[00:00:03]
IT IS 5:30 ON THURSDAY, JUNE 16TH.
[B. CALL TO ORDER]
I CALLED THE MEETING OF THE ROUND ROCK INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES PUBLIC HEARING ON THE PROPOSED 2022 2023 BUDGET AND TAX RATE.TRUSTEE VESSA TRUSTEE WESTON TRUSTEE FELLER TRUSTEE HARRISON AND TRUSTEE BONE ARE PRESENT.
TRUSTEE WEIR WILL BE JOIN US VIRTUALLY.
SHE WILL BE JOINING US A LITTLE BIT LATE.
SO SHE IS NOW TRAVELING BACK TO HER HOUSE SO THAT SHE CAN JOIN US FROM THE COMFORT OF HER HOME.
[D. PUBLIC COMMENTS TO AGENDA ITEM E. ONLY]
SPEAK ON ITEMS ON THE AGENDA.WE ASK THE CONCERNS OR COMPLAINTS REGARDING SPECIFIC INDIVIDUALS NOT BE RAISED IN THIS PUBLIC FORUM.
THE BOARD REQUESTS THAT COMMENTS, WHETHER POSITIVE OR NEGATIVE, BE COURTEOUS AND RESPECTFUL.
PLEASE NOTE THAT WHILE THE PUBLIC DOES HAVE THE RIGHT TO SPEAK, THAT RIGHT IS NOT UNLIMITED.
PER TEXAS PENAL CODE 38.13 42.01 42.02 AND 42.05.
AND TEXAS EDUCATION CODE 37.105.
NO AUDIENCE MEMBER OR SPEAKER WILL BE PERMITTED TO ENGAGE IN ANY CONDUCT THAT IS DISRUPTIVE OR THREATENING TOWARD A SPEAKER OR OTHER PERSON, OR TO VIOLATE THE PRIVACY RIGHTS OF ANOTHER PERSON.
THE BOARD SHALL NOT TOLERATE DISRUPTION OF THE MEETING BY MEMBERS OF THE AUDIENCE.
IF, AFTER AT LEAST ONE MORE INDIVIDUAL WARNING FROM THE PRESIDING OFFICER, ANY INDIVIDUAL CONTINUES TO DISRUPT THE MEETING BY HIS OR HER WORDS OR ACTIONS, THE PRESIDING OFFICER WILL REQUEST ASSISTANCE FROM LAW ENFORCEMENT OFFICIALS TO HAVE THE INDIVIDUAL REMOVED FROM THE MEETING.
THEREFORE, BOARD MEMBERS MAY NOT DISCUSS THE COMMENTS OF SPEAKERS.
EACH SPEAKER WILL BE GIVEN 2 MINUTES TO ADDRESS THE BOARD.
TRUSTEE HARRISON WILL BE THE DESIGNATED TIMEKEEPER.
I WOULD JUST LIKE TO SAY THAT THERE IS FIRST AMENDMENT RIGHT ON PUBLIC SPEAKING AND UNLESS YOU ARE INCITING VIOLENCE OR WHAT'S THE OTHER TERM, VALERIE, VULGAR, NO.
THEN PUBLIC SPEAKERS HAVE THE RIGHT TO SAY WHAT THEY WANT AND I CANNOT HALT THEM FROM SAYING THAT.
I HAVE ASKED BOARD COUNSEL TO MONITOR PUBLIC SPEAKING AND IF ANYTHING CROSSES THE THRESHOLD OF A FIRST AMENDMENT VIOLATION, THEN OUR LEGAL COUNSEL WILL INTERVENE. OTHERWISE, I DO NOT HAVE THE ABILITY TO STOP ANY PUBLIC SPEAKER FROM WHAT THEY CHOOSE TO SAY.
HAVING SAID THAT, WE'LL MOVE ON TO OUR PUBLIC SPEAKER LIST.
FIRST UP IS DAVID SCHMIDT SPEAKING ON AGENDA ITEM E ONE.
THESE ALL WILL BE ON TOPIC AND YOU DO LIVE IN THE DISTRICT.
HOLD ON 1 SECOND. OH, THERE YOU GO.
YES. YOU KNOW VERY WELL THAT I DO.
AND I WANT TO THANK ALL OF THOSE THAT WERE INVOLVED.
THERE IS NO TIME FOR ANY SERIOUS BACK AND FORTH DIALOG OR ANY SERIOUS ADJUSTMENTS TO THE BUDGET, WHICH IN THIS CASE I BELIEVE THERE SHOULD BE SOME SERIOUS ADJUSTMENTS MADE TO THE BUDGET. I WOULD ALSO LIKE TO SEE THAT FUTURE REQUIRED REQUIRED PUBLIC HEARINGS BE EXACTLY THAT.
A PUBLIC HEARING, NOT A BOARD MEETING, NOT A CALLED BOARD MEETING, BUT A PUBLIC HEARING WHERE THERE IS TRUE DIALOG BETWEEN THE COMMUNITY, THE PUBLIC AND THE BOARD AND THE DISTRICT PERSONNEL THAT PREPARE THE BUDGET.
THANK YOU FOR YOUR TIME AND FOR THE STAFF THAT'S GOING ON VACATION.
THANK YOU VERY MUCH. NEXT IS [INAUDIBLE] SPEAKING ON AGENDA ITEM E1.
[00:05:02]
AND YOU DO LIVE IN THE DISTRICT.HI. THIS IS MY FIRST APPEARANCE HERE.
I GOT INVOLVED A COUPLE OF MONTHS BACK WHEN MY TAX PROPERTY RATES SEEMED TO BE GOING OFF THE ROOF.
BUT BASED ON WHAT I COULD READ FROM THE DOCUMENTS POSTED ONLINE ON YOUR WEBSITE, I STILL BELIEVE THERE IS A SMALL OPTION TO REDUCE THE TAX BURDEN A LITTLE MORE.
THERE IS A PRINTOUT THAT WE CREATED AND PUT IT ON YOUR DESK THAT EXPLAINS HOW THE THE NUMBERS WE'RE TALKING ABOUT AND THE REFERENCES TO THE DOCUMENTS POSTED ONLINE ON THE WEBSITE.
THAT'S ONE PLACE. THE SECOND PLACE IS THERE SEEMS TO BE 11.4 MILLION SURPLUS IN DEBT SERVICES.
I DON'T KNOW WHETHER THAT CAN BE MOVED BACK OR NOT OR CAN BE UTILIZED THIS YEAR.
AND THEN ONE THING WHICH I AM NOT UNDERSTANDING IS WHY ARE WE PAYING THE DEFICITS PAYMENT OF $6 MILLION EVERY YEAR? IS THAT SOMETHING THAT CAN BE STOPPED OR AT LEAST STOPPED FOR THIS YEAR TO OFFSET THE TAX BURDEN INCREASE.
SO THOSE ARE THE PLACES WHERE WE THINK WE POTENTIALLY CAN FURTHER REDUCE THE TAXES.
AND THEN ONE OTHER COMMENT THAT I FELT I CAN MAKE IS I KNOW FOR THE LAST TWO YEARS OUR STUDENT NUMBERS HAVE GONE DOWN BY [INAUDIBLE] AND 2490, RESPECTIVELY, BUT WE'RE EXPECTING A GROWTH OF 500 OR 800 MORE STUDENTS THIS YEAR.
THANK YOU. THANK YOU VERY MUCH.
NEXT IS [INAUDIBLE] SPEAKING ON AGENDA ITEM E1, AND YOU DO LIVE IN THE DISTRICT.
SO BASED ON THIS BUDGET, I THINK THE ONLY WAY FOR THE COMMUNITY TO TRUST ANY OF YOU SITTING UP HERE IS FOR US TO HAVE A COMPLETE FINANCIAL FORENSIC AUDIT OF YOUR BUDGET.
BECAUSE SPENDING IS THROUGH THE ROOF AND RESULTS ARE ABYSMAL.
YOU HAVE 5240 STUDENTS LEFT, LEFT THE DISTRICT.
THAT IS THAT IS GOING TO OTHER DISTRICTS OR CHARTER SCHOOLS.
AND THEN YOU HAVE CLOSE TO 1800 TEACHERS AND STAFF LEFT THE DISTRICT THIS YEAR ALONE.
AND ALL OF THIS INFORMATION BASED ON MY PUBLIC INFORMATION REQUEST.
SO THERE'S YOU GUYS CAN LOOK IT UP IF YOU WANT.
SHE'S LEAVING TO GO TO A NEIGHBORING DISTRICT BECAUSE HER TRIBE IS GOING THERE.
HER CHILD IS NOT GOING TO SCHOOL HERE, GUYS.
GET THAT. WHAT'S GOING ON IN THIS DISTRICT? WE NEED A FORENSIC AUDIT OF YOUR BUDGET.
ALSO YOUR POLICE CHIEF LEFT TO TAKE A PAY CUT IN HUTTO.
WHAT'S GOING HAVE TO TALK ABOUT THE BUDGET? IT IS. THIS IS THE BUDGET.
ARE YOU PAYING THE POLICE CHIEF RIGHT NOW OR NOT? YOU'RE NOT. THAT'S PART OF THE BUDGET, RIGHT? THANK YOU. I THOUGHT YOU SAID IF I AM NOT INCRIMINATING PEOPLE, I'M NOT THREATENING TO ANYONE THEN I HAVE A RIGHT TO SAY ANYTHING I WANT.
YOU JUST SAID THAT. HOW HYPOCRITICAL IS THAT FROM YOUR STATEMENT? YOUR TIME IS UP. THANK YOU.
THANK YOU. NEXT IS JAY ACKMAN SPEAKING ON AGENDA ITEM E1.
AND YOU DO LIVE IN THE DISTRICT.
YES. AND THANK YOU ALL FOR YOUR TIME.
SO TUESDAY I EXPLAINED WHY I WAS EMBARRASSED FOR YOU FOLKS UP THERE AND YOUR CAREERS.
TONIGHT, I'LL EXPLAIN WHY I'M AGGRAVATED FOR OUR DISTRICT.
IT'S PRETTY MUCH WHAT THE OTHER SPEAKERS HAVE SAID.
IT'S ABOUT OUR BUDGET AND THE FACT THAT WE'VE OVERSPENT 400 NORTH OF $480 MILLION, EVEN THOUGH WE SEE DECREASING STUDENT POPULATION, UNDERPAID STAFF, THEY GET UP EVERY WEEK AND DISCUSS HOW UNDERPAID THEY ARE AND UNDERAPPRECIATED AND THEN THE EROSION OF OF THE KNOWLEDGE BASE THAT WE'RE LEAVING.
I ACTUALLY LOVED HER AS A PRINCIPAL FOR MY SON'S SCHOOL.
[00:10:03]
IT'S VERY DISAPPOINTING THAT NOW THERE'S AN UNKNOWN AT CEDAR RIDGE FOR NEXT YEAR, NOT TO MENTION ALL THE OTHER CHANGES THAT HAVE BEEN GOING ON THAT MAKE IT VERY, VERY, VERY UNNERVING FOR OUR KIDS.AS A HOMEOWNER, AS A PROPERTY TAX PAYER WHO SUPPORTS THIS DISTRICT, I URGE EVERYONE WHO PAYS PROPERTY TAX HERE TO GO INTO THE PROPERTY TAX SYSTEM AND LOOK AT THE ROLLS TO SEE WHAT YOU'RE PAYING.
WE PAY YOU GUYS MORE MONEY THAN WE'RE PAYING THE CITY OF ROUND ROCK TO RUN AN ENTIRE CITY.
AND ALL WE'RE SEEING IS STUDENTS LEAVE, EDUCATORS LEAVE.
AND A WHOLE LOT OF FOOLISHNESS FROM YOU FOLKS.
SO, AGAIN, I KNOW THAT THIS IS AN UNPAID POSITION.
I DON'T KNOW WHERE YOU FIND THE TIME TO EVEN DEAL WITH WHAT YOU HAVE TO DEAL WITH.
I APPRECIATE THAT EFFORT FROM EACH ONE OF YOU.
