[A. CALL TO ORDER]
          [00:00:02]
          IT IS 5:31 ON THURSDAY, MARCH 9TH, 2023. 
          I HEREBY CALL THIS MEETING OF THE ROUND ROCK INDEPENDENT SCHOOL DISTRICT BOARD OF
TRUSTEES CALLED BOARD MEETING TO ORDER. 
          PLEASE STAND FOR THE PLEDGE. 
          WE HAVE NO PUBLIC COMMENTS TONIGHT, SO WE'RE GOING TO MOVE DIRECTLY INTO AGENDA ITEM D
ONE PURSUANT TO TEXAS GOVERNMENT CODE, SECTION 551 .071, 
          [D. CLOSED SESSION]
551.074 AND 551.0821. 
          THE BOARD WILL DISCUSS DELIBERATE AND CONSIDER THE LEVEL THREE PARENT COMPLAINT OF MO
AND CA. 
          IT IS 5:32 AND WE ARE NOW GOING INTO CLOSED SESSION. 
          I'LL ASK ANYBODY WHO DOES NOT HAVE THIS NOT PARTICIPATING IN THE GRIEVANCE TO PLEASE EXIT
THE BOARDROOM. 
          [E. CALL BACK TO ORDER/EXECUTIVE SESSION MOTIONS]
IT IS 8:12. 
          THE BOARD IS NOW BACK IN OPEN SESSION. 
          DO I HAVE ANY MOTIONS REGARDING THE LEVEL THREE PARENT COMPLAINT OF MO AND CA? TRUSTEE WESTON. 
          YES MA'AM. I MOVE TO GRANT THE REMEDY REQUESTED ON PAGE ONE OF 72 IN THE GRIEVANCE PACKET
TONIGHT UNDER NUMBER FIVE TO THE GENERAL COUNSEL. 
          SHOULD I READ THAT OR JUST REFER TO WHERE IT IS IN THE DOCUMENT? NO, MA'AM. JUST REFER TO IT. 
          OKAY. THAT'S MY MOTION. 
          I SECOND THAT MOTION. 
          I HAVE A MOTION AND A SECOND. 
          ANY OTHER COMMENTS? I DO HAVE A COMMENT. 
          THE REASON THAT I'LL BE VOTING FOR THIS MOTION IS BECAUSE AFTER REVIEWING SOMEWHERE
AROUND 72 PAGES OF DOCUMENTATION THAT WAS PROVIDED TO ME. 
          I COULD NOT FIND WHERE THE GRADE THAT WAS PRESENTED. 
          WE HAVE TO BE CAREFUL WITH THE SPECIFICS BECAUSE THAT WAS ALL DONE IN CLOSED. 
          OKAY. WELL, I'LL TRY. 
          THANK YOU. THAT THE GUIDELINES THAT WE HAVE FOR THIS PARTICULAR SCHOOL SHOULD ALIGN WITH OUR POLICIES AS THAT IT POINTS TO THE GUIDELINES. 
          AND THEN AS I READ THE GUIDELINES, WHAT WE WERE PRESENTED DOES NOT SEEM TO FOLLOW THOSE
GUIDELINES AND I CANNOT FIND ANYWHERE IN THOSE GUIDELINES WITH WHAT HAPPENED SHOULD HAVE BEEN GIVEN AS SUCH FOR THAT PARTICULAR SUBJECT. 
          TRUSTEE WESTON. AND BEFORE WE VOTE, I WOULD JUST LIKE TO SAY THAT I THOROUGHLY REVIEWED
ALL 72 PAGES. 
          I LISTENED TO THE GRIEVANCE HERE TONIGHT. 
          I LISTENED TO THE ADMINISTRATION. 
          I ASKED A LOT OF QUESTIONS. 
          WE HAD A LIVELY DEBATE IN HERE AND I WANT TO EXTEND MY APPRECIATION TO THE GRIEVANT FOR
GOING THROUGH THE PROCESS AND HELPING TO EDUCATE THE ELECTED OFFICIALS PRESENT TONIGHT ON HER EXPERIENCE. 
          AND I'D LIKE TO VOTE. 
          ANY OTHER COMMENTS? SEEING NONE. WE HAVE A MOTION AND A SECOND. 
          ALL IN FAVOR. RAISE YOUR HAND, ALL OPPOSED. 
          I'M ABSTAINING. 
          MOTION FAILS. 2-4-1. 
          ANY OTHER MOTIONS? NO. ANY OTHER COMMENTS? I WAS JUST GOING TO ASK BECAUSE WE DID HAVE A LIVELY DISCUSSION ABOUT THE POLICY AND
ABOUT THE GUIDELINES. 
          IF WE CAN OFFICIALLY ASK THE ADMINISTRATION TO TAKE A LOOK AT THIS AND TO IF THERE IS
POLICY CHANGE, BRING IT BACK TO US, BUT ALSO LOOK FOR SOME COMMON GROUND ACROSS OUR CAMPUSES. 
          I DO THINK THAT THERE'S I'M SEEING CONSENSUS ACROSS THE DAIS FOR THAT. 
          SO LET ME KNOW IF YOU NEED ANY FURTHER CLARIFICATION ABOUT THAT. 
          DR. AZAIEZ, I APPRECIATE IT. 
          JUST FOR THE BOARD TO KNOW, WE'RE DOING A POLICY REVIEW. 
          IT'S HAPPENING. 
          ACTUALLY, WE SHOULD BE DONE NEXT MONTH, MONTH OF APRIL, AND THAT WILL INCLUDE OUR GRADING
POLICY. 
          OBVIOUSLY, THAT IS PART OF THAT. 
          BUT ALSO WHAT I'VE HEARD FROM YOU, ALSO OUR BOARD MEMBERS AND WE'LL BE MORE THAN HAPPY TO
DO THIS TOO, IS LOOK AT OUR GRADING PROCEDURES THAT WE HAVE IN EVERY CAMPUS AND MAKE SURE THAT THERE'S JUST BE CAREFUL ABOUT WHAT WE'RE TALKING ABOUT. 
          I KNOW IT'S SO HARD, BUT YOU'RE GOING TO WORK ON IT, IS WHAT I'M HEARING. 
          THANK YOU. THAT'S IT. HAVING NO MOTIONS THAT HAVE PASSED, THEN THE DECISION OF LEVEL TWO
WILL REMAIN IN PLACE. 
          AND THIS ACTION SATISFIES THE BOARD'S OBLIGATION TO STOP, LOOK AND LISTEN TO THE
GRIEVANCE IN ACCORDANCE WITH BOARD POLICY F AND G LEGAL. 
          IT IS 8:16. 
          I'D LIKE TO TAKE A TEN MINUTE RECESS BEFORE WE COME BACK AND GET TO OUR NEXT AGENDA ITEM. 
          [00:05:03]
SO WE ARE IN RECESS. 
          SESSION. WE ARE GOING TO MOVE ON TO AGENDA ITEM F ONE PUBLIC FACILITY CORPORATION
PRESENTATION, AND I WILL TURN IT OVER TO DR. 
          [F.1. Public Facility Corporation Presentation]
AZAIEZ. THANK YOU, MADAM PRESIDENT, BOARD MEMBERS, COMMUNITY MEMBERS. 
          I KNOW THAT WE'VE BEEN TALKING A LOT ABOUT CREATIVE WAYS TO RECRUIT AND MORE IMPORTANTLY,
RETAIN OUR GREAT TEACHERS. 
          SO THIS IS ONE OF THOSE THINGS THAT WE WANT TO INTRODUCE TO YOU. 
          ONE WAY THAT POSSIBLY, IF YOU WITH YOUR APPROVAL, CAN ALLOW US MAYBE TO RETAIN AND RECRUIT
QUALITY TEACHER, WHICH IS PROVIDING POSSIBILITY FOR THEM TO HAVE HOUSING FOR TEACHER HOUSING AT A REDUCED RATE. 
          SO THIS CREATIVE WAY, IT'S THROUGH WHAT'S CALLED PUBLIC FACILITIES CORPORATION. 
          AND SO WITH US TONIGHT IS OUR FINANCIAL ADVISER FROM ROSA ESTRADA, AND HE WILL BE TALKING
TO US A LITTLE BIT ABOUT THE POSSIBILITY TONIGHT IS JUST A PRESENTATION. 
          WE'RE NOT ASKING YOU TO TAKE ANY NECESSARILY ANY VOTE. 
          IF YOU WANT US TO EXPLORE SOME MORE, WE JUST LET US KNOW AND WE'LL EXPLORE SOME MORE. 
          AND HE WILL BE MORE THAN HAPPY TO TO EXPLAIN TO YOU ALSO THE PROCESS. 
          AGAIN, JUST FOR US TONIGHT TO LEARN MORE ABOUT THIS PUBLIC FACILITY CORPORATION AND HOW
IF THE BOARD DESIRES TO DO THAT, IS TO MAYBE HELP US HAVE TEACHER HOUSING AGAIN, TO HELP US TO RETAIN AND RECRUIT OUR GREAT
TEACHERS FOR OUR DISTRICT. 
          CAN I HAVE A POINT OF ORDER FIRST, I JUST HAVE SOME QUESTIONS BEFORE WE GET STARTED SO
THAT I CAN. 
          THIS IS FRAMED IN THE RIGHT WAY. 
          IS THAT OKAY, MADAM PRESIDENT? YEAH. SO YOU'RE REQUESTING A POINT OF ORDER? YES, BECAUSE. WELL, MY POINT. 
          I JUST WOULD LIKE TO ASK SOME QUESTIONS. 
          WOULD THAT BE OKAY? SO JUST ROBERT'S RULES. 
          YOU JUST REQUEST POINT OF ORDER, AND THEN YOU ACKNOWLEDGED AND THEN YOU GO FORWARD. 
          JUST SO WE'RE FOLLOWING ROBERT'S RULES. 
          BUT YES, WHAT IS YOUR POINT? MY POINT IS, I WAS WONDERING, BEFORE WE EVEN START THIS FOR ONE WHO REQUESTED THIS, IS
THIS COMING FROM THE ADMINISTRATION? SO THAT'S THE FIRST QUESTION. 
          YES, DR. 
          BONE, IT'S COMING FROM US. 
          IT'S AN IDEA THAT WE THOUGHT ABOUT IT WITH OUR CFO AND THE TEAM. 
          AGAIN, WE WERE ASKED TO COME UP WITH CREATIVE WAYS OR IDEAS TO RETAIN AND RECRUIT QUALITY
TEACHERS. 
          AND WE KNOW THAT ONE OF THE CONCERNS WE HEARD FROM TEACHERS IS LIKE THEY CANNOT AFFORD TO
LIVE WITHIN OUR ROUND ROCK ISD BOUNDARIES. 
          AND SO WE THOUGHT THIS HAVING THIS CONVERSATION OR DISCUSSION ABOUT PUBLIC FACILITIES
CORPORATION, WITH YOUR APPROVAL, WITH OUR BOARD APPROVAL, WE CAN ENTERTAIN IT SOME MORE. AND THAT POTENTIALLY COULD ALLOW US TO HAVE AGAIN, HOUSING FOR
TEACHERS. 
          OKAY. AND THEN MY SECOND QUESTION WAS, AND MAYBE THIS IS FOR YOU, PRESIDENT LANDRUM, WHY
IS THIS COMING TO US TONIGHT IN A BUDGET WORKSHOP AND NOT IN OUR REGULAR BOARD MEETING? THAT'S JUST IN LIKE A WEEK AND A HALF. 
          I WOULD LIKE SOME BECAUSE I DO BELIEVE THIS IS SOMETHING OUR COMMUNITY WOULD BE VERY
INTERESTED IN. 
          BUT I JUST BELIEVE THAT THIS WAS NOT CAUGHT BY OUR COMMUNITY. 
          SO I'M WONDERING WHY IT WAS THIS EVENING. 
          IT WAS JUST PROPOSED BY THE ADMINISTRATION AND WE HAD TIME TONIGHT TO ADDRESS IT. 
          OUR MARCH AGENDA IS GOING TO GO OUT TO THE BOARD TOMORROW AND IT IS QUITE LENGTHY SINCE
WE HAD SEVERAL ABSENCES AT OUR FEBRUARY MEETING. 
          SO WE HAD SOME INFORMATION THAT WE HAD TO PUNT FROM FEBRUARY TO MARCH. 
          SO OUR MARCH MEETING IS GOING TO BE QUITE LENGTHY. 
          AND SO IT IS POSTED, AS DR. 
          AZAIEZ SAID, AS DISCUSSION ONLY. 
          SO IT IS AN OPPORTUNITY FOR US TO HAVE A DISCUSSION ABOUT IT. 
          THEN WE CAN RETURN TO OUR COMMUNITY, GET ANY KIND OF FEEDBACK, AND IT WILL COME BACK TO A
FUTURE MEETING. 
          AND SINCE NO DECISIONS WILL BE MADE TONIGHT MARY JUST INFORMATION PURPOSES TONIGHT. 
          I APPRECIATE THAT. THANK YOU VERY MUCH. 
          AND THEN THE ONLY QUESTION AND THEN THE OTHER QUESTION BEFORE WE GET STARTED SO WE'RE IN
THE RIGHT FRAME AND CONTEXT IS AT THE END OF THIS, IT SAID ACTUALLY ACQUISITION OF NEW ADMINISTRATION BUILDING. 
          BUT YOU'RE SAYING THIS IS ACTUALLY FOR TEACHER HOUSING? I THINK THAT THE PRESENTATION WAS PUT TOGETHER. 
          IS THAT GIVING YOU SOME EXAMPLES OR OPTIONS THAT WHAT A PFC COULD BE USED FOR? I KNOW PFLUGERVILLE, FOR EXAMPLE, ARE DOING IT. 
          I'M USING IT TO HAVE LIKE AN ADMINISTRATION BUILDING DOESN'T MEAN THAT WE ROUND ROCK ISD
WILL GO THAT ROUTE. 
          REALLY FOR US, THE IDEA CAME PRIMARILY IS TO LOOK AT WAYS AGAIN TO PROVIDE AFFORDABLE
TEACHER HOUSING. 
          SO THAT CAN HELP US, AS I SAID, RECRUIT AND RETAIN QUALITY TEACHERS FOR OUR DISTRICT. 
          OKAY. I APPRECIATE THAT BECAUSE IT WAS ON THE TIMELINE FOR ROUND ROCK ISD, SO IT WAS JUST
A CARRYOVER. 
          BUT I APPRECIATE THAT JUST TO MAKE SURE I UNDERSTOOD WHAT WE WERE BEING PRESENTED. 
          THANK YOU. NO PROBLEM. 
          DR. [INAUDIBLE] AND I WANT EVERYBODY TO KNOW, I MEAN, WE WON'T BE MOVING FORWARD WITH
ANYTHING WITHOUT OUR BOARD APPROVAL. 
          [00:10:05]
AGAIN, THIS IS JUST THE FIRST TIME WE'RE HAVING CONVERSATION AND WE WANT IT TO. 
          SHARE THIS OPTION. 
          AND AGAIN, THIS IS REALLY THINKING OUTSIDE THE BOX WITHOUT GOING FOR LIKE A FULL BOARD
AND WAITING FOR APPROVAL. 
          THIS IF THE BOARD DESIRES. 
          SO IT WILL ALLOW US TO TO MAKE THIS A REALITY FOR OUR TEACHERS ACTUALLY AT A FASTER RATE. 
          I JUST HAVE ONE MORE THING BEFORE WE MOVE ON. 
          TRUSTEE WESTON ARE YOU JOINING US AT THE DAIS? BECAUSE TECHNICALLY YOU'RE NOT HERE BECAUSE YOU'RE NOT AT THE DAIS. 
          RIGHT. OKAY. 
          SO LIKE WE'LL HAVE TO PUT IT IN THE MEETING MINUTES THAT YOU'RE NOT PRESENT FOR THIS PART
OF THE MEETING. 
          YEAH, JUST MAKING SURE. 
          OKAY. SORRY. 
          GO AHEAD NOW. JUST TAKING CARE OF SOME BUSINESS AHEAD OF TIME. 
          NO WORRIES. ABSOLUTELY. 
          WELL, PRESIDENT LANDRUM, TRUSTEES, DR. 
          AZAIEZ, IT'S A PLEASURE FOR ME TO BE HERE TONIGHT. 
          FOR THE RECORD, MY NAME IS RUDY MEJIA WITH ESTRADA GNAGE ROSA AND I SERVE AS PART OF THE
FINANCIAL ADVISORY GROUP THAT SERVES ROUND ROCK INDEPENDENT SCHOOL DISTRICT. 
          AND SO, AS MENTIONED, THIS PRESENTATION IS JUST FOR INFORMATION PURPOSES ONLY. 
          I THINK, YOU KNOW, THE MARKET HAS CHANGED AS FAR AS HOW SCHOOL DISTRICTS CAPITALIZE
BUILDINGS AND INFRASTRUCTURE AND. 
          YOU WILL START HEARING QUITE A BIT OF TALK IN THE NEAR FUTURE. 
          I KNOW MANY OF YOU ATTEND CONFERENCES THROUGHOUT THE STATE AND RECENTLY I SPOKE ON A
PANEL SPECIFICALLY ABOUT FCS AND HOW THAT'S IMPACTING SCHOOLS AND AND HOW THEY'RE USING THEM AS A TOOL. 
          AND SO TONIGHT, WE JUST WANT TO EXPLAIN THE TOOL THAT IS AVAILABLE TO YOU, THE BOARD, IF
YOU SO CHOOSE, AND DESCRIBE A LITTLE BIT ABOUT WHAT WE CAN DO WITH THAT TOOL IF THE OPPORTUNITY PRESENTS ITSELF. 
          I'M NOT SURE HOW I GO ABOUT SWITCHING SLIDES. 
          YOU JUST CAN SAY NEXT, IS THERE ONE THE NEXT? OH, MAN, LOOK AT THAT. THERE YOU GO. 
          I DON'T THINK HE'S CONTROLLING IT WITH HIS LAPTOP. 
          SO IF YOU JUST SAY NEXT, THEY'LL ADVANCE IT. 
          OKAY. THE SECRET PEOPLE IN THE BACK. 
          SECRET FOLKS IN THE BACK RECORDING US. 
          OKAY. SO A PUBLIC FACILITY CORPORATION, THE WAY I LIKE TO THINK ABOUT THIS IS IT'S
ANOTHER SIDE BUSINESS OF A SCHOOL DISTRICT, RIGHT? IT'S A CORPORATION THAT IS SET UP AND GOVERNED BY THE SAME BOARD THAT GOVERNS ROUND ROCK
INDEPENDENT SCHOOL DISTRICT. 
          AND SO IT IS A ENTITY THAT THE STATE ALLOWS SCHOOL DISTRICTS TO IMPLEMENT. 
          AND YOU SEE ON THE SLIDE, IT'S TEXAS CHAPTER OR LOCAL GOVERNMENT CODE, CHAPTER 303 THAT
ALLOWS SCHOOL DISTRICTS TO CREATE THESE ENTITIES. 
          AND THE BEAUTY ABOUT A PFC IS THERE ARE MANY TAX BENEFITS THAT COME IN PLACE WITH THAT. 
          AND THEY'RE ALLOWED TO OPERATE AND GOVERN LIKE A REGULAR MUNICIPALITY, RIGHT? LIKE ANOTHER CITY OR A COUNTY OR ANOTHER SCHOOL DISTRICT. 
          SO YOU HAVE BONDING AUTHORITY AND THE BOARD WILL VOTE FOR ON ACTIONS THAT PERTAIN TO THE
PUBLIC FACILITY CORPORATION. 
          NEXT SLIDE, PLEASE. 
          AS DR. AZAIEZ MENTIONED, THERE ARE SCHOOL DISTRICTS LOCALLY THAT ARE IMPLEMENTING THIS
AND LOOKING AT THE PFC STRUCTURE AS A TOOL. 
          THE MOST RECENT EXAMPLE IS PFLUGERVILLE INDEPENDENT SCHOOL DISTRICT. 
          I'M FAMILIAR WITH THAT SCHOOL DISTRICT. 
          THE ADMINISTRATION BUILDING HAS GROWN TO ITS CAPACITY, RIGHT? I MEAN, SEVERAL ADMIN FOLKS ARE SHARING OFFICES AND THEY HAD TO EXPAND. 
          AND SO NEXT DOOR TO THE ADMIN BUILDING IS A CHURCH THAT THE SCHOOL DISTRICT PURCHASED
THROUGH THE UTILIZATION OF A PFC. 
          AND SO THE WAY THE PFCS GET REVENUE RIGHT IS THROUGH TYPICALLY WHAT'S CALLED A LEASE
REVENUE BOND. 
          SO LET ME JUST USE AN EXAMPLE OF THE APARTMENT COMPLEX, RIGHT? LET'S SAY, FOR INSTANCE, ROUND ROCK INDEPENDENT SCHOOL DISTRICT FINDS AN APARTMENT
COMPLEX THAT THEY'D LIKE TO TURN INTO TEACHER HOUSING. 
          WELL, THE RENT PAYMENTS FROM THE TEACHER THAT THE TEACHERS ARE PAYING TO LIVE IN THE
APARTMENTS GO BACK TO PAY THE BONDS THAT ARE ISSUED FOR THE DEVELOPMENT OF THAT APARTMENT COMPLEX. 
          RIGHT. SO IT DOES NOT IMPACT THE BUDGET WHATSOEVER AS FAR AS LIKE A HOUSING PROJECT IS
CONCERNED. 
          THERE'S AN EXAMPLE IN HERE THAT KIND OF GRAPHICALLY OUTLINES THAT FOR YOU THAT I'LL GO
OVER IN A BIT. 
          BUT THESE ARE THINGS THAT WE'RE LOOKING AT AT AUSTIN ISD RIGHT NOW. 
          WE'RE LOOKING AT THEM AT PFLUGERVILLE ISD. 
          IF YOU SAW THIS PAST NOVEMBER, PFLUGERVILLE ISD PASSED A TEACHER HOUSING BOND THAT'S
GOING TO BE PART OF THEIR PFC. 
          AND RIGHT NOW, AUSTIN ISD IS IN THE PROCESS OF SETTING UP THEIR PFC TO EXPLORE TEACHER
HOUSING. 
          [00:15:07]
I MEAN, YOU KNOW, I LIVE IN CENTRAL TEXAS. 
          I KNOW YOU ALL ARE HERE IN ROUND ROCK. 
          IT IS A CONCERN, YOU KNOW, THE RISING COSTS OF OF HOUSING. 
          AND I'M FULLY AWARE OF HOW IT IMPACTS YOUR TEACHERS AND THEIR ABILITY TO LIVE WITHIN THE
DISTRICT. 
          SO THIS IS KIND OF AN INNOVATIVE WAY OF. 
          COMBATING THE INCREASING COSTS THAT ARE OUR TEACHERS AND STAFF HAVE. 
          AND SO WITH THAT, I'LL GO TO THE NEXT SLIDE. 
          I'VE ALREADY TALKED ABOUT PFLUGERVILLE ISD. 
          YOU KNOW, PFCS HAVE BEEN AROUND FOR QUITE SOME TIME NOW. 
          THERE'S NOT A NEW CONCEPT. 
          IT'S NOT SOMETHING THAT I CREATED. 
          THIS IS A TOOL THAT WE'RE KIND OF RESHAPING FOR SCHOOL DISTRICTS PARTICULAR. 
          HOUSTON ISD HAS HAD A REALLY LARGE PFC PROGRAM FOR THE PAST TEN OR SO YEARS AND IS A
REALLY GOOD EXAMPLE OF HOW YOU COULD LEVERAGE LEASE REVENUES TO OFFSET COSTS AND GROW BUILDINGS. 
          WERE YOU ABOUT TO SAY SOMETHING? YEAH, I JUST WANT TO CLARIFY TO OUR BOARD MEMBER AND I KNOW AND I DON'T WANT TO STEAL
YOUR THUNDER BECAUSE I KNOW YOU'RE THE EXPERT HERE, BUT IT'S PRETTY MUCH FOLKS, YOU KNOW. 
