[00:00:02]
GOOD EVENING. IT IS 5:30 ON TUESDAY, JUNE 18TH, 2024.
[B. CALL TO ORDER]
I HEREBY CALL THE MEETING OF THE ROUND ROCK INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES HEARING ON THE PROPOSED 2024-2025 BUDGET AND TAX RATE TO ORDER.TONIGHT IN ATTENDANCE, ALL SEVEN TRUSTEES ARE HERE.
[D. PUBLIC COMMENTS TO AGENDA ITEM E. ONLY]
DO HAVE PUBLIC COMMENT.PUBLIC COMMENT SPEAKERS FOR TONIGHT.
THE BOARD REQUESTS THAT COMMENTS, WHETHER POSITIVE OR NEGATIVE, BE COURTEOUS AND RESPECTFUL.
AS A SECOND REMINDER, THE BOARD ADOPTED AN ANTI-HATE RESOLUTION ON JANUARY 20TH, 2022, WHERE THE BOARD REAFFIRMED ITS COMMITMENT TO THE WELL-BEING AND SAFETY OF ALL PEOPLE, REGARDLESS OF RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, GENDER IDENTITY, GENDER EXPRESSION, SEXUAL ORIENTATION, DISABILITY, AGE, OR POLITICAL BELIEFS, AND STANDS AGAINST SPEECH THAT INCITES HATRED AND VIOLENCE TOWARDS ANY PERSON.
PLEASE NOTE THAT WHILE THE PUBLIC DOES HAVE THE RIGHT TO SPEAK, THAT RIGHT IS NOT UNLIMITED.
PER TEXAS PENAL CODE 38.13, 42.01, 42.02 AND 42.05, AND TEXAS EDUCATION CODE 37.105.
NO AUDIENCE MEMBER OR SPEAKER WILL BE PERMITTED TO ENGAGE IN ANY CONDUCT THAT IS DISRUPTIVE OR THREATENING TOWARD ANY SPEAKER OR OTHER PERSON, OR TO VIOLATE THE PRIVACY RIGHTS OF ANOTHER PERSON.
THE BOARD SHALL NOT TOLERATE DISRUPTION OF THE MEETING BY MEMBERS OF THE AUDIENCE.
IF, AFTER AT LEAST ONE INDIVIDUAL WARNING FROM THE PRESIDING OFFICER, ANY INDIVIDUAL CONTINUES TO DISRUPT THE MEETING BY HIS OR HER WORDS OR ACTIONS, THE PRESIDING OFFICER WILL REQUEST ASSISTANCE FROM LAW ENFORCEMENT OFFICIALS TO HAVE THE INDIVIDUAL REMOVED FROM THE MEETING.
THEREFORE, BOARD MEMBERS MAY NOT DISCUSS THE COMMENTS OF SPEAKERS.
EACH SPEAKER WILL BE GIVEN TWO MINUTES TO ADDRESS THE BOARD.
TRUSTEE HARRISON WILL BE THE DESIGNATED TIMEKEEPER.
OUR FIRST SPEAKER IS MR. MARK GABBARD, SPEAKING ON AGENDA ITEM E1.
AND YOU DO LIVE IN THE COMMUNITY.
YOU HAVE BEEN BEHIND THE MICROPHONE MANY TIMES.
I'M NOT SURE IF YOU'VE BEEN IN FRONT OF IT BEFORE, BUT WELCOME BACK TO ROUND ROCK ISD.
I'VE LEFT THE DISTRICT A YEAR AGO AND I'VE ENJOYED MY RETIREMENT, BUT I HAVE BEEN FOLLOWING THE NEWS OF ROUND ROCK ISD THROUGHOUT MY RETIREMENT, AND I JUST AM HERE TO SUPPORT THE BUDGET THAT'S BEEN PROPOSED BY THE ADMINISTRATION.
I THINK DOCTOR AZAIEZ AND DENNIS COVINGTON, ARE TOP NOTCH AT WHAT THEY DO.
AND I ALSO APPRECIATE THE BOARD AND EVERYTHING THAT YOU DO.
