[00:00:01]
>> TEAM. GOOD MORNING. GOOD EVENING. GOOD MORNING.
THANK YOU AND WELCOME TO THE SPECIAL MEETING FOR THE HAY ASD BOARD OF TRUSTEES.
WE APPRECIATE ALL OF YOU FOR BEING HERE AND THOSE THAT MAY BE LISTENING ONLINE.
TODAY IS MONDAY, AUGUST 18, AND THE TIME IS EXACTLY 5:30.
A QUORUM HAS BEEN ESTABLISHED.
ALL OF THIS GREAT TEAM IS HERE AND PRESENT.
AS WE FOLLOW UP WITH THAT, WE'RE GOING TO MOVE STRAIGHT INTO TONIGHT'S MEETING.
DESERVES UNPRECEDENTED ACTIONS, AND TONIGHT IT'S GOING TO BE ONE OF THOSE SITUATIONS.
[B. SUPERINTENDENT'S REPORT]
I'M GOING TO TURN IT OVER TO YOU AND GET US KICKED OFF ON BURMA TONIGHT.>> THANK YOU. GOOD EVENING, EVERYONE.
TONIGHT, I WANT TO TALK ABOUT TWO DIFFERENT ITEMS. THE FIRST ONE IS A TAX ANTICIPATION NOTE, AND THE SECOND ONE IS A TAX RATIFICATION ELECTION, AND I WANT TO TALK ABOUT WHY WE ARE IN THE POSITION TO BE ASKING FOR EACH ONE OF THOSE.
I'M GOING TO GO THROUGH A SERIES OF SLIDES TO GIVE YOU SOME INFORMATION AND AN OVERVIEW THAT WILL HOPEFULLY HELP WITH THAT UNDERSTANDING AND THEN WHEN WE GET TO THE PUBLIC HEARING, MISS ATMERZ IS GOING TO FOLLOW UP AND GIVE YOU REALLY SPECIFIC INFORMATION.
BUT FIRST OF ALL, IN LOOKING AT A TAX RATIFICATION ELECTION, WE ARE BASICALLY SAYING THAT WE WOULD BE GOING TO THE VOTERS IF THIS SCHOOL BOARD APPROVES TO RAISE THE TAX RATE TO BASICALLY MAKE UP THE DIFFERENCE THAT THE STATE WASN'T ABLE TO FUND IN THE LAST THREE SESSIONS.
AFTER THE PANDEMIC, WE HAD A 21 SESSION, AND THE BASIC ALLOTMENT WAS NOT INCREASED.
WE HAD A 23 SESSION, AND THE BASIC ALLOTMENT WAS NOT INCREASED, AND THEN WE HAD THE 25 SESSION, AND THEY DID GIVE SOME MONEY TO PUBLIC SCHOOLS, BUT IT WAS ALL EARMARKED.
THERE WAS REALLY NO DISCRETIONARY DOLLARS AND NOTHING TO COMBAT INFLATION AND WE'RE PROUD THAT WE WERE ABLE TO GET MORE MONEY FOR TEACHERS IN THE FORM OF A $2,500 INCREASE FOR TEACHERS YEARS 3 AND 4, AND THEN FOR THOSE FIVE AND ABOVE $5,000.
BUT FOR ALL OTHER POSITIONS, NOT A LOT AND REALLY, ANYTHING THAT WAS GIVEN FOR INFLATION WAS JUST A SWAP FROM WHAT WE USED TO GET IN GOLDEN PENNIES, AND SO IT WAS KIND OF SMOKE AND MIRRORS.
AND SO WE ARE BEING FORCED INTO A POSITION WHERE SINCE THE STATE WON'T TAKE CARE OF US, WE'RE GOING TO ASK POTENTIALLY TO GET A TAX RATIFICATION ELECTION ON THE BALLOT FOR NOVEMBER TO SEE IF OUR LOCAL TAXPAYERS WILL HELP US OUT.
I WANTED TO RECAP WHAT I JUST SAID.
THE BASIC STUDENT ALLOTMENT FUNDING HAS REMAINED FLAT FROM 2019 THROUGH 2025, AND IT'S NOT KEPT PACE WITH POST PANDEMIC INFLATION.
YOU CAN SEE ON THIS LINE FROM 2020-2025, WE'VE RECEIVED THE SAME AMOUNT OF FUNDING PER KID $6,160.
THIS YEAR, THEY RAISED FOR FISCAL YEAR 26, THEY RAISED ABOUT $50, BUT THAT IS A SWAP FROM THE OLD GOLDEN PENNY SIDE.
IT'S REALLY NOT AN INCREASE AT ALL.
BUT BELOW THAT, YOU CAN SEE THAT US INFLATION RATE, ACCORDING TO THE US BUREAU OF LABOR STATISTICS INFLATION HAS CONTINUED TO GROW EACH YEAR SINCE THE PANDEMIC.
IN 2020, WE HAD THE BUYING POWER OF $1 NOW HAS THE SAME BUYING POWER OF $0.80 IN 2025 AND SO IN ORDER TO CONTINUE TO KEEP UP WITH RISING COSTS, WE NEED TO TAKE A LOOK AT THIS.
NEXT SLIDE. TONIGHT, WE'RE ALSO GOING TO TALK ABOUT A TAX ANTICIPATION NOTE.
THE REASON FOR THAT IS WE HAVE CONSCIOUSLY MADE A DECISION TO BUY DOWN OUR FUND BALANCE SO THAT WE DIDN'T HAVE TO CUT PEOPLE OR PROGRAMS THROUGHOUT THE YEARS.
WE'VE ALSO MADE THE CONSCIOUS CHOICE TO HAVE A DIFFERENTIATED PAY SCALE SO THAT WE COULD ATTRACT AND RETAIN HIGHLY QUALIFIED TEACHERS.
WE TARGETED THOSE THAT WERE EXPERIENCED AT FIVE YEARS, 10 YEARS, 15 YEARS, 20 YEARS, AND 25 YEARS, AND, OF COURSE, YOU PAY MORE WHEN YOU HIRE MORE EXPERIENCED TEACHERS.
BUT AS A RESULT, WE FEEL LIKE OUR KIDS ARE BEING TAUGHT BY THE BEST AND THE BRIGHTEST, AND WE WANT TO CONTINUE TO KEEP ALL OF THOSE INDIVIDUALS.
I THINK THE STRATEGIES WORKED WELL.
AS YOU CAN SEE, OUR ADVANCED ACADEMICS HAVE INCREASED OVER ALL THE YEARS, OUR ACCOUNTABILITY RATING, EVEN THOUGH THE GAME HAS CHANGED MANY TIMES WE'VE HELD SERVE WITH OUR ACCOUNTABILITY RATING.
I THINK WE'VE SEEN A LOT OF GREAT EFFORT ACADEMICALLY,
[00:05:03]
BUT THAT'S BECAUSE YOU GUYS MADE THE CONSCIOUS DECISION TO RECRUIT AND RETAIN GREAT EXPERIENCED TEACHERS.AS YOU KNOW, WE'RE IN THE PEOPLE BUSINESS, AND WE'RE ONLY AS GOOD AS THE PEOPLE THAT WE HIRE.
WE CONSCIOUSLY DECIDED TO SPEND THE MONEY SO THAT WE COULD GIVE PAY INCREASES DURING THE HEART OF THE PANDEMIC.
ONCE YOU GIVE A PAY INCREASE, IT'S PERPETUAL.
EACH YEAR, THAT EXACERBATED AND SO WE STARTED WITH THE HEIGHT OF OUR FUND BALANCE BEING AROUND $71,000,000.
AT THE CLOSE OF THIS YEAR, I BELIEVE ON PAPER, IT'S GOING TO BE ANYWHERE 24-20 MILLION, WHICH IS ABOUT ONE MONTH OF OPERATING COST AND TEA PER THEIR GUIDELINES SAYS THAT WE SHOULD KEEP IN OUR ACCOUNT ABOUT 67 MILLION TO ENSURE THAT THE DISTRICT CAN MAKE PAYROLL AND PAY OUR BILLS.
BECAUSE WE DON'T GET TAX MONEY UNTIL DECEMBER, JANUARY, FEBRUARY, IN MOST YEARS, WE'RE AT A POINT NOW WHERE WE NEED TO ASK FOR A TAX ANTICIPATION NOTE SO THAT WE CAN CONTINUE TO MAKE PAYROLL.
THAT'S SOMETHING DEBORAH WILL DESCRIBE FOR YOU IN MORE DETAIL, BUT I WANTED YOU TO SEE THE CHART AND HOW THAT HAS CONTINUED. NEXT SLIDE, BARBARA.
THE DISTRICT'S ALLOWABLE OPERATIONAL TAX RATE WITHOUT VOTER APPROVAL HAS COMPRESSED IN RECENT YEARS, MATTER OF FACT, IT'S DROPPED OVER $0.31.
IN ORDER TO KEEP PACE WITH WHAT THE STATE SHOULD HAVE INCREASED IN BASIC ALLOTMENT, WHICH IS ABOUT $1,000 PER KID, WE WOULD NEED TO ADD $0.12 AND SO OVER THE COURSE OF ALL THESE YEARS LIKE I MENTIONED, WE'VE DECREASED THE TOTAL TAX RATE BY $0.31.
IF YOU GUYS DO APPROVE TO PUT THIS ON THE BALLOT, THEN WE WOULD BE BACK AROUND AND STILL A LITTLE BIT LESS THAN OUR TAX RATE WAS IN 2023.
NEXT SLIDE, BARBARA. THE BIG THING IS, IF YOU DECIDE TO APPROVE PUTTING THIS ON THE BALLOT AND IT PASSES, THEN OUR PLAN WOULD BE TO PROVIDE RETROACTIVE COST OF LIVING INCREASES FOR TEACHERS AND STAFF FROM THE START OF THIS FISCAL YEAR FOR EMPLOYEES NOT INCLUDED IN LEGISLATIVE TEACHER RAISES.
I MENTIONED AT THE BEGINNING, TEACHERS, THREE AND FOUR YEARS EXPERIENCE RECEIVED $2,500 AND TEACHERS FIVE YEARS AND MORE RECEIVED $5,000.
THEN FOR ALL OTHER CLASSES, THERE WAS NO COST OF LIVING INCREASE OTHER THAN AN ALLOTMENT THAT IS PASSED ON, AND WE'RE STILL WAITING FOR TEA TO CLARIFY WHAT THAT IS, BUT IT'S LOOKING LIKE IT MIGHT BE $400 PER STAFF MEMBER.
IF THIS WERE TO PASS, WHAT I WOULD RECOMMEND IS A 3% FOR ALL OF OUR HOURLY PERSONNEL, OUR AUXILIARY STAFF, 2% FOR EVERYBODY ELSE THAT DIDN'T RECEIVE A RAISE.
MANY EMPLOYEE CATEGORIES FROM THE PAST COUPLE OF YEARS HAVE NOT RECEIVED INCREASES AT ALL.
THEN FOR THE TEACHERS THAT ARE 0-2% INCREASE.
THEN FOR TEACHERS THAT DID GET THE COST OF LIVING INCREASE FROM THE STATE, WE WOULD ASK THAT YOU CONSIDER GIVING THEM A 1% ON TOP OF WHAT THEY'VE ALREADY RECEIVED BECAUSE THEIR HEALTH INSURANCE RATE WENT UP THIS YEAR, AND WE WOULD LIKE TO BE ABLE TO COVER THAT COST AS WELL.
THE NEXT THING TOO IS WE WOULD BE ABLE TO AVERT THE NEED FOR ACROSS THE BOARD AND DISTRICT WIDE ELEMENTARY CLASS SIZE INCREASES.
CURRENTLY WE STAFF AT 22-1 IN ALL OUR ELEMENTARY CLASSES, AND SHOULD THIS PASS, WE WOULD CONTINUE TO BE ABLE TO STAFF AT THAT RATIO.
THE MAIN THING IS, WE WOULD BE ABLE TO REBUILD THE FUND BALANCE TO AT LEAST THE MINIMUM RECOMMENDED LEVEL AND FUND MANDATES THAT ARE CURRENTLY NOT FUNDED BY THE STATE.
THAT'S WHAT WOULD HAPPEN IF A TRE WERE TO PASS.
NEXT IS, IF IT DOESN'T PASS, THEN WE WOULD EXPECT TO MAKE SIGNIFICANT CUTS IN STAFFING BEYOND WHAT CAN BE ACCOMPLISHED THROUGH ATTRITION.
OUR ATTRITION RATE BECAUSE OF WHAT WE'VE BEEN ABLE TO DO HAS BEEN AROUND 6% FOR TEACHERS PER YEAR, WHICH IS OUTSTANDING.
THE STATE'S AVERAGE IS SOMEWHERE 15-17%.
WE'VE BEEN REALLY PLEASED WITH THAT, BUT IN ORDER TO MAINTAIN THAT, IT COSTS MONEY.
THE NEXT ONE IS WE WOULD CONSIDER INCREASING CLASS SIZES DISTRICT WIDE BEYOND CURRENT LEVELS AND PRACTICES.
WE WOULD EXPECT TO CUT SOME SPECIAL PROGRAMS AND EDUCATIONAL SERVICES, AND WE WOULD CONSIDER INCREASING FEES OR ADDING NEW FEES FOR CERTAIN SERVICES TO GENERATE REVENUE.
THOSE ARE THE WHAT IFS FOR IF IT PASSES, AND IF IT DOESN'T PASS.
[00:10:01]
JUST WANTED TO GIVE YOU THAT SUMMARY, AND I KNOW DEBORAH HERE IN A FEW MINUTES IS GOING TO GIVE YOU THE GRAND OVERVIEW WITH THE DETAILED NUMBERS.BUT THAT CONCLUDES MY REPORT, MR. PRESIDENT.
>> THANK YOU, DOCTOR WRIGHT. ALL SOMBER WORDS, POSSIBLY FOR US IN THE FUTURE, AS WE'RE LOOKING AT THIS TONIGHT, AND THIS DISTRICT HAS NEVER GONE THROUGH THIS BEFORE.
THIS GROUP HAS NOT GONE THROUGH THIS BEFORE, SO THIS IS SOMETHING WE'RE ALL GOING THROUGH TOGETHER, SO I APPRECIATE YOU LAYING OUT FOR US.
THE NEXT PORTION OF OUR MEETING IS GOING TO BE THE PUBLIC HEARING PORTION.
[C. PUBLIC HEARING of Property Tax Rate for Tax Year 2025 and Fiscal Year 2025-2026]
WE'RE GOING TO HAVE MISS ATMERZ COME UP TO THE MIC.BEFORE SHE GETS HERE MISS GLORIA, ARE THERE ANY SPEAKERS WHO HAVE SUBMITTED DOCUMENTATION, WISHING TO ADDRESS THE BOARD DURING THIS PUBLIC HEARING PORTION OF THIS MEETING? THANK YOU.
TEAM, SO I WANT TO JUST LAY THIS OUT.
THIS IS YOUR FIRST BIG PRESENTATION TO US, SO I WANT TO GIVE YOU ALL THE LENIENCE AND FREEDOM TO DO WHAT YOU WANT.
DURING THIS PRESENTATION, TEAM, SHE'S GOING TO BE PRESENTING A BUNCH OF INFORMATION THAT HAS TO DO MAINLY WITH AGENDA ITEMS 4 AND 5 DOWN THE BOTTOM OF HER BOOK TONIGHT.
I WOULD ASK THAT SHE WAS ASKED US THAT SHE PRESENT HER WHOLE PRESENTATION TONIGHT.
WHEN YOU GET TO A SLIDE RELATED TO THOSE, CIRCLE THIS PAGE NUMBER ON YOUR SLIDE, WRITE YOUR QUESTION DOWN AND THEN I WOULD LIKE TO ASK THOSE QUESTIONS IN EACH SPECIFIC ACTION ITEM FOR TONIGHT TO HELP WITH THE FLOW.
MISS ATMERZ, IF THAT SOUNDS OKAY TO YOU, THEN I'M GOING TO TURN IT OVER AND YOU KICK IT OFF FOR US.
>> THANK YOU VERY MUCH, PRESIDENT SEVERANCE, BOARD OF TRUSTEES.
WE ARE HERE TONIGHT TO HAVE A TAX RATE PUBLIC HEARING.
TO REMIND OURSELVES OF THE NUMBER OF STUDENTS THAT WE SERVE, 25,400 IS THE PLAN FOR THIS YEAR, OVER 28 CAMPUSES, 03,600 EMPLOYEES, AND 221 SQUARE MILES, AND GROWING AND GROWING.
WE HAVE LEGAL REQUIREMENTS FOR OUR BUDGETING IN THE TEXAS EDUCATION CODE 44.002 THROUGH 006.
NO IT REQUIRES THAT THE BUDGET IS PREPARED 11 DAYS PRIOR TO THE END OF THE FISCAL YEAR, IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, IN ACCORDANCE WITH THE TEXAS EDUCATION AGENCY FINANCIAL ACCOUNTABILITY SYSTEM RESOURCE GUIDE.
IT PROVIDES INFORMATION FOR ONLY THREE FUNDS, THE GENERAL FUND, THE SCHOOL NUTRITION FUND, AND THE DEBT SERVICE FUND BY FUNCTION.
WE MUST HAVE A MEETING NOTICE POSTED IN THE NEWSPAPER, DETAILED BY FUNCTIONAL CATEGORY ON THE DISTRICT WEBSITE FOR AT LEAST 10 DAYS PRIOR TO THE MEETING.
THE BUDGET IS ADOPTED BY THE BOARD BEFORE THE START OF THE FISCAL YEAR AND BEFORE THE TAX RATE IS SET, AND IT IS REPORTED TO TEA THROUGH THE PMS REPORTING.
IF WE EXCEED A FUNCTIONAL CATEGORY, WE HAVE TO HAVE THOSE AMENDMENTS APPROVED BY THE BOARD.
OUR BUDGET IS OUR FINANCIAL RESOURCE PLAN OF OUR ESTIMATED REVENUES AND EXPENDITURES.
IT'S HELPING US MATCH THE AVAILABLE RESOURCES TO THE GOALS AND THE STRATEGIES THAT IS ADOPTED BY THE DISTRICT AND BY THE BOARD.
ON OUR WEBSITE, WE HAVE THE MISSION, THE VISION, THE STRATEGIC PLAN, AND THE DISTRICT IMPROVEMENT PLAN.
WE HAVE WORDS, AND THEN WE'RE GOING TO TAKE NUMBERS AND PUTTING THOSE WORDS INTO NUMBERS WHEN WE'RE GETTING OUR BUDGET TOGETHER.
THAT TAKES EVERYBODY IN THE SCHOOL DISTRICT TO DO THAT.
REMINDING US OF OUR SORRY, I CLICKED A LITTLE TOO FAST THERE, OUR MISSION AND OUR VISION AND OUR BELIEFS AND OUR GOALS.
WE HAVE TO PUT NUMBERS TO MAKE ALL THAT HAPPEN.
WE HAVE REQUIREMENTS FOR TRUTH IN TAXATION TAX RATE ADOPTIONS, AND THAT INFORMATION CAN BE FOUND OUT ON THE COMPTROLLER'S WEBSITE.
THEY REMIND US WE HAVE TO DRAFT THAT BUDGET, CALCULATE THE TAX RATE, USING THE ESTIMATED PROPERTY VALUES THAT WE RECEIVED BACK AT THE END OF APRIL.
THEN WE HAVE TO LOOK AT IT AGAIN USING THE CERTIFIED VALUES THAT WE RECEIVE AT THE END OF JULY.
WE HAVE TO PUBLISH NOTICES, HOLD THE PUBLIC HEARINGS, ADOPT THE BUDGET, ADOPT THE TAX RATE, AND HAVE A TAX RATE ELECTION, IF NECESSARY.
YOU'LL SEE THAT THE TEA REQUIREMENTS ARE MIRRORING WHAT THE COMPTROLLER REQUIRES OF US.
BACK IN JUNE, MID JUNE, THE NOTICE WAS PUBLISHED IN THE PAPER ON JUNE 11TH.
[00:15:03]
AT THAT TIME, USING THOSE ESTIMATED VALUES, AND THERE WAS AN ANTICIPATED PROPERTY VALUE INCREASE AT THAT TIME.THE PLAN FOR THE HOMESTEAD EXEMPTION INCREASE FROM 100,000-140,000.
THAT TAX RATE, THE MAINTENANCE PROPOSED TAX RATE WAS PUT OUT THERE, AND THE ENTIRE TAX RATE WAS PLANNED TO STAY THE SAME AT THAT TIME.
THE BUDGET WAS ADOPTED JUNE 24TH.
ALMOST 268 MILLION FOR THE GENERAL FUND, WHICH IS WHAT WE ARE CONCENTRATING ON TONIGHT.
WHEN WE LOOKED AT THAT, HOW THE BUDGET WAS ADOPTED HERE IS BY FUNCTION.
THE INSTRUCTIONAL SERVICES, OF COURSE, ARE THE LARGEST FUNCTION.
BUT WHEN YOU LOOK AT THE OBJECT SERIES, PAY ROLL IS OUR LARGEST AT ALMOST 89%.
>> THE CHIEF FINANCIAL OFFICER OR SOMEONE IS SUPPOSED TO CALCULATE THE TAX RATE EVERY YEAR, AND YOU WILL SEE LATER IN THE MEETING, YOU WILL HAVE A RESOLUTION TO APPOINT YOUR CHIEF FINANCIAL OFFICER AS THE DESIGNATED OFFICER RESPONSIBLE FOR CALCULATING THAT RATE.
DO WORK IN CONJUNCTION WITH THE TAX ASSESSOR COLLECTOR AND WITH TEA TO CONFIRM THAT THOSE RATES ARE ACCURATE.
WHAT YOU'RE SEEING OVER HERE ON THE RIGHT IS THE MAXIMUM COMPRESSED RATE CALCULATION, THAT WE PREPARE WITH A LOT OF OTHER TEMPLATES THAT WE HAVE.
THEN WE REMIT WHAT WE THINK IT IS TO TEA, AND THEY DO THEIR CALCULATIONS, AND THEY AGREE OR THEY DON'T.
BUT THE TAX RATE CAME OUT TO THE SAME AS LAST YEAR FOR THE MAXIMUM COMPRESSED TAX RATE AND THEN THE TOTAL.
THE TOTAL IS INCREASED OVER THE MAXIMUM COMPRESSED TAX RATE, AND WE'LL SEE THAT HERE IN A MOMENT.
THIS IS FROM ONE OF THE TEMPLATES THAT WE RECEIVED FROM THE STATE.
WE'LL NOTICE ON HERE THAT THE COMPRESSED TAX RATE AT THAT FIRST LINE THERE IS THE 0.6169.
WE HAVE AN ENRICHED TAX RATE OF $0.05.
WHEN YOU ADD THOSE TOGETHER, YOU GET THE 6,669, WHICH IS WHAT WE ANTICIPATED IT WOULD BE DEBT SERVICE RATE, THE SAME AT 4,877 TO BRING US TO THAT TOTAL OF 11,546.
SAME AS LAST YEAR, THAT WAS THE PLAN.
THAT WOULD BE OUR MAXIMUM RATE. SAME AS LAST YEAR.
THERE'S ANOTHER TEMPLATE THAT SHOWS IT COMES TO THE SAME 6,169 ON THE COMPRESSED TAX RATE.
THE RATE WE DID RECEIVE FROM TEA WAS THE SAME, 6,169.
IF WE WERE ABLE TO MOVE FORWARD WITH OUR PLAN, IT WOULD ALL BE THE SAME AS WAS EXPECTED.
THE TAX ASSESSOR ALSO DOES THEIR TAX RATE CALCULATION WORKSHEET.
THEIR NUMBERS ARE USUALLY A LITTLE BIT HIGHER BECAUSE THEY HAVE MORE DETAILED INFORMATION BECAUSE THAT'S THE FIRST LEVEL OF THE INFORMATION.
WE ARE IN GOOD SHAPE BECAUSE OUR NUMBERS WERE LESS THAN THEIRS, WHICH IS A STRICTER NUMBER, IN ESSENCE.
AS DR. WRIGHT MENTIONED, WE HAVE BEEN UTILIZING OUR FUND BALANCE OVER THE LAST SEVERAL YEARS IN HOPES THAT WE WOULD HAVE RECEIVED AN INCREASE FROM THE STATE.
I KNOW THESE NUMBERS ARE SMALL, BUT WE STARTED LOOKING AT THE CASH FLOW BECAUSE I WAS CONCERNED WHEN I LOOKED AT THE FUND BALANCE, WONDERING, IS THERE ENOUGH MONEY TO PAY THE BILLS? WE STARTED TAKING A GOOD LOOK AT THAT.
IF YOU LOOK AT THE GRAPH ON THE RIGHT, THIS IS BASED ON THOSE NUMBERS THAT ARE IN THE UPPER LEFT, YOU WILL SEE WHAT THE FUND BALANCES ARE EXPECTED TO BE AT THE END OF EACH MONTH THROUGH THIS FISCAL YEAR, '25, '26.
THE ONES THAT ARE IN LIGHT BLUE ARE BECAUSE THEY ARE UNDER OUR RADAR OF HAVING AT LEAST 20 MILLION SITTING THERE TO PAY THOSE BILLS.
SOME MONTHS, THE BILLS ARE MORE AND SOME MONTHS THEY'RE LESS,
[00:20:04]
BUT PAYROLL ITSELF IS 18-20 MILLION A MONTH.WHICH SOUNDS LIKE A LOT OF MONEY, BUT THIS IS A LARGE DISTRICT.
YOU CAN SEE THE DARKER BLUE BARS ARE WHEN WE DO HAVE MORE MONEY, BUT THEN IT STARTS GOING DOWN.
