Good evening. The Board will now convene an open meeting. Today is Monday, July 18, 2016, and the time is 636 p.m.
Katy ISD · Board Work Study Agenda
Katy ISD Board Work Study, July 18, 2016
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The Board met earlier this evening in closed meeting. Any action arising from discussions in a closed meeting must be taken in a subsequent open meeting.
Mr. Gannell, will you verify that we are in compliance with the provisions of the Texas Open Meetings Act regarding the notice for this meeting?
Madam President, we are in compliance.
our first action is 3.1 consider board approval of a settlement and cause number 414 CVO 2441
USO our site PRP versus a and M contractors at out
I move that the Board of Trustees approve the settlement in cause number 414-CV-02441,
USOR Site PRP Group versus A&M Contract.
I have a motion by Mr. Moholsky, a second by Mrs. Vann, that the Board of Trustees approves
the settlement in cause number 4, colon 14, dash CV, dash 02441, USOR, site PRP group,
versus A&M Contractors.
Any discussion?
Hearing none, we'll proceed to vote.
All in favor, raise your right hand and say aye.
Aye.
Aye.
The motion passes 7-0.
3.2, personnel.
Madam President.
Mr. DeBrell.
I move that the Board of Trustees approves the personnel report as recommended by our Chief Operations Officer, Mr. Gunnell.
I have a motion by Mr. DeBrell, a second by Mrs. Doyle.
The Board of Trustees approves the personnel report as recommended by Mr. Gunnell in closed meeting.
Any discussion?
We'll vote.
All in favor, say aye.
Aye.
Motion passes 7-0.
Do we have any scouts here this evening?
me don't see any scouts okay
we don't have any scouts this evening but I do see someone sitting in the
audience who's gonna be here very soon mr. dr. hint it's good to see you I'm
to check us out okay good to have you here okay at this time we'll move to the
report section of our evening and we're going to begin with mr. Lance no man
2016 health care plan update good evening mr. no man glad to see you good
Good evening, President Fox, Mr. Gannell, distinguished Board of Trustees.
Here this evening to bring you up to date on our health care plan and where we stand,
what we look to do in the future.
During this presentation, we are going to look at several items,
but on a high-level review, we will look at the 2016 health care plan.
We'll look at the operating results of 15 and expected 16. We're going to take a look at the
preliminary Mercer projection for 2017 and discuss the challenges and strategies within that
projection. I will bring you a TRS active care update. Also what is happening with the Affordable
Affordable Care Act and its impact for 2017, our voluntary plan update, and our next steps
following this meeting.
This slide you will see that in 2015 the district spent $50 million for the total cost of the
health care plan.
Breaking that down per employee, that equates to $8,235.
dollars. Per covered member it represents $4,775. To bring it down a little further
down closer to home per day we spend $32.4 million in medical claims of which
$88,803 a day is spent on medical claims for
for district employees cost of pharmacy claims in 2015 was 12.4 million dollars
which equates to thirty three thousand eight hundred and thirty eight dollars
per day on the left side of the exhibit you'll see that the district can
contributed twenty eight million dollars employees contributed nineteen point six
million dollars and we had a health care funding shore up of two point four
million dollars from the general fund.
Over the last three years this slide will show you and that in 2014 we had a
4.6 million dollar operating loss which was paid for or paid through the GOF. In
2015 we turned the tide so to speak and on only had a 2.4 million dollar
operating loss again supplied and supported by the GOF for 2016 we are currently projecting a
1.7 million dollar loss again to be paid for by the GOF this graph is a line graph that basically
gives you a little point of reference showing that the the cost of health care continues to
rise for eligible employees the participants as well as the PEPY cost
which is per employee per year cost which ties back to the original data I
shared with you earlier but just a graphic representation financials for
2015 and 2016 this is valued as of May 31st of this year total contributions in
plan year 2015 equated to 47.6 million. We had actual claims and administrative
expenses totaling 50 million so we were again short 2.4 million. In 2016 we had
contributions by both employees and the district of 51.2 million against actual
projected claims and administrative expenses of 52.9 million. 52.9 million
with a deficit of 1.7 million. Looking at 2017, the Mercer projection that we are
looking at based on 6480 estimated participants which is consistent with
our annual participation rate, we are looking at if we were to stay the same,
No changes or modifications to the plan. We would have funding of 51.2 million
with estimated program costs of 54.1 million with a projected deficit of 2.9
million. Again I stress this is with no changes to the plan or adjustments. 2016
2016 health care challenges. We continue to see a large increase of claims as a result of our spouses in the plan.
Those are running about 1.5 times what an employee claim cost is currently taking place.
We see also that the plan cost driven by employee population growth and trend development.
Trend development is another word for medical inflation. We all see this across the board.
So our plan is growing as a result of our organic growth and inflation.
The third bullet point talks about our pharmacy claim expense continues to grow faster than our medical claims expense.
Pharmacies are getting more creative in their billing and finding ways to really, really increase those revenues on that side.
So that's a challenge for us. It really is.
And within the pharmacy claims are the specialty drug dispensing.
You will see a lot of expense that have just grown rapidly.
And we're seeing this not only in the Houston market but across the state and nation.
And again, the health care challenges. We still are faced with the daily and monthly and quarterly and annual challenges afforded to us by the Affordable Care Act.
More reporting requirements, fees, taxes that we must face to pay.
What are we looking at for 2017?
is an issue here. We want to look at doing a conservative premium across all
tiers from zero to fifty dollars per month. Depending on the plan selected by
the employee, the top end would be fifty dollars. We want to look at increasing
our emergency room copay by a hundred dollars, which will save the district
approximately $663,000 and this is to encourage employees to seek urgent care
facilities rather than simply seeking emergency room visits which are
tremendously high we will be looking to eliminate investment dollars that will
equate to savings of right at a hundred thousand dollars investment dollars are
dollars that we pay the carrier to promote our plan so through negotiations
we were able to pull those dollars back we were just switching dollars with them
so we just we stopped that program altogether so we thought we could do a
better job on our side and eliminate the health care incentive will save the
district three hundred and twenty four thousand dollars and to educate you a
little bit on this this was if an employee decided to take it a health
assessment they would be incentivized through their health fund we saw very
very low participation rates so we want to see where we can focus those dollars
on other innovative strategies that may have more return on the investment
dollar for us. This chart is a roll-up from the things that I've been talking
about. You will see that the zero to $50 premium adjustment that I was talking
about. This slide also indicates that the premium, the monthly increase of a 1%
raise that may be discussed in the budget and the impact of that premium
increase so we tried to keep in line that we wouldn't hit the employees too
difficult in the pocket with a with a 1% raise and I would focus down to the very
bottom and that we we do contribute three hundred eighty five dollars a
month to our employees health care plan which is significant compared to other
districts but that does not include any geo F transfers so when you add those
the geo F transfers with the 385 our employees are really getting a really
good benefit and very fortunate to be here at Katy and I will point to the
the last point in the in this slide at the very bottom a national trend as
developed by the Siegel report shows that nationally we are seeing a 7.9%
increase in medical trend development and 11.3% we are currently right now
running a historic 3% trend our plan is doing doing well as I alluded to earlier
we talked about the deficit projected by Mercer if we didn't do anything. However,
with the strategies that we've put together, we will impact that deficit by $1.0 million,
with a deficit to share of $1.9 million. The employee estimated premium increases equate to
$0.9 million. So the expected G.O.F. funding would be $1.0 million in a best-case scenario.
TRS what are they doing this this document will show that in active care selection active care
select plan the premiums will be increasing 2.3 percent the single individual move or maximum out
of pocket will increase by $250 the family move will increase by 500 active
care 1 HD the premium stays flat but they did increase the single move by 100
the family moved by 200 active care to saw a premium increase of 5% with single
single move by 250 and the family by 500.
I won't bore you with all the numbers on this chart, but this is just showing you an indication
of what those rates will be for both the active care and the HMO plans that TRS is offering
for the proposed 2017 year, plan year.
The Affordable Care Act, as I alluded to in the opening, we are still faced with this
piece of legislation we continue to have to provide financial reporting to the
Internal Revenue Service via form 1095 C this is a quite extensive project that
we are having to undertake through programming through document management
that we report to the IRS whether an employee has health care as mandated by
the law we're also assessed a technology fee for submitting this document the
The IRS submits a fee that we must pay to submit the report.
It's really interesting.
We have other burdens.
We continue to track those employees with less than 30 hours a week.
We report all employee hours now to the federal government as mandated.
And we must report all employees' enrollment status and change in status.
us and we have to now answer inquiries based off the 1095 see that we sent the
government as to why this employee did not elect coverage so it takes a quite a
bit of labor to individually research those voluntary products you will see
basically we have not changed any of our design offerings or design plan changes
or we're offering the same voluntary plans to our employees. Of note, the
dental HMO through UnitedHealthcare went up 7% and the dental indemnity plan
increased by 3%. I will also draw your attention to the employee assistance
program. In previous presentations I've told you about what a wonderful program
that is and in the next slide you'll see in the spring of this year we had a very
strong promotion to our employee group about the utilization of EAP and that
all the vast services that it offers free of charge and we saw a significant
spike you'll see in April we were encouraged by that we have a trend
development about 5% of participating but solutions achieved and that is
basically employees calling in and getting resolution to the problems that
they had so they're within that 5% we're seeing some positive results and we will
continue to push this initiative going forward into the coming school year next
steps we will review these options with district leadership we will review our
medical administration requests for proposal for additional savings which we
We are in the final stages of negotiating.
Also, consider and finalize other available options within our plan.
We're trying to save administrative expenses.
And we will present these findings to the Benefit Advisory Committee,
which consists of our employee groups.
And then I will come back to you in August with our final recommendations.
And I would invite your questions if you have any at this time.
Madam President, two questions.
I attended a presentation recently where some school districts are moving to doing a clinic,
which helps to control those costs, also helps to keep a lot of employees on the job quicker.
Have you ever looked at that type of clinic?
Yes, we have.
And we are, the last time we ran the numbers, it's been about 18 months ago,
we are not at a cost efficiency break-even point on operating a clinic even leasing out space with
a clinic our volume just is really not justify that at this time however we will continue to
look at that model and for both from a workers comp perspective and a health care plan as well
it's it's a it's something that's on the horizon as we continue to grow it's a very real possibility
that we will need to explore but at this point in time it's just not cost-feasible
Oh I love on the Affordable Care Act I remember initially we had this a
shakedown fee or I think you call it a ring you caught a reinvestment but be
clear I call it a shaker but uh do are we still paying that no sir we are not
this year in 2017 the reinsurance fee or as you call it the shakedown fee is
is going away however it's being replaced with other items that are causing expenses to the plan
the technology fee and just the sheer man managed hours we spend in our department
doing the reporting to the irs and health and human services is there a value a cost
just so we know how much that portable care act is costing
i would i would venture say close to 250 000
MS.
Thank you.
MS.
Mr. Noman, thank you for your presentation.
As always, it's very informative.
Do I wonder if our employees, how do you feel like our employees understand the complexities
of this health care plan and also the things that KDISD does that maybe other districts
don't do for their employees?
Are they aware of the opportunities they have here that are unique?
Should we do an FAQ and maybe have it available for them?
Or what are you thinking?
We have been doing several different things to help educate and help motivate our employees to participate in the plan
and help them understand the complication.
Our benefit advisory committee is a very good format in which we have an open conversation to tell them about how the district funds the deficit.
And a lot of people weren't aware of that, that those costs could be transferred to them. That was very enlightening this year to a lot of folks.
We also had our first healthcare summit slash fair at Cinco Ranch this year where we brought in our vendors and helped them extend their offerings and help communicate.