SO I'M HERE TO LEND MY SUPPORT FOR THE BUDGET THAT YOU'RE GOING TO BE ADOPTING TONIGHT.
THANK YOU. THANK YOU VERY MUCH.
OKAY. HELLO, BOARD. GOOD EVENING.
SO, RECALL, I WAS HERE LAST MONTH'S MEETING, AND I RAISED THE ISSUE OF THE FEW STUDENTS AT WESTWOOD HIGH SCHOOL, THEY WERE IN THE SECOND YEAR IB SCIENCE, HEALTH AND EXERCISE PROGRAM, AND THAT WAS CANCELED DUE TO BUDGET CUTS.
SO SINCE THEN, WE'VE RECEIVED NOTICE THAT FOR THESE DISENFRANCHISED STUDENTS, THEY WILL BE ABLE TO TAKE THEIR SECOND YEAR CLASS, AND COMPLETE THEIR CURRICULUM AS THEY HAD INTENDED.
SO. JUST THOUGHT I'D COME BY AND JUST SAY FOR WHOEVER WAS RESPONSIBLE FOR THAT.
I JUST WANT TO SAY THANK YOU BECAUSE, YEAH, IT WAS THE RIGHT THING TO DO AND ROUND ROCK ISD DID IT.
[00:05:03]
SO I THANK YOU VERY MUCH.ALL RIGHT. THANK YOU VERY MUCH.
THAT'S THE END OF OUR SPEAKERS BEFORE THE HEARING.
SO WE'LL GO AHEAD AND MOVE ON TO ITEM E ONE, PUBLIC HEARING PROPOSED 2024-2025 BUDGET AND TAX RATE.
[E. DISCUSSION ITEM]
AND I WILL TURN IT OVER TO DOCTOR AZAIEZ TO GET US STARTED.BOARD MEMBERS, COMMUNITY MEMBERS AND STAFF.
SO WE'RE HERE TO DISCUSS OUR FINAL AND HOPEFULLY FINAL PROPOSAL FOR OUR BUDGET.
SO WITH US TONIGHT IS AS YOU KNOW, OUR CFO, DENNIS COVINGTON, AND ALSO RHONDA WITH US TO HELP US GO THROUGH THIS PUBLIC HEARING ON THIS HOPEFULLY LAST PRESENTATION OF THE BUDGET FOR THE COMING SCHOOL YEAR.
MADAM CHAIR AND PRESTIGIOUS BOARD MEMBERS TONIGHT, AS DOCTOR AZAIEZ SAID, WE ARE HERE TO PRESENT AND TO GET ADOPTED THE FY 24-25 BUDGET.
AND THIS IS THE PUBLIC HEARING ON THE BUDGET.
AS WE PREPARE FOR THE BUDGET, WE ALWAYS START WITH WHAT OUR BUDGETARY GOALS AND OBJECTIVES WERE.
SO FOR THE 24-25 BUDGET SCHOOL YEAR, OUR GOALS AND OBJECTIVES WERE TO FOCUS ON INSTRUCTION, INCREASE OUR PRE-K AND PRE-K FOUR ENROLLMENT TO BENEFIT FOR EARLY EDUCATION.
MAINTAIN A COMPETITIVE COMPENSATION FOR ALL POSITIONS IN THE DISTRICT.
BUT ABOVE ALL, REDUCE EXPENDITURES AND BALANCE THE BUDGET.
WHY DO WE BALANCE THE BUDGET? THE BALANCE OF THE BUDGET INCREASES THE FINANCIAL STRENGTH OF THE DISTRICT.
IT HELPS US TO MAINTAIN OUR TRIPLE-A BOND RATING AS BEING THE ONLY SCHOOL DISTRICT IN TEXAS THAT HAS A TRIPLE A BOND RATING HELPS US MAINTAIN OUR A FIRST RATING ON THE STATE'S FIRST REPORT.
SO LET'S LOOK AT THE ONE OF THE THREE BUDGETS THAT THE BOARD HAS TO ADOPT.
