2008-2009 Tax Rate Adoption North East ISD August 11, 2008.

2008-20092008-2009Tax Rate AdoptionTax Rate Adoption

North East ISDNorth East ISD

August 11, 2008August 11, 2008

2

2008-2009 Certified Tax Roll2008-2009 Certified Tax Roll $2.52 Billion increase in taxable value $2.52 Billion increase in taxable value

(10.1%)(10.1%)2007: $25.06B taxable value2007: $25.06B taxable value2008: $27.58B taxable value2008: $27.58B taxable value

Approximately $950M in new growthApproximately $950M in new growth Approximately $1.57B in increased Approximately $1.57B in increased

values on existing properties (6.3%)values on existing properties (6.3%)

Source: NEISD Finance

3

Assessed Property ValueAssessed Property ValueTax Years 1988-2008Tax Years 1988-2008**

$8

$12

$16

$20

$24

$28

Tax Year

Val

ue (

in b

illio

ns)

Source: NEISD Finance, Kavoussi & Associates * Preliminary Certified for 2008

4

Residential Property Tax IncreasesResidential Property Tax Increases

Average NEISD Home Value: $154,320NEISD Tax Rate: $1.4029Property Taxes Due to NEISD: $2,165

Average NEISD Home Value: $163,622NEISD Tax Rate: $1.4029 (proposed)Property Taxes Due to NEISD: $2,295

2007-2008

2008-2009

Average home value increased 6% -- Average

property tax will increase $130

Tax rate is $1.4029 per $100 of appraised home value.

$1.04 is used for M&O (General Fund); $.3629 is only to pay

debt.Source: NEISD Finance; Bexar County Appraisal District

5

The New ABCs of Property TaxesThe New ABCs of Property Taxes

Taxpayer writes property tax check for $130 more than they paid last year…

$34

…$34 comes to NEISD but can only be used to pay off bonds…

$96

…$96 goes to the State.

For every $1 in M&O property tax paid due to higher home values, the State takes away $1 in

aid to the District.Source: NEISD Finance

6

Target RevenueTarget Revenue Combined local property tax revenue & Combined local property tax revenue &

state aid revenue is “locked in” to a state aid revenue is “locked in” to a specific amount per Weighted Average specific amount per Weighted Average Daily Attendance (WADA)Daily Attendance (WADA)

The target is both a floor & a ceilingThe target is both a floor & a ceiling If local property values decline (& property If local property values decline (& property

tax revenue declines accordingly), state aid tax revenue declines accordingly), state aid increases to ensure $5,349 total per WADAincreases to ensure $5,349 total per WADA

If local property values increase (& property If local property values increase (& property tax revenue rises accordingly), state aid tax revenue rises accordingly), state aid decreases to ensure $5,349 total per WADAdecreases to ensure $5,349 total per WADA


7

Target RevenueTarget Revenue No additional funding available for No additional funding available for

inflationary costs; examples:inflationary costs; examples: Salary increases to keep pace with cost of Salary increases to keep pace with cost of

livingliving Fuel & UtilitiesFuel & Utilities

Additional funding only possible if:Additional funding only possible if: WADA increases due to enrollment growthWADA increases due to enrollment growth WADA increases due to an improvement in WADA increases due to an improvement in

the attendance rate the attendance rate Electorate votes to raise M&O taxes above Electorate votes to raise M&O taxes above

$1.04$1.04Source: NEISD Finance

8Source: NEISD Finance

General Fund State Local General Fund State Local FundingFunding

15%

25%

35%

45%

55%

65%

75%

85%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

State Local & Other

Reduction to tax rate/new “hold-harmless” rules

9

2008-20092008-2009General Fund Adopted General Fund Adopted

BudgetBudget

10

2008-2009 BudgetGeneral Fund Revenue


2007-20082007-2008

ProjectedProjected% of % of TotalTotal

2008-20092008-2009

BudgetBudget% of % of TotalTotal

RevenueRevenue

LocalLocal$ $

270,571270,571 58.9%58.9%$ $

293,237293,237 62.5%62.5%

StateState 187,668187,668 40.8%40.8% 174,227174,227 37.2%37.2%

FederalFederal 1,1841,184 0.3%0.3% 1,2011,201 0.3%0.3%

Other SourcesOther Sources 171171 <0.1%<0.1% 174174 <0.1%<0.1%

Total RevenueTotal Revenue$ $

459,594459,594$ $

468,839468,839

(in 000s)(in 000s)

$9,245 increase, $9,245 increase, 2.0%2.0%

11

2008-2009 BudgetGeneral Fund Expenditures


2007-20082007-2008

ProjectedProjected% of % of TotalTotal

2008-20092008-2009

BudgetBudget% of % of TotalTotal

ExpendituresExpenditures

Salaries/BenefitsSalaries/Benefits $ 398,719$ 398,719 83.5%83.5% $ 415,891$ 415,891 86.0%86.0%

Contract Contract ServicesServices 35,01635,016 7.3%7.3% 40,12940,129 8.3%8.3%

SuppliesSupplies 17,54717,547 3.7%3.7% 19,17319,173 4.0%4.0%

Other OperatingOther Operating 4,4374,437 0.9%0.9% 7,1607,160 1.5%1.5%

Capital OutlayCapital Outlay 13,29413,294 2.8%2.8% 1,3531,353 0.2%0.2%

Other UsesOther Uses 8,6248,624 1.8%1.8% 9090 <0.0%<0.0%

Total ExpendituresTotal Expenditures $ 477,637$ 477,637 $ 483,796$ 483,796

(in 000s)(in 000s)

$6,159 increase, 1.3%$6,159 increase, 1.3%

12

2008-2009 Budget2008-2009 Budget General Fund General Fund SummarySummary

2007-2008 2007-2008 ProjectedProjected

2008-2009 2008-2009 BudgetBudget

Total RevenueTotal Revenue $ 459,594$ 459,594 $ 468,839$ 468,839

Total ExpendituresTotal Expenditures 477,637477,637 483,796483,796

Net Increase/(Decrease) Net Increase/(Decrease) to Fund Balanceto Fund Balance ($ 18,043)($ 18,043) ($ 14,957)($ 14,957)

Beginning Fund BalanceBeginning Fund Balance 78,93978,939 60,89660,896

Ending Fund BalanceEnding Fund Balance $ 60,896$ 60,896 $ 45,939$ 45,939

Months of Expenditures in Fund Balance 1.5 1.1


13

Fund BalanceFund Balance Fund Balance = Fund Balance = CashCash

Fund Balance = Fund Balance = SavingsSavings

Fund Balance = Fund Balance = Net difference Net difference between total assets and total between total assets and total liabilities at a given point in timeliabilities at a given point in time


14

2007-2008 Cash Flows2007-2008 Cash Flows

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

JUL

Y

AU

G

SE

PT

OC

T

NO

V

DE

C

JAN

FE

B

MA

R

AP

R

MA

Y

JUN

E

Inflow Outflow

Cash

Am

ou

nt

(in

/ou

t) in

00

0s


15

2008-2009 C2008-2009 Cash Positionash Position


$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

Jul-0

8

Aug

-08

Sep

-08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr

-09

May

-09

Jun-

09

Wee

kly

Cas

h B

alan

ce ($

000s

)

16

2008-20092008-2009Debt Service FundDebt Service FundAdopted BudgetAdopted Budget

17

2008-2009 Budget2008-2009 BudgetDebt Service FundDebt Service Fund

2007-2008 2007-2008 ForecastForecast

2008-2009 2008-2009 BudgetBudget

Total RevenueTotal Revenue $ 96,639$ 96,639 $ 97,952$ 97,952

Total ExpendituresTotal Expenditures 82,24582,245 81,65581,655

Net Increase/(Decrease) Net Increase/(Decrease) to Fund Balanceto Fund Balance $ 14,394$ 14,394 $ 16,297$ 16,297

Beginning Fund BalanceBeginning Fund Balance 35,90235,902 50,29650,296

Ending Fund BalanceEnding Fund Balance $ 50,296 $ 50,296 $ 66,593$ 66,593


In ($000s)

18

Debt Service Fund BalanceDebt Service Fund BalanceBy Month ($000s)By Month ($000s)

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000J

un

-06

Se

p-0

6

De

c-0

6

Ma

r-0

7

Ju

n-0

7

Se

p-0

7

De

c-0

7

Ma

r-0

8

Ju

n-0

8

Se

p-0

8

De

c-0

8

Ma

r-0

9

Ju

n-0

9

Source: NEISD Finance BUDGETED

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2008-20092008-2009Proposed Tax RatesProposed Tax Rates

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Tax Rate2007-08 General (M&O) $1.04002008-09 General (M&O) $1.0400*

Change in Tax Rate $0.0000

2007-08 Debt Service (I&S) $0.36292008-09 Debt Service (I&S) $0.3629*


2007-08 Total Tax Rate $1.40292008-09 Total Tax Rate $1.4029*


Proposed 2008-2009Proposed 2008-2009Tax RatesTax Rates

Source: NEISD Finance *Recommended

21

M&O Tax Rate M&O Tax Rate HistoryHistory

$0.50

$0.70

$0.90

$1.10

$1.30

$1.50

1987 1990 1993 1996 1999 2002 2005 2008

08-09 Proposed Rate = $1.04


Property Value Declines

State Proration

■ M&O Tax Rate

22

$0.03

$0.08

$0.13

$0.18

$0.23

$0.28

$0.33

$0.38

Tax Year

Historical Projected

I&S Tax Rate HistoryI&S Tax Rate History

Source: NEISD Finance & ME Allison

Questions?Questions?

2008-2009 Tax Rate Adoption North East ISD August 11, 2008.

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