WE COLLECT THE PROPERTY TAXES, AND IT STARTS GOING DOWN DOWN.
THIS IS THE CASH FLOW AT THE END OF THE MONTH.
BUT IN THE FINANCE AREA, WE'RE SWEATING A LITTLE BIT TO MAKE SURE THAT WE HAVE ENOUGH MONEY TO PAY PAYROLL, WHICH IS BEFORE THE END OF THE MONTH.
WE TOOK A LOOK AT THAT, MOVED IT BACK A COUPLE DAYS.
AT PAYROLL TIME, WHAT YOU WILL NOTICE IS THERE ARE SEVERAL MONTHS UNDER ZERO BECAUSE THE CASH FLOW ISN'T THERE.
FUND BALANCE IS NOT THE SAME AS CASH FLOW.
IN THE MONTHS OF AUGUST, SEPTEMBER, OCTOBER, NOVEMBER, AND DECEMBER, THE CASH FLOW AT THE TIME THAT WE'VE GOT TO HAVE THE MONEY IN THE BANK TO PAY THE PAYROLL WILL NOT BE THERE.
WE DON'T KNOW EXACTLY WHAT ALL THE BILLS ARE GOING TO BE, BUT THIS IS OUR EDUCATED ESTIMATE AT THIS TIME.
AUGUST IS NOW, AUGUST PAY ROLL IS COMING UP.
WE NEED TO BE FINANCIALLY SUSTAINABLE IN THE DISTRICT AND SO THE FIRST THING THAT WE'RE REQUESTING FIRST AND FOREMOST IS A TAX ANTICIPATION NOTE APPROVAL.
THE MAXIMUM WE CAN GET AT THIS POINT IN TIME IS 31.5 MILLION FOR THIS SHORT TERM LOAN THAT WE WILL PAY BACK AFTER WE GET PROPERTY TAXES IN FEBRUARY OF '26.
THE SECOND THING THAT WE'RE ASKING IS TO PROPOSE THAT 12 CENT INCREASE TO THE MAINTENANCE AND OPERATIONS TAX RATE, WHICH WILL GENERATE ABOUT $26 MILLION IN ANNUAL REVENUE TO HELP US RESTORE THE FUND BALANCE AND THE OTHER EXPENDITURES THAT DR. WRIGHT WAS TALKING ABOUT.
THIS IS THAT PART OF THE INFORMATION THAT WE HAVE TO PUT IN THE NEWSPAPER.
THAT $1,546 THAT WE THOUGHT WOULD STAY THE SAME IS NOW GOING TO BE OR WAS PUBLISHED AT $1.2746.
THERE'S VERY TIGHT TIMELINES WITH ALL OF THESE REQUIREMENTS.
ON AUGUST 6, IT WAS PUBLISHED IN THE PAPER WITH THAT INFORMATION, USING THE NEW CERTIFIED VALUES.
WE DID HAVE DECREASES TO THE PROPERTY VALUES WHICH WOULD DECREASE PROPERTY TAXES AS WELL.
IN THE GENERAL FUND, HOWEVER, FOR THE MOST PART, THE STATE WILL MAKE UP THAT DIFFERENCE.
THAT IS NOT THE CASE IN THE DEBT SERVICE FUND, BUT IN THE GENERAL FUND.
IT IS EXPECTED THAT THE HOMESTEAD EXEMPTION WILL INCREASE FROM 100-140,000.
WE WERE INSTRUCTED TO PROVIDE THE NOTICE IN THE NEWSPAPER AT THE $140,000 EXEMPTION AMOUNT.
THE LAST TIME THIS HAPPENED, IT PASSED WITH FLYING COLORS AT THE STATE, AND SO THEY FULLY EXPECT THAT TO HAPPEN AS WELL.
THAT WOULD INCREASE THAT PORTION OF THE TAXES, THAT MAINTENANCE TAX UP $0.12 FROM WHAT WE SAW ON THE LAST NOTICE.
LOOKING AT THIS TAX RATE AND FUND BALANCE HISTORY, WHICH DR. WRIGHT ALREADY BROUGHT THIS UP, THIS IS COMING FROM THE FLYER THAT'S BEEN PREPARED.
AGAIN, THAT BASIC STUDENT ALLOTMENT, THE SAME AT THE 6,160, THAT DOES NOT WORK FOR INFLATION.
THAT PROPOSED TAX RATE AT $1.27 46, AS DR. WRIGHT MENTIONED, IT IS EVEN LESS THAN IT WAS BACK IN 2023.
WE HAVE TO GO THROUGH A SERIES OF LOOKING AT,
[00:25:04]
WHERE IS OUR PROPOSED TAX RATE COMPARED TO WHAT IT'S ALLOWED TO BE? WE HAVE TO LOOK AT COMPARED TO THE PRIOR YEAR IN TOTAL, IN THE M&O RATE? IS IT LESS THAN THE VOTER APPROVAL RATE? IS IT BELOW THE MAXIMUM TAX RATE ALLOWED WITHOUT A TAX RATE ELECTION? IS IT BELOW THE VOTER APPROVAL ROLLBACK, NO NEW REVENUE TAX RATE? THE ANSWERS TO ALL OF THOSE IS NO.WE'RE PROPOSING THE $0.12 MORE, AND SO WE'RE NOT MEETING ALL OF THOSE REQUIREMENTS.
DEBT SERVICE TAX RATE IS FINE AS IT IS.
BECAUSE WE'RE NOT MEETING THOSE REQUIREMENTS, IN ORDER TO HAVE A TAX RATE AT $0.12 MORE, WE HAVE TO HAVE A TAX RATE ELECTION IN ORDER TO DO THAT.
AGAIN, ALL VERY TIGHT TIMELINES TO HAVE THAT ELECTION ON ELECTION DAY NOVEMBER 4.
THERE'S SOME INFORMATION OUT THERE ONLINE.
YOU SEE THE LINK THERE? SOME THINGS TO CONSIDER WHEN WE'RE THINKING ABOUT A TAX RATE INCREASE.
IT WOULD GENERATE ABOUT $26 MILLION FOR THE MAINTENANCE AND OPERATIONS, THE GENERAL FUND, AND THOSE FUNDING FORMULAS ACTUALLY FORCE US INTO A RECAPTURE SITUATION.
IT'S NOT THE NORMAL RECAPTURE SITUATION WHERE DISTRICT WHERE THE VALUES ARE JUST TOO HIGH AND YOU'RE BRINGING IN TOO MUCH PROPERTY TAX FOR THE NUMBER OF STUDENTS THAT YOU HAVE.
IT HAS TO DO WITH THE TYPES OF PENNIES THAT WE'RE ASKING FOR, AND THE FORMULA AUTOMATICALLY PUTS YOU INTO A RECAPTURE SITUATION.
WE HAVE THESE FIVE GOLDEN PENNIES.
WE SAW THAT WHERE WE HAD THE MAXIMUM COMPRESSED TAX RATE.
WE ADDED THE $0.05. THESE ARE GOLDEN.
THE REASON THEY'RE GOLDEN IS BECAUSE WE RECEIVE A LOT OF MONEY ON THOSE.
WE GET TO KEEP IT ALL AND GET EXTRA STATE MONEY.
THAT'S WHY THEY'RE CALLED GOLDEN. WE HAVE FIVE.
WE'RE ALLOWED TO HAVE EIGHT. THERE'S THREE MORE THAT WE CAN HAVE WITH NO RECAPTURE AND THE EXTRA STATE MONEY. THAT'S NICE.
THERE ARE NINE MORE PENNIES ON THE TAX RATE THAT WE CAN HAVE, AND THOSE ARE CALLED COPPER.
SOMETIMES YOU'LL HEAR PEOPLE TALK ABOUT GOLDEN PENNIES, COPPER PENNIES, WHAT ARE ALL THOSE? WELL, COPPER IS STILL NICE.
WE GET A LOT OF MONEY OFF OF THOSE, BUT NOT AS MUCH OFF OF THOSE.
THOSE ARE OUR MAXIMUM THAT WE CAN GO UP TO THE THREE PENNIES PLUS THE NINE PENNIES SO HENCE THE 12.
IN DISTRICTS THAT ARE TRUE RECAPTURE DISTRICTS, THEY ALSO HAVE TO HAVE AN ELECTION TO ASK THE VOTERS, HOW ARE WE GOING TO SEND THIS MONEY BACK TO THE STATE? NO, IF WE WILL, BUT HOW? IN OUR CASE, WE DON'T HAVE TO BECAUSE IT'S NOT A TRUE RECAPTURE SITUATION.
THEY WILL JUST LET US NET THAT WITH STATE FUNDS THAT WE DO RECEIVE.
WE DON'T HAVE TO HAVE AN ELECTION FOR THAT PART OF IT, BUT WE DO HAVE TO SEND TEA AN AGREEMENT.
THAT WILL ALSO BE ON TONIGHT'S AGENDA FOR YOU TO APPROVE THAT AGREEMENT THAT WE WILL NET WITH THE STATE FUNDS.
ACTUALLY, EVEN IF WE DIDN'T HAVE THIS 12 CENT TRE, WE STILL WOULD HAVE TO DO IT BECAUSE WE'RE GETTING CLOSE, ACCORDING TO THE STATE, CLOSE TO BEING A RECAPTURE, AND SO THEY WANT YOU TO HAVE THIS DOCUMENT SIGNED REGARDLESS.
I THINK IT'S BEEN SIGNED FOR THE LAST COUPLE OF YEARS HERE.
THIS IS A PICTURE OF THE RESOLUTION THAT YOU WILL SEE LATER ON IN THE PACKET TO SET THE PROPERTY TAX RATE.
THE MAINTENANCE AND OPERATIONS AT THAT HIGHER RATE OF 7,869, SAME DEBT SERVICE TAX RATE EQUALS THE COMBINED TOTAL TAX RATE OF $1.2746.
WE HAVE TO SAY, IN ALL CAPS, THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.
THE TAX RATE WILL EFFECTIVELY BE RAISED BY 15.39%, AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $120 ANNUALLY.
THOSE ARE THEIR REQUIRED PARAMETERS.
THERE'S NOT THAT MANY HOMES THAT ARE $100,000,
[00:30:02]
BUT IF IT WERE, THIS IS WHAT IT WOULD BE.BUT WE CAN SEE IN A COUPLE MORE SLIDES HERE HOW THAT $120 COMES INTO PLAY.
SOME MORE CONSIDERATIONS REGARDING A TAX RATE INCREASE.
THE CURRENT AVERAGE HOMESTEAD MARKET VALUE IS ABOUT 370,000.
WE ARE GOING TO SEE THAT HOMESTEAD EXEMPTION INCREASE OF 40,000.
FOR THAT $370,000 HOME, THOSE HOMES WOULD HAVE SEEN ON AVERAGE.
NOTHING IS EXACT. IT'S NOT EXACT TO YOU GET YOUR TAX BILL, BUT ON AVERAGE, THEY WOULD HAVE SEEN A $538 REDUCTION IN HAYES CISD PROPERTY TAXES.
IF THE $0.12 TRE PASSES, HOMEOWNERS WILL STILL SEE A DECREASE IN THEIR TAXES DOWN TO $275.
THEY WILL STILL RECEIVE A DECREASE FOR THAT $370 MARKET VALUE HOME.
THAT WOULD PROVIDE THIS SCHOOL DISTRICT $103 PER STUDENT PER YEAR OR LESS THAN SIX DOLLARS A DAY FOR EVERY STUDENT.
DUE TO INFLATION ALONE, AS DR. WRIGHT ALLUDED TO, WE NEEDED OVER $100 IN THE BASIC ALLOTMENT JUST TO MAKE US WHOLE COMPARED TO INFLATION, AND IT ACTUALLY WOULD BE $1,540 WITH THAT HUGE INFLATION AMOUNT.
HERE'S A PICTURE OF THE INFLATION CALCULATOR, AND THIS COMES FROM US INFLATION CALCULATOR.COM, WHICH IS BASED ON THE US BUREAU OF LABOR STATISTICS.
IF YOU GO FROM 2020-2025, IT SHOWS WHAT WAS A DOLLAR WOULD COST YOU $1.25 NOW, OR IF YOU LOOK AT THE OTHER WAY AND YOU START WITH TODAY AND GO BACKWARDS, WHAT WE WOULD PAY FOR A DOLLAR TODAY WOULD HAVE BEEN $0.80 BACK AT THAT TIME.
WE KNOW WE HAVE SOME HOMESTEADS THAT ARE MUCH MORE THAN THE 370, WHICH MEANS WE HAVE SOME THAT ARE LESS AS WELL.
BUT FOR THE ONES THAT ARE MORE TO GET AN IDEA FOR A HOMESTEAD THAT IS MORE THAN THE AVERAGE MARKET VALUE.
FOR EVERY $100,000 INCREASE IN MARKET VALUE, THAT'S WHERE WE WOULD SEE THAT $120 BEING PAID FOR EVERY HUNDRED THOUSAND.
FOR EXAMPLE, IF WE HAD A HOUSE MARKET VALUE OF 500,000, THEY STILL WOULD HAVE A LITTLE SAVINGS OF $42.
A $600,000 HOUSE NOW, WE'D HAVE TO ADD 120, AND THEY WOULD HAVE AN INCREASE OF 78, 700,000, THEY WOULD HAVE AN INCREASE OF 200 AND AN $800,000 MARKET VALUE HOME, $320.
>> AGAIN, EVERY HOUSE IS DIFFERENT.
THEIR EXEMPTIONS ARE DIFFERENT ON EVERY HOME.
THESE ARE JUST SOME ESTIMATED NUMBERS FOR US TO GET AN IDEA OF WHAT THOSE COSTS WOULD BE.
THAT IS THE END OF THE PUBLIC HEARING.
>> THANK YOU, MISS ATMERZ. I WOULD LIKE TO POINT OUT ONE THING THAT YOU WENT OVER PRETTY QUICK, BUT WE DID ADOPT A BALANCED BUDGET THIS YEAR.
WE DID NOT ADOPT A DEFICIT BUDGET LIKE WE HAVE IN YEARS PAST.
WE ADOPTED A BALANCED BUDGET. I'M OKAY. THANK YOU.
I KNOW YOU'RE GOING TO BE ON STAND BY FOR THE REST OF THE MEETING TO ANSWER SOME SPECIFIC QUESTIONS, BUT HERE WE'RE GOING TO MOVE INTO OUR PUBLIC FORUM PORTION OF THE MEETING.
MISS FLORIA, DO WE HAVE ANY GREEN SHEETS FOR TONIGHT? NONE. WE'RE GOING TO BE MOVING ON TO ITEM E1 ON PAGE 18.
[E.1. Consideration and possible appointment of a Texas Association of School Boards Delegate and Alternate Delegate for the Annual TASA/TASB Convention]
THIS IS GOING TO BE FOR US TO ASSIGN A DELEGATE AND AN ALTERNATE FOR OUR DELEGATE ASSEMBLY FOR THE ANNUAL TAZBY CONVENTION.I MOVE THAT THE HAY'S BOARD OF TRUSTEES MAKE JOHNNY FLORES OUR DELEGATE AND TRUSTEE ESPERANZA ROSCO OUR ALTERNATE DELEGATE.
ANY FURTHER DISCUSSION? SEEING NONE.
CONGRATULATIONS. THANK YOU, MR. FLORES, AND MISS ROSCO, FOR BEING OUR DELEGATES THIS YEAR TO REPRESENT US AT THE TAZI CONVENTION. IT'S IMPORTANT WORK.
[00:35:03]
YOU'RE GOING TO LEARN A LOT, AND WE DO IMPORTANT STUFF UP THERE, SO THANK YOU FOR TAKING THAT ON.APPRECIATE IT. ALL RIGHT, MOVING ON TO E2 ON PAGE 9.
[E.2. Consideration and possible Acceptance of Certified Property Values for 2024 Tax Year]
THIS IS GOING TO BE MISS ATMERZ.THIS IS GOING TO BE THE CONSIDERATION OF POSSIBLE ACCEPTANCE OF CERTIFIED PROPERTY VALUES FOR THE 2025 TAX YEAR.
YOU WANT TO GIVE US A RECAP ON WHAT THIS ONE IS AS IT TIES TO THE OVERALL WHAT WE'RE DOING TONIGHT.
CAN YOU PUT YOUR BIKE BACK ON?
>> THANK YOU. YES, IN THE BOOK ON PAGE 10, WE SEE THAT WE HAVE THE THREE DIFFERENT APPRAISAL DISTRICTS, HAYES, CALDWELL AND TRAVIS, AND HAYES IS THE LARGEST PART, NEARLY 98% FOR THE NET TAXABLE VALUE OF 18 BILLION, AND SO YOU HAVE SOME DOCUMENTS IN HERE FROM THE VARIOUS TAXING DISTRICTS, AND SO WE WOULD ASK THAT YOU ACCEPT THE CERTIFIED PROPERTY VALUES.
>> THANK YOU, TEAM. THIS IS ROUTINE IN NATURE.
WE DO THIS EVERY YEAR TO ADOPT THE VALUES.
DOES ANYBODY HAVE ANY QUESTIONS TO MY RIGHT ON THIS ITEM. MY LEFT? NO. THE SUGGESTED MOTION, NO, I'M JUST GOING TO MOVE THAT THE HAYES DEPARTMENT OF TRUSTEES ACCEPT THE CERTIFIED PROPERTY VALUES AS PRESENTED.
ANY FURTHER DISCUSSION? SEEING NONE. ALL THOSE IN FAVOR? AYE. I GOT YOU.
[E.3. Consideration and possible approval to name the Chief Financial Officer as Tax Rate Calculator]
WE'RE MOVING ON TO E3 ON PAGE 15, TEAM.THIS IS GOING TO BE THE CONSIDERATION OF POSSIBLE APPROVAL TO NAME THE CHIEF FINANCIAL OFFICER AS A TAX RATE CALCULATOR.
AGAIN, ANOTHER ROUTINE NATURE ITEM THAT WE HAVE TO DO.
MISS HERS IS NEW, SO WE ARE ASKING THAT THIS ITEM WE MAKE HER OUR TAX RATE CALCULATOR.
I DON'T KNOW WHAT YOU WANT TO CALL THAT. NAME THE CHIEF FINANCIAL OFFICER WAS OUR TAX RATE CALCULATOR.
AS YOU'VE ALREADY SHOWED BEFORE THAT OUR TAX RATES MATCH.
SHE'S ALREADY MATCHED THE TA THIS YEAR.
WE'VE PROVEN THAT SHE'S BEEN ABLE TO DO THAT FOR US, SO WE ARE JUST GOING TO HAVE TO NOW VOTE HER INTO THAT.
I MOVE THAT THE HAYES BOARD OF TRUSTEES NAMES CHIEF FINANCIAL OFFICER DEBORAH ATMERZ AS THE TAX RATE COLLECTOR AS PRESENTED.
ANY FURTHER DISCUSSION? SEEING NONE. ALL OF THOSE IN FAVOR? AYE. OPPOSE. MOTION PASSES 7-0.
WE RUN ALONG. NOW WE'RE ON TO E4 ON PAGE 17.
[E.4. Consideration and possible adoption of a resolution to set the 2025-2026 Tax Rate for Hays CISD]
THIS IS THE CONSIDERATION OF POSSIBLE ADOPTION OF THE RESOLUTION TO SET THE PROPERTY TAX RATE FOR YEAR 2025 IN FISCAL YEAR 2025, 2026.MISS OFFMER, WOULD YOU LIKE TO GIVE US A LITTLE RECAP ON THIS ONE FROM YOUR FIRST SLIDE?
>> YES. THIS WAS IN THE PUBLIC HEARING WHERE IT SHOWED THAT THE M&O RATE AT 0.7869, THE DEBT SERVICE RATE AT 4877, WHICH IS THE SAME FOR A TOTAL TAX RATE OF 1.2746, AND THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE, AND THIS TAX RATE WILL EFFECTIVELY BE RAISED BY 15.39%, AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $120 ANNUALLY.
>> THANK YOU. TEAM, IN ESSENCE, THIS IS THE VOTE WHERE WE'RE AUTHORIZING THE TAX RATE RECOMMENDED BY MISS ATMERZ TO GO OUT FOR NOVEMBER AND OUR ELECTION IN NOVEMBER.
DOES ANYBODY HAVE ANY QUESTIONS ON THIS ITEM? LOOK TO MY RIGHT, MR. VAL?
THANK YOU SO MUCH FOR A LOT OF INFORMATION.
FORGIVE ME, I JUST I WANT SOME CLARITY.
SO WE'RE PROPOSING AN M&O TAX RATE OF AN INCREASE OF $0.12.
YOU SAID THREE OF THOSE CENTS ARE GOLDEN PENNIES.
THOSE $0.03 WE KEEP IN OUR DISTRICT.
THE OTHER NINE PENNIES ARE COPPER PENNIES.
IF YOU CAN JUST TELL ME AGAIN, WHAT DOES A COPPER PENNY MEAN? I KNOW WE GOT LOTS OF PEOPLE THAT ARE LISTENING AND LOTS OF PEOPLE THAT ARE CHIMING IN ON SOCIAL MEDIA.
I JUST WANT TO ADD LAYMAN'S TERMS, IF YOU WILL.
>> THE STATE ALLOWS US TO HAVE THE TOTAL TAX RATE AT THE TIME WHEN IT WAS VOTED IN WAS $1.17 OR MAINTENANCE AND OPERATIONS,
[00:40:04]
AND SO NINE OF THOSE PENNIES ARE WHAT THEY CALL COPPER.THAT MEANS THAT WE WILL GET A LOT OF MONEY OFF OF THEM, BUT NOT ALL OF IT.
SOME OF IT WILL HAVE TO BE SENT BACK TO THE STATE IN THE FORM OF RECAPTURE, EITHER WE SEND IT TO THEM OR THEY JUST KEEP PART OF IT, WHICH IS WHAT IS HAPPENING WITH THESE NINE PENNIES.
IN OUR CASE, IT'S THE AMOUNT THAT'S SENT BACK, I HAVE THE CALCULATIONS HERE SOMEWHERE, BUT IT'S FOR THE NINE PENNIES, IT'S JUST OVER $1 MILLION THAT WE WOULD BE FORFEITING, BASICALLY.
IT'S STRICTLY DUE TO THEIR FORMULAS.
IT'S ABOUT I WANT TO SAY $120,000 FOR EVERY PENNY THAT WE DON'T GET TO KEEP.
FOR THE 1.4 TOTAL, THEY GET TO HAVE 120,000 OF IT.
>> THANK YOU FOR THAT. THAT'S A VERY BIG NUMBER, $1 MILLION THAT WE WOULD BE JUST LETTING THE STATE CAPTURE BACK FROM US OR WHATEVER.
I'M SORRY, WHAT'S THE NET GAIN? TO OUR MMO? BUDGET A LIKE PROJECTED.
ONE MILLION 270,000, SOMETHING LIKE THAT. FOR EVERY PENNY.
>> IF WE'RE ADOPTING THIS IF THIS IS OUR RIGHT THAT WE ADOPT TONIGHT.
WHAT IS THE NET GAIN TO OUR POCKETS?
>> THE TOTAL INCREASE WAS 26.3, 26.4 MILLION, THE NET.
>> 26.3, AND THEN THE ONE MILLION ON TOP OF THAT.
>> NO, THE 26.3 IS THE NET 26.4, SOMETHING LIKE THAT.
IF THAT'S THE NET, THE TOTAL WILL EXTRA WILL COLLECT LESS WHAT WE'RE SENDING TO THE STATE.
>> IN ESSENCE, WE'RE TRYING TO CAPTURE 26.3, $26.4 MILLION.
>> AT THE COST OF $27 MILLION, IF YOU WILL, BECAUSE AT THAT ONE MILLION, AGAIN [OVERLAPPING] WE'RE COLLECTING 27 MILLION, A MILLION OF THAT IS GOING BACK TO THE STATE.
>> I JUST WANT TO MAKE SURE THAT I CLEARLY UNDERSTAND EXACTLY WHAT I MEAN, IT'S EASY TO TALK A PENNIES, BUT ONE ARE THE BIGGER NUMBERS? I MAY HAVE SOME OTHER QUESTIONS, BUT I'LL PAUSE THERE.
>> HEY, MISS ATMERZ, THANK YOU SO MUCH THAT PUBLIC HEARING WAS FANTASTIC.
YOU HAVE A REALLY GREAT GIFT FOR COMMUNICATING VERY COMPLICATED INFORMATION IN A WAY THAT'S EASY TO DIGEST WITHOUT MAKING ME FEEL STUPID, SO I APPRECIATE THAT VERY MUCH.
I DID HAVE A COUPLE OF QUESTIONS GOING BACK TO THAT AND ON THIS ITEM SPECIFICALLY.
WE'RE BASICALLY SAYING, IF WE APPROVE THIS, WE ARE AUTHORIZING THE DISTRICT TO GO OUT FOR THE TRE.
IT'S LATER ON, BUT SO HOW DO WE GET ON [OVERLAPPING]
>> THAT'S WHAT I UNDERSTAND. SO IF FOR SOME REASON, THE TRE FAILED, WE HAVE TO COME BACK AND DO A DIFFERENT TAX RATE?
>> AS MUCH AS I KNOW. THIS IS NEW FOR ALL OF US. [LAUGHTER]
>> I'VE NEVER ADOPTED A TAX RATE THAT WASN'T ACTUALLY APPROVED BY THE VOTERS. WE'RE A NEW TERRITORY.
>> YES. THIS IS THE REQUIRED ORDER, SO WE HAVE TO ADOPT THE TAX RATE.
THEN [OVERLAPPING] ASK FOR PERMISSION TO ACTUALLY KEEP IT.
YES. WE DO HAVE OUR TAX ATTORNEY AND OUR FINANCIAL ADVISOR HERE THIS EVENING.