WE'VE GOT IT'S AN INCREDIBLE CITY FULL OF A WEALTH OF KNOWLEDGE OF PEOPLE WHO COULD HELP.
IT'S VERY, VERY EMBARRASSING WHEN EACH ONE OF YOUR NAMES ARE GOOGLED.
SO THANK YOU. THANK YOU VERY MUCH.
NEXT IS DONNA TUCKER SPEAKING ON AGENDA ITEM E1.
AND YOU DO LIVE IN THE DISTRICT.
AND I KNOW THAT. AND EVEN THOUGH I RETIRED FROM SEVERAL DECADES OF MANAGING A CORPORATION AND I'VE HAD TO DEAL WITH LAWSUITS BEFORE, THIS IS STILL WAY OVER MY HEAD.
EVERYBODY, ALL OF MY TEACHERS IN BUSINESS SCHOOL SAID, YOU DON'T GO IN.
DON'T YOU DARE. AND [INAUDIBLE] DID NOT TEACH ME HOW TO BALANCE A CHECKBOOK.
I WANT TO SO I WANT TO THANK ALL OF YOU WHO VOTED AGAINST THE RECENTLY PROPOSED TAX BREAK, WHICH A COUPLE OF VERY EXPERIENCED BUSINESS INCENTIVE BOARD MEMBERS AND COUNTY SOUTH OF HERE AGREED WAS THE MOST CORRUPT DEAL THEY HAVE EVER REVIEWED.
I WANT TO THANK ALL OF YOU WHO VOTED AGAINST IT.
BONE. YOU IDENTIFIED THAT ALL OF THE DISTRICT FUNDS ARE NOT MENTIONED ON BUDGET PROPOSALS, AND THIS IS WHAT I WOULD CALL A MAJOR LACK OF TRANSPARENCY.
ALL FUNDS SHOULD BE DOCUMENTED.
THERE SHOULD BE NO FUND FOR WHATEVER PURPOSE THAT DOES NOT SHOW UP ON THE BUDGET.
I HAVE WORKED WITH COMMERCIAL CONDOMINIUM PROPERTY OWNERS ASSOCIATION.
I'VE WORKED WITH THE HOMEOWNER'S PROPERTY ASSOCIATION TO DO RESERVE STUDIES.
I ORDER THEM AND WE REVIEW THEM.
AND THEN WE SET UP A PLAN TO MAKE SURE WE HAVE THE FUNDS IN PLACE FOR ALL THE MAINTENANCE, THE EXPANSION, WHATEVER IS NEEDED, AND LOOKING AT A LONG TERM BUDGET AND REGARDING OUR LUXURY FACILITIES, I JUST WANT TO MAKE AN EXAMPLE.
THE INDOOR SWIM CENTER IS WONDERFUL, BUT IT'S A LUXURY ITEM.
HOW MANY KIDS ACTUALLY GET TO GO USE IT? AND HAVE YOU EVER DONE A COST BREAKDOWN OF, SAY, STARTING WITH A CONSTRUCTION COSTS OVER A REASONABLE LIFESPAN FOR THE BUILDING AND ALL OF THE COSTING.
YOUR TIME IS UP, THANK YOU VERY MUCH.
THANK YOU VERY MUCH. NEXT IS KAREN HAWTHORNE SPEAKING ON AGENDA ITEM E1.
AND DO YOU LIVE IN THE DISTRICT? YOU DO. THANK YOU.
THANK YOU VERY MUCH. NEXT IS LINDSEY [INAUDIBLE] SPEAKING ON AGENDA ITEM E1.
AND YOU DO LIVE IN THE DISTRICT.
I DO. SO I JUST WANTED TO SAY ALSO I SUPPORT THIS BUDGET.
I THINK THAT IT'S ONE OF THE BEST BUDGETS WE'VE SEEN.
I THINK IT DOES A GREAT JOB OF BALANCING THE NEEDS OF TAXPAYERS TO LOWER OUR TAX RATE, AS WELL AS REWARD OUR LONG SERVING TEACHERS AND GIVING THEM THE RAISES THAT THEY DESERVE.
SETTING THE MINIMUM WAGE OF $15.
I WISH IT COULD BE EVEN HIGHER BECAUSE IT COSTS SO MUCH TO LIVE IN THIS AREA.
BUT IT IS A REALLY GOOD BUDGET.
AND I THINK THAT THERE'S A LOT OF MISINFORMATION.
AND IT'S A REALLY NUANCED CONVERSATION.
SO I THINK AS YOU GUYS ARE DISCUSSING, IF YOU GUYS COULD EXPLAIN TO THE PUBLIC WHY WE CAN'T GO BELOW A CERTAIN RATE BECAUSE OF THE MINIMUM COMPRESSED RATE THAT'S DICTATED BY THE TEA THAT WE CAN'T GO BELOW WHAT THE VALUE IS IN THE FIVE GOLDEN PENNIES, THAT EACH PENNY IS WORTH 160% OF WHAT
[00:15:09]
ONE PENNY WOULD BE. AND WE GET TO KEEP THAT AND IT'S NOT SUBJECT TO RECAPTURE.THOSE ARE HUGE CONVERSATIONS THAT I THINK THE COMMUNITY NEEDS TO UNDERSTAND.
I'VE TRIED TO EDUCATE PEOPLE AS MUCH AS I CAN WHENEVER I TALK TO PEOPLE, BUT THAT'S A HUGE DEAL.
AND THIS BUDGET IS GOOD, IT'S FAIR, IT'S BALANCED, AND I THINK THAT WE NEED TO SUPPORT IT.
NEXT IS [INAUDIBLE] SPEAKING ON AGENDA ITEM E1.
AND YOU DO LIVE IN THE DISTRICT.
WELL, THANK YOU ALL FOR YOUR SERVICE.
REALLY, IT'S NOT AN EASY JOB FOR YOU ALL TO DO THIS EVERY DAY.
REGARDING THE 2022 2023 BUDGET, I BELIEVE THE BOARD CAN REDUCE THE OVERALL TAX RATE BY OVER THREE PENNIES FROM WHAT YOU ALREADY PROPOSED BY MAKING THREE SENSIBLE CHOICES. I'LL START WITH THE I&S FIRST, BECAUSE EVEN THOUGH AGAIN THERE IS A LOT OF THINGS THAT WERE ACCOMPLISHED, TAX RATES AND ALL THAT, I THINK IT'S PRETTY SIMPLE.
STOP MAKING UNNECESSARY PAYMENTS ON BONDS.
THIS WILL REDUCE THE TAXES BY $6 MILLION.
OUR CURRENT BALANCE FOR THE FUND IS 101 MILLION AND WE NEED TO MAKE $90 MILLION OF PAYMENT.
YOU HAVE $10 MILLION EXTRA EXCESS IN I&S FUNDS USE IT THIS YEAR.
NOTHING TO DO WITH THE [INAUDIBLE] TAX RATE.
NOTHING TO DO WITH ANY OF THE M&O TAXES JUST FROM I&S.
USE IT. GIVE THE RELIEF TO THE PUBLIC.
WHEN IT COMES TO M&O, YOU HAVE [INAUDIBLE] FROM THE PREVIOUS M&O YEARS WHERE YOU EXCESS.
YOU HAVE $10 MILLION OF EXCESS SITTING THAT'S NOT APPROPRIATED.
THIS IS THE YEAR TO USE THAT FUNDS AND REDUCE THE M&O RATE.
ALL PUT TOGETHER. YOU CAN REDUCE THE TAX COLLECTED.
YOU CAN COLLECT BY $27 MILLION.
NOT ONE, NOT TWO, NOT THREE, $27 MILLION.
THANK YOU. THANK YOU VERY MUCH.
NEXT IS [INAUDIBLE] SPEAKING ON E1.
AND YOU DO LIVE IN THE DISTRICT.
AND I'M SORRY. DID I SAY YOUR NAME CORRECTLY? DOESN'T MATTER. CAN YOU SAY IT FOR ME, PLEASE? [INAUDIBLE] THANK YOU.
NO MISTAKE. I AM NOT HERE TO TELL YOU HOW TO DO YOUR JOB.
I'M NEITHER AGAINST BUDGET OR PRO BUDGET.
LET ME ASK EVERYBODY HOW MUCH MONEY YOU CAN SPEND IN A DAY.
ON HOW MUCH MONEY YOU CAN SPEND IN ONE MONTH OR HOW MUCH MONEY YOU CAN SPEND IN ONE YEAR.
IF YOU ASK ME, I CAN SPEND ALL THE MONEY I GET.
ANY DAY, ONE DAY, ONE MONTH, OR THIS THING, ANY AMOUNT OF MONEY YOU WILL GIVE ME, I CAN SPEND IT.
SO IT'S UP TO YOU TO HOW MUCH MONEY TO GIVE.
THINK ABOUT IT. I CAN GAMBLE IT.
I'M NOT HERE TO TELL YOU TO MODIFY YOUR BEHAVIOR OR CONTROL YOUR SPENDING.
AS A LAYMAN, AS A RESIDENT OF THIS PLACE.
THE REAL QUESTION YOU NEED TO ASK IS WHICH IS GREATER? 1% IS GREATER OR 50% IS GREATER.
IF I DON'T GIVE YOU ANY CONTEXT, YOU WILL SAY 50% IS GREATER.
BUT IF I SAY 50% OF ₹100 OR $100 OR 1% OF 1 BILLION NOW, WHICH IS GREATER.
SO THIS IS ALL A NUMBER GAME AND PERCENTAGE GAME, THAT'S ALL.
THANK YOU. THANK YOU VERY MUCH.
NEXT IS SHARON LITTLE SPEAKING ON AGENDA ITEM E1.
AND YOU DO LIVE IN THE DISTRICT.
WE'RE GOING TO GO TO OUR VIRTUAL SPEAKERS, JACK CHILES SPEAKING ON AGENDA ITEM E1.
AND YOU DO LIVE IN THE DISTRICT.
I'VE JUST WANTED TO KEEP THIS SHORT AND SWEET.
THE BUDGET LOOKS PRETTY WONDERFUL.
[00:20:08]
A LOT OF THAT IS DUE TO THE BOOMING REAL ESTATE MARKET.BUT WHAT HAPPENS WHEN THAT FALLS OUT FROM UNDER US? ARE WE GOING TO BE ABLE TO SUSTAIN THE BUDGET BASED ON WHAT WE TAKE IN? OR WILL WE NEED TO TAKE MORE AGGRESSIVE STEPS TO CUT IT BACK? I THINK THERE ARE CERTAINLY A COUPLE OF AREAS WHERE WE CAN DEFINITELY TRIM IT.
LEGAL EXPENSES FOR ONE, BUT AS IS THOUGH EXCELLENT JOB TAKING CARE OF IT AND ENJOY YOUR SUMMER.
THANK YOU VERY MUCH. NEXT IS BERNARD O.
AND YOU DO LIVE IN THE DISTRICT.
YES. THANK YOU FOR GIVING US SOME TIME TO TALK ABOUT THIS BUDGET.
CAN YOU GUYS HEAR ME? YES, WE CAN.
WHICH IS ALSO CALLED THE COMPREHENSIVE ANNUAL FINANCIAL REPORT, IS WHERE ALL PARENTS SHOULD GO TO FIND OUT EXACT NUMBERS REGARDING HOW MONEY COMES IN AND HOW MONEY GOES OUT.
THIS RIGHT HERE IS A QUOTE FROM I THINK IT'S WELL, I'LL JUST READ IT TO YOU.
IN THE CURRENT YEAR, THE DISTRICT OF FEES, CERTAIN OUTSTANDING GENERAL OBLIGATION BONDS BY PLACING THE PROCEEDS OF NEW BONDS IN AN IRREVOCABLE TRUST TO PROVIDE FOR ALL THE FUTURE DEBT SERVICE PAYMENTS ON OLD BONDS.
AT JUNE 30TH, 2021, OUTSTANDING BONDS OF 59 MILLION AND SOME CHANGE ARE CONSIDERED [INAUDIBLE].