          QUESTION HOW CAN WE OFFER LIKE A REDUCED RATE, FOR EXAMPLE, OR AFFORDABLE HOUSING RATE? REMEMBER, WE TAX PROPERTIES, RIGHT? SO IF WE OWN THIS PROPERTY, LET'S SAY A BUILDING, RIGHT. 
          WE WON'T BE TAXING IT BECAUSE IT'S OWNED PRETTY MUCH BY THE SAME BOARD. 
          RIGHT? IT'S A NONPROFIT ORGANIZATION, BUT IT'S ATTACHED TO OUR DISTRICT, RIGHT? SO THAT WAY THE COST WILL BE LESS. 
          AND IN ADDITION, WE ARE NOT IN IT FOR PROFIT. 
          REALLY. THE IDEA IS IF YOU HAVE THIS PROPERTY, LET'S SAY WE DECIDE TO GO AND BUY THESE
APARTMENT COMPLEXES FOR OUR TEACHERS, THE IDEA IS JUST TO GIVE THEM A REDUCED RATE SO THEY CAN AFFORD TO LIVE WITHIN ROUND ROCK ISD. 
          WE'RE NOT IN IT TO MAKE MONEY. 
          WE ARE. WE JUST NEED THE RENT, THE MINIMUM RENT SO WE CAN PAY BACK THE LOAN THAT WE WILL
GET TO HAVE TO PURCHASE THIS PROPERTY. 
          DOES THAT MAKE SENSE? SO WE ARE NOT IN IT TO MAKE MONEY, BUT AT THE SAME TIME, WE'RE NOT
GOING TO BE ASKING OUR TAXPAYERS TO PAY FOR OUR TEACHERS TO LIVE IN THIS PROPERTY PER SE. 
          SO IT'S REALLY TO BECOME LIKE ALMOST A WASH REDUCED RATE FOR TEACHERS, BUT ALSO IN THE
SAME TIME NOT PUTTING OUR DISTRICT M&O KNOW, LIKE USING M AND O OR ANY OR ANYTHING OR TAXPAYERS MONEY TO COMPENSATE FOR FOR THAT RATE. 
          THAT'S ABSOLUTELY RIGHT. 
          AND IF WE GO TO THE NEXT SLIDE, THIS GRAPHIC. 
          I ACTUALLY TOOK THIS GRAPHIC FROM THE SAN ANTONIO EXPRESS NEWS BECAUSE I FELT LIKE IT
REALLY CLEARLY OUTLINED AN EXAMPLE OF A PFC AND HOW IT WORKS. BUT LET'S SAY ROUND ROCK INDEPENDENT SCHOOL DISTRICT OWNS A PARCEL OF LAND THAT
THEY BELIEVE WOULD SERVE AS A GOOD SITE FOR A NEW APARTMENT COMPLEX. 
          REALLY? ROUND ROCK WOULD TRANSFER OVER THE LAND TO THE PFC AT A SMALL COST, RIGHT? MAYBE $1 OR MAYBE $10, WHATEVER. 
          WE CAN LEGALLY SELL THE LAND FROM THE DISTRICT TO THE PFC FOR. 
          THAT'S WHAT WE WOULD DO. 
          THE PFC WOULD CAN LEASE THE LAND TO A DEVELOPER, RIGHT. 
          AND A DEVELOPER WOULD THEN GO AROUND AND BUILD AN APARTMENT COMPLEX ON TOP OF THE LAND. 
          OKAY? AND THEY WOULD SOMETIMES FIND THEIR OWN FINANCING OR THEY WOULD LEVERAGE THE PFC TO
FINANCE IT. 
          AND THIS PARTICULAR CASE, THE DEVELOPER IS FINANCING THEIR OWN APARTMENT COMPLEX AND THE
DISTRICT IS RECEIVING A LEASE PAYMENT TO UTILIZE THAT LAND. 
          YOU'LL SEE SOMEWHERE BETWEEN 75 TO 100 YEAR LEASE ON LAND THAT HAS ITS BENEFITS AND PROS
AND CONS ON THAT AS WELL. BUT THE REALLY ENTICING PIECE TO A DEVELOPER IS THAT APARTMENT COMPLEX IS NOT
SUBJECT TO THE TAX ROLL, RIGHT? SO BASICALLY YOU TAKE $1.20 OFF OF THE COST, $1.20 PER $100 VALUATION OFF OF THE COST OF
THE APARTMENT COMPLEX, WHICH WOULD ALLOWS FOR SUBSIDIZED RENT PAYMENTS. 
          AND THIS KIND OF GRAPHIC OUTLINES ALL OF THAT. 
          THE DISTRICT WOULD MAINTAIN OWNERSHIP OF THE LAND THROUGHOUT THE ENTIRE PROCESS, AND THEN
THE DEVELOPER WOULD OWN THE ACTUAL BUILDING. 
          SO IN CASE OF A SALE, THERE WOULD BE SOME TYPE OF PROFIT SHARING THAT WOULD GO BACK TO
THE PFC IF IT SOLD WITHIN 75 YEARS. SO JUST A BRIEF EXAMPLE OF WHAT THAT COULD LOOK LIKE. 
          THIS WOULD BE A LEASE REVENUE TYPE OF BOND TO BUILD A APARTMENT COMPLEX ON AN EXISTING
PARCEL OF LAND THAT THE DISTRICT ALREADY OWNS. 
          NEXT SLIDE, PLEASE. 
          SO. YOU CAN'T SET THESE UP OVERNIGHT. 
          [00:20:05]
IT DOES TAKE SOME TIME. 
          THERE IS QUITE A BIT OF PUBLIC NOTICE AND THERE'S QUITE A BIT OF TRANSPARENCY THAT IS
REQUIRED TO THE PUBLIC. 
          AND SO PROCEDURALLY, YOU KNOW, YOU CAN'T SET ONE UP WITHIN A 60 DAY TIMEFRAME BECAUSE YOU
HAVE TO GIVE NOTICE TO YOUR PUBLIC, ALLOW THEM TO COMMENT ON, YOU KNOW, MAYBE THEIR CONCERNS OF A PFC BECAUSE, YOU KNOW, YOU'VE GOT TO STEP
BACK FOR A SECOND. 
          RIGHT. WE'RE CAPITALIZING A ASSET, RIGHT. 
          A BUILDING WITHOUT HAVING A BOND ELECTION. 
          SO SOMETIMES, YOU KNOW, THE COMMUNITY MAY HAVE CONCERNS OF HOW THE DISTRICT IS OPERATING. 
          RIGHT. OR WHAT IS THIS PFC? IT'S A NEW STRUCTURE. IT'S THE SAME BOARD. 
          SO YOU HAVE TO ALLOW THE COMMUNITY TO COME IN AND ASK THE APPROPRIATE QUESTIONS. 
          AND I KNOW TRANSPARENCY  IS A BIG CONCERN FOR THE BOARD. 
          AND YOU WANT TO BE AS TRANSPARENT AS POSSIBLE. 
          NEXT SLIDE, PLEASE. AND SO REALLY, THIS EXAMPLE OF AN ADMINISTRATION BUILDING, YOU KNOW,
I PULLED THIS FROM OUR PFLUGERVILLE TRANSACTION A COUPLE OF YEARS AGO. 
          IT'S GOING TO TAKE MINIMUM SIX MONTHS, IN MY OPINION, TO SET SOMETHING LIKE THIS UP FOR
PFLUGERVILLE. 
          IT TOOK ABOUT EIGHT MONTHS TOTAL. 
          BUT THIS OUTLINE GIVES YOU AN IDEA OF WHAT IT WOULD ENTAIL TO DO A PROJECT THAT YOU COULD
JUST GO OUT AND PURCHASE, RIGHT? SO IT WOULD TAKE A MINIMUM OF 120 DAYS, BUT TYPICALLY YOU'RE LOOKING AT SOMEWHERE BETWEEN
6 TO 8 MONTHS. 
          THAT'S WHY I'M GLAD WE'RE HAVING THE CONVERSATION NOW AND DISCUSSING IT AND PROVIDING
INFORMATION TO YOU ALL, BECAUSE, YOU KNOW, IT DOES TAKE QUITE A BIT OF A PROCESS. 
          AND WITH THAT, I'D BE MORE THAN HAPPY TO ANSWER ANY QUESTIONS. 
          THIS IS A WHOLE NOTHER ENTITY THAT I KNOW A LOT OF FOLKS ARE NOT FAMILIAR WITH. 
          SO PLEASE FEEL FREE TO ASK ASK ANYTHING. 
          TRUSTEE HARRISON. 
          I HAVE A LOT OF QUESTIONS. 
          SURE. OKAY. 
          WOULD WE PURCHASE A NEW PROPERTY OR BUILD? SO THAT WOULD BE UP TO THE DISTRICT. 
          SO I'LL GIVE YOU AN EXAMPLE OF THE WAY AUSTIN ISD IS DOING IT RIGHT NOW AND THE WAY
PFLUGERVILLE IS DOING IT. 
          THEY ISSUED REQUESTS FOR INFORMATION TO DEVELOPERS AND SAID, HEY, THIS IS WHAT WE HAVE,
THIS IS OUR PFC. 
          PLEASE PROVIDE ME SOME IDEAS. 
          AND RIGHT NOW WE'RE OPENING UP THOSE PROPOSALS AND WE'RE LOOKING AT DIFFERENT OPTIONS. 
          SOME HAVE PROPOSED REVAMPING OR REHABBING AN EXISTING APARTMENT COMPLEX, AND WE HAVE SOME
DEVELOPERS THAT ARE PROPOSING UTILIZING FLATLAND AND BUILDING A NEW CONSTRUCTION ON THERE. 
          SO HERE'S HOW I'D SAY THIS. 
          THE PFC, YOU COULD USE IT SEVERAL TIMES DOWN THE ROAD, RIGHT? SO THIS ISN'T GOING TO BE JUST A ONE PROJECT TYPE DEAL OR IT COULD BE, BUT YOU'D BE ABLE
TO DETERMINE BASED ON WHAT THE CURRENT NEED IS AND WHAT THE DEVELOPERS ARE PROPOSING, WHICH OPTION IS GOING TO BE BEST FOR YOU. 
          CAN I ASK A FOLLOW UP ON THAT? BECAUSE THAT WAS ONE OF MY QUESTIONS, TOO. 
          BUT MY FOLLOW UP TO THAT IS IT IF YOU BUILD IF YOU BUY A BUILDING THAT ALREADY EXISTS, IS
IT ACTUALLY A DEVELOPER THAT YOU'RE WORKING WITH OR IS IT LIKE A PROPERTY MANAGER? SO THAT'S A GREAT QUESTION AND I'VE RECEIVED THAT QUESTION QUITE A BIT. 
          SO YOU'D BE WORKING WITH BOTH ACTUALLY, BECAUSE IF THE DEVELOPER IS REHABBING THE
BUILDING AND MAYBE IT'S A TOTAL REFRESH, MAYBE THEY'RE GUTTING IT, MAKING EVERYTHING BRAND NEW, FRESH CARPET, FRESH WALLS. 
          THE DEVELOPER WILL DO THAT. 
          I HAVEN'T MET A SCHOOL DISTRICT YET THAT WANTS TO BE IN THE PROPERTY MANAGEMENT BUSINESS. 
          SO WHAT THEY'RE DOING IS CONTRACTING THAT OUT AND THAT CAN BE THE SAME DEVELOPER OR IT
COULD BE A THIRD PARTY THAT WOULD MANAGE THE PROPERTY. 
          YOU KNOW, I PROVIDED AN EXAMPLE IN HERE OF THE CITY OF SAN ANTONIO, THE CONVENTION
CENTER. 
          YOU KNOW, THEY OWN THE HOTEL AS WELL, NEXT TO THE CONVENTION CENTER. 
          THE CITY DOES. BUT THEY DON'T OPERATE THAT. 
          THEY OUTSOURCE THE MANAGEMENT OF THE HOTEL TO A THIRD PARTY. 
          OKAY, MAYBE I'LL ASK SOME OF MY QUESTIONS AND THEN I'M SURE MY COLLEAGUES HAVE A LOT OF
QUESTIONS TO WOOD. 
          SO WE KEEP SEEING TEACHERS. 
          BUT IS THIS FOR EDUCATORS OR ANYONE WHO WORKS IN THE DISTRICT? WHAT'S THE SPECIFICATION HERE? YES, MA'AM. I THINK THERE'S A SPECIAL DEFINITION OF WHAT A TEACHER IS. 
          I THINK THERE'S ONLY LIKE 2 OR 3 EXCLUSIONS. 
          DR. AZAIEZ YEAH. 
          AND I THINK THIS IS MORE LIKE A LEGAL QUESTION, I THINK THERE IS, I THINK A LIMITATION. 
          IN OTHER WORDS, IT'S A FRUSTRATING IT'S AN AFFORDABLE HOUSING FOR TEACHERS. 
          HOWEVER, AS LONG AS I THINK IT'S FAIR MEMBER A NUMBER PERCENTAGE CORRECT IS ABOUT 70%. 
          FOR TEACHERS, YOU CAN HAVE ANOTHER 30%, MAYBE BUS DRIVERS, CUSTODIANS, OTHER STAFF WITHIN
THE DISTRICT OR SOMETIMES I MEAN EVEN LIKE, YOU KNOW, YOU COULD BE AN 
          [00:25:03]
OUTSIDE TO LIKE IF, LET'S SAY, BECAUSE I KNOW WE'RE GOING TO TALK A LOT ABOUT THE
DETAILS. 
          BUT AND AGAIN, I'M NOT I DON'T WANT TO STEAL YOUR THUNDER HERE, BUT I'M NOT A FINANCIAL
ADVISOR. 
          RIGHT. BUT USUALLY TWO TO BREAK EVEN, YOU NEED TO HAVE AT LEAST A CERTAIN CAPACITY, LIKE
I'M SORRY, A CERTAIN WHAT DO YOU CALL IT? LIKE FAILURE RATE OR FAILURE RATE OR LIKE, SAY, OUT OF LET'S SAY YOU HAVE 100 APARTMENTS. 
          YOU WANT TO AT LEAST MAYBE 80 APARTMENTS TO BE OCCUPIED IN ORDER FOR THAT TO GENERATE
ENOUGH MONEY FOR THE MONTH TO PAY THAT MORTGAGE OR PAY THE LOAN BACK. SO AS LONG AS 70% IS FOR TEACHERS, I THINK LEGALLY THAT'S THE MINIMUM, IF I
REMEMBER CORRECTLY, THE REST YOU HAVE A LITTLE BIT MORE FLEXIBILITY. SO THIS SEEMS LIKE A BIG EXPLORATION. 
          AND I THINK IT'S IMPORTANT FOR PEOPLE TO UNDERSTAND, LIKE WE CAN'T DISCUSS STUFF LIKE
THIS OUTSIDE OF A MEETING. 
          SO EVEN TO BRING SOMETHING TO US, WE HAVE TO BE ABLE TO HEAR IT ALL TOGETHER TO EVEN
DISCUSS. 
          BUT MY QUESTION REALLY IS IF YOU HAVE ANY EXAMPLES LIKE OF THE ACTUAL SUBSIDIES OF COST
OF LIVING FOR TEACHERS, YOU KNOW, BECAUSE WE'RE SAYING THIS AND IS THIS A HUGE COST SAVING FOR EDUCATORS IN YOUR EXPERIENCE? SO WE DON'T HAVE ANY LIVE EXAMPLES. 
          AND THE REASON BEING THIS IS GOING TO BE NEW TO TEXAS. 
          THERE'S NOT ANY EXAMPLE OUT THERE THAT WE COULD UTILIZE. 
          THERE ARE SOME IN WEST TEXAS WHERE THEY, YOU KNOW, THE OIL AND GAS BOOM WAS AND THEY YOU
KNOW, THEY WOULD RENT OUT HOTELS OR THEY WOULD PUT UP, YOU KNOW, A LOT OF MOBILE HOMES OR MAYBE SOME TYPE OF MOBILE STRUCTURE TO PUT THEIR TEACHERS IN. 
          THAT'S NOT WHAT WE'RE TRYING TO DO HERE. 
          SO I DON'T HAVE A GOOD EXAMPLE TO PROVIDE YOU. 
          HOWEVER, I CAN TELL YOU THAT THE PFC CAN BE UTILIZED IN THE METHOD THAT I'M SHOWING YOU
TODAY WITH THE LEASE BACK TYPE METHOD. 
          OR THERE'S ANOTHER ONE CALLED  ESSENTIAL FUNCTION BONDS OR I'M SORRY, ESSENTIAL FUNCTION
PROJECTS WHERE THE DISTRICT WOULD ACTUALLY OWN THE ASSET AND THE LAND AND REALLY CONTROL THE ENTIRE FLOW OF FUNDS. 
          RIGHT? I WOULD STILL RECOMMEND OUTSOURCING THE MANAGEMENT OF THE PROPERTY WHERE THE
TEACHER OR STAFF ARE PAYING THE MANAGEMENT PROPERTY AS OPPOSED TO PAYING ROUND ROCK ISD. 
          BUT THERE ARE DIFFERENT WAYS TO STRUCTURE THIS TO WHERE YOU CAN SUBSIDIZE AS MUCH AS
POSSIBLE WITHOUT IMPACTING THE NO SIDE. 
          AND AT WHAT POINT WOULD WE HAVE THAT KIND OF INFORMATION? BECAUSE I HAVE. 
          WELL, I HAVE A COUPLE OF CONCERNS. 
          LET ME ASK THIS ONE MORE QUESTION AND THEN I HAVE A QUESTION FOR THE ADMINISTRATION. 
          SO MY CONCERN WITH THIS IS I REALLY APPRECIATE THE ADMINISTRATION BRINGING FORWARD
SOMETHING NEW, RIGHT? HEARING AND TRYING TO POSITIVELY IMPACT WHAT WE'RE HEARING. 
          BUT SOMETHING LIKE THIS, LIKE HOW WOULD WE GUARANTEE THE QUALITY OF THIS AND NOT LIKE
HAVING TEACHERS LIVE IN SUBPAR HOUSING SO THAT WE COULD SAY, HEY, WE OFFERED THIS OPTION? I ALSO KNOW THIS WON'T APPEAL TO EVERYONE, RIGHT? THIS MAY APPEAL TO KIND OF LIKE EARLY STAGE TEACHERS OR WE'VE HAD A COUPLE OF PROGRAMS
WHERE WE'VE HAD TEACHERS COME FROM OTHER COUNTRIES. 
          I DON'T THINK THAT THIS IS LIKE A BROAD SOLUTION OF PUTTING EVERY EDUCATOR IN ROUND ROCK
ISD IN A HOUSING DEVELOPMENT. 
          IT'S AN OPTION. 
          BUT HOW HAVE YOU SEEN QUALITY GUARANTEED? BECAUSE I THINK LIKE AFFORDABLE HOUSING MAYBE HAS LIKE A. 
          NEGATIVE. YEAH, I THINK AFFORDABLE HOUSING THE SAME WAY I THE WAY. 
          SO FIRST OF ALL, SETTING UP THE PFC DOESN'T OBLIGATE THE DISTRICT TO DO ANYTHING RIGHT. 
          SETTING IT UP IS GOING TO TAKE YOU 120 DAYS, BUT IT DOESN'T OBLIGATE YOU TO DO ANYTHING. 
          YOU COULD HAVE IT STAGNANT IN THE BACKGROUND AND JUST STAY THERE. 
          AND WHENEVER A PROJECT DOES COME UP, YOU HAVE THE PFC READY TO USE THE WAY YOU KIND OF
ENSURE THAT QUALITY IS BEING MET IS BY RELEASING RFQS TO YOUR DEVELOPERS, RIGHT? TO RECEIVING BIDS AND PROPOSALS AND AND SAMPLE OF THEIR PRODUCT. 
          AND THEN THE DISTRICT STAFF WOULD PRESENT TO YOU THE TOP CHOICES AND THEN THAT'S WHAT
YOU'RE GOING TO THAT'S THE ONLY WAY YOU'RE GOING TO HAVE TO THOROUGHLY VET THE DEVELOPERS AND THOROUGHLY VET THEIR PRODUCT TO ENSURE THAT THE QUALITY IS BEING
MET. 
          OKAY, SO 1.5 MORE QUESTIONS. 
          WHAT DOES THIS COST THE DISTRICT UP FRONT? UP FRONT. THERE'S GOING TO BE SOME LEGAL FEES LIKE FILING WITH THE STATE. 
          IT'S VERY MINIMAL. YOU KNOW, IT'S LIKE SETTING UP AN LLC, BUT YOU HAVE TO VET THIS
THROUGH THE STATE. 
          AND THERE REALLY IS NO COST UP FRONT. 
          [00:30:02]
I MEAN, IT'S VERY MINIMAL. 
          OKAY. UM, I THIS QUESTION IS FOR THE ADMINISTRATION. 
          THEN I WILL LET MY COLLEAGUES ASK SOME QUESTIONS. 
          BUT I WAS JUST WRITING FURIOUSLY. 
          YOU KNOW, NOW THAT WE'RE TALKING ABOUT THIS AS A FULL BOARD, WHAT IS THE PLAN TO GET ANY
FEEDBACK FROM EDUCATORS AND TO ALSO LIKE MAKE PEOPLE AWARE? BECAUSE I THINK THAT THIS IS A VERY BROAD TOPIC OF CONVERSATION. 
          THERE'S LOTS OF WHAT IFS. 
          IT DOESN'T NECESSARILY APPEAL TO EVERYONE. 
          WHAT STEPS WOULD WE TAKE TO EVEN GATHER MORE INFORMATION? AND THIS IS NOT AS A SUBSTITUTE TO ANY OTHER EFFORTS TO LIKE RETAIN TEACHERS. 
          THIS IS A YES. AND FROM MY UNDERSTANDING. 
          RIGHT. THIS IS NOT WE KNOW YOU NEED TO BE PAID MORE. 
          WE GAVE YOU AFFORDABLE HOUSING. 
          RIGHT. IT'S THAT THIS IS AN OPTION TO EXERCISE FOR SOME TEACHERS THAT THIS MAY APPEAL TO. 
          ABSOLUTELY. THAT'S A GREAT QUESTION. 
          SO OBVIOUSLY, WE'RE NOT THIS IS NOT THE ONLY ONE LIKE YOU SAID WE WANT TO DO BECAUSE THIS
WILL IMPACT A SMALL NUMBER OF OUR TEACHERS ANYWAY. 
          RIGHT. BUT THE MAIN THING IS US TO LOOK AT COMPENSATION AND OTHER MEANS THAT I KNOW HR,
EDDIE AND HIS TEAM HAVE BEEN WORKING REALLY HARD TO MAKE IT HAPPEN. AND, YOU KNOW, WITH THIS PARTICULAR PFC, IF WE DECIDE TO GO THAT ROUTE WILL ALLOW
US. 
          IT'S A COST NEUTRAL. 
          I MEAN, THE GOAL IS, AGAIN, TO COST OUR DISTRICT NOTHING REALLY TO PROVIDE THESE POSSIBLE
HOMES OR HOUSES OR APARTMENTS FOR OUR TEACHERS WHO, FOR WHATEVER REASON, EITHER THEY CANNOT AFFORD TO LIVE HERE. 
          MAYBE SOMETIMES THINGS HAPPEN AND NOW ALL OF A SUDDEN, YOU KNOW, THEY CANNOT AFFORD THEIR
HOME, WHATEVER THAT MIGHT BE. 
          SO THIS IS AGAIN, IT'S ANOTHER WAY TO RECRUIT AND RETAIN SOME TEACHERS WHO MAY BE IN NEED
OF EXTRA HELP WHEN IT COMES TO HOUSING. 