IF WE NEED MORE DETAILED EXPLANATIONS.
WE'RE WILLING TO DO THAT FOR US.
>> I FEEL LIKE THAT ANSWERS MY QUESTION.
IT FEELS SIMILAR TO WHEN WE DO, APPROVAL FOR BOND THINGS PRIOR TO THE BOND ELECTION PASSING THAT THING.
EARLIER, WE TALKED ABOUT AND I DON'T KNOW IF I CAN TALK ABOUT THIS YET, BUT WHEN WE TALK ABOUT COST OF LIVING AND HOW THIS IS GOING TO IMPACT COST OF LIVING ADJUSTMENTS FOR FOLKS, IN THIS PRESENTATION, WE'RE SEEING INFLATION AT 18%, BUT WE'RE SAYING COST OF LIVING ADJUSTMENTS FOR 3%.
I JUST WANT TO MAKE SURE WE'RE CAREFUL WITH OUR LANGUAGE AROUND WHAT WE MEAN BY COST OF LIVING, BECAUSE IT FEELS LIKE MORE THAN 3% IN LIFE, BUT THAT'S WHAT WE'RE CALLING OUR COST OF LIVING ADJUSTMENT, SO AS WE'RE MARKETING THIS.
THEN WANTED TO ASKED DR. WRIGHT ABOUT INSURANCE.
ARE WE RECONSIDERING INSURANCE AT NO COST OR DOING ANYTHING DIFFERENT THERE?
>> NO, BUT IF THIS WERE TO PASS,
[00:45:01]
THEN THE INCREASE FOR THE OVERALL WOULD HELP WITH THAT ADDITIONAL AMOUNT PER MONTH.>> GOT IT. THANK YOU. THEN ON THE BACK OF THIS, WE SEE THE DOCUMENTATION THAT THE PRESIDENT AND THE SECRETARY WILL SIGN.
DO YOU HAVE ANYWHERE THE ELECTION LANGUAGE? I WANT TO SEE, AND MAYBE MR. KYLE CAN HELP US WITH THAT, BUT I HAVE NEVER SEEN THIS ON A BALLOT.
SO I'D LIKE TO SEE THE EXACT LANGUAGE THAT THE VOTERS WOULD SEE IN THE ELECTION IF THIS WERE TO GO TO THAT.
>> I THINK WE WILL BE WORKING ON THAT.
SOME OF THE WORDING HAS BEEN CHANGING AND NEW WORDING THIS YEAR, AGAIN.
>> ISN'T IT ALL CAPS? DOES IT HAVE TO BE IN ALL CAPS, OR DO YOU LIKE TO DO IN ALL OF CAPS, MR. KYLE?
>> GOOD EVENING, MR. PRESIDENT, BOARD MEMBERS, DR. WRIGHT, I THINK ON PAGE 46 OF YOUR BOARD BOOK, YOU'LL SEE THE BALLOT LANGUAGE, AND THAT'S WHAT VOTERS WILL SEE IS TO THE TOP OF THE PAGE.
>> PERFECT, SO NOT IN ALL CAPS OR WOULD BE IN ALL CAPS?
>> NO, IT'S NOT IN ALL CAPS. WHAT'S IN ALL CAPS IS AT THE TOP, YOU SEE THIS IS.
>> YOU WOULD DO THAT IN ALL CAPS?
>> BUT NOT THE REST? SHOULD BE AT THE VERY BEGINNING?
>> THIS IS A TAX INCREASE PER? THAT WAS JUST AMENDED IN THE LAST SESSION.
>> OH, WONDERFUL. DID THEY DO THAT FOR BOND ELECTIONS AS WELL?
>> PERFECT. THANK YOU VERY MUCH. THIS IS HELPFUL.
>> ON THE TAX RATE RESOLUTION, THAT'S WHERE THAT HAS TO ALSO BE IN ALL CAPS, AND ON OUR WEBSITE, WE'LL HAVE THAT ON THE FINANCE PAGE. IT HAS TO BE.
>> EVEN THOUGH YOU DID A LOT OF MATH FOR US SHOWING THAT THIS WILL BE A DECREASE IN TAXES FOR A LOT OF FOLKS UNLESS YOU HAVE A $600,000 HOUSE.
>> IT'S THE RATE IS WHAT'S INCREASING.
>> IT DOESN'T SAY THIS IS A TAX RATE INCREASE, MISS ATMERZ.
IT SAYS THIS IS A TAX INCREASE.
>> WE LOVE OUR FRIENDS AT THE LEDGE, DON'T WE? THANK YOU.
>> YES, THOSE ARE ALL MY QUESTIONS.
>> YES, THANK YOU. I KNOW THERE'S SOME QUESTIONS ABOUT THE WORDING.
SPECIFICALLY TO TALKING ABOUT E4.
WHAT WE'RE LOOKING AT IS TO ADOPT THE PROPOSED TAX RATE OF 1.2746, CORRECT?
>> HOWEVER, I KNOW A LOT OF PEOPLE WERE HAVING SOME ANGST OVER IT SAYING THE TAX RATE WILL EFFECTIVELY BE RAISED BY 15.39%, SO THEY THOUGHT THAT THEIR PROPERTY TAXES WERE GOING TO GO UP BY 15.39%.
CAN YOU TALK ME THROUGH THAT OR MR. KYLE OR SOMEONE, CAN YOU TALK ME THROUGH THAT AND WHAT IT REALLY MEANS? BECAUSE IT IS SCHOOL FINANCE IS A BEAST IN ITSELF, SO IF YOU CAN WALK US THROUGH THAT FOR THE LAY PERSON LIKE MYSELF, THAT I'M NOT A FINANCIAL PERSON, TALK ME THROUGH THAT.
>> THERE IS A FORMULA THAT WE HAVE TO USE USING THE TAX RATES, AND WHEN YOU PLUG IN ALL THE NUMBERS INTO THE FORMULA, IT TELLS YOU WHAT THAT PERCENT IS.
WE DON'T HAVE THE OPTION TO CHANGE THAT UNFORTUNATELY.
>> ARE MY PROPERTY TAXES GOING UP BY 15.39%, OR IS THAT SOMETHING THAT YOU NEED TO WRITE BECAUSE OF THAT FORMULA TO INCLUDE ALL THOSE NUMBERS?
>> I DON'T THINK YOU WANT TO GET IT MORE COMPLICATED THAN THE SLIDE THAT SHOWED IF YOU HAVE A MARKET VALUE OF THIS, YOUR TAX WILL COME DOWN.
>> CAN YOU TURN BACK ON THAT SLIDE ACTUALLY, AND WALK US THROUGH THAT SLIDE AGAIN.
>> THIS IS SOMETHING THAT KEEPS COMING UP OVER AND OVER.
>> WE WANT TO MAKE SURE THAT WE'RE ALSO ABLE TO EXPLAIN IT CORRECTLY.
FOR OUR FOLKS AT HOME, OR THE FOLKS LISTENING, THAT THEY CAN ALSO HAVE AN IDEA OF WHAT THIS MEANS.
THERE IS PRESCRIBED LANGUAGE THAT WE HAVE TO USE.
IT IS VERY COMPLEX, THE WAY IT'S LAID OUT, LIKE MISS PETRI SAID, THANK YOU TO OUR STATE LEGISLATORS WHO HAVE MANDATED THIS.
>> BUT IF YOU CAN WALK US THROUGH THOSE CONSIDERATIONS, I THINK THIS IS A VERY GREAT SLIDE TO REALLY SHOWCASE WHAT THIS MEANS, BUT, OF COURSE, PEOPLE ARE GOING TO BE FOCUSED ON THAT WORDING SO TALK US THROUGH THIS AGAIN.
>> WHAT WE DO NOT HAVE HERE IS WHAT THE TAXES ARE THAT THEY'RE PAYING.
WE'RE LOOKING AT IT FROM THE OTHER ANGLE, WHICH IS HOW MUCH THEY WOULD SAVE BY HAVING THE $40,000 EXEMPTION INCREASE, AND SO THEY WOULD HAVE SAVED $538 ON THE AVERAGE MARKET HOME OF 370,000.
[00:50:09]
THEY WOULD HAVE SAVED 538.IF WE DO THIS $0.12, THEY WON'T.
THEY'LL SAVE ABOUT HALF OF IT, 275.
>> THEN WHEN YOU SHOW IF THEY'RE NOT A 370, HOW MUCH THEY CAN EXPECT THEIR TAXES TO CHANGE..
IF THEY HAVE THE 600,000, THEY'RE GOING TO HAVE AN INCREASE OF 78, BUT THE DIFFERENCE REALLY IS THE 538 PLUS THE 78.
BECAUSE THEY'RE NOT SAVING THE 538, THEY'RE PAYING IN 78 MORE.
THAT 600 AND WHATEVER IT IS, $15 IT'S THE INCREASE.
THEN IT'S JUST THEIR HAYES TAXES.
IT'S NOT ALL OF THE TAXES THAT THEY HAVE, COUNTY, CITY, WHATEVER ELSE THEY HAVE.
THE 15% CALCULATION, THEIR FORMULA STRICTLY USES THOSE NUMBERS OF WHAT THEY WOULD HAVE SAVED COMPARED TO WHAT IT'S GOING TO INCREASE.
IT IS A PRESCRIBED FORMULA THAT THEY HAVE, SO.
>> DEPENDING ON THE COST OF SOMEONE'S HOUSE.
>> THEY MIGHT STILL BE SAVING SOME MONEY, EVEN WITH THIS TAX RATE INCREASE THAT WE ARE PROPOSING.
>> BECAUSE THEY'RE NOT GOING TO SAVE.
>> YES. DEPENDING ON THEIR HOUSE.
NOT EVERYONE IS GOING TO HAVE A 15.39% INCREASE TO THEIR PROPERTY TAXES, IS THAT CORRECT FOR ME TO SAY?
>> THEY WON'T PAY MORE FOR HAYSCISD UP TO THAT 550, MAYBE, $550,000 MARKET VALUE HOME, THEY'RE NOT GOING TO PAY MORE.
THEY'RE JUST NOT GOING TO SAVE WHAT THE STATE INTENDED FOR THEM TO SAVE.
DEPENDING ON MY HOUSE AND THE COST OF MY HOUSE, I MIGHT NOT SEE AN INCREASE TO MY TAX RATE, BECAUSE IF I HAVE A $500,000 HOUSE, I'M STILL SAVING $42 BECAUSE OF THE TAX EXEMPTION.
CORRECT? NOT EVERY TAXPAYER IS GOING TO SEE AN INCREASE TO THEIR PROPERTY TAXES.
CAN YOU ARTICULATE THAT BACK TO ME BECAUSE WE CANNOT SAY IT ENOUGH.
>> YOU JUST SAID IT EXACTLY RIGHT.
COMPARED TO THE LAST TAX STATEMENT FOR THIS YEAR, BECAUSE WE FEEL CERTAIN THAT THE $40,000 INCREASE IN THE HOMESTEAD EXEMPTION WILL PASS, THE MAJORITY OF THE PEOPLE, INCLUDING THE AVERAGE HOME OWNER OR HOME PRICE HOME OWNER WILL SAVE MONEY, AND THEN THOSE THAT HAVE A LITTLE BIT MORE WILL STILL HAVE AN OPPORTUNITY TO PAY LESS THAN THEY DID THE PREVIOUS YEAR.
>> ALSO, JUST A COUPLE MORE CAVEATS ON THAT.
>> NOT EVERY HOME OWNER HAS A HOMESTEAD EXEMPTION.
BECAUSE YOU CAN ONLY HAVE ONE HOMESTEAD EXEMPTION IN THE STATE OF TEXAS.
THEY MIGHT HAVE A HOUSE IN FREDERICKSBURG, AND THEY HAVE A HOMEOWNERS EXEMPTION ON IT THERE, SO THEY CAN'T HAVE IT HERE.
THE OTHER THING IS THE OVER 65 EXEMPTION, AND THE DISABLED EXEMPTIONS ARE GOING UP FROM 10,000-60,000 OR 15-65 ANYWAY, IT'S GOING UP 50,000 EACH.
IF SOMEBODY IS IN THOSE CATEGORIES, THEY'RE EVEN HAVING MORE OF AN EXEMPTION AS WELL.
THAT'S GOING TO GO TO THE VOTERS ALSO IN NOVEMBER, FULLY EXPECTED TO PASS.
WE DIDN'T ACCOUNT FOR ANY OF THOSE IN HERE BECAUSE JUST A CERTAIN PERCENTAGE OF YOUR POPULATION MEETS THOSE REQUIREMENTS.
>> I JUST WANT TO MAKE SURE THAT WE CLEARLY STATED OVER AND OVER.
BECAUSE THERE'S A LOT OF MISINFORMATION ALREADY ABOUT THE POSSIBILITY OF GOING OUT FOR A TAX RATE INCREASE, GOING OUT FOR THIS TAX RATIFICATION, WHERE PEOPLE THINK THAT EVERYBODY'S GETTING A 15.39% INCREASE TO THEIR PROPERTY TAXES.
THAT'S WHY I JUST WANT TO BE CLEAR AND SAY IT OVER AND OVER, DEPENDING ON YOUR HOUSE, AND IF YOU HAVE A HOMESTEAD EXEMPTION, YOU MAY OR MAY NOT REALIZE A SAVINGS.
[00:55:03]
YOU MIGHT HAVE A SLIGHT INCREASE, BUT $78 ON A $600,000 HOME IS NOT 15.39%.I'M NOT A MATHEMATICIAN LIKE MR. JEFF HERE, BUT IT DOESN'T JIVE.
THAT NUMBER, WHICH WE HAVE TO PUBLISH, AND THAT IS REALLY HIGHLIGHTED IN IN CAPSINA, THERE'S MORE TO IT.
THERE'S A LOT MORE VARIABLES ASSOCIATED WITH IT, SO WE REALLY HAVE TO LOOK AT THOSE FINE DETAILS.
NOT ALL OUR TAXPAYERS ARE GOING THERE.
I JUST WANT TO BE CLEAR ABOUT THAT.
>> I HAVE A MILLION OTHER QUESTIONS, BUT NOT IN REGARDS TO THIS AGENDA ITEM, SO I WILL HOLD THE REST OF MY QUESTIONS. THANK YOU.
>> YES. THANK YOU, MR. ATMERZ.
I'LL BE HONEST, SO I WAS A LITTLE WORRIED BECAUSE OF THE PRESENTATION WHEN I LOOKED AT IT OVER THE WEEKEND.
I WAS LIKE, [INAUDIBLE] IS GOING TO BE BUSY AND A LOT OF INFORMATION.
I DIDN'T ENVY YOUR POSITION OF TRYING TO EXPLAIN IT ALL, BUT I THINK YOU DID A GREAT JOB OF TRYING TO BREAK IT DOWN, AS OTHERS HAVE NOTED. THANK YOU.
I AM CURIOUS ABOUT HOW THE STATE ACTUALLY CALCULATES THAT 15.39% BECAUSE BY MY MATH, WE WENT FROM 1.1569 TO POTENTIALLY 1.2746, WHICH IS A 10.17% CHANGE.
I'M CURIOUS HOW THEY'D DO THE MATH.
>> I HAD THAT NUMBER FIRST [LAUGHTER] THEN WHEN I WENT AND I WAS LOOKING FOR THE NUMBERS THAT THEY REQUIRED THAT WE PUT IN THERE, IT CAME YES.
>> GOOD TOO MATH. OBVIOUSLY, I KNOW, JUST AGAIN, GOLDEN PENNIES, ALWAYS STAY HOME.
COPPER PENNIES, THEY ARE SUBJECT TO RECAPTURE.
NOW WE HAVE A RECAPTURE LIGHT, I'LL CALL IT HERE, AS YOU SOMEWHAT ALLUDED TO, AND I'LL SAY FULL RECAPTURE, WHICH WE'RE EDGING CLOSER, I GUESS TO BEING A RECAPTURE DISTRICT, BUT I KNOW HOW CLOSE WE ARE.
WHAT HAPPENS IF WE PASS THIS? THE VOTERS APPROVE IT.
NEXT YEAR, LET'S SAY WE GO INTO FULL RECAPTURE.
WHAT HAPPENS TO THOSE COPPER PENNIES THEN? THAT MAKES SENSE.
>> I DON'T THINK THEY CHANGE, BUT WE WOULD BE FORCED INTO HAVING AN ELECTION FOR RECAPTURE, SO THAT THEY CAN VOTE HOW THEY WANT US TO SEND THE MONEY TO THE STATE.
THERE'S DIFFERENT OPTIONS LIKE YOU CAN DETACH PROPERTY, YOU CAN GIVE MONEY TO ANOTHER DISTRICT.
THERE'S DIFFERENT THINGS THAT YOU CAN DO.
IT'S NOT IF YOU WILL, BUT HOW YOU WILL.
THE COPPER PENNY STAY THE SAME AS MUCH AS I KNOW.
>> DO YOU KNOW A OFF TOP OF YOUR HEAD? WHAT OUR YIELD IS PER GOLDEN PENNY, THE POTENTIALLY?
>> A HUNDRED AND FIFTY DOLLARS SOMEWHERE. MAYBE.
>> COPPER PENNY YIELDS LESS BECAUSE WE'RE GIVING A PORTION OF IT BACK TO THE STATE AND THE WAY THEIR FORMULA WORKS.
>> THE MORE THE PROPERTY VALUES GO UP OR THE NUMBER OF STUDENTS GO DOWN, THE WEIGHTED AVERAGE DAILY ATTENDANCE, YOU WILL SEND MORE BACK.
I MEAN, THERE ARE OUR DISTRICTS SENDING 60, 70, 80. SOME OF THEM.
THEY'RE REALLY TINY DISTRICTS, THEY'RE SENDING LIKE, ALMOST ALL THEIR MONEY BACK TO THE STATE.
>> WHY NOT? WHEN AISD HAD THEIR MAJOR ELECTION IN 2024, IT WAS BASICALLY ALL COPPER PENNIES, AND THEY ARE ONLY KEEPING 25% OF EVERY DOLLAR.
THEY'RE KEEPING $0.25 OF EVERY DOLLAR THAT THEIR VOTERS APPROVED.
THIS IS WHAT WE LOOK LIKE FOR THIS YEAR.
HOW DOES THIS LONG TERM AFFECT US AS WE EDGE CLOSER TO BEING A FULL RECAPTURED DISTRICT, AND OUR VOTERS.
>> THERE WOULD BE A LOT OF GUESSING IN THAT AND WHAT'S GOING TO HAPPEN IN THE FUTURE.
FOR RIGHT NOW, THOUGH, THE REALITY IS, WE DON'T HAVE ENOUGH MONEY TO PAY OUR BILLS.
THAT'S WHY WE'RE ASKING FOR BOTH OF THESE ITEMS. THE TAX RATE CAN BE CHANGED IN THE FUTURE.
YOU DON'T HAVE TO TAX THAT HIGH.
IF FOR SOME REASON, THE STATE DECIDED TO GIVE US MORE, AND WE FELT LIKE WE WANTED TO DECREASE THE TAX RATE.
I WILL TELL YOU THAT THIS LAST GO ROUND, WHEN THEY INCREASED THE HOMESTEAD EXEMPTIONS, THEY TOLD DISTRICTS IF THEY HAD A LOCAL HOMESTEAD EXEMPTION, WHICH WE DON'T, THAT THEY COULDN'T REDUCE THAT FOR FIVE YEARS.
THE ONLY REASON DISTRICTS HAVE A LOCAL HOMESTEAD EXEMPTION IS BECAUSE THEIR PROPERTY VALUES ARE EXTREMELY HIGH,
[01:00:04]
AND THE STATE EXEMPTION WAS NOT HIGH ENOUGH.THEY SAID FOR FIVE YEARS, YOU COULDN'T REDUCE IT.
NEVER SAY NEVER, WHEN IT COMES TO THE RULES OF THE STATE, WE DON'T KNOW WHAT THE CHANGES WOULD BE IN THE FUTURE.
>> THAT WOULD BE MY NEXT QUESTION IS, IF FINANCES CHANGE, WE HAVE A DIFFERENT LEGISLATURE THAT'S MORE SUPPORTIVE OF PUBLIC SCHOOLS, AND THEY GIVE US MORE MONEY, THEN, CAN WE DECREASE HOW BEHOLDEN ARE WE TO, AND IF WE DO LOWER THAT TAX RATE, DO WE SAY WE'RE LOWERING THE COPPER PENNIES? OR DO WE DESIGNATE THAT?
>> THEY HAVE IT DESIGNATED OF HOW LIKE WHEN YOU INCREASE THE TAX RATE, IT'S ALWAYS THE GOLDEN PENNIES THAT ARE FIRST, AND THEN THE COPPER PENNIES.
I WOULD PRESUME IT GOES FIRST.
YES. THE STATE HAS FLOORS, ALSO, THAT YOU CANNOT TAX UNDER A CERTAIN AMOUNT, AND YOU HAVE TO HAVE A CERTAIN COLLECTION PERCENTAGE.
IF NOT, YOU ARE FIND OR SOMETHING ALONG THOSE LINES THAT YOU GET DINGED ON IT, AND YOU ACTUALLY HAVE TO PAY THEM MORE MONEY IF YOU DON'T COLLECT ENOUGH MONEY.
>> I JUST WANT TO MAKE SURE IF WE MOVE FORWARD WITH THIS AND VOTERS APPROVE IT THAT THE MONEY WE'RE SAYING THAT OUR DISTRICT WILL RECEIVE OUT OF THIS IN THE FUTURE, WILL MAINTAIN SOME WEIGHT, BUT WE CAN'T REALLY SAY.
>> WE DON'T, BECAUSE IT'LL CHANGE.
AS PROPERTY VALUES GO UP, IF THE DISTRICT IS EXPECTED TO GET TO 80,000 STUDENTS WHEN IT'S ALL BUILT OUT, NONE OF US WILL BE HERE AT THAT TIME, BUT IT'S EXPECTED TO BE THAT, AND WHAT HAPPENS WITH THE CHANGES IN THE FUNDING FORMULAS OVER THE YEARS? WE JUST DON'T KNOW THAT.
WE DON'T EVEN KNOW IT EVERY TWO YEARS WHEN THEY GO INTO SESSION, IT SEEMS LIKE, BUT.
WE TALKED ABOUT INSURANCE AND POTENTIALLY CAUSING THAT.
I'M JUST CURIOUS AND TO THINK THROUGH AND MAYBE MISS CORSON THINK THROUGH TO, LIKE, WHAT'S MORE EFFICIENT USE? I KNOW IT'S EASY TO GIVE THE FLAT RATE INCREASE TO EVERYBODY, AND THAT WAY YOU'RE NOT WELL, WE GAVE YOU AN EXTRA $37 TOWARDS YOUR INSURANCE, AND SO NOW THAT ONLY EQUATES A RAISE OF 2.8% IN SO I JUST KNOW THE MOST EFFICIENT USE OF THE MONEY SO THAT WE'RE NOT SENDING TAX MONEY AWAY AND ALLOW THE TAX FORMULA PART OF THAT CALCULATION.
I KNOW IT'S NOT MUCH, BUT I JUST WANT TO MAKE SURE WE'RE EFFICIENT WITH HOW WE'RE USING THAT.
WHAT'S THE BEST USE OF THE MONEY THERE?
>> WE DISCUSSED THAT, AND WE FEEL LIKE BECAUSE ONLY AROUND 75% OF OUR EMPLOYEES TAKE THE INSURANCE, 100% WOULD GET A RAISE, AND SO IT WOULD MAKE MORE SENSE THAT WAY.
THEN AS YOU KNOW, ONE OF OUR GOALS THIS YEAR IS TO BECOME SELF FUNDED IN THE INSURANCE AREA, AND HOPEFULLY NEXT YEAR WE'LL DRIVE DOWN THE PREMIUM COST, AND THEN WE CAN GO BACK TO A ZERO COST AGAIN.
>> THAT'S ALL I HAVE. THANK YOU AGAIN.
>> A COUPLE ANSWER YOUR QUESTION ON THE 15.39, THAT'S THE TAX RATE INCREASE, IT'S JUST ON THE M&O SIDE OF THE NUMBER.
IT DOESN'T INCLUDE THE INS SIDE.
IT'S JUST THE M&O FROM 0.6669-0.7269.
I BELIEVE IT'S HOW THEY GET THE 15 DOESN'T INCLUDE THE INS SIDE.
THEN S ARE YOUR QUESTION ON $100,000, IT'S 0.002%.
ONE THOUSANDTH OF A PERCENT INCREASE ON 100,000 VALUATION.
>> THANK, MISS HOMERS, FOR YOUR PRESENTATION AND IS COMMUNICATING THIS EFFECTIVELY.
THERE'S A LOT OF PEOPLE LISTENING AND JUST WONDERING WHAT THIS ALL MEANS, BUT CAN YOU JUST BREAK DOWN? I KNOW THAT WE'VE HEARD THIS BEFORE, BUT THE TWO BUCKETS OF MONEY IN REGARDS TO OUR M&O BUDGET AND OUR INTEREST AND SINKING FUND.
THERE'S BEEN SOME MISINFORMATION, AS TRUSTEE AOSKO SAID ABOUT THE RELATION BETWEEN OUR DEBT SERVICE, OUR BONDS, AND OUR M&O BUDGET.
CAN YOU BREAK THAT DOWN? QUICK, PLEASE. FOR THOSE WHO LISTENING?
>> CERTAINLY. OUR MAINTENANCE AND OPERATIONS TAX, HAS A MAXIMUM TAX RATE OF THE DOLLAR 17, AND THAT IS USED FOR EVERY DAY OPERATING EXPENDITURES IN THE DISTRICT.