And we will continue to do that next year.
It was a very successful event.
In my speaking with employees, we are trying to be, and we've been on a mission to be more engaging with our employees.
Be very direct and help guide that consumerism. A lot of our promotions about the health care plan are consumer driven.
To make those choices, the difference between an emergency room, stand alone clinic versus urgent care.
We strongly promote that. And I will also add that one of the things that we are going to struggle with,
with the turnover, is constantly sending those same messages out.
And then lastly, I would say we have this year, hopefully by open enrollment,
we've changed our website to be more simplified.
more it's it's real a state-of-the-art but but listening to our employees we
asked them what can we do differently and that message was we need to make our
website a little cleaner a little bit more user-friendly where they could find
things a little bit easier it was nice but it's gonna be a lot less intrusive
so we're constantly asking them and taking surveys with our advertising
firm that helps promote our open enrollment.
That's great. Thank you very much.
I appreciate that. It is hard to tell the
difference between those stand-alone emergency rooms
and an urgent care.
We've done that too, shown up and it's like,
oh, this is an ER.
Madam President.
Mr. Scott.
I'm looking at your
table that has the 2007
projected monthly employee
premiums where you disaggregate
between employee-only,
family, spouse, etc. You've defined a loss, for lack of a better word, is the amount that
the general fund is supplementing to pay. Whether it's an economic loss or not, that's
what I'm going to call a loss. Can you tell me in which of these cohorts contributes most
to that loss the the the spousal involvement in our plan contributes to
almost 27 percent of our total claims expense and we have historically over
the last three years have made sure that we stay within our trend that three
percent that I mentioned earlier we want to try to stay have have those economic
economic losses, rather shallow ways rather than steep tsunamis.
And the surcharge spousal involvement in our plan is quite expensive.
And that can be a contributing to the changing economy and the Affordable Care Act as well.
One other question because I think what my best approach, because I do have some questions,
but rather than take up a lot of time here tonight, I think I'll forward some questions
through our president, but can you disaggregate the premium compensation loss
per each of these four categories, per consumer basic, consumer basic choice,
consumer plus limited, consumer plus choice?
Which one is costing the district the most to compensate?
right? Compensate. The consumer plus choice is our most rich plan that
where most employees have more choice or freedom to go within the network so
those costs are usually higher compared to our other consumer basic limited
where the network is more refined and there's more horizontal care more
control more control okay so I'm trying to hone in one more question and then
I'll go written the rest of the way of the consumer plus choice the employee
only the employee plus spouse the employee plus children the employee plus
family plus child family or one of those four is the Cadillac plan or employee in
family contributing more loss than the Cadillac plan for the employee and
spouse the for the employee of the family typically is the more expensive
thank you very much I appreciate it now spend the rest of the time going through
Rebecca I'm sorry miss Fox I'm learning
thank you very much appreciate you if we have any other questions we'll forward
them to you but absolutely thanks so much for presentation thank you at this
time mr. Smith I'm going to talk about the 2016-17 budget update good evening
miss Fox and trustees I a little bit under the weather I'd like to say in the
spirit of following health insurance that I got a staph infection while
while working out at the gym.
That's not the case.
I'm not sure how I got one, but I'm
fighting a little infection.
And if I get a little soft spoken tonight,
that's because I don't feel very good.
And my wife's out of town, and I'm
feeling a little sorry for myself too, probably.
That's the truth.
This is, you know, the, I guess the third time formally I've spoken to you, or the second
time formally, the third time that we've talked about the budget.
Tonight I'm going to go over some things that you've heard before, and I'm going to kind
of start bringing the budget together that you'll see next month.
Next month, this is probably the last meeting we're going to get into a lot of the details.
details. Next month it's probably going to be just talking about the highlights and showing
you summaries at our public hearing that we'll have next month. But tonight I'm going to
focus on the general fund. I'm going to focus on the food service fund and the debt service
fund and then the summary of all of them. And then just talk a little bit about the
future. So with any budget, we start with the assumptions. And these assumptions were
were developed well they're constantly developed but they start with our
development October when we hear the report from PASA and we get our
enrollment number and it all stems off enrollment when it comes to state
funding it starts number of students that you have and then obviously the
property values we did receive property values in late April and we we think
that they're going to be about 35.8 billion or about an 8.6 increase a 8.6 percent increase
we've taken into account loss for arbs and so at this point it is completely an educated
a very educated guess but it is not certain at this point but we feel pretty confident
if there we are erin somewhere is probably on the side of conservative
just to be open and honest last year and that's followed by a 15.7 percent
increase that we had the prior year we're open in two new schools a junior
high and and two elementary schools and then we're also expanding to full
operation or maybe not full but the operation of our South Transportation
Center our enrollment and staffing plans dictate those number of students to to
266 new teachers to the district and non teachers of 248 most of those staff are
associated with our new campuses and and and relate related to growth right now
what you'll see tonight is a 1% throughout these numbers it's a 1%
increase and as we move down to about my left third to last slide I'll talk a
little bit more about that increase okay this is requested from mr. Mahalski last
month I think this is what you were asking for the left-hand side of this
left-hand scale shows our property values over the last 15 years and it's
also the dark or inner inner bars that they move across from right to left
that's our property value growth and the student growth
Is the orange or the one and its scale is on the right hand side so you can see that our property values have actually
Kind of caught up with our student growth
Proportionately over these last few years we've had some pretty large increases in our property values
Now there's a lot of numbers here, and I'm not going to focus on these
but last month and and
historical times before you even last summer I put these cute apples up there
and in an attempt to explain how this how this the the state funding formula
is under chapter 41 and chapter 42 of the Education Code work and you can see
on that fourth column that we had a 10% working down 17.8 percent 15 percent and
and an 8.6% increase in our values.
And because of that, the comptroller is going to assign numbers that have a one-year lag,
and because we get an increase in one year in taxes, the next year the state takes it away.
Now, that's easy to say with those apples, and it's cute,
but I wanted to show this slide to show you kind of the core of the problem.
No pun intended with the apple talk.
Tier 1 is probably the primary portion of the state funding formulas, and there's a
lot of complexity that goes into these numbers, but let's just start with the left column,
and that's Tier 1, and it totals, and you can see that on the first blue arrow that's
pointing up, it totals $479,000 for the year we just completed, okay? $475 million. And
And so based on the number of students we have and the type of students that we have,
there's a weight applied to those, and it goes through the basic allotment.
And the basic allotment is kind of the core of what funds everything from the state's perspective.
And that adds up to about $479 million.
Well, moving across to the next column on the arrow level is our 16-17 projections.
And you'll see a 3.2%.
Now, earlier I just showed a 2.6% in student enrollment.
And now I'm showing a 3.2% increase in our Tier 1.
Now that's the dollar amount, not the number of students.
And so again, we have weighted students in here, so we're growing, but not all the kids
are at the basic amount.
And so that's why it's not tying to 2.6%.
That increases what we earn from the state, $15 million.
So everybody follow me?
We have more kids.
We need more money.
And moving down a row to the next blue arrow is the local fund assignment.
That's the amount that the district is responsible for to funding the Tier 1 of public education.
And you can look at the property values from the previous slide and divide it by 100.
I'm sorry, 1,000.
And it will come up to this number.
Okay?
So on the CPTD column it will come up to this number. Well, those are increasing fifteen point five percent
Because of that big increase we had in property values a year ago. So the amount that the district goes
towards that basic education is forty nine point nine million dollars an
Increase okay, so we increased our portion or our our local fund assignment our share
49 million dollars the state
has decreased their participation by the same amount.
Okay?
By the same amount that Tier 1 went up and our local fund assignment went up.
Those two, the $15 million and the $49 million, add up to $34 million.
So the state's participating $34.7 million less than they did funding the 2015-2016 budget.
and that equates and then so for the numbers that you'll see for the rest of
the night we're looking at an 8% increase in our values so that 8%
equates to about 30 million dollars in property taxes or property taxes would
increase by about 30 million dollars and then the red number at the bottom is one
that I really want you to look at and this is just here one but you see our
our overall funding to operate KDI SD is projected at less than it did it was in
2015-16 it's because our property values at 15.5% was so much greater than our
property value growth this year at 8.6% that Delta is causing some pressure on
our budget so makes any questions on that that's the that's the core so let's
look at it from from a perspective of this is our revenue and and again you
can see that state revenues went up by 31 point I'm sorry property taxes went
up by thirty one point six million dollars that is both columns are
reflective of the homestead exemption being increased by ten thousand dollars
and if you'll look the state funding has gone down by the the amount that we
we talked about on the previous slide.
And so our revenues overall from our final amended budget,
from our amended budget, which we will present to you tonight,
are going to go down, are projected to go down by $3 million.
And I'm going to talk in a few slides on where we're prepared for that.
Okay.
So this is the getting into our expenditures.
The majority of our expenditures are in salary and benefits.
I'll point out that this time last year it was 85.6 percent salaries and benefits.
Now it's 88 percent.
Payroll costs, the current payroll is on the far right, which adds up to $302 million in
teacher salaries and $122 million in non-teacher salaries.
That's our starting point.
And then we're going to add the new positions that we spoke on earlier in the assumptions
of about $18.8 million.
And then the 1 percent pay increase is about $4.7 million that you'll see ahead of you.
So our payroll salaries are up $18 million.
And remember, we're operating with less revenue.
But we'll get there.
Other compensation, that's things like substitutes, tutorials, detentions at
summer school, overtime. That has an increase of 1.4 million dollars.
Stipends, I believe, is in that number. I didn't mention stipends. And then we have
a 1.4 million dollar increase in our benefits. Most of
that's what mr. Nauman just spoke most just spoke to however I will disclose
that we are currently over funding not over funding but we built up a pretty
large fund balance in our workers compensation fund and so we're not
funding that to the full amount they generates three or four hundred thousand
dollars in the budget and we can do that for several years and we just need to
to work that fund balance away.
So a total payroll budget of $560 million
versus $538 million last year.
So here's how we're making it happen.
On the top there, working down, because of our increase
in number of campuses for more utilities, more bus routes
and fuel, and more students to give campus allocations,
We're looking at a $2.8 million increase in our budget to fund those.
However, the $8.5 million, we had an $8.5 million decrease in capital outlay.
Some examples of that decrease is last year's budget funded the shell space, the Geo Weiss building, some furniture,
one-time expenditures that we identified, knowing that we could take care of them and they would not recur like it does.
So we were prepared for that dip in property value growth.
The big one is the technology retrofit cycle.
Instead of using our bond funds, we used the general fund,
and we used that big increase in our taxable values.
Instead of borrowing money for that, we just paid for it.
And then the tourist contribution, and that's pretty stable.
We had a total reduction in non-payroll of $15.8 million.
Okay, the general fund is summarized like this
Starting fund balance with the amended budget is 183 million
Chris
Said you weren't feeling well
I want to give you the opportunity to sit down and I'll control the slides like you must down in that bad
Okay, I'm sweating now, I'm fine, I'm fine, thank you that for that Tom
So our we're projecting our fund balance to be 183 million dollars
we will have a higher fund balance than that we're gonna have under spending and
so that I can feel pretty confident to say that our fund balance will be higher
than 183 million dollars that's about 32 percent of our expenditures and that's
that's a healthy fund balance so we are in good healthy unbalanced with their
general fund 638 million dollars of revenues 626 million dollars of
expenditures extends some underspending and we do budget two percent for
underspending and historically that's been a little bit more than that comes
in about three percent and then some transfers in and out ends up with a
currently with a one percent pay increase a change in fund balance of
five point six million dollars food service fund I won't spend a lot of time
on this we will have to amend next year's budget the budget that we're in
last month y'all approved I think it's 1.7 million dollars for capital
expenditures we're not going to spend that in this fiscal year so we're gonna
have to amend next year's budget once we find out how much we need to amend it
but but we do expect our expenditures to be to be amended but right now we'll in
the year with a a surplus uh we'll end a year better than 289 000 we always are conservative
with our food service fund as well but we will not be able to take large capital expenditures
as we have done in the past okay debt service fund starting the fund balance at 51 million dollars
$137 million in estimated property taxes.