          SO AS FAR AS GETTING SOME INPUT, WE'LL BE MORE THAN HAPPY TO GET INPUT. 
          WE DIDN'T WANT TO GO THAT ROUTE YET UNTIL WE KNOW GET SOME DIRECTION FROM OUR BOARD, I
GUESS HAVE A FEEL OF, OKAY, THAT'S SOMETHING MAYBE WE CAN ENTERTAIN. 
          AND IF THAT'S SO, THEN OBVIOUSLY MAYBE WE CAN SEEK SOME INPUT FROM OUR TEACHERS AT THAT
TIME. 
          DR. AZAIEZ. 
          MAY I ADD SOMETHING TO THAT TOO? WHEN WE SOLICIT PROPOSALS FROM THE DEVELOPERS, IT COMES WITH A CASH FLOW, RIGHT? SO THEY'RE SAYING, OKAY, IT'S GOING TO COST YOU THIS. 
          THIS IS WHAT WE'RE ANTICIPATING THE YEARLY REVENUE TO BE, YOU KNOW, ALL THE EXCEL SHEETS. 
          WHAT I LIKE TO LOOK FOR IN THESE TYPE OF PROJECTS IS WHAT'S CALLED A COVERAGE RATIO. 
          AND YOU WANT TO SEE SOMETHING AROUND 1.2, FIVE TIMES. 
          SO IF IT'S COSTING ME $1 MILLION A YEAR, WE SHOULD BE BRINGING IN, YOU KNOW, 1.25 MILLION
AND THAT LITTLE OVERAGE GOES BACK INTO THE COMMUNITY OR GOES BACK INTO THE APARTMENT COMPLEX FOR UPKEEP AND MAINTENANCE. 
          THERE'S NO PROFIT BECAUSE IT'S A NON PROFIT. 
          BUT THERE SHOULD BE A COVERAGE RATIO IN THERE. 
          AND WE WOULD ONLY RECOMMEND A PROJECT IF IT MET CERTAIN CRITERIA AND WE KNEW THAT IT
WASN'T GOING TO OVERSTRETCH THE DISTRICT OR THE PFC. I JUST HAVE ONE MORE QUESTION. 
          NOW THAT YOU BROUGHT THAT UP, LIKE I JUST DEFINITELY WANT TO I'M SORRY. 
          I WANT TO BE SENSITIVE TO LIKE THE FACT THAT WE ARE LOOKING TO PROVIDE THINGS FOR REAL
PEOPLE, NOT JUST DATA AND NUMBERS. 
          AND SO. 
          I DON'T KNOW. I JUST. 
          HOW MUCH WOULD THIS TAKE FROM THE BOARD IN TERMS OF FOCUS FOR UPKEEP AND FOR OVERSIGHT AS
WELL? WOULD THIS TAKE A LOT FROM US OVERSEEING OUR EDUCATIONAL RESPONSIBILITIES? SO IT PROBABLY WOULDN'T ADD AS MUCH AS YOU WOULD THINK SO BECAUSE IT'S THE SAME BOARD
GOVERNING THE PFC. 
          THE WAY I'VE SEEN IT DONE AT PFLUGERVILLE IS IF THERE IS PFC BUSINESS TO BE DISCUSSED,
THE DISTRICT WOULD DISCUSS IT AT A REGULAR BOARD MEETING. 
          THEY WOULD OPEN UP THE REGULAR BOARD MEETING, GO TO CLOSE OR RECESS, AND THEN OPEN UP THE
PFC BOARD MEETING, DISCUSS WHAT WHAT NEEDS TO BE DONE, CLOSE THE PFC, AND THEN CONTINUE ON WITH THE REGULAR SCHOOL BOARD MEETING. 
          IT'S YOU KNOW, THERE'S NOT A WHOLE LOT OF OF PFC DECISION MAKING AFTER IT'S ALREADY BEEN
SET UP. 
          SO I WOULD ANTICIPATE MAYBE 2 OR 3 OFFICIAL PFC MEETINGS PER YEAR. 
          THANK YOU. SURE THING. 
          TRUSTEE WEIR. OKAY, I'M GOING TO GO KIND OF IN BACKWARD ORDER BECAUSE TRUSTEE HARRISON
WAS ASKING ABOUT TEACHERS, AND SO AND I DON'T KNOW IF THIS IS THE ADMINISTRATION, BUT OBVIOUSLY IT WOULD BE TIED TO THEIR EMPLOYMENT AND SO
WHAT IN THE OTHER DISTRICTS THAT ARE KIND OF THINKING ABOUT THIS, HOW ARE THEY STRUCTURING IT WHERE IF YOU LOSE EMPLOYMENT AND YOU ALSO HAVE HOUSING,
WHAT HAPPENS TO THAT TEACHER AT THAT TIME? AND THEN THE OTHER SIDE IS THAT WHAT IF WE HAVE SO MANY TEACHERS? 
          [00:35:05]
I MEAN, AUSTIN WAS IN THE PAPER A LITTLE BIT ABOUT THAT, WHERE THEY HAVE JUST A LIMITED
NUMBER AND A LOT OF TEACHERS THAT WANT IT. 
          RIGHT. SO JUST SORT OF THINKING BOTH OF THOSE DIFFERENT TRAINS OF THOUGHT ABOUT TEACHERS. 
          RIGHT. SO THE WAY YOU USUALLY DONE IS IT'S KIND OF LIKE A LEASE AGREEMENT. 
          IF YOU'RE RENTING A HOME OR AN APARTMENT, YOU WOULD HAVE ALL THOSE REQUIREMENTS IF, LET'S
SAY IF THIS IS YOU'RE HERE, FOR EXAMPLE, YOU'RE LEASING AS LONG AS YOU'RE WORKING FOR ROUND ROCK ISD. 
          BUT IF YOU DECIDE TO LEAVE OR WHATEVER, I DON'T KNOW. 
          I MEAN, WE CAN THOSE AGAIN, THAT'S LEGALITY, RIGHT? THERE MAY BE A MONTH YOU HAVE TO LEAVE YOUR APARTMENT WITHIN A MONTH OR SO FOR ANOTHER
TEACHER WHO MAY BE REPLACING YOU OR WHATEVER THAT MIGHT BE. 
          RIGHT. SO THOSE KIND OF THINGS WILL BE PUT OBVIOUSLY, IF WE DECIDE THAT WE DIDN'T GET ALL
THE WAY TO THE DETAILS, BUT WE'LL BE OBVIOUSLY PART OF THAT. 
          THE POSSIBILITIES THAT WE WILL HAVE FOR OUR FOR THE TEACHER OR FOR WHOEVER THE STAFF
MEMBER WILL BE LIVING IN THAT APARTMENT. 
          THAT'S LIKE CRITERIA FOR  WHO CAN, YOU KNOW, GET PRIORITY. 
          THAT WOULD ALL BE SET UP AHEAD OF TIME. 
          AND ABSOLUTELY I MEAN, WE'LL BE AGAIN, ALL THOSE DETAILS WILL BE EVENTUALLY DRAFTED AND
THINGS LIKE THAT. 
          YES, RIGHT. MS. WEIR, I THINK, YOU KNOW, IT WAS MENTIONED OR IT WAS ASKED EARLIER HOW WE
WOULD, YOU KNOW, POLL THE COMMUNITY OR POLL THE TEACHERS. 
          AND YOU'RE RIGHT ABOUT AUSTIN ISD, THEY POLLED AND THERE WAS SO MUCH DEMAND FOR IT. 
          AND THAT'S REALLY WHAT SPARKED THIS WHOLE CONVERSATION WITH FCS WITH THAT DISTRICT. 
          BUT TO WHAT I MENTIONED EARLIER, IT'S HIGHLY RECOMMENDED THAT THE SCHOOL DISTRICT OR THE
PFC UTILIZE A THIRD PARTY MANAGEMENT COMPANY SO THAT WHEN THE TEACHER SIGNS THEIR LEASE, IT IS WITH THAT THIRD PARTY MANAGEMENT COMPANY. 
          AND IN THERE THERE WILL BE GUIDELINES AND STIPULATIONS. 
          YOU KNOW, THEY CAN ONLY HAVE TWO DOGS INSTEAD OF THREE OR YOU KNOW,  IF THEY GET
TERMINATED FOR WHATEVER REASON, MAYBE THEY'RE ALLOWED TO STAY WITHIN THE APARTMENT AS LONG AS THEY CAN MAKE PAYMENTS FOR CERTAIN AMOUNT OF TIME. 
          BUT THAT'S ALL KIND OF A LEGAL CONTRACT THAT THE LEGAL TEAM WOULD DRAFT UP. 
          OKAY. AND THEN KIND OF TOTALLY SWITCHING SUBJECTS. 
          CAN YOU GO BACK A LITTLE BIT TO THE LEASEBACK METHOD VERSUS THE ESSENTIAL FUNCTION
PROJECTS? BECAUSE IT SEEMED LIKE THE ESSENTIAL FUNCTIONS PROJECT. 
          IS DIFFERENT, RIGHT? THAT'S WHEN YOU MAYBE JUST NEED A PROPERTY MANAGER AND NO DEVELOPER. 
          BUT I GUESS HOW WOULD WE WOULD BE LOOKING FOR APARTMENT COMPLEXES THAT WERE ALREADY
FINISHED READY TO BUY. 
          RIGHT. RIGHT. SORT OF. 
          WHAT IS THE DIFFERENCE BETWEEN THOSE? RIGHT. THERE ARE SO MANY WAYS WE CAN SKIN THIS CAT. 
          YOU KNOW, TO BE HONEST WITH YOU, I WANTED TO PROVIDE YOU JUST SOME EXAMPLES. 
          IT'S MY OPINION. 
          UTILIZING A CENTRAL FUNCTION PROJECTS IS THE BEST WAY TO GO BECAUSE THE DISTRICT WOULD
MAINTAIN OWNERSHIP OF THE APARTMENT COMPLEX. 
          RIGHT? THE DEVELOPER, THEY WANT YOU TO DO LEASE, THEY WANT YOU TO JUST LEASE THEM THE
LAND, LET THEM BUILD THE APARTMENT AND THEY'RE GOING TO OWN THAT FOR 75 TO 100 YEARS. 
          THAT'S GOING TO BE HOW THEY MAKE THE MOST AMOUNT OF MONEY. 
          THE REASON WHY I LIKE THE CENTRAL FUNCTION PROJECTS IS BECAUSE, I MEAN, WE'VE SEEN IT. 
          HOW MUCH ARE PROPERTY VALUES APPRECIATING PER YEAR? RIGHT? SO YOU GET THAT IF YOU IF THE DISTRICT OWNS IT FOR 30 YEARS BECAUSE THEY ISSUE 30
YEAR DEBT ON IT, AFTER THAT 30 YEARS, YOU COULD SELL IT, YOU COULD REFINANCE THE BONDS ISSUE MORE DEBT, YOU KNOW, ON TOP OF IT AND REDEVELOP THE
APARTMENTS, YOU KNOW, REHAB IT. 
          YOU KNOW, YOU OWN THE ASSET AND YOU OWN THE APPRECIATION. 
          AND THEN THAT MONEY COULD BE USED FOR OTHER PFC PROJECTS. 
          OR IF EVERYTHING'S DISSOLVED, GO BACK TO THE SCHOOL DISTRICT RIGHT? SO THE DIFFERENCE IS BETWEEN A LEASE REVENUE THAT WHAT I DESCRIBED IS THAT YOU DON'T OWN
THE APARTMENT COMPLEX WITH THE ESSENTIAL FUNCTION PROJECT. YOU OWN EVERYTHING AND DEVELOPER. 
          THE DEVELOPER MAKES A FEE TO BUILD THE APARTMENT FOR YOU. 
          SO THAT'S SIMILAR TO OUR NORMAL BOND PROCESS WHERE THEY WOULD JUST BE HIRED BY US TO
BUILD THE BUILDING. 
          BUT THEN WE DO EVERYTHING IN ESSENTIAL FUNCTION PROJECTS. 
          YES. OKAY. 
          ALL RIGHT. UM. 
          MY LIGHTS ARE NOT WORKING. 
          DO OTHER. AH, I SAW TRUSTEE MARKHAM RAISE HER HAND FIRST, AND THEN WE'LL GO WITH TRUSTEE
WESTON? YEAH, I'LL BE SHORT. 
          SO YOU HAD SAID THAT IN TEXAS? WE HAVEN'T. WE HAVEN'T SEEN ANYTHING OF THIS NATURE YET. 
          THAT IT'S FAIRLY NEW FOR TEXAS. 
          DO YOU HAVE I MEAN, BECAUSE WE ARE TALKING ABOUT PEOPLE'S LIVES HERE AND NOT THAT I DON'T
WANT TO BE A TRAILBLAZER DISTRICT, BUT IT WOULD BE NICE TO HAVE SOME SORT OF REFERENCE, EVEN IF IT'S FROM ANOTHER STATE WHERE THIS HAS BEEN SUCCESSFULLY
IMPLEMENTED. 
          AND I WOULD SPECIFICALLY LIKE TO SEE WHICH WHAT TYPE OF EDUCATOR IT'S MOST APPEALED TO. 
          SO IF WE HAVE ACCESS TO THAT INFORMATION, IF WE YOU KNOW, WHEN WE DISCUSS THIS AGAIN, IF
WE DECIDE TO MOVE FORWARD WITH DISCUSSING IT, THAT WOULD BE GREAT. 
          [00:40:09]
ABSOLUTELY. WE COULD LOOK AT SOME EXAMPLES OUT IN CALIFORNIA. 
          THIS IS BASICALLY THE MODEL THAT WE'RE UTILIZING. 
          I THINK THE THE THERE WILL BE A LOCAL EXAMPLE HERE FAIRLY SOON. 
          RIGHT. WITH PFLUGERVILLE AND AUSTIN. 
          THEY'RE LIKE COMPETING ON WHO'S GOING TO BE THE FIRST ONE BECAUSE THEY'RE TRYING TO BE
THE TRAILBLAZER. 
          UM, BUT I WILL GATHER SOME MORE INFORMATION ON THE CALIFORNIA PROJECTS AND SEE HOW THOSE
TRANSPIRED AND THEN KEEP YOU ABREAST WITH WHAT'S HAPPENING ACROSS THE STREET. 
          THANKS. AND THEN I JUST WANTED TO SAY THAT I THINK, YOU KNOW, AS WE MOVE FORWARD, IF WE
DECIDE TO MOVE FORWARD IN DISCUSSION WITH THIS, AGAIN, BECAUSE WE ARE TALKING ABOUT PEOPLE'S LIVES AND THIS IS TIED TO EMPLOYMENT, I WOULD WANT TO MAKE SURE THAT WE'RE VERY
FOCUSED ON WHO WE'RE TARGETING WITH THIS. 
          AND IT WOULD BE MY OPINION TO TRY TO STAY IN THAT LANE. 
          I'M JUST THINKING ABOUT TIED TO EMPLOYMENT. 
          YOU KNOW, IF WE HAVE A YOUNG EDUCATOR, THIS IS THEIR FIRST JOB, FIRST YEAR ON THE JOB. 
          I MEAN, I CAN SEE HOW THIS MIGHT BE APPEALING TO SOMEONE LIKE THAT. 
          AND THEN TO SAY IF THEY LEAVE THEIR JOB, THEY HAVE A MONTH TO MOVE OUT. 
          BUT IF WE HAVE A SINGLE PARENT MOVING IN WITH TWO KIDS AND THEN WE SAY YOU HAVE A MONTH TO
MOVE OUT, I MEAN, THAT'S A LITTLE BIT HARDER SITUATION TO DEAL WITH. 
          AND NOT SAYING THAT WE SHOULDN'T ALLOW THAT. 
          BUT I DO FEEL LIKE IF WE MOVE FORWARD IN DISCUSSION, LIKE WITH THIS, THAT WE SHOULD BE
REALLY TARGETED AND MAYBE SOME OF THOSE STUDIES THAT WE SEE, YOU KNOW, WE MAY SEE A TREND WITH THAT AND HOW THAT'S BEEN IMPLEMENTED IN OTHER STATES. 
          THAT'S IT. THANKS. 
          TRUSTEE WESTON. SO I'M LISTENING. 
          AND THERE ARE SOME THINGS THAT GIVE ME PAUSE. 
          FIRST, JUST FOR CLARITY. 
          YOU ARE THE SCHOOL DISTRICT'S FINANCIAL ADVISOR AND YOU ARE DOING THIS BRIEFING? YES, MA'AM. RIGHT. 
          DOES THAT MEAN THAT YOU MAKE MONEY ON THIS? IF SOME TIME DOWN THE ROAD WE DO ISSUE BONDS TO DEVELOP A PROJECT, THERE WOULD BE A
FINANCIAL ADVISORY FEE ASSOCIATED WITH THAT. 
          IS THAT A PERCENTAGE OF PROPERTY OR. 
          IT'S TYPICALLY ON A PER BOND BASIS. 
          SO, YOU KNOW, GIVE YOU AN EXAMPLE, $100 MILLION BOND TRANSACTION. 
          I THINK OUR FEE IS PROBABLY A $1.25 PER BOND. 
          DON'T QUOTE ME ON THAT. I DON'T HAVE THE FEE SCHEDULE IN FRONT OF ME, BUT $1.25. 
          SO THAT'S $125,000 FEE ON A $100 MILLION PROJECT. 
          OKAY. SO YOU WOULD FINANCIALLY OR YOUR FIRM WOULD FINANCIALLY BENEFIT IF WE WENT DOWN
THIS ROAD? YES, THERE WOULD BE A FEE. 
          YES. THANK YOU. 
          YOU KNOW, I'VE BEEN ON THE BOARD FOR TWO YEARS. 
          I'VE GOTTEN A LOT OF EMAILS. 
          WE'VE HAD A LOT OF PEOPLE COME TO PUBLIC COMMENTS AND TALK. 
          A LOT OF PEOPLE STOP ME IN MY DAILY LIFE WHEN I'M OUT AND ABOUT IN THE COMMUNITY. 
          I'M NOT SURE THAT SOMEBODY. 
          HAS EVER COME. 
          AND I'M NOT SAYING THAT IT HASN'T, BUT IT'S JUST NOT I WASN'T NECESSARILY PREPARED TO
THINK ABOUT THAT. 
          BUT THIS JUST OF ALL THE THINGS THAT COME TO US, I'M NOT SURE THAT THIS IS AT THE TOP,
BUT I DO REMEMBER DURING THE ELECTION BEING AT ONE OF THE POLLING LOCATIONS AND THERE WERE SOME FOLKS THERE ADVOCATING FOR THEIR SCHOOL BOARD
CANDIDATES, NOT THE ONES THAT I WAS ADVOCATING FOR. 
          AND THIS IDEA CAME UP AND I ASKED THEM, I THOUGHT, WELL, I'M GONNA DO MY OWN LITTLE FOCUS
GROUP HERE. 
          HEY, GUYS, YOU GUYS LIKE THAT IDEA? AND ALL THREE OF THEM WERE LIKE, ABSOLUTELY NOT. 
          ONE WAS AN AP, ONE WAS A TEACHER AND ONE WAS A FORMER TEACHER. 
          SO THAT'S MY ONLY ANECDOTAL EXPERIENCE. 
          BUT IF THERE'S SOMETHING COUNTER TO THAT AND TIFFANIE, YOU KIND OF MENTIONED LIKE, LET'S
PULL THIS LIKE, IS THERE A DEMAND FOR THIS? BECAUSE I HAVEN'T SEEN IT. 
          THAT DOESN'T MEAN IT'S NOT THERE, BUT I HAVEN'T SEEN IT. 
          SO THAT'S ONE THING THAT GIVES ME PAUSE ALSO, LIKE ALICIA SAID. 
          YOU KNOW, YOU'RE NOT ABLE TO POINT US TO A SUCCESS STORY AT THIS POINT. 
          SO I'M A LITTLE RELUCTANT GIVEN ALL OF THE. 
          AND AGAIN, BACK TO WHAT TIFFANY SAID. 
          YOU KNOW, WE'RE HERE TO EDUCATE STUDENTS AND I WOULD BE CONCERNED ABOUT SPENDING MORE
TIME ON, YOU KNOW, LAND DEVELOPERS AND ALL THIS OTHER STUFF. 
          I'M CONCERNED ABOUT THAT. 
          AND THE OTHER THING I WOULD JUST ASK MY COLLEAGUES TO CONSIDER. 
          HAS ANYBODY UP HERE. 
          EVER LIVED IN GOVERNMENT HOUSING. 
          I HAVE. JUNE HAS, AMBER HAS. 
          SO I'VE LIVED IN GOVERNMENT HOUSING. 
          AND THERE ARE. 
          THERE'S A LOT THAT COMES WITH THAT. 
          AND I WILL TELL YOU, TIFFANIE, IT'S NOT ALL GOOD. 
          THERE'S A LOT OF IT THAT'S AND NOT BECAUSE ANYBODY'S MALICIOUS. 
          BUT WHEN YOU DON'T OWN THE PROPERTY AND THE GOVERNMENT IS OWNING IT AND THERE'S
BUREAUCRACY AND RED TAPE AND LAYERS BETWEEN AND THEN PROPERTIES, AGE PEOPLE MOVING IN, PEOPLE MOVING OUT. 
          [00:45:02]
THERE ARE REAL THINGS THAT CAN BE PROBLEMATIC OVER TIME. 
          THAT I THINK WE WOULD REALLY NEED TO GIVE SOME THOUGHT TO. 
          AND I'LL JUST LEAVE IT AT THAT FOR TONIGHT BECAUSE LIKE DR. 
          AZAIEZ SAID, WE'RE JUST EXPLORING THIS. 
          WE'RE NOT VOTING ON ANYTHING TONIGHT. 
          BUT I THINK THERE ARE SOME SIGNIFICANT THINGS TO CONSIDER WHEN WE'RE TALKING ABOUT
BASICALLY ESTABLISHING GOVERNMENT HOUSING OWNED AND OVERSEEN BY THE BOARD OF TRUSTEES. THANK YOU. 
          TRUSTEE BONE. SURE. 
          I WOULD ACTUALLY LIKE TO ADD ON TO THAT TRUSTEE WESTON BECAUSE I THINK THERE'S A REASON
THAT GOVERNMENT HOUSING LOOKS THE WAY IT DOES BECAUSE YOU HAVE A COMMUNITY, RIGHT? AND TAXPAYERS THAT KNOW THAT THEY'RE PAYING FOR THAT ARE FOR ANY UPKEEP. 
          SO I DO THINK WE REALLY THIS IS SOMETHING THAT WE HAVE TO DEEPLY THINK ABOUT. 
          PROBABLY NEED SOME GOVERNMENT HOUSING EXPERTS TO KIND OF WEIGH IN. 
          YOU KNOW, SOME OF THE DISTRICTS THAT ARE LISTED ARE NOT DISTRICTS THAT I PERSONALLY
ADMIRE OR WANT TO BE LIKE. 
          SO, YOU KNOW, IT'S NOT I'M ALSO I WOULD LOVE TO BE A TRAILBLAZER, BUT I'M KIND OF LIKE,
LET'S BE A TRAILBLAZER WITH OTHER PEOPLE THAT HAVE SHOWN IN THE PAST THAT THEY HAVE GOOD JUDGMENT AND, YOU KNOW, THEIR SCHOOL DISTRICTS HAVE STAYED ON THE RIGHT TRACK AND AREN'T
BEING TAKEN OVER BY THE STATE, FOR EXAMPLE. 
          SO I AGREE. 
          AND SO I'M ASKING IN THE FUTURE, I WOULD LIKE TO SEE, YOU KNOW, SOME GOVERNMENT HOUSING
EXPERTS COME AND TALK TO US ABOUT KIND OF UPKEEP OF GOVERNMENT HOUSING AND WHY GOVERNMENT HOUSING SOMETIMES LOOKS THE WAY IT DOES. 