OUR STAFF, OUR FACILITIES, OUR EVERYTHING THAT WE DO ON A DAILY BASIS.
THE DEBT SERVICE CAN BE UP TO $0.50 ON THE DOLLAR, AND WE ARE CLOSE TO THE TOP OF THAT.
THAT IS TO ONLY PAY FOR BONDED DEBT
[01:05:02]
AND THE FEES THAT GO ALONG WITH THAT AND THE INTEREST.>> THANK YOU. AGAIN, THIS MIGHT BE MORE OF A QUESTION FOR YOU, DOCTOR WRIGHT.
I KNOW IF WE CHOOSE TO ADOPT THIS TAX RATE, TRIGGER THE VADER ELECTION, CORRECT.
BUT I JUST WANT TO GET BACK TO, WHY PEOPLE LISTENING AT HOME THEIR HEADS MIGHT BE A LITTLE SPINNING FROM THESE NUMBERS AND THESE PERCENTAGES.
BUT AS FAR AS THE ALTERNATIVE AND WHY WE ARE DOING THIS AND STUDENT OUTCOMES.
CAN YOU SPEAK A LITTLE BIT, DOCTOR WRIGHT ABOUT WHAT THIS MEANS? I MEAN, SIGNIFICANT CUTS IN STAFFING, INCREASING CLASS SIZES, SOME SPECIAL PROGRAMS BEING CUT EDUCATIONAL SERVICES.
CAN YOU SPEAK A LITTLE BIT ON THAT AND WHAT THAT MEANS FOR STUDENT OUTCOMES AND WHY THIS IS CONSIDERED?
>> NOT SURE THAT QUESTION IS DIRECTLY TIED TO THIS, BUT MAYBE DOCTOR WRIGHT. I WANT TO DO.
>> MAYBE THE NEXT ONE WE COULD SAVE IT FOR THE NEXT ONE AS WELL, AND SPEAK ON THAT.
>> WE'LL BE READY TO GO FOR THE NEXT ONE.
BUT ALSO, WELL, TIE IT BACK AS FAR AS, HOMEOWNERS OUT THERE THAT ARE JUST WONDERING, AND I'M GLAD, THANKS FOR ASKING THAT QUESTION ABOUT THE HOMESTEAD EXEMPTION AND WHETHER IT PASSES IN NOVEMBERI THINK THAT'S A POINT THAT I THINK THAT I'M HEARING THAT PROVIDES ME RELIEF THANKS FOR PROVIDING THAT, BUT I WANT TO SAVE THOSE QUESTIONS FOR THE NEXT ARGUMENT.
MISS ATMERZ, I SEE THAT HORSETAIL FLAPPING AROUND DOWN THERE, SO I KNOW HE'S NOT DEAD YET.
TO MISS ZIPEL'S QUESTION, I HAD THAT SAME THING.
IF WE LOOK AT OUR M&O BUDGET YEAR OVER YEAR, I KNOW YOU'RE SAYING WE CAN'T LOOK AT 26 27, RIGHT? BECAUSE THINGS CAN CHANGE.
BUT WHAT HAS BEEN OUR TRAJECTORY FOR THE M&O BUDGET OVER THIS LAST PERIOD, 2020-2025? IT'S BEEN GROWING AT THE SAME RATE.
YOU FALSE. DO WE NEED TO LOOK INTO THAT?
>> THE MNO TAX RATE OR THE BUDGET FOR THE BUDGET. RIGHT?
>> IF WE'RE LOOKING TO PUT $26,000,000 BACK IN THE OPERATIONAL BUDGET.
HOWEVER, THERE ARE NO APPLES-TO-APPLES COMPARISONS BECAUSE YOU'RE GROWING YOUR THOUSAND TO 1,200 STUDENTS A YEAR.
THE BEST WAY TO LOOK AT IT, IF YOU WANTED TO LOOK AT IT, IS THE CHANGE IN THE FUND BALANCE.
AFTER ALL, THAT'S THE DIFFERENCE BETWEEN THE REVENUE AND THE EXPENDITURES FOR THAT YEAR, RIGHT? IT'S NOT THAT SIMPLE BECAUSE IT IS A MATHEMATICAL CALCULATION WHERE OTHER NUMBERS GO INTO THAT.
BUT THAT WOULD BE THE BEST WAY TO LOOK AT IT, WE DID HAVE THE DOCTOR WRIGHT HAD ON THE ONE SLIDE WHERE THE FUND BALANCE WAS GOING DOWN, ABOUT 20 MILLION OR SO A YEAR WHILE YOU'RE GETTING THAT $6,160 PER BASIC ALLOTMENT FOR EVERY STUDENT, AND THEN YOU'RE GETTING EXTRA ALSO, BUT VERY POINTED FUNDING FOR THE HARDER TO EDUCATE CHILDREN IF YOU'RE GETTING ON AVERAGE ABOUT 10,000 PER STUDENT, ON AVERAGE, YOU'RE SPENDING A LOT MORE THAN THAT FOR THAT FUND BALANCE TO BE GOING DOWN 20 MILLION.
BUT 20 MILLION SOUNDS LIKE A LOT OF MONEY, BUT IT'S NOT IN A DISTRICT OF THIS SIZE, RIGHT? THAT'S ABOUT ONE MONTH OF EXPENDITURE.
WHEN YOU LOOK AT THE PAYROLL BEING 89% OF THE BUDGET, THAT ONLY LEAVES 11% FOR EVERYTHING ELSE.
INSURANCE COSTS HAVE INCREASED ON INSURANCE.
WE'VE ALL SEEN IT IN OUR HOMES AS WELL.
WE HAVE BEEN PAYING STAFF MORE, AND WE HAVE MORE STAFF BECAUSE WE HAVE MORE STUDENTS.
WE'VE BEEN OPENING UP NEW SCHOOLS.
WE JUST OPENED ANOTHER ONE THIS YEAR.
THERE ARE FIXED COSTS THAT COME WITH OPENING A NEW SCHOOL, AND SINCE YOU ARE NOT FUNDED TO THAT LEVEL, THE DECISIONS TO SPEND THE MONEY NEEDED TO EDUCATE KIDS IN THIS DISTRICT WERE NOT BAD.
[01:10:08]
WE HAVE TO HAVE GOOD STAFF.WE HAVE TO HAVE ENOUGH STAFF TO BE WITH THE STUDENTS AND TO TEACH THEM AND TO KEEP THE HALLS CLEAN, AND TO KEEP THE BUILDINGS IN GOOD SHAPE, AND TO KEEP OUR INSURANCE THAT WE HAVE AND EVERYTHING THAT GOES ALONG WITH THAT.
KEEP THE LIGHTS ON, THEY'RE NOT BAD DECISIONS.
BUT NOBODY CAN HAVE THE SAME DOLLAR FOR SEVEN YEARS AND NOT GO INTO THEIR SAVINGS.
IF YOU DIDN'T HIRE EXTRA PEOPLE, AND IF YOU DIDN'T GIVE RAISES, YOUR FUND BALANCE WOULD STILL BE GOING DOWN.
THAT HAS BEEN INTENTIONAL IN THE FUNDING FORMULAS.
YOU CANNOT LIVE ON THE SAME DOLLAR WITH THE SAME EXPENDITURES BECAUSE THEY ALL WENT UP 20 TO 25%.
>> YEAH. EXCELLENT POINTS. THANK YOU, MISS HOMER, ON THATTHEN IF WE CAN GO TO THE SLIDE THAT HAS THE CASH FLOW AT PAYROLL TIME.
CAN YOU GET TO IT QUICKLY? JUST CANNOT THANK YOU FOR THAT.
YEAH. JUST A COUPLE. [LAUGHTER]
>> A LITTLE BIT. NICE ANIMATIONS. GOOD JOB.
>> NOPE, THERE IT WAS. [OVERLAPPING] ALMOST, RIGHT? THERE WE GO.
THANK YOU. COUPLE EXTRA PUSHES. WE'RE IN THERE
>> WE PAINTED A PRETTY REALISTIC BUT UGLY, I MEAN, IT PERKED MY EARS UP, LET'S FAST FORWARD THIS BECAUSE WE DID IT WITH THE OTHER TOPIC THAT WE'LL GET TO, RIGHT? ITEM SEVEN. WHAT HAPPENS WHEN WE GET TO THOSE PINK MONTHS AND THIS PLAN, RIGHT? THESE EFFORTS ARE THWARTED.
WE'RE NOT SUCCESSFUL. WHAT DO WE DO IN THOSE MONTHS?
>> ROLL, THAT TAX ANTICIPATION NOTE QUESTION MIGHT BE BETTER SERVED FOR E FIVE, BECAUSE THAT'S DIRECTLY RELATED TO THAT PORTION OF THE AGENDA.
I KNOW IT'S ALL ABOUT THIS PRESENTATION. THAT'S WHAT I'M ASKING.
I MEAN, THAT'S WHY IN THE BEGINNING, I JUST WANT TO MAKE SURE WE'RE.
IN THE CADENCE OF THE QUESTIONS, WHERE DO THEY LIE WITHIN THE AGENDA? I JUST WANT TO MAKE SURE WE'RE ASKING THOSE IN THE PROPER ORDER. I APOLOGIZE. IS GOOD.
>> WE ARE STILL IN THE TAX RATE RESOLUTION.
YOU'LL BE TALKING ABOUT THE TAX RATE.
THE TAX ANTICIPATION NOTE IS NEXT.
YES, CAN WE TAKE THE BUS AT THAT TIME? IS THAT GOOD? YEAH.
>> WE'LL HOLD IT. WE'LL PUT A PIN ON IT. THANK YOU.
>> I'M GOING TO SAVE IT FOR THE LATER AGENDAS.
>> I AM JUST CURIOUS, THOUGH, BECAUSE WE ARE OVERALL BUDGET, YOU SAID, LOOKING AT HOW WE GOT HERE, RIGHT? WE MADE A STRATEGIC INVESTMENT INTO OUR STAFF AND MAKING SURE THAT WE WERE ABLE TO HIRE THE BEST TEACHERS AVAILABLE AND BECAUSE WE'RE GROWING, AND WE KNEW WE WERE GOING TO BE HIRING A LOT OF TEACHERS, WE NEEDED TO MAKE SURE THAT WE WERE ABLE TO RECRUIT THEM I'M CURIOUS GOING FORWARD, IF AGAIN, VOTERS WERE TO GRANT THIS, IF WE WERE TO GO FORWARD WITH THIS AND VOTERS APPROVE IT.
WHAT'S THE BEST WAY TO HANDLE, LIKE, ONE-TIME EXPENSES IN OUR BUDGET AS WE LOOK AT IT YEAR OVER YEAR? IS THE IDEAL POINT TO GET TO A STATE WHERE WE HAVE A TAX RATE THAT DOESN'T USE ANY GOLDEN PENNIESTHEREFORE, YOU CAN USE YOUR FIVE GOLDEN PENNIES IN ANY YEAR WITHOUT A VOTER ELECTION OR ANYTHING TO HANDLE ONE-TIME GROWS THAT, FOR EXAMPLE, KNOW OUR BUDGET.
LET'S JUST SAY SOME EASY NUMBERS.
IT'S 100 MILLION THEN NEXT YEAR, WE KNOW WE'RE GOING TO OPEN A SCHOOLWHEN WE OPEN SCHOOLS, THERE'S AN EXPENSE ATTACHED TO THAT IF WE JUST ROLLED FORWARD THE NEXT YEAR AND KEPT THE SAME TAX RATE, WELL, WE WOULDN'T HAVE ENOUGH MONEY TO PAY FOR THAT COST OF THAT ONE TIME EXPENSE OF OPENING THAT SCHOOL WE HAVE TO INCREASE THE TAX RATE TO COVER THAT PORTION, OR WE GO INTO FUND BALANCE I'M TRYING TO GET TO, HOW DO WE AVOID GOING INTO FUND BALANCE AND PASSING A DEFICIT BUDGET WHEN WE HAVE BIG CONTINUAL, BIG, ONE TIME EXPENSES?
>> THE BEST WAY IS TO HAVE AT LEAST THREE MONTHS OF FUND BALANCE.
[01:15:02]
WE ARE A JUNE 30 YEAR-END.WE CAN SEE FROM THAT CHART, THE MONEY, THE TAX MONEY FROM THIS TAX RATE, STARTS COMING IN IN DECEMBER, AND HAVING SIX MONTHS OF FUND BALANCE IS NOT UNREALISTIC.
BECAUSE IF YOU SEE AT THE BEGINNING IN JULY, IT'S AT 10:12 MILLIONAT THE IN JUNE, ON THE FAR RIGHT SIDE, IT'S TINY YOU JUST DON'T HAVE MONEY IN THOSE OTHER MONTHSTHAT'S WHY YOU NEED A FUND BALANCE THAT HELPS WITH THE CASH FLOW YOU BUILD THAT IN TO YOUR FUND BALANCE, AND YOU CAN RESERVE PARTS OF YOUR FUND BALANCE FOR OPENING OF NEW SCHOOLS FOR THINGS ALONG THAT NATURE.
>> THREE MONTHS WOULD BE WONDERFUL AT THIS POINT, BUT GETTING TO SIX MONTHS WOULD MAKE SENSE IF WE COULD PASS THIS TAX RATE, WHICH COULD HELP US GET TO THAT.
WE WOULD HAVE TO WORK HARD TO GET THERE IN THREE YEARS, TO GET TO THE THREE MONTHS, BECAUSE WE'RE GOING TO BRING IN 26 MILLION, BUT WE'RE GOING TO SPEND SOME OF THAT, RIGHT? WE WOULD BE LUCKY TO SAVE 18 TO 20 MILLION.
WE'D BE LUCKY, [OVERLAPPING] WE'D BE SMART.
WE'D BE SMART. [LAUGHTER] YES, SIR, THAT WOULD BE THE PLAN NOT TO SPEND ALL OF OUR PENNIES, NOT SPEND ALL THE REVENUE FROM THE PENNIES, BUT BUILD UP THAT FUND BALANCE AGAIN SO THAT YOU HAVE FUNDS FOR THOSE THINGS.
EXACTLY DON'T THINK THAT AT ANY POINT IN TIME, WE'RE GOING TO STOP BUILDING SCHOOLS.
IF WE'RE GOING TO GET TO 80,000, AND WE'RE AT 24 THO THREE OR FIVE.
NOW, 24 1,000, WE HAVE A LONG WAY TO GO.
WE HAVE ALMOST FOUR TIMES THE NUMBER OF STUDENTS TO BRING TO THIS DISTRICT, AND STILL, BY THE TIME IT'S BUILT OUT.
CAN WE GO TO THE SLIDE AFTER THIS ONE? SINCE THAT ONE'S TABOO.
>>I GUESS THAT'S ME [LAUGHTER]
>> IF I'M UNDERSTANDING CORRECTLY, THIS IS 12-CENT REQUESTS.
THIS IS THE LOAN THAT WE'RE TALKING ABOUT.
>> NO. INCREASING THE TAX RATE
>> ALL RIGHT. I'M GOOD UNTIL WE GET TO ITEM SEVEN. THANK YOU.
>> YEAH, THANKS FOR THE LEEWAY OF THEIR TEAM.
BUT I HAVE A COUPLE OF THINGS.
I THINK ABOUT IT THIS WAY: I FEEL LIKE THIS SCHOOL BOARD AND THIS ADMINISTRATION HAVE BEEN PRETTY GOOD STEWARDS OF OUR PUBLIC DOLLARS SINCE 2020.
WE'VE ALLOWED THE STATE LEGISLATURE TO HELP WITH THE INFLATIONARY NUMBERS IN 21, 23, AND 25.
WE GOT A LITTLE BIT, 25 TOOK CARE OF SOME TEACHERS, THIS PAST ONE. THANK YOU.
BUT WE ALSO HAVE 17 OTHER STAFF WHO WEREN'T TAKEN CARE OF, RIGHT? BACK IN 2020, WHEN THE WORLD CAME UNGLUED, LIKE, WHAT HAPPENED? EVERYONE, START, EVERY RETAILER, EVERY STORE, EVERYTHING THAT WE BUY FROM, PERSONALLY, HAS GONE UP IN PRICE.
BUT AS A DISTRICT, WE SAID, YOU KNOW WHAT? WE'RE GOING TO HOLD IT TRUE.
WE'RE GOING TO OR STILL COMPRESS OUR TAX RATE.
OUR STATE LEGISLATURE IS GOING TO COME THROUGH FOR US.
DIDN'T HAPPEN IN 2021, DIDN'T HAPPEN IN 23, I DIDN'T HAPPEN 25 NOW, WE'RE IN A POSITION WHERE WE HAVE TO DECIDE ON HOW TO FUND OUR DISTRICT GOING FORWARD BECAUSE WE HAVE TO GIVE IT, WE HAVE TO TAKE IT INTO OUR OWN HANDS NOW.
I MEAN, I OWN A SMALL BUSINESS, EVERY YEAR, I GET PRICE INCREASES STARTING IN MARCH OF 2020, AND I HAD TO MAKE SOME DECISIONS.
DO I REDUCE MY OVERHEAD? WELL, NO, BECAUSE I ONLY HAVE 13 PEOPLE IN MY ENTIRE COMPANY RUNNING TWO STORES. NO, THAT'S NOT AN OPTION.
DO I CLOSE A STORE? NO? WE NEED THAT STORE FOR REVENUE.
WE WERE IN A DIFFERENT MARKET.
WE'RE SUPPORTING FAMILIES AND WHATNOT.
DO WE RAISE OUR PRICES? WELL, WE HAD TO RAISE SOME PRICES, AND I HAD TO LET BY ME DOING THAT, THOUGH, THEN I ALLOWED OUR CONSUMERS TO TELL ME IF THEY'RE GOING TO PAY THOSE PRICES, WHAT WE'RE DOING IS HARD.
I MEAN, WE WANT TO MAKE SURE IN PERPETUITY THAT WE'RE TAKING CARE OF THIS DISTRICT,
[01:20:04]
AND NOW WE HAVE TO DO THAT ON OUR OWN.I FEEL LIKE WE HAVE TO DO THAT ON OUR OWN WHATEVER WE DO ON THIS VOTE COMING UP ISN'T NECESSARILY A VOTE THAT, YES, WE'RE GOING TO RAISE THE TAXES, BUT WE'RE GOING TO LET OUR PUBLIC DECIDE WHETHER OR NOT THEY'RE GOING TO FUND US, JUST LIKE THE PUBLIC HAS BEEN FUNDING EVERY OTHER BUSINESS IN THIS COMMUNITY THAT THAT RAISED THEIR PRICES FROM THE BEGINNING OF 2020.
I MEAN, GOOD LUCK, WE'RE PAYING $12 FOR EGGS EIGHT WEEKS AGO.
I MEAN, WE DIDN'T STOP BUYING EGGS, I MEAN, SORRY TO SAY IT I JUST FEEL LIKE I FEEL LIKE THE DISTRICT HAS DONE A GREAT JOB UNDER DOCTOR WRIGHT'S LEADERSHIP OVER SINCE 2020 NAVIGATING THIS FOR USNOW WE'RE FILING A POINT WHERE WE'VE GOT TO TAKE WE'VE GOT TO LET OUR TAXPAYERS TAKE CONTROL OF THIS AND PUT US BACK IN FINANCIAL WHERE WE NEED TO BE AND GET OUR FUND BALANCE BILL BACK UP, AND THAT'S WHAT THAT'S WHAT THIS TONIGHT'S ALL ABOUT OKAY WITH THAT BEING SAID, I MOVE THAT THE HAYS CISD BOARD OF TRUSTEES ADOPT A RESOLUTION TO SET THE PROPERTY TAX RATE FOR THE TAX YEAR 2025 IN FISCAL YEAR 2025 2026 AS PRESENTED.
THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.
THE TAX RATE WILL EFFECTIVELY RISE BY 15.39% ONLY ON THE M&O SIDE, AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON $100,000 HOME BY APPROXIMATELY $120 ANNUALLY.
ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR? AYE. ALL THOSE OPPOSED.
>> IT'S HEAVY. WE'RE MOVING ON TO E FIVE,
[E.5. Consideration and possible adoption of a Resolution Authorizing the Issuance of a Tax Anticipation Note]
AND WE HAVE GOT SOME QUESTIONS ON E FIVE ON PAGE 19.THIS IS THE CONSIDERATION OF THE POSSIBLE ADOPTION OF A RESOLUTION AUTHORIZING THE ISSUANCE OF TAX ANTICIPATION NOTES.
NOW, BASED ON BEFORE, I BELIEVE MR. FLORES HAD A QUESTION RELATED TO THIS.
THEN, MR. VELA, I'M GOING TO START WITH YOU, THEN ASK YOUR QUESTION THAT YOU HAD ON THE CASH FLOW PAYROLL AT ANY TIME.
>> WELL, LET MISS ATMERZ GET A SIP OF WATER FIRST.
>> MISS ATMERZ, AGAIN, THANK YOU I DON'T THINK IT CAN BE STATED ENOUGH, JUST IN YOUR FIRST SIX WEEKS WITHIN OUR DISTRICT, AND YOU'RE ALREADY JUST CHOMPING AT THE BIT TO GET AT ALL THIS STUFF RIGHT.
JUST TALK TO ME AGAIN ABOUT THE GRAPH.
>> CERTAINLY. WE'RE NOT GOING TO GET TO THE POINT WHERE IT'S RED.
TODAY'S THE 18TH, AT THE END OF NEXT WEEK, WE'RE PAYING PAYROLL.
AND THERE ISN'T MONEY IN THE BANK TO DO THAT.
THIS IS FOR LACK OF BETTER WORDS, THIS IS A PAYDAY LOAN.
WE ARE WAITING FOR OUR TAX MONEY TO COME IN.
YES, THERE'S OTHER SMALL AMOUNTS OF MONEY THAT COME IN OVER THESE NEXT SEVERAL MONTHS, BUT NOT ENOUGH.
AND THE 31.5 MILLION THAT WE'RE ASKING FOR IS THE MAXIMUM THAT YOU CAN GET ON A TAX EXEMPT BASIS AT THIS TIME.
WE MIGHT HAVE TO GET A SECOND ONE AT A TAX BASIS, WHICH, OF COURSE, IS COMPLETELY SILLY.
WE ARE A TAX EXEMPT ORGANIZATION, BUT THESE ARE IRS RULES.
WE HAVEN'T LOOKED AT HOW MUCH MORE WE WOULD BE ELIGIBLE FOR.
BUT WE NEED 20 MILLION OF THAT 31.5 TO MAKE AUGUST PAY ROLL.
IN AUGUST, WE WILL BE GETTING A LITTLE PAYMENT FROM TEA IN THE 12 TO $14,000,000 AMOUNT RIGHT AFTER WE HAVE TO HAVE THE MONEY FOR PAYROLL.
BUT THAT IS MY PRESUMPTION IS IT'S GOING BACK TO THE STATE IN SEPTEMBER BECAUSE THE STATE HAS BEEN PAYING US ON NEARLY 2,000 MORE STUDENTS THAN WE HAD IN '24 '25.
AND IT'S THE WEIGHTED AVERAGE DAILY ATTENDANCE.
PART OF THAT IS THOSE NUMBERS WERE PROVIDED TO THE STATE SEVERAL YEARS AGO.
BASED ON THE DEMOGRAPHIC PLANS AND KIDS COMING TO SCHOOL,
[01:25:07]
THEY'VE BEEN PAYING US HIGHER.NOW THAT THE YEAR '24 '25 IS OVER, WE KNOW WHAT THOSE NUMBERS ARE, AND WE WILL BE GIVING THEM BACK ABOUT $14,000,000. WE'RE THERE.
>> WELL, I APPRECIATE JUST THE CANDID RESPONSE, MISS ATMERZ, 3,600 EMPLOYEES, 35 GIVE OR TAKE.
I JUST WANT TO MAKE SURE BEFORE WE HAVE 3,600 HOUSEHOLDS JUST FLIPPING OUT RIGHT NOW.
WE ARE THERE, BUT WHAT IS THE PLAN AS OF RIGHT NOW? OR IS THIS REALLY JUST PANIC MODE ALL THE WAY ACROSS THE BOARD? TALK TO ME 'CAUSE THAT'S A LOT.
>> YEAH, FOR RIGHT NOW, THE IMMEDIACY IS WE NEED YOU GUYS TO APPROVE THIS SO WE CAN MAKE PAYROLL IN AUGUST.
AND THEN WE'LL BE MOVING FORWARD, AS YOU KNOW, WE HAVE BIDS COMING IN FOR THE SALE OF SURPLUS PROPERTY, AND ONCE THAT HITS, WE'LL HAVE ADDITIONAL MONEY, AS WELL.
AND WE LOOK FOR THAT TO HIT THE BOOKS AND IN THE NEXT COUPLE OF MONTHS AS WELL TO OFFSET SOME OF THIS.
THAT'S SOME MONEY WE'RE EARMARKING, BUT FOR IMMEDIACY, WE REALLY NEED THIS TAN APPROVED SO THAT WE CAN MAKE PAYROLL THIS MONTH AND NEXT MONTH, AND THEN WE'LL BE ABLE TO HAVE A GOOD IDEA OF WHERE WE'RE TRACKING FROM THEN.
AND LIKE MISS ATMERZ SAID, IF WE NEED TO COME BACK AND ASK FOR ANOTHER ONE, THEN THAT'S SOMETHING THAT WE WOULD BE IN A POSITION TO DO.
>> THIS WILL ALL BE PAID BACK IN FEBRUARY AFTER PROPERTY TAXES COME IN.
IF THE TRE DID NOT PASS AND WE DIDN'T START BRINGING IN THAT EXTRA MONEY, WE WILL CONTINUE TO BE IN THIS SITUATION.
BECAUSE WE DON'T GET TO JUST KEEP THIS MONEY WE HAVE TO PAY IT BACK.