We'll earn some interest on our fund balance, about $250,000.
And then additional state aid home exemption.
That's from Senate Bill 1.
That's not the old existing debt allotment or the instructional facilities allotment
that we used to get.
That is making up for the $10,000 increase in the homestead exemption.
that will dwindle over time but it should stay here for a few years
expenditures we're looking at sixty five point nine million dollars in principle
that includes twenty two million dollars in defeasances interest payments of 75
million dollars that includes four point one million dollars for a bond sale that
will have some time in the spring or a capital project program so that does
does include that interest and it includes the Babs from the general fund
it's our federal revenue that goes into the general fund is recorded in the
general fund and we transfer it over to help manage the tax rate this debt
service fund was built on a budget of 39 cents
and then how that looks all together that's just in there for formality it'll
be like that next week but we all funds would be in good sound condition assuming we don't get any
surprises from one of the appraisal districts future considerations i wanted to show a glance
at next year remember i've talked about our property value increases went from 15 down to
to 8.6% or somewhere near 8.6%.
Next year, if you just look at a 5.6%,
we would have a pretty big deficit at $20 million.
I don't know what's going to happen to property values.
I wish I did, because it would sure
help us plan a little bit better.
But I do know that there are some, what's the word?
i do know that uh golly um that 5.6 percent growth is probably conservative we've had a 9.9.1
percent increase average over the last 10 years and so i think that 5.6 percent is conservative
um if you used the average or 9.9 percent that would bring that to 3 million dollar deficit
that's a very manageable deficit and that's one of the reasons why we're currently working one
percent through this budget because neither case whether it be five point
six percent value growth or nine point nine percent value growth it's going to
be a tough budget year next year tougher than this year this was a tough year and
next year is going to be a tough year as well and a present mr. Smith so you may
have said this amount of missed it on the payroll cost for the two-year look
ahead 1718 did you project a salary increase for that year as well for 1718
Yes, there's a 1%.
That's 1% as well?
Okay.
Yes.
Of course, future considerations, we always are looking at enrollment growth.
That's slowed a little but still growing.
We have economic uncertainty that we're going through here in the Houston area with the decline in oil prices.
property value growth what that's what I wish I had the crystal ball that knew
what that was going to do but I don't in school finance we're currently working
under current law we always plan under current law and hope for hope for better
but until they change the basic allotment or some of the funding
mechanisms we're gonna live with that core the Apple we're gonna live with the
Apple and this the local districts are gonna pay more toward educating kids and
and the state's going to get a little windfall from the property value increases happening in districts across the state.
And we are currently on the edge of a funding cliff.
You can see the bottom line impacted head on us this year,
and whether that will be a cliff next year or a bump is yet to be seen.
Future considerations, we're going to closely monitor our expenses like we do every year as the year moves on.
but we need to prepare for opening three more schools a high school being one of
them with Pato High School I did junior high and Bryan Elementary School so
we'll have some pretty big fixed cost to move through the budget again next year
I will say that our annual financial report or audit does take into account
use of fund balance or does reserve some fund balance for opening new schools we
not had to use that before but we do normally reserve it so moving forward uh we're there on
july the 18th um we're going to ask you we're going to talk a little bit about tonight and
next week we hope you approve the the notice that will run on august the 4th and then that we'll
have the public hearing on august the 15th and we hope to adopt the budget on august the 23rd
The tax rates will be adopted in September.
This is the summary of the notice.
This is the meat and potatoes of it.
And it says that we'll have a board work study, a public hearing to discuss the budget on August the 15th at 630 in this room.
And with that said, I will ask if you all have any questions.
Mr. Scott?
MR.
Could you go back to the table that had the 5.6, 9.9 percent?
I didn't quite catch everything you said.
I just want to make sure when I get home I can actually read it.
There we go.
MR.
This one?
Okay.
MR.
That one.
one are you saying that the tax base you've done two budgets here one that
assumes a much more aggressive tax base grosser one the second one is about a
billion and a half more or the is what about what the difference there in those
percentages make and that's the taxes that when will H can in Fort Bend County
appraisal districts give you what they think is their best in April of next
year that's it that's it they don't like to speculate because I don't think they
they know and they don't want to give bad information and have us...
But I mean, we're going to go into September and there's going to be certified value and
then value under litigation.
When will you determine what you think, 5.6 or 9.9?
For this year, it'll be 8.6.
We'll know that around Christmas time.
We won't know that for sure around Christmas time.
For next year, I have no idea.
I'll be able to do trends, but as far as what's happening in the market right now that's determining the way those will be valued on January 1 of 2017.
That was an excellent presentation on Tier 1.
You did a really good job of walking through that.
I appreciate it.
Thank you.
That's the problem that we are facing, and it's not a problem.
We're in good financial shape.
We were prepared for that.
I'd like to have put that off and been Mr. Conservative again and not have to cross that
road, but our values are not as high as they were in the past, and that's the rules that
we play by.
Mr. Smith, if I heard you correctly, the projection is a 1% increase for our employees in this
budget.
Do you have numbers for what a 2% would look like?
and what about the December payment?
About $4 million more.
So whether we put another percent in the ongoing budget,
you would reduce our change in fund balance by $4 million.
So we would still have a surplus if we did 1%.
If we did a one-time 1% payment, it would be the same dollar amount.
We just wouldn't have that
Recurring in next year's budget so that 20 million dollar potential deficit or the three million dollar potential deficit would be four million dollars higher
at the start in both those scenarios
so building the two percent into the
Into the base and then adding to it year after year is is the biggest concern is?
Because there's the next year in the next year when it yes, ma'am when it came to that slide that
that Mr. Scott just mentioned that replaced the apples, and I call it the core.
Until the numbers that the state uses in the basic allotment are increased,
these are the rules that we'll largely operate in.
During the legislative session last June when they passed, I forget what bill it was,
they did increase the basic allotment by $100.
So it went from $5,040 in the basic allotment to $5,140.
That, when you work it through the numbers that we looked at, that ended up generating about $8 million to the district.
We spent that with a 2% pay increase from the top.
So until that number increases, there's really no mechanism for inflationary hits.
the budget reductions and expenses but not increases in revenue unless we have
huge property value grows but you're always rocking the tightrope about
having the next year not not be as good do we see other people wanting questions
are other districts doing the one-time payment and is this budget that you've
talked about include that one-time payment in december um if we it's only one percent now so
if we did another one-time percent uh in december we would need to add the expenses in the budget
and we could do so and still have a surplus budget so is it is not in here just the one percent that
will start in september that'll come in everybody's paycheck that starts in december or in
September and that is in these numbers if we did a one-time payment it's not in
these numbers and I would need to add it but it would only decrease that bottom
line by four million dollars you think we'd be able to do that one percent to
the base and a one percent at least a one percent I'm confident that we would
be able to do a one percent in December it would be a two percent two percent
increase into people's paychecks into people's bank accounts that's one percent
to the base that we built on year after year okay thank you and and i'm going to wrap up and say
that our marching orders were to maintain a balanced budget we've done that and we wanted
to maintain competitive salaries if we look around we're somewhat competitive and we're
competitive to some of our neighboring districts and some of them we're not but we're kind of in
the middle uh but mr nalman just spoke about what we kind of have as our best asset right now and
to maintain our health care program we are very fortunate to have the program
that he just spoke to you about it's far better off than a lot of our our our
colleagues if you will have when they're participating in TRS active care there
are a lot of districts in TRS active care that want to get out and can't and
we're not it we're not in that case and we can kind of control our own destiny
through his management and I think we've done a good job with that and then the
amount that we pay it may not be in salary but what we pay towards the
health insurance is pretty high compared to other districts not the highest but
it is pretty high and so you got to think about the total package when you
think about salary sometime too and then you know we knew that we were open in
three schools this year and three schools next year and that's always like
adding rocks in a bucket of sand it's you're adding rocks not just I just had
a cup of sand you're in rocks and that's harder to swallow when you open those
schools I will say that we have three thousand one hundred sixty two kids
projected to be in the new schools next year and that'll generate NIFA new
instructional facilities allotment or about nine hundred and I'm sorry seven
hundred ninety thousand dollars we've not gotten that since 2011 we've
probably lost out on about four million dollars by that not being funded back in
the 2011 session now that that's back that helps the pill go down it doesn't
make it easy but you still got to take the pill but it helps to go down by
giving us a little bit of money to help when we open those schools it's
temporary but it helps
I'm prison mr. Mahalsky Thank You mr. Smith for a very thorough presentation
and very very good information there I'm gonna my questions are related to the
adjustment for underspending and just kind of a better broader understanding
of kind of what that is so so I'm gonna give you articulate my understanding and
you correct me if I'm wrong in any way so basically we are budgeting for a
hundred percent of the staffing plan correct as if all of those positions are
filled and sustained throughout the entire year and that basically I think
you said 2% Alec adjustment for underspending is also a budgeted line
item which offsets what we expect will not be spent out of that hundred percent
staffing but is that a fair assessment? That's the largest percent of underspending you know
various departments or campuses aren't going to spend their entire budget
they're gonna leave some on the table but that's the small part the big part
is exactly what you say it's when you lose a staff member it takes you a
couple of months to replace them with the staff the size that we have there's
always positions out there that are unfilled unfortunately and unfortunately for our kids
but it does create some underspending and that's been relatively consistent over the years right
okay so i think you said we budget about two percent there um but it's coming in a little
bit higher in fact i think you said our projected fund balance at september 1st will actually be a
little bit higher than what you're showing here due to additional underspending correct um how
How consistent has that been?
I like that you take a little bit of a conservative approach on what you're budgeting there.
However, if it's extremely consistent to a certain percentage, then maybe we look at building that in a little better or have an expectation anyway.
So I'm just kind of asking, historically, has that been a pretty consistent number?
Historically, it's been pretty consistent.
It's been above that.
It's usually around 3%.
Okay.
when it ends up coming in we budget for two and it comes in an additional one percent
sometimes one and a half percent i think miss butterfield's going to go over a budget amendment
tonight where just by the calendar that was adopted we're going to expense and you'll
understand this we're going to expense two more years two more days in the in this fiscal year
that we're in and so one of the amendments that you'll see tonight in the budget amendment is
going to be to increase two additional days of instruction charged back to this year that nobody
Nobody knew until we adopted our calendar.
That shouldn't change the way we adopt our calendar,
but it does affect underspending when things like that happen.
Okay.
I guess my point is that, yes,
we do take somewhat of a conservative approach to budgeting,
which I think is the smart way to do it.
At the end of the day, there's typically a little extra
that we can pick up here and there.
That is certainly one place.
And I guess if we were ever to not have that underspending or it was going to come in below what we had projected, during the course of the year, would you be able to analyze that and kind of give us a heads up?
We look at it monthly.
And then in February, when we look at the February financial statements, that's six months into the year.
And we, me and Ms. Butterfield and a couple of accountants, we'll spend a day, maybe two days in total, working on our analysis of how we think we're doing with that trend that you speak of.
Okay.
Thank you.
Mr. President.
Mr. Griffin.