THESE TYPE OF STATEMENTS ARE LITTERED THROUGHOUT THE CAFR, WHICH IS WHY IT'S IMPORTANT THAT ALL CONCERNED PROPERTY TAX PAYERS GO AND LOOK AT THE CAFR.
I'VE NEVER HEARD IT MENTIONED BEFORE.
ITEM 91 LAST YEAR WAS RIGHT UNDER 15 MILLION AND IN THE PROPOSED BUDGET IS RIGHT UNDER $73 MILLION.
SO WHAT'S THE INCREASE? WHAT DOES THAT INCLUDE? WHAT ARE ALL THOSE APPROPRIATIONS FOR IN THAT LIST? WE NEED A LITTLE MORE DETAILS THAN JUST A VAGUE LIST OF THINGS, ESPECIALLY WITH HUGE NUMBER LEAPS LIKE THAT.
WE WANT TO KNOW. YOUR TIME IS UP.
NEXT IS ROBERT LESSER SPEAKING ON AGENDA ITEM E1.
AND YOU DO LIVE IN THE DISTRICT.
I DO. THIS IS TO REFLECT ON AN EMAIL I SENT TO THE BOARD, DR.
AZAIEZ AND MR. COVINGTON THIS MORNING.
AND IT HAS TO DO WITH VISIBILITY IN THE BUDGET, SO TRY TO KEEP THE SHORT AND SWEET.
IN 2019, THE THEN BOARD ADDED WHAT THEY CALL THE CAPITAL PROJECTS FUND TO THE LIST OF FUNDS AVAILABLE TO SPEND FROM THERE ALREADY IS ONE OF THOSE THINGS. THE NEW ONE IS CALLED THE OPERATING CAPITAL PROJECTS FUND THAT IS FUNDED OUT OF TAX DOLLARS OUT OF THE GENERAL FUND. THERE'S MONIES MOVED EVERY YEAR INTO THAT TO OSTENSIBLY PAY FOR ANYTHING CAPITAL.
SO ALL YOUR CAPITAL IS IN ONE PLACE KIND OF MAKES SENSE.
SO OVER THE YEARS, THERE'S BEEN APPROXIMATELY $50 MILLION MOVED INTO THIS FUND, EXCEPT THAT IN OUTSIDE OF A PASSING REFERENCE IN THIS BUDGET, THERE IS NO MENTION OF THAT THIS BUDGET OR LAST YEAR'S BUDGET OR THE YEAR BEFORE THAT BUDGET.
THIS IS NOT NOT BOND FUNDS AND IT SHOULD BE SEPARATE.
SECONDLY, EVEN IN THE CAFR ACTUALLY SAY CAFR NOW, BUT IT MENTIONS THE BUDGET RECONCILIATION OF SPEND VERSUS BUDGET, EXCEPT THAT BUDGET THAT'S MENTIONED IN THE CAFR IS NO PLACE TO BE FOUND IN LAST YEAR'S THE 2020-2021 BUDGET REPORT OR THE PROPOSED BUDGET FOR THE DISTRICT TO PASS BUDGET FOR THE DISTRICT.
I'M SEEING THAT AGAIN THIS YEAR.
SO THERE'S A SUBSTANTIAL AMOUNT OF MONEY BEING MOVED.
IT'S TENS OF MILLIONS OF DOLLARS.
A SUBSTANTIAL MONUMENT BEING SPENT IS ABOUT $5.8 MILLION LAST YEAR.
AND IN THIS CASE, AS I SHOWED YOU OR I PUT INTO THAT EMAIL THIS MORNING, IF YOU LOOK AT THE 21 SORRY, THE 2020 ENDING FUND BALANCE FOR THAT, YOU'LL LOOK AT MONEY IN, YOU'LL GET MONEY SPENT.
YOU ARRIVE AT ABOUT $28.5 MILLION.
SO THERE'S TWO AND A HALF MILLION DOLLARS MISSING THERE.
IT WOULD BE NICE TO FIND OUT WHERE THAT WENT AND ALSO TO ACCOUNT FOR THAT.
[00:25:01]
THANK YOU VERY MUCH.IS SHARON LITTLE HERE? THAT ENDS OUR PUBLIC COMMENTS FOR OUR PUBLIC HEARING.
AZAIEZ TO BEGIN THE PUBLIC HEARING FOR THE PROPOSED 2022-2023 BUDGET AND TAX RATE.
[E. PUBLIC HEARING: PROPOSED 2022-2023 BUDGET AND TAX RATE]
THANK YOU. PRESIDENT FELLER BOARD OF TRUSTEES COMMITTEE MEMBERS.SO WE HAVE TODAY IS A PUBLIC HEARING FOR OUR BUDGET FOR THE 2022-2023 SCHOOL YEAR.
I JUST WANT TO EMPHASIZE ONE THING TONIGHT.
WE'RE NOT ASKING OUR BOARD MEMBERS TO VOTE OR TAKE A VOTE ON TAX RATE.
AS YOU REMEMBER, WE DO THAT IN SEPTEMBER.
SO I EXPECT THAT TAX RATE WILL PROBABLY GO DOWN AS WE GET MORE INFORMATION.
SO THIS IS NOT FINAL AND WE'RE NOT ASKING ALL BOARD MEMBERS TO TAKE ANY ACTION ON THE TAX RATE.
SO THERE IS A HIGH CHANCE THAT THAT RATE WE WILL MAKE IT HAPPEN EVEN LOWER AND ALSO ENSURE THAT WE ARE COMPENSATING OUR STAFF ADEQUATELY SO WE CAN KEEP THE BEST AND RETAIN AND ALSO RECRUIT THE BEST STAFF MEMBERS.
CAN YOU EXPLAIN WHY IT'S LIKELY TO GO LOWER? THE STATE DEFINED MAXIMUM COMPRESSION RATE WILL LOWER FROM THAT .0846.
AND SO CAN YOU EXPLAIN TO PEOPLE WHAT WHAT IS THE MAXIMUM COMPRESSED RATE AND WHY WOULD IT CONTINUE TO GO DOWN? FROM MY UNDERSTANDING, THERE'S A 10% ACROSS THE STATE TAX RATE.
AND YOU CANNOT BE OUTSIDE OF THE 10%.
MY UNDERSTANDING OF THE WAY IT WORKS IS THAT THERE THERE WAS A LAW THAT WAS PASSED IN 2019 CALLED HB THREE THAT THAT SAID THAT SCHOOL DISTRICTS COULD ONLY TAKE IN TWO AND A HALF PERCENT MORE REVENUE A YEAR.
IT'S LIKE THERE'S TWO DIFFERENT TYPES OF RATES THERE'S TIER ONE PENNIES AND TIER TWO PENNIES.
SO THEY STARTED COMPRESSING THAT DOWN SO THAT WE ONLY TAKE IN TWO AND A HALF PERCENT MORE.
SO EVERY YEAR IS OUR VALUATIONS GO UP.
THEY COMPRESS THAT RATE DOWN SO WE DON'T TAKE IN MORE THAN THE TWO AND A HALF PERCENT.
SO THE MAXIMUM COMPRESSED RATE IS LIMITED BY THIS PART OF THE LAW.
SO WE COULD ACTUALLY BE LOWER REALLY, BUT BECAUSE OF THIS STIPULATION IN THE LAW, THEY CAN'T GO LOWER THAN THAT. AND SO EVERY YEAR THEY GIVE US A MAXIMUM COMPRESSED RATE BASED ON BOTH OUR PROPERTY TAX VALUATION INCREASES AND ALSO THE 10% RULE. THAT'S MY UNDERSTANDING.
WOULD YOU GUYS AGREE WITH THAT? YES. OKAY.
THANK YOU. TRUSTEE WESTON HAS HER LIGHT ON BEFORE WE GET STARTED WITH THE PRESENTATION.
MADAM CHAIR, ARE WE SPEAKING WITHOUT BEING RECOGNIZED DURING THIS MEETING? I RECOGNIZED YOU.
I KNOW, BUT YOU DIDN'T RECOGNIZE HER, SO I DIDN'T KNOW IF WE WERE SUPPOSED TO BE RECOGNIZED OR NOT.
THANK YOU. SO CAN YOU CLARIFY, ARE YOU EXPECTING DR.
YES, THE CERTIFIED VALUE COMES OUT IN END OF JULY AND THE STATE WOULD THEN TAKE THOSE VALUES AND RE COMPUTE THE MAXIMUM COMPRESS RATE.
I'M SORRY. I'M SORRY. NO, GO AHEAD.
I WAS GOING TO FOLLOW UP ON HIS EXPLANATION.
WELL, I WAS JUST TO SAY, WHEN DO YOU EXPECT TO GET THIS NEW MAXIMUM COMPRESSED RATE? SO PROBABLY SOMETIME IN AUGUST.
WE DON'T WE HAVE IT AT JULY 1ST.
[00:30:02]
SO WE HAVE TO TAKE ACTION.OUR BOARD HAS TO TAKE ACTION ON OUR BUDGET BEFORE WE CAN HAVE THAT INFORMATION.
SO THEN WHY DO WE EVEN TALK ABOUT A PROPOSED TAX RATE? WHY? WHY HAVE WE BEEN TALKING ABOUT THAT SINCE MARCH.
IS USED TO CALCULATE THE BUDGET.
RIGHT. SO ALTHOUGH THE THE THE AGENCY COULD RELEASE A NEW MAXIMUM COMPRESSED TAX RATE, WHAT IS BEING PROPOSED AND THE REASON WE'VE BEEN TALKING ABOUT THIS SINCE MARCH AND THE REASON OUR COMMUNITY IS PAYING ATTENTION TO THIS PROPOSED RATE IS BECAUSE IT ACTUALLY DOES MATTER BECAUSE IT'S WHAT WE'RE BASING THE BUDGET ON.
SO IS THAT A TRUE OR FALSE STATEMENT? THAT'S A TRUE STATEMENT.
ALL RIGHT, MR. KEVIN DID. I DON'T SEE ANY OTHER LIGHTS ON.
I'LL LET YOU GO AHEAD AND BEGIN YOUR PRESENTATION.
THE ASSUMPTIONS HAVE NOT CHANGED.
OUR BUDGET ASSUMPTIONS HAVE NOT CHANGED SINCE THE LAST PRESENTATION ON EACH OF THE FUNDS.
SO LET'S REVIEW WHAT THE M&O ASSUMPTIONS WERE.
I ESTIMATED PROPERTY VALUES IN THE BUDGET.
OUR STATE FUNDING LEVELS REMAIN UNCHANGED.
WE DID LOSE THE FAST GROWTH DISTRICT CLASSIFICATION ALLOTMENT ENROLLMENT AND PROJECTING IS TO INCREASE AT 800 STUDENTS.
BUT AS I TOLD YOU BEFORE, WE USE A 500 STUDENT INCREASE IN THE BUDGET, BUT THEY 95% ADA.
AND WE'RE ALSO GOING TO CHARGE START CHARGING INDIRECT COST RATE TO OUR FEDERAL PROGRAMS. OUR MARKET ADJUSTMENTS FOR COMPENSATION.
WE DID INCREASE THE DISTRICT WIDE STARTING SALARY TO $15 AN HOUR AND ADJUSTED FOR COMPRESSION.
BIG ITEM INCREASE IN THE BUDGET IS THE RECAPTURE PAYMENT.
IT IS BUDGET TO TO WHERE WE THINK THE ESTIMATE WILL COME IN FOR NEXT YEAR.
WE STILL HAVE SALARIES THAT WILL BE PAID OUT OF ESSER THREE, AND WE ALSO PROPOSE TO PAY AN ADDITIONAL STIPEND IN THE FALL OF $500 TO EACH EMPLOYEE OF OUR ESSER THREE FUNDS.
THE I&S BUDGET ASSUMPTION OR THE DEBT SERVICE.
ESTIMATED PROPERTY VALUE AGAIN INCREASED BY 13%.
WE ARE PROPOSING TO LOWER THE I&S TAX RATE BY 2.61 PENNIES.
THAT WILL COVER OUR DEBT PAYMENT PLUS THE 6 MILLION DEFICIENCY PAYMENT.