>> OKAY, JUST A COUPLE OF QUESTIONS ON THIS.
HOW LONG WILL IT TAKE TO GET THE MONEY? ONCE WE APPROVE IT TONIGHT? WHAT DOES THE TURNAROUND ON THAT? WILL WE MAKE AUGUST PAYROLL IF WE VOTE ON THIS YES TONIGHT.
>> THE BANK WILL GET IT TO US THIS WEEK.
>> THAT IS SUFFICIENT TIME TO MEET THAT PAYROLL DATE DROPPED.
I WAS ALSO GOING TO ASK, HOW OFTEN CAN WE GO OUT FOR A TAN PER FISCAL YEAR.
>> WE DID NOT EXPLORE THAT YET.
THAT'S OUR NEXT TOPIC OF CONVERSATION WITH OUR ADVISORS.
WE WERE GOING FOR THE IMMEDIATE WHAT WE COULD DO NOW.
>> SURE, IF YOU CAN GET US THAT INFORMATION, I THINK THAT WOULD BE HELPFUL.
NOW, WE'VE NEVER HAD TO DO A TAN BEFORE IN OUR DISTRICT.
HOWEVER, IT IS VERY COMMON FOR FAST GROWTH DISTRICTS TO DO TANS.
VERY COMMON BECAUSE THEY'RE JUST TRYING TO BRIDGE THAT GAP AS FAST GROWTH AS THEY ARE.
IT IS COMMON, AND IT DOES HAVE TO BE PAID OUT THAT SAME FISCAL YEAR.
THAT'S REALLY IMPORTANT TO NOTE AS WELL.
NOW, JUST TALK TO ME A LITTLE BIT ABOUT HOW MUCH OF THE ANNUAL REVENUE DOES IT COVER? LIKE, HOW MUCH IS IT GOING TO COVER? YOU SAID WE'RE GOING OUT FOR A TAN THAT IS.
>> THE M&O BUDGET WAS ADOPTED AT 267 MILLION SO WHATEVER PERCENT THAT IS? IT'S PROBABLY ABOUT 12 OR SO PERCENT.
YOU SAID PAYROLL IS USUALLY ABOUT 20 MILLION.
>> SO IT SEEMS MIND BOGGLING, DOESN'T IT?
>> BUT WE DO HAVE OVER 3,000 EMPLOYEES.
03,600, AND WE'RE HOLDING STEADY BECAUSE OF THE FINANCIAL POSITION THAT WE'RE AT.
BUT WE HAVE 89% OF OUR BUDGET TIED TO PERSONNEL.
LIKE YOU STATED BEFORE, IT'S NOT THAT WE'RE MAKING BAD CHOICES.
WE NEED TO MAKE SURE THAT WE HAVE THE STAFF ALL THE WAY FROM OUR BUS DRIVERS TO OUR CUSTODIANS, TO EVERYONE, BECAUSE WE ALL NEED TO WORK TOGETHER TO MAKE SURE TO EDUCATE THAT WHOLE CHILD.
THAT'S REALLY IMPORTANT TO TAKE CARE OF THAT.
[01:30:01]
JUST A QUICK QUESTION.I DON'T KNOW IF YOU CAN REVEAL THIS OR NOT.
BUT WHERE ARE WE GETTING THIS MONEY FROM? WHO ARE WE APPLYING?
>> THANK YOU FOR ASKING. THIS IS A SERVICE, AND SO WE DON'T HAVE TO GO OUT FOR BID OR RFP OR ANYTHING LIKE THAT.
A LOT OF TIMES IT'S GOOD TO DO THAT, BUT WE WERE ON A VERY QUICK TIMELINE, AND SO WE WENT TO OUR DEPOSITORY BANK WHO DID PROVIDE GOOD MARKET RATES.
COMPARATIVELY, THE RATES ARE GOOD.
IT DOES COST A LOT, NONETHELESS, FROM OUR BANK 3.68.
>> 3.68, THANK YOU. OKAY. GREAT.
>> STILL MY QUESTION. THERE'S A FEW TERMS IN HERE IN THE RESOLUTION.
THERE'S NO PREPAYMENT CLAUSE IN HERE.
I'M LOOKING AT THE FINANCE GUYS MISS ATMERZ.
THE FINAL FINAL I THINK IS STILL COMING, BUT WE TALKED ABOUT IT WASN'T DID.
WE TALKED ABOUT PUTTING IT IN.
I THOUGHT IT CAME BACK OUT AGAIN. NO.
>> I WAS ABOUT TO COME TO THE MIC.
>> THE NOTE AS STRUCTURED RIGHT NOW IS PAYABLE IN FULL ON FEBRUARY 15TH, 2026.
NOW, ONE THING TO NOTE ABOUT THAT RATE AND ABOUT THE NOTE.
IS THAT YOU'RE GOING TO RECEIVE 31.5 MILLION FROM WELLS FARGO, YOUR DEPOSITORY BANK.
THE MONEY THAT DOESN'T HAVE TO BE SPENT IMMEDIATELY FOR PAYROLL, THAT MONEY, AS YOU TAKE IT AND PUT IT IN YOUR BANK ACCOUNT, YOU'RE GOING TO BE ABLE TO EARN INTEREST ON THAT MONEY.
THE INTEREST THAT YOU'RE EARNING ON THAT MONEY AS WELL IS GOING TO SOMEWHAT BE OFFSETTING THE INTEREST COST ON THAT MONEY.
LIKE, FOR INSTANCE, YOU'RE EARNING, I THINK IN TEXPOOL RIGHT NOW, TEX POOLS ABOUT A 4.3% INTEREST RATE COMPARED TO THIS 3.78%.
SURE, YOU'RE GOING TO SPEND IT DOWN, BUT YOU'RE ALSO GOING TO BE EARNING A LITTLE BIT OF INTEREST ON THAT MONEY.
>> THAT'S HELPFUL. BIG PICTURE WISE, WHAT DOES THIS COST US IN THE END? WELL, SO AT 3.78% OVER SIX MONTHS?
>> SURE. LET'S SAY YOU DO NOT EARN ANY INTEREST ON IT.
THEN IT'S COSTING THE DISTRICT TOTAL INTEREST ON THIS THING IS ABOUT 575,000.
BUT AGAIN, THAT'S WITHOUT ANY OFFSETTING INTEREST.
>> WE AREN'T ABLE TO KEEP THE WHOLE 31.5 ACCOUNT. YOU'RE NOT ABLE TO ACT.
>> WE'RE NOT ABLE TO KEEP THE WHOLE 31.5.
BUT MAYBE OVER THE TIME, YOU'RE KEEPING TEN, HALF OF IT.
MAYBE HALF OR THIRD, SOMETHING LIKE THAT.
IT'S PROBABLY GOING TO COST YOU I WOULD TELL YOU, IT'S GOING TO COST YOU AT LEAST THE 250 TO 300,000 IN INTEREST.
I'D BE SHOCKED IF IT WASN'T THAT.
>> I THINK THAT'S ALL I HAD. THANK YOU.
>> THERE ARE CLOSING FEES AS WELL, JUST LIKE ON ANY KIND OF A LOAN THAT YOU HAVE, SO NOTHING'S FREE.
>> MISS ATMERZ, OUR PREVIOUS CFO LEFT YOU WITH QUITE A CHALLENGE.
I FEEL LIKE I'M GLAD THAT YOU ARE HERE TO HELP US.
I TRUST MISS ROSCO THAT OTHER DISTRICTS DO THIS OFTEN, BUT IT FEELS LIKE A LINE OF CREDIT, A LITTLE BIT.
WHAT KIND OF FINANCIAL MECHANISMS ARE AVAILABLE TO SCHOOL DISTRICTS IN THIS PICKLE? IS THIS IT?
>> MORE OR LESS, WHEN WE FIRST STARTED TALKING ABOUT IT, I WAS INTERESTED IN LINE OF CREDIT, AND WE DETERMINED THAT THAT'S NOT ALLOWABLE FOR PUBLIC SCHOOL DISTRICTS, MAYBE ANY GOVERNMENTAL ENTITY.
THAT WOULD MAKE SENSE. THERE'S A COUPLE OF VERSIONS OF A SHORT TERM LOAN.
THIS IS PRETTY MUCH LIKE A BRIDGE LOAN WITH.
AND THE INTEREST RATE IS LOWER, THEN WHAT WE'RE EARNING IN THE POOLS, AS WAS STATED.
BUT IT JUST ADDS UP TO A LOT BECAUSE IT IS A LOT OF MONEY.
IT'D BE 31.5 MILLIONAIRES OVER.
[01:35:01]
>> WELL, YOU'RE GETTING IT THIS WEEK.
PAYROLLS TO AT THE END OF THE MONTH.
PAYROLL IS 20 MILLION. THIS IS 31.5.
SO I'M NOT GOING TO BANK ON MUCH INTEREST TO BE EARNED ON THIS MONTH.
YOU'RE GOING TO TURN IT AROUND PRETTY DARN QUICK. THAT'S CORRECT.
BUT I DO LOVE MR. TRAYLOR'S OPTIMISM ABOUT MAYBE OFFSETTING SOME OF THE FEES.
AND SURE, WE'LL MAKE A FEW BUCKS.
WELL, THIS IS UNFORTUNATE THAT WE HAVE TO DO THIS.
I'M GLAD THAT YOU'RE HERE AND ARE WORKING HARD TO MAKE SURE THAT OUR EMPLOYEES GET PAID BECAUSE THEY WORK REALLY HARD.
THE LAST THING WE WANT IS TO SAY, SORRY, YOUR PAYCHECKS NOT GOOD.
>> WELL, AS STATED IN THE BUDGET PART OF THE PUBLIC FORUM.
IT TAKES ALL OF US TO MAKE IT.
IT TAKES ALL OF US TO SPEND IT.
BUT WE'RE GOING TO KEEP IT AFLOAT.
>> WELL, AND DO EVERYTHING WE CAN.
I DON'T THINK WE CAN STATE THIS ENOUGH.
WE WE TRUSTED THAT OUR FRIENDS AT THE STATE WOULD HELP US OUT.
AND PROVIDE SOME RELIEF, AND THAT DIDN'T COME.
SO I'M GRATEFUL THAT WE HAVE INNOVATIVE PROBLEM SOLVING FOLKS TRYING TO HELP US BRIDGE THE GAP AND MAKE SURE THAT WE PAY OUR EMPLOYEES BECAUSE THEY ARE THE BACKBONE OF THIS DISTRICT.
I AM CERTAINLY SUPPORTIVE OF THIS, HOPE WE DON'T HAVE TO DO IT AGAIN.
BUT I KNOW THAT YOU WILL LET US KNOW IF WE DO, AND PLEASE DON'T SUGARCOAT IT. LET US KNOW.
THE PUBLIC NEEDS TO KNOW THAT WE ARE PUBLIC EDUCATION IS HAVING SOME CHALLENGES RIGHT NOW.
>> THANK YOU. THIS IS NOT BECAUSE WE WEREN'T TRYING TO MAKE THE BEST DECISIONS FOR THIS DISTRICT.
WE HAVE DONE EVERYTHING WE CAN.
WE HAVE TIGHTENED OUR BELT. WE HAVE NOT HIRED PEOPLE WHEN THEY HAVE LEFT.
WE'VE HAD PEOPLE HAVE TO DO MORE AND MORE WITH LESS AND LESS.
THAT'S WHAT WE'VE DONE AROUND HERE TO TRY TO NOT CUT PROGRAMS AND NOT CUT EMPLOYEES.
WE'VE BEEN ABLE TO DO THAT AND HAVE A HIGH RATE OF PEOPLE COMING BACK.
WE HAVE A VERY LOW TURNOVER RATE AS A RESULT OF THE THINGS THAT WE HAVE DONE TO TRY TO TAKE CARE OF OUR PEOPLE.
THIS IS JUST I FEEL LIKE ANOTHER IN OUR TOOLBOX, PROBLEM SOLVING TO BRIDGE THE GAP UNTIL WE GET TO A BETTER PLACE, AND HOPEFULLY THE TRE IS SUCCESSFUL AS WELL.
>> ALONG THOSE LINES IT'S REALLY FRUSTRATING TO GET TO THIS POINT.
OBVIOUSLY, THIS IS A SOMETHING THAT HAS HAPPENED MULTIPLE YEARS AGO THAT'S LED US TO THIS POINT.
WE THOUGHT THINGS WERE GOING TO BE A CERTAIN WAY, BUT WE'RE HERE NOW.
IT'S DIFFICULT TO SAY THAT, TWO, THREE YEARS AGO, WE SHOULD HAVE DONE SOMETHING DIFFERENT BECAUSE AGAIN, IT'S A LONG IT'S A BIG BOAT TO TURN.
IT TAKES MULTIPLE YEARS TO GET IT, ETC.
BUT FOR LOOKING FORWARD PERSPECTIVE OF HOW WE HAVE AN ALARM AT 20 MILLION, OR YOU KIND OF YOU'VE SEEN THAT YELLOW LINE, BUT YOUR ALARM IS MUCH HIGHER.
I KNOW THAT AS TO WHEN YOU FEEL UNEASY ABOUT WHAT OUR FUND BALANCE SHOULD BE.
I'M JUST TRYING TO FIGURE OUT HOW DO WE SET THAT ALARM EARLIER FOR US TO KNOW THAT WE HAVE TO AVOID THE SITUATION AGAIN BECAUSE WE'RE GOING TO END UP COSTING OURSELVES HALF $1,000,000 HERE TO JUST MAKE SURE THAT WE MAKE PAYROLL HERE FOR THE REST OF THIS CALENDAR YEAR?
BUT FROM MY UNDERSTANDING IS THE ALARM WAS SPOKEN.
I JUST FEEL LIKE IT'S ALMOST HARD TO BELIEVE THIS.
THIS IS ALMOST HARD TO BELIEVE.
WHEN YOU HEAR THE WORD 20 MILLION, THAT'S A LOT.
FROM MY INVESTIGATION, IT'S BEEN TALKED ABOUT, BUT I DON'T KNOW THAT IT WAS AS ALARMING AS I'VE MADE IT.
IT'S REAL. IN THE FINANCE DIVISION, THEY FEEL IT.
THEY'RE LIKE, OH, IS THE MONEY COMING IN? IS THE MONEY GOING TO BE THERE TO SEND TO THE BANK TO MAKE THE PAYMENTS.
THIS IS NOT ANYWHERE WE WANT TO BE.
>> GETTING THIS SHORT TERM LOAN, GETTING THE TAX RATE UP TO BRING US IN MORE FUNDS.
[01:40:07]
WE WILL STILL BE SWEATING FOR A COUPLE OF YEARS, THOUGH.>> WE ARE A ROLLING THREE YEAR TERMS. WHAT LEGACY DOCUMENT DO WE HAVE TO HAVE IN PLACE TO MAKE SURE THAT FUTURE BOARDS, FUTURE US SEIZE THE PROBLEM AND UNDERSTANDS IT.
>> WE CERTAINLY WILL LAY OUT A FIVE YEAR PLAN AS BEST WE CAN. THINGS WILL CHANGE.
WE KNOW THAT WE WILL WANT TO GIVE INCREASES TO PEOPLE, BUT WE ALSO KNOW WE'RE GROWING.
WE'RE GOING TO HAVE TO HAVE MORE PEOPLE FOR THE STUDENTS, AND YES, WE WILL BRING MORE MONEY IN AS WELL.
BUT WE HAVE A LOT OF MANDATED PROGRAMS, AND SOME THAT ARE MORE OR LESS MANDATED BY US BECAUSE OF THE WORLD TODAY THAT WE JUST HAVE TO HAVE CERTAIN EXPENDITURES AND EDUCATION IS NOT INEXPENSIVE.
WE WILL WORK, WE WILL LAY IT ALL OUT, AND AS I SAID, MY PREFERENCE WOULD BE TO HAVE MORE MONTHS OF FUND BALANCE BECAUSE THIS IS A GROWING DISTRICT, AND THE FAST GROWTH MONEY THAT USED TO BE THERE ISN'T THERE THE SAME ANYMORE.
WE HAVE TO HAVE THAT MONEY SITTING IN THE BANK SO THAT WE CAN CONTINUE TO OPEN UP NEW SCHOOLS.
OF COURSE, THE VALUES WILL CONTINUE TO INCREASE, IF NOT ON A HOUSE, BUT ON MORE HOUSES.
THE TAX BASE WILL INCREASE FROM THAT $18 BILLION, AND THEN TAX REVENUES WILL COME IN FROM THAT STANDPOINT.
>> YES. THANK YOU, MS. ATMERZ.
I THINK LIKE WHAT STOOD OUT THE MOST TO ME AND WHAT YOU'VE SAID, THIS IS SO THERE'S SO MUCH INFORMATION, BUT WHAT YOU SAID IS WE DON'T HAVE ENOUGH MONEY TO PAY OUR BILLS.
FOR ANYONE THAT'S LISTENING, I DON'T KNOW HOW CLEAR THAT NEEDS TO BE.
YOU SAID THAT YOU'VE BEEN HERE SIX MONTHS.
I THINK MOST OF US UP HERE ARE SIX WEEKS.
I THINK MOST OF US UP HERE WERE WISHING YOU WERE HERE SIX MONTHS AGO, BECAUSE THE ALARMS PROBABLY WERE SOUNDING AND WE WEREN'T GETTING IT.
THE FACT THAT WE ARE HERE, THE FACT THAT WE WENT THROUGH BUDGET CYCLE, AND WE ARE HERE IN AUGUST HAVING THIS CONVERSATION IT'S HARD TO SWALLOW.
WE'VE DONE GREAT BY OUR EMPLOYEES OVER THE COURSE OF THE YEARS.
WHEN I WAS FIRST SELECTED, I WALKED INTO A FUND BALANCE OF OVER 70 MILLION, THAT WAS A HEALTHY FUND BALANCE.
I'VE WATCHED IT DWINDLE OVER THE YEARS, AND RIGHTFULLY SO BECAUSE WE'VE TAKEN CARE OF OUR STAFF, AND WE'VE TAKEN CARE OF OUR TEACHERS.
MR. SEVERANCE AND MISS PETRI AND OTHERS HAVE SAID, WE HAD HOPED THAT OUR STATE WAS GOING TO COME THROUGH FOR US.
IT WAS ONLY FOR A SELECT GROUP OF PEOPLE.
WE KNOW THAT WE HAVE TO TAKE CARE OF EVERYONE.
AT THE SAME TIME, THIS IS HARD, JUST LIKE MR. SEVERANCE STATED, EVERYTHING IS GOING UP.
IF IT'S NOT HAYSCISD THAT'S GOING TO HAVE TO INCREASE THEIR TAX RATE, THE CITY OF BUTA, THE CITY OF KYLE, HAYS COUNTY IS ALSO HAVING TO MAKE THESE DECISIONS, AND THAT IS DIFFICULT ON THE TAXPAYERS.
WHAT I WOULD SAY TO EVERYONE LISTENING, ESPECIALLY OUR TEACHERS AND OUR STAFF THAT WORK IN THIS DISTRICT, BECAUSE ALL OF YOU ARE VOTERS.
YOU'RE GOING TO NEED TO SHOW UP FOR THIS ELECTION, BECAUSE WE DON'T HAVE THE MONEY TO PAY OUR BILLS.
YOU HEARD THAT FROM OUR CFO, AND THIS IS THE SITUATION THAT WE ARE IN AND IN ORDER TO CONTINUE TO PAY OUR TEACHERS AND OUR STAFF AND GIVE THEM THE MONEY THAT THEY DESERVE.
EVEN THE MONEY THAT THEY DESERVE, WE STILL CAN'T MEET THAT AND THAT'S HARD.
AS HARD AS THIS IS, THIS IS GOING TO GO TO THE TAXPAYERS, AND THIS IS GOING TO BE UP TO THEM.
BUT FOR ALL OF OUR STAFF AND OUR TEACHERS LISTENING.
I WAS JUST GOING OFF EVERYBODY WAS SAYING, SO, EVERYBODY WAS GIVING ALL OPINION.
I'M JUST GOING TO LEAVE IT AT THAT.
WE DON'T HAVE THE MONEY TO PAY OUR BILLS AND HERE'S WHERE WE'RE AT.
[01:45:03]
>> YES, I JUST WANTED TO MAKE A COMMENT ON SOMETHING YOU SAID, ABOUT HEARING THOSE ALARMS. I DON'T THINK THERE WAS ANY SENSE OF URGENCY OR A TRUE PICTURE OF WHAT IT MEANT FOR US NOT BEING ABLE TO MEET PAYROLL.
THAT WAS NEVER CONVEYED TO US IN SUCH AN URGENT, CLEAR MANNER THAT YOU HAVE DONE TODAY.
WE ALREADY HAVE POLICY IN PLACE.
MOVING FORWARD, I DEFINITELY WILL TAKE TO OUR POLICY PALS COMMITTEE TO PUT SOME MORE GUARD RAILS IN LOCAL POLICY TO GIVE US THOSE CHECKS AND BALANCES AND MAKING SURE THAT NOT ONLY WE MEET THAT NUMBER, BUT A CHECK IN BEFORE THAT.
THAT'S ANOTHER AGENDA ITEM, BUT I JUST WANT TO BRING IT TO MY POLICY PALS COMMITTEE THAT WE DO NEED TO PUT SOME MORE SAFETY IN OUR LOCAL POLICY.
I DON'T THINK THE RAMIFICATIONS OF EVERYTHING WAS REALLY CLEAR.
WE WERE VERY STRATEGIC IN SPENDING DOWN SOME OF THAT MONEY.
WE JUST DIDN'T KNOW IT WAS GOING TO GET THIS DOWN.
I APPRECIATE YOU BEING VERY TRANSPARENT OF WHERE WE'RE AT AND KNOWING WHAT WE NEED TO DO IN ORDER TO MOVE FORWARD TOGETHER. THANK YOU.
>> TEAM, IT SAYS, SHORT TERM LOAN.
I GOT A LINE OF CREDIT LAST YEAR FOR MY WORK, NEEDED IT.
WE BOUGHT A BUNCH OF FURNITURE IN MARCH, HAD TO PAY THE BILLERS WITH THEM, AND I DIDN'T SELL IT ALL.
I TOOK ME A FEW MONTHS TO SELL IT.
ONCE I SOLD IT, I PAID IT OFF, SHORT TERM LOAN.
THE ONLY QUESTION I HAVE IS THAT, BASED ON THE 31.5 MILLION, LOOKING AT THE NEXT THREE MONTHS, IF WE HAVE TO COME BACK AND DO ANOTHER ONE, WOULD THAT BE IN NOVEMBER POSSIBLY OR DECEMBER IF WE NEEDED TO?
>> WE HAVEN'T LOOKED THAT FAR YET.
WE'RE ALSO NOT SURE ABOUT THE TEA PAYMENT SCHEDULE BEGINNING IN SEPTEMBER BECAUSE SOME THINGS CHANGED IN THE LAW, AND THEY'RE GOING TO BE ADJUSTING THEIR PAYMENTS TO US ON A MONTHLY BASIS.
IN THE PAST, THEY HAD THE WHOLE YEAR LAID OUT, AND NOW THAT THEY HAVE DATA IN PERABILITY.
I DIDN'T SAY THAT RIGHT, BUT THEY HAVE OUR DATA RIGHT AWAY.
THEY PLAN ON MAKING ADJUSTMENTS.
WE DON'T KNOW WHAT THOSE LOOK LIKE YET.
IT'S A LITTLE TOUGH TO DETERMINE A CASH FLOW WHEN YOU DON'T KNOW THAT.
BUT AFTER WE GOT OVER THIS HURDLE.
THEN WE'RE LOOKING AT THE NEXT HURDLE AND CERTAINLY. YOU'RE GOING TO BE.
>> I'M REALLY CONFIDENT THAT WE ARE GOING TO BE HORIZON OUT WAY BEFORE IT'S A SURPRISE TO MAKE SURE WE CAN START WRAPPING OUR HEAD AROUND IT.
TEAM I MOVED THAT THE HAYSCISD BOARD OF TRUSTEES ADOPT A RESOLUTION AUTHORIZING THE ISSUANCE OF A HAYSCISD TAX AND ANTICIPATION NOTE AS DISCUSSED AND PRESENTED.
SECOND, MR. FLORES. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR. ALL THOSE OPPOSED? MOTION CARRIES 7-0.
>> FEELS GOOD. MOVING ON TO E6 ON PAGE 36.
[E.6. Consideration and possible adoption of a Resolution to appoint a firm for Efficiency Audit]
I'M ALMOST THERE. THIS IS THE CONSIDERATION OF POSSIBLE ADOPTION OF A RESOLUTION AUTHORIZING THE SELECTION OF AUDITOR TO CONDUCT AN EFFICIENCY AUDIT FROM PATO, BROWN, AND HILL LLP.MISS ATMERZ, YOU WANT TO TELL US ABOUT THIS?
>> YES. ONE OF THE HURDLES TO HAVING A TAX RATE ELECTION IS THAT YOU HAVE TO HAVE AN EFFICIENCY AUDIT BY A FIRM THAT IS ALLOWED TO PERFORM THOSE AUDITS.
THERE ARE VERY SPECIFIC REQUIREMENTS FROM THE STATE, AND OUR EXTERNAL AUDIT FIRM DOES PERFORM THESE EFFICIENCY AUDITS AS WELL.
AS I SAID, THERE WERE MANY SHORT TIMELINES.
ONE OF THE TIMELINES WAS THAT THE BOARD CALL FOR THE PLAN TRE AND HENCE AN AUDIT FOUR MONTHS BEFORE THE ELECTION DATE.
WHEN I WAS LOOKING AT IT, WE WERE THREE MONTHS TO THE ELECTION DATE, NOT FOUR MONTHS.
IN DISCUSSIONS WITH TAZBO AND THEIR ATTORNEYS, THEY DID SAY THAT THERE WAS AN EXCEPTION TO THE RULE.
THE EXCEPTION IS, IF THERE IS A DISASTER DECLARATION IN YOUR AREA THAT CAN EXEMPT YOU FROM THE FOUR MONTH TIMELINE.
[01:50:08]
BECAUSE OF THAT, WE ACTUALLY DON'T EVEN HAVE TO HAVE AN EFFICIENCY AUDIT.HOWEVER, I WOULD LIKE TO HAVE AN EFFICIENCY AUDIT, BECAUSE THIS IS THE STANDARD IF YOU'RE GOING TO HAVE A TAX RATE ELECTION.
I WOULD LIKE OUR AUDITORS TO BE ABLE TO LOOK AT IT AND STILL PROVIDE US THAT SAME INFORMATION.
THE INITIAL ROUTE OF CALLING IT FOUR MONTHS IN ADVANCE AND THEN HAVING THE AUDIT, AND THEN YOU HAVE A PUBLIC HEARING ON THOSE RESULTS BEFORE THE ELECTION.
THERE'S A TIMELINE FOR THAT AS WELL.
BUT BECAUSE WE TECHNICALLY DIDN'T EVEN HAVE TO HAVE THE EFFICIENCY AUDIT, WE DON'T HAVE TO HAVE A PUBLIC HEARING, BUT WE CERTAINLY WILL BRING THOSE RESULTS TO YOU.
IT WILL PROVIDE COMPARISONS TO OTHER DISTRICTS, AS SOME OF YOU HAVE HAD THE QUESTIONS, WHO ELSE HAS A TRE AND WHAT THEIR FINANCIAL PICTURE LOOKS LIKE.
IT WILL BRING SOME OF THOSE STATISTICAL COMPARISONS, AS WELL AS EFFICIENTLY ARE WE UTILIZING OUR FUNDS.
I WOULD LIKE TO HAVE THAT, AND I WOULD LIKE US TO FOLLOW THOSE INITIAL REQUIREMENTS AS MUCH AS POSSIBLE, EVEN THOUGH WE DIDN'T HAVE THE FOUR MONTHS TO DO IT.
>> THANK YOU. TEAM, LOOK TO MY LEFT, MR. FLORES.
>> THANK YOU FOR MENTIONING THE COMPLIANCE BECAUSE WHEN I SAW THE TIMELINE IN HERE, IT DIDN'T QUITE ADD UP.
THANK YOU FOR MENTIONING THAT AND THE EXCEPTION, AND THANK YOU FOR WANTING THAT AUDIT.
NOW AS FAR AS THE EXTENSIVENESS OF THIS AUDIT, AND THIS IS GOING TO REQUIRE PROPER DOCUMENTATION OF SPENDING RECORDS FROM EACH DEPARTMENT.
NOW, HOW ARE WE GOING TO COMMUNICATE EFFECTIVELY? HOW DOES THAT WORK? DO THIS GO THROUGH EACH DEPARTMENT? IS THIS PROVIDED COMPLETELY BY THE CFO AND THEIR STAFF OR HOW DOES THIS WORK?
>> THE AUDITORS HAVE THEIR AUDIT PROGRAM.
I DON'T HAVE THE AUDIT PROGRAM, I DON'T BELIEVE FOR ALL THE DOCUMENTS THAT I WAS GIVEN.
BUT THERE IS THE ENGAGEMENT LETTER IS IN YOUR PACKET, STARTING ON PAGE 39 OF WHAT THEY WILL PERFORM.
IT'S MORE GENERAL THAN DETAILED LIKE AN AUDIT PROGRAM WOULD BE.
I DON'T THINK THEY'RE LOOKING AT THE VARIOUS DEPARTMENTS AT ALL.
THEY DO THAT IN OUR NORMAL AUDIT.
THEY TALK TO EVERY DEPARTMENT ABOUT THEIR PROCEDURES AND THEIR CONTROLS, AND THEN THEY TEST THOSE CONTROLS.
I THINK A LOT OF THIS IS MORE STATISTICAL ANALYSIS, LOOKING AT OUR REVENUES AND EXPENDITURES AND THE RATE OF SPENDING AND WHAT WE'RE SPENDING IT ON AND COMPARING TO OTHER DISTRICTS AS WELL.
>> THANK YOU. I KNOW THAT OUR DISTRICT HAS OPERATED WITH EFFICIENCY AND THAT WE'VE MANAGED EFFECTIVELY OUR FINANCES.
HOWEVER, I DO WANT TO KNOW, IN REGARDS TO PUBLIC TRUST.
I THINK IT'S GREAT TO HAVE AN AUDIT BECAUSE, WHAT WE'RE ASKING, I THINK IS GOING TO REQUIRE PUBLIC TRUST.
IN THE CASE THAT WE SEE SOMETHING THAT COULD HAVE BEEN MANAGED BETTER.
HOW IS THAT DELIVERED, AND WHEN IS THAT REPORT GOING TO BE DELIVERED?
>> THE PLAN IS THAT THE AUDIT WOULD BE POSSIBLY A LITTLE BIT IN AUGUST, WE'RE TOWARD THE END OF AUGUST, MOSTLY IN SEPTEMBER, AND THEN WE SHOULD RECEIVE THE RESULTS IN OCTOBER ALREADY.
DEFINITELY BEFORE THE ELECTION.
>> YOU SAID THERE'S GOING TO BE A PUBLIC FORUM?
>> NO. WE CAN HAVE A PUBLIC HEARING.
THE NORMAL ROUTE WOULD BE TO HAVE A PUBLIC HEARING.
WE CAN CHOOSE HOW WE WOULD WANT TO HANDLE THAT.
BUT WE CERTAINLY COULD HAVE THAT.
>> THAT'S ALL I GO. THANK YOU.
>> AGAIN, I KNOW THERE'S A BUDGET, BUT I DON'T KNOW WHAT THE COST IS TO.
>> THE AUDIT. BETWEEN 17,000 -18,000.
>> IS THAT I GUESS COMING OUT OF OUR GENERAL FUND?
>> FOR THIS. OVERALL, I THINK THIS IS A GOOD THING.
IF WE'RE GOING TO ASK THE TAXPAYERS TO PROVIDE US MORE MONEY, THEN WE OWE IT TO THE TAXPAYERS TO SAY THAT WE'RE ACTUALLY USING IT EFFICIENTLY IN THE FIRST PLACE.
I KNOW IT SEEMS LIKE A LITTLE BIT MORE GENERAL A COMPARATIVE ANALYSIS VERSUS AN ACTUAL, EACH DEPARTMENT, YOU'RE SPENDING TOO MUCH ON THIS OR VERSUS THAT OR WHATEVER, WHICH IT'S GOOD, BETTER THAN WE CAN,
[01:55:01]
BUT I THINK WE OWE IT TO THE TAXPAYERS TO MAKE SURE THAT WE ARE USING OUR FUNDS EFFICIENTLY IF WE'RE GOING TO ASK THEM FOR MORE MONEY. THANK YOU FOR BRINGING US.>> TEAM. THANK YOU FOR TRANSPARENT AND SAY OF THIS.
YOU DIDN'T HAVE TO DO IT, AND WE'RE GOING TO DO IT SO THANK YOU FOR THAT.
TEAM, I MOVED THAT THE HAYSCISD BOARD OF TRUSTEES ADOPT A RESOLUTION TO APPOINT PATO BROWN AND HILL LOP AS THE AUDIT FIRM FOR AN EFFICIENCY AUDIT AS PRESENTED.
SECOND MISS PETRI. ANY FURTHER DISCUSSION? MR. VELA.
>> MR. ATMERZ, THANK YOU AGAIN.
JUST FOR GOING THE EXTRA STEP, I THINK THOSE JUST SHOWCASE AGAIN, WHO YOU ARE AND WHO WE WANT TO CONTINUE TO BE AS A DISTRICT.
IF WE WERE TO MOVE FORWARD WITH THE PUBLIC ENGAGEMENT OR THE PUBLIC FORUM, PART OF THINGS, WHAT WOULD THAT LOOK LIKE?
>> I DON'T KNOW THAT. I HAVE NEVER DONE ANY OF THIS BEFORE, EITHER.
WE WOULD PRESENT WHATEVER INFORMATION THEY PROVIDE TO US.
WHEN WE DO OUR ANNUAL AUDIT IN NOVEMBER, I WILL ALSO PROVIDE DETAIL ON THEIR AUDIT.
>> I WONDER IF BECAUSE THEY DO THIS, YOU SAID THROUGHOUT THE STATES.
I WONDER IF THEY HAVE A PUBLIC ENGAGEMENT PROCESS THAT MAYBE WE CAN LEAN ON JUST TO NAVIGATE OVER THE SHORTER WINDOW.
>> DO YOU MEAN LIKE THEIR AUDIT PROGRAM?
>> WELL, YOU'RE TALKING JUST PUBLIC INPUT, PUBLIC ENGAGEMENT FOR AGAIN, NORMALLY, WE WOULD HAVE GIVEN PUBLIC OPPORTUNITY, FOR THIS AUDIT.
>> MR. BELLO WOULD THINK WHAT SHE'S SAYING IS THAT WHEN THE AUDIT COMES IN, WE CAN HAVE A PUBLIC HEARING TO PRESENT WHAT THE FINDINGS ARE.
>> THAT'S WHAT I'M TRYING TO CLARIFY IF WE ARE DOING THIS, THEN.
>> I KNOW THAT WE'RE SHORT TRACKING THAT WE'RE DOING A 120 DAY AUDIT IN 90 DAYS OR LESS.
BUT I STILL WANT TO MAKE SURE WE INCLUDE THE ELEMENTS OF HAVING THAT PUBLIC ENGAGEMENT.
>> THEIR AUDIT FOR SOMETHING LIKE THIS IS ONLY THREE OR FOUR WEEKS LONG.
>> YES, SO IF WE WANT TO DO THE PUBLIC HEARING, WE CAN DO THAT AS PART OF PROBABLY THE OCTOBER MEETING, THEN WHICH WOULD STILL BE BEFORE THE ELECTION.
>> ANY FURTHER DISCUSSION? WE HAVE A MOTION IN A SECOND.
ALL THOSE IN FAVOR. AYE. ANY OPPOSE? MOTION CARRIES 70. WE'RE MOVING ON TO E7 ON PAGE 43.
I'VE HEARD A LITTLE RUMBLINGS THAT WE MIGHT NEED TO TAKE A EIGHT MINUTE BREAK.
WE TAKE AN EIGHT MINUTE BREAK. WE'RE BACK IN THE DIS AT 7:36. THANKS, TEAM.
TEAM THANKS FOR A LITTLE BREAK THERE.
APPRECIATE IT. WE'RE COMING BACK INTO E7, WHICH'S ON PAGE 43.
[E.7. Consideration and possible approval of an Order Calling for a Voter Approval Tax Rate Election]
NOW, THIS IS THE CONSIDERATION OF POSSIBLE ADOPTION OF AN ORDER CALLING FOR A VOTER APPROVED TAX RATE ELECTION.THIS IS THE ACTUAL WHERE WE ACTUALLY ARE GOING TO CALL FOR THE ELECTION IN NOVEMBER.
I KNOW WE HAD SOME QUESTIONS FROM PREVIOUS THAT WE PUSHED TO HEAR.
TO MY RIGHT. MISS [INAUDIBLE] LET YOU START THIS FOR US.
>> YES, START TO RIGHT. CAN YOU JUST ANSWER, IF THIS DOES NOT PASS BY THE VOTERS, WHEN WOULD WE START TO SEE PROGRAM CUTS AND LAYOFFS? WOULD THAT BE THIS SCHOOL YEAR OR NEXT SCHOOL YEAR, WHAT DOES THAT LOOK LIKE?
>> FOR THIS YEAR, WE'VE ALREADY CUT THE ATTRITION BEGINNING NOW AND SO A LOT OF THE POSITIONS, ESPECIALLY IN THE AREA OF CNI WERE NOT FILLED THIS YEAR.
THEN A LOT OF THE CAMPUSES WHERE WE HAD SOME OVERSTAFFING, WE HAVE MADE SURE TO LEVEL OUT.
A LOT OF THAT PROCESS HAS BEGUN NOW, BUT OUR GOAL IS, AND ALL CAN SEE THAT MONEY, WITH OUR BOARD GOALS.
WE'RE GOING TO HAVE A 3-5 YEAR PLAN ON HOW TO CUT THROUGH ATTRITION, SHOULD IT NOT PASS.
BASICALLY, WE'RE NOT TOTALLY SURE WHAT THE NUMBER BECAUSE WE'D GET OUR UPDATED DEMOGRAPHERS REPORT IN NOVEMBER OR DECEMBER, AND BASED ON THE GROWTH, WE'LL BASE OUR TOTAL NUMBER ON WHAT WE NEED TO CUT IN ORDER TO GET BACK INTO A HEALTHY POSITION.
TOTAL RIGHT NOW, IF NOTHING ELSE CHANGE, WE WOULD NEED TO CUT 600 POSITIONS ACROSS THE DISTRICT.
WOULD THAT BE 200 PER YEAR OVER THE NEXT THREE YEARS? WOULD THAT BE A LITTLE BIT LESS OVER FIVE YEARS? WE'LL JUST HAVE TO HAVE TO DECIDE WHAT WE CAN STOMACH AND
[02:00:02]
WHAT OUR CLASS SIZES WOULD BE AND WHAT PROGRAMS WE WOULD HAVE TO LOSE.>> THANK YOU, DOCTOR WRIGHT. WHEN YOU START TALKING ABOUT MAKING CUTS TO STAFF AND PROGRAMS, THAT AFFECTS THE EDUCATION OF OUR CHILDREN, AND THEY ARE GOING TO FILL THAT.
AT THE END OF THE DAY, THE QUESTION IS, WHAT IS YOUR INVESTMENT INTO OUR CHILDREN AND INTO THIS COMMUNITY? I HIGHLY ENCOURAGE EVERYONE THAT IS LISTENING TO EDUCATE YOURSELF ON WHAT THIS SCHOOL DISTRICT IS DOING, WHAT WE'RE POTENTIALLY VOTING FOR TONIGHT AND IT OUT AND MAKE ACISD A PRIORITY IN THIS COMMUNITY BECAUSE AS MISSES [INAUDIBLE] SAID, WE CANNOT PAY OUR BILLS, AND IN ORDER TO INCREASE SALARIES AND PAY PEOPLE WHAT THEY DESERVE.
AGAIN, WE CAN'T PAY THEM WHAT THEY DESERVE BECAUSE THEY SHOULD BE PAID WAY MORE THAN THEY ARE.
IT'S GOING TO COME DOWN TO THIS, I GREATLY APPRECIATE ALL THE WORK THAT YOU'VE DONE IN THIS.
THIS IS PROBABLY THE MOST DETAILED FINANCIAL PRESENTATION THAT I HAVE SEEN SINCE I HAVE BEEN ON THIS BOARD.
I CAN TELL THAT YOU GUYS HAVE DONE A LOT OF WORK, AND I AM SO INCREDIBLY SORRY THAT YOU'VE HAD TO COME INTO THIS DISTRICT IN SIX WEEKS AND DO ALL OF THE WORK THAT YOU'VE HAD TO DO.
BUT IT DOES NOT GO UNNOTICED, AND WE'RE INCREDIBLY GRATEFUL.
WHAT I WAS SAYING EARLIER IS THAT WE HAVE VOTERS, MAJORITY OF OUR VOTERS IN OUR DISTRICT, ARE TEACHERS AND STAFF.
IF THIS IS APPROVED TONIGHT, AND WE GO TO THE VOTE IN NOVEMBER, PLEASE. VOTE. THANK YOU.
>> THANK YOU. LET'S BE OPTIMISTIC FOR A MOMENT AND WE VOTE THIS TONIGHT IN NOVEMBER THE 4TH.
WHAT DID THOSE IMMEDIATE STEPS LOOK LIKE? I KNOW THERE'S SOME RETRO LANGUAGE IN THERE.
>> I DID CHECK WITH THE TAX OFFICE, AND THEY NORMALLY WOULD SEND OUT TAX BILLS IN THE FIRST OR SECOND WEEK OF OCTOBER AFTER WE ADOPT THE TAX RATE WHICH WE CAN ADOPT TOWARD THE END OF SEPTEMBER, THEY ARE WILLING AND READY TO HOLD THE TAX BILLS TO SEND THEM OUT IN THE FIRST OR SECOND WEEK OF NOVEMBER WITH THE TAX RATE THAT IT WOULD HAVE TO BE.
IF THE TRE DID NOT PASS, THAT MEANS THAT THE TAX RATE GOES BACK TO YOUR QUESTION.
ACTUALLY, AS I'M SAYING IT OUT LOUD, IT AUTOMATICALLY ROLLS BACK TO THE MAXIMUM THAT WE COULD HAVE, WHICH WAS WHAT WE PUT ON THE JUNE HEARING THAT WAS IN THE PAPER.
IT AUTOMATICALLY WOULD REVERT TO THAT MAXIMUM TAX RATE, THE 1546, AND THAT'S WHAT WOULD GO ON THE TAX BILLS.
BUT THEY ARE VERY AUTOMATED THESE DAYS, AND SO THEY ARE READY TO PLUG IT IN AND PRINT THEM OUT AND MAIL THEM.
>> GREAT. THAT'S A GOOD FIRST STEP.
AGAIN, WE'RE FAST TRACKING THIS DOWN THE ALL YES.
WHAT DO WE DO ABOUT 26 AND 27? WHAT POSITION AGAIN, AND I KNOW WE DON'T HAVE THE CRYSTAL BALL TO.
>> IT JUST MAY NOT BE AS CLEAR SOMETIMES.
>> MR. PAUL IS WHAT I USE ALL THE TIME.
WELL, AS WE LAY OUT THE NEXT SEVERAL YEARS, THE PLAN WOULD BE TO AT LEAST SAVE THAT 18-20 MILLION A YEAR.
IF WE CAN GET THE FUND BALANCE UP BY THAT, AND THEN WE HAVE TWO MONTHS OF FUND BALANCE THAT WE CAN SQUEAK BY DURING THESE HARD MONTHS.
PLANS CHANGE, BUT THAT WOULD BE THE PLAN.
>> WHAT WE TALKED ABOUT IS SAY WE GET THE 26 MILLION.
WHAT WE MIGHT BE RECOMMENDING IS SPENDING ABOUT 4.5 OF THAT FOR THE STAFF INCREASES FOR THIS YEAR, AND THEN PUTTING THE OTHER 20 IN THE FUND BALANCE, AND THEN DOING THE SAME THING YEAR AFTER YEAR UNTIL WE GET TO WHERE WE NEED TO BE.
BUT ALSO EARMARKING THE OPENING OF COMPREHENSIVE HIGH SCHOOL FOUR, MIDDLE SCHOOL SEVEN, ELEMENTARY 18.
WE KNOW WE'RE ALSO GOING TO HAVE TO SET ASIDE 15 MILLION FOR THE OPENING OF THE NEW HIGH SCHOOL.
WE'RE GOING TO HAVE TO SET ASIDE PROBABLY 7.5
[02:05:02]
FOR MIDDLE SCHOOL AND FIVE FOR AN ELEMENTARY.DEBORAH MENTIONED IT EARLIER, BUT WE WOULD RESERVE, I THINK YOU SAID IT TO JEFF, WE WOULD RESERVE THE FUND BALANCE FOR THE OPENING OF THOSE SCHOOLS.
THEN WE WOULD MAKE SURE THAT WE KEPT WHATEVER THAT 25% IS.
IT WOULD CONTINUE TO INCREASE AS OUR BUDGET INCREASES.
>> IT WILL TAKE MANY YEARS TO GET THERE.
IT'S NOT AS EASY TO BUILD IT BACK UP, IT'S THE SAME AS IN OUR HOMES. IT'S THE EXACT SAME.
>> THANK YOU FOR SAYING THAT. I WAS JUST SO WE'RE REALISTICALLY, ALL THINGS REMAINING EQUAL.
OR YOUR CRYSTAL BALL IS VERY CRYSTAL CLEAR.
THEN WE'RE LOOKING AT ABOUT A THREE YEAR PROCESS TO RIGHT UP THIS SHIP, IF YOU WILL.
BUT WE WOULD BE ON THE RIGHT PATH.
>> I'LL HOLD THE REST OF MY QUESTIONS UNTIL AFTER I HEAR FROM THE REST OF OUR TEAM.
>> ON THE THREE EXTRA GOLDEN PENNIES, TALK TO ME ABOUT WHY DISTRICTS DON'T MAX THOSE OUT.
IS IT JUST BECAUSE YOU HAVE TO GO OUT FOR A TIER AND IT'S IT'S JUST A LOT.
>> YES. THAT'S PART OF IT AND UNTIL THE STATE STARTED COMPRESS MAKING US REDUCE OUR M&O TAX RATE AND INCREASE THE HOMEOWNERS EXEMPTION, IT ABSOLUTELY WOULD HAVE BEEN AN INCREASE TO PEOPLE.
NOW, WITH HAVING THOSE OTHER TOOLS AS PART OF THE FORMULA, IT DOESN'T HIT OUR HOMEOWNERS AS MUCH.
BY THE EXAMPLE, $370,000 AVERAGE MARKET PRICE, THAT HOME IF IT HAS A HOMEOWNERS EXEMPTION ON IT, WE'LL STILL SAVE HALF OF WHAT WAS PLANNED.
THEY WILL STILL SAVE HALF AND SO THIS IS THE WAY THAT WE'VE BEEN ABLE TO USE THE TOOLS TO BE REALLY POSITIVE FOR EVERYBODY, BECAUSE THEY'LL STILL SAVE SOME AND WE WILL GET SOME.
YOU DON'T GET THOSE THAT OFTEN.
BUT UNTIL THEY STARTED DOING THAT, COMPRESSION OF THE TAX RATE AND INCREASING THE EXEMPTIONS, IT WAS ALWAYS A COMPLETE INCREASE TO THE HOMEOWNERS.
>> ISN'T THERE SOME PRESSURE FROM THE STATE TO MAXIMIZE YOUR GOLDEN PENNIES? I FEEL LIKE I'VE HEARD THAT OVER THE YEARS, BUT I DON'T.
>> I'VE NEVER HEARD THAT, AND MY GUESS WOULD BE NO BECAUSE THAT COSTS THEM MONEY.
BECAUSE THEY'RE PAYING US MORE FOR THOSE PENNIES.
DO THEY WANT LOCAL COMMUNITIES TO FUND THEIR SCHOOLS? YES, WE ABSOLUTELY SEE THAT ON THE DEBT SERVICE SIDE.
WE HAVE TO PUT THE BUILDINGS OUT THERE.
BUT DO THEY WANT TO SAVE MONEY FOR TAXPAYERS? YES, BOTH.
>> I CAN ADD TO, LIKE, ON THE ELECTION SIDE OF IT.
I'VE JUST LOOKED AT IN DOING MY RESEARCH ON TRES BECAUSE THIS IS THE FIRST ONE THAT I'LL DO IN MY CAREER AFTER 30 YEARS.
I KNOW THAT'S THE FIRST TIME WE'VE DONE IT HERE.
I DID A LITTLE RESEARCH. LOT OF DISTRICTS IN THE DALLAS AREA DID IT IN ABOUT 2018.
THERE WERE SEVERAL SCHOOL DISTRICTS IN THE AUSTIN AREA THAT DID IT LAST YEAR OR THE YEAR BEFORE.
SOME OF OUR NEIGHBORING DISTRICTS HAVE DONE IT.
I THINK YOU'RE GOING TO START TO SEE MORE AND MORE OF THIS OCCURRING.
AS A WAY TO TAP INTO AVAILABLE REVENUE TO SCHOOL DISTRICTS, GIVEN WHERE WE'RE AT WITH OUR BASIC ALLOTMENT FUNDING AND STUFF.
>> THAT MAKES SENSE. I JUST WANTED TO AND I'VE HEARD.
I KNOW YOU'LL HAVE SAID IT, BUT I WANT TO JUST MAKE CRYSTAL CLEAR, SO THERE'S NO QUESTION ABOUT IT.
THE $40,000 TAX EXEMPTION IS ALSO AN ITEM ON THE BALLOT, SO IT'S NOT A DONE DEAL.
IT WOULD HAVE TO ALSO BE APPROVED BY VOTERS.
THAT WOULD THAT EXTRA TECHNICALLY, IT COULD FAIL.
I DON'T YOU THE HISTORY OF THOSE THINGS IS REAL, LIKE, I DOUBT IT WILL, BUT JUST TECHNICALLY IN ADDITION TO IF YOU CALL FOR THIS SELECTION ON THIS ITEM HERE, IN ADDITION TO OUR TRE BEING ON THE BALLOT, THEN VOTERS WOULD ALSO HAVE AN ITEM TO VOTE FOR OR AGAINST THAT ADDITIONAL $40,000 HOMESTEAD EXEMPTION.
>> THANK YOU FOR A LITTLE BIT OF HISTORY LESSON ON THE GOLDEN PENNIES AND WHAT OTHER DISTRICTS ARE DOING.
[02:10:02]
I FEEL LIKE, AND WE'VE HEARD A NUMBER FROM DR.WRIGHT THAT WE'LL HAVE TO MAKE SOME REALLY TOUGH CHOICES IF THIS DOESN'T GO THROUGH.
THANKS FOR YOUR TRANSPARENCY AROUND THAT.
WE CUT SPECIALS ROTATIONS BY ONE PERSON AT A FEW CAMPUSES, AND WE GOT A LOT OF HATE MAIL.