Mr. Smith, when you're talking about the cliff, we went from 15.5% down to 8.6%.
So I didn't do the math, but it looks like it's about $8 million that cliff cost us,
about $8 million per percentage point that our property values don't increase.
So we came in this year at 8.6.
So let's say next year we come in at 5.
So that's 3.6%.
So that's a lot of money.
How much pressure does that put on our current tax rate?
It will not change our tax rate.
And we the maintenance and operations tax rate is not able to increase without a tax
ratified attacks robot
So then our our choice will be then just to freeze or find cuts correct
and again I
Want to show I'm going conservative and I want to make sure that we're all aware that there's there could be a tough budget out there
But we have a fund balance, so there's nothing that draconian needs to happen.
This board and Mr. Fraley and the executive management and even management principals have done a great job managing the budget over the years.
And so every district is facing these type of things.
We're in a very good financial condition to face unknown certainties, but we're going to be ready for that storm.
financially thank you
One additional question, if I may.
On the debt service, I believe you stated that out of the roughly $66 million in principal payments
in the 2016-2017 budget, about $22 million was anticipated defeasance.
Is that correct?
Yes, sir.
That's the defeasance opportunities that we've identified, and we think we can defease $22 million
and save not even a refunding opportunity there, just flat-out save interest.
And that goes along with the debt management plan that we've been operating under for several years.
One thing I did not say about the debt service fund that I regret not saying is we have a pretty big refunding out there on the horizon.
And as we talked about last month, in September or October, we're going to take parameters to you to tee it up and be ready to capitalize on that refunding as early as November the 15th.
And the interest rates are very good to do so.
And I talked with the refundings that we did two years ago.
I refer to that as we hit a home run.
This last year we just had a base hit.
There's a chance that we could have a very good at-bat next year.
I just want to add, I think, and I'm doing a little bit of math in my head,
but that's getting close to about $100 million worth of debt we've retired through refunding
or defeasance since I've been on the board in just over four years.
So pretty good work.
Mr. Smith, do you think that being a legislative year,
a lot of what happens during the legislature this year will affect what it looks like in the future?
I know that the Supreme Court handed down the minimum standards for education is being upheld.
But none of us are interested in minimum standards,
So I know the legislature will be looking at how to fund education and what they can
do to help us out.
We certainly will be there talking to them and telling them how important our kiddos
are and education.
So some of that is also an uncertainty in preparing the budget going forward, right?
We obviously, as I mentioned, we plan on current law and hope that maybe something will happen
that will end up benefiting our students. We planned under current law so nothing's
changed with the May 13th Supreme Court decision. Unfortunately, I was on vacation
and I read that Governor Abbott had asked to send out an edict to reduce
state spending in various categories by 4% and be ready for a 10% reduction in
spending public education was not identified in that memo as i understand it again i was on
vacation and kind of read it with my wife kind of pulling at me saying get out of that um but uh
but as but but they are on warning that the state's state's budget doesn't uh isn't fruitful
like it was two years ago what's keeping the state's budget propped up is the local
rising local property values are better than they forecast and and it goes back
to the apples and they're getting relief that's a lot of information tonight okay
any more other questions thank you so much mr. Smith and I'm sorry I wasn't
feeling good kind of got shook up or something you did a great job without
Even without your wife being here to tell you which medicine to take.
Mr. Gunnell will trade his seat from next to the desk to talk to us about attendance boundary modifications for 2017-18.
It's that time of year, that time of season again, Mr. Gunnell.
It is that time again, isn't it?
Well, good evening, President Fox and trustees.
tonight we start setting the stage for attendance boundary modifications or as we call them ABM that
will bring to you this calendar year for implementation for next year the 2017-2018
school year as a key result of the voter approved 2014 bond the district will be adding 9,000
classroom seats over the next couple of years by opening a new high school to junior highs and
three elementaries of these six new schools three are opening this fall and three will open in 2017.
2017 schools are bryant elementary stockton junior high and paytel high school
you may recall that prior to convincing our work on our last attendance boundaries
i came to the board to solicit feedback on our proposed process and to clarify the scope of
work for the attendance boundary modification and it seemed to work well in 2013 and it seemed to
work well in 2015 a lot of the content you see tonight is familiar and why well it's fundamentally
the same process we've been using in the past where i could i use the identical the identical
slides or material that has been in public presentations before and this slide summarizes
the process for this year's abm it's identical to the process slide i showed the board in 2015
and reflects the improved process we have had in effect since 2011 in this
process our demographic consultant population survey analysts or passive
for short and Katie is the administration jointly developed the ABM
options pass out of College Station is the largest demographic firm in the
state of Texas specializes in school districts and has been providing
projections for Katie is D as long as I have been here continuing on with our
process board meetings will be held including tonight to discuss the options which will be
publicized through a variety of mediums a key component of this process is the opportunity
for the public to provide input on the abm before a final recommendation is made
we plan to bring the final boundary recommendation to the board in december as far as the schedule
goes typically in october we have the demographic update bring a preliminary recommendation to the
board in the first meeting in november followed by a couple weeks of public feedback and surveys
with the go to bring the recommendation to the board in december for the attendance boundary
during the discussion action part of the meeting we are proposing the scope of work for this abm
to consist of two items not surprisingly the first item reflects the need to adjust
the attendance boundaries associated with opening the new schools next year
Now last year we also analyzed options for schools that exceeded 125% of capacity with no release school plan.
As a result, modifications were made to Nottingham Country, Cimarron, West Memorial, Rylander, and Griffin Elementaries.
This year we will look to see how well these modifications are tracking
and if there are any other campuses that exceed 125% capacity with no release school planned.
Let's take a look at the 2017 school locations. Bryant Elementary is adjacent to Young Ranch and Willow Creek Farms.
I expect it will be our westernmost school. It is located on Kingsland, west of Peterson Road, within Wollman's current attendance boundary.
Stockton junior high and paytel high school share a location at the corner of Stockton
school road and peak road you will note they are west of 99 and are the northern
most of our campuses west of 99 for now Stockton junior high is located within
McDonald junior highs attendance boundary immediately north of the Ventana Lakes development
development.
Paytel High School is located on a joint campus with Stockdick Junior High and is within the
Katy High School attendance area.
As we develop our communication plan, we anticipate three phases, much as we did
last ABM. Those phases are education,
participation, and notification.
notification
Now last year we received more feedback and better quality feedback than we have ever had received in the past
Here you see that we received almost 9,000 online responses. We took phone calls and we
We received emails and I'd like to show you how that compares to going back to 2010 when I first
Started tracking this the first one is 2010
676 responses where we did exclusively by workshops
Starting in 2011, we went to electronic surveys, and you can see that in 2011, we had about 2,700 responses.
Compare that to where we were last year with nearly 9,000.
Inclusion for today is that attendance boundary modification is necessary for school year 17-18
due to the opening of one new high school, one junior high, one elementary school.
that we have an effective and efficient ABM process at least we have for the last few years
the recommendations will be generated crafted collaboratively with the district administration
and population survey analysts and this process provides a robust feedback loop
through surveys and direct communication that's the plan for this year any questions
Thank you for the calendar and the process.
I think it's proven that it works.
We certainly get a lot of input from our community,
and thank you for modifying it over time and making sure that we hear from our community
and inform them of how this is happening.
Appreciate it.
Yes, ma'am.
Madam President.
Mr. Mahalsky.
I just want to say I concur.
I think it's a good process and look forward to putting it into play once again.
Thank you.
Okay, Board members, at this time we'll move to our discussion action item 5.1, discuss
and consider future approval of an interlocal agreement with Harris County Municipal Utility
District number 62 in Katy Inquinta School District.
Mr. Knight, good to see you.
Good evening, Madam President, Board members, Mr. Knight.
Good evening, President Fox, Mr. Gunnell and Board Members.
I'm bringing tonight to you a recommendation that the Board of Trustees approves an interlocal agreement
with Harris County Municipal Utility District No. 62 and Katy ISD
to acquire and install playground equipment for the Spark Park project at Diane Winborn Elementary.
Through the agreement, KDISD will approve the plans for this equipment
as appropriate for installation at Diane Winborn Elementary.
The project is estimated to be completed within six months from the effective date of the agreement.
Partial funding for the project will be provided by the Municipal Utility District No. 62
in the amount of $4,000.
dollars the recommend the recreational facilities will be available for public
access at the conclusion of the agreement Katie is D agrees to own
operate and maintain the project this agreement has been reviewed by the
district's legal counsel any questions any questions board members we love
those spark parks that's great thank you so much thank you
5.2, Mr. McIlwain is here to discuss and consider future board approval of Amendment 1 to the
Dramala Construction Company Inc. Construction Manager at Risk contract for the guaranteed
maximum price related to the Cinco Ranch High School Fieldhouse expansion, renovation, and
the science lab upgrade.
Mr. McIlwain?
MR.
Good evening, President Fox, Board Members, Mr. Ganell.
I'm here tonight and this recommendation is associated with the 2014 bond authorization project,
the expansion of the Cinco Ranch Fieldhouse, as well as some science upgrades at Cinco Ranch High School.
I'm joined tonight by various members of the team, Debbie Decker, as well as the design team
and the contractor, Dramala Construction, this evening.
Unfortunately coach Clayton was not able to be here tonight. He's at a coaching clinic in San Antonio.
But I must say that on behalf of the design team we we truly appreciate the the time that has been spent by the
campus athletic staff coach Clayton and his staff as well as Debbie Decker in the development of the
recommendation that you have before you this evening. As you know, we
We identified the scope of the project to the board in February of this year.
In March, we brought Dramala as a recommendation to be the construction manager on this particular project.
Since that time, the team has worked quite diligently to bring the project in on budget.
You can see that the bond authorization amount, $5,135,724, matches the amount that we're bringing tonight as a not-to-exceed total project cost.
We are recommending the GMP for this project would be $4,475,000 with, as I said, a not-to-exceed number of $5,135,724.
You've heard me previously associate with other board items, construction-related, whereby we've had a number of challenges with respect to the construction market.
The team worked quite hard to bring this number down on budget at the same time
addressing the the needs of the campus athletic staff as well as Debbie Decker
and her staff. This contract has been reviewed by our construction attorney
and with approval of this item we will be looking at moving forward with an
anticipated total construction completion date substantial completion
completion date of July 17, 2017, so prior to the 2017-2018 school year.
And I'd be pleased to answer any questions that you may have and if necessary I have
a number of support personnel here who could assist me.
Madam President.
Mr. Griffin.
I don't know Mr. McElwain if I should address you or Mr. Gunnell, but I want to thank you
you and your team, I don't think people realize just how many kids utilize the facilities
that you're talking about today.
And I'll just point out Cinco in particular with all the seven-on-seven programs, the
soccer, and those fields, lacrosse, using the field in front.
So many people use those facilities.
And thank you for identifying a problem and realizing that if we spend it, we can keep
the kids active, we can keep them involved in doing the projects or doing the programs
that help them do so well in the school.
Thank you, Mr. Griffin.
And I know that Coach Clayton would appreciate hearing those comments
because he has been quite passionate about this project
and the needs for our students.
Yeah, passion is a good word with Clayton.
Mr. President?
Mr. Michalski.
So this year looks like completion about a year from now, right?
That's correct.
Just out of curiosity, I mean, what does that entail
throughout the course of the year?
and I guess will it disrupt what's what's happening there now I know
they'll be happy to get it once it's completed just kind of want to write if
you can recall the scope of this project is in addition to the field house which
is essentially to the west to the east side of that the existing field house so
we would do our utmost to minimize any impact there are some renovations that
are included within the existing building we would do those projects when
school was not in session some of the smaller pieces of work we may be able to
to do at Christmas or March break,
you know, like the fume hood, some of the science upgrades.