OUR FOOD SERVICE BUDGET ASSUMPTIONS.
AGAIN. THESE HAVE NOT CHANGED SINCE THE LAST TIME THEY WERE PRESENTED.
OUR BUDGET HAS BEEN APPROVED BY THE TEXAS DEPARTMENT OF AGRICULTURE.
IT'S A SEAMLESS SUMMER OPTION.
THEREFORE, ALL MEALS WILL BE PAID EXCEPT FOR OUR FREE AND REDUCED LUNCH MEALS.
THE NUMBER OF STUDENTS WILL GO DOWN WHICH WILL LOWER OUR REVENUE AND EXPENSES.
AND I WOULD SAY THIS BUDGET DOES NOT PROPOSE AN INCREASE IN MEAL PRICES.
AND AS YOU CAN SEE, THAT OUR ENROLLMENT IS GOING DOWN FROM THE 19-20 YEAR TO THE 21-22 YEAR.
AND WE TRULY EXPECT TO INCREASE THE BUDGET, THE ENROLLMENT BY THE 500 STUDENTS.
THE NEXT SLIDE OF WHAT YOU ALL HAVE SEEN BEFORE IS THE BROAD CATEGORIES OF THE BUDGET.
THESE ARE THE ONES THAT WE'VE PRESENTED AND HOW WE PRESENT IT IN CATEGORIES AT THE 1000 FOOT LEVEL.
BUT YOU CAN'T IMPROVE THE BUDGET AT THAT LEVEL.
SO WE CAN NOTE THAT THE TOTAL REVENUES IS $518 MILLION ON THIS SLIDE.
AND THE TOTAL EXPENSES ON THE NEXT SLIDE IS A $5.18 MILLION.
AS YOU SEE AT THE TOP, THE TAX RATE IS 0.8546 FOR M&O.
SO OUR TOTAL REVENUES MINUS OUR TOTAL EXPENDITURES GIVE US A BALANCED BUDGET.
[00:35:03]
THE NEXT SLIDE SHOWS BY CATEGORY OF HOW WE ARE TO PRESENT THE BUDGET FOR ADOPTION AND AS YOU CAN SEE AT THE VERY BOTTOM.TOTAL ESTIMATED REVENUE FOR THE 22-23 SCHOOL YEAR STILL SHOWS A $518 MILLION, BUT IT'S BROKEN OUT INTO CATEGORIES THAT WE CALL LIKE FUNCTIONS.
AS YOU CAN SEE, OUR LOCAL REAL AND PROPERTY TAXES MAKE UP 87.81% OF OUR BUDGET.
LAST YEAR IT MADE UP 87.42% OF OUR BUDGET.
OUR TOTAL LOCAL AND COUNTY REVENUES OF THE 461 673 IS 89.13% OF THE BUDGET.
OUR STATE REVENUE REMAINS PRETTY FLAT AT 19 MILLION FOR LAST YEAR AND 21 MILLION FOR THIS YEAR.
AND OUR STATE PROGRAM IS 9.81% OF LAST YEAR'S BUDGET AND LOWERED TO 8.98% OF THIS YEAR'S BUDGET.
AND THEN THE FEDERAL PROGRAMS, WHICH INCLUDES AN INCREASE FOR THE INDIRECT COSTS THAT WE WILL BE CHARGING THIS YEAR AND THE INCREASE FOR [INAUDIBLE] SO THIS BRINGS OUR FEDERAL PROGRAMS TO THE $1.89 MILLION.
AND SO OUR TOTAL BUDGET IS 5.18017 FOR REVENUES FOR THE 22-23 SCHOOL YEAR.
THAT'S DUE TO WE HAVE MOVED THE DIFFERENCE OF THOSE DOLLARS INTO THE ESSER THREE FOR SALARIES FOR INSTRUCTIONAL COACHES AND INSTRUCTIONAL TECHNOLOGY COACHES.
BUT YOU GO TO THE VERY BOTTOM, YOU SEE THE BIGGEST CHANGE.
OUR ADOPTED 21-22 BUDGET HAD ONLY $14.9 MILLION.
BUT FOR NEXT YEAR, IT'S PROJECTED TO BE $72.5 MILLION.
AND THAT'S A 387% INCREASE IN JUST RECAPTURE.
AND THE BOTTOM LINE, YOU SEE IS NOT THE 518.
THE NEXT SLIDE ARE STATUTORY REQUIREMENTS THAT WE MUST PRESENT.
THE FIRST ONE IS OBJECT CODE 6491.
THIS IS THE REQUIRE FOR PUBLISHING PUBLIC NOTICES IN THE NEWSPAPER FOR EITHER FOR YOUR STATE AND FEDERAL TITLE ONE TAXES BUDGET CAFR AND BIDS. AND THE SECOND ONE IS FOR ADVOCACY AND LOBBYING.
MOVING ON TO OUR DEBT SERVICE BUDGET.
THIS HAS NOT CHANGED SINCE THE LAST TIME WE PRESENTED IT.
WE ARE PROPOSING A .2139 CENT TAX RATE, FOR INSTANCE, WHICH WILL COVER, LIKE I SAID, THE PRINCIPLE, THE INTEREST, THE DEFEASANCE OF THE $107.645 MILLION.
THE NEXT PAGE JUST BREAKS OUT THOSE SAME DOLLARS INTO THE APPROPRIATE TITLE CATEGORIES.
AND AS YOU CAN SEE, THE TOTAL AMOUNT STILL EQUALS TO 107.645 FOR EXPENSES AND THE 108.492 FOR REVENUE IS JUST BROKEN OUT INTO THE STATE DETERMINED CATEGORIES.
I PUT IN THE NEXT SLIDE JUST AS A REFERENCE POINT.
THE 2021-22 HOME VALUE OF 500 MILLION WILL GO TO 500.
I MEAN, 500,000 WILL GO TO 550,000.
WITH THE NEW TAX RATE, THE TAX BILL WOULD GO FROM 5669 TO 5876 WHICH IS AN INCREASE OF $207 A YEAR.
THAT'S ABOUT 17 SOME DOLLARS A MONTH.
THE NEXT IS A FULL SERVICE BUDGET.
AGAIN, THIS ONE HAS NOT CHANGED.
WE ARE STILL PROJECTING THAT FOOD SERVICES WILL COME IN AT A SURPLUS OF $2.3 MILLION BY TAKING IN 18.8 MILLION IN REVENUE AND SPENDING OUT 16.467. AGAIN.
THE NEXT PAGE BREAKS OUT THAT SAME SHEET INTO THE APPROPRIATE CATEGORIES AS DEFINED BY STATUTE.
AND YOU CAN SEE THE NUMBERS AGREE AND
[00:40:04]
MADAM CHAIR, THAT IS A TOTAL OF ALL THREE BUDGETS THAT WE ARE REQUIRED TO PRESENT, AND I'LL TAKE QUESTIONS AS NEEDED.TRUSTEE VESSA. THANK YOU SO MUCH.
I JUST WANTED TO CLARIFY SOMETHING THAT WAS ON SLIDE 15.
THERE WAS A QUESTION ABOUT IT.
CONTRACTED INSTRUCTIONAL SERVICES BETWEEN SCHOOLS.
IT SHOWS AN INCREASE FROM $14.9 MILLION TO $72.56 MILLION.
AND THAT IS WHAT RECAPTURE WHAT WHAT IS RECAPTURE? THE STATE SETS A BASIC ALLOTMENT FOR STUDENTS AT 6160.
NOW YOU DO GET ADDITIONAL FUNDS FOR A SPECIAL POPULATION OF STUDENTS FROM THE STATE.
BUT IF YOU TAKE IN MORE THAN 6160 PER STUDENT.
WE DON'T EVEN WE DON'T KEEP THEM LOCALLY.
THEY ACTUALLY GO BACK TO THE STATE.
CORRECT. AND SO THUS OUR REVENUE, OUR ABILITY TO SPEND MONEY ON OUR STUDENTS DOESN'T GO UP, EVEN THOUGH PEOPLE'S TAX THE OVERALL TAX COLLECTIONS GO UP.
TRUSTEE HARRISON. I KNOW WE'LL DISCUSS MORE IN THE NEXT HOUR OR SO FOR THE ACTUAL BOARD MEETING, BUT CAN YOU FOR THE PUBLIC TALK ABOUT DEFEASANCE PAYMENT? WHAT IF WE DIDN'T DO THAT? WHAT WOULD BE THE OUTCOME OF THAT? THE DEFEASANCE IS JUST LIKE ON YOUR HOUSE.
SO DEFEASANCE ON BONDS ACTS THE SAME WAY.
OKAY. AND WOULD IT BE RESPONSIBLE OR IRRESPONSIBLE FOR US TO SKIP A YEAR OF THAT? MY HONEST OPINION, IT WOULD BE IRRESPONSIBLE.
BECAUSE YOU YOU SHOULD. WELL, LET ME QUALIFY THAT.
IT IS A ALWAYS A WISE AND WISE DECISION TO PAY DOWN DEBT.
EITHER IN YOUR HOUSE, ON YOUR CAR.
IN BONDS, FUNDING BEING AVAILABLE IT'S A WISE DECISION TO PAY DOWN YOUR DEBT.
OH, THIS IS THE ONE I THINK IT'S REALLY IMPORTANT TO NOTE.
YOU ARE NEW TO US, MR. COVINGTON, AND YOU WENT THROUGH EVERY SINGLE LINE ITEM.
AND SO THAT'S WHY WE SEE DECREASES IN SOME OF THOSE CATEGORIES.
IT LOOKS REALLY GOOD. THANK YOU.
THANK YOU. CONTINUING FROM TRUSTEE HARRISON ON THE 6 MILLION PAYMENT.
IS THAT NOT TRUE? IT DOES AFFECT YOUR RATING, YES.
IF WE DON'T MAKE THE $6 MILLION PAYMENT, WE WILL LOSE OUR TRIPLE-A RATING.
SO WE CAN WE CAN SKIP OUR $6 MILLION PAYMENT AND WE WILL KEEP OUR TRIPLE-A RATING.
SURE. SO WE COULD SAY IT'S 20 MILLION.
I MEAN, I UNDERSTAND THAT, BUT THERE'S NO OTHER REASON.
NO 6 MILLION IN CONTEXT WITHOUT TOTAL DEBT WOULD NOT CAUSE US TO LOSE OUR TRIPLE-A RATING.
SO I WANT TO BE VERY EXPLICIT, SO I APPRECIATE YOUR ANSWER.
AND I JUST WANT TO CLARIFY THAT WE WILL NOT LOSE OUR TRIPLE-A RATING.
SO I JUST PERSONALLY WOULD LIKE TO SKIP THE $6 MILLION PAYMENT THIS YEAR AND TAKE THAT OFF THE TABLE AND DO AS OUR COMMUNITY ASK AND LOWER THAT TAX RATE.
AND THEN I WOULD ALSO LIKE TO UNDERSTAND RECAPTURES OR CHANGING GEARS HERE.
[00:45:03]
ONE OF THE REASONS THAT OUR RECAPTURE IS GOING TO BE SO HIGH IS THAT OUR ENROLLMENT IS DECREASING.IS THAT CORRECT? IF WE INCREASE OUR ENROLLMENT, THEN OUR RECAPTURE GOES DOWN.
INCREASE YOUR ENROLLMENT AND YOUR ATTENDANCE.
RIGHT. THAT'S A VERY GOOD POINT.
YES. SO WE COULD INCREASE THE PERCENTAGE OF OUR ATTENDANCE.
RIGHT NOW, YOU'VE GOT TO CALCULATE IT, 95% ATTENDANCE DAILY.
THAT MEANS WE HAVE 5% OF OUR POPULATION OUT.
AND THEN I DID WANT TO KNOW WHAT THE NO NEW REVENUE TAX RATE IS.
AND THIS NOW I'M SWITCHING GEARS HERE AND TRUSTEE VESSA TALKED ABOUT THIS BECAUSE TRUSTEE VESSA BROUGHT UP THE 2.5% THAT WE AREN'T SUPPOSED TO BE ABLE TO GO OVER ANYMORE.
SO DO WE HAVE THE NO NEW REVENUE TAX RATES ARE WHAT WE THINK THAT TAX RATE WILL BE.
WE HAVE THE PRELIMINARY THAT [INAUDIBLE].
YES. AND DO YOU KNOW WHAT THAT NUMBER IS? HOLD ON 1 SECOND.
OKAY. AND THE REASON I ASK IS BECAUSE ANOTHER DOCUMENT THAT THE COMMUNITY MIGHT WANT TO KNOW ABOUT AND ACTUALLY THE OTHER TRUSTEES, IS THIS NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE, WHICH IS FOUND ON OUR WEBSITE.
WE'RE ACTUALLY DECREASING OUR DEBT SERVICE THIS YEAR BY 0.4% DECREASE.
AND THAT MEANS THAT OUR TOTAL WE'RE ACTUALLY INCREASING BY 9.4%.
SO WE'RE MOST INCREASING OUR BUDGET BY 9.4% WITH TAX DOLLARS.
SO I'M WONDERING HOW WE ARE DOING THAT WHEN THERE IS A 2.5% LIMIT.
AND IF YOU COULD EXPLAIN THAT TO THE PUBLIC, BECAUSE AS TRUSTEE VESSA SAID, THERE IS THIS IDEA IN THE PUBLIC THAT WE HAVE A LAW IN TEXAS THAT WE CAN'T RAISE OUR REVENUE BY MORE THAN 2.5%.
SO CAN YOU EXPLAIN HOW WE'RE RAISING IT BY 9.4%? THE TWO, THE TWO AND A HALF PERCENT, IF I UNDERSTAND TEXAS LAW IS IN YOUR TAX RATE.
THE DOLLARS THAT YOU TAKE IN FROM LOCAL REVENUE, LOCAL REAL AND PROPERTY TAXES.
BUT THE BUDGET INCLUDES REVENUE FROM ALL OTHER DIFFERENT SOURCES, LIKE OTHER LOCAL REVENUE, YOUR STATE REVENUE, YOUR FEDERAL REVENUE, THAT THE DOLLARS THAT YOU TAKE IN FROM YOUR PROPERTY TAXES IS A TWO AND A HALF PERCENT LIMIT.
BUT AS FAR AS THE BUDGET GOING UP, THE INCREASE IN THE BUDGET IS DUE TO RECAPTURE.
IF YOU LOOK AT ALL THE OTHER LINES, THERE ARE NO MAJOR INCREASES IN THE BUDGET EXCEPT FOR RECAPTURE.
AND THE MAJOR INCREASE IS BECAUSE YOU ADOPTED BUDGET.
I UNDERSTAND RECAPTURE AND I UNDERSTAND NOBODY LIKES RECAPTURE.
I UNDERSTAND OTHER DISTRICTS ACTUALLY HAVE IT HARDER THAN WE DO.
YES. THEY PAY A LOT OF RECAPTURE AND NONE OF US WANT TO PAY RECAPTURE.
AND I UNDERSTAND PART OF THAT IS THAT WE'RE LOSING STUDENTS.
I CAN'T SAY THAT ENOUGH THAT WE'RE LOSING STUDENTS.
SO PART OF THAT'S OUR RECAPTURE ISSUE.
BUT THE QUESTION I HAVE HERE SPECIFICALLY IS WHAT IS THE 2.5% THEN? BECAUSE OUR REVENUES, IF YOU GO TO SLIDE 14, THE REVENUES FROM LOCAL AND COUNTY SOURCES AND THEN I'M LOOKING AT LOCAL, REAL AND PERSONAL PROPERTY TAXES, AND THAT IS GOING FROM 388 MILLION TO 454 MILLION, WHICH IS THAT IS MORE THAN 2.5%.
SO THE EXPLANATION YOU JUST GAVE ME WOULD NOT EXPLAIN HOW WE'RE WE'RE GOING ABOVE THAT 2.5%.
IF WE PASS IT TONIGHT, WE GO FORWARD WITH THAT EVEN.
SO CAN YOU CAN YOU EXPLAIN THIS A LITTLE BIT TO ME? WELL, FIRST, THE BUDGET IS JUST AN ESTIMATE AT A CERTAIN POINT IN TIME AND IT WILL CHANGE.
[00:50:04]
I JUST GOT TO MAKE THAT STRONGLY STATED THAT THE BUDGET WILL CHANGE AS FAR AS FROM THE 388 TO 454.THAT IS TRULY JUST A CALCULATION BASED ON WHERE WE THINK THE NEW TAX RATE TIMES THE PROPERTY VALUE DIVIDED BY 100, THAT'S THE AMOUNT OF REVENUE WE THINK WE WOULD TAKE IN.
RIGHT. SO RIGHT NOW THIS IS CLOSE TO NINE POINT SOMETHING PERCENT AND IT HAS TO BE AROUND 2.5%.
SO IT SHOULD BE A WASH EFFECT ON YOUR BUDGET.
SO YOU'RE SAYING THAT OUR TAX RATE MAY SIGNIFICANTLY GO DOWN THEN? I MEAN, I THINK THE COMMUNITY JUST WANTS TO HEAR THIS.
I DON'T KNOW ABOUT SIGNIFICANT, BUT IT SHOULD GO DOWN.
SO AND MAYBE YOU DON'T HAVE THE ANSWER TONIGHT, BUT I THINK I THINK THE COMMUNITY NEEDS THIS ANSWER AND I KNOW I NEED IT, IS THAT THIS DIFFERENCE BETWEEN THE TWO AND A HALF PERCENT WHERE WE'RE BRINGING IN 9% AND I SEE CORY, I SEE YOU RAISING YOUR HAND, BUT I NEED A LEGITIMATE FACTUAL ANSWER TO THIS.
BECAUSE, I MEAN, YOU'RE TALKING ABOUT ALMOST A 7% DIFFERENCE HERE.
AND A 7% DIFFERENCE IN OUR BUDGET IS MILLIONS OF DOLLARS.
THE TWO AND A HALF PERCENT ONLY APPLIES TO THE THE PROPERTY VALUES FROM THE PREVIOUS YEAR.
IF YOU HAD GROWTH SO SAY YOU HAVE NEW PROPERTY ADDED TO THE ROLLS, THEN.
AND ACTUALLY JUST STOP RIGHT THERE.
SO WE ACTUALLY KNOW WHAT THAT IS.
SO THE NEW PROPERTY REALLY BROUGHT IN $1.8 BILLION WORTH OF NEW PROPERTY THAT'S NOT TAXED AS FOLKS, THAT'S THE PROPERTY VALUE. SO THAT DOESN'T GET US TO THE 60 MILLION THAT WE'RE LOOKING AT HERE.
SO THAT'S WHAT I'M REALLY I AM REALLY CONCERNED.
SO THE OTHER REASON WHY IT CAN GO ABOVE TWO AND A HALF PERCENT IS THAT THAT THERE'S THIS 10% LIMIT.
SO WE SHOULD ACTUALLY HAVE MORE COMPRESSION.
AND THAT LEADS TO OUR RECAPTURE GOING UP BECAUSE THEY'RE LIMITING OUR COMPRESSION BY THIS 10% RULE.
NOW, I ACTUALLY TALKED ABOUT THIS A LOT AT A PREVIOUS MEETING, BUT BECAUSE OF THIS RULE, THEY DON'T.
SO WE'RE ACTUALLY ARE TAKING IN TWO AND A HALF PERCENT MORE BECAUSE THE STATE ISN'T COMPRESSING ENOUGH BECAUSE OF THIS OTHER PART OF THE LAW. BUT WE DON'T KEEP IT.
IT GOES BACK TO THE STATE AND RECAPTURE.
AND SO THAT'S WHY ALL THOSE THINGS FACTORED TOGETHER.
WELL, CAN YOU, THOUGH, CAN YOU ANSWER MY QUESTION THEN? BECAUSE YOU KEEP TALKING ABOUT A TWO AND A HALF PERCENT.
WHAT ABOUT THE 9.4% THAT WERE RAISING IT? SO YOU KEEP TALKING. THAT'S ALL RECAPTURE.
AND I JUST EXPLAINED WHY RECAPTURE KEEPS GOING UP AND UP AND UP AND UP.
SO YOU'RE SAYING WE CAN ACTUALLY BRING IN REVENUE, THAT WE CAN BRING IN 9.4% MORE AND THEY'RE JUST GOING TO RECAPTURE THAT 7%? THAT'S CORRECT.
AND THAT'S WHY I FIGHT AT THE LEGISLATURE ALL THE TIME BECAUSE THAT'S WRONG.
THE INTERESTING THING IS THAT I JUST HAD A DIFFERENT EXPLANATION FROM MR. COVINGTON, SO I WOULD ACTUALLY LIKE THE REAL DETAILS OF THIS AND THAT IF THEY'RE GOING TO COMPRESS IT, WHAT ARE THEY COMPRESSING IT TO AND THE TWO AND A HALF PERCENT WHERE THAT COMES FROM. AND I MEAN, BECAUSE THE EXPLANATION YOU JUST GOT DOESN'T MAKE SENSE TO ME IN THE FACT THAT WE COULD JUST RAISE OUR TAXES 20% ON OUR COMMUNITY, NEVER TAKE IT BACK FOR A TAX VOTE BECAUSE THERE IS A RATIFICATION THAT HAS TO HAPPEN OVER A CERTAIN AMOUNT.
I THINK YOU'RE MISUNDERSTANDING WHAT I SAID.
CORY, LET ME TRY. THE MAXIMUM COMPRESSED RATE RIGHT NOW IS .8046.
YOU CANNOT ADOPT THE TAX RATE BELOW THAT.
I UNDERSTAND THAT AND I UNDERSTAND THERE'S CONFLICTING LAWS.
IS THAT CORRECT? I DON'T KNOW ANYTHING ABOUT A CONFLICTING LAW.
WHAT IT IS IS IS THIS THEY WANTED TO BOTH COMPRESS THE RATE, BUT ALSO MAKE SURE THERE WAS EQUITY ACROSS THE STATE BECAUSE THEY DIDN'T WANT ONE PART OF THE STATE HAVING TO PAY A SIGNIFICANTLY HIGHER M&O TAX THAN ANOTHER PART OF THE STATE.
[00:55:05]
SO THAT'S WHY THEY PUT IN THE 10% VARIATION.BUT WHAT THAT'S HAPPENING IS AREAS LIKE OURS WHERE PROPERTY VALUE GROWTH HAS BEEN ASTRONOMICAL, THEY CAN'T COMPRESS IT ENOUGH BECAUSE OF THAT RULE TO NOT SEE OUR, FOR AN INDIVIDUAL PROPERTY TAX OWNER THAT THAT OWNS HAS OWNED A HOME OVER TIME, AS YOU CAN SEE THEIR REAL INCREASE IN PROPERTY TAXES IS NOT THAT MUCH.
BUT FOR SOMEONE WHO OWNS COMMERCIAL PROPERTY OR RENTAL PROPERTY OR NEW OR NEW, A NEW HOMEOWNER WHO JUST BOUGHT IT, THEY'RE SEEING THEIR VALUATION GO UP A TON.
AND SO WE ARE TAKING IN MORE REVENUE EVEN WITH THE LAW, BUT WE'RE NOT KEEPING IT.
WE DON'T GET TO SPEND IT ON KIDS.
RIGHT. I JUST HEARD I JUST HEARD THIS WEEK ONE OF THE PEOPLE THAT HELPED PASS I BELIEVE IT WAS HOUSE BILL THREE THAT ACTUALLY STATES THAT WE CANNOT RAISE OUR TAX RATE ABOVE TWO AND A HALF PERCENT WITHOUT A RATIFICATION.
SO THAT'S WHAT I WOULD LIKE TO UNDERSTAND.
THERE'S CONFLICTING THERE'S SOMETHING THAT'S NOT MESHING HERE.
SO MAYBE THAT'S THE RATE, BUT NOT THE THE ACTUAL REVENUES THAT ARE COMING IN.