I CAN'T EVEN IMAGINE WHAT SADNESS WE WILL ENCOUNTER IF WE HAVE TO CUT 200 EMPLOYEES.
>> IN ONE YEAR, 600/3 YEARS, SO 200 OVER.
>> THAT SOUNDS, NOT ACCURATE, EITHER. BUT IT IS.
IF ON AVERAGE, AN EMPLOYEE IS MAKING 75,000, IF YOU MULTIPLY BY 200, YOU GET 15 MILLION, AND WE NEED AT LEAST 45 MILLION.
NONE OF IT SEEMS LIKE IT COULD BE ACCURATE? BUT IT IS.
>> WELL, WE DID A RIFF IN THIS DISTRICT IN 2012.
I DON'T KNOW IF ANYBODY REMEMBERS HOW MANY IT WAS 2011.
I WAS GOING TO SAY AROUND 200 AND THAT WAS DEVASTATING.
>> AT THAT TIME, THAT WAS ANOTHER TIME IN THE FUNDING HISTORY THAT THE STATE HAD NOT PROVIDED US INCREASES IN FOUR OR FIVE YEARS.
>> WELL, AND WE HAD THE HOUSING CRISIS, AND 32 HOMES WERE IN FORECLOSURE IN MY PERSONAL NEIGHBORHOOD, AND I WAS A TERRIBLE FINANCIAL CRISIS THAT WE ALL LIVED THROUGH.
THIS FEELS LIKE AN ATTACK ON PUBLIC ED PERSONALLY.
BUT I I DON'T WANT THAT FOR A DISTRICT AGAIN, SO I'M HOPEFUL THAT THIS MIGHT BE A WAY FOR US TO KEEP OUR EMPLOYEES, PAY THEM MORE, BUILD UP OUR SAVINGS ACCOUNT, OVERTIME, OPEN OUR HIGH SCHOOL, OPEN A MIDDLE SCHOOL.
OTHERWISE, SOME OF THOSE THINGS MAY HAVE TO BE PUT ON HOLD.
WHAT WE'D HAVE TO DO. THANK YOU.
I FEEL LIKE I DON'T HAVE ANY OTHER QUESTIONS.
MAYBE ABOUT THE TIMELINE, BUT I THINK I CAN ASK YOU THOSE LATER.
WE'LL VOTE TONIGHT, AND THEN THIS WILL BE ON THE BALLOT IN NOVEMBER.
>> MEMBER FOURTH. YES. EARLY VOTING WAS OCTOBER 20.
THEN IT'S SIMILAR REALLY TO A BOND OR A TRUSTEE ELECTION ONCE, WE'LL GET THE UNOFFICIAL RESULTS.
THEN IT'LL BE A SLIGHT WAITING PERIOD FOR THE COUNTY BALLOT BOARDS AND ALL THE OVERSEAS BALLOTS TO QUALIFY AND EVERYTHING AND THEN YOU'LL CANVASS THE ELECTION AND GO THROUGH JUST LIKE WE DO ON A CANVASSING OR ANY OTHER ELECTION THAT WE DO.
>> THEN THE MONEY GETS FUNDED JUST NORMALLY WHEN YOU WOULD NORMALLY GET YOUR TAX.
WOULD IT BE RETROACTIVE? FOR THAT YEAR'S TAXES?
>> YES, IT WOULD BE FOR THE TAXES THAT GO OUT ON THE NOVEMBER BILLING.
>> THEN WE DID ALREADY LOOK AT THE CANVASSING THE DATE?
>> THE NORMAL NOVEMBER MEETING.
YES, WE'LL JUST BARELY MEET THE REQUIREMENT. THAT DAY.
>> YES. THE DEADLINE IS THE 17TH, BUT YOU'LL ALREADY HAVE A MEETING SCHEDULED FOR THAT. WE'RE GOOD ON THAT.
>> I DIDN'T WANT TO SAY IT BECAUSE I WAS ABOUT ONLY 97% SURE IT WAS THE 17TH.
>> TODAY IS THE LAST DAY TO BE ABLE TO CALL FOR THE VOTER APPROVAL ELECTION.
>> WELL, THANK YOU FOR BRINGING THIS TO US.
>> THANK YOU AGAIN FOR THIS PRESENTATION.
I KNOW I ALLUDED THIS EARLIER.
IT WAS MENTIONED EARLIER, THAT, WE DIDN'T KNOW, OR SOME OF US MAY FEEL A LITTLE BLINDSIDED ABOUT THIS, BUT I THINK ULTIMATELY, A FEW MONTHS AGO, THOSE PEOPLE WHO MARCHED IN FAVOR OF PUBLIC EDUCATION KNEW.
I THINK THE PEOPLE THAT TESTIFIED FOR PUBLIC EDUCATION KNEW, AND WE'RE TRYING TO SOUND THOSE ALARM BELLS.
BUT ULTIMATELY, I THINK NOW WE'RE DEALING WITH THE REALITY OF WHAT THE MAJORITY AT THE STATE HOUSE DECIDED ON $395, I THINK WAS IN THE HOUSE BILL.
ULTIMATELY, THEY DECIDED ON $55.
WHICH WAS WHOLLY INADEQUATE, NOT TO MENTION ALL THE UNFUNDED MANDATES THAT WERE BEING GIVEN.
ALL THIS BEING SAID, AND DOCTOR RIGHT I ALLUDED TO IT WE TALK ABOUT CUTS, AND WE TALK ABOUT THE INCREASE IN CLASS SIZES.
ULTIMATELY, OUR GOAL UP HERE IS TO PROVIDE, THE BEST STUDENT OUTCOMES.
CAN YOU JUST TALK A LITTLE BIT ABOUT WHAT THAT MEANS FOR TEACHERS WITH INCREASED CLASS SIZES, WHAT THAT MEANS,
[02:15:01]
OR THE ALTERNATIVE OF THIS BEING APPROVED, AND WHAT THAT MEANS IS STUDENT OUTCOMES, AND OUR DISTRICT GOALS?>> YEAH, LET ME START WITH THE POSITIVE SIDE OF THINGS.
OVER THE COURSE OF TIME, THE REASON THAT WE'RE PROBABLY IN THE CONDITION WE ARE IN IS BECAUSE WE WANTED TO, HOLD THE LINE ON CLASS SIZES.
WE WANTED TO ADD NEW PROGRAMS SO THAT KIDS COULD PARTICIPATE AND BE INVOLVED IN THINGS TO LEARN ALL OF THOSE EMPLOYABILITY SKILLS.
LISTENING TO OUR DEMOGRAPHERS REPORT, 86% OF ALL KIDS THAT ARE ZONED FOR ACIST GO TO ACISD, AND WE FEEL LIKE, THAT WE'RE IN A GREAT COMPETITION WITH ALL THE PRIVATE SCHOOLS AND CHARTER SCHOOLS AND NOW HOME SCHOOL, AND WE THINK THAT ONE OF THE REASONS THAT WE'RE ABLE TO RETAIN SO MANY PEOPLE IS BECAUSE OF THE PRODUCT THAT WE OFFER.
WE WANT TO BE ABLE TO HOLD ON TO ALL OF THOSE OFFERINGS BECAUSE WE KNOW THAT IT'S A VALUE ADD, AND THAT'S WHAT PEOPLE WANT.
ON THE FLIP SIDE, IF YOU'RE UNABLE TO HOLD A LINE ON CLASS SIZES AND YOU'RE UNABLE TO RETAIN VETERAN TEACHERS, THEN YOU'RE GOING TO BASICALLY FLIP THAT NARRATIVE.
YOU'RE GOING TO HAVE HIGHER CLASS SIZES WITH PEOPLE WITH LESS EXPERIENCE, THAT AREN'T TRAINED AS WELL.
THEN IT'LL BE INCUMBENT UPON US TO MAKE SURE THAT WE PROVIDE PLENTY OF PROFESSIONAL DEVELOPMENT TO GET THROUGH AND THEN ALSO, WE'LL HAVE TO STOP, OFFERING SOME OF THE QUALITY PROGRAMS THAT WE HAVE THAT WE ALL KNOW THAT ARE GOOD FOR KIDS.
THAT'S THE COMPARISON CONTRAST OF IT ALL.
BUT I KNOW, LOOKING AT ALL THE OTHER DISTRICTS, AS MR. SAVOY MENTIONED, PRETTY MUCH ALL THE TRES IN THE AREA HAVE PASSED BECAUSE THE FURTHER YOU GET AWAY FROM THE PROBLEM, LIKE THE STATE DOESN'T KNOW WHAT'S HAPPENING IN ACISD.
THEY DON'T FEEL LIKE THEY NEED TO INCREASE THE BASIC ALLOGMENT.
BUT PEOPLE HERE ARE THE PEOPLE THAT WE LISTEN TO, AND WE HAVE HEARD THEM, AND THEY'VE ASKED THAT WE PUT THESE THINGS IN PLACE, AND SO WE HAVE.
I'M HOPEFUL THAT THEY WILL BE RESPECTFUL OF THAT, AND WHEN THEY HAVE AN OPPORTUNITY TO GO AND CAST THEIR VOTE, THEY WILL REMEMBER WHAT HAS ALLOWED US TO GET TO WHERE WE ARE, AND HOPEFULLY THAT VOTE WILL ALLOW US TO MAINTAIN THOSE SERVICES.
>> THANK YOU, DOCTOR, I KNOW YOU'VE MENTIONED, THE TEXAS MIRACLE, AND HOW THAT INVESTMENT IN EDUCATION YIELDS A RETURN ON INVESTMENT, THAT'S PRETTY SIGNIFICANT.
BUT THE QUESTION I HAVE IS IN REGARDS TO THE COMMUNICATION AND PUBLIC ENGAGEMENT PIECE.
WE JUST HAD THE ELECTION A FEW MONTHS BACK ON THE 2025 BOND.
WHAT DOES THIS ENGAGEMENT LOOK LIKE AS FAR AS WITH THE PUBLIC AND THE COMMUNICATION STRATEGY THAT'S GOING TO BE UTILIZED IN WITH THE HEADWINDS OF MISINFORMATION.
FROM MANY SIDES THAT ARE GOING TO USE THIS FOR POLITICAL PURPOSES OR TO MISINFORM THE PUBLIC ON WHAT THIS REALLY MEANS AND WHY WE GOT HERE. WHAT'S THAT GOING TO LOOK LIKE?
>> WELL, I'LL START OUT WITH THE OVERARCHING THEME, AND WE'VE ALWAYS SAID IT AS A DISTRICT ADMINISTRATION AND THE SCHOOL BOARD AS WELL, THAT THE SCHOOL DISTRICT BELONGS TO THE COMMUNITY, WE KNOW THAT IS A FACT.
YOU'RE NOT VOTING TONIGHT ON THIS PARTICULAR ITEM.
IF YOU RAISE ANY TAX RATE, YOU'RE VOTING TO BRING IT TO THE PEOPLE TO MAKE A DECISION.
IT'LL GO TO THE VOTERS, THE PHILOSOPHY, ONE SIDE OF IT IS, WELL, IF YOU DON'T CALL FOR THIS ELECTION, THEN YOU'RE NOT GIVING THE FOLKS A CHANCE TO WEIGH IN ON IT.
IF YOU CALL FOR IT, THEN IT WILL BE BEFORE THE VOTERS AND THE COMMUNITY, THE PEOPLE WHO OWN THIS SCHOOL DISTRICT TO MAKE THAT DECISION.
WE'LL START OUT WITH THE LEGAL SIDE OF IT.
WE CANNOT CAMPAIGN FOR ANYTHING.
WE CAN PROVIDE FACTUAL INFORMATION, AND THAT'S THE WAY IT SHOULD BE, BECAUSE THERE WILL BE PEOPLE THAT ARE GOING TO BE FOR THIS, AND THERE ARE GOING TO BE PEOPLE THAT ARE AGAINST THIS FOR ALL OF THE REASONS THAT THEY HAVE ON EITHER SIDE OF THE CAMP.
WHAT WE'LL DO IS WE'LL PROVIDE, IN FACT, WE ALREADY HAVE AN INFORMATION SHEET THAT'S READY TO GO, SHOULD YOU CALL FOR ONE.
WE JUST NEED TO ADJUST AND FILL IN SOME NUMBERS ON IT.
IT'LL BE UP TONIGHT, THAT'LL GIVE SOME OF THE BASIC INFORMATION.
WE'LL PROVIDE THAT JUST LIKE WE DO A BOND INFORMATION SHEET.
WE'LL HAVE A WEBSITE THAT WILL MAKE LIVE, A WEB PAGE, EXCUSE ME, THAT WILL GO LIVE TONIGHT IF YOU VOTE A CALL FOR AN ELECTION.
THEN, OF COURSE, WE'LL HAVE LOTS OF PRO INQUIRIES FROM NEWS MEDIA AND THINGS LIKE THAT.
BUT AT THE END OF THE DAY, WE CAN PROVIDE FACTUAL INFORMATION AS A SCHOOL DISTRICT IN OUR OFFICIAL CAPACITIES.
THIS WILL BE A COMMUNITY DECISION, AND IT'LL BE UP TO COMMUNITY MEMBERS AND GROUPS TO ENGAGE.
WE SEE THAT ROBUSTLY WITH BONDS AND OTHER THINGS.
THERE ARE LOTS OF ORGANIZATIONS IN OUR COMMUNITY THAT WILL ENGAGE.
YOU'LL SEE LOTS OF INDIVIDUALS ENGAGE ON SOCIAL MEDIA.
NO ONE LOSES THEIR CONSTITUTIONAL FREE SPEECH
[02:20:01]
RIGHT AS AN EMPLOYEE OF THE DISTRICT TO ON THEIR OWN TIME, AND WITH THEIR OWN EQUIPMENT ENGAGE IN THE POLITICAL DISCOURSE.IT IS ILLEGAL, OF COURSE, TO USE ANY DISTRICT, EQUIPMENT OR DISTRICT TIME OR RESOURCES, BECAUSE, AGAIN, THE DISTRICT BELONGS TO THE COMMUNITY, SO EVERYBODY OWNS A LITTLE PIECE OF WHAT IF WE MAKE A COPY OF SOMETHING, WE GOT PEOPLE WHO PAID FOR IT THAT ARE FOR THIS, AND PEOPLE WHO PAID FOR IT THAT ARE AGAINST IT.
WE CAN'T PICK ASIDE AS A GOVERNMENTAL ENTITY.
BUT IT'LL BE VERY SIMILAR, WE'LL HAVE THE MATERIALS THAT ARE AVAILABLE SO THAT IF PEOPLE WANT TO COME BACK AND LOOK AND FACT CHECK AND SEE THE INFORMATION THAT IS PROVIDED AS JUST FACTUALLY FLAT, WITH SOURCE MATERIAL CITED AND ALL OF THAT THAT'LL BE AVAILABLE ON OUR WEBSITE.
>> YES, MRS. GLORIA, CAN YOU GO TO THE SUPERINTENDENT REPORT PAGE 5? AS WE'RE TALKING ABOUT GOING OUT FOR THIS FADER, IT'S REALLY IMPORTANT TO START WITH OUR OPERATIONAL TAX RATE AND HOW IT HAS BEEN COMPRESSED IN YEARS.
I REALLY WANT TO LOOK AT THAT FOR A MOMENT.
DOCTOR WRIGHT, I KNOW YOU WENT THROUGH THIS REAL QUICKLY AT THE BEGINNING, BUT CAN YOU JUST GO THROUGH PAGE 5, WHERE IT IS THE WHY, MRS. GLORIA? WHY FIRST? I'M SORRY.
YES. NO, THIS ONE, I WANT THIS ONE.
YES, DOCTOR WRIGHT. CAN YOU TALK A LITTLE BIT ABOUT THAT AND THE STRATEGY BEHIND THAT AND WHY WE CHOSE TO DECREASE THE TAX RATE?
>> AS YOU CAN SEE, WE'VE DECREASED THE TAX RATE $0.31 SINCE 2020.
THE MAJORITY OF THAT WAS COMPRESSION FROM THE STATE, AND BY BUYING DOWN PROPERTY TAXES AND THEN WHAT THE NEW EFFECTIVE TAX RATE COULD BE.
AS MRS. ATMERZ MENTIONED, THE TIMING IS REALLY GOOD WITH THIS BECAUSE THE HOMESTEAD EXEMPTIONS HAVE BEEN INCREASED OVER THE LAST COUPLE OF SESSIONS.
WHEN YOU LOOK AT THE COMPARATIVE NUMBER, YOU CAN USE THIS, WHERE IT ALMOST AS A WIN WIN FOR THE DISTRICT AND FOR THE TAXPAYER BECAUSE THEY'RE NOT GOING TO PAY MORE ON THE AVERAGE HOME, THAN THEY DID LAST YEAR.
A MATTER OF FACT, THEY SHOULD SEE A SAVINGS.
NOW OBVIOUSLY, AS SHE MENTIONED, YOU COULD SAVE EVEN MORE, BUT IN THE GRAND SCHEME OF THINGS, YOU'LL STILL BE PAYING LESS SHOULD THE $40,000 HOMESTEAD EXEMPTION PASS.
I FEEL LIKE IT WILL. TIM THINKS IT'S NOT A DONE DEAL, BUT I THINK IT IS.
>> I DIDN'T SAY I HAD AN OPINION ONE WAY, THEY JUST NEEDED A CAVEAT THAT THE VOTERS DO HAVE TO APPROVE THAT FOR IT TO TAKE EFFECT.
>> I THINK IT'S REALLY IMPORTANT TO HIGHLIGHT, THAT WE HAVE DECREASED $0.31.
SINCE 2020, THAT'S A REALLY IMPORTANT PIECE BECAUSE WE ARE HEARING MISINFORMATION, AND WHILE WE CANNOT ADDRESS EVERY PIECE OF MISINFORMATION OUT THERE, WE NEED TO HIGHLIGHT WHAT IS ACTUALLY FACTUAL AND WHAT WE HAVE DONE.
WE CONSTANTLY HEAR, YOU'RE ALWAYS RAISING OUR TAXES WHERE AGAIN, MRS. OTOME SAID, I APOLOGIZE FOR YOUR LAST NAME.
SAID, THERE'S HAYS COUNTY TAXES.
MRS. RUNKEL TALKED ABOUT THIS TOO.
THERE'S COUNTY TAXES, CITY TAXES OF TAXES.
BUT AS FAR AS OUR PORTION OF IT, WE HAVE NOT INCREASED THOSE TAXES.
WE HAVE ACTUALLY DECREASED MORE THAN $0.31 SINCE 2020.
IMPORTANT TO HIGHLIGHT THAT AND MAKE SURE WE PUT IT OUT THERE IN THE MEDIA AND WITH OTHER PEOPLE BECAUSE IT IS NOT SOMETHING THAT IS CREDITED TO THE DISTRICT AT ALL, AND WE HAVE BEEN VERY SPECIFIC A KEEPING OUR TAXPAYER IN MIND AND DECREASING WHERE WE COULD, PAYING DOWN THE BOND, AND DOING ALL THINGS TO BE FINANCIALLY STABLE.
MRS. GLORIA, CAN YOU GO TO THE WHAT IF?
>> WAIT, LET ME MAKE ONE MORE IF I COULD ON THIS.
IF THE $0.12 WERE ADOPTED BY THE VOTERS, IT WOULD BE THE TOTAL TAX RATE WOULD BE MORE THAN 25 AND 24, BUT IT WOULDN'T BE MORE THAN 23, SO YOU'RE SEEING IT'S JUST THE PAST TWO FISCAL YEAR.
>> THAT'S SOMETHING THAT WAS ALSO HIGHLIGHTED BY DOCTOR WRIGHT UNDERSTANDING THAT.
THAT WE'RE ACTUALLY GOING TO BE PAYING LESS THAN 2023.
DOCTOR WRIGHT, WHAT IF THIS PASSES? YOU MENTIONED IT, BUT I LIKE SEEING THE SLIDE UP THERE FOR EVERYONE TO REALLY HAVE A VISUAL, OF WHAT IT MEANS IF IT PASSES, BEING POSITIVE AND KNOWING THAT OUR COMMUNITY SUPPORTS PUBLIC EDUCATION, THE MAJORITY OF OUR COMMUNITY, 99% OF THEM SUPPORT PUBLIC EDUCATION AND WHAT'S GOOD FOR KIDS AND DOING RIGHT BY THEM.
[02:25:03]
IF IT DOES PASS, WHAT WILL HAPPEN?>> WE'LL BE ABLE TO RETROACTIVELY PROVIDE RAISES FOR TEACHERS AND STAFF FOR THE FISCAL YEAR THAT WEREN'T INCLUDED IN THE LEGISLATIVE AGENDA, AND SOME FOR THOSE THAT WERE.
THEN WE CAN HOLD THE LINE ON OUR CLASS SIZES AT 22-1 FOR ELEMENTARY.
THEN, MOST IMPORTANTLY, LIKE I MENTIONED BEFORE, TOO, WE CAN REBUILD THE FUND BALANCE AND MAKE SURE WE HAVE STABILITY SO THAT WE CAN PAY OUR BILLS ON TIME ALL THE TIME.
>> SOME GREAT THINGS THAT WE CAN DO AND SOME OF IT IS JUST MINIMUM.
PAYING OUR BILLS. THAT'S A MINIMUM THING.
WE'RE NOT TRYING TO GET RICH OUT THERE.
WE ARE TRYING TO PAY PEOPLE JUST COST OF LIVING INCREASES.
YOU DID MENTION EARLIER THAT ON AVERAGE, IT'S LIKE 75,000 PER EMPLOYEE.
THAT INCLUDES BENEFITS AS WELL.
I DON'T WANT PEOPLE LISTENING TO THINK THAT IS THEIR SALARY.
THAT INCLUDES BENEFITS AS WELL.
DOCTOR WRIGHT, RIGHT HERE IN THE WHAT IF IT PASSES? WE TALK ABOUT THE COST OF LIVING INCREASES AND RAISES FOR STAFF.
ANOTHER DIVISIVE THING THAT YOU OFTEN HEAR IS, WELL, THAT ADMIN GETS PAID SO MUCH MONEY.
WHAT IS THAT COMPARED TO STAFF? CAN YOU PLEASE ADDRESS THAT PIECE?
>> WE THINK THAT EVERY POSITION THAT WE HAVE IN THE DISTRICT IS IMPORTANT.
ESPECIALLY NOWADAYS, IT'S REALLY HARD TO TAKE ALL THE MANDATES FROM THE STATE AND THEN ENFORCE THOSE.
YOU HAVE TO HAVE PEOPLE THAT ACTUALLY WILL FLY THE PLANE AND MAKE IMPORTANT AND TOUGH DECISIONS AND KEEP EVERYBODY ORGANIZED.
THE LAST COUPLE OF YEARS, WE HAVEN'T BEEN ABLE TO GIVE ADMINISTRATORS COST OF LIVING INCREASES, AND THEY WORK HARD.
WE'VE ADDED IN THE SAME TIME, WE HAVEN'T BEEN ABLE TO PROVIDE INCREASES FOR THEM.
WE'VE ADDED PROBABLY 3,000 STUDENTS.
WE HAVEN'T ADDED STAFF, AND SO THAT MEANS THEY HAVE TO WEAR MORE HATS.
AS THEY WEAR MORE HATS, THAT MEANS THEIR RESPONSIBILITY, AND THEIR DAYS GET LONGER AND LONGER, AND THEIR SALARIES HAVEN'T INCREASED.
THAT'S SOMETHING TO CONSIDER AS WE GO TO.
I KNOW THAT'S ALWAYS A POINT OF CONTENTION.
BUT THE PEOPLE WHO DO THOSE JOBS HAVE A GREAT SKILL SET.
THEY HAVE ADVANCED DEGREES, AND IF WE DON'T PAY THEM, THEY'RE GOING TO GO OTHER PLACES, AND WE'RE GOING TO LOSE GOOD TALENT.
WE NEED TO KEEP THEM IN MIND AS WE MOVE FORWARD AS WELL.
>> ALSO POINTING OUT, WHEN I WAS A TEACHER HERE IN THE DISTRICT, WE WERE TOP HEAVY.
WE HAD AN AUDIT BY THE COMPTROLLER'S OFFICE.
WE WERE VERY TOP HEAVY, AND THEY SAID, CUT SOME POSITIONS.
NOW, WHEN YOU CAME ALONG, YOU DID EVEN CUT SOME MORE POSITIONS, AT THAT LEVEL.
WE HAVEN'T ADDED MUCH TO THE ADMINISTRATION SIDE OF IT.
THAT'S IMPORTANT TO KNOW, BUT WE'RE GOING TO HEAR IT TIME AND TIME AGAIN IN THE COMMUNITY AS WE ARE OUT THERE, WE WILL HEAR THAT MISINFORMATION, BECAUSE IT'S EASY TO DO THAT AND TRY TO PAY ADMINISTRATION AGAINST STAFF.
WE'RE ALL IN THIS TOGETHER, AND WE NEED EVERY SINGLE PERSON TO DO THE JOB.
IT'S REALLY IMPORTANT TO LOOK AT ALL STAFF AND NOT JUST ONE CLASS OF STAFF, LIKE THE STATE LEGISLATOR HAS MADE US DO, WHICH IS NOT GOOD FOR MORALE.
IT IS NOT GOOD FOR PUBLIC EDUCATION.
CAN YOU GO TO THE NEXT SLIDE, PLEASE? THE WHAT IF IT DOESN'T PASS? WE CANNOT HIGHLIGHT THIS ENOUGH.
WE GET CALLS, WE GET EMAILS CONSTANTLY ABOUT, WELL, WE NEED TO GET A STIPEND INCREASE.
WE NEED MORE STIPEND, WE NEED MORE TEACHERS IN THIS DEPARTMENT, WE NEED MORE STAFF IN THIS DEPARTMENT, WE WANT TO DO ALL THINGS.