We would work carefully with the campus
and Dramala Construction, as you know,
has an excellent track record with respect to,
and they are currently on some of our other campuses,
occupied campuses, working closely with campus personnel.
So I feel quite positive in that regard.
Very good, thank you.
Madam President?
Mr. Scott.
First of all, let me say I have zero intention of voting against expansion of these facilities at Cinco Ranch High School.
However, I recognize the need and the role and the importance of that.
However, I do have some questions.
The meeting is going on perhaps a little bit longer than I envisioned, so I'm going to do everyone a favor,
and I'm going to cut them down to a bare minimum here.
here. But let me address to you what I hope to learn. Five million dollars is not a big project.
What I found in my experience is sometimes you can learn a lot in five million dollar projects
by procedure. And I have not had an opportunity to look at your entire capital improvement program,
which I genuinely hope to be able to do sometime in the near future. As I look at your Amendment
Amendment 1, Exhibit A on the Cinco Ranch Fieldhouse.
The questions that come to mind, and you'll have time to do this.
I'm not trying to put you on pressure tonight.
I would like to see the backup data for your contracting requirements,
353,193, and your general requirements of 152,297.
I would like to see how the specifications in that are line-itemed.
just for my own edification.
I would like to understand the process by which,
at this point, after so much planning,
that there's $165,000 of contingencies in this.
So I'm going to want to understand,
are these contingencies the kind of contingencies
that come into play in any remodeling project?
are there unknown factors that you're not aware of or is the other kind of
contingency can be that you have a list of things that you can add on your own
discretion under a maximum a guaranteed maximum price and so I'm going to want
to know if the team has seen that this project has come under budget and that
they have added items that can be done under the guaranteed maximum price
without saying this or presenting these items to this board that that's going to
be the area that I want to know if I can respond to that or mr. Scott the
contingency amount that you mentioned that dollar amount falls typically on
our projects and I say typically because every project has different set of
nuances to it as far as complexities go but typically five percent contingency
amount is not unusual that that would fall under the five percent contingency
amount that that amount that you had mentioned I would also like to indicate
that no we do not plan for for what you had indicated with respect to these
contingencies are for unforeseen circumstances or for such things as
because you know our team has works on so many projects that the owners
contingency if let's say we get into the project and let's say there's a change
in coach Clayton's program or some change along those lines that enables us
to be able to make some decisions on the fly to be able to because our goal being
that when we finish this project that we walk away from it and we've addressed
the needs of the campus because obviously it would not be cost-effective
for us to come back in on another on another project so that's for unforeseen
circumstances. This is an existing campus so that oftentimes there are some
unexpected things that we encounter the contractor encounters. There could be a
broken underground plumbing line in the vicinity of where the addition is going.
There may have been an underground line that was not shown on the as-built
drawings when this addition goes in. That's for that particular we do not
have to answer your question but sort of a wish list of items in the back of our
head that we're going to use this contingency money for. That contingency
money is there for any unforeseen, unplanned aspects that come up during the course of the
project? I'm glad to hear that because here's a point that concerns me when I look at this,
at this stage of the game. You're very late in the stage. You're about ready to move forward
with this project. This is not Dede Junior High and Houston ISD. It's not Milby High School.
It's not Reagan. It's not Walter. This is a relatively new construction. So the opportunity
opportunity to know
Little about Cinco Ranch High School is minimized compared to a much older facility
So I am I am glad that I'm hearing that there is no secret list
There is no private list like Astro turf on the practice fields
Whatever right that that that doesn't exist that these contingencies
If we don't find that leak in the plumbing underneath the slab if we don't find
the load-bearing wall that we didn't know about these contingencies are not
going to be spent that's what my next comment was going to be I was going to
assure you that if we do not need the contingencies and obviously that comes
back to the project and that then falls into what we call undesignated funds for
in the bond program and that's been able to benefit us on a number of other
projects so we do not to answer your question we do not look for places to
to spend all of the contingency money.
If we don't spend it, it comes back.
So you would bring a change order back to the board,
I presume that would be the process,
or would the money just go back into the bond funds
without board?
We work with Chris Smith's department,
and it goes back into, it falls into a line in the project,
unspent funds in the project, that then gets captured
in an account by the business office.
I guess the only thing that I would like to see,
if y'all are willing to do that,
is I would like to see the line items in the contracting requirements and the
general requirements just so I can see how this is structured it'll help me in
future right if I can just add just that you talked about education with respect
to our process if the on this particular breakdown it's a rolled a roll-up
breakdown based upon that specification sections as you probably can can
understand obviously there's thousands of different components within a project
and for example under the general conditions that would be things like the
construction trailer things that are not associated with the work directly
general requirements would be stormwater prevention possibly dust proofing some
spite site-specific but I couldn't if you after that level of detail I can you
know we can the team can pull that together it's if I don't want it to be
overly difficult but here's my assumption my assumption is that there
are line items that add up to 353 193 and 152 297 that's correct this may be
the last time I ask for that's correct we don't have a problem with that like
we I would just like to see this front I'll get that through to President Fox
we're in good shape thank you and just for clarification those two lines the oh
00 and 01. Correct.
Okay.
Any other questions?
Okay.
Board members, any objection to moving 5.1 and 5.2
to consent agenda?
No objections? They are both so moved.
Okay. 5.3, discuss and consider future
Board approval of additional departmental staffing needs
to address growth for the 2016-17 school year. Good evening, President Fox, Trustees, Mr.
Gnell. I'm here to request additional staffing. Department staffing that is
needed to address growth for the 2016-17 school year. We're requesting a total of
61.5 units, one going to facilities and planning, two for the police department,
40 for transportation. Those 43 units would be covered under general funds. In
In addition to that, we're requesting 17.5 pre-K aides and one pre-K program specialist.
I'm sorry, let me remove this.
Those 18.5 units are going to be funded under Governor Abbott's pre-K initiative,
in which 578 surrounding school districts were granted approximately $116 million.
dollars. Of that 116 million dollars, KDISD is allocated to receive $1,021,376.
Our goal is to use those funds to make sure that every pre-k teacher has a
pre-k aide assigned to the classroom. At this time we have 45 pre-k teachers
and 27.5 aides. If the 17.5 were approved, that would give us the total of
47 aides for each teacher. At this time, the good news of this is that KDISD has received
its first installment of $536,988. I do want to be clear that because they're grant funded,
these positions right now, the money is only there for one year. So when we post those
positions, we would post them indicating that they are grant funded positions.
Any questions?
Madam President, I have one.
Mr. Michalski.
Mine is around the bus drivers, so 30 units for bus drivers.
Is that to sustain the current transportation plan along with growth for new schools?
I'm a little, I guess, surprised to see that number, I guess, at this point.
Yes, and I want to be honest.
We had 23 bus driver units that came to you in March which were approved.
The 30 units would be to establish a pool of drivers to cover sufficiently for absences
So that's where the additional 30 are coming from and it will also prevent we're trying to prevent the lead drivers and the mechanics
From having to cover routes because a lot of times they're having to be asked to cover those routes and to avoid that
We're trying to create a pool when we have all of the absences
Okay, one follow-up if I might and that's very good explanation. Thank you very much
welcome how are we seeing the market right now for in that is it is it a
little better than and then it has been in previous years or do we do we believe
we can fill these units me let me refer to skip
I'm mr. bass doing a little bit better in that area and I'd have to sorry hi
mr. Baskerville we get to see you here often we're glad to see you thank you
thank you we're in a little bit better shape and I have to give a tip of the
had to the recruiter that has been placed in transportation has been
Charlie's been very aggressive and trying to get as been reported by Mr.
Robinson in previous board meetings trying to get more drivers out there
it's a little bit better market because unfortunately for some of them well I
guess that does benefit the school district that we can actually have a
better pool so it kind of wax and wanes just depending on how many people out
there looking for a job but the boys have been very very good in allowing us
to pay appropriately and also again Charlie's done a fantastic job and
maximizing the efforts of recruiting from transportation okay good thank you
thanks for the hard work that's that's good news
I'm president mr. Scott I think mr. Machowski and I were on the same page we
kind of zeroed in on 30 my questions his questions were mine but I have a couple
that I would like to add not suggesting that you do it but I'm just trying to
come at the market condition a little bit different angle if you needed to
hire 50 bus drivers with all the efforts that have been described is the market
there where you could do that if not how many I don't know if I have a straight
solid answer for that one the request is that the 30 units are requested to hire
a pool of drivers in the event that we would need them for absences so it's not
like the 30 would be hired on a daily basis so it's kind of hard for me to to
answer that honestly all right let me try it again has the market changed to
the degree that if there were a determination that perhaps some of the
the council right, council routes on some sort of priority basis.
Might ought to be restored if you could come up with a process to do that as the market change sufficient
To allow you to reasonably consider that you could bring bus drivers more bus drivers into that process
Mr. Cannell I'm gonna have mr.
Cannell store and answer that
Yeah, thanks for that lead in the mr.
Scott and I'm gonna ask Mike Robinson to step towards the microphone to give me back up if I need it
we've worked very aggressively to try to recruit as many drivers as we could over the last couple
years and it's all we can do to just hold what we got you know right right now you kind of have
a downturn some of the areas of the economy which kind of gives us a break but I would not venture
to say that that is going to be sustainable long term I think we have to play it a couple years at
of time to see where we are see where the market conditions are because the worst thing i think
would be to bring back a route only to have to cancel it a couple years from now we review it
every year and i'd say that even though the market conditions for us hiring bus drivers is pretty
good it is not sufficient for us to return to what we used to have as far as bus routes go
mr robinson can you either confirm or deny that what i said is true
I can absolutely confirm it, sir.
All right, that's a very direct answer and I appreciate it.
One final question.
How many bus drivers did we lose over the last year, the last two years?
How many were bus drivers and now they're not bus drivers?
And are exit interviews done to determine whether it's pay or discipline support?
support, what are the factors and the numbers when bus drivers leave?
The number is something that we would have to investigate and give you that, Mr. Scott,
in a future meeting.
But I can tell you, in looking at the exit reports, a lot of the bus drivers leave because
of issues of full-time pay.
Remember our bus drivers make twice as many trips as the average employee, so to speak,
because they come to work twice.
so if you have someone that's going to work you know going driving to work once
back coming back and also full-time I mean eight hours then that's going to be
a little bit more attractive also summertime you at this time we're not
using any bus drivers because of summer schools so those bus drivers still have
to find some type some type of income during the summer and we just hope that
we can get those back I do have the pleasure of being able to hire the
recommendations as transportation and put some and I do review a matter of
fact was doing a little bit earlier and we do get a lot of our bus drivers that
come back because of the conditions because of the pay because of the
flexibility and the benefits that we do offer we're able to get those bus
drivers back but we do lose some because of the summertime they will get a job
somewhere else and they evaluate what's a better option for their family so the
numbers I cannot give you a number on that it's we do get a lot of bus drivers
that do leave for family reasons just as are any other employees and we've
You've answered sufficiently, but just one clarification.
Yes.
So when people tell me, as I know you have all found out,
when people tell me that discipline or lack of support is a major factor in losing bus drivers,
you're saying that that is more episodic and not...
Yes, sir.
That's not a trend, and that's not something I see consistently on exit report.
Okay.
Yes, and if it were, we would address it, but I haven't heard it.
Thank you.
MS.
The number of bus drivers we lost in 2015-16, I can easily provide that to Ms.
Nowak in the morning.
MR.
Look, we'll do data requests through Madam President, but I'm not, you know,
you've answered my questions and I appreciate it.