THERE'S A DIFFERENCE BETWEEN THE RATE AND THE REVENUES COMING IN.
THE LAW STATES THAT WE CAN'T TAKE IN MORE THAN TWO AND ONE HALF PERCENT MORE REVENUE WITH THE CAVEAT THAT YOU CAN'T HAVE A RATE MORE THAN TWO AND A HALF, 10% DIFFERENT, BUT INDIVIDUAL HOMEOWNER CANNOT SEE THEIR VALUATION GO UP MORE THAN 10%.
YEAH, I THINK I THINK MAYBE THERE'S ANOTHER LAW THAT WE'RE MIS COMMUNICATING HERE.
SO ANYWAYS, I WOULD LIKE TO UNDERSTAND THAT BETTER BECAUSE I'VE BEEN ASKED ABOUT THIS AND I JUST SAT THROUGH SOME CONVERSATIONS THIS WEEK WITH PEOPLE THAT WERE VERY CONCERNED THAT WE ARE THAT THEY'RE SEEING MORE THAN THIS 2.5% AND HOW THAT WILL IMPACT OUR BUDGET.
I THINK THERE'S NOT A CONFLICTING IN MY OPINION STATUTE, BUT WHEN THE STATE COMES OUT AND SAY THAT YOUR MAXIMUM COMPRESS RATE IS 0.8046, SO YOU CANNOT HAVE A TAX RATE BELOW THAT.
THE ONLY WAY WE COULD GO BELOW OUR TAX RATE OF THE 8546 IS TO GET BACK THE GOLDEN PENNIES SO THAT 0.8046 BY STATUTE, WE CANNOT GO BELOW THAT NUMBER.
AND IF IT'S GREATER THAN TWO AND A HALF PERCENT, THE STATE HAS VIOLATED THE OWN RULE.
THAT'S WHAT I WAS ASKING. IF WE WERE IN A UNIQUE POSITION IN ROUND ROCK THAT WE WERE ACTUALLY AND THAT'S WHAT I GUESS I'M TALKING IN CIRCLES, BUT THAT'S WHAT I WAS ASKING, IS THAT THERE'S, THERE'S TWO THINGS.
THERE'S THE TEXAS EDUCATION THAT SET THIS COMPRESSION RATE AND THERE'S SENATE BILL TWO THAT SAYS AND IF THEY'RE 2.5% AND IF THEY'RE CONFLICTING AND WE MIGHT BE UNIQUE IN THE FACT THAT WE HAVEN'T BEEN COMPRESSED ENOUGH.
AND THE ONLY REASON I BRING THAT UP IS BECAUSE WE ARE WE'RE WAY OVER THAT 2.5%.
AND I WOULD REALLY HATE TO SEE US NEXT YEAR NOT HAVE THAT 7% AND SEE WHAT WE HAVE TO DO.
I PROMISE YOU THAT WON'T HAPPEN BECAUSE THAT'S NOT HOW IT WORKS.
BUT I UNDERSTAND THAT YOU'RE CONFUSED.
AND SO I STUDIED THIS OVER YEARS AND YEARS AND YEARS.
AND I SIT IN THESE HEARINGS AND I GO AND I TALK WITH OTHER PEOPLE AND I SIT IN ON.
TRUSTEE VESSA. SO I UNDERSTAND.
IT'S COMPLICATED, AND I UNDERSTAND YOU'RE WORRIED.
AND NOBODY HAS ACTUALLY BEEN ABLE TO GIVE ME AN EXACT ANSWER.
WE'RE NOT UNIQUE ALL OVER THE STATE.
IT'S WE'RE SEEING PROPERTY TAX VALUATIONS GO UP A TON ALL OVER THE STATE.
THEY'VE GOT A SERIOUS PROBLEM THAT THEY HAVE TO DEAL WITH NEXT LEGISLATIVE SESSION.
[01:00:02]
THEY KNEW IT WAS GOING TO HAPPEN IN 2019.THEY DID NOTHING ABOUT IT IN 2021.
AND THEY'RE GOING TO HAVE TO GO BACK NEXT SESSION AND DEAL WITH IT BECAUSE IT'S A PROBLEM.
BUT THEY ONLY OPERATE IN TWO YEAR INCREMENTS.
THEY DON'T WANT TO COMMIT OTHER LEGISLATORS IS WHAT THEY TELL ME.
SO THEY ONLY OPERATE IN TO YEAR INCREMENTS.
THEY DIDN'T DO ANYTHING LAST YEAR THAT WOULD HELP IT OR LAST SESSION.
AND NOW THEY'RE BACK IN A HUGE PROBLEM.
AND WE HAVE TO GO BACK TO SCHOOL FINANCE REFORM AGAIN BECAUSE WE'RE BACK TO WHERE WE WERE IN 2019.
WHEN THEY PROMISED THAT YOUR HOUSE, THAT YOUR TAX BILL WOULD NEVER GO ABOVE 3%.
AND NOW IT IS POSSIBLY WITH PEOPLE LIKE ROUND ROCK ISD.
WE NEED TO UNDERSTAND THIS, AND I'M KIND OF SURPRISED THAT WE HAVEN'T ALREADY UNDERSTOOD THIS.
AND WE DON'T EVEN. I'VE BEEN TRYING TO EXPLAIN IT FOR SEVERAL MEETINGS.
I KNOW IT'S COMPLICATED, BUT I REALLY HAVE BEEN TRYING TO EXPLAIN WHY.
I DON'T NEED IT EXPLAINED TRUSTEE VESSA.
WE WON'T KNOW UNTIL TILL THEY TELL US.
THEY GUARANTEE OUR TIER ONE FUNDING AND OUR TIER TWO FUNDING IS ONLY GOES UP.
IT'S NOT SUBJECT TO RECAPTURE.
SO THE MORE PROPERTY VALUE GOES UP, THE MORE MONEY WE GET.
THAT'S THE WHOLE NATURE OF THE LAW.
AND TIER TWO FUNDING IS NOT SUBJECT TO RECAPTURE.
SO IF PROPERTY VALUES GO UP, WE JUST GET MORE.
SO THE THING YOU'RE WORRIED ABOUT, IT'S NOT GOING TO HAPPEN BECAUSE THE LAW SAYS IT WON'T.
I APPRECIATE THAT AND I'M GLAD THAT'S ON RECORD.
BEFORE I GO, I'D LIKE TO DEFER TO TRUSTEE WEIR IF SHE IF HER BUTTON IS PUSHED.
I WAS GOING TO CIRCLE TO HER AT THE VERY END TO SEE IF SHE HAD ANY QUESTIONS.
SHE CAN'T PUSH A BUTTON REMOTELY.
SO YOU WANT ME TO GO NOW? YES, PLEASE.
GO AHEAD. SO I'M NOT SURE WHICH DIRECTION MR. HUFFINGTON AND DR. AZAIEZ, BUT I'M GOING TO START BY JUST BRINGING THE PUBLIC UP TO SPEED.
AND ACTUALLY, MR. COVINGTON, YOU WERE NOT HERE IN JUNE OF LAST YEAR, RIGHT? YOU CAME ON IN AUGUST.
THANK YOU. SO YOU WEREN'T HERE FOR THIS EITHER.
SO JUST AS A REFRESHER, THIS TIME LAST YEAR, I WAS SITTING IN THIS SEAT AND I VOTED YES ON A PROPOSED TAX RATE OF I BELIEVE THE COMBINED RATE WAS A DOLLAR 12.
YOU DIDN'T VOTE ON A TAX RATE IN JUNE.
WELL, IT WAS THE BUDGET AND PROPOSED TAX RATE SIMILAR TO WHAT WE'RE DOING TONIGHT.
THERE'S A BUDGET WITH A PROPOSED TAX RATE.
I THOUGHT IT WAS SEPARATE, BUT IF YOU'RE SAYING THAT IT WASN'T, I'LL BELIEVE YOU.
WE NEVER VOTE ON THE TAX RATE.
WE NEVER VOTE ON THE TAX RATE UNTIL SEPTEMBER.
NO, I KNOW THAT. BUT THE PROPOSED RATE, WE VOTE ON A BUDGET ASSUMING THAT THAT IS THE TAX RATE.
SO THEN THE BUDGET CAN CHANGE IN SEPTEMBER SHOULD THE TAX RATE CHANGE.
SO WE'RE NOT VOTING ON ANY KIND OF TAX RATE.
SO I JUST WANT TO MAKE SURE WE'RE VERY CLEAR ABOUT THAT BECAUSE WE NEVER VOTE ON A TAX RATE IN JUNE.
SO IN JUNE OF 2021, THERE WAS MUCH DISCUSSION AT THIS DAIS ABOUT WHETHER OR NOT TO ADD AN ADDITIONAL FIFTH GOLDEN PENNY TO OUR CONSIDERATIONS AS TO THE PROPOSED TAX RATE.
THERE WAS MUCH DEBATE ABOUT THIS, AND FOR THOSE WHO'D LIKE TO GO BACK AND WATCH THOSE MEETINGS, I'LL SAY THOSE WERE VERY LIVELY DISCUSSIONS ABOUT WHETHER OR NOT TO ADD THAT FIFTH GOLDEN PENNY.
DR. AZAIEZ, YOU WERE NOT THERE FOR THAT EITHER.
AND IN THE END, WE DECIDED ON A 4 TO 3 VOTE THAT WE WERE NOT GOING TO ADD THAT GOLDEN PENNY.
THREE MONTHS LATER, IN SEPTEMBER OF 2021, THIS BOARD CHANGED COURSE.
AND THIS BOARD DECIDED IN SEPTEMBER OF 2021 TO GO AHEAD AND ADD THAT FIFTH GOLDEN PENNY THAT WAS NOT COMPULSORY. THAT WAS A CHOICE, JUST AS THE CHOICE TODAY TO MAINTAIN ALL FIVE GOLDEN PENNIES IN THIS PROPOSED M&O TAX RATE OF 0.85 IS A CHOICE.
IS THAT CORRECT, MR. COVINGTON?
[01:05:02]
WE'RE NOT VOTING TONIGHT ON WHETHER WE GIVE BACK A GOLDEN PENNY OR KEEP A GOLDEN PENNY TONIGHT.RIGHT. BUT I'M LOOKING AT A DOCUMENT THAT WAS POSTED IN THE NEWSPAPER AND IT'S POSTED ON OUR WEBSITE AND IT'S CALLED THE NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE.
SO MY QUESTION IS THE FIVE ADDITIONAL GOLDEN PENNIES INCLUDED IN THIS PROPOSED TAX RATE OF 0.85.
IS THAT A YES OR NO ANSWER? THAT WOULD BE YES.
THANK YOU. AND THAT'S WHAT I THINK WE'RE TRYING TO GET CLARITY ON.
NOW, ANOTHER QUESTION THAT I HAVE.
IF WE STILL HAD SOME 2019, I WAS NOT ON THE BOARD.
BUT OUR SCHOOL DISTRICT HAD 50 OVER 51,000 STUDENTS IN OUR SCHOOLS.
IF WE HAD THE 51,000 STUDENTS IN OUR SCHOOLS TODAY, INSTEAD OF THE 46,300 STUDENTS IN OUR SCHOOLS, WOULD WE STILL BE LOOKING AT A $70 MILLION RECAPTURE PAYMENT NEXT YEAR? WE'VE ALREADY ADDRESSED THAT, THAT IF WE HAD MORE STUDENTS THAN THE RECAPTURE WOULD BE LOWER.
CAN I ANSWER IT, THOUGH? WE RECEIVE AGAIN.
OUR BASIC ALLOTMENT IS ABOUT LET'S SAY 6200 JUST TO ROUND IT UP.
SO IF WE HAVE THREE, THREE EXTRA THOUSAND STUDENTS, THAT WILL BE 3000 TIMES 6200.
IF YOU NOTE, IF YOU REMEMBER THE SLIDE THAT DENNIS SHOWED ABOUT A PROPOSED BUDGET, WE ARE SLATED TO SEND BACK $75 MILLION NEXT YEAR ON RECAPTURE. SO TECHNICALLY, EVEN WITH 3000 MORE STUDENTS, WE WILL KEEP $18 MILLION OR SO, BUT WE WILL BE SENDING ROUGHLY $50 MILLION ANYWAY TO THE STATE AS PART OF RECAPTURE.
SO CORRECT TO ANSWER YOUR QUESTION.
BUT WE HAD 51,000 STUDENTS IN 2019 AND WE HAVE 46,000 TODAY.
THAT'S NOT A DIFFERENCE OF 3000.
AND 5 THOUSAND STUDENTS TIMES 6160 IS SOMEWHERE IN THE $30 MILLION RANGE.
AND SO I'M TRYING TO CLARIFY THAT THERE WOULD BE A SIGNIFICANT IMPACT TO OUR BUDGET IF WE REGAINED THE TRUST, FAITH AND CONFIDENCE OF THE FAMILIES IN OUR SCHOOL DISTRICT WHO HAVE LEFT AND IF THEY RETURN TO OUR CAMPUSES, IS THAT CORRECT? SO LET ME JUST SAY IT AGAIN.
I MEAN, WE BUDGETED FOR 48 I THINK 48,000 STUDENTS.
RIGHT? AT SOME POINT WE WERE AT 51,000.
SO THAT'S, AGAIN, 3000 STUDENTS LESS.
SO THAT'S THAT'S WHAT WE'RE PROPOSING.
THERE ARE STUDENTS WHO ARE ATTENDING PRIVATE SCHOOLS OR CHARTER SCHOOLS.
BUT THAT'S BEEN, I GUESS, FOR YEARS.
ROUND ROCK ISD HAD STUDENTS WHO ATTENDED THOSE.
I'M LOOKING AT OUR LEGAL HERE.
BUT I THOUGHT THAT WAS IN THIS IS NOT WHAT WE WERE TALKING ABOUT RIGHT NOW.
HOW MANY STUDENTS DID WE HAVE IN 2019? SLIDE TEN SAYS 50,918.
OKAY. WE'VE GOT AN ENROLLMENT REPORT ON THE DISTRICT WEBSITE THAT SAYS 51,000, I THINK 93.
SO I THINK WE CAN AGREE 51,000.
AND HOW MANY STUDENTS DO WE HAVE TODAY? SLIDE TEN SAYS 47,222 WAS OUR ACTUAL ENROLLMENT FOR 2021-2022.
OK, ON THE DISTRICT WEBSITE ON THE ENROLLMENT REPORT, IT SAYS 46,300.
SO THAT'S WHERE I WAS GETTING 5000.
I APPRECIATE THAT DISCUSSION, MR. COVINGTON, WHEN IT COMES TO THE DEFEASEMENT.
HAVE YOU HAD ANY TRUSTEES OR ADMINISTRATORS COME TALK TO YOU ABOUT THIS $6 MILLION DEFEASEMENT PAYMENT ADVOCATING FOR OR AGAINST IT? HAVE YOU HAD ANY? NO, MA'AM.
I HAVE I HAVE IN BOARD MEETINGS EXPRESSED THAT I THINK THIS IS THE YEAR TO NOT MAKE THAT.
I THINK THAT WE'VE GOT 8% INFLATION.
SO I DON'T KNOW THAT THIS IS A TIME WHERE NORMAL PEOPLE ARE DOING THAT.
[01:10:03]
ME BEING ON THE BOARD WAS WHEN I WAS A COMMUNITY MEMBER AND I WAS LISTENING AND THE CONVERSATIONS ABOUT PAYING OFF BOND DEBT EARLY ALWAYS SURROUNDED ONE THING.AND IT WAS THE DESIRE TO GO OUT FOR A FUTURE BOND.
WOULD YOU SAY THAT THAT IS THE MOTIVATION FOR PAYING THIS OFF, FOR MAKING THIS $6 MILLION PAYMENT? IT'S TWO PARTS.
LIKE I SAID EARLIER, IT'S ALWAYS WISE IF YOU HAVE THE FUNDING TO PAY DOWN YOUR DEBT.
THAT'S NUMBER ONE. NUMBER TWO, YES.
IF YOU PAY 6 MILLION MORE NOW, YOU INCREASE YOUR BOND CAPACITY FOR FUTURE DATES.
SO I THINK IT'S REALLY JUST A CHOICE.
AND THAT'S WHY WE HAVE SCHOOL BOARDS.
RIGHT. AND THAT'S WHY WE HAVE.
THANK YOU FOR NODDING. THAT'S WHY WE HAVE TRUSTEES TO EXERCISE JUDGMENT ON WHETHER WE'RE GOING TO PAY OFF BOND DEBT EARLY SO THAT WE CAN GO BORROW MORE MONEY IN THE FUTURE FOR ANOTHER BOND, OR IF WE'RE GOING TO ACKNOWLEDGE THE ECONOMIC PAIN BEING EXPERIENCED BY OUR PROPERTY OWNERS.
AND THAT'S REALLY A DECISION THAT ONLY SEVEN TRUSTEES CAN MAKE.
SO THIS $6 MILLION THAT YOU'RE PROPOSING TO PAY OFF EARLY, PRESUMABLY THAT WAS BORROWED IN AN INTEREST RATE, WAS ATTACHED TO THAT, IS THAT CORRECT? YES. AND PERHAPS AND IF WE GO OUT FOR A FUTURE BOND AND WE BORROW, WE SELL MORE BONDS IN THE FUTURE, WILL AN INTEREST RATE BE ATTACHED TO THAT? YES, MA'AM. OKAY.
DO YOU BELIEVE THAT THE DEBT THAT'S BEING.
WE'RE NOT POSTED TO TALK ABOUT BONDS.
SORRY. WE HAVE TO TALK ABOUT THIS BUDGET.
WE CAN'T TALK ABOUT FUTURE BOND SALES OR ANY OF THAT.
IN ORDER FOR ME. IN ORDER FOR ME TO.
LET ME JUST CLARIFY WITH VALERIE.
ARE WE CORRECT ON THAT ONE? I MEAN, I HAVE ALLOWED SOME OF THE DISCUSSION AS IT WAS PERTAINING TO THE THE BUDGET DISCUSSION.
BUT I DO THINK IT'S KIND OF VEERING TO A LITTLE BIT MORE OF THE BOND DISCUSSIONS SO IF YOU CAN.
I&S TAX RATE. THIS IS IN ORDER FOR ME AS A DECISION MAKER TO BE ABLE.
I'M SORRY, CORY, DO YOU HAVE SOMETHING TO SAY? CORY, YOU WEREN'T RECOGNIZED.
YOU KNOW, I WAS RESPECTFUL OF YOUR TIME.
SO, VALERIE, IN ORDER FOR ME TO BE A GOOD STEWARD OF MAKING A DECISION, I HAVE TO BE INFORMED.
AND IN ORDER FOR ME TO BE INFORMED, I HAVE TO ASK QUESTIONS.
AND WHEN WE'RE TALKING ABOUT THE I&S TAX RATE, THAT IS NOT THAT.
THERE IS A THERE IS A RELATIONSHIP THERE WITH HOW IT RELATES TO CURRENT BONDS, FUTURE BONDS, LITERALLY THE CONVERSATION ABOUT MAKING A $6 MILLION DEFEASEMENT PAYMENT, WHICH IS IN THE BUDGET.
IT'S BEING PROPOSED IN THIS BUDGET.
SO MAY I MAY I CONTINUE? ALL RIGHT. I'D LIKE TO THANK YOU FOR THAT DETAILED EXPLANATION, BECAUSE IT HELPS EXPLAIN IT MORE.
I'M SORRY. I JUST HAVE SOME QUESTIONS ABOUT INTEREST RATES AS IT RELATES TO BONDS SO THAT I CAN SO THAT I CAN UNDERSTAND MORE ABOUT THE $6 MILLION PROPOSED DEFEASMENT PAYMENT AS LONG AS IT CONTINUES TO BE TIED TO THAT.
AND THEN, MR. COVINGTON, IS THIS QUESTIONING RELATED TO THE BOND, IN YOUR OPINION? I MEAN, THE BUDGET I'M SORRY, THE DISCUSSION ON THE BOND RELATED TO THE CURRENT BUDGET, IN YOUR OPINION.
IF IT'S IN RELATION TO THE DEFEASANCE.
DO YOU BELIEVE THAT THAT IS A LOWER INTEREST RATE THAN SOME FUTURE DEBT THAT WE WOULD TAKE ON NEXT YEAR OR THE YEAR AFTER TO BORROW MORE MONEY FOR ANOTHER BOND THAT WE WOULD THEN START PAYING AND MAKING INTEREST PAYMENTS ON? THE INTEREST RATE NOW IS LOWER THAN IT WOULD BE ON FUTURE BONDS WITH THE ECONOMY GOING THE WAY IT'S GOING NOW.
SO IT'S PROBABLY A WISER DECISION TO PAY OFF THE DEBT NOW THAN TO KEEP THE DEBT ON.
AND THEN YOU HAVE TO PAY A HIGHER INTEREST RATE ON.
CAN YOU WALK ME THROUGH THAT? SO LET'S SAY YOU RIGHT NOW YOU'VE 10 MILLION AND OF YOUR DEBT AND IT'S AT 2.6%, 2%.
SO THAT'S NOT A FIXED RATE ON THAT DEBT.
[01:15:03]
I'M SORRY THEY ARE FIXED.I THOUGHT THEY WERE. YES, THEY ARE.
THANK YOU. AND YOU KNOW WHAT? I HAVE A TON OF RESPECT FOR YOU, AND I APPRECIATE THIS DIALOG.
SO THANK YOU. SO I WAS JUST TRYING TO, AS I CONSIDER ALL OF THIS INFORMATION BECAUSE YOU KNOW WHAT? YOU KNOW, WHAT BROUGHT THAT TO MY MIND WAS A CONVERSATION I WAS HAVING WITH ONE OF OUR TEACHERS IN OUR SCHOOL DISTRICT WHO IN HER OWN PERSONAL BUDGET, IS NOT TAKING OUT A CAR LOAN THIS YEAR BECAUSE OF THE INTEREST RATES.
AND SO IT GOT ME THINKING ABOUT THIS.
SO, AGAIN, I'M GOING TO ADVOCATE FOR MY DESIRE FOR THE BUDGET SEE VALERIE, FOR THE BUDGET TO NOT HAVE A $6 MILLION DEFEASEMENT TO ACKNOWLEDGE THE ECONOMIC REALITIES OUR TAXPAYERS ARE EXPERIENCING.
AND I'D RATHER I'D RATHER KIND OF WAIT AND SEE HOW THINGS GO BEFORE WE DO THAT.
WE EVERY JUNE, WE GET TO COME HERE AND MAKE THIS DECISION.
SO. THE OTHER THING I WANT TO.
THE OTHER THING I WANTED TO ASK ABOUT WAS IN THE MAY 19TH BOARD MEETING.
DR. AZAIEZ DO YOU REMEMBER THAT.
WHERE CAN I. WHERE'S THAT INFORMATION? ARE WE TALKING THE PART THAT GOES TO INSTRUCTION? YEAH. SO THERE'S A LINE.
THERE'S A LINE ITEM IN THE ACFR, WHICH IS THE ANNUAL FINANCIAL SURVEY.
CAN YOU SAY THAT ONE MORE TIME, PLEASE? INSTRUCTION FUNCTION 11, FUNCTION 12 AND FUNCTION 13 IS CLASSIFIED AS DIRECT.
SO I'D HAVE TO ADD 50.2 PLUS 1.3.
THOSE ARE THE PERCENTAGES, RIGHT? I'M LOOKING FOR THE PERCENT OF OUR BUDGET THAT GOES DIRECTLY TO EDUCATIONAL EXPENSES.
BUT OUR BUDGET INCLUDES RECAPTURE.
SO IF YOU'RE LOOKING AT AUSTIN ISD OR EANES ISD, THEY COULD POSSIBLY SAY THEY ONLY SPEND 20% OF THEIR BUDGET IN CONSTRUCTION BECAUSE THEY'RE SENDING A CRAP TON OF MONEY BACK INTO THE STATE AND RECAPTURE.