          BUT THE ISSUES WITH GOVERNMENT HOUSING AND THINGS THAT YOU RUN INTO BECAUSE I'VE WORKED
FOR THE GOVERNMENT TOO. 
          AND ON THE GOVERNMENT SIDE, I DO KNOW THERE'S LOTS OF POLICIES AND PROCESSES WE MIGHT
WANT TO GO IN AND PUT IN VERY NICE THINGS, BUT THERE MIGHT BE GOVERNMENT REGULATIONS ON WHY WE CAN'T DO THAT IN THOSE BUILDINGS. 
          SO I WOULD LIKE TO UNDERSTAND THAT. 
          AND IT GOES BACK TO KIND OF WHAT TRUSTEE HARRISON WAS SAYING IS THAT, YOU KNOW, WE WANT
TO TREAT OUR TEACHERS WELL. 
          SO THAT'S A STATEMENT. BUT I DO HAVE QUESTIONS. 
          YOU'VE ALREADY GONE OVER THAT YOU ALL WOULD MAKE MONEY. 
          BUT I KIND OF WOULD LIKE YOU TO GO DOWN THE LIST OF PEOPLE OR ORGANIZATIONS THAT MAKE
MONEY OFF OF THIS TYPE OF PROJECT, SUCH AS LIKE MANAGEMENT COMPANIES. BECAUSE YOU WERE TALKING ABOUT COST NEUTRAL. 
          I JUST WANT TO, YOU KNOW, COST NEUTRAL TO US, BUT. 
          YOU KNOW, THERE ARE PEOPLE IN HERE THAT ARE MAKING MONEY. 
          SO CAN YOU KIND OF GO THROUGH THE LIST OF PEOPLE THAT. 
          SURE THING. SO WE CAN START ON THE DEVELOPER SIDE. 
          THE DEVELOPER WOULD MAKE MONEY. 
          YOUR REAL ESTATE AGENTS WOULD MAKE MONEY. 
          IT'S LIKE A TYPICAL. BUYING A HOUSE. 
          SELLING A HOUSE, A 3%, YOU KNOW, ON THE BUYER SIDE AND SELLER SIDE. 
          SO THERE'S A REAL ESTATE COMMISSION THERE. 
          YOU ALSO HAVE, YOU KNOW, YOUR TITLE COMPANY FEES. 
          YOU HAVE SOME CLOSING FEES BECAUSE YOU'RE BASICALLY CLOSING ON A PROPERTY. 
          IF DEBT IS ISSUED ON BEHALF OF THIS PROJECT. 
          THEN YOU HAVE YOU HAVE YOUR FINANCIAL ADVISOR WHO'S MAKING A, YOU KNOW, A PER BOND FEE. 
          YOU HAVE UNDERWRITERS, WHICH THESE GUYS ARE THE ONES THAT, YOU KNOW, YOUR J.P. 
          MORGAN'S YOUR MORGAN STANLEY'S THAT GO OUT AND FIND INVESTORS TO PURCHASE THE BOND DEBT. 
          THEY'RE MAKING ABOUT $5 A BOND. 
          SO JUST SO YOU KNOW, EVERY BOND IS $1,000. 
          RIGHT. SO $5 TIMES FOR EVERY $1,000 OF BONDS YOU HAVE YOUR LAWYERS ON HERE. 
          SO FEES AND BONDS IN GENERAL ARE VERY LAWYER HEAVY. 
          SO YOU HAVE WHAT'S CALLED A BOND COUNSEL THAT WOULD MAKE A PER BOND FEE OF ABOUT $1,
$1.50 SOMEWHERE AROUND THERE. 
          YOU HAVE A DISCLOSURE COUNSEL, RIGHT. 
          WHICH ENSURES THAT ALL THE FILINGS ARE BEING MET APPROPRIATELY WITH THE SEC AND THE MSRB. 
          AND THERE'S ALSO AN UNDERWRITERS COUNSEL THAT REPRESENTS THE INVESTORS AND THE
UNDERWRITER AND PROTECTS THEM IN CASE OF ANY WRONGDOING TO THE INVESTORS. RIGHT. 
          AND THEN ON TOP OF THAT, YOU MAY HAVE SOME MINOR FEES THAT MAYBE TOTAL UP ABOUT 1% OF
EVERYTHING. 
          THAT INCLUDES, YOU KNOW, YOU'RE PAYING AGENT AND YOUR ESCROW AGENT, YOUR PROPERTY
MANAGEMENT COMPANY WILL PROBABLY CHARGE YOU SOMEWHERE BETWEEN 1 TO 2% OF THE PROJECT PER YEAR. SO, YOU KNOW, THERE ARE SEVERAL COSTS ASSOCIATED WITH THAT. 
          AND IF A PROJECT DOES COME UP, WE'RE MORE THAN HAPPY TO SHARE ALL OF THE COSTS ASSOCIATED
WITH THAT AND WHERE ALL THE ALL THE MONEY IS GOING TO SO THAT YOU HAVE A CLEAR UNDERSTANDING OF HOW THE MONEY IS BROKEN DOWN. 
          AND I THINK, YOU KNOW, YOUR QUESTIONS AND CONCERNS ARE HEARD AND SPOT ON. 
          I THINK YOU'RE ASKING GREAT QUESTIONS. 
          EVERYONE ON THE BOARD IS SO. 
          AND CAN YOU CLARIFY THE FOR TAX SAVINGS ON A PROJECT LIKE THIS? SINCE WE'RE THE SCHOOL DISTRICT, WE CAN ONLY GET RID OF OUR SCHOOL DISTRICT TAXES ON
THIS, RIGHT? WE CAN ONLY WE CAN'T. 
          SO YOU ACTUALLY BECAUSE IT'S A NON PROFIT THAT OWNS THE PROPERTY OR THE LAND, THEY DON'T
PAY ANY TAXES. 
          OKAY. SO IT'S WE DON'T PAY ANY TAXES. 
          YOU DON'T PAY ANY TAXES. YOU DON'T PAY CITY COUNTY. 
          YOU DON'T PAY THOSE TAXES. 
          SO DO WE STILL HAVE TO GET PERMITS FROM THE CITY TO BUILD THIS? 
          [00:50:02]
SO IS THERE A. 
          YES. SO LET'S SAY YOU'RE BUILDING IN THE CITY OF ROUND ROCK. 
          YOU WOULD HAVE TO GO THROUGH THE PERMITTING PROCESS AND DEVELOPER WOULD WOULD HANDLE MOST
OF THIS, GO THROUGH THAT WHOLE PROCESS FOR THE PFC. 
          OKAY. I APPRECIATE THAT. 
          AND THEN I AM WONDERING AND THIS MAY BE DR. 
          AZAIEZ, BUT I WOULD KIND OF LIKE TO SEE KIND OF A RISK ANALYSIS BECAUSE I THINK
EVERYBODY'S PROBABLY NOTICED THAT PROPERTY VALUES ACTUALLY ARE NOT GOING UP FOR WE HAVE SEEN THAT FOR A LONG TIME AND PROBABLY LOTS OF US ARE MAYBE
HAPPY THAT THEY'RE GOING DOWN FINALLY. 
          BUT I'M OLD ENOUGH TO ACTUALLY HAVE SEEN A COUPLE OF ACTUALLY PROPERTY CRASHES. 
          SO I'M KIND OF CURIOUS BECAUSE WHEN PEOPLE PROPOSE REAL ESTATE, THEY ALWAYS SHOW THE HIGH
SIDE. 
          I'VE MET A LOT OF PEOPLE THAT HAVE LOST A LOT OF MONEY IN REAL ESTATE, SO I WOULD LIKE TO
SEE KIND OF A RISK, ESPECIALLY BECAUSE DURING COVID, SOMEBODY BROUGHT UP ABOUT EVICTIONS. 
          AND IF EVERYBODY RECALLS DURING COVID, THE GOVERNMENT ACTUALLY SAID YOU CAN'T HAVE
EVICTIONS LIKE THESE PEOPLE ARE GETTING TO STAY IN YOUR HOUSE AND EVEN IF THEY'RE NOT PAYING. SO I WOULD LIKE TO KIND OF SEE A RISK ASSESSMENT JUST BECAUSE THIS IS CHILDREN'S
MONEY. 
          IF AND I'M ASSUMING AND I GUESS MAYBE YOU CAN TALK TO THIS. 
          IF WE DON'T MAKE ENOUGH MONEY, RIGHT. 
          TO COVER THE COST, WHO PAYS FOR IT? WHERE DOES THAT MONEY COME FROM? DOES IT COME OUT OF OUR BUDGET? WHERE DOES THAT MONEY COME FROM? THAT'S A GREAT QUESTION. 
          SO. FIRST AND FOREMOST, WE HAVE TO VET THE PROJECT, RIGHT? THE DEVELOPER WILL HAVE THEIR OWN CASH FLOWS. 
          YOU HAVE CONSULTANTS LIKE MYSELF THAT LOOK AT THESE CASH FLOWS AND DETERMINE WHETHER OR
NOT THE COVERAGE RATIO IS APPROPRIATE AND MAYBE IT NEEDS TO BE HIGHER. 
          WE WILL HAVE RATINGS ON THESE BONDS OR ON THE PROJECTS. 
          SO YOU'LL HAVE RATING ANALYSTS THAT GO THROUGH AND DETERMINE HOW VIABLE EACH PROJECT IS
AND THE ASSOCIATED CREDIT SCORE FOR EACH PROJECT. 
          SO THERE WILL BE SOME RISK MITIGATING FACTORS IN THERE KIND OF DETERMINING WHAT ARE THE
CHANCES OF THIS GOING SOUTH ON US? RIGHT. AND THAT'S WHY I THINK IT'S IMPORTANT THAT WE HAVE STRONG COVERAGE RATIOS TO MAKE
UP ANY TYPE OF GAP THAT WE MAY SEE. 
          AND SO TO ANSWER YOUR QUESTION ABOUT WHO PAYS FOR IT IF WE DON'T HAVE NO RENTERS, THAT
WOULD BE THE SCHOOL DISTRICT FROM THE BUDGET. 
          SO THERE IS A LEVERAGE OF THE NO SIDE FOR THIS TYPE OF BOND. 
          SO THAT'S AND THAT'S SOMETHING THAT'S KIND OF A BIG RISK, RIGHT? I MEAN, I GUESS AND SO TYPICALLY WHAT YOU'LL SEE FROM A DEVELOPER IS, YOU KNOW, IF 80% OF
THE UNITS ARE RENTED OUT OR 70% OF THE UNITS ARE RENTED OUT, WE WOULD HAVE THIS COVERAGE RATIO, RIGHT? SO THERE'S ALWAYS GOING TO BE SOME TYPE OF, YOU KNOW, HOLE IN THERE WHERE WE WANT TO MAKE
VERY CONSERVATIVE ESTIMATES. 
          AND THAT'S WHY IT'S VERY IMPORTANT TO HAVE A VERY HIGH COVERAGE RATIO. 
          YEAH, I GUESS MY CONCERN IS THAT ESPECIALLY REAL ESTATE RIGHT NOW BECAUSE IT IS. 
          I MEAN, DEPENDING ON WHERE YOU'RE AT IN REAL ESTATE, IT'S GOING DOWN. 
          IT'S MAYBE NOT THE TIME TO ACTUALLY BUILD, RIGHT? BECAUSE HECK, IF YOU WAIT FIVE MONTHS, YOU MIGHT BE ABLE TO BUILD. 
          AND WE DON'T KNOW HOW LONG THIS IS GOING TO LAST. 
          AND IT COULD GO BACK UP, TOO. 
          AND SO TODAY IS THE DAY TO BUILD, RIGHT? THIS IS THE WHOLE RISK PORTFOLIO THAT YOU DO ALL DAY. 
          BUT I WAS KIND OF WONDERING, AND IT DIDN'T SOUND LIKE THERE'S ANY KIND OF SAFETY NET TO,
YOU KNOW, IF THERE IS A HOUSING CRASH. 
          SO IT SOUNDS LIKE IT'S LITERALLY THE DISTRICT AND THE KNOW WELL. 
          SO YES. 
          SO A COUPLE OF THINGS TO WE WOULD STRUCTURE THE DEBT. 
          SO LET'S JUST SAY IT COSTS $50 MILLION. 
          WE WOULD STRUCTURE IT SO THAT MAYBE THE FIRST FEW YEARS ARE JUST INTEREST ONLY IN ORDER
TO MINIMIZE THE PAYMENTS OF THE BONDS WHILE DURING CONSTRUCTION. 
          RIGHT. THERE'S TYPICALLY WHAT'S CALLED A SINKING FUND THAT EVERY YEAR OR  EVERY SIX
MONTHS, SOME OF THE MONEY IS GOING INTO THIS FUND TO OFFSET ANY TYPE OF DOWNSIDE THAT MAY COME UP. 
          AND THAT SINKING FUND THEN COULD BE UTILIZED IF, YOU KNOW, IF THERE IS ANOTHER HOUSING
CRISIS OR ANOTHER COVID EVENT TO HELP SUBSIDIZE THE COST OF THAT DEBT, BECAUSE AT THE END OF THE DAY, LIKE, WE MAY BE BORROWING $50 MILLION. 
          RIGHT. BUT WE HAVE TO ENSURE THAT WE HAVE ENOUGH YEARLY REVENUE TO COVER THE YEARLY
PAYMENTS. 
          SO WE'RE HOPING THAT BY IMPLEMENTING A SINKING FUND, BY HAVING, YOU KNOW, LOWER INTEREST
OR INTEREST ONLY PAYMENTS IN THE FIRST CONSTRUCTION YEARS. 
          IT. THE PROJECT SHOULD BE ABLE TO FINANCE ITSELF AND HAVE A LITTLE BIT OF WIGGLE ROOM IN
CASE WE DON'T SELL OR DON'T RENT OUT ALL THE UNITS. 
          SO I THINK THAT'S KIND OF MY ONE OF MY LAST QUESTIONS TIES INTO THIS. 
          WHEN YOU'RE TALKING ABOUT SINKING FUNDS, YOU KNOW, WE HAVE INS AND WE HAVE YOU KNOW,
WE'VE MOSTLY INS IS ALMOST ALWAYS WHAT WE CONSIDER BONDS FROM A BOND 
          [00:55:03]
ELECTION. RIGHT. 
          THIS ALLOWS US CAN YOU KIND OF GO INTO THAT? SO THIS IS A MECHANISM THAT ALLOWS US TO SELL BONDS. 
          THAT AREN'T FROM A BOND ELECTION. 
          AND CAN YOU CAN YOU TALK ABOUT THAT A LITTLE BIT? BECAUSE I THINK THAT'S A NEW CONCEPT TO AT LEAST ME. 
          IT IS VERY NEW AND AND IT'S NEW TO SCHOOL DISTRICTS. 
          EVEN THE LIST THAT I PROVIDED THERE THAT I MEAN, THERE'S 1200 SCHOOL DISTRICTS IN THE
STATE OF TEXAS AND THAT'S REALLY ALL THAT'S USING IT. 
          RIGHT. SO IT IS FAIRLY NEW. 
          NOW, YOU'RE CORRECT. 
          THE SCHOOL DISTRICTS HAVE MANNOSIDE, WHICH IS FOR MAINTENANCE AND OPERATIONS, PAYING
TEACHERS, STAFF UPKEEP OF EXISTING FACILITIES. 
          THE INS SIDE OF YOUR DEBT IS USED FOR BOND ELECTION NEW CAPITAL PROJECTS AND THAT'S
LEVIED TO BUILD NEW SCHOOLS, ADMIN BUILDINGS OR FOOTBALL STADIUMS, ETCETERA. 
          THE PFC DOES NOT REQUIRE A ELECTION PER SE TO GO OUT TO THE VOTERS. 
          IT DOES REQUIRE SOME TYPE OF PUBLIC NOTICE. 
          A COUPLE OF ADVERTISEMENTS IN THE NEWSPAPER AND THE WEBSITE. 
          BUT THERE IS NO ELECTION THAT WOULD REQUIRE PEOPLE TO GO TO THE POLLS AND VOTE ON THIS. 
          HOWEVER, IT DOES HAVE BONDING AUTHORITY. 
          AND SO THE WAY IT WORKS IS. 
          BECAUSE THIS IS A NONPROFIT. 
          IT'S BASICALLY A ANOTHER MUNICIPALITY THAT THE DISTRICT IS SETTING UP. 
          THEY'RE GRANTED THE BONDING AUTHORITY AS LONG AS THE PROJECTS OR AS LONG AS THEY CAN
PROVE THAT THERE IS A REVENUE STREAM TO BACK IT. 
          RIGHT. AND RATING AGENCIES WON'T PROVIDE YOU A RATING OR THEY MAY GIVE YOU A
NON-INVESTMENT GRADE RATING IF YOU'RE WHAT'S BACKING THE BONDS ISN'T STRONG ENOUGH, RIGHT? LIKE SO. 
          FIRST OF ALL, ROUND ROCK ISD IS THE HIGHEST RATED SCHOOL DISTRICT IN THE ENTIRE STATE. 
          YOU'RE THE ONLY SCHOOL DISTRICT IN THE STATE THAT HAS A TRIPLE A BY MOODY'S AND A TRIPLE
A BY FITCH. 
          SO YOU GUYS ARE LIKE THE BEST. 
          AND THAT'S A TESTAMENT TO THE BOARD AND THE STAFF. 
          I MEAN, YOU HAVE AN AMAZING STAFF, BY THE WAY. 
          AND SO. 
          THE BONDS ARE LEVERAGING THE DISTRICT'S UNDERLYING RATING OF TRIPLE-A. 
          RIGHT. THEY WON'T RATE IT ON PAR AS ROUND ROCK INDEPENDENT SCHOOL DISTRICT BECAUSE THIS
IS A SUBSIDIARY. 
          SO YOU MAY BE DOUBLE A ONE, BUT IT'S GOING TO ALLOW YOU TO ACCESS THE CAPITAL MARKETS AT
ONE OF THE LOWEST POSSIBLE INTEREST RATES THAT YOU CAN GET OUT THERE. 
          THESE DO NOT HAVE PERMANENT THE PERMANENT SCHOOL FUND. 
          RIGHT. WHICH I'M SURE YOU'RE ALL AWARE OF. 
          IT'S BASICALLY A TRIPLE A INSURANCE THAT SCHOOL DISTRICTS ARE ALLOWED TO UTILIZE. 
          THIS IS ALL BASED ON THE DISTRICT'S UNDERLYING RATING. 
          BUT DOESN'T THE TRIPLE A, DOESN'T THAT GIVE US THE ABILITY OR THE PERMANENT FUND THAT
GIVES US THE ABILITY TO GET VERY LOW INTEREST RATES? CORRECT? IT DOES. 
          BUT FOR A SCHOOL DISTRICT LIKE YOU, YOU'RE SAYING THAT WE'RE GOING TO GET SIMILAR
INTEREST RATES, YOU'RE GOING TO GET A VERY SIMILAR INTEREST RATE. 
          THAT'S WHAT I WAS WONDERING. 
          IT'S GOING TO BE SOMEWHERE A SPREAD BETWEEN 5 TO 10 BASIS POINTS LOWER OR HIGHER. 
          YOU'RE GOING TO PAY FOR A PFC THAN A REGULAR SCHOOL DISTRICT BOND. 
          AND THEN JUST TO BE CLEAR, YOU WERE SAYING ALL OF THIS COMES OUT OF THE INS SIDE. 
          NO, THIS IS SO THIS COMES OUT OF AND SO IT'S OKAY. 
          THAT'S WHERE WORST CASE SCENARIO, THIS WOULD COME OUT OF THE MATH SIDE. 
          OKAY. I GIVE YOU AN EXAMPLE. 
          DOWN THE STREET AT PFLUGERVILLE ISD, THEY BOUGHT THE ADMIN BUILDING, THE CHURCH, THE
SCHOOL DISTRICT IS LEASING THE CHURCH FROM THE PFC. 
          AND THAT MONEY IS COMING OUT OF THE SIDE. 
          IT'S ABOUT $1 MILLION A YEAR. 
          THEY'RE PAYING FROM THE SIDE TO THE PFC TO PAY THE BONDS. 
          THANK YOU. SURE THING. 
          SO I THINK EVERYBODY'S HAD ONE TURN TO TALK. 
          I HAVE ONE ADDITIONAL LIGHT ON, BUT I HAVE JUST A COUPLE OF QUESTIONS BEFORE WE DO. 
          ROUND TWO. 
          I LOVE THE OPPORTUNITY TO OFFER. 
          TEACHERS A LOW HOUSING OPPORTUNITY ALTERNATIVE. 
          BUT I WONDER ABOUT GOING INTO THIS VENTURE FOR SOMETHING THAT'S GOING TO HELP 100
EMPLOYEES. 
          YOU KNOW, WHEN WE HAVE 6000 EMPLOYEES, THE IMPACT THAT THIS HAS ON OUR STAFF IS A REALLY
SMALL PORTION. AND SO, LIKE THAT'S JUST FLOATING IN THE BACK OF MY MIND. 
          YOU DON'T EVEN HAVE TO RESPOND TO THAT ONE. 
          BUT IT'S JUST SOMETHING THAT'S FLOATING IN THE BACK OF MY MIND  IS THIS SOMETHING WE WANT
TO GO INTO THAT'S GOING TO HELP 80 TO 100 STAFFERS, OR IS THERE SOMETHING THAT WE AS A DISTRICT CAN DO THAT WILL HAVE GREATER IMPACT ON ALL OF OUR STAFF? DON'T HAVE THE ANSWER TO THAT NOW. 
          BUT MY OTHER QUESTION THAT WASN'T MY QUESTION. 
          THE FIRST QUESTION I HAVE IS WE TALK ABOUT WE'VE TALKED ABOUT HOW THIS COULD BE KIND OF
ALMOST NET ZERO BECAUSE WE WOULD BE COLLECTING 
          [01:00:04]
RENT. CAN YOU TALK ABOUT HOW THIS IS POSSIBLE, LIKE WITH PFLUGERVILLE ISD, WHO'S DOING IT
ADMINISTRATION BUILDING THAT DOESN'T MAKE ANY MONEY ON IT. 
          HOW DOES CREATING A PFC BECAUSE I KNOW EVERYBODY KNOWS ROUND ROCK ISD NEEDS A NEW
ADMINISTRATION BUILDING. 
          I MEAN, WE HAVE GOT SO MANY SATELLITE FACILITIES AND IF THAT'S A DIRECTION THAT THIS
BOARD WANTED TO GO WITH THE PFC, HOW WOULD THAT OPERATE WHEN IT'S NOT A REVENUE GENERATING SOURCE? THAT WOULD COME OUT OF THE BUDGET. 
          SO DENNIS WOULD HAVE TO FIND YOU $1 MILLION A YEAR. 
          YEAH. YOU HAVE TO PUT A LINE IN YOUR BUDGET TO COVER THE FCC'S LEASE. 
          SO TO BE A STRAIGHT EXPENSE LIKE ANY OTHER EXPENSE THAT WE HAVE ON THE SIDE. 
          SO THE REAL THE ONLY REAL BENEFIT OF GOING THROUGH A PFC TO DO AN ADMINISTRATION BUILDING
IS TO NOT HAVE TO GET VOTER APPROVAL. 
          THAT. CAN I ANSWER THAT? I THINK IT JUST SO IT DEPENDS. 
          RIGHT. SO IN OUR CASE, WE DON'T HAVE ANY BONDS THIS YEAR. 
          WE MAY NOT HAVE A BOND. 
          I DON'T KNOW IF IT WILL HAVE A BOND POSSIBLY NEXT YEAR. 
          MAYBE WE'LL HAVE IT IN TWO YEARS OR WHATEVER. 
