - Available School Fund $2,075,810599/5829 - Existing Debt Allotment (EDA) $0599/5829 - Instructional Facilities Allotment (IFA) (Bo $0599/5829 - Instructional Facilities Allotment (Lease P $0TOTAL 2018-19 FSP/ASF STATE AID $7,828,240

Reduction in State Aide -$1,027,000Increase in Local Revenue $535,000

2018-2019 Revenue -$492,000

Sheet1

Fund Code/Object Code - Funding Source

199/5812 - Foundation School Fund$7,896,475

199/5811 - Available School Fund$958,687

599/5829 - Existing Debt Allotment (EDA) (Link to Detail Report)$0

599/5829 - Instructional Facilities Allotment (IFA) (Bond) (Link to Detail Report)$0

599/5829 - Instructional Facilities Allotment (Lease Purchase) (See Link Above)$0

TOTAL 2017-18 FSP/ASF STATE AID$8,855,162

Sheet1

Fund Code/Object Code - Funding Source

199/5812 - Foundation School Fund$5,752,430

199/5811 - Available School Fund$2,075,810

599/5829 - Existing Debt Allotment (EDA) (Link to Detail Report)$0

599/5829 - Instructional Facilities Allotment (IFA) (Bond) (Link to Detail Report)$0

599/5829 - Instructional Facilities Allotment (Lease Purchase) (See Link Above)$0

TOTAL 2018-19 FSP/ASF STATE AID$7,828,240

KISD FINANCIAL OVERVIEW

KISD Tax Rate

$1.04

M&O TAX RATE

$0.14

I&STAX RATE

KISD TOTAL TAXRATE

$1.18per $100

of property value

Tax Rate History

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18*I&S 0.150 0.150 0.150 0.140 0.140 0.140 0.140 0.140 0.140 0.140M&O 1.030 1.030 1.030 1.040 1.040 1.040 1.040 1.040 1.040 1.040

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

I&SM&O

* Projected

Area 5A School District Tax Rates

$1.18 $1.19

$1.31

$1.52

$1.44

$1.28

$1.43

$1.33

$1.42

1.32

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State Average = $1.30

Avg. School District Debt In Texas

*State Debt Data is from FY 2016*State Tax Rate Data is from FY 2017

Texas State Comptrollers, (2017, August). School District Rates and Levies. Retrieved from https://comptroller.texas.gov/transparency/local/debt/isds.php

STATE AVERAGE*DEBT $115,009,313

*I&S $.21

KERRVILLE ISDDEBT $17,290,136

I&S $.14

Kerrville ISD DebtKERRVILLE INDEPENDENT SCHOOL DISTRICT

UNLIMITED TAX SUPPORTED DEBT SERVICE

U/L Tax Refunding Bonds U/L Tax Refunding Bonds, U/L Tax Sch Building Bonds,Series 2004 Taxable Series 2013 Series 2013 Totals payments Yearly Yearly Yearly Outstanding Outstanding

Principal Interest Principal Interest Principal Interest Feb/Aug Totals Principal Interest Amounts Balance Principal2/15/2012 - 596,250 - - - - 596,250 - - -8/15/2013 2,190,000 234,500 175,000 190,385 - - 2,789,885 - - -

8/30/2013 - - - - - 18,834 18,834 2,365,000 1,039,969 3,404,969 37,616,973 27,310,000 2/15/2014 - 179,750 - 226,713 - 107,161 513,624

8/15/2014 2,290,000 179,750 25,000 226,713 55,000 116,903 2,893,366 2,370,000 1,036,990 3,406,990 34,212,004 24,940,000 2/15/2015 - 122,500 - 226,463 - 116,353 465,316

8/15/2015 2,395,000 122,500 30,000 226,463 40,000 116,353 2,930,316 2,465,000 930,632 3,395,632 30,805,014 22,475,000 2/15/2016 - 62,625 - 226,163 - 115,953 404,741

8/15/2016 2,505,000 62,625 30,000 226,163 40,000 115,953 2,979,741 2,575,000 809,482 3,384,482 27,409,382 19,900,000 2/15/2017 - - - 225,713 - 115,553 341,266

8/15/2017 - - 2,650,000 225,713 40,000 115,553 3,031,266 2,690,000 682,532 3,372,532 24,024,900 17,210,000 2/15/2018 - - - 185,963 - 115,153 301,116

8/15/2018 - - 2,720,000 185,963 40,000 115,153 3,061,116 2,760,000 602,232 3,362,232 20,652,368 14,450,000 2/15/2019 - - - 145,163 - 114,753 259,916

8/15/2019 - - 2,800,000 145,163 45,000 114,753 3,104,916 2,845,000 519,832 3,364,832 17,290,136 11,605,000

Questions?

CLOSING

Homework:What is 21st Century Learning? What are Today’s Learning Environments?

Next Meeting: 3

THURSDAY, JUNE 76 p.m.Tom Daniels Elementary School

Agenda• Closer Look at Priorities Part 2• 21st Century Learning

Thank you!

Slide Number 1AgendaRECAP: Our Purpose and ChargeCommittee Website:�www.kisdcfac.netCLOSER LOOK AT PRIORITIES�PART 1Committee’s Highest Priorities:Other Top PrioritiesList of Top Priorities Per CampusStarkey ElementaryTOURTom Daniels ElementaryNimitz ElementaryTally ElementaryTivy High SchoolTivy Education Center & Early Childhood CampusCentral OfficeSMALL GROUP DISCUSSIONSmall Group DiscussionSmall Group DiscussionLARGE GROUP DISCUSSIONLet us KnowSCHOOL FINANCE 101School Finance: The Big PictureFederal FundingState FundingState FundingLocal Tax EffortLocal Tax EffortMaintenance & OperationsInterest & SinkingLocal Tax EffortKerrville M&O Budget 2018-19 Budget AssumptionsSlide Number 34KISD FINANCIAL OVERVIEWKISD Tax RateTax Rate HistoryArea 5A School District Tax RatesAvg. School District Debt In TexasKerrville ISD DebtQuestions?CLOSINGHomework:�What is 21st Century Learning? �What are Today’s Learning Environments?Thank you!