MS.
Okay.
MR.
Thank you.
MS.
Any other questions about that?
Okay.
Any objection to moving this item to consent agenda?
So moved.
You're going to stay right there, Ms. Nisman, and talk about future Board approval
of the stop and schedule for the 2016-17 school year yes ma'am joined by Debbie
Decker I miss Decker good evening Thank You Debbie okay so the district reviews
its stipends in a three-year cycle review in January of 2016 we review the
athletic stipends which resulted in changes for both junior high and high
school as part of the process we are a committee comprises of human resources
the area superintendent chief academic officer and subject matter experts
first depending on which area we're reviewing for that year. So for the 16-17
school year we reviewed athletic stipends and it goes into a cycle 17-18
will be academics and 18-19 will be fine arts. So this year we're asking for a
pretty significant increase in our athletic stipends, 6% average of 6%
and the reason we're doing that is because we're utilizing the market
the market averages over the surrounding school districts.
The 6% will place KDISD slightly above the midpoint for the first year.
And just using historical data,
it will keep us in a very competitive market over the next two years.
What we have found is that all of the surrounding school districts are
analyzing their stipends and reviewing them and adjusting them each year.
And we're doing ours in a three year cycle.
So in order to remain competitive over the next three years for athletics,
we are doing the 6% increase which is an equivalent of 2% over the next three
years so by the third year we will actually be 2% below at least the
median range for the other area of school districts and also I wanted to
add that we had junior high and high school principals that also served on
the committee with us which was very helpful because you know our principals
are the ones along with the coordinators that are doing the hiring so they know
you know, which positions are hard to fill and whatnot. And not every stipend received
6% above the midpoint. If you'll notice, if the average was already above that 6% mark,
then they were not given an additional 6%. So there were some stipends on here that actually
did not receive that.
And then I want to make note in addition to the athletic stipends, we're out of cycle
on two. On the last page you'll see that we have a Simon Youth Foundation Academy
stipend with the Simon Youth Academy opening in 16-17. We established a stipend for those
teachers and then also for the high school restorative discipline facilitator. We created
a stipend for that. So I didn't want to be misleading that it was strictly athletic stipends
for this particular cycle because of those two new programs.
And I would like to add one more point.
You know, it's interesting.
This morning I was in San Antonio at the coaches' clinic as well,
and Dr. Charles Brightup from the UIL came and spoke
to the Texas high school athletic directors.
And basically what he said was that there are not enough quality coaches
in the state of Texas to fill all the coaching positions.
It's a very competitive market right now,
and it has been for the last few years. And so he actually is encouraging the
Texas High School Athletic Directors along with Texas Girls Coaches
Association and Texas High School Coaches Association to get together a
committee to try to come up with ways to improve that that issue that we're all
facing right now. So we are all basically fighting over the same coaches.
I'm present mr. Mahalski are the is this recommendation reflected in the budget
presentation that mr. Smith gave us earlier yes it is also just one of the
chat madam president what's your name mr. DeBrell yes I just drew a blank few
weeks ago I was talking with a colleague from another district and this actually
came up about coaches and fine arts teachers whether we band directors or
whatever and the number of hours they make relative to their pay and this guy
is sort of like you Brian he's an accountant type by person and he did one
of the head coaches at one of his high schools is his compensation if you broke
it down hourly they came to three dollars and 69 cents per hour so we get
people and we asked them to do incredible jobs with these young people
and I think this is the least we could do for them because of the hard work
they're there all day they're there after hours they're they're just there
so much so uh I mean when I heard that number I was like wow we need to do as
much as we can for some of these thank you not I'd like to add that you know we
started this the three-year cycle probably approximately nine years ago
because I think I'm on my third one and I've been here 11 years and so the fact
that that we are doing it every three years you know three years ago we were
significantly lower than a lot of other districts but we also didn't want the
budget to take such an incredible hit so we actually kind of came up to about
here okay so now we're at that midpoint and we're just trying to edge right
above it because of the competitive market right now and and if if we if we
evaluated stipends every year which would be very labor-intensive for our HR
department you wouldn't see the size of an increase that that you do today but
if we remain under the current structure then unfortunately this is the downside
of that mr. Griffin mr. Jabril I'll one-up you on that one I'm still talking
to form my coaches from junior high and high school and i don't even think they still get
a stipend anymore so when you're talking about quality coaches quality teachers uh definitely
i think their paper hours down to just cents on the dollar so if this helps us get the quality
that we have or to keep the quality that we have i think it's a great idea right so definitely to
keep and attract new talent.
You know, I'm just going to echo what my colleagues have said.
It – everybody knows how much I love teachers, people who directly work with boys and girls.
When you add onto that an after-school activity, it goes from teaching curriculum to developing
as young men and women, right?
There's as much life lessons and developing character in a coach or a band director or a choir director,
someone who spends extra time outside of a curriculum driven.
And our teachers do the same thing, of course.
You know, there are lots of teachers who make an impact in boys' and girls' lives.
All of them do.
But a coach or a fine arts educator who spends extra time with boys and girls, teaching them all kinds of things, you know.
Yes.
Great deal.
We call it an outdoor classroom and a gym classroom and whatnot.
There's a lot of teaching going on, not only about.
Just watching these fine people who, you know, we see them come and present here
or, you know, we see the team captains and they're so poised
and we see them interview on television, you know, and you're like,
how can you do that?
You're 16 years old.
And, you know, it's because they've been developed and talked to and taught
and and it's it's as much about character is it as it is about any sort
of a physical ability of any kind or a musical ability and I'm just impressed
and I'm going to add that with the three-year cycle review there are pros
and cons one of the positive things I find is it keep those three areas from
having to compete against each other in those particular years so if there's
only so much money on the table athletics doesn't have to compete with
fine arts and fine arts doesn't have to compete with academics at that time and we don't have
to sit there and try to say which one is more important than the next.
So there are very good pros and cons about both but that is one of the things that I
like most because they do not have to compete with each other.
MS.
Good point.
Any other questions?
Thank you very much for bringing this to us.
Trustees, any objection to moving this to consent agenda?
Okay, still moved.
We'll move right along.
Ms. Edmond, you're just going to stay right there.
Yes, ma'am.
Discuss and consider future Board approval of the teacher
salary schedule and increases for the non-teacher pay group
employees for 2016-17 school year.
Okay, so I'm going to bring Ms. Connie Davis up because I do not
want her to lose credit for doing most of the work behind
this.
Connie is our compensation manager and she's put a lot of
work into this.
Good evening.
Did you say Davis?
Connie Davis, yes, ma'am.
Miss Davis, we're really glad you're here. Thank you very much. Thank you for all your hard work. Tell us what you've got
So what we're presenting tonight is a teacher increase in a non teacher increase
We're looking at a teacher increase of the greater of 1% or a step and a non teacher increase of 1% of the
2015-16 midpoint
There were a couple of things addressed in Mr. Smith's presentation
One of the concerns that I have is that I am concerned, slightly concerned about us falling below CIFARE as much as we are.
If we go to 1%, our starting salary would be $50,500.
CIFARE has already approved a $52,025 starting salary.
One of the things that I want to point out, the 1% will still keep us under CIFARE even if we did the 1% supplement in December.
Because CIFARE has consistently in the last three years added their full raise to their base pay.
And if we do the supplement multiple years in a row, it's going to continuously put us behind them.
So I just want to
Put that out there
You know I know if we can only afford a 1% we will have to but I am concerned that if they continue doing base
Every year and we put half of ours in a supplement it will continuously put us behind them
And that's probably one of our most competitive districts
Miss Edmund, you know
What cypher does with their supplement and as far as how much they help with their insurance?
Yes, ma'am.
They're on the TRS system.
And that's one of the things that.
We have seen that TRS is more expensive than our system.
We do stand above them in that.
Connie and I actually was trying to do a lot of research on overall benefit packages.
Now, as far as vacation days, the school calendar, we're pretty much equivalent to everyone.
So we have to go down to the benefit level and look at those.
And it's a wide range.
Sure.
It's a very, sorry about that.
It's a very wide range.
So we have districts, I'm sorry, I think I'm loud and I'm very soft-spoken, aren't I?
Okay, am I loud now? All right, good deal. Okay, so it's a very wide range. A lot of
the school districts have several tiers and their benefits, so what I've put
together was just the very minimum cost that the employees pay per paycheck.
This is going to be monthly and the very highest they pay. KDISD is a range of
$92 a month up to $852 a month. That's going to be per employee per month.
Sci-Fair is a range of $116 to $1103. Fort Bend ISD is $80.23 with the highest
range of $422.81 and Spring Branch has a very low amount of $25 but next to it it
says that that particular plan has a very high deductible but it didn't
indicate the deductible amount and their highest is 976 so out of the four
districts I fare and spring branch or TRS and Katie is D and for being a
self-funded a couple of other things that we did some research on is the
benefit subsidy Katie is D is contributing three hundred and eighty
$85 per month per employee towards benefits.
Spring Branch has a tier, and it depends on which plan they pick,
but it ranges from $316 a month to $498 a month.
Fort Bend is $300 per month.
Cyfair is $225 a month, and Aleaf is $285.
So KDISD is contributing the most towards benefits.
Even compared to Cyfair?
Yes sir, a site fare is $225.
So one thing from an HR perspective when we're out recruiting, and I think if we're going to go this route, and we're going to use our benefit package as a way of...
Our teachers don't know this. They don't. They would not know that KDISD is contributing $385.
dollars what they're going to see when they go to our website and we're out without recruiting for
them they're going to look at our teacher's salary schedule so i think we're going to have to find a
way to be more creative in getting that information out there's no choice we're going to have to get
it out because i think if you ask the average teacher today they're not going to know and i
don't think they really put that in their radar when they're looking at their salary so if we're
going to use that as one of our tools then i think we're going to have to get more creative with i
I don't know how we advertise for that.
I would be working with Mr. Nolman on that,
but that would be something we might have to start advertising a little bit better
so they'll know that it's not just about the base salary.
Ms. Edmund, would we also be able to include the one-time supplement that we give
and somehow be able to include that also?
Because I know that we had a great deal of positive feedback about having that lump payment at one time.
the teachers the employees they're able to see it and actually do something with
it it's a little bit like the income tax return right when you get it you're like
oh a lump sum I can really make a difference with this rather than see it
spread out over 12 or 24 paychecks so you know be able to do that for a
recruiting tool for you I I it's not the norm I don't think we have a norm at all
mr. Smith I think we do the best we can based on the projections that are coming
And I think you know this is new for for us to do that supplemental payment, and I know that some districts are
Doing that in the instead of adding to the base salary yes
I have a I have a couple spring branch is doing a two percent supplement in two installments
So they're not adding anything to their base
For being has decided to only give a step increase
CIFAR is doing a two percent on base and a leaf is given a flat one thousand one hundred and eighty six dollar increase
And as far as starting salaries, Spring Branch and Fort Bend have decided they're not even
touching their teacher salary schedule, so it's going to remain the same from 15-16,
with Spring Branch having a starting salary of 50 and Fort Bend having a starting salary
of 50,005.
So the only district that we're really going to be under is Sci-Fair, and we really don't
ever compared of a leaf they're always going to be the highest and they're
starting as 52 8
madam president this one like a statement and this is something I've
heard for many years it's just my philosophy and as we get into budget
I'll express it maybe numerically I think a four-year teacher who has passed
the probationary period is where you put more bang for the buck than you do a
one-year teacher it does not bother me in the least that we're below sci-fer
on first-year teachers I will not lose a nano ounce of sleep for that reality
that's just me a four-year teacher who has gone through the probationary passed
our discipline I'm not discipline assessment but passed our principal's
assessment and gotten positive reviews my goal is to try to make it possible
for us to have more four to ten year teachers than it is one to three and
that's my philosophy you know mr. Scott that's a very interesting perspective
because maybe two years ago miss Edmund we gave differential arrays for the five
to ten year teachers for that exact reason the private sector has certainly
certainly recognized that teachers know how to collaborate, they know how to communicate,
they certainly can problem solve and they're taking our finest people who have come here
and enticing them to go to the private sector.