          BUT IF THE NEED IS NOW AND WE CANNOT WAIT FOR A YEAR OR TWO FOR THE BOND, WE CAN GO WITH,
LET'S SAY THIS IS THE WISH OF THE BOARD, OBVIOUSLY WE CAN GO WITH THE PFC, GET THE BUILDING, AND THEN WHEN IT'S TIME FOR THE BOND, WHETHER IT'S A YEAR OR 2 OR 3
DOWN THE ROAD, WE CAN ADD THAT INTO THE BOND THEN. 
          AND THAT WAY WE DON'T HAVE TO WAIT FOR TWO OR 3 OR 4 MORE YEARS UNTIL WE GO OUT FOR A
BOND. 
          SO THAT'S ALSO A BENEFIT. 
          SOME SCHOOL DISTRICTS MAY THINK ABOUT DOING SOMETHING LIKE THAT. 
          SO YOU LET ME MAKE SURE I UNDERSTOOD YOU CORRECTLY. 
          ARE YOU SAYING THAT YOU COULD GO FOR A PFC? I MEAN, LET'S JUST USE THE ADMINISTRATION BUILDING OPTION. 
          HERE YOU GO FOR A PFC, BECAUSE, YOU KNOW, WE HAVE A VERY CLEAR NEED FOR THAT. 
          AND THEN IN I MEAN, JUST HYPOTHETICALLY, WE GO FOR A BOND IN 24, YOU COULD THEN ADD THAT
PROPERTY TO A BOND AT A LATER. 
          SO AND EVEN A BETTER EXAMPLE IS EARLY COLLEGE, HIGH SCHOOL. 
          RIGHT? SO WE HAVE WE ONLY WE DON'T HAVE ENOUGH MONEY TO BUILD EARLY COLLEGE, HIGH SCHOOL. 
          RIGHT. WE HAVE PRACTICALLY HALF OF IT TO BUILD THE EARLY COLLEGE HIGH SCHOOL, LET'S SAY. 
          BUT WE DON'T HAVE ANYTHING. 
          WE DON'T HAVE A BOND THAT IS LINED UP FOR 2023. 
          THERE'S NOTHING COMING UP FOR 2024 OR MAYBE UNDER 2024 OR 2025. 
          SO IN ORDER FOR US NOT TO WAIT FOR THE BOND, WE CAN GO AHEAD AND DO A PFC, GET THE MONEY,
BUILD THE EARLY COLLEGE HIGH SCHOOL, BUT PROBABLY OUR STUDENTS WILL START USING IT BY THE TIME PROBABLY WOULD DECIDE TO GO OUT FOR A BOND. 
          BUT WHAT WE'LL DO IS WE ADD THAT ITEM INTO THE BOND, THEN WHATEVER. 
          IT'S LIKE $15 MILLION LET'S SAY WE NEED. 
          AND IF OUR BOARD I'M SORRY, IF OUR TAXPAYERS APPROVE IT, THEN WE CAN PAY RIGHT AWAY THAT
PFC, THE LOAN THAT OR THE BOND WE GET FROM THE PFC. 
          AND THEN WHAT ABOUT MONEY THAT IS PAID TO THE PFC BEFORE A BOND AND THEN SAY WE'RE STILL
IN THIS HYPOTHETICAL WORLD, BUT THIS BOND NOW PASSES FOR EARLY COLLEGE, HIGH SCHOOL ADMINISTRATION BUILDING. 
          THE AMOUNT OF MONEY THAT YOU HAVE SPENT FROM YOUR NO. 
          FROM WHEN THE PFC WAS CREATED UNTIL THE BOND PASSED. 
          CAN YOU RECOUP THOSE CHARGES OR THOSE COSTS BACK INTO YOUR. 
          NO, UNFORTUNATELY, YOU CANNOT. 
          OKAY. SO ONCE THAT'S ALREADY ONCE YOU PAY IT, IT'S KIND OF GONE FOREVER. 
          AND YOU WOULD LET'S SAY YOU DID $50 MILLION FOR A NEW ADMIN BUILDING AND YOU ALREADY PAID
FIVE. 
          WHEN WE'D HAVE IT ON A BOND ELECTION FOR 24 OR 25, IT WOULD BE 45 MILLION. 
          BUT I THINK WHAT YOU TALKED ABOUT EARLIER, TOO, IS THE WAY YOU STRUCTURE YOUR BOND. 
          RIGHT? IF YOU GO FOR THE FIRST 2 OR 3 YEARS, YOU PAY ONLY INTEREST, THEN YOU REDUCE THE
COST. 
          SO INSTEAD OF PAYING A MILLION, YOU MAY END UP MAYBE PAYING ONLY 500. 
          SO BY THE TIME YOU GO TO THE BOND, THE COST THAT YOU WE ALREADY PAID MAY BE LIMITED. 
          I MEAN, IT WOULD BE SOMETHING, OBVIOUSLY, BUT IT WON'T BE, LET'S SAY, THE WHOLE THING. 
          AND I JUST WANT TO MAKE SURE I WAS REALLY CLEAR THAT I'M NOT NECESSARILY OPPOSED TO
LOOKING AT TEACHER HOUSING. 
          I JUST WANT TO LOOK AT A LOT OF YOU HAVE ALREADY RAISED A LOT OF THE CONCERNS THAT I
HAVE, QUESTIONS THAT I HAVE. 
          I WANT TO KNOW WHAT IN ROUND ROCK ISD, WHAT THE NEED IS. 
          YOU KNOW, DO WE HAVE TEACHERS THAT ARE SAYING, YEAH, I REALLY WANT THIS BECAUSE THAT'S
GOING TO REQUIRE THEM RELOCATING FROM WHERE THEY'RE CURRENTLY. 
          I MEAN, WE DO HAVE NEW TEACHERS AND ALL THAT WE'RE RECRUITING EVERY YEAR, BUT I WOULD
WANT TO MAKE SURE THAT WE, IF WE ARE GOING TO GO THAT ROUTE THAT WE HAVE DONE A SURVEY OF OUR STAFF OF, YOU KNOW, HOW LIKELY WOULD THEY BE TO ACCESS THIS? AND I DO HAVE CONCERNS WHEN YOU MINGLE EMPLOYMENT WITH HOUSING, I HAVE SOME CONCERNS
ABOUT THAT. 
          [01:05:03]
WHAT IF THEY ARE BAD TENANTS BUT NOT BAD EMPLOYEES? WHAT IF THEY'VE DONE SOMETHING IN OUR PROPERTY THAT IS BECOMES A CONCERN, YOU KNOW,
CRIMINAL OR WHATNOT, YOU KNOW, HOW DOES THAT IMPACT THEIR EMPLOYMENT WITH US? SO THERE'S JUST A LOT OF UNKNOWNS ABOUT THIS. 
          AND I WOULD BE INTERESTED IN SEEING WHAT THE NEXT STEPS ARE, HAVING SOME OF THOSE
QUESTIONS ANSWERED BEFORE I MADE A FINAL DECISION. 
          WHAT'S BEST FOR THE DISTRICT AS A WHOLE? BECAUSE WHEN YOU MIX PRIVATE AND PERSONAL PERSONAL LIFE AND YOUR BUSINESS LIFE TOGETHER,
SOMETIMES THAT DOESN'T NECESSARILY MAKE THE BEST ARRANGEMENT. 
          I HAVE TWO OTHER LIGHTS THAT ARE ON NOW. 
          TRUSTEE. HARRISON. 
          YEAH, I'LL BE BRIEF. I JUST THANK YOU FOR BRINGING THIS, BECAUSE WE ALWAYS SAY WE WANT
INNOVATIVE THINGS, AND THEN I DON'T WANT YOU TO FEEL LIKE YOU BROUGHT SOMETHING INNOVATIVE. AND WE WERE LIKE, NO, I'M NOT SAYING NO. 
          I'M JUST SAYING THIS SEEMS REALLY BIG. 
          AND TO ME, THE FIRST STEP, I MEAN, OBVIOUSLY WE WOULD LIKE TO GO OVER THE TIMELINE OF
WHAT DECISIONS NEED TO BE MADE WHEN. 
          BUT THE FIRST STEP REALLY DOES FEEL LIKE POLLING TEACHERS. 
          AND I'M WONDERING WHAT OUR CAPACITY FOR THAT MIGHT BE. 
          DR. AZAIEZ IN A REASONABLE TIMELINE. 
          I MEAN, THE CAPACITY TO TO GET SOME FEEDBACK WE CAN I MEAN, I JUST HOPE THAT ONCE WE SEND
THAT SURVEY, WE'LL HAVE TEACHERS LIKE, HEY, YOU TOLD US YOU, BUT WE WILL PHRASE IT IN A WAY THAT WE GET INPUT FROM OUR TEACHERS AND
STAFF, RIGHT? SO THAT WILL HELP GUIDE. 
          OKAY. SO WE CAN DEFINITELY DO THAT. 
          I'M LOOKING AT I'M LOOKING FOR BEFORE YOU HERE, BUT LET ME UNDERSTAND THE TIMELINE FIRST
BEFORE. 
          SO REALLY, THE FIRST STEP WOULD BE DECIDING IF WE EVEN WANTED TO GO FOR AN APPLICATION
AND THEN GOING THROUGH THAT PROCESS TO GET US APPROVED TO HAVE A PFC. 
          AND THEN FROM THAT POINT, WE WOULD DECIDE WHAT WE WANTED TO DO WITH THE PFC. 
          LIKE THOSE ARE TWO SEPARATE PROCESSES, RIGHT? YEAH. SO I THINK THAT'S WHAT RUDY HAS UP THERE. 
          IT'S THE FIRST STEP IS REALLY TO IF WE WANT TO EVEN EXPLORE THIS OPTION, RIGHT? THE PFC IS REALLY TO APPROVE A RESOLUTION, RIGHT, RUDY? IS THAT WHAT IT IS? THAT'S RIGHT. 
          IT LIKE I SAID BEFORE, SETTING UP THE PFC DOESN'T OBLIGATE YOU TO DO ANYTHING. 
          IT'S JUST SETTING UP ANOTHER ENTITY TO ALLOW YOU TO THE TOOL, RIGHT? IT WOULD TAKE US AT LEAST 60 DAYS TO EVEN GET THE PFC SET UP, YOU KNOW, REGISTERED WITH
THE STATE. 
          IT'S LIKE SETTING UP A, YOU KNOW, LLC THROUGH LEGALZOOM. 
          IT TAKES SOME TIME TO GET IT ALL REGISTERED. 
          BUT TO TRUSTEE HARRISON POINT, IF YOU WANT US TO GET THE SURVEY OR GET SOME TYPE OF
SURVEY PRIOR TO THAT, I MEAN, WE WOULD BE HAPPY TO DO IT. 
          I KNOW WE'LL GET QUESTIONS. 
          WHAT DO YOU MEAN? TEACHERS WILL ASK WHY ARE YOU ASKING THIS QUESTION? SO WE NEED TO BE CLEAR THAT WE ARE JUST ENTERTAINING OR LOOKING AT THE POSSIBLE
EXPLORING. 
          THANK YOU. THAT'S THE WORD I WAS LOOKING FOR. 
          SO THAT WAY I DON'T WANT TO GIVE THEM ANY FALSE HOPE CONSIDERING THAT MAYBE MAYBE WE
DECIDE NOT TO GO THAT ROUTE. 
          RIGHT. SO I WANT TO MAKE IT CLEAR. 
          MY CONCERN IS THAT THIS I MEAN, PERHAPS THIS DOES DESERVE TO BE EVALUATED. 
          BUT I THINK THAT, YOU KNOW, THERE'S THAT PHRASE, NOTHING ABOUT US WITHOUT US IS FOR US. 
          AND SO I THINK THE OPTICS IN A WORLD WHERE EDUCATORS OFTEN FEEL DISMISSED, DISRESPECTED,
UNHEARD, WHETHER IT'S BY THE BOARD, WHETHER IT'S BY THE LEGISLATURE, THAT'S THE REALITY OF WHAT WE'RE LIVING IN TO MOVE
FORWARD WITHOUT THE AFFIRMATION OF, YES, WE HAVE INTEREST, YES, WE HAVE NEED DOES NOT FEEL RIGHT TO ME. 
          AND I UNDERSTAND THIS TIMELINE. 
          YOU KNOW, I WOULD HATE FOR THIS TO POTENTIALLY BE A GOOD THING. 
          AND WE CAN'T EVEN GET BROAD BOARD SUPPORT BECAUSE WE HAVEN'T HEARD FROM THE PEOPLE THAT
THIS WOULD SERVE. 
          AND SO I DO WANT TO MAKE THE REQUEST, AND I KNOW THAT IT WOULD NEED TO TAKE AGREEMENT
FROM MY COLLEAGUES THAT WE DO SOME JUST AT LEAST EVEN LIGHT POLLING, INFORMATION SHARING WITH EDUCATORS AND THE PEOPLE. 
          THIS WOULD IMPACT BEFORE WE EVEN CONSIDER ENTERING INTO THE EXPLORATION. 
          IT SOUNDS GREAT. WE WILL DO THAT. 
          TRUSTEE. HARRISON. IT'S NOT IF IF IT'S OKAY WITH EVERYONE. 
          WELL, HOLD ON. 
          WE NEED TO MAKE SURE THAT WE HAVE A CONSENSUS FROM THE BOARD. 
          DO I HAVE CONSENSUS FROM THE BOARD THAT WE WOULD LIKE TO PULL OUR STAFF? YEAH, I SEE. AT LEAST FOUR. 
          SO NOW. 
          NOW YOU CAN PROCEED WITH IT. 
          THANK YOU. WANT TO MAKE SURE THAT WE'VE GOT ENOUGH SUPPORT FROM THE BOARD ON THAT
DIRECTION. 
          IT WAS AT THE END OF YOUR QUESTIONS. 
          ALL RIGHT. TRUSTEE WESTON. 
          SO I WOULD JUST LIKE TO SAY THAT MR. CURRAN IS HERE. 
          HIS SHOP COULD PROBABLY TELL YOU PRETTY QUICKLY. 
          THIS IS THE HOUSE WHERE WE RECRUIT AND ADDRESS RETENTION ISSUES. 
          SO IF HIS SHOP IS THE ONE OUT THERE TALKING TO THE WORKFORCE THAT'S LOOKING FOR JOBS, HE
COULD PROBABLY TELL US PRETTY QUICKLY, MAYBE NOT TONIGHT, BUT PRETTY PROBABLY TELL US 
          [01:10:01]
PRETTY EASILY WHETHER THAT COMES UP IN THE INTERVIEWS. 
          IF WE HAVE TEACHERS THAT DON'T COME HERE BECAUSE WE DON'T OFFER THAT. 
          SO I DON'T THINK IT'S JUST A MATTER OF MY OPINION. 
          I DON'T THINK IT'S JUST A MATTER OF PULLING CURRENT EMPLOYEES. 
          I THINK IT'S A MATTER OF DOES THIS COME UP AMONG JOB SEEKERS THAT WE'RE LOOKING TO HIRE? SO DOES THAT MAKE SENSE? DR. AZAIEZ I THINK THAT'S WORTH. 
          ROPE LOOPING HIS SHOP INTO THIS CONVERSATION. 
          THAT WOULD BE AS A FORMER HR PROFESSIONAL MYSELF, I MEAN, I ALWAYS LOOK TO THE WORKFORCE
THAT I'M TRYING TO HIRE TO HELP ME MAKE DECISIONS WITHIN MY ORGANIZATION. 
          THE OTHER THING, I JUST WANT TO DRAW THE BOARD'S ATTENTION. 
          SO THE LAST BOND ELECTION THAT WE HAD WAS IN 2018, THE LAST SUCCESSFUL BOND ELECTION. 
          A LOT HAS CHANGED LEGISLATIVELY WITH HOW ANY FUTURE BOND IS GOING TO LOOK TO THE VOTERS,
RIGHT? DR. AZAIEZ SO, YOU KNOW, THE LAST BOND THAT WE HAD WAS $508 MILLION, AND IT WAS A SINGLE
PROPOSITION. 
          BUT NOW THE LAW IS VERY DIFFERENT. 
          SO IF EARLY COLLEGE, HIGH SCHOOL, IF WE WERE GOING TO ESTABLISH A PFC AND THEN, YOU KNOW,
IN THE FUTURE, PUT THAT ON A BOND PROPOSITION, IT'S GOING TO BE STAND ALONE, WHICH MEANS IT'S GOING TO GO OUT TO 70,000 VOTERS OR MORE JUST FOR THAT ONE
BUILDING. 
          YOU CAN'T LUMP IT IN. 
          DOES THIS MAKE SENSE? IT'S GOING TO BE A STAND ALONE PROP. 
          AND THE WAY THAT'S PLAYING OUT AROUND THE STATE, I MEAN, DO YOUR OWN RESEARCH. 
          DON'T TAKE MY WORD FOR IT. 
          BUT THESE THINGS, WHEN THEY'RE STAND ALONE PROPS STAND ALONE FACILITIES, THEY'RE HARDER
TO PASS. 
          SO JUST KEEP THAT IN MIND. 
          AND WHAT WAS THE. OH, THE ADMINISTRATION BUILDING. 
          SO AS A NEW FACILITY, AS A STAND ALONE FACILITY, IT WOULD BE A STAND ALONE PROP TO THE
VOTERS. 
          SO I WOULD JUST, YOU KNOW, DO SOME RESEARCH. 
          I WOULD RECOMMEND THAT YOU DO SOME RESEARCH IF YOU'RE THINKING THAT YOU'RE GOING TO SET
UP A PFC. 
          AND THEN IN THE FUTURE, YOU'RE GOING TO PUT IT ON THE BALLOT, THE DATA IS SHOWING THAT
THOSE THINGS AREN'T QUITE THE SLAM DUNK. 
          SO THAT'S ALL I WANTED TO CONTRIBUTE. 
          I WANT TO ECHO TIFFANY'S WORDS. 
          ANY. I'M ALL FOR INNOVATION, SO I DO APPRECIATE YOU BRINGING IT FORWARD AS AN IDEA. 
          THANK YOU. [INAUDIBLE]. 
          TRUSTEE ZARATE. I'M JUST GOING TO ECHO EVERYTHING Y'ALL ARE SAYING, BUT I FEEL LIKE I HAVE
TO SAY IT OUT LOUD ANYWAY. 
          I WANT TEACHERS TO MOVE TO THE DISTRICT. 
          I WANT THEM TO HAVE A PLACE TO LIVE HERE BECAUSE IT IS SO EXPENSIVE TO LIVE IN OUR
DISTRICT. 
          I LOVE THE IDEA THAT IT'S I LOVE THIS OUT OF THE BOX IDEA. 
          I REALLY DO. 
          I DON'T WANT TO BE THE FIRST ONE TO DO THIS IN THIS AREA. 
          I NEED TO SEE THOSE CASE STUDIES OF IT WORKING ELSEWHERE. 
          OTHER STATES LIKE YOU'RE TALKING ABOUT, IF IT'S IN CALIFORNIA, MAYBE AN AREA OF
CALIFORNIA THAT'S SIMILAR IN ECONOMY TO US, I MEAN, THEY'VE BROUGHT THEIR ECONOMY TO US ANYWAY, SO IT SHOULD BE EASY TO FIND THAT. 
          BUT YEAH, IT'S INTERESTING. 
          IT'S INTERESTING. BUT THERE'S NO WAY IN THE WORLD I COULD APPROVE SOMETHING LIKE THIS
UNLESS I HAD A LOT OF INFORMATION STILL. 
          ALL RIGHT. I DON'T HAVE ANY OTHER LIGHTS ON. 
          NO. TRUSTEE BONE. 
          YEAH, BUT I HAVE A FEW THINGS. 
          I THINK I WOULD LIKE SOME MORE DATA TOO, ABOUT JUST OUR TEACHER SHORTAGE. 
          I WAS TRYING TO FIND IT, BUT IN OUR EMAIL BECAUSE OF ANOTHER ISSUE I'D ASK. 
          I'D ASK FOR HOW MANY OPENINGS WE HAVE AND HOW MANY TEACHER POSITIONS DO WE NOT HAVE
FILLED. 
          AND I BELIEVE IT WAS 25. 
          I DON'T KNOW IF EDDIE HAS THOSE NUMBERS IN HIS HEAD OR BUT I THINK WE'RE PRETTY GOOD
RIGHT NOW, RIGHT? LIKE WE'VE GOT MOST POSITIONS FILLED. 
          SO I THINK I WOULD LIKE THOSE KIND OF NUMBERS BECAUSE OBVIOUSLY IF THOSE TEACHER
POSITIONS ARE FILLED, YOU KNOW, I DO KNOW EVERY YEAR WE'RE GOING TO HAVE SOME TURNOVER, BUT LOTS OF TIMES THAT'S ALSO LOCALLY, RIGHT? SO I THINK I NEED TO KIND OF UNDERSTAND HOW MANY PEOPLE ARE MOVING INTO ROUND ROCK EVERY
YEAR, BECAUSE IF WE DON'T HAVE A LOT OF TEACHERS MOVING IN, THEN WE DEFINITELY AREN'T GOING TO BE ABLE TO FILL THESE. 
          SO I THINK THOSE ARE SOME DATA AND SOME NUMBERS THAT I WOULD LIKE TO SEE. 
          AND WITH THE SURVEY, I'M ACTUALLY I'M NOT FOR JUST LIKE A GENERAL SURVEY BECAUSE IF YOU
GO AND ASK THE TEACHERS, HEY, DO YOU WANT HOUSING? LIKE IF YOU COME AND ASK ME IF I WANT HOUSING, I MEAN, YEAH, SURE, I WANT HOUSING. 
          I THINK THERE HAS TO. I MEAN, I THINK THAT'S NOT I THINK IT'S A LITTLE BIT DISINGENUOUS
IN A WAY IN THE FACT THAT I THINK WE NEED TO PUT SOME KIND OF WHAT TYPE OF HOUSING AND WHAT'S THE COST SAVINGS. 
          YOU KNOW, WHAT ARE WE TALKING ABOUT HERE? I THINK YOU'VE GOT TO GIVE THEM A LITTLE BIT MORE MEAT SO THAT WE CAN ACTUALLY HAVE A
VERY GOOD SURVEY. 
          BECAUSE IF YOU JUST ASK THEM, I MEAN, HEY, EVERYBODY WANT HOUSING, EVERYBODY'S GOING TO BE
LIKE, WELL, SURE. 
          I MEAN, ALL OF US WOULD RAISE OUR HANDS. 
          BUT IF YOU SAY, HEY, YOU'RE GOING TO HAVE HOUSING, YOU'RE GOING TO HAVE A 800 SQUARE FOOT
APARTMENT AND IT'S GOING TO BE $2,500 A MONTH. 
          THEN PEOPLE ARE GOING TO BE LIKE, WAIT, THAT'S NOT WHAT I WANT. 
          RIGHT. SO I THINK THERE HAS TO BE SOME KIND OF QUALIFIER ON THAT. 
          I THINK BEFORE THAT SURVEY GOES OUT, IN MY OPINION, AND HOPEFULLY I GET BROAD SUPPORT FOR
THAT. 
          JUST TO ADD THAT, BECAUSE I THINK THAT'S MORE FAIR TO THE TEACHERS BECAUSE I DON'T THINK
IT'S FAIR. 
          [01:15:03]
I'VE KIND OF WATCHED AUSTIN DO THIS AND THEY MADE BIG PROMISES. 
          AND THEN I FEAR THAT THESE TEACHERS ARE GOING TO GET INTO THESE HOUSES AND BE LIKE, HEY,
I CAN GO OVER TO THAT APARTMENT AND IT'S $100 LESS A MONTH. 
          AND THAT'S GOING TO BE REALLY THAT'S GOING TO BE HARD. 
          IT'S GOING TO BE SAD. 
          SO I THINK I NEED SOME INFORMATION LIKE THAT. 
          LIKE WHAT IS IT GOING TO BE, THE COST SAVINGS AND LITERALLY APPLES TO APPLES, YOU KNOW,
ACROSS THE STREET, YOU'RE GOING TO BE PAYING FOR THE SAME TYPE OF APARTMENT. 
          YOU'RE GOING TO BE PAYING THIS, BUT WE'RE GOING TO BE ABLE TO PROVIDE IT FOR THIS. 
          I DON'T KNOW IF WE HAVE THAT INFORMATION THIS EARLY IN THE PROCESS. 
          I DON'T THINK THAT'S A REALISTIC EXPECTATION. 
          IT WOULD DEPEND ON WHEN IT'S BUILT, WHERE IT'S LOCATED. 
          WELL, I THINK YOU CAN HAVE SOME KIND OF COST SAVINGS PERCENTAGE LIKE WE NEED SOMETHING. 
          I MEAN, I DON'T EVEN KNOW HOW WE MOVE FORWARD WITHOUT EVEN KNOWING. 
          WELL, I'M SORRY, DR. 
          BONE, OFF THE BAT, WE CAN JUST SAY, LIKE THE THE TAXES, THESE APARTMENTS WON'T BE TAXED. 
          SO IN OTHER WORDS, LET'S SAY OFTENTIMES IT'S LIKE IF IT'S A SOMEBODY IS PAYING $2,500, I
THINK ABOUT HALF OF IT IS GOING TO GO TO THE MORTGAGE. 
          RIGHT. THAT'S INTEREST AND THEN THE OTHER HALF IS PROBABLY TAXES, INSURANCE, ETCETERA. 
          RIGHT. SO WE'RE LOOKING AT 40% OR 50% OFF. 
          REALLY? LIKE THAT'S I MEAN, I THINK WE SHOULD GIVE THEM A MORE CONSERVATIVE NUMBER. 
          BUT I DO THINK WE CAN HAVE SOME KIND OF IDEA TO START WITH. 
          I MEAN, I JUST THINK THEY NEED TO KNOW, IS THIS LIKE 2 TO 3%, 10%, 20%, 40% AND
CONSERVATIVE? AND SOMEHOW I JUST DON'T THINK IT'S FAIR TO SAY. 
          DO YOU WANT. YOU KNOW, CHEAP HOUSING BECAUSE WHAT DOES THAT MEAN? RIGHT? OR SO THAT WOULD BE MY ONLY THING WITH THE SURVEY. 
          AND THEN I THINK IF WE ARE GOING TO DO A SURVEY AND IF WE MOVE FORWARD, FOR ME, I WOULD
HAVE TO HAVE SOME KIND OF COMMUNITY SURVEY FROM THE PARENTS TO WEIGH IN. 
          AND MORE THAN A PUBLIC FORUM, I MEAN, TO HAVE PEOPLE COME TO THE MIC AND TALK, THAT'S ONE
THING. 
          BUT I WOULD LIKE. 
          FOR ME PERSONALLY, I WOULD NEED THE WHOLE COMMUNITY TO HAVE THIS INFORMATION AND
SOMETHING THAT WE'RE NOT JUST FLIPPING THROUGH. 
          PEOPLE ARE BUSY. 
          THIS IS NOT SOMETHING THAT I KNOW TONIGHT'S THE FIRST NIGHT, BUT JUST FOR ME, IF WE'RE
GOING TO DO SURVEYS AND MOVE FORWARD, I REALLY THINK THE COMMUNITY, THE PARENTS SHOULD WEIGH IN ALSO, BECAUSE IF WE HAVE A IF WE DON'T HAVE BROAD SUPPORT FROM THE COMMUNITY, I
JUST DON'T KNOW IF I CAN MOVE FORWARD AND IS THERE AFTER ALL, THESE ARE THEIR SCHOOLS, NOT MINE. I JUST SIT IN THE SEAT LIKE TRUSTEE WESTON SAYS FOR A SHORT TIME AND. 
          DO WHAT I DO. ALL RIGHT. 
          NOW, DO I HAVE ANY OTHER. 
          IT DOESN'T LOOK LIKE IT. 
          WILL THERE BE A POOL? DO WHAT? WILL THE APARTMENT HAVE A POOL? I'M JUST KIDDING. SORRY. 
          THANK YOU VERY MUCH, RUDY, FOR COMING TONIGHT. 
          I REALLY APPRECIATE YOUR TIME. 
          WELL, I'D LIKE TO MAKE A CLOSING STATEMENT, IF YOU DON'T MIND. 
          PLEASE. BUT YOU KNOW, ALL THE QUESTIONS THAT YOU TRUSTEES PROVIDED TONIGHT ARE SPOT ON. 
          I THINK YOU'RE ASKING APPROPRIATE QUESTIONS, AND I APPRECIATE YOUR PATIENCE AS WE
NAVIGATE THIS NEW OPPORTUNITY BECAUSE IT IS VERY INNOVATIVE. AND WHEN DR. 
          AZAIEZ AND DENNIS AND I WERE CHATTING ABOUT OPTIONS AND WHAT WE CAN DO TO HELP, YOU KNOW,
YOUR TEACHERS AND HELP MINIMIZE COST, YOU KNOW, THIS WAS ONE OF THE IDEAS THAT CAME UP, RIGHT? AND YOU'RE GOING TO START HEARING QUITE A BIT MORE ABOUT FCS LOCALLY AND THROUGHOUT THE
ENTIRE STATE. 
          THIS ISN'T A PRODUCT OR AN OPPORTUNITY THAT I WOULD JUST RECOMMEND TO ANY SCHOOL DISTRICT. 
          YOU KNOW, LIKE I SAID BEFORE, YOU'RE THE HIGHEST RATED DISTRICT IN THE STATE. 
          YOU'RE A SOPHISTICATED BOARD, YOU HAVE A SOPHISTICATED STAFF AND A VERY SOPHISTICATED
SUPERINTENDENT. 
          YOU'RE IN A POSITION TO TAKE ADVANTAGE OF SOMETHING LIKE THIS. 
          WE WILL WORK THROUGH THE KINKS. 
          WE WILL PROVIDE EXAMPLES OVER THE NEXT SIX MONTHS WITH OUR NEIGHBORS DOWN THE STREET AND
WE'LL HAVE SOMETHING THAT WE CAN PRESENT TO YOU ALL WITH MORE IN-DEPTH NUMBERS AND ANALYSIS. 
          BUT I THINK EVERYTHING THAT YOU ASKED TODAY WAS PERFECT AND SPOT ON. 
          SO I APPRECIATE THE CANDIDNESS AND THE BACK AND FORTH. 
          IT'S VERY HELPFUL. 
          ALL RIGHT. THANK YOU AGAIN VERY MUCH FOR COMING TONIGHT. 
          IT IS 9:40. 
          DO WE NEED A FIVE MINUTE BREAK BEFORE WE GO INTO BUDGET? WHICH IS GOING TO. ALL RIGHT, LET'S LET'S COME BACK IN. 
          CAN WE DO IT IN FIVE MINUTES? ALL RIGHT. COME BACK IN FIVE MINUTES. 
          WE'RE IN RECESS. 
          THANK YOU. IT IS 9:45. 
          WE ARE BACK IN OPEN SESSION. 
          [F.2. 2023-24 Proposed Budget]
WE ARE ON AGENDA F TWO, 20, 23, 2024 PROPOSED BUDGET. 
          AND I AM ANTICIPATING THAT YOU HAVE A FINAL BUDGET READY FOR US TONIGHT. 
          READY? HA HA. 
          LET'S HOPE WE HAVE ONE READY BY JUNE 30TH. 
          NO, I KNOW BEING IN A LEGISLATIVE YEAR, WE HAVE NO CLUE WHAT OUR FUNDING SOURCES OR
ANYTHING ARE RIGHT NOW. 
          AND THIS IS VERY DIFFERENT FOR ME. 
          [01:20:01]
HAVE TO KEEP THIS VERY LIGHT HEARTED AT THIS TIME OF YEAR BECAUSE BUDGETING IS QUITE
UNKNOWN. 
          BUT I WILL TURN IT OVER TO YOU, MR. COVINGTON. THANK YOU, MA'AM. 
          TONIGHT, WE REALLY WANT TO JUST BRING Y'ALL UP TO SPEED ON THINGS THAT WE'RE HEARING,
POSSIBILITIES, SCENARIOS. 
          THERE'S NOTHING CONCRETE THAT I CAN TELL YOU. 
          IF I HAD SOMETHING CONCRETE, I WOULD PROBABLY BE THE FINEST CFO IN THE NATION OR IN TEXAS
RIGHT NOW BECAUSE NO ONE, NO CEO IN TEXAS, NO ONE KNOWS EXACTLY WHAT'S GOING ON. 
          SO TONIGHT, I'M GOING TO TALK TO YOU ABOUT SOME BUDGET FACTORS. 
          WE'RE ONLY TALKING ABOUT THE BUDGET TONIGHT. 
          I GUESS WE'LL TALK ABOUT IT LATER. 
          MEETING. SO WHAT ARE THE FACTORS THAT WE ARE LOOKING AT THAT'S GOING TO AFFECT OUR 2324
BUDGET? WOW. THERE'S A LOT OF THEM, A LOT OF UNKNOWNS. 
          AS YOU ALL KNOW, THE STATE BASIC ALLOTMENT INCREASED. 
          THAT'S TALKING THE LEGISLATURE, DIFFERENT AMOUNTS THAT THIS WILL INCREASE. 
          SO TONIGHT I'M GOING TO SHOW YOU IN A SCENARIO, A $300 INCREASE, A $500 INCREASE IN A
$750 INCREASE TO THE BASIC ALLOTMENT. 
          NOT SAYING ANY OF THOSE ARE GOING TO HAPPEN. 
          THIS IS JUST A WHAT IF SCENARIO. 
          DO NOT QUOTE ME THAT THE CFO OF ROUND ROCK SAID WE'RE GOING TO GET A $500 INCREASE ON THE
BASIC ALLOTMENT. 
          NO, I'M NOT TELLING YOU THAT. 
          I'M TELLING US WE'RE GETTING A $750. 
          I'M HOPING WE GET $1,000. 
          BUT ALONG WITH THAT, THERE'S THAT STIPULATION THAT, YOU KNOW WHAT, THAT WAS IN THE HOUSE
BILL THAT ONLY THAT YOU HAVE TO OF THE INCREASE 30% OF IT MUST GO TOWARDS COMPENSATION AND 75% OF THE 30% MUST BE FOR TEACHERS. 
          THERE'S SOME CONVERSATION THAT'S GOING TO GO TO 50% AND 75%. 
          SO I DON'T KNOW THAT ANSWER EITHER. 
          THE STAKE MAXIMUM COMPRESS RATE. 
          THERE HAVE BEEN TAUGHT THAT THE MAXIMUM COMPRESSION RATE IS GOING TO GO DOWN FROM THE 846
TO THE 72.460. 
          NEXT SLIDE, PLEASE. 
          AGAIN. YES, RIGHT THERE. 
          AND SO THE MAXIMUM COMPRESS RATE, AS YOU SAW FOR THIS YEAR, WAS 0.8046. 
          WITH THE PROPERTY VALUES FROM THIS YEAR, THEY ARE. 
          THERE'S TALK THAT MAY GO DOWN TO 0.7246, WHICH IS THE EIGHT CENT DROP IN YOUR MAXIMUM
COMPRESS RATE. 
          SO WE HAVE TO TAKE THAT INTO CONSIDERATION IN THE SCENARIOS THAT I WILL SHOW YOU. 
          WE'LL USE THAT TAX RATE PLUS OUR FIVE PENNIES A DAY VERSUS ENROLLMENT. 
          THERE'S SOME TALK OF LEGISLATION THAT DISTRICTS WANT TO BE FUNDED ON ENROLLMENT, NOT ON
ADA. 
          CAN YOU REMIND ANYBODY WATCHING WHAT ADA IS? AVERAGE DAILY ATTENDANCE. 
          SO WOULD IT BENEFIT THE DISTRICT TO BE ON ENROLLMENT? YES, BECAUSE JUST BECAUSE A CHILD DOESN'T COME TO SCHOOL EVERY DAY, THAT DOESN'T MEAN
THAT THE TEACHER DOESN'T HAVE TO COME TO WORK EVERY DAY. 
          SO IT'S BASED ON BEING BASED ON ENROLLMENT WOULD DEFINITELY HELP SCHOOL DISTRICTS. 
          LET'S TALK ABOUT THE HOMESTEAD INCREASES INCREASING FROM 40,000 TO 100,000. 
          SO THAT'S STILL UP IN THE AIR. 
          PROPERTY VALUE INCREASES, I THINK TRUSTEE BONE SAID THAT THE MARKET IS SETTLING, WHICH IT
IS, BUT IF YOU REMEMBER, MOST HOUSES VALUE WENT UP MORE THAN 10%, WHICH WAS THE CAP. 
          SO NEXT YEAR THE 10% WILL PROBABLY BE ADDED ON AGAIN. 
          THE VALUE WON'T GO UP, YOUR TAX RATE WILL GO UP, THOUGH, BECAUSE IT WENT UP MORE THAN 10%
THIS YEAR. 
          ENROLLMENT, THE ENROLLMENT FOR OUR DISTRICT IS DECLINING. 
          WE'RE GOING TO TRY TO PUT SOME THINGS IN PLACE TO TRY TO BRING BACK OUR KIDS. 
          SO YOU WILL SEE A SCENARIO WHERE ENROLLMENT IS FLAT. 
          OUR DEMOGRAPHER HAS PROJECTED THAT WE WILL LOSE 188 KIDS. 
          AND THEN I'M GOING TO SHOW YOU ONE IF WE LOSE 300 KIDS. 
          AND OUR AVERAGE DAILY ATTENDANCE LAST YEAR. 
          REMEMBER, I BUILT THE BUDGET ON NINE AND 5% ATTENDANCE RATE. 
          WE'RE NOW RUNNING CLOSE TO A 94%. 
          SO NEXT YEAR'S BUDGET, I THINK WE WILL USE 94% AND THAT WILL BE IN THOSE SCENARIOS ALSO. 
          NEXT SLIDE, PLEASE. 
          SO THE BUDGET PRIORITY NEEDS. 
          THESE ARE THINGS THAT. 
          WE KNOW THAT IS GOING TO REQUIRE FUNDING OR AT LEAST CONSIDERATION FOR FUNDING. 
          BUT THE MAIN ONE, WHICH I KNOW WE'RE GOING TO NEED FUNDING IS OUR ESSER FUNDING CLIFF. 
          AS YOU ALL CAN RECALL, THE FY 22 AND 23 BUDGET HAD ABOUT $8 MILLION WORTH OF POSITIONS
THAT WAS MOVED OUT OF THE GENERAL BUDGET INTO ESSER. 
          PERMANENTLY FUNDED POSITIONS. 
          NOW THOSE POSITIONS HAS TO COME BACK. 
          AND SO THAT'S THE HOLE THAT'S IN OUR BUDGET OF $8 MILLION, 8.9, I MEAN, 9.6 MILLION. 
          [01:25:04]
AND ALSO SUMMER SCHOOL WAS PLACED INTO ESSER AND THAT'S ABOUT $1 MILLION THAT IF WE'RE
GOING TO CONTINUE SUMMER SCHOOL IN ROUND ROCK, WE HAVE TO REPLACE THE MILLION DOLLARS. SO WE NEED 9.6 MILLION TO TO TAKE CARE OF THE FUNDING CLIFF. 
          ALSO, LAST YEAR, YOU ALL AGREED TO PAY $3 OUT OF FUND BALANCE FOR THE HEALTH INSURANCE
PREMIUM. 
          IF WE DON'T PUT THAT BACK IN THE BUDGET, YOU'RE GOING TO HAVE TO PAY 3 MILLION MORE NEXT
YEAR OUT OF FUND BALANCE FOR HEALTH PREMIUMS BECAUSE WE HAVE TO REPLACE THE FUNDING. 
          SO NOW WE'RE UP TO 12.6 MILLION ON TWO LINE ITEMS. A COMPENSATION INCREASES. 
          WE WANT TO REMAIN COMPETITIVE. 
          I INTERRUPT YOU. I'M SORRY, DENNIS. 
          OUT OF THE ESSER TO I DON'T KNOW IF YOU REMEMBER AND THIS WAS DONE JUNE OF 2021. 
          SO BESIDES WHAT DENNIS WAS TALKING ABOUT, SOME POSITION, PERMANENT POSITION THAT WAS THEY
WERE MOVED TO ESSER. 
          THEY WERE ALSO ABOUT $3 MILLION OF NEW POSITION THAT BACK THEN ALSO WERE APPROVED. 
          SO REALLY I DON'T THINK ACTUALLY THAT ESSER FUNDING CLIFF IS ACTUALLY HIGHER THAN THE
9.6. 
          THERE ARE ALSO THOSE NEW POSITION THAT WERE CREATED, ABOUT 100 POSITION, IF I REMEMBER
CORRECTLY, IT'S ABOUT 80. 
          BUT WE ARE EVALUATING THE NEED OF THOSE POSITIONS. 
          SO NOT SURE IF ALL OF THAT WOULD NEED TO BE FUNDED BACK, BUT I KNOW THE 9.6 NEEDS TO BE
RESTORED. 
          SO BACK TO THE COMPENSATION INCREASES. 
          WE WANT TO REMAIN COMPETITIVE IN THE MARKET FOR ALL OUR POSITIONS ACROSS THE DISTRICT. 
          AND AS OF RIGHT NOW, I HAVE NO IDEA WHAT WE WOULD NEED TO DO FOR COMPENSATION INCREASES. 
          BUT I DO KNOW THAT AT 1% ACROSS THE BOARD INCREASE FOR ROUND ROCK IS ABOUT $4 MILLION. 
          PROPERTY INSURANCE. 
          OUR PROPERTY INSURANCE. 
          THE MARKET IS INCREASING TREMENDOUSLY. 
          LAST YEAR, I THINK THE RATE WENT UP ABOUT 15 TO 16%. 
          UNFORTUNATELY, IT WAS CAME TO US AFTER WE ADOPTED THE BUDGET. 
          SO WE HAD TO FIND $100,000 TO PUT IN THE BUDGET. 
          AND SO WE NEED TO FIND A PERMANENT FUNDING FOR THOSE DOLLARS AND NEXT YEAR IS EXPECTED TO
GO UP 10% MORE. 
          SO THAT'S ABOUT $400,000. 
          SO WE'RE GOING TO NEED ABOUT $1.2 MILLION IN THE BUDGET JUST TO COVER PROPERTY INSURANCE. 
          FOR ALL INCREASES. 
          SO IF MY MATH IS CORRECT, WE'RE AT ABOUT A 15, $15 MILLION HOLE ON THIS ONE SIDE SLIDE
ALONE. 
          WITHOUT COMPENSATION INCREASE. 
          YES. OKAY. 
          JUST SO WE ALL ARE AWARE OF WHAT WE'RE FACING, FUEL INCREASES. 
          LUCKILY, I THINK FUEL HAS SORT OF STABILIZED, BUT THIS YEAR WE HAD TO ADD. 
          NEXT SLIDE, PLEASE. I'M SORRY. 
          WE HAD TO ADD ABOUT $500,000 FOR FUEL THIS YEAR DUE TO PRICE INCREASE, NOT CONSUMPTION,
JUST THE PRICE INCREASE. 
          MTA FUNDING SACHSE INSTRUCTIONAL MATERIALS AND TECHNOLOGY ALLOTMENT. 
          LUCKILY. WE HAVE FOUND A WAY TO REDUCE WHAT WE NEED FOR THIS, FOR THE BUDGET, FOR THIS. 
          SO ON THE OTHER SLIDES, SINCE I HAVE DONE THIS PRESENTATION ALREADY BEFORE I MET WITH
THAT DEPARTMENT, WE WON'T NEED $1 MILLION THAT'S ON THAT SLIDE BECAUSE WE HAVE WORKED WITH OUR VENDORS AND WE WILL BE ABLE TO DELAY PAYMENT UNTIL WE GET THE NEW MONEY IN
SEPTEMBER. 
          AND HOPEFULLY THEY ARE RESTORING THE MTA TO THE 9 MILLION THAT WE GOT IN 20. 
          2021 OF THE BIENNIUM. 
          THE NEXT ONE IS THE CTE SPIN REQUIREMENT. 
          AS YOU ALL KNOW, THE DOLLARS WE GET FOR CTE, WE MUST SPEND 55% DIRECTLY ON CTE STUDENTS. 
          THAT'S CALLED A REQUIRED SPEND. 
          AND WE'RE NOT MEETING THE REQUIRED SPEND. 
          SO WE'RE GOING TO HAVE TO INCREASE THEIR FUNDING BY OVER $1 MILLION. 
          SUMMER SCHOOL, WHICH WAS MOVED TO ESSER, WAS $1 MILLION. 
          BUT THE LAST TWO YEARS OUR SUMMER SCHOOL HAS RAN 1.5 MILLION. 
          AND SO WE WISH TO CONTINUE THAT SAME LEVEL OF PROGRAMING DURING THE SUMMER. 
          IT'S STILL A HALF $1 MILLION SHORT. 
          ONCE WE RESTORED $1 MILLION, THAT WAS OUT OF ESSER. 
          TECHNOLOGY REPLACEMENT. 
          THIS NUMBER CAN GO FROM ANYWHERE FROM 3 TO 4 MILLION TO AS MUCH AS 6 MILLION. 
          THIS IS DUE TO THE CYCLE THAT WE ARE ON TO REPLACE THE AGING TECHNOLOGY. 
          SAFETY AND SECURITY ENHANCEMENTS WITH THE CLIMATE OF OUR SCHOOL. 
          CULTURAL. IN THIS DAY AND TIME, I'M SURE WE'RE GETTING THE 1.9 MILLION. 
          BUT THERE'S TALK THAT THE STATE IS GOING TO INCREASE THE I THINK IT'S $9 PER STUDENT AND
HOPEFULLY THAT'S GOING TO INCREASE. 
          SO WE'LL BE ABLE TO DO MORE STUFF ON SAFETY AND SECURITY. 
          AND LAST BUT NOT LEAST, THIS IS A MAJOR PROBLEM THAT I'VE NOTICED IN THE DISTRICT. 
          [01:30:01]
BACK WHEN YOU ALL ESTABLISHED CAPITAL X CAPEX FUNDING, WE WERE TAKING MONEY OUT OF FUND
BALANCE EVERY YEAR, PUTTING IT IN CAPITAL X FOR CAPITAL PROJECTS. 
          IT GOT UP TO ABOUT 42 MILLION OVER THE TIME IT'S ALL GONE. 
          THERE NO MONEY FOR BASIC CAPITAL EXPENDITURES, EXCEPT WE HAVE $1 MILLION IN THE BUDGET
THAT'S RECURRING EVERY YEAR FOR SPECIAL PROJECTS. SO WE'VE GOT TO HAVE A DISCUSSION ON WHAT ARE WE GOING TO DO ABOUT CAPITAL
FUNDING IN BETWEEN BOND YEARS? BECAUSE RIGHT NOW THE MONEY THAT WAS PUT IN THE CAPITAL X IS GONE. 
          AND I WAS TOLD THAT THE PLAN WAS THAT WE WOULD TAKE ANY EXCESS MONEY EVERY YEAR. 
          INSTEAD OF PUTTING IT INTO FUND BALANCE FOR THE KNOW, IT WILL GO INTO FUND BALANCE FOR
CAPEX. 
          BUT AS YOU KNOW, OVER THE LAST FEW YEARS WE HAVEN'T HAD EXCESS FUNDING. 
          SO THOSE ARE THE MAJOR REQUIREMENTS, PRIORITY NEEDS THAT I SEE GOING FORWARD. 
          THERE'S A LOT OF MONEY THERE STILL. 
          WE'RE STILL AT THE VERY BEGINNING OF LOOKING AT THIS BUDGET. 
          SO I DID WANT TO SHOW YOU ALL A COUPLE OF SCENARIOS ABOUT WHAT WE THINK MIGHT HAPPEN. 