DOES THAT MEAN THEY'RE NOT SPENDING THEIR MONEY ON INSTRUCTION.
POINT OF ORDER. I DON'T BELIEVE TRUSTEE VESSA WAS RECOGNIZED BY THE CHAIR.
THANK YOU. SO IT'S THE ACFR I BELIEVE THERE'S A LINE ITEM.
AM I REMEMBERING THAT RIGHT? YEAH, THAT'S CORRECT.
OKAY. THERE'S A LINE ITEM IN THE ACFR AND IN THE MAY 19TH BOARD MEETING, I VERY RESPECTFULLY AND CLEARLY ASKED TO BE PROVIDED NOT JUST FOR ME.
BUT FOR THE COMMUNITY IN THIS MEETING ON OUR BUDGET WHERE THE BUDGET IS VOTED ON.
FOR THE BUT FOR THE COMMUNITY TO UNDERSTAND WHAT THE PERCENT OF OUR BUDGET IS GOING TO DIRECT EDUCATION EXPENSES FOR THE LAST FIVE YEARS. SO, TRUSTEE WESTON, I UNDERSTAND THAT YOU ASKED FOR IT.
AND WHEN YOU GOT THIS INFORMATION TEN DAYS AGO, DID YOU REMIND ADMINISTRATION OF YOUR THAT THE INFORMATION WAS NOT INCLUDED WHEN YOU GOT THIS DOCUMENT TEN DAYS AGO? BECAUSE, I MEAN, THINGS HAPPEN.
AND I UNDERSTAND THAT MR. COVINGTON HAS ALREADY SAID THAT THEY DIDN'T DO THAT PART.
DID YOU REMIND THEM AGAIN TEN DAYS AGO WHEN YOU GOT THIS PRESENTATION? TEN DAYS AGO, WHEN I GOT THIS PRESENTATION, THERE WERE NO BUDGET DOCUMENTS ATTACHED TO THE AGENDA.
NINE DAYS AGO. THE NEXT NINE DAYS AGO.
I DON'T REMEMBER ANY BUDGET DOCUMENTS BEING ADDED.
I WENT THROUGH A THOROUGH I SENT MANY QUESTIONS.
I WENT TO A MEETING ON THE AGENDA.
I DID NOT IT DID NOT OCCUR TO ME THAT SOMETHING THAT WAS DISCUSSED AND AGREED TO IN OPEN SESSION WAS GOING TO REQUIRE ME TO FOLLOW UP AHEAD OF TIME.
SO I WOULD APPRECIATE THAT INFORMATION IF WE CAN GET IT.
PERHAPS, DR. AZAIEZ, IF YOU CAN HAVE SOMEBODY JUST PRESENT THAT FIND THAT FOR US.
YEAH, I KIND OF HAVE A LITTLE BIT OF A POINT OF ORDER.
IT'S MY UNDERSTANDING THAT WE DON'T INDIVIDUALLY DIRECT STAFF TO DO ANYTHING.
SO DID WE HAVE AGREEMENT THAT WE NEEDED THOSE FIGURES? OKAY. THANK YOU FOR THAT CLARIFICATION.
[01:20:03]
HAVE TWO REALLY BAD CHOICES.BUT IN THIS CASE, ON THIS BUDGET, I FEEL LIKE THIS BUDGET DOES BALANCE THE NEED OF COMMUNITY.
5% DECREASE IN TERMS OF THE TAX RATE, DO I HAVE THAT CORRECT ROUGHLY? RIGHT. SO AND THEN WE'RE STILL MEETING ALL THE NEEDS OF STUDENTS AND STAFF AND THEN.
YOU KNOW, SO THIS IS BALANCED.
WE CAN'T ACT LIKE, OH, YOU JUST COMPLETELY DISREGARDED THE COMMUNITY.
PART OF OUR JOB AS TRUSTEES IS COMMUNICATION WITH THE COMMUNITY, RIGHT.
AND WHAT I DON'T WANT TO DO IS UNDERMINE THE EXPERTISE OF THESE PROFESSIONALS.
BUT IT IS NOT OUR JOB AS TRUSTEES TO COMPLETELY UNDERMINE THE EXPERTISE OF THE PEOPLE IN THIS.
OKAY, I HAVE A POINT OF ORDER.
WHAT IS YOUR POINT? I JUST HEARD TRUSTEE HARRISON ACCUSE ME OF UNDERMINING THE WORK OF A STAFF MEMBER.
FIRST OF ALL, I DIDN'T SAY A NAME, BUT, MADAM CHAIR, SOMETIMES A HIT DOG COLLAR.
TIFFANIE IF YOU GO BACK AND LISTEN, I HAVE ACKNOWLEDGED THAT ASKING QUESTIONS IS NOT UNDERMINING IT.
IT IS OUR JOB. IT IS FINE TO ASK QUESTIONS, BUT ALSO SOME OF THESE QUESTIONS THAT ARE ASKED TONIGHT SHOW A LACK OF OUR PREPARATION TO UNDERSTAND THE MOST BASIC CONCEPTS AROUND A BUDGET.
AND I SAID OUR SO PLEASE, NOBODY FEEL LIKE I'M SINGLING ANYONE OUT.
I COULD BE TALKING TO MYSELF TOO.
I WOULD LIKE TO BE CLEAR THAT WE DO VOTE ON THE BUDGET SEPARATELY FROM THE TAX RATE.
WE DID NOT VOTE ON A TAX RATE LAST YEAR IN MAY OR JUNE BECAUSE I DON'T WANT OUR COMMUNITY MISUNDERSTANDING AND I DON'T WANT TO CREATE MORE TENSION AND DISSENT IN THE COMMUNITY BASED ON OUR LACK OF UNDERSTANDING OF HOW THINGS ARE MOVING.
SO IS THERE A MECHANISM FOR US TO MOVE FORWARD? DO I NEED TO MAKE A MOTION SINCE WE WILL ALSO DISCUSS BUDGET IN THE NEXT HOUR AS WELL? YOU CAN MAKE A MOTION.
I WOULD LOVE THE OPPORTUNITY TO ASK QUESTIONS.
I MEAN, I'M THE ONLY TRUSTEE THAT HAS NOT HAD AN OPPORTUNITY TO ASK QUESTIONS.
AND I HAVE TWO. THAT'S VERY FAIR.
SO, MR. COVINGTON, I HAVE FIRST I'M SORRY, I'M NOT THE ONLY TRUSTEE.
I HAVE IT AT THE TOP OF MY SLIDE.
A TOP OF MY SHEET. TRUSTEE WEIR? ANY QUESTIONS? WELL, I DID.
I HAD A COUPLE. BUT I DO WANT TO ECHO TRUSTEE HARRISON AND I THINK WE NEED TO SPEED THIS UP.
BUT I DID. MY ONE QUESTION I'LL ASK RIGHT NOW IS, IF WE DIDN'T DO THAT $6 MILLION DEFEASEMENT PAYMENT, I MEAN, WHAT WOULD IT ACTUALLY SAVE EACH INDIVIDUAL TAXPAYER? I THINK IT'S A PENNY, RIGHT? IT WOULD REDUCE THE TAX BY ONE PENNY, TRUSTEE WEIR.
YES. SO SO TRUSTEE WEIR USES ONE PENNY.
SO IN A 500,000, I THINK WE CALCULATED THAT, RIGHT? THEN WE HAD SOME NUMBERS FOR A TAXPAYER, I THINK IT'S $100 FOR A HALF A MILLION DOLLAR HOME OR PROPERTY HOME WOULD BE ABOUT, I THINK, $100 A YEAR WHERE IT WOULD BE ABOUT ROUGHLY $9 OR $8 PER MONTH.
THANK YOU. ANY OTHER QUESTIONS? TRUSTEE WEIR. OK.
I HAVE A SIMILAR QUESTION ON DEFEASEMENT AND.
FIRST ONE IS IF WE DID NOT MAKE THE 6 MILLION PAYMENT DEFEASEMENT PAYMENT.
HAVE YOU DONE ANY CALCULATIONS ON HOW MUCH IT WOULD ADD TO THE LIFETIME PAYMENTS OF THAT LOAN? BECAUSE PAYING OFF EARLY DOES SAVE US ON INTEREST PAYMENTS MOVING FORWARD.
SO IS IT 6 MILLION NOW OR 6 MILLION LATER AND INCREASED INTEREST FEES OVER THE LIFE OF THAT? THAT WOULD BE INTERESTING TO KNOW.
I HAVEN'T LOOKED AT THAT MA'AM.
BUT THAT WOULD BE AN INTERESTING THING TO KNOW HOW MUCH PAIN THAT WOULD ACTUALLY SAVE US.
MY OTHER QUESTION IS ON SLIDE 15.
SORRY, I HAVE LET ME GET BACK TO MY SLIDES.
I DO WANT TO SOMEBODY HAVE CAN YOU TURN YOUR MICROPHONE OFF? WE GET A LITTLE BIT OF FEEDBACK WHEN THERE'S MORE THAN ONE ON.
I JUST WANTED TO GO BACK AND VERIFY.
THE BOARD DID RECEIVE ON JUNE 7TH THE BUDGET HEARING SLIDES.
EVERYBODY ON THE BOARD RECEIVED IT.
SO LET ME GO BACK TO MY SCREEN WITH THE BUDGET ON SLIDE 15.
[01:25:05]
BECAUSE THERE ARE SOME TRUSTEES THAT HAVE PUBLICLY STATED THAT THAT IS ALL SPENT ON OUR ISD PD AND I DON'T BELIEVE THAT'S TRUE.NO, THAT INCLUDES THE POLICE DEPARTMENT, CROSSING GUARDS, HOME HALL MONITORS AND PURCHASE OF BADGES, SUPPLIES. IT'S NOT JUST THE POLICE DEPARTMENT.
AND OUR ESTIMATED POLICE DEPARTMENT BUDGET IS AROUND 2.3, I BELIEVE? IT'S A LITTLE MORE THAN THAT.
IT'S RIGHT AT 3 MILLION, I THINK ABOUT 3.2 OR 3.3 MILLION.
OKAY. HAVE MY NUMBERS REVERSED.
OKAY. THOSE ARE THE ONLY TWO QUESTIONS I HAD.
SO, TRUSTEE HARRISON, IF YOU WANTED TO MAKE YOUR MOTION NOW.
AND SO THAT ADDS UP TO LIKE 53.35% THIS YEAR.
60. BUT THERE HAS BEEN SOME CHANGES.
WELL, NO, THAT WOULD. IT MIGHT HAVE CHANGED A LITTLE BIT.
I UNDERSTAND WE HAVE NEW PROPOSED BUDGET CHANGES FOR THIS YEAR.
TURN YOUR LIGHT ON. THERE YOU GO.
TRUSTEE. HARRISON. I'D LIKE TO MOTION THAT WE AND VALERIE THAT WE END DISCUSSION AND PICK UP THIS DISCUSSION IN THE NEXT HOUR AS WE CONTINUE BUDGET. IS THAT AN APPROPRIATE MOTION? I SECOND.
YOU HAVE ON THE REGULAR BOARD MEETING BUDGET THE ADOPTION OF THE 22-23 BUDGETS.
WE'RE NOT MAKING ANY MOTIONS OR APPROVING ANYTHING DURING THE PUBLIC HEARING.
SO I HAVE A MOTION I HAVE A SECOND TO END DISCUSSION ON THE PROPOSED 2022 2023 BUDGET AND TAX RATE.
ANY DISCUSSION? ALL IN FAVOR OF RAISE YOUR HAND.
ALL OPPOSED MOTION PASSES FOUR - TWO.
SEEING NOTHING ELSE ON THE AGENDA.
WE ARE ADJOURNING THE PUBLIC HEARING AT 6:58.
WE WILL TAKE A TEN MINUTE RECESS TO REGROUP AND WE'LL START OUR NEXT MEETING IN 10
MINUTES.
* This transcript was compiled from uncorrected Closed Captioning.