So we gave a more significant raise for the five to ten year teachers in order to keep
them from being attracted by an outside and we recognize the exact same thing that you
just said and it's not I mean we we value them all but that's that's exactly
what HR brought to us and we approved that two years ago is that right two
years ago I've been about two years you correct I know it so yes or you're
mirroring exactly what they recommended
Any other questions?
If this goes to the consent agenda, we're not precluded from coming back during the budget process to adjust the 1%.
All we're doing is just starting the ball rolling, right?
That's exactly right.
Okay.
Because I think we can find that money.
I hope so, too.
I'm hopeful the way you are while I wish it were
Better news right this minute. I agree with mr. Scott
I'm very hopeful that as as the year goes on that we're able to adjust possibly that
supplemental piece later in the year, but
Without without any objection we'll move this to consent agenda
Okay, thank you very much
Okay, well you're not, Ms. Sedmon, been working yourself? Really busy. Now we're going to talk
about the substitute pay scale. Yes ma'am. So we're bringing a substitute pay scale for the
2016-17 school year. We review these schedules annually. Currently KDISD's substitute pay scale,
we find it to be very competitive with our neighboring districts. So the only recommendation
that we have is to change the substitute bus driver rate to match and be compatible to the regular bus driver rate that
Would give it an increase of from 1350 an hour to 1641 an hour
Mr. DeBrow
Mean this is great. I just want to say after all these presentations that a
Simmons a you and your team are doing an incredible job. Thank you. I've seen such
marked improvement since I first got on the board in HR and we've been through
some changes in that department over the past several years but I've talked to
people across the state holding getting and holding quality personnel is
competitive across the state of Texas their school districts every year that
start the year very short of the number of teachers that they need but you guys
do an incredible job not only getting us the best teachers but bus drivers coaches just across the
board so i just want to let you guys know that i appreciate all your hard work and i know it's not
easy because we're in a very competitive environment so uh let's keep up the good work
thank you and i'll pass those positive words to the rest of my staff i appreciate that and it's
you know we don't have the highest pay scale and that's well known to those thousands of people
who show up to our teacher fairs and our auxiliary fairs they want to be a part
of KDICD and you recruit very well and we're very proud of the people we have
here and just person after person who's made a presentation tonight we're just
so proud of the work that you do and and you know you're the reason that KDICD
is ranked number one in the Houston area you just are and we're we
don't take that for granted and we get it we get it the seven of us thank you
you so much any objection to moving this to consent I moved Thank You miss Edmund
thank you would you like to present the July budget amendment oh I'm sorry mr.
Scott has we have we passed the substitute pay scale was that it right
there I do have right here I'm gonna really cut this short because I know
that you have been provided a list of questions and inquiries that I've
submitted to Rebecca so what I want to say is that this is a matter that I take
very seriously I am and when I say that I am concerned it doesn't mean I've
concluded right I have no conclusion but I am concerned that our title one
campuses may not be getting the the respect that they deserve when it comes
to the distribution of substitute teachers I'm not blaming anyone for that
there are factors that are beyond the control of everyone but then there may
be things that can be done it may be that there is a budget allocation that
if there is a deficiency if there is a problem that might help offset that
believe it or not back in the 1980s Billy Reagan did a second mile program
that paid stipends for teachers to go to teach at title one campuses so anything
Anything that you can do to facilitate answering these questions, I would appreciate.
Yes, we received all five and I have three completed and we will have the other two tomorrow.
We needed to contact ASOP, which is our absence program.
They were actually closed for business today when we contacted them, but three of those
five questions are completed for you for tomorrow.
Right.
Thank you very much.
You're very welcome.
And board members, the questions that Mr. Scott submitted and the answers will be distributed
to all board members as is our practice so as soon as that's submitted to us
we'll forward it to everybody thank you very much
miss Butterfield we're going to discuss and consider future board approval of
the July 2016 budget amendments five points she gets settled in I want us to
to say you know less away from me so don't read on my butterfield unless we
rolled shoulders where she's fun joke but but I mentioned last week that
that sherry's been having to be out of the office a bunch lately and you know
I tell you it's there's a dozens there's hundreds thousands of dedicated
employees throughout the district and you're looking at one of them she's
She's been coming up here on Saturdays and in the evenings to kind of make up for it
and is the glue that holds our budget together.
So I appreciate Sherry very much.
Thank you for those words.
President Fox, trustees, Mr. Gunnell, the July budget amendments are here for your consideration.
Am I loud enough?
Okay.
There's a lot going on here with budget amendments tonight.
So let me break it down just a little bit and start with the general operating fund for the total
Impact fund balance as it relates to general fund approval of all these amendments will result in an increase of
nine million thirty thousand two hundred and forty dollars to the general fund fund balance
Why is that happening? There are a couple of there's one regular item going on here
related to the Katy Virtual Schools. So we have virtual schools and we have a
tuition for that. We are recognizing $200,000 of additional tuitions related
to additional student participation in that program and you'll see in the
expenditure side there is an offset to that for an additional $200,000 increase
in Katy Virtual School expenditures. So both sides increase and it's a it's a
a net neutral to to the district the rest of this revenue work and let me
just run through the statistics here's revenue is increasing fourteen million
eight hundred and fifty two thousand eighteen dollars predominantly due to
the work we do with estimated actuals in the final amended budget so we're
bringing this to you as the the first dart throw on the final amended budget
here in July this gets us closer to the target updated revenues projection make
up fourteen million six hundred and fifty two thousand and eighteen dollars
and the other two hundred thousand like I said as the Katy virtual school the
revenue changes are primarily
generated by enrollment data which has now been submitted through PEMS is also
a result of a reduction in property values and recognizing into the
revenue accounts the Senate bill 1 hold harmless related to the homestead
exemption the change from 15,000 to 25,000 so that's a home heart hold
hold harmless revenue increase on that.
I'm going to interject here.
I mentioned this last month.
Back in August of last year when we adopted the budget,
we were working on values that, you know,
Senate Bill 1 hadn't even passed the voters yet,
but they were values that already included a $10,000 additional homestead exemption.
So at the time that I was asked,
I thought that we would increase state revenues and lower local revenues.
That didn't need to happen.
And we found out around Christmas that, wow, they've already reduced it.
So this is good news.
That's the majority of that is the whole harmless kicking in to help us out with that new law.
And then the other is it goes back to Mr. Pawanka.
He was able to reduce our, in fact, I guess it was June the 9th we received word from the comptroller's office that he was able to file a successful audit on our behalf.
and what that means is as the tax year is over and the collections are complete
though they'll go back the tax offices will go back and offer a homestead
exemptions that go back years and there's a exemptions and various kind of
things that basically we refund taxes with and that reduces the value and he
goes back and kind of scrapes up those loaves and fishes and files a report so
So we lose a little bit of taxes, but we don't recognize it because it happens every year.
But by his knowledge and ability to make that filing, it really helps us out.
And we don't budget for them, but we've had them annually.
It's just some years they're big, some years they're not.
Continuing in the general operating fund,
We look at expenditure increases of a total of $4,686,696 to reflect $4,229,316 of estimates,
again related to our estimated actual process for the final amended budget.
This recognizes two additional work days in August that Mr. Smith spoke about in the budget presentation
as we talked about underspending and such.
This is to be accrued into the 15-16 year and then various other expenditure projections based on current spending patterns.
I mentioned the $200,000 for the Katy Virtual School,
and there is also an amendment increasing special education services $257,380.
With regard to the debt service fund, we're looking at the three budgeted funds.
So with regard to the debt service fund as we look at the final amended budget the decrease to the debt service fund balance
totals a hundred and forty nine thousand one hundred eighty nine dollars. This is revenues decreasing
four hundred sixty seven thousand three hundred nineteen dollars again based on the updated revenue projections
Related to tax collections and interest earnings and state funding other sources and uses are adjusted
invested $318,130 to reflect increased Interfund transfers. So again, the debt service fund balance decreases by $149,189.
Did you have any comments about debt service?
The food service fund balance increases $127,043.
Revenues are decreasing $802,806, and expenditures decrease $920,692,
again as a result of updating revenues and updating expenditure projections based on current trend.
MS.
Any questions?
Any objection to moving this to consent agenda?
Yes.
Okay.
Then it will not.
Okay.
Thank you very much.
Now we'll discuss and consider future Board approval of a contract renewal and extension
for the collection of delinquent taxes.
Mr. Smith, this item is yours as well.
Yes. Our current contract to collect our delinquent taxes expires on September the 30th of this year.
The administration is requesting your approval for our second of three extensions, one-year extensions.
We did our first one-year extension this time last year.
I think we actually did it in June of last year.
It was the first extension we had since the contract was awarded in 2012.
KDISD continues to maintain the last time we looked, we maintained one of the highest
collection rates in the area.
We've been, I've been with KDISD now, this will be my 14th school year that I'll be starting
and to my knowledge we've not had any problems with our current firm or none have been brought
to the administration's attention.
attention and I have been or my angle on it has been completely complete
satisfaction with the with their what they're doing for the district with so
with that said it'd be the district administration recommendation that the
Board of Trustees approve their one-year extension presented to you any questions
Mr. Scott. You received the information so let me just try to cut to the chase
here. Does Lineberger provide a summary status report of all
activity that even reasonably approximates the questions and the
categories that I submitted through the president to you? They do provide a
summary report the detail that we don't have but we have received a summary
copy summary information how often do they provide that when requested so you
have one that I would actually be able to look at well now you don't have to
bring it up yeah I think we can get one good week that is close to the to the
category field categories that I outlined we can try I mean we can look
for that information we'd be glad to I want to be real clear I am NOT asking
you or line Barger to produce a report that they are not routinely reporting I
am asking do they routinely report a status report that shows on an
account by account basis cost incurred under 5.0 15.02 that's consistent with
chapter 3 compensation do they do it quarterly do they do it semi-annually do
they do it annually is that something that is a matter of routine right now no
not a not quarterly so the only thing in the contract that I can see is provision
7.04 which gives the district the right to audit mm-hmm let me say this I'm
gonna make the board really happy here I think I don't have time to worry about
the line border contract for at least six months there are just too many
things that are vastly more important but 6.05 disturbs me greatly as one of
of the most disturbing passages I've read in a public service contract.
It bothers me greatly.
Next year, I may want to talk about that.
Okay?
Okay.
But one of the great side benefits of being elected to the board beyond doing what I'm
passionate about is the privilege to vote against the linebarger contract.
That's it.
That's as painful as it's going to get.
Thank you.
So, Mr. Scott, do you still want the report that they have?
I don't want them to produce it.
Okay.
But if they've got months, I would like to see the monthly invoices
because clearly they have to present an invoice to get paid.
But if they're not producing a status report,
I don't want you to waste your time or the time of your staff
doing something in this busy season.
It is either there or not there.
Please don't waste your time on that because beyond this,
I'm not going to visit this issue for a long time. The information that we get that we look at and we look at it
Monthly is the information from the two tax collection area from Harris County and Fort Bend County
And that's what we get as far as transactions with line burger. We really don't have any we don't cut them any checks
when they collect delinquent taxes
the counties pay the compensate them based on
On the statute and so those go from the counties to line burger
We do invoice Linebarger annually for the cost of collecting,
for the cost that Harris County and Fort Bend County charge us,
and they pay that to invoice or reimburse the district for that,
but we do not write them a check.