THE FIRST ONE BEING OUR MNO BUDGET MAINTENANCE AND OPERATIONS.
THESE FUNDS COVER THE DAY TO DAY OPERATIONS OF SCHOOL DISTRICT.
THESE ASSUMPTIONS INCLUDED WE ESTIMATE THE PROPERTY VALUES TO INCREASE BY 6%.
OUR ENROLLMENT REJECTION GREW BY 250 STUDENTS.
WE MAINTAIN OUR PROJECTED ATTENDANCE RATE OF 94%.
THE BASIC ALLOTMENT REMAINS AT $6,160 PER ADA.
WE USED THE LATEST INFORMATION THAT WE HAVE FROM THE STATE ON OUR MAXIMUM COMPRESSION RATE.
IT WAS REDUCED TO 0.6169, AND WE ALSO TRIED TO INCREASE COMPENSATION BY 1% FOR ALL STAFF.
SO LET'S LOOK AT THE BUDGET FOR THE 24-25 MAINTENANCE AND OPERATIONS.
OUR TAX COLLECTION FOR REVENUES FOR THE YEAR IS 348,000,689.
THE TAX COLLECTION FOR OUR EIGHT GOLDEN PENNIES IS 45,000,218.
NOW LET ME BACK UP TO WHAT'S AT THE TOP OF THE PAGE.
OUR MCR IS THE 0.6169 PLUS THE EIGHT GOLDEN PENNIES, WHICH HAS THE TAX RATE OF 0.6969.
THIS IS A DECREASE FROM THE PREVIOUS YEAR OF 2.41 PENNIES.
ENROLLMENT PROJECTIONS, YOU SEE, IS AT 46,485.
THAT'S THE INCREASE OF THE 250 STUDENTS.
AND OUR ADA STILL MAINTAINED AT 94%.
ALSO DOWN BELOW YOU'LL SEE THAT OUR INVESTMENT INCOME HAS DROPPED.
WE HAD SOME VERY GREAT INTEREST RATES DURING THE 2324 SCHOOL YEAR.
THE ECONOMY IS STABILIZING, SO OUR PROJECTION HAS DROPPED TO 7.5 MILLION.
OUR STATE REVENUE NUMBER IS HELD CONSTANT.
BUT THE BIGGEST DROP YOU SEE ON HERE IS OUR SCHOOL HEALTH AND RELATED SERVICES CHARGE.
AND WE'VE HAD MANY DISCUSSIONS ON WHY THAT IS.
BUT FROM THE 23-24 YEAR TO THE 24-25 YEAR DROP FROM 9.5 MILLION TO 1.5 MILLION, BUT OUR TOTAL REVENUES FOR THE 2425 PROPOSED BUDGET IS 466 MILLION, OR 48.
HOW DO WE SPEND THOSE DOLLARS? MAJORITY OF OUR FUNDS ARE SPENT FOR SALARIES AND BENEFITS ROUGHLY 86% OF THE BUDGET.
[00:10:06]
AS YOU CAN SEE, OUR TOTAL SALARIES AND BENEFITS FOR THE 24-25 SCHOOL YEAR IS 395,000,679.THERE WERE INCREASES FOR OUR 1% INCREASE.
WE DONE SOME REALLOCATIONS OF TRANSPORTATION DOLLARS TO INCREASE TRANSPORTATION SALARIES, AND WE ALSO HAD REDUCTIONS IN OUR POSITIONS FOR A BALANCE OF 395 679.
ALL THE ALLOCATIONS ARE FOR CAMPUSES AND LIBRARIES, AND WE HAD A REDUCTION THERE OF 586,000.
AND WE HAD SOME REDUCTIONS WITHIN OUR DEPARTMENTS OF $2 MILLION.
OUR RECAPTURE NUMBER NOW IS RIGHT AT 20 MILLION.
SO OUR TOTAL EXPENSES IS 466,048.
THE NEXT FEW SLIDES IS BY STATE STATUTE, WHERE WE MUST SHOW THE BUDGET BY FUNCTION CODES.