          NEXT SLIDE, PLEASE. 
          NEXT. SO WHAT'S CONSISTENT WITH THE SCENARIOS THAT I WILL SHOW YOU THAT WE WILL RUN ONE
WITH FLAT ENROLLMENT, ONE WITH A DECREASE OF 188 KIDS AND ONE WITH A DECREASE OF 300 KIDS. 
          WE WILL USE AN ADA OF 94%. 
          THE PROPERTY VALUES WHEN I RAN THIS ORIGINALLY, NOW IT WILL BE 10% AND STILL A FLAT. 
          I APOLOGIZE FOR THAT. 
          AND THEN WE USE A BASIC ALLOTMENT INCREASE OF $300, $500 AND $750. 
          NEXT SLIDE, PLEASE. 
          SO THE SCENARIOS, THE FIRST ROUND IS A $300 AT THE COLUMN. 
          ON THE FAR LEFT IS THE ADOPTED BUDGET FOR THE 22-23. 
          THE NEXT ONE WOULD BE THE FLAT ENROLLMENT DECREASE OF 188 KIDS AND A DECREASE OF 300 KIDS
WITH THE 94%. 
          ADA. AS YOU NOTICE THE CHANGES IN THE REVENUE, OUR ADOPTED BUDGET HAD 518,000, BUT WITH
THE NEW 7603 TAX RATE. 
          YOU SEE THEIR TAX COLLECTION PROJECTIONS AND THE ONLY MAJOR CHANGE BETWEEN IS THE CURRENT
YEAR TAX COLLECTION WILL CHANGE. OUR INVESTMENT INCOME IS GROWING. 
          WE ARE EXPECTING ABOUT 4 MILLION THIS YEAR OR SO WITH THE TAX, WITH THE INTEREST RATE AS
THEY ARE, WE'RE GOING TO TAKE THAT UP ABOVE WHAT THE INVESTMENT INCOME WAS IN THE ADOPTED BUDGET. 
          AND THEN THE OTHER NUMBER THAT FLUCTUATES IS THE STATE REVENUE. 
          SO AS YOU SEE THE THREE SCENARIOS, OUR REVENUE AT $300 IS WHAT WE'RE PROJECTING AT 543. 
          ROUGHLY FOR EACH OF THOSE SCENARIOS AT $300 INCREASE FOR THE BASIC ALLOTMENT. 
          MR COVINGTON, I HAVE A QUICK QUESTION. 
          YES. ON SLIDE. 
          UM, THREE. 
          YOU SAID THE STATE MAXIMUM COMPRESSED RATE ASSUMING WAS 0.7246. 
          BUT THEN ON THESE SLIDES YOU PUT THAT THE TAX RATE IS 7.6. 
          WE HAVE FIVE GOLDEN PENNIES. 
          SO WOULDN'T THAT TAKE IT TO 0.77? 003. LET ME SEE. 
          OKAY. I'M SORRY. 
          WE ALSO HAD A NUMBER OF 71 030, OKAY. 
          FROM THE STATE. 
          SO DEPENDING ON WHICH ONE ACTUALLY. 
          SO I BUILT IT ON THE WORST CASE. 
          IF IT'S AT 7103 AS THE MAXIMUM COMPRESSOR RATE. 
          OKAY. THANKS FOR THE CLARIFICATION. 
          THE FIVE PENNIES, IT GOES TO 7603. 
          OF THE EXPENDITURES. 
          PRETTY MUCH HELD CONSTANT AS TO WHAT WAS IN OUR ADOPTED BUDGET BECAUSE WE HAVEN'T REALLY
CHANGED ANYTHING AS OF YET. 
          BUT WE ARE MEETING WITH ALL DEPARTMENTS AND EVALUATING POSITIONS AND STAFFING AND ALL
SORTS OF THINGS TO SEE IF FOR EFFICIENCIES. 
          BUT NONE OF THAT HAS BEEN FINALIZED. 
          SO THOSE NUMBERS. 
          HASN'T CHANGED AFTER THE TWO OH 22-23 ADOPTED BUDGET AND THE ALLOCATION. 
          SO YOU SEE THE 445 ACROSS THE BOARD. 
          NOW I HAVE ADDED THINGS THAT I KNOW THAT WE NEED TO COVER, WHICH IS THE ESSER FUNDING,
THE HEALTH INSURANCE, THE PROPERTY FUEL, CTE AND INSTRUCTIONAL MATERIALS. 
          NOW THAT ONE COMES OFF, NOW THE LINE WHERE YOU SEE THE COMPENSATION INCREASE, THAT IS THE
30% OF THE INCREASE THAT THE LEGISLATURE SAYS MUST GO TO COMPENSATION. 
          [01:35:03]
SO AT $300, WITH 1% BEING 4 MILLION, WE WILL BE ABLE TO COVER A 2% INCREASE ACROSS THE
BOARD AT $300 THAT YOU WOULD HAVE TO PAY ON COMPENSATION. 
          AND SO AS YOU CAN SEE, OUR RECAPTURE NUMBERS ARE WILL GROW FROM THE 72 TO THE 84, 85 AND
85. 
          AND YOU SEE WHAT I TOLD EXPENSES. 
          NEXT SLIDE, PLEASE. 
          SO BASED ON WHAT WE HAVE NOW, WITHOUT HAVING ALL THE EXPENSES IN ESPECIALLY COMPENSATION. 
          WE GOT $10 MILLION IN THE HOLE. 
          AT 300. NEXT SLIDE, PLEASE. 
          SAME BASIC INFORMATION. 
          THE NUMBER CHANGES BASED ON YOUR STATE AND YOUR RECAPTURE AND ALL THOSE THINGS. NONE OF THE OTHER NUMBERS CHANGE. 
          SO IF YOU IF WE GET A $500 INCREASE IN THE BASIC ALLOTMENT. 
          YOU CAN GO TO THE NEXT SLIDE AND THE NEXT SLIDE. 
          RIGHT THERE. OH, I DO NEED TO POINT SOMETHING OUT. 
          IF YOU BACK UP ONE SLIDE, PLEASE. 
          I MADE AN ERROR IN THE RECAPTURE ON YOUR ADOPTED BUDGET. 
          THAT NUMBER SHOULD HAVE STAYED THE SAME AT THE 72. 
          564. SO THAT COLUMN IS OFF AND I WILL HAVE IT CORRECTED WHEN WE PULL IT DOWN AND REPOST
IT, BECAUSE THAT NUMBER SHOULDN'T CHANGE BECAUSE THE ADOPTED BUDGET DIDN'T CHANGE. 
          BUT AT THE $500. 
          NEXT SLIDE, PLEASE. 
          AT THE $500 INCREASE AND WITH THE SAME SCENARIO INPUT, YOU SEE THAT WE WILL BE AT 2
MILLION, 4,000,004 MILLION INCHES THE HOLE IF WE GET $500 INCREASE TO THE BASIC ALLOTMENT. 
          IF YOU LOOK AT CAN YOU HELP ME UNDERSTAND ON SLIDE? OH, THAT ONE DIDN'T HAVE A SLIDE 11. 
          IF THE BASIC ALLOTMENT INCREASED BY $500. 
          WEIR. IF YOU LOOK IN THAT FIRST COLUMN, THE PRELIMINARY BUDGET, IT'S 543 421. 
          BUT IF YOU GO BACK TO SLIDE SEVEN, WHEN THE BASIC ALLOTMENT ONLY WENT UP BY 300, WE
ACTUALLY GET MORE MONEY IN OUR REVENUE AT 543 437. 
          HOW DO WE HAVE LESS REVENUE IF THE BASIC ALLOTMENT GOES FROM 300 TO 500? DOES THAT MAKE SENSE? AM I ASKING MY QUESTION CLEAR? OKAY. IF YOU LOOK AT SLIDE SEVEN, WHEN HE WAS ESTIMATING THE BASIC ALLOTMENT GOES UP BY $300. 
          THEN IN THAT FIRST COLUMN, OUR REVENUE TOTAL REVENUE IS 543 437 BUT THEN WHEN THE BASIC
ALLOTMENT GOES UP BY $500, WE'RE AT 543 421 SO IT'S ACTUALLY $600,000 LESS IN OUR REVENUES. 
          THERE. LET'S SEE, 21 902. 
          YOUR STATE REVENUE NUMBER CHANGES. 
          I'M JUST LOOKING AT THE BOTTOM LINE OF TOTAL REVENUE ON SLIDE 11 VERSUS SLIDE SEVEN. 
          BUT LOOK AT THE STATE REVENUE LINE, RIGHT? THE STATE YOUR STATE REVENUE NUMBER GOES DOWN. 
          OH, OKAY. SO REALLY, EVEN IF THE BASIC ALLOTMENT GOES UP, WE DON'T GET ANY MORE MONEY. 
          BECAUSE YOU'LL RECAPTURE. 
          RECAPTURE WILL GO DOWN. YOU DON'T GET ANY MORE FROM THE STATE. 
          OKAY. NEXT SLIDE, PLEASE. 
          ACTUALLY, HERE YOU SEE THE SCENARIOS AT THE 750. 
          $750 INCREASE. 
          AND THE ONLY CHANGE AGAIN, YOU WILL SEE THAT THE STATE REVENUE NUMBER CHANGES. 
          SO THAT'S WHY THE BOTTOM TOTAL REVENUES CHANGE. 
          AND OUR EXPENSES STAYS THE SAME. 
          NEXT SLIDE, PLEASE. 
          NEXT SLIDE. 
          SO AT $750 INCREASE IS WHEN WE GET TO A POSITIVE 6 MILLION, 5 MILLION AND 4 MILLION. 
          BUT AS I SAID BEFORE, THAT STILL HAS A LOT OF EXPENDITURE THAT'S NOT IN THIS BUDGET YET. 
          SO EVEN AT $750 INCREASE, THERE ARE LOTS OF FUNDS THAT WE'RE GOING TO HAVE TO FIND WITHIN
OUR BUDGET TO HELP SUPPLEMENT EITHER OUR COMPENSATION INCREASES, THE ESSER STUFF COMING OVER,
ALL OF THAT. 
          SO WE HAVE A LOT OF WORK TO DO. 
          SO I JUST WANT TO BRING YOU GUYS UP TO SPEED ON WHAT WE WERE WORKING ON AND NOW I'LL
ENTERTAIN ANY QUESTIONS. 
          DO YOU HAVE ANY GOOD NEWS? 
          [01:40:01]
ANY GOOD NEWS? UH, NO. 
          WELL, THE MITA THING WAS GOOD NEWS. 
          I LIKE THAT THE TEAM CAME AND WE FOUND A WAY TO NOT HAVE TO PUT $1 MILLION DOLLARS IN THE
BUDGET. 
          BUTTONS AREN'T REALLY WORKING, SO. 
          TRUSTEE BONE. SO AT THE BEGINNING THERE WAS A COMMENT MADE THAT MAY HAVE IMPLIED ARE WE
TALKING ABOUT CUTTING STAFF? IS THAT I MEAN, I KNOW IT'S REALLY EARLY, BUT I THINK THE BOARD KIND OF NEEDS TO
UNDERSTAND IF WE'RE TALKING ABOUT ANY KIND OF CUTTING STAFF. 
          THAT WAS AN IMPLICATION THAT YOU KIND OF SAID THAT WE HAD 80 POSITIONS AND THEN MAYBE WE
DIDN'T NEED ALL OF THEM. 
          IS THAT IMPLYING. 
          WELL, THAT WAS THE ADDITIONAL POSITIONS THAT WE HAD HIRED WITH THE ESSER FUNDING AND THE
TEAM STAFF KNEW THAT THOSE POSITIONS WOULD GO AWAY AT THE END OF ESSER. 
          IT'S NOT LIKE ANY OTHER GRANT FUNDED POSITION. 
          WHEN THE GRANT ENDS, THE POSITION GOES AWAY. 
          SO THESE WERE NON PERMANENT POSITIONS. 
          THEY WERE ADD ON POSITIONS DUE TO ADDITIONAL FUNDING. 
          OKAY. EDDIE HOPPED OVER, SO. 
          YES, SIR. THANK YOU, DR. 
          AZAIEZ. GOOD EVENING, EVERYBODY. 
          SO THE POSITIONS THAT WERE ADDED, THE 80 POSITIONS ARE TYPICALLY TEACHING POSITIONS AND
THINGS THAT WE CAN ABSORB THROUGH ATTRITION. 
          SO, YOU KNOW, WE TURN OVER 12 TO 15% OF OUR TEACHERS EVERY YEAR. 
          SO WE SHOULD BE ABLE TO ABSORB THOSE POSITIONS IN OUR REGULAR STAFFING. 
          RIGHT. I WASN'T SAYING WE WERE RIFFING ANY PEOPLE. 
          WE WERE CUTTING POSITIONS. 
          YEAH, I THINK EITHER ONE I THINK THE BOARD WOULD BE INTERESTED IN JUST UNDERSTANDING THE
IMPLICATIONS OF LARGER CLASS SIZE. 
          WHAT DOES THAT MEAN? SO YEAH, I THINK THAT KIND OF PERKED UP MY EARS. 
          AND SO PERSONALLY, AND THIS IS JUST FEEDBACK TO THE ADMINISTRATION WHEN WE GET THESE KIND
OF BUDGET, I WOULD ACTUALLY LIKE TO SEE SOME BULLETS ON THAT TOO. 
          LIKE WHAT ARE SOME IMPLICATIONS? BECAUSE THESE TIE IN DIRECTLY TO OUR BOARD GOALS. 
          YOU KNOW, THEY DON'T HAVE TO BE IN REAL DEPTH, BUT JUST MAYBE SOME IMPLICATIONS THAT ARE
TIED INTO THIS. 
          SO THAT'S THE ONLY QUESTION I HAVE FOR RIGHT NOW. 
          THANK YOU. I JUST WANT TO JUST TO CLARIFY, WE WON'T BE WE'RE NOT CUTTING ANY TEACHER OR
ANYTHING LIKE THAT. 
          THE POSITION MAY BE REMOVED, IF YOU WILL, THROUGH ATTRITION. 
          AND AGAIN, AT THIS POINT, WE'RE NOT EVEN READY TO SHARE THAT BECAUSE WE'RE STILL HAVING
THIS CONVERSATION AND LOOKING AT DATA, LOOKING AT DIFFERENT THINGS. 
          BUT WE'RE NOT GOING TO RIFF ANYBODY JUST TO MAKE SURE WE ARE NOT RIFFING ANYBODY. 
          IT'S JUST SOMETIMES IN SOME CASES WE MAY HAVE TO IF THERE'S A VACANCY, WE MAY WE MAY
CLOSE THAT POSITION, IN OTHER WORDS, BUT NOT NECESSARILY LET ANYBODY GO. DOES THAT MAKE SENSE? I DON'T KNOW IF THAT MAKES SENSE. IT DOES. 
          I GUESS THE FOLLOWING QUESTION I HAVE THEN, IN THE SPIRIT OF THE BUDGET IS SOME OF THE
EMAILS THAT WE'RE STARTING TO SEE ABOUT SCHOOLS, LIKE CERTAIN PROGRAMS GETTING MOVED TO CERTAIN SCHOOLS. 
          IS THAT BEING DRIVEN BECAUSE OF THE BUDGET HERE, THE PROPOSED BUDGET? BECAUSE THOSE ARE ALL CHANGES FOR NEXT YEAR? SO THERE ARE SO AND I THINK THE EMAIL YOU RECEIVED, I DON'T I'M NOT SURE IF IT'S MAYBE
RELATED TO SPECIAL ED. 
          I THINK WAS IT ESL CLASSES, DUAL LANGUAGE CLASSES WERE BEING MOVED AND THEN THE OTHER ONE
WAS SCL CLASSES. 
          YEAH. YEAH. 
          SLC SORRY, DYSLEXIC. 
          YEAH. SO IN SOME CASES WHAT AND I THINK THIS HAS BEEN AND I THINK IT'S PRACTICE NOT JUST
IN ROUND ROCK ISD IS LOOKING AT THE NUMBER OF KIDS EVERY YEAR, LOOKING AT THE RESOURCES AT THE CAMPUS SPACE, IT COULD BE AN ISSUE SOMETIMES AND ALSO MAKING SURE THAT
MAKING SURE THAT WE'RE ALSO PROGRAMS ARE KIND OF SPREAD LIKE NOT HAVE ALL THESE PROGRAMS PUT INTO ONE CAMPUS ONLY BECAUSE THAT'S ALSO ADDS MORE
LIKE ADDS MORE CHALLENGES SOMETIMES TO MAKE SURE THAT IT'S MORE THINGS TO DO FOR THE ADMINISTRATION, FOR THE COUNSELORS, FOR THE TEACHERS
SOMETIMES. 
          SO WE'RE TRYING TO BE FAIR A LITTLE BIT ACROSS THE BOARD. 
          SO ARE YOU SAYING IT'S AN ADMINISTRATIVE DECISION AND NOT TIED TO THE BUDGET? I GUESS THAT'S WHAT I WAS JUST ASKING. 
          YEAH. I WOULD JUST I WOULD PERSONALLY, IT'S VERY HELPFUL FOR ME TO UNDERSTAND WHEN
DECISIONS ARE BEING MADE INSIDE THE ADMINISTRATION SINCE WE'RE A GOVERNANCE AND OVERSIGHT, IF WHAT THOSE ARE DRIVEN BY IF IT'S DRIVEN BY AN ADMINISTRATIVE DECISION, THAT'S GREAT. 
          BUT IF IT'S DRIVEN BY A BUDGET DECISION, THEN THAT'S ALSO SOMETHING. 
          OF COURSE. NO, I GOT IT DR. 
          BONE. AND I THINK OUR PLAN IS TO SHARE WITH YOU SOME INFORMATION TOMORROW AT THE BOARD
MEETING AT THE BOARD UPDATE I'M SORRY ABOUT THOSE COUPLE OF EMAILS. 
          SO WE AS YOU KNOW, WE TRY TO GATHER INFORMATION AND THEN SHARE WITH THE ENTIRE BOARD. 
          SO WE'LL BE SENDING SOME UPDATES TO YOU GUYS ABOUT THAT TOMORROW. 
          THANK YOU. TRUSTEE MARKUM. 
          YEAH, I JUST HAD A QUESTION ABOUT THE ESSER FUNDING CLIFF, BECAUSE THAT'S A FAIRLY LARGE
NUMBER THAT WE'RE IN THE HOLE. 
          SO IS IT? TELL ME IF I'M WRONG, BUT MY UNDERSTANDING IS A LOT OF THAT FUNDING, THAT GRANT FUNDING
WAS USED TOWARD INTERVENTION POSITIONS TO SATISFY HB 4545 AND SOME OF THE OTHER 
          [01:45:07]
COVID LEARNING LOSS ISSUES THAT THAT WE'VE HAD? SO HOW DOES THAT PLAY INTO US BEING ABLE TO CONTINUE THOSE SERVICES WITH SOME OF THESE
POSITIONS HAVING TO GO AWAY AND BE ABSORBED. AND IS IT? I THINK THAT'S MY QUESTION. 
          YEAH. SO, I MEAN, I CAN SOMETIMES TALK ABOUT IT'S HARD FOR ME, I GUESS, TO EXPLAIN IT. 
          BUT LIKE OUR BUDGET, AS YOU KNOW THIS AND I KEEP SAYING THIS ALL THE TIME LIKE OUR
TAXPAYERS ARE DOING, GOING ABOVE AND BEYOND DOING THEIR PART. 
          RIGHT? THE PROBLEM IS, WITH ALL THESE MILLIONS OF DOLLARS WE HAVE TO SEND BACK TO THE
STATE IS REALLY CAUSING FOR OUR DISTRICT WHEN IT COMES TO OUR FINANCIAL CAUSES LIKE A HUGE PROBLEM. 
          RIGHT. SO IT'S NOT LIKE WE'RE NOT COLLECTING WE'RE COLLECTING A LOT OF MONEY. 
          HONESTLY. WE SEND IT A LOT TO THE STATE. 
          AND I THINK THAT'S ANOTHER CONVERSATION AROUND RECAPTURE AND ALL THAT GOOD STUFF. 
          BUT FOR US, ALTHOUGH WE COLLECTED MORE MONEY, I WANT TO EXPLAIN TO OUR COMMUNITY AND OUR
STAFF IS REALLY LIKE WE ONLY CAN KEEP THE SAME AMOUNT OF MONEY EVERY YEAR. SO IN OTHER WORDS, IF WE WANT TO WE IT'S KIND OF LIKE, LOOK, THINK OF A
BUDGET LIKE MORE LIKE A CAKE. 
          YOU CAN SLICE IT INTO LIKE TEN SLICES AND THEN YOU CAN HAVE TEN EQUAL SLICES OR YOU CAN DO
I WANT TO DO EIGHT SLICES, THEN YOU CAN DO IT BIGGER SLICES, RIGHT? BUT WE CANNOT MAKE THE CAKE ANY BIGGER. 
          OUR BUDGET IS OUR BUDGET. 
          SO IF WE SAY WE WANT TO HAVE KEEP THESE STAFF MEMBERS, THEN MEANING THAT THE COMPENSATION
AND THE PAY, WE WON'T BE ABLE TO INCREASE THE COMPENSATION TO A LEVEL WHERE WE WANTED TO SEE HAPPENING FOR OUR TEACHERS AND STAFF. 
          OR WE CAN SAY MAYBE WE CAN FIGURE OUT A WAY TO WORK THINGS OUT WHERE MAYBE WE REDUCE THE
NUMBER OF STAFF TO AGAIN, WITHOUT REALLY JEOPARDIZING, HURTING KIDS, FIGURE OUT A WAY TO DO THAT, BUT THEN WE CAN INCREASE COMPENSATION. 
          DOES THAT MAKE SENSE? SO IF WE DO BOTH AND WE COULD DO BOTH, THEN WE'RE NOT GOING TO SEE
A GOOD INCREASE IN OUR COMPENSATION FOR OUR TEACHERS AND STAFF? I DON'T KNOW. I DON'T KNOW IF THAT HELPS YOUR QUESTION. 
          YEAH. TRUSTEE HARRISON. 
          JUST A KIND OF A QUICK QUESTION. 
          I THINK THAT THIS UNDERSCORES THE IMPORTANCE OF LEGISLATIVE ADVOCACY, RIGHT? AND SO. 
          UM, DENNIS, JUST OVERALL, HOW WOULD OUR BUDGET BE IMPACTED IF WE WERE FUNDED ON
ENROLLMENT AND NOT ADA? AND WOULD THAT HAVE A SUPER SIGNIFICANT IMPACT TO THIS NEXT YEAR'S BUDGET? YEAH, BECAUSE RIGHT NOW LET'S SAY WE'RE FUNDED ON ENROLLMENT. 
          IF WE WERE FUNDED ON ENROLLMENT THIS YEAR, WE WOULD HAVE HAD 40, I THINK 46,000 KIDS. 
          BUT WE'RE BEING FUNDED ON ADA AT 94%. 
          THAT NUMBER DROPS TO LIKE 43,000 AT 6160 PER CHILD. 
          DO WE THINK AND THIS IS JUST LIKE A REQUEST, SO IT WOULD TAKE AGREEMENT LIKE SO I'M
HEARING THAT WE NEED TO BE ADVOCATING FOR OBVIOUSLY MAXIMUM INCREASE TO BASIC ALLOTMENT, BUT ALSO FUNDING ON ENROLLMENT AND NOT ATTENDANCE. 
          COULD THAT BE A CONTINGENCY THAT'S RUN BECAUSE YOU HAVE THE CONTINGENCY FOR THE BASIC
ALLOTMENT, BUT CAN ONE COLUMN BE ADDED FOR IF IT'S, YOU KNOW, SO THAT WHEN WE'RE ADVOCATING WE HAVE THAT? YES, THANK YOU. I COULD DO THAT. 