WE WANT TO GIVE STIPEND INCREASE, AND WE HAVE GIVEN INCREASES TIME AND TIME AGAIN.
I'M GOING TO POINT OUT RIGHT NOW WHERE WE HAVE GIVEN 7% INCREASES TO STAFF.
WE HAVE ON AVERAGE IN A 4% INCREASE.
THERE HAS BEEN MANY YEARS, NOT ONLY DOES ADMINISTRATION NOT GET AN INCREASE, BUT DOCTOR WRIGHT HAS NOT TAKEN AN INCREASE AS WELL, VERY STRATEGICALLY SAYING, I WANT ZERO.
I JUST WANT TO PUT THAT OUT THERE.
I THINK IT'S REALLY IMPORTANT FOR OUR COMMUNITY TO UNDERSTAND THAT BECAUSE WE'RE CONSTANTLY BOMBARDED WITH THAT SAME FALSE NARRATIVE.
THAT'S WHAT IT IS, A FALSE NARRATIVE.
WHAT IF IT DOESN'T PASS, DOCTOR WRIGHT, WHAT WILL HAPPEN?
>> JUST LIKE WE MENTIONED A WHILE AGO, WE'LL START CREATING A PLAN TO MAKE SIGNIFICANT CUTS, AND OUR GOAL WOULD PROBABLY BE 200 PER YEAR FOR THE NEXT THREE YEARS TO GET THE 45 MILLION THAT WE NEED IN ORDER TO GET TO THAT 65 MILLION IN OUR FUND BALANCE?
>> THIS IS EVERYWHERE, RIGHT? SIGNIFICANT CUTS IN STAFFING.
YOU SAID YOU ALLUDED TO 200 PER YEAR, POSITIONS THAT WE WOULD HAVE TO CUT NOT ONLY THROUGH ATTRITION,
[02:30:03]
BUT ACTUALLY MAKE SOME CUTS THAT SOMEBODY'S MOM, SOMEBODY'S DAD, SOMEBODY'S BROTHER, SOMEBODY'S SISTER, IT WILL BE CUT.IT'S GOING TO BE A LITTLE TOO LITTLE TOO LATE TO COME OUT WHEN THAT'S HAPPENING.
YOUR TIME IS NOW WHEN WE GO OUT FOR THIS ELECTION.
THAT IS YOUR TIME TO MAKE THAT DECISION IF THAT IS IMPORTANT ENOUGH TO VOTE FOR IT.
NO AFTER WHEN WE'RE ACTUALLY HAVING TO MAKE THOSE HARD DECISIONS AND CUTTING THOSE POSITIONS.
BECAUSE AT THAT TIME, OUR HANDS ARE TIED, WE ARE NOT GOING TO BE ABLE TO DO IT.
WE ARE NOT GOING TO BE ABLE TO SUSTAIN OUR DISTRICT.
THE TIME IS OCTOBER 20, STARTING WITH EARLY VOTING AND THAT IS A REALLY IMPORTANT PIECE OF THAT.
NOW, DOCTOR WRIGHT, TALK A LITTLE BIT ABOUT OR EVEN MR. SAVOY, I THINK MR. FLORES HAS MENTIONED THIS ALREADY.
BUT HOW WILL THE PUBLIC BE INFORMED THROUGHOUT THE PROCESS, DOCTOR WRIGHT? WILL YOU BE DOING YOUR INFORMATIONAL TOURS? WE OFTEN HEAR, WE HEAR IT WITH THE BOND ELECTION ALL THE TIME.
I DIDN'T KNOW THERE WAS A BOND ELECTION GOING ON.
FOLKS, WE USE ALL PLATFORMS. WE EVEN USE, I THINK, CARRIER PIGEONS.
IT IS OUT THERE AND DOCTOR WRIGHT, YOU'RE THE BEST CARRIER PIGEON SO TALK TO US A LITTLE BIT ABOUT THE PROCESS FOR GETTING FOLKS INFORMED THROUGHOUT THIS.
>> TIM DID A REALLY GOOD JOB OF HIGHLIGHTING WHAT WE'LL DO WITH THE FLYER AND ALL THE INFORMATIONAL PIECES AND ALL THE INTERVIEWS WE'LL DO WITH THE LOCAL MEDIA OUTLETS.
BUT ALSO, I WILL GO ON TOUR, JUST THE FACTS ONLY AND I WILL SPEAK TO ALL OF OUR CAMPUSES AND DEPARTMENTS ACROSS THE DISTRICT.
I'LL SPEAK TO JUST THE DIFFERENT CLUBS IN THE AREA AND CHAMBERS OF COMMERCE, THAT TYPE OF THING, JUST TO MAKE SURE THAT EVERYBODY'S EDUCATED AND CAN MAKE AN INFORMED DECISION WHEN THEY GO AND VOTE.
>> IN ADDITIONALLY, THERE ARE REQUIRED NOTICE POSTINGS ON COUNTY WEBSITES, OUR WEBSITE.
WE PUT IT IN THE PAPER AND ALL OF THAT STUFF.
WE'LL OBVIOUSLY DO THE REQUIRED LEGAL STUFF.
YOU GET INTO, WHEN PEOPLE THINK OF A CAMPAIGN FOR SOMEBODY FOR OFFICE, RIGHT.
THOSE PEOPLE ARE RAISING MONEY AS CANDIDATES FOR WHATEVER OFFICE IT IS, AND THEY'VE GOT ALL THIS CAMPAIGN MONEY THAT THEY CAN SPEND BECAUSE PEOPLE HAVE DONATED IT FOR A CANDIDATE AND SO YOU GET ALL THESE MAILERS AND STUFF IN YOUR BOX.
WE CAN DO INFORMATIONAL MAILERS AND STUFF LIKE THAT, BUT THAT IS ASTRONOMICALLY EXPENSIVE TO DO AND IT'S LIKE WE DON'T HAVE THE MONEY TO BE LIKE A POLITICAL CAMPAIGN? WE'LL HAVE THE INFORMATION AVAILABLE.
WE'LL DO THE REQUIRED POSTING, AND WE'LL DO AS MUCH AS WE CAN.
BUT AGAIN, GOING BACK TO THE COMMUNITY OWNS THE DISTRICT, AND SO WE RELY IN SITUATIONS LIKE THIS VERY HEAVILY ON THE COMMUNITY.
BOTH GETTING INVOLVED AND AMPLIFYING THE MESSAGE, WHATEVER THAT IS.
THERE WILL BE PEOPLE, LIKE I SAID, FOR AND AGAINST IT, BUT WE NEED PEOPLE TO AT LEAST HELP US AMPLIFY THAT THIS WILL BE ON THE BALLOT AND, OF COURSE, THE NEWS MEDIA WILL GET A LOT OF MEDIA COVERAGE OUT OF IT JUST AS A STANDARD, HEY, THIS IS WHAT'S GOING TO BE ON YOUR BALLOT.
IT IS A NOVEMBER ELECTION, SO WE SHOULD SEE FOLKS COMING OUT, BUT, I HEAR YOU ON THAT BECAUSE WE DO GET A LOT OF I DIDN'T KNOW THERE WAS SOMETHING ON THE ELECTION, ON THE BALLOT.
BUT, IT JUST COMES INTO THAT COST OF.
IT'S ALMOST LIKE PROBABLY TO DO A POSTCARD, I YOU'RE TALKING MAYBE $0.50 A MAILBOX.
THERE ARE 74,000 REGISTERED VOTERS AND THAT'S ON THE CHEAP END IF EMAIL.
>> DEFINITELY, MAYBE WE'LL SEE AN UPTAKE IN THE NOVEMBER ELECTION.
THERE WILL BE MORE PEOPLE OUT IN NOVEMBER AND SO ON.
BUT WE JUST WANT TO MAKE SURE THAT WE GET FACTUAL INFORMATION OUT TO OUR FOLKS.
>> ANYTHING ON OUR WEBSITE, FOR ANYONE THAT MAY BE LISTENING, YOU CAN SHARE THAT.
THERE'S NO COPYRIGHT OR ANYTHING ON IT.
IT BELONGS TO THE PEOPLE, THE TAXPAYERS.
IF YOU WANT TO SHARE MATERIAL, YOU'RE WELCOME TO DO SO.
>> FANTASTIC. THAT'S REALLY IMPORTANT.
DOCTOR WRIGHT, YOU MENTIONED A COUPLE OF COMPARISONS WITH SIMILAR SIZE DISTRICTS AND REGIONAL DISTRICTS THAT HAVE HAVE ALSO GONE OUT FOR ELECTION.
YOU KNOW, THIS MONTH, I HAVE WORKED WITH ABOUT 16 DISTRICTS.
THROUGHOUT TEXAS, I'VE BEEN TRAVELING.
FOURTEEN OUT OF THE 16 ARE EITHER GOING OUT IN NOVEMBER OR HAVE GONE OUT THIS PAST YEAR, BECAUSE WE ARE ON A SIMILAR BOAT WHERE WE DON'T HAVE THE FUNDING TO DO WHAT WE NEED TO DO FOR OUR STUDENTS.
WHEN I WAS TALLYING EVERYTHING, AND I WAS LIKE, YOU'RE GOING OUT, YOU WENT OUT AND SEEING THAT AND HEARING THAT IT'S REALLY SAD.
[02:35:03]
THAT WE ARE NOT GETTING THE PROPER FUNDING FROM OUR OWN STATE, AND THAT PUBLIC EDUCATION IS NOT THE NUMBER ONE PRIORITY IN THE STATE OF TEXAS IS SHAMEFUL AND I AM GLAD THAT WE'RE DOING OUR DUE DILIGENCE UNDER OUR CFO AND DOCTOR WRIGHT.WE'RE DOING OUR DUE DILIGENCE TO LOOK AT ALL OUR OPTIONS, NOT ONLY TO MAKE PAYROLL WITH A TAN, BUT TO GO OUT FOR TRE AND MAKING SURE THAT WE TAKE IT TO THE PEOPLE AND THE PEOPLE PRIORITIZE PUBLIC EDUCATION BECAUSE IF NOT THOSE CUTS WILL HAPPEN, IF NOT, IT WILL LOOK DIFFERENT.
WE HAVE NOT BEEN PUT IN THE SITUATION THIS YEAR WHERE WE HAD TO CUT PROGRAMS LIKE OTHER DISTRICTS.
WE'VE TALKED ABOUT THIS WHERE THEY'VE HAD TO CUT LIBRARIANS.
THEY'VE HAD TO CUT EXTRACURRICULAR ACTIVITIES.
WE ARE 100% HAYSCISD, AND THAT'S SOMETHING THAT DOCTOR WRIGHT INITIATED AND IS VERY PROUD OF.
WE'RE ALL PROUD OF THAT, MAKING SURE THAT OUR STUDENTS ARE CONNECTED TO SOMETHING.
IF WE HAVE TO CUT PROGRAMS AND CUT EXTRACURRICULAR, WHAT DOES THAT DO TO OUR STUDENTS? SO AGAIN, IT ALL COMES DOWN TO WHAT IS RIGHT FOR STUDENTS.
DO YOUR DUE DILIGENCE, GET THE INFORMATION THAT YOU NEED, ASK QUESTIONS, BUT PLEASE MAKE SURE THAT YOU SUPPORT PUBLIC EDUCATION AND THE STUDENTS OF HAYSCISD. THANK YOU.
>> MR. [INAUDIBLE] HARD TO FOLLOW UP THAT PASSION.
NOVEMBER 17 WILL BE OUR NEXT BOARDING POST ELECTION WHERE WE CANVASS THE ELECTION.
I'M A LITTLE CONCERNED, TWO YEARS AGO, WHEN THE LAST HOMESTEAD EXEMPTION WAS PASSED, THERE WAS A DELAY IN GETTING THE BILLS OUT BY OUR TAX ASSESSOR COLLECTOR, AND THEN WE DIDN'T RECEIVE THE TAX REVENUE UNTIL JANUARY OR LATER AND SO SEEING THE CASH FLOW ISSUES THAT WE ARE IN AT THE MOMENT, I JUST WANT TO MAKE SURE THAT THAT'S ON THE RADAR.
THEN IF WE NEED TO DOES IT HELP IF WE CALL US BEFORE THE?
>> NO. BECAUSE I THINK THAT WAS DEPENDENT ON THE $100,000 EXEMPTION THAT WAS ON THE BALLOT, AND THERE'S A $40,000.01 NOW SO I THINK THAT WAS NOT NECESSARILY LOCALLY.
>> IF I'M WRONG, THAT WAS A STATE LEVEL EVERY RANDOM THAT CAUSED ALL OF THE AREAS TO DELAY.
>> WE'RE IN THAT SAME SITUATION AGAIN, THOUGH, BUT BASICALLY, I DON'T WANT A DELAY IN THE BILL GOING OUT OF US COLLECTING CASH FLOW, BASED ON US NOT HAVING A MEET UNTIL THE 17TH.
I JUST WANT TO THROW THAT OUT THERE THAT, YOU IF WE NEED TO CANVASS, DO WHATEVER WE CAN TO MAKE SURE THAT WE DON'T WANT TO DELAY.
>> WE HAVE TO BEFORE WE CANVASS, EVEN THOUGH THE TECHNICALLY 10 DAYS IS THE EARLIEST YOU CAN CANVASS, WE REALLY CAN'T BECAUSE OUR BALLOT BOARDS FOR ALL THREE OF THE DIFFERENT COUNTIES WILL LIKELY NOT HAVE MET YET.
>> TO PROCESS PROVISIONAL BALLOTS OR COUNT TO ANY LATE ABSENTEE DOMESTIC OR ANY OVERSEAS ONES.
THERE'S REALISTICALLY, WHAT IS THAT A? NO, THAT'S A MONDAY? A DAY OR TWO.
I COULD TELL YOU THE EXACT DAY OF THE WEEK IF WE WERE IN MAY, 'CAUSE I'VE DONE 30 OF THOSE ELECTIONS.
NOVEMBER IS RARE FOR ME, BUT YOU USUALLY CAN BACK IT UP THREE OR FOUR, FIVE DAYS.
I DON'T THINK THAT'LL MAKE THE DIFFERENCE ON YOU ON THE PROCESSING OF TAX BILLS.
>> THEY HAVE ASSURED ME THEY WILL GET THEM OUT QUICKLY.
IT WILL BE A MONTH AND A HALF LATER THAN THE NORMAL TIME FRAME.
COULD IT CAUSES AN ISSUE? YES, IT COULD.
BUT THIS WHOLE PROCESS IS A VERY TIGHT TIMELINE AND I BELIEVE THIS IS THE BEST WE CAN DO AT THIS TIME.
>> GOING BACK TO OUR STORY, AS YOU GUYS ARE TALKING ABOUT, OUR HERE AND THINGS.
I FELT LIKE MEL GIBSON AND BRAVE HART, WE'RE JUST SITTING THERE ON THE LINE JUST GOING HOLD.
THE LAST COUPLE OF YEARS, THERE'S BEEN HOLD, BECAUSE WE HAD THIS BUDGET DEFICITS AND WE'RE PASSING THOSE ALONG, AND WE WORKED REALLY HARD TO MAKE CUTS TO GET BACK TO IT.
WE'RE A BALANCED BUDGET THIS YEAR.
FOR US, IT'S A CASH FLOW ISSUE.
WHEN I LOOK AT THE OTHER DISTRICTS RECENTLY THAT HAVE HAD VDA ELECTIONS, ASD, THEY WENT OUT FOR 9.1 BECAUSE THEY HAVE A 0.1 GOLDEN PENNY FOR SOME REASON.
THEY WERE AT A $92 MILLION DEFICIT THAT YEAR.
SE MARCUS IST WAS A 17.2 MILLION LAST YEAR WHEN THEY DID THEIR MINER ISD, 20.8 MILLION.
ROUND ROCK IST, AND 2023 IS 20 MILLION.
FUGEVI, LOCKHART, LOGO VISA, ALL DEFICIT BUDGETS AT THE TIME THEY HELD THEIR VADA ELECTIONS.
WE'RE DOING WELL, I THINK TO GET BACK TO A BUDGET DEFICIT BEFORE WE'RE GOING OUT FOR OUR ELECTION,
[02:40:04]
BECAUSE I FEEL LIKE WE HELD TO THE LAST POSSIBLE MOMENT THAT WE DIDN'T WANT TO HAVE TO DO THIS.WE WERE HOPEFUL THAT WE WOULD GET ASSISTANCE THROUGH THE STATE FUNDING FORMULAS, AND IT DIDN'T COME.
WE'VE HELD, AND NOW IT'S TIME TO PULL THE LEVER THAT WE HAVE TO PULL AND THIS IS JUST WHERE WE'RE AT, THAT'S IT.
I SAY TEAM IS IN THIS GROUP, AND THIS GROUP.
AT THE END OF THE DAY, WE ALL COME FROM DIFFERENT BACKGROUNDS, DIFFERENT PHILOSOPHIES, BUT YOU KNOW WHAT WE ALL CARE ABOUT? EDUCATION OF KIDS.
AT THE END OF THE DAY, THIS IS WHAT I THINK THIS VOTE IS FOR I'M NOT SPEAKING FROM MY FELLOW TEAMMATES ON THIS VOTE, BUT I FEEL LIKE THAT'S WHAT WE'RE DOING AS A BOARD.
WE'RE GOING TO SAY, THAT, HEY, WE'RE GOING TO CONTINUE THE EDUCATION OF KIDS, AND WE WANT TO PROVIDE THE BEST LEVEL OF CARE FOR THEM AND BY DOING THIS, IT'S JUST GOING TO HELP US GET CLOSER TO THAT AND GET OURSELVES BACK INTO A POSITION WHERE IT'S GOING TO BE LIKE A LEGACY FOR FUTURE GENERATIONS, I GUESS IN OUR DISTRICT, TO MAKE SURE THAT WE'RE BALANCED AND WE'RE HEALTHY, AND WE DON'T HAVE TO DO THIS AGAIN.
TEAM, I MOVE HCSD, BOARD OF TRUSTEES ADOPT THE ORDER CALLING FOR A VOTER APPROVAL, TAX RATE, ELECTION AS DISCUSSED AND PRESENTED.
ANY FURTHER DISCUSSION? ALL OF THOSE IN FAVOR, OPPOSED 7-0. MOTION CARRIES 70.
>> TEAM, WE'RE GOING TO MOVE ON TO E8.
THIS IS NOW ON PAGE 56, THIS IS NOW THE AGENDA ITEM WHERE MR. SAVOY, WE AUTHORIZE MR. SAVOY TO GO OUT AND GET READY FOR THIS ELECTION ON OCTOBER.
IT'S WHY THE CADENCE IS GOING THROUGH THE EVENING.
THE SUBJECT HERE IS THE CONSIDERATION OF POSSIBLE APPROVAL TO ENTER TO REQUIRE JOINT ELECTION A AGREEMENTS AND ELECTION SERVICES CONTRACTS THAT ARE NECESSARY TO HOLD A NOVEMBER ELECTION AND AUTHORIZE DISTRICT ADMINISTRATION TO EXECUTE THE DOCUMENTS WITH HAYES, TRAVIS, AND COLDWELL COUNTIES ON BEHALF OF THE BOARD OF TRUSTEES.
SIMILAR TO WHAT WE DO WHEN WE DO A TRUSTEE ELECTION IN MAY, THIS IS NOW JUST AUTHORIZING THE DISTRICT TO HOLD THIS ELECTION IN NOVEMBER.
MR. SAVOY, I ASSUME YOU HAVE ANY, NOVEMBER.
>> REALLY, THERE'S FIVE DOCUMENTS.
SINCE THIS ISN'T A TRUSTEE ELECTION, WE DON'T HAVE TO HAVE THE CITY OF HAYES AS A JOINT ELECTION PARTNER IN CASE I GET THAT QUESTION.
BUT WE DO HAVE ALL THREE OF OUR COUNTIES.
WE HAVE TO DO AN ELECTION SERVICES AGREEMENT, WHICH IS A CONTRACT FOR THEM TO DO THE ELECTION SERVICES.
FOR TRAVIS AND HAYS COUNTY, WE ALSO HAVE TO DO A JOINT ELECTION AGREEMENT BECAUSE THEY HAVE VOTE CENTERS, AND SO TECHNICALLY, WE ARE PARTNERS WITH EVERY OTHER ENTITY IN THAT PARTICULAR COUNTY HAVING AN ELECTION ON ELECTION DAY.
I THINK THAT OUR HAYS COUNTY JOINT ELECTION AGREEMENT IS TECHNICALLY FOR THE WHOLE YEAR, SO WE'RE ALREADY IN THAT FROM THE MAY ELECTION.
THERE'S THERE'S FIVE DOCUMENTS THAT ONCE WE GET THOSE FROM THE COUNTIES, THEY'RE ROUTINE AND STANDARD DOCUMENTS.
>> THANK YOU. I MOVE THAT THE HCST BOARD OF TRUSTEES ENTER THE REQUIRE JOINT ELECTION AGREEMENTS AND ELECTION SERVICES CONTRACTS THAT ARE NECESSARY TO HOLD A NOVEMBER ELECTION AND AUTHORIZE DISTRICT ADMINISTRATION TO EXECUTE THE DOCUMENTS WITH HAYES, TRAVIS AND COLDWELL COUNTIES ON BEHALF OF THE BOARD OF TRUSTEES AS PRESENTED.
SECOND BY MR. FLORES. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR. ANY OPPOSE? MOTION CARRIES 7-0.
WE HAVE AN ELECTION ALRIGHT, TEAM.
WE'RE MOVING ON TO OUR LAST AGENDA ITEM TONIGHT.
[E.9. Consideration and possible adoption of a Resolution for Texas Education Agency Recapture]
IT'S GOING TO BE E9 ON PAGE 58.THIS IS THE CONSIDERATION OF POSSIBLE APPROVAL OF AN AGREEMENT FOR THE PURCHASE OF ATTENDANCE CREDIT, NETTING CHAPTER 48 OPTION THREE AGREEMENT, AND TO DELEGATE CONTRACTUAL AUTHORITY TO THE SUPERINTENDENT.
MISS OMER, WILL YOU BREAK THAT DOWN INTO SOMETHING THAT WE CAN ALL UNDERSTAND.
>> THIS IS THE AGREEMENT THAT WE HAVE TO SIGN AND PROVIDE TO THE STATE FOR IN THE EVENT THAT WE HAVE TO PAY RECAPTURE.
EVEN IF WE WEREN'T HAVING THE TRE, WE STILL WOULD HAVE TO DO THAT BECAUSE WE'RE ON THEIR RADAR, HAVE BEEN FOR A COUPLE OF YEARS.
IN THE EVENT THAT WE HAVE TO PAY, WE HAVE TO MAKE ONE OF THE CHOICES.
THIS IS THE SIMPLEST CHOICE IS JUST TO NET IT WITH OTHER FUNDING THAT WE'RE GOING TO GET SO THAT WE DON'T ACTUALLY SEND THEM A CHECK OR A WIRE.
THEY WILL JUST REDUCE THE AMOUNT THAT THEY'RE SENDING US.
>> THANK YOU, TEAM, I'LL LOOK AFTER ANY QUESTIONS ON THIS ONE.
LOOK RIGHT AND I DID THAT ONLY BECAUSE IT'S A REALLY LONG MOTION, SO I DIDN'T WANT TO HAVE TO GO BACK AND DO ANY AMENDMENTS.
HANG ON, SO I HAVE A QUESTION FOR THE TEAM.
THERE'S TWO SECTIONS TO THIS IN THE SUGGESTED MOTION, BUT THE BOTTOM PART IS WHERE I START WITH THE I MOVE THAT THE
[02:45:03]
HAYES HCSC BOARD OR NEED TO READ THE TOP PART 2 ON THAT MOTION.HERE WE GO. FOR THE 2025 2020 SCHOOL YEAR, WE DELEGATE CONTRACTUAL AUTHORITY TO OBLIGATE THE SCHOOL DISTRICT UNDER TEXAS EDUCATION CODE TEC, SECTION 11.511 SUBCHAPTER C4, LOOKING FOR MY LEGAL HELP HERE.
THANK YOU, TO THE SUPERINTENDENT SOLELY FOR THE PURPOSE OF OBLIGATING THE DISTRICT UNDER TEC SECTION 40.8257 AND TEC CHAPTER 49 SUBCHAPTERS A AND D, AND THE RULES ADOPTED BY THE COMMISSIONER OF EDUCATION AS AUTHORIZED UNDER TEC 49.006.
THIS INCLUDED APPROVAL OF THE AGREEMENT FOR THE PURCHASE OF ATTENDANCE CREDIT OR THE AGREEMENT FOR THE PURCHASE OF ATTENDANCE CREDIT NETTING CHAPTER 48 FUNDING.
I MOVE THAT THE HCSC BOARD OF TRUSTEES APPROVE AN AGREEMENT TO PURCHASE THE ATTENDANCE CREDIT, NETTING CHAPTER 48 FUNDING, OPTION THREE AGREEMENT, AND TO DELEGATE CONTRACTUAL AUTHORITY TO THE SUPERINTENDENT AS DISCUSSED AND PRESENTED.
ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR.
AYE, ANY OPPOSED? MOTION CARRIES 7-0.
AT THIS POINT, I'M GOING TO ASK ANY REQUESTS FOR INFORMATION FOR THE BOARD OF TRUSTEES THAT WE CAN, ANYBODY HAVE ANY QUESTIONS.
LOOK TO MY RIGHT. NO, TO MY LEFT.
IF READY TO NO FURTHER OBJECTIONS.
WE'RE GOING TO ADJOURN TONIGHT AND THE TIME IS 8:28 P.M.
* This transcript was compiled from uncorrected Closed Captioning.