I understand that.
So let me just add this.
Most of this contract is not the part above the water.
It's not the iceberg above the water.
Most of this contract and the problems that I have with it are the iceberg under the water.
Some of the intricacies of how these contracts are administered
and the relationships between the counties and the software, for instance, and all of those issues.
But as I've said, you know, mission accomplished.
You've answered my question.
I just will move on, and I do not want you, I'm asking you,
I don't want you on because of me to go produce a report and
Waste your time doing that if you're not normally doing it
You got a whole heck of a lot to do and I don't want that to be one of them
Okay, okay, and that report you gave tonight was just outstanding
Thank you. Sorry. I was turned back when I'm mad. Sorry. I was pale
Thank you for the for the clarification. Mr. Scott. Mr. Mahal
Yeah, just one quick question. That reimbursement we get on the accounting cost, is that a perpetual thing or is it associated strictly with this? That had to do with us moving the tax office.
Yeah, that was when we went into the contract in 2012. We got out of the tax collection business and that was part of the contract in 2012. When we have to go and redo our contract from the start, whether that's there or not.
It'll be a negotiated item, but these extensions include that continuing is that yes, okay? Thank you
Okay 5.8
Madam president yes, was that one to move to consent or are we holding that one off?
Just asking any objection to moving this to consent agenda
I would prefer not to have to abstain on the entire consent agenda
So can you just put that one for a line item? I'm not happy my debate is over
I mean the issues of the end okay, but I don't want to have to vote for it
Okay in five point seven you do not want move to the consent agenda the budget amendments
But there won't be any questions on board night
I'm with I just want to clarify you want to hold off five point seven the budget amendments and
The content delinquent taxes contract. I'm sorry Rebecca. I apologize five point seven look at your agenda five point seven
Approval of the July 2016 no, that's a concern. Okay, you said no
So let me just you're fine with that one going to consent the budget of everything is consent, but five point eight got it. Okay?
Duly noted mrs. Noack. Thank you. Okay five point eight will not go to consent but budget amendments. Well, thank you
Okay, five point nine discussing consider future board approval of the notice of the public meeting to discuss the budget and proposed tax rate
Mr. Smith, I think you showed us a slide about that earlier this evening.
I showed you a slide about that earlier, and the summary and the meat and potatoes of it,
there is a part where it asks us to fill in the proposed tax rates,
and last year we published that at $1.1266.40.
We ended up adopting a tax rate of $0.39 or lower in the tax rate.
We are proposing to publish $1.1266.39 again.
That is what the budget is built off of.
MS.
Any objection to moving this to consent?
Oh, do anybody have questions about the proposed?
Any objection to moving it to consent?
Okay.
So moved.
MS.
5.10, discuss and consider future Board approval of grant ratifications.
Sherry, Mrs. Butterfield.
MS.
Thank you.
Thank you. Again, tonight there's only one grant for ratification.
Bring that close to your mic. Just a little closer. Thank you.
There's only one grant for ratification tonight, $1,058,683.
This is related to Project TIEC, which provides intervention services for children from birth to 3 years old.
One question if I might. Do we know how many children it services for this grant by any account?
Let's see. Do I have that on me? 282. Is that right?
Thanks.
Thank you very much. Any objection to moving this grant ratification to consent agenda?
so moved okay five point eleven thank you very much so glad you have the job
you have and I have the job saying okay five point eleven trustees this is for
us discuss and consider future board approval of the delegate and an
alternate delegate to the 2016 Texas Association of school boards delegate
Assembly this delegate assembly is in September the assembly the one that we
need a delegate for is September 24th it's here in Houston at the George R
Brown Convention Center and we're really just looking for people willing to do
the delegate simply miss fox mr um if she would accept it i'd like to see miss doyle
um do this i think it'd be a wonderful experience for mrs doyle have you had the pleasure of doing
this yet we've all had the pleasure just saying would you like to okay so just in case mrs doyle
is unavailable would who would like to be alternate just go right ahead of it
madam president I think mr. Mohoski would make a wonderful alternate I yeah
maybe so but see I I was unable to attend us all I this year so I really
need to focus on getting my continuing education credits as long as I've
know that you're going to be there and I'm only in an alternate role I'll be
anyone else just really feeling the burning desire to be an alternate
delegate okay mrs. Doyle and mr. Mahalski we will you know you just
just slipped past it just because Mr. Mahalski.
I'm glad I was deaf on that side.
I am happy to.
I'd be happy to pass it down to that end of the.
Oh, that would be sweet dessert if I'm an alternate to Tashby.
That would be fun.
Madam President, would you entertain a motion,
and that way we don't have to hear it next week?
That would be awesome.
Mr. Griffin, go right ahead.
Madam President, I move that the Board of Trustees approves Ashley, no, I'm sorry, Courtney Dwell as the official 80 Independent School District voting delegate for the 2016 TASB Delegate Assembly in Houston, Texas on September 24, 2016 and approve Brian Mahalski as the alternate delegate.
Second.
Second.
Okay.
So now that we've had the motion read, we can move it to consent agenda and that's
all we need.
Do we need a second?
No.
Okay.
Thank you very much.
This item will move to consent agenda.
It will be voted next week.
Thank you very much.
Okay.
5.12, discuss and consider future Board endorsement of a nominated individual for the Texas Association
of school boards director vacancy of region for position a vacants
so this is where mr. Adams always came in so handy because being a director for
region four he knew these people way better than we did and it looks like we
have are there two nominations is that right so we don't make sure we can only
name one is anyone have a recommendation I do okay but I do that in the form of a
motion so that this please read the motion and then it will move it to
consider um okay i move that the board of trustees endorses the candidacy of
georgianne reitmeyer to fill the vacancy in the board position for region 4
position a on the taz people
board okay so our board will recommend georgianne right Meyer or region for
position a on the task we board of directors and we'll move this consent
agenda vote next week okay okay our number six is discussion it's time to
discuss the naming of the student activity facility the second stadium we
have at this on it's just kind of a standing discussion item until we're
kind of move on to the next stage and we have the naming survey currently
ongoing it ends I believe tomorrow mr. canal how's that going thanks madam
president yeah I looked at the statistics this morning and the number
of surveys that have been completed at least at 730 this morning was about
4,500 surveys I won't go into detail what the breakout is at this point I'll
I'll save that until after the survey results end.
The other thing that I'd like to just mention is that taking a look at our timeline,
we're on track to bring something to the board by the end of October.
So depending how it goes in the survey and what the board decides to do next Monday,
that week we can go ahead and contact the committee members and start
scheduling meetings okay great we certainly want to encourage everybody to
still take the survey 4500 is pretty pretty decent and the survey has been
sent via email invitation and it's also available on the website so I'm looking
Looking at it right now, you can get it from the KDISD website.
And my understanding is that we did push out 66,000 email invitations for people to complete the survey.
Okay.
And have the majority of the responses been from the emails or people going to the website?
Good question.
A little less than 1,000 have been on the website, and just under 4,000 have been through the push surveys.
Great. Thank you. And that ends at close of business or midnight?
Close of business tomorrow-ish? Midnight? Midnight tomorrow. Okay.
So, Mr. Scott?
The team that is exploring naming rights is still aggressively doing whatever they're doing?
No, sir, we have not.
The survey will tell our board what we, whether or not, if the community, what the community wants.
If they want us to pursue the selling of the naming rights, we'll convene the committee.
There is no committee at this point.
We have an idea of an outline of a committee, but it depends on what this community would like us to do.
If they say name it, we'll take a different direction.
But we'll see what that result is.
And, Mr. Gannell, at the end of business tomorrow, or I guess at midnight tomorrow, you'll have all that data.
Would you be able to send that to us in our packet on Thursdays as we get the agenda so
that we can review it and be prepared to discuss and give direction next Monday?
We'll give the district direction on what we want them to do based on the information
we get back from our community.
Right.
Is it the intent that a simple majority will decide what this board does or will this board
make?
We will discuss it next Monday and make our decisions.
So.
So...
Well, let me just say at this point then, an unscientific, targeted poll...
Let's...
...should be...
Well, I mean, it's still on the agenda, so I'm just going to say, I don't mind community
surveys, but if we're going to make public policy on community surveys, there ought to
be at least a nano ounce of science behind it.
Well, let's see what the survey says, Mr. Scott, and your opinions and comments will
will be appropriate next week when we see, you know, and we'll be able to see.
We'll be able to see the comments.
We'll be able to see the numbers.
We'll be able to see the percentages.
We'll get all of those questions that are on the survey.
We'll get the information on all of that given to us on Thursday.
So we have the whole weekend to look at it before we come on Monday.
And on Monday we'll discuss it here as a discussion, possibly discussion and action item.
And then we can give the district direction on what we want to see.
And you are exactly right.
All right, the seven of us will make the decision.
And our job is to represent our community and our community's values.
They've put us here.
And so we'll look at all the information and make the best decision that we believe our community wants us to.
I'm agreeable to that, but I do will state again that if we're going to be persuaded by a non-scientific,
informal poll that would not pass any test of polling that I'm aware of,
then that's going to be an unusual situation.
Madam President.
Mr. Griffin.
I know the bond committee did a phenomenal job working with us
and the bond oversight committee.
They went into, I think, a discussion on the naming rights.
can I don't think they need to be present the board but can we at least
solicit bond oversight committee and say hey y'all worked so hard on this what
were the assumptions is there anything that that way we'll have what you know
our dedicated group of individuals their desires were that way we can look at
that and then what the community wants and then that'll help us as a board make
that decision also because I would hate to put all the work that our bond
committee did if they had a desire for that but the bond committee wasn't
charged with whether oh but they had some discussions some heavy discussions
on that I believe we asked possibly worse I understand that except that
they're not going to meet between now and Monday maybe we could call the
president of it and say hey now I'm asking us from some background
information they might they might come back to us and say we didn't talk about
that at all but then again if they did I would just hate to discount a avenue and
disappoint some people if they possibly had some input for us I'm wondering if I
might I'll ask you but it also might be dr. grooms with the bond committee
members included in this in the survey like they were sent the survey so they
had an opportunity each of them instead of just the bond review committee is
about 40 ish people I'm asking is there say let's say you see Carmichael bond
review committee is what he's asking us for and there's combined committee or
bond review I would just say since they're made up of most of the same
people let's just say as mr. Carmichael and say do y'all have when y'all did
this was there any assumptions was there anything that y'all were looking for I'm
not asking for a detailed report just to ask him to see if they had some
background information that we as a board you've either forgot or didn't
know about because I didn't go to their meetings we haven't asked them to do any
of this but yet when we had that one change on the second build out we then
sent it right back to them so all I'm asking is let's keep those people that
work so hard for us in the loop in case they have some specific information that
that we can give a little weighted information to.
Well, you know I think the world of them too.
And I was probably the bee in the bonnet
that sent something back to them.
And we called a special meeting and all of that.
So are you asking to call a special meeting of the bond
review committee?
No, no, no.
Just call Mr. Carmichael and kind of get his story.
Just ask him.
And if his work, whatever, if he says, man,
we didn't discuss that and we don't care,
then we as a board know that the bond review committee
has been asked and we move on okay that's all I'm gonna would you be able
to do that contact mr. Michael just kind of get a non-scientific I can and in the
Charter bond review committee is listed as one of the one of the members that's
right mr. Cromick will be on the on the committee probably oh it is designee or
somebody okay awesome any other questