Proposed Budget Presentation

August 06, 2019Public Hearing

2019-2020

FINANCIAL HIGHLIGHTS 2017 - 2018

FINANCIAL HIGHLIGHTS2018 - 2019

I. Unassigned General Fund Balance equals 28% of the Budget @ 8/31/18

II. Budget & CAFR Awards from ASBO (Over 25 Years) - CAFR Awards from GFOA (20 Years)

III. Financial Integrity Rating System of Texas (FIRST) – Superior Rating for year ended August 31, 2018

IV. Clean Audit from Weaver

V. Transparency Stars – Traditional Finances , Debt Obligations, and Contracts & Procurement.

VI. Lowest Tax Rate ($1.28) compared to our Area Peer Group

VII. Education Resource Group ranked CISD as the 2nd highest rated district out of the 200 largest districts in the state, Based on Academic and Financial Performance.

VIII. 5 - Star rating by the 2018 Texas Smart Schools. One of only 2 ISD’s to receive a 5-Star rating all 10 years.

FAST

ConroeCypress-Fairbanks

Five Star Recipients

Ten Consecutive Years

Financial Allocation Study of Texas

TXSmartSchools

2017-2018 ERG Ranking

1-1 DistrictsHurst-Euless-BedfordConroeBirdvilleCy-FairLancasterSocorroLaredoRichardson

Comparison To State Averages By Function

2018-2019 2018-2019

General Fund Expenditures By Function Conroe ISD Budget % State Average Budget %

Instruction (11,95) 63.75% 57.69%

Instructional-Related Services (12,13) 2.11% 2.86%

Instructional Leadership (21) 0.95% 1.54%

School Leadership (23) 6.27% 6.49%

Student Support Services (31,32,33) 4.52% 4.91%

Student Transportation (34) 5.19% 3.42%

Food Service (35) 0.00% 0.83%

Co-Curricular/Extracurricular Activities (36) 2.43% 3.00%

Central Administration (41,92) 1.79% 4.86%

Plant Maintenance & Operations (51) 10.02% 11.03%

Security & Monitoring Services (52) 1.46% 1.17%

Data Processing Services (53) 1.51% 2.20%

Total 100.00% 100.00%

Budget Expenditures Per Student $7,965 $8,881

Source: 2018-2019 Budgeted Financial Data (http://www.tea.state.tx.us)

Legislative Update

86th Legislative Session THE TEXAS PLAN HB 3

$5.0 Billion in Property Tax Relief

$4.5 Billion for Education Reform

$2.0 Billion for Teacher Pay

$3.5 Billion for Recapture Reduction

Legislative Update

HB3 Highlights

• Increases the basic allotment from $5,140 to $6,160 • Requires districts to provide full-day pre-K to eligible 4-year-old students • Provides funding for increased teacher compensation• Creates an index for a compensatory education funding based on census block groups• Extends the Career and Technical Education (CTE) program to 7th grade• Replaces the transportation linear density calculation with a per-mile allotment ($1.00 per mile)• Moves to the use of current-year property values for determining FSP entitlement. Cost of Education Index is repealed.• Increases golden pennies from 6 pennies to 8 pennies. Remaining pennies are copper.• Provides uniform tax relief for the biennium, $0.07 compression on Tier 1 M & O tax rate ($0.97)• Prohibits school districts from increasing M&O rates to create a surplus to pay down debt.

New Allotments Repealed Allotments

• Dual Language Allotment • Dyslexia Allotment• Dropout Recovery Allotment• Fast-Growth District Allotment• Early Education Allotment

• Safety & Security Allotment• College, Career & Military

Readiness Allotment

• Gifted & Talented Allotment• High School Allotment• Staff Allotment

General Fund Balance

1. $14 M used to build Bonnie Wilkinson Elementary2. $16 M used for Construction projects and Safety & Technology needs3. $12 M used to cover life cycle and safety needs & the health fund 4. $24.5M used for ORHS 9th grade, life cycle & the health fund5. $7.3 M used for TWHS girls locker room addition & the health fund 6. $35.5 M used for construction projects & the health fund7. $8.2 M used for Irons Junior High classroom addition & football stadium scoreboards8. $10 M used for establishing the capital maintenance fund, $8.5 for land purchases, $1.5 M for buses