AND THEN THE STATE PROGRAM REVENUES ARE ABOUT 11.2%.
AND ALL THE OTHER SMALL ONES MAKE UP THE REMAINDER TO GET 100% FOR THE REVENUES.
AS FAR AS EXPENDITURES I THESE DOLLARS ARE USED, AS YOU SEE, IN THOSE MAJOR CATEGORIES.
SO INSTRUCTIONAL, INSTRUCTIONAL AND SCHOOL LEADERSHIP AND STUDENT SUPPORT SERVICES MAKE UP 78.85% OF THE BUDGET FOR INSTRUCTIONAL OR STUDENT SUPPORT SERVICES.
OUR SUPPORT SERVICES IS 12.8%, WHICH INCLUDES OUR FACILITIES AND SECURITY AND TECHNOLOGY.
AND AS YOU SEE, THE SMALLER PERCENTAGES OF THE BUDGET FOR OUR AUXILIARY SERVICES, DEBT SERVICES, CAPITAL OUTLAY, AND THE LAST ONE, THE INTERGOVERNMENTAL CHARGES, THAT IS THE RECAPTURE THAT WE PROJECTED.
SO THOSE TOTAL APPROPRIATIONS COME TO THE 466,048,499.
AND WE MUST ALSO POST WHAT WE PAY FOR ADVOCACY EXPENDITURES.
THESE DOLLARS ARE WHAT'S INCLUDED IN OUR MEMBERSHIPS FOR TASA, TASB, TASBO, AND MORE AT CASEY.
AS PART OF THOSE MEMBERSHIPS, THERE ARE SOME ADVOCACY BREAKOUTS THAT THEY HAVE TO TELL US HOW MUCH OF OUR MEMBERSHIPS ARE FOR ADVOCACY, AND THAT'S WHAT WAS REPORTED ON THIS SLIDE. AND WE SKIP THAT ONE.
AND MA'AM, THAT WAS THE MNO BUDGET.
SHOULD I DO THIS NEXT TWO OR STOP THERE? LET'S GO AHEAD AND FINISH UP ALL OF OUR BUDGETS, AND THEN WE'LL STOP IF THERE'S ANY QUESTIONS.
THE SECOND BUDGET THAT MUST BE ADOPTED IS OUR INTEREST IN SINKING FUND BUDGET.
AND THIS IS THE BUDGET USED TO PAY OFF BOND DEBT.
THE ASSUMPTIONS USED IN DEVELOPING THIS INS BUDGET IS WE ESTIMATED THE PROPERTY VALUE AGAIN AT 6%.
WE ASSUME THE INS TAX RATE TO REMAIN FLAT.
WE ALSO ASSUME THAT WE WILL MAKE A DEBT DEFEASANCE PAYMENT OF 25 MILLION.
WE ALSO LOOKED AT FUTURE DEBT CAPACITY AND TO WHAT OUR FUND BALANCE WAS, WHICH IS 113.9 MILLION, WITH A PAYMENT DUE IN AUGUST OF 72.7 MILLION. AND WE ALSO ASSUME THAT 98% TAX COLLECTION RATE.
SO LOOKING AT THE BUDGET FOR INS, YOU SEE OUR PROPERTY TAX COLLECTIONS PROJECTED AT 111.8 MILLION.
OUR PRINCIPAL PAYMENT, INTEREST PAYMENT DEFEASANCE PAYMENT AND BOND FEES TOTAL TO 118 .008.
AND SO THERE IS A PROJECTED SURPLUS IN THE INS BUDGET OF $207,000.
AND AGAIN BY STATE STATUTE, WE MUST BREAK OUT IN THESE FUNCTION CODES WHERE THE DOLLARS ARE ALIGNED.
AND YOU SEE LOCAL REAL PROPERTY TAXES MAKE UP 94.63% OF OUR REVENUE.
THE NEXT SLIDE IS JUST AN EXAMPLE OF A HOMEOWNER'S PROPERTY VALUES FOR 23-24 AND 24-25.
[00:15:08]
IF THE HOMEOWNER PROPERTY VALUES IS AT 500,000, IT WILL GROW TO FIVE 530,000 WITH HOMESTEAD EXEMPTIONS OF 100,000. SO YOUR HOMEOWNER'S TAXABLE VALUE FOR 23-24 WAS 400,000 AND WOULD BE 430,000 FOR 24-25 AT THE TAX RATE OF 0.6169 AND THE EIGHT GOLDEN PENNIES 0.6969.AND SO YOU SEE THE DECREASE OF 0.241 PENNIES.
AND BASED ON THAT, YOU WILL SEE THAT THE INCREASE IN TAX VALUE FOR A HOMEOWNER THAT HAS A $500,000 HOME FOR 23-24 TO THE 24-25, WILL BE $172 FOR THE YEAR.
THE THIRD OF THE THREE BUDGETS IS OUR FULL SERVICE BUDGET.
WE ARE NOT PROPOSING A PRICE INCREASE ON OUR BREAKFAST NOR LUNCH.
WE ARE STILL PART OF THE NATIONAL SCHOOL LUNCH PROGRAM, AND WE HAVE A FUND BALANCE NOW 7.5 MILLION.
LOOKING AT OUR REVENUES AND EXPENDITURES, WE'RE PROJECTING ALMOST $11 MILLION IN LOCAL REVENUE.
FEDERAL REVENUE, OR 8.6, FOR A TOTAL REVENUES ABOUT 19.7.
AND YOU SEE THE EXPENDITURES LISTED FOR FOOD SERVICES, MAINTENANCE SERVICES OF OUR EQUIPMENT, ANY SECURITY AND MONITORING SERVICES, FOR A TOTAL OF 18.794 MILLION, AND SHOW A SURPLUS IN THE FOOD SERVICE BUDGET FOR THE 2425 SCHOOL YEAR OF 910,000.
WE BREAK OUT INTO THOSE PHONE CODES OUR OTHER REVENUES OF THE 10.977 STATE REVENUE OF 80.5, AND OUR FEDERAL PROGRAM WAS 8.6. AND THOSE PERCENTAGES ADD UP TO 100%, AND 88% OF THE MONEY IS USED TO PAY FOR FOOD SERVICES, TO OPERATE OUR PROGRAMS FOR LUNCH AND BREAKFAST.
AND TO MAINTAIN THE EQUIPMENT AT 7.69%.
YOU GET 100% OF THE APPROPRIATION FOR THOSE CATEGORIES.
MADAM CHAIR, THAT IS THE THREE BUDGETS THAT WE HAVE FOR YOU ALL TO ADOPT FOR THE 2425 SCHOOL YEAR.
ALL RIGHT. THANK YOU VERY MUCH.
ADMINISTRATION WORKED VERY DILIGENTLY TO GET ALL OF THOSE QUESTIONS ANSWERED.
JUST A LOT GOING ON TODAY TO GET THAT TURNED AROUND AND POSTED IN THAT SHORT OF A TIME FRAME.
ALL RIGHT. DO I HAVE ANY TRUST QUESTIONS, TRUSTEES, ABOUT THIS BUDGET THAT'S COMING UP FOR THE PUBLIC HEARING? I DON'T HAVE ANY LIGHTS ON, SO THANK YOU VERY MUCH.
DO WE HAVE ANY ADDITIONAL PUBLIC SPEAKERS FOR BEFORE THE CONCLUSION OF THE PUBLIC HEARING? I'M GOING TO ASK THE GENTLEMAN WHO'S SIGNING UP RIGHT NOW.
ARE YOU SIGNING UP TO SPEAK ON THE PUBLIC HEARING? OKAY, FABULOUS.
ALL RIGHT, THEN, THAT CONCLUDES OUR PUBLIC HEARING ON THE BUDGET.
IT IS 5:48 AND WE ARE GOING TO ADJOURN.
WE'LL TAKE ABOUT A FIVE MINUTE RECESS BEFORE WE START OUR NEXT MEETING.
BUT IT IS 5:48 AND WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.