          AND DO I HAVE AGREEMENT BECAUSE I'M NOT DIRECTING STAFF? NO, NO. IT'S JUST WE ARE ON THE SAME WE'RE ON THE SAME TEAM. 
          WE DEFINITELY WANT TO SEE OBVIOUSLY, INCREASE IN OUR BASIC ALLOCATION. 
          BUT ALSO LIKE YOU SAID, IF WE CAN FIGURE OUT FROM AND I THINK SOME OF YOU VISITED AND SAT
WITH SOME OF OUR [INAUDIBLE] AND SOME OF THEM WILL TELL YOU WE ARE LOOKING AT IT. 
          I DON'T KNOW IF WE GO ALL THE WAY TO IT, MAYBE COME UP WITH SOMETHING HALFWAY. 
          SO INSTEAD OF FUNDING TO 100%, MAYBE FUNDING TO 98% OR WHICH IS STILL MAKES A HUGE
DIFFERENCE. 
          I MEAN, IT REALLY WILL MAKE A HUGE I DON'T KNOW IF YOU KNOW THIS, BUT ACTUALLY THE
ADMINISTRATORS FOUND THE STATE TEA AT 95% ACROSS THE STATE. SO THAT'S WHY THEY END UP WITH A LOT OF EXTRA MONEY BECAUSE, I MEAN, WE ARE WE
HAVE PROBABLY ONE OF THE HIGHEST ADA ATTENDANCE RATES IN THE STATE. AND WE ARE AT 94 THIS YEAR. 
          IT WAS BEEN REALLY HARD THIS YEAR, HARDER THAN EVER, 94%. 
          SO I SEE IN SCHOOL DISTRICT WITH 88, 89, 87. 
          AND NO SERIOUSLY AND SO THEY'RE NOT EVEN GETTING CLOSE TO 95. 
          SO WHAT HAPPENED WHAT THE MEANING IS THE STATE IS FUNDED FOR 95% AND THE STATE IS NOT
EVEN GETTING EVEN TO LIKE 92, 93%. 
          SO THE STATE IS KEEPING ALL THIS EXTRA FUNDING AT THE END OF THE, YOU KNOW, THE CYCLE, IF
YOU WILL. 
          YEAH. THANK YOU. 
          [01:50:02]
I THINK WE HAVE WORK TO DO. I MEAN, THIS OBVIOUSLY IS NOT A GREAT FIRST SNAPSHOT, BUT WE
HAVE TIME TO WORK. 
          WE HAVE TIME TO ADVOCATE, AND I HOPE OUR COMMUNITY HEARS THAT AND WANTS TO DO THAT RIGHT
ALONGSIDE WITH US. 
          BUT I JUST DO THINK THAT THAT CASE WOULD BE REALLY POWERFUL. 
          WE'RE ACTUALLY NOT A SUPER TOP HEAVY DISTRICT. 
          WE RUN FAIRLY LEAN, AND THAT'S KIND OF LIKE A THING FOR THE MIDDLE CLASS DISTRICTS THAT
WE'RE STRUGGLING WITH THAT WE COULD USE SOME HELP WITH. 
          THANK YOU FOR THIS. 
          YES. TRUSTEE WESTON. 
          SO I'M ACTUALLY GOING TO START ON ADA. 
          IS 94% NORMAL FOR US FOR ROUND ROCK ISD. 
          WE WERE RUNNING 95, BUT THIS YEAR IT'S 94. 
          AND YOU JUST SAID, DR. AZAIEZ, THAT THIS YEAR'S BEEN REALLY HARD. 
          WHY WOULD THIS YEAR BE DIFFERENT? THIS YEAR'S BEEN HARD, I THINK, AND NOW THE SECOND SEMESTER IS SOMEHOW A LITTLE BIT
BETTER. 
          BUT I DON'T KNOW IF YOU REMEMBER, WE HAD A LOT OF KIDS WHO WERE GETTING ALL THIS
RESPIRATORY SICKNESS. 
          THEY WERE OUT FOR SEVERAL DAYS IN A ROW AND SOMETIMES THEY GET SICK, THEY COME BACK AND
THEN THEY GET AGAIN SICK. 
          SO WE'VE SEEN A LOT MORE STUDENTS WHO ACTUALLY STAY IN A HOME. 
          AND AGAIN, I KNOW WE I MEAN, I KNOW, RIGHT. 
          AND SO THERE'S BEEN AND I WANT YOU TO KNOW WE HAVE ONE OF IF NOT THE HIGHEST, ONE OF THE
HIGHEST IN THE STATE, BECAUSE I GO TO MEETING WITH OTHER SUPERINTENDENTS FROM ACROSS THE STATE. AS I SAID, I WASN'T JOKING. 
          AND REALLY MANY OF THEM ARE IN THE 80S, YOU DON'T EVEN GET TO 90%. 
          I'VE ACTUALLY SEEN THAT DATA. 
          BUT I'M JUST WONDERING FOR ROUND ROCK ISD SO YOU'RE SAYING WE HAD MORE ILLNESS AMONG OUR
STUDENTS THIS FALL 22 SEMESTER? THIS YES, WE GOT EVEN AS EARLY AS ALSO AS LATE AS JANUARY. 
          WE WERE SEEING STUDENTS BEING SICK AND OUT FOR SEVERAL DAYS IN A ROW. 
          OKAY. I THINK THAT'S BEEN PRETTY CONSISTENT NATIONWIDE WITH AN UPTICK IN RESPIRATORY
ILLNESSES, ESPECIALLY IN CHILDREN THIS YEAR, NOT EVEN AS MUCH SO MUCH OF COVID, BUT MORE OF THE RSV, THE FLU AND EVEN JUST COMMON COLDS AND STUFF. 
          IT'S BEEN PRETTY COMMON. 
          I DON'T KNOW WHY THIS YEAR HAS BEEN WORSE, BUT IT'S BEEN A NATIONWIDE ISSUE. 
          AND I WILL SHARE THAT. THERE IS THERE'S A BARRIER, QUITE HONESTLY, THAT PEOPLE ARE
CONCERNED ABOUT WITH GOING TO ENROLLMENT. 
          I MEAN, THERE'S IT'S. 
          IT MAKES IT EASIER FOR FRAUD AND THINGS LIKE THAT. 
          AND SO, YOU KNOW, I'M NOT GOING TO GO DEEP INTO THAT. 
          BUT THERE'S NO RIGHT ANSWERS IN LIFE. 
          THERE'S ONLY TRADE OFFS. 
          AND SO I JUST I DON'T KNOW HOW OPTIMISTIC BASED ON WHAT I'M HEARING, I DON'T KNOW HOW
OPTIMISTIC I AM ABOUT THAT. 
          BUT THAT'S INTERESTING. YOU'RE SAYING YOU'RE HEARING THAT THERE MIGHT BE SOME SORT OF
MEDIUM MIDDLE GROUND TO NOT SWITCH COMPLETELY TO ENROLLMENT. 
          YEAH. THANK YOU. 
          YEAH. I'M HEARING LIKE THERE IS POSSIBLE MAYBE THEY COME UP WITH LIKE A MIDDLE GROUND. 
          WELL, BECAUSE LIKE SO IF THEY GO LET'S SAY HYPOTHETICALLY, THE STATE GOES FOR 95%, I
THINK THAT'D BE GREAT. 
          BUT FOR US IT WOULD BENEFIT US, I MEAN, BY 1% VERSUS MAYBE OTHER SCHOOL DISTRICTS WHO ARE
IN THE 80S, IT WOULD BENEFIT THEM EVEN MORE. 
          SO THAT'S ALSO THEY'RE TRYING TO BE FAIR, I GUESS, ACROSS THE BOARD, THE ADMINISTRATORS
AS THEY'RE THINKING ABOUT WHAT'S THE BEST WAY OF DOING THIS. 
          BUT THERE IS THERE IS A TALK ABOUT, I THINK THE FEAR AND AGAIN, I KNOW MANY OF YOU HAVE
VISITED WITH A LOT OF OUR LEGISLATORS, THE FEAR IS LIKE, OKAY, WE CAN FUND WE CAN INCREASE ALL THIS FOR THE NEXT COUPLE OF YEARS. 
          BUT WHAT IF, FOR WHATEVER REASON, WE GET A RECESSION AGAIN? SO THEY'RE TRYING TO BE VERY LIKE KEEPING THAT IN MIND, I GUESS, IN CASE THINGS TURN THE
WRONG WAY. 
          RIGHT? SO THAT'S WHY THEY DON'T WANT TO GO ALL IN THERE IS MAYBE, BUT AGAIN, THERE IS
ABOUT $33 BILLION DOLLARS AND AS I SAID, RECAPTURE A LOAN. 
          I DON'T KNOW IF YOU KNOW THIS RECAPTURE A LOAN IS STATE IS GETTING ABOUT $4 BILLION
DOLLARS A YEAR THAT FROM DISTRICT SCHOOL DISTRICT LIKE US HAS NOTHING TO DO WITH WITH SALES TAXES HAS TO DO WITH ANYTHING. 
          IT'S JUST US GIVING THEM OUR OWN TAXPAYERS MONEY BACK TO THE STATE. 
          $4 BILLION DOLLARS WE'RE GIVING BACK. 
          RIGHT THAT'S A LOT OF MONEY. 
          SO SINCE THE SESSION DOESN'T END UNTIL THE END OF MAY, I DON'T KNOW HOW QUICK THESE
PEOPLE ARE GOING TO MOVE ON, YOU KNOW, MAKING SOME OF THESE DECISIONS. 
          BUT OBVIOUSLY, WE HAVE TO DECIDE BY THE END OF JUNE. 
          IT'S JUNE 30TH. IT'S NOT JUNE 14TH OR JUNE 16TH. 
          RIGHT. THE DEADLINE IS JUNE 30TH. 
          JUNE 30TH. YEAH. THAT'S WHAT I THOUGHT. 
          SOMETIMES THERE'S BEEN SOME CONFUSION ABOUT THAT. 
          ALSO, I DON'T KNOW THAT I'VE EVER SEEN AN ASSUMPTION WITH REGARD TO OUR STUDENT
ENROLLMENT BEING PROPOSED TO THE BOARD OF IN A BEST CASE SCENARIO, REMAINING FLAT ON ENROLLMENT. 
          I MEAN, AM I JUST IMAGINING THAT IT SEEMS LIKE THIS MIGHT BE MY FIRST BUDGET MEETING? NOT ONLY IS A TRUSTEE, BUT IN THE YEARS THAT I WAS ATTENDING BOARD MEETINGS THAT WERE NOT
PROPOSING EVEN A SMALL INCREASE. 
          DID I DID I HEAR THAT RIGHT? CORRECT. WHAT DO YOU ATTRIBUTE THAT TO? 
          [01:55:02]
THE ENROLLMENT THAT WE PROJECTED FOR THIS CURRENT YEAR WAS LOWER THAN WHAT WE PROJECTED,
WHICH MAY MEANS OUR ADA WAS LOWER. 
          AND SO OUR DEMOGRAPHER LAST YEAR HAD SAID 800 KIDS GROWTH. 
          I REDUCED IT DOWN TO FIVE AND WE DIDN'T MAKE THAT. 
          SO I THINK A FLAT IS CONSERVATIVE. 
          AND A REDUCTION IS EVEN MORE CONSERVATIVE. 
          DO WE HOPE OUR ENROLLMENT GO UP? YES, WE'RE TRYING TO PUT SOME THINGS IN PLACE TO TRY TO INCREASE OUR POPULATION TO GROW. 
          YES. BUT I THINK FOR BUDGETING, WE NEED TO BE CONSERVATIVE. 
          AND AS THE TWO OF YOU AND I LEARNED ON ACTIVE DUTY, HOPE IS NOT A STRATEGY. 
          THERE YOU GO. THE LAST THING I JUST WANTED TO ADD, I WAS DOWNTOWN FOR THREE FULL DAYS
LAST WEEK. 
          YOU MENTIONED THAT THEY'RE PROPOSING RAISING THE HOMESTEAD EXEMPTION FROM 40 TO 100. 
          THE SENATE IS ACTUALLY PROPOSING GOING TO 70, NOT 100. 
          100 IS WHERE THEY WANT TO GET TO EVENTUALLY. 
          BUT FOR THIS SESSION, IT'S 70. 
          THE HOUSE HAS TAKEN A DIFFERENT TACK. 
          THEY WANT TO REDUCE THE 10% APPRAISAL INCREASE CAP. 
          THEY WANT TO REDUCE THAT TO 5%. 
          SO I DON'T KNOW HOW MUCH HEAD BUTTING THERE'S GOING TO BE OR WHICH WAY THAT SIDE OF THE
COIN THAT'S GOING TO LAND ON. 
          MY GUESS IS IT'S WE'RE NOT GOING TO KNOW REALLY MUCH UNTIL MAY. 
          SO BUT ANYWAYS, THANK YOU FOR THE PRESENTATION. 
          SO Y'ALL GOING TO HAVE TO REMAIN FLEXIBLE. 
          WE MAY HAVE TO DO SOMETHING REAL QUICK AT THE END OF JUNE TO TRY TO GET THIS APPROVED. 
          JUST WANT TO ALSO GIVE OUR BOARD MEMBERS MORE DETAIL. 
          I KNOW TRUSTEE WESTON WAS TALKING ABOUT ENROLLMENT, SO OBVIOUSLY ALWAYS THE FIRST THING
WE USE IS OUR DEMOGRAPHERS PROJECTION, RIGHT? BECAUSE OBVIOUSLY THEY LOOK AT THE NEW DEVELOPMENTS AND THEY LOOK AT BIRTH RATES,
ETCETERA. 
          SO THEY TRY TO DETERMINE THAT. 
          AND YOU KNOW, THAT'S WHAT THEY'RE TELLING US THAT PRETTY MUCH WE ARE STAYING FLAT, RIGHT? SO WE'RE NOT SEEING. 
          BUT MORE THAN THAT IS ALSO, I WANT YOU ALL TO KNOW THAT WE ARE THANKS TO YOU, WE APPROVE
THAT OUT OF DISTRICT TRANSFER LAST YEAR AND WE DID IT FOR ONLY ABOUT TEN DAYS. WE DID IT KIND OF LATE. 
          SO WE'RE GOING TO BE SHARING WITH YOU OUR PLAN ALSO FOR THAT, BUT ALSO OUR KIND OF
MARKETING PLAN. 
          HOW CAN WE TRY TO RECRUIT STUDENTS BACK? SO WE'RE GOING TO GO PRETTY MUCH ALL IN TO MAKE SURE THAT WE CAPTURE OUR STUDENTS BACK OR
EVEN STUDENTS WHO MAY BE FROM OTHER SCHOOL DISTRICTS WHO MAYBE WANT TO ATTEND CHARTER SCHOOLS OR OTHER PLACES. 
          AND WE CAN, IF WE HAVE ROOMS FOR THEM, OBVIOUSLY, RIGHT, THEN WE CAN BRING THEM TO OUR
DISTRICT. 
          AND THAT ALSO WILL OBVIOUSLY HELP US ALSO EVEN MORE FUNDS. 
          WELL, I'M GLAD YOU MENTIONED THE DEMOGRAPHER AND YOU ALSO MENTIONED THE DEMOGRAPHER, MR. COVINGTON. ON OUR SCHOOL DISTRICT WEBSITE, WE ACTUALLY PUBLISH QUARTERLY DEMOGRAPHER
REPORTS. 
          AND I WOULD ENCOURAGE IF THE BOARD MEMBERS AREN'T ALREADY LOOKING AT IT, IF THE PUBLIC'S
NOT LOOKING AT THEM, THESE ARE DATA RICH DOCUMENTS. 
          SO WE PAY THIS FIRM TO THIS DEMOGRAPHER TO CREATE THESE LENGTHY REPORTS AND THERE'S GREAT
DATA AND THE DEMOGRAPHER HAS ALL THE DATA. 
          THE DEMOGRAPHER KNOWS WHAT THE NAME OF THE CHARTER SCHOOL IS AND WHERE IT'S GOING AND THE
ROUND ROCK ISD FOOTPRINT AND HOW MANY STUDENTS ARE PROJECTED TO GO THERE. 
          SO IT'S THERE'S A LOT OF INFORMATION IN THERE. 
          SO THOSE REPORTS ARE TYPICALLY PRETTY RELIABLE BECAUSE IT USED TO BE AN INDIVIDUAL. 
          I THINK NOW HE SOLD IT TO A FIRM THAT DOES IT NOW. 
          BUT THOSE ARE DATA RICH DOCUMENTS THAT INFORM THE PROJECTIONS HERE. 
          THANK YOU. I DON'T HAVE ANY OTHER LIGHTS ON. 
          TRUSTEE BONE. YEAH, I JUST WANTED TO MAKE A COMMENT. 
          THE REASON I SIT ON THIS DAIS IS FOR ONE REASON ONLY, AND THAT'S CHILDREN'S EDUCATION,
PERIOD. 
          THE BUDGET IS A MECHANISM THAT WE USE TO EDUCATE CHILDREN. 
          THAT'S MY PHILOSOPHY AND THAT'S WHY I SIT HERE. 
          I JUST WANT TO SAY THAT BECAUSE WHEN I HEAR 94% ATTENDANCE RATE AND I UNDERSTAND THAT
SOME OF THAT IS SICKNESS, BUT I ALSO UNDERSTAND THAT, YOU KNOW, PEOPLE MIGHT BE DOING OTHER THINGS OR MAYBE THERE'S ANOTHER THERE COULD BE OTHER REASONS, RIGHT? WE CAN'T JUST SAY THAT UNLESS YOU HAVE DATA TO PROVE IT, WHICH I WOULD LOVE TO SEE. 
          AND IF KIDS AREN'T SITTING IN SEATS, YOU KNOW, I'M A PROFESSOR. 
          I SEE THIS. IF STUDENTS MISS A CLASS OF MINE, THEY'RE BEHIND. 
          SO TO EDUCATE OUR STUDENTS, THEY NEED TO BE SITTING IN THE SEATS. 
          AND SO WHILE WE TALK ABOUT THE BUDGET AND WE PASS OVER NUMBERS LIKE 94%, I DO UNDERSTAND
THERE IS A BUSINESS SIDE AND WE NEED MONEY. 
          BUT I ALSO UNDERSTAND THAT THIS HAS TO BE A TWO PRONG APPROACH AND WE NEED THOSE STUDENTS
BECAUSE THESE ARE THINGS WE CONTROL, BY THE WAY, SO WE CAN SIT UP HERE AND COMPLAIN AS A DAIS AND WE CAN GO DOWN TO THE CAPITOL. 
          BUT THERE ARE THINGS THAT WE CAN CONTROL THAT WE KNOW WE CAN CONTROL. 
          ONE OF THEM IS ADA. 
          YOU KNOW, I MEAN, IF STUDENTS ARE GETTING SICK, I MEAN, YOU KNOW, MAYBE THERE'S THINGS
THAT WE CAN'T OR MAYBE THERE ARE THINGS WE CAN DO. 
          [02:00:05]
MAYBE THERE'S MORE CLEANING. 
          I DON'T KNOW. WE CAN LOOK INTO THOSE THINGS, BUT MAYBE WE CAN ALSO UNDERSTAND REALLY WHY
THEY'RE NOT IN THOSE SEATS EVERY DAY AND MAKE SURE THAT THOSE KIDS ARE IN THEIR SEATS SO THEY'RE LEARNING. 
          AND THEN ENROLLMENT. 
          I MEAN, I THINK THAT'S WHAT THE BOARD SHOULD BE HEARING HERE, IS THAT THESE EARLY THIS
EARLY BUDGET OBVIOUSLY WAS NOT ROSY FOR US. 
          AND THE ONE THING THAT WE CAN ABSOLUTELY CONTROL IS ENROLLMENT. 
          AND I'LL SAY THIS FOR THE NEW TRUSTEES IS THAT ENROLLMENT, IF WE CAN GET IT, IF WE CAN
GET INTO FAST GROWTH DISTRICT, BECAUSE I STILL BELIEVE THAT'S IN PLAY FROM THE STATE. 
          FAST GROWTH DISTRICTS, WHICH WE USED TO BE, GETS MULTI MILLION DOLLARS MORE. 
          SO. YOU KNOW, THERE ARE INCENTIVES THAT THE STATE GIVES TO GET YOUR ADA UP, GET YOUR KIDS
IN THEIR SEATS, AND TO GET YOUR STUDENTS THAT ARE IN YOUR DISTRICT, IN YOUR SCHOOLS. 
          AND SO I THINK THIS BOARD SHOULD REALLY PAUSE WHEN WE HEAR THIS BUDGET AND ADA IS ITS OWN
THING. 
          BUT I THINK ENROLLMENT IS SOMETHING THAT WE COULD REALLY WE COULD REALLY FOCUS ON. 
          AND I THINK THIS BOARD REALLY NEEDS TO PAUSE AND WONDER WHY YOU EVEN HAVE BOARD MEMBERS
THAT HAVE THEIR CHILDREN ON WAITING LISTS FOR CHARTER SCHOOLS TO GET THEM OUT OF THIS DISTRICT. AND SO YOU GUYS SHOULD PAUSE WHEN YOU SEE THAT IT'S FLAT AND THAT IS GOING
NEGATIVE. 
          IT'S TIME TO LISTEN TO YOUR COMMUNITY AND GET OUR KIDS BACK IN OUR SCHOOLS. 
          AND GET THEM EDUCATED SO THAT THE PARENTS WILL PUT THEM IN OUR SCHOOLS AND KEEP THEM
THERE. 
          I JUST HEARD A STORY THIS WEEK. 
          FAMILY HAS A FOR SALE SIGN IN THEIR YARD. 
          FOUR KIDS, TWO OF THEM ALREADY GRADUATED FROM ROUND ROCK. 
          THE OTHER TWO, THEY'RE LEAVING. 
          YOU WANT TO KNOW WHY? BECAUSE OF US. 
          BECAUSE YOUR SCHOOL DISTRICT. 
          THAT'S WHY THEY'RE LEAVING. 
          SO I THINK WE NEED TO PAUSE WHEN WE SEE THIS BUDGET AND LOOK AT THE THINGS WE CAN FIX AS
THIS BOARD. 
          ADA, I THINK WE CAN WORK ON A LITTLE BIT, FIGURE OUT WHY OUR KIDS AREN'T COMING, YOU KNOW? ARE THEY GOING ON VACATION OR ARE THEY REALLY SICK? I MEAN, WE CAN HAVE LOTS OF THINGS. 
          THE OTHER ONE IS ENROLLMENT. THAT'S US. 
          IF WE GET INTO FAST GROWTH DISTRICT, BRING THOSE KIDS BACK. 
          MAYBE WE NEED TO GO LOOK AT THESE CHARTER SCHOOLS. 
          MAYBE WE NEED TO GO LOOK AT WHAT THESE PEOPLE ARE DOING. 
          WHY ARE THE STUDENTS LEAVING? WHY ARE PEOPLE NOT FLOCKING TO ROUND ROCK TO PUT THEIR KIDS IN ANYMORE? I THINK IT'S A WAKE UP CALL, IN MY OPINION. 
          THE BUDGET. I APPRECIATE IT. 
          THANK YOU. DR. AZAIEZ. 
          THANK YOU, MR. COVINGTON. 
          BECAUSE FOR ME, IT'S A REAL, REAL NUMBERS REAL DATA THAT SHOWS WE NEED TO DO SOMETHING AS
THIS BOARD AND NOT JUST BE UP HERE, YOU KNOW, HAVING PRESENTATIONS. 
          WE ACTUALLY NEED TO DO SOME WORK AND FIGURE OUT SOME THINGS AND GET PEOPLE BACK IN OUR
SCHOOLS. 
          AM I MISSING ANYBODY ELSE? ALL RIGHT. THANK YOU VERY MUCH, MR. COVINGTON. I DON'T HAVE ANYTHING ELSE ON OUR AGENDA. 
          IT IS 10:29 AND WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.