$30,000,000

$45,000,000

$60,000,000

$75,000,000

$90,000,000

$105,000,000

$120,000,000

$135,000,000

$150,000,000

$165,000,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Proj

General Fund Balance

1 2

34

5

6 78

2019-2020 Budget Objectives

1. Meet the needs for the 2019-2020 school year.(Opening Suchma Elementary, 11th grade at GOHS)

2. Provide a competitive compensation plan.

3. High priority on Safety and Security at our campuses.(Hiring Additional Prevention Control Officers at the High Schools)

4. Protect the District’s operational infrastructure by establishing a district wide maintenance fund.

Last Nine Fiscal Years, Current Year, & One Year Projection

AverageEnrollment

GrowthPer Year

1,472

Average ADA

Growth Per Year

1,4222.8%

Attendance Data

* State revenue estimates and campus expenditure budget allocations rely on enrollment data

Year Total

Ended Actual Yearly ADA Total Yearly Percent Percent of

31-Aug Enrollment Change Amount Change (Decrease) Enrollment

2010 49,629 1,633 46,275 1,360 3.0% 93.24%

2011 51,170 1,541 47,888 1,613 3.5% 93.59%

2012 52,664 1,494 49,498 1,610 3.4% 93.99%

2013 53,934 1,270 50,465 967 2.0% 93.57%

2014 55,009 1,075 51,830 1,365 2.7% 94.22%

2015 56,363 1,354 53,165 1,335 2.6% 94.33%

2016 58,239 1,876 55,147 1,982 3.7% 94.69%

2017 59,764 1,525 56,653 1,506 2.7% 94.79%

2018 61,580 1,816 58,001 1,348 2.4% 94.19%

2019 62,837 1,257 59,352 1,351 2.3% 94.45%

*2020 64,187 1,350 60,552 1,200 2.0% 94.34%

1,472 1,422 2.8% 94.13%

Enrollment Average Daily Attendance

Ten Year Average

Enrollment Trend

45,000

50,000

55,000

60,000

65,000

10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 est

Last 10 yr Average Increase

6.7%

Certified Property Values

Tax Certified

Year Value $ %

2019 38,080,786,406$ 2,343,243,090$ 6.56%

2018 35,737,543,316$ 1,937,650,491$ 5.73%

2017 33,799,892,825$ 1,376,594,502$ 4.25%

2016 32,423,298,323$ 2,582,889,266$ 8.66%

2015 29,840,409,057$ 2,911,859,001$ 10.81%

2014 26,928,550,056$ 3,019,678,901$ 12.63%

2013 23,908,871,155$ 1,831,798,239$ 8.30%

2012 22,077,072,916$ 1,086,730,457$ 5.18%

2011 20,990,342,459$ 717,354,839$ 3.54%

2010 20,272,987,620$ 558,807,212$ 2.83%

Change in Certified Value

2019-2020 Proposed Tax Rate

2017-2018 Adopted

Rate

Disaster Pennies

2018-2019 Adopted

Rate

RevertDisasterPennies

(Old Law)

2019-2020 Reverted

Rate (Old Law)

HB3Impact

2019-2020 Proposed

Rate

Maintenance & Operations

$1.04 $0.02 $1.06 ($0.02) $1.04 ($0.07) $0.970

Debt Service 0.24 (0.02) 0.22 0.02 0.24 0.025 0.265

Total $1.28-

$1.28 - $1.28 ($0.045) $1.235

$1.5

684

$1.4

884

$1.4

716

$1.4

484

$1.4

432

$1.4

351

$1.4

300

$1.4

183

$1.3

853

$1.3

750

$1.3

700

$1.3

700

$1.3

600

$1.3

471

$1.3

210

$1.3

095

$1.3

075

$1.2

900

$1.2

700

$1.2

700

$1.2

442

$1.2

360

$1.2

350

$1.1

367

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

$1.60

Proposed 2019-2020Greater Houston Area Tax Rate Comparison

-TBD-

2019 – 2020 Combined Tax

Rate ComparisonWith Area

School Districts

Proposed 2019-2020Tax Rate Comparison

$1.10

$1.15

$1.20

$1.25

$1.30

$1.35

$1.40

$1.45

Katy Spring Humble Cy-Fair Klein Fort Bend Conroe

District Total Rate General Debt Service

Katy 1.4432$ 1.0532$ 0.3900$

Spring 1.4300$ 0.9700$ 0.4600$

Humble 1.4183$ 1.0683$ 0.3500$

Cy-Fair 1.3700$ 0.9700$ 0.4000$

Klein 1.3600$ 0.9700$ 0.3900$

Fort Bend 1.2700$ 0.9900$ 0.2800$

Conroe 1.2350$ 0.9700$ 0.2650$

Fiscal Year 2019-2020

Tax Rate History

$1.040 $1.040 $1.040 $1.040 $1.060 $0.970

$0.240 $0.240 $0.240 $0.240 $0.220 $0.265

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

$1.60

$1.70

$1.80

2014-15 2015-16 2016-17 2017-18 2018-19 Hurricane Harvey 2019-20 Proposed

Maintenance & Operations Debt Service

$1.4770 $1.4710 $1.4750 $1.4833 $1.4561 $1.3819

Avg Peer Tax Rate

2019-2020 Funding Estimate

Estimate Certified

Tax Revenue: 5.5% AV Growth 6.56% AV Growth

Tax Revenue Decrease & $.09 tax rate Decrease HB 3 (7.76)$ M (4.10)$ M

Tax Revenue Increase (Tax Rate buy down) $.025 10.00 M 10.00 M

Tax Revenue Increase 2.24$ M 5.90$ M

State Revenue (1,350 Student Growth & HB 3) 45.11 M 41.45 M

Investment Income 1.00 M 1.00 M

TRS In-Kind Funds 5.00 M 5.00 M

Total Estimated Available Funding 53.35$ M 53.35$ M

2019-2020 Salary Increase

Pay GroupGeneral Pay

IncreaseAdjustments

Estimated Total

Increase

Teachers, Librarians, Nurses , and Counselors, 3.5% $ 8,063,029 $ 1,509,231 $ 9,572,260

AE (1-3) 3.5%, AE (4-10) 3.0% 1,645,289 102,979 1,748,268

Administrative Business 3.0% 233,832 32,120 265,952

Administrative Support 3.5% 459,696 58,624 518,320

Instructional Support 3.5% 427,219 26,291 453,510

Auxiliary 3.5% 1,212,702 145,744 1,358,446

Police 3.5% 129,925 - 129,925

Total $ 12,171,692 $ 1,874,989 $ 14,046,681

Approved 2019-2020

Teacher Hiring Schedule

Conroe ISDApproved 2019-20 Teacher Hiring Schedule

Teachers, Librarians, and Nurses (RN)

$55,500 starting, 3.5% GPI2018‐2019

Years of

Exp

2018‐2019

New Hire

Salary

3.5%

General

Pay Inc Additional

+ Adjustment =

2019‐2020

Years of

Exp

2019‐2020

Proposed New

Hire Salary

0 → $55,500

0 → $53,700 + $2,000 + = 1 $55,700

1 $53,950 + $2,000 + = 2 $55,950

2 $54,150 + $2,000 + = 3 $56,150

3 $54,350 + $2,000 + = 4 $56,350

4 $54,550 + $2,000 + = 5 $56,550

5 $54,990 + $2,000 + $500 = 6 $57,490

6 $55,370 + $2,000 + $500 = 7 $57,870

7 $55,745 + $2,000 + $500 = 8 $58,245

8 $55,970 + $2,000 + $500 = 9 $58,470

9 $56,270 + $2,000 + $500 = 10 $58,770

10 $56,570 + $2,000 + $500 = 11 $59,070

11 $56,970 + $2,000 + $500 = 12 $59,470

12 $57,470 + $2,000 + $500 = 13 $59,970

13 $57,970 + $2,000 + $500 = 14 $60,470

14 $58,470 + $2,000 + $500 = 15 $60,970

15 $58,970 + $2,000 + $500 = 16 $61,470

16 $59,470 + $2,000 + $500 = 17 $61,970

17 $59,970 + $2,000 + $500 = 18 $62,470

18 $60,470 + $2,000 + $500 = 19 $62,970

19 $60,970 + $2,000 + $500 = 20 $63,470

20 $61,470 + $2,000 + $500 = 21 $63,970

21 $61,970 + $2,000 + $500 = 22 $64,470

22 $62,570 + $2,000 + $500 = 23 $65,070

23 $63,070 + $2,000 + $500 = 24 $65,570

24 $63,570 + $2,000 + $500 = 25+ $66,070

25+ $64,070

Pay Increase Comparison

DistrictTeachers 1-5 Years

ExperienceTeachers 6+ Years

ExperienceAll Other

EmployeesRetention Stipend

Fort Bend ISD $3,000 $3,500 5.00%

Humble ISD $2,600 $3,200 4.00% Y

Willis ISD $2,580 $2,830 3.00%

Aldine ISD 7.00% 8.00% 4.50% Y

Klein ISD 5.25% 5.50% 4.00% Y

New Caney ISD 5.00% 5.50% 4.00% Y

Spring ISD 4.30% 5.50% 2.00%

Katy ISD 4.00% 4.00% 4.00% Y

Magnolia ISD 4.00% 4.50% 4.00% Y

Conroe ISD 3.50% 3.5% (+ $500) 3.00% TBD

Cy Fair ISD 3.00% 3.50% 3.00% Y

Tomball ISD 3.00% 3.50% 3.00%

Montgomery ISD 2.00% 2.25% 2.00%

Personnel - Growth

CAMPUS POSITIONS Elementary Intermediate Junior High High School Grand Total Total Cost

Teachers 36.00 14.00 14.00 33.00 97.00 6,305,000$

Contingency Teaching Positions 10.00 0.00 0.00 0.00 10.00 650,000

Other Professionals 3.00 0.00 1.00 5.00 9.00 620,000

Para-Professionals 0.00 8.00 2.00 17.00 27.00 546,000

Administrators 3.00 4.00 0.00 3.00 10.00 865,000

Total 52.00 26.00 17.00 58.00 153.00 8,986,000$

SUPPORT POSITIONS Operations Administration Grand Total Total Cost

Professional 0.00 13.40 13.40 915,000$

Para-Professional 2.00 1.00 3.00 90,000

Auxiliary 40.00 0.00 40.00 989,500

Total 42.00 14.40 56.40 1,994,500$

Total FTE Change 209.40

Total Payroll Additions $10,980,500

Projected Expenditure Budget Increase for 2019-2020

Additional Personnel for Growth 10.98$ M

Salary Increase (3.0%-3.5%) 14.05 M

Potential Employee Retention Stipend 5.00 M

Pre-K, CTE, Bilingual, Dyslexia, Comp Ed, School Safety 7.29 M

Other Expenses (Utilities, Insurance, Fuel, & Supplies) 1.81 M

TRS In-Kind Funds 5.00 M

Total Operating Expenditures 44.13$ M

Transfer (Capital Maintenance Fund) 10.00$ M

Total Expenditures 54.13$ M

2019-2020 Projected Budget

Revenue

18-19 Revenue Budget 502.27$ M

19-20 Projected State Revenue: 1,350 Student Growth, HB 3 41.45 M

19-20 Projected Local Revenue Increase (6.56% AV Growth) 5.90 M

19-20 Interest Revenue 1.00 M

19-20 TRS In-Kind 5.00 M

Projected 19-20 Revenue Budget 555.62$ M

Expenditure

18-19 Expenditure Budget 495.45$ M

Salary Increase 19.05 M

Additional Personnel 10.98 M

Pre-K,CTE, Bilingual Dyslexia, Comp Ed, School Safety 7.29 M

Other Expenses 1.81 M

TRS In-Kind 5.00 M

Capital Maintenance Fund 10.00 M

Projected 19-20 Expenditure Budget 549.58$ M

Estimated Budget Surplus 6.04$ M

Proposal for Budget Surplus

• Save the Surplus in the General Fund Balance to support the 2020-2021 budget. (opening Stockton Jr. High)

• Utilize the surplus to support capital maintenance fund, reduce bond debt requirements, and cover any unforeseen expenditures.

2019-2020Proposed Budget Summary

2019-2020 Proposed Budget$549,580,294

Payroll,$481.5 M

87.6%Contracted Services

$27.4 M5.0%

Supplies & Materials$23.1 M

4.2%

Equipment & Other $7.6 M 1.4%

Capital Maintenance Fund$10 M1.8%

Payroll

Contracted Services

Supplies & Materials

Equipment & Other

Capital Maintenance Fund

Fund Balance Analysis

Objective: Maintain an Unassigned Fund Balance of 25% of the Annual Budget (approx. 3 mos. of expenses)

Estimated Unassigned Fund Balance @ 8-31-19 = $ 134.1 M 24.4% of budget($3.2 M under our 25% Target) ($24.2 M over our 20% Target)

2019-2020 Preliminary Budget $ 549.6 M

20% of Budget $ 109.9 M

25% of Budget $ 137.4 M

Pro-Forma 2020-2021 Budget

Beginning Revenue 555.62$ M

Estimated Revenue Change

Local Revenue Limited 2.5% AV growth 13.00$

State Funding 1,350 growth (3.60)

Total Revenue Increase 9.40

Estimated Total Revenue 565.02$ M

Beginning Expenditures 549.58$ M

Estimated Expenditure Increase

Salary Increase 2.5% Across the Board 10.50$

Additional Personnel for Growth 1350 new students 10.00

Other Expenses (Utilities, Fuel, Insurance Supplies) 1.50

Total Estimated Expenditure Increase 22.00

Estimated Total Expenditures 571.58$ M

Potential deficit (6.56)$ M

What’s Next

• Board Meeting, Public Hearings and Budget Approval

- August 20, 2019

Additional Information

Top Ten 2017-2018Expenditures

2017-2018

Total Y-T-D Percentage

Account Expenditures of Total

1 Payroll (Salaries & Benefits) 425,720,089$ 88.91%

2 Utilities 13,071,237 2.73%

3 General Supplies 7,293,806 1.52%

4 Tax Appraisal and Collections 3,914,835 0.82%

5 Building and Grounds Repairs 3,072,973 0.64%

6 Computer and AV Supplies 2,557,195 0.53%

7 Travel - Student Only 2,355,633 0.49%

8 Building and Grounds Supplies 2,223,000 0.46%

9 Misc Contracted Services 2,031,890 0.42%

10 Fuel 1,944,273 0.41%

Top Ten Total Actual Expenditures 464,184,931 96.95%

Total of All Expenditures 478,799,674 100.00%

One Year Lag

Assumes no change in enrollment or AV for the year 2017-2018

Budget Assessed Local Tax State Total

Year Value Revenue Revenue Revenue

2015 – 2016 $ 29.8 B $ 298.6 M

2016 – 2017 $ 32.4 B $ 325.5 M $ 127.8 M $ 453.3 M

2017 – 2018 $ 32.4 B $ 325.5 M $ 100.9 M $ 426.4 M

State Benefit from 2016 Inc in Local AV $ 26.9 M

NOTE: Amount of State funding is computed using prior year AV.

One Cent Tax Increase on a $300,000 Home

Assessed Value $300,000

Homestead Exemption (25,000)

Taxable Value $275,000

Per $100 value 2,750$

One Cent 0.01

Total Tax Liability 27.50$

Average Market Value of CISD Residences 2019 $303,826

Reference Documents

CISD Finance Manual

http://www.conroeisd.net/department/financial-services-internal-employees-only/

2017-2018 Detailed Budget by Organization and Function

https://www.conroeisd.net/wp-content/uploads/2018/03/Detailed-Budget-2017-2018-by-Org-and-Func-General-Fund.xlsx

2018-2019 Official Budget Book

http://www.conroeisd.net/wp-content/uploads/2018/11/Conroe-ISD-Budget-Book-2018-2019-1.pdf

2017-2018 Comprehensive Annual Financial Report(CAFR)

http://www.conroeisd.net/wp-content/uploads/2019/01/CAFR-17-18-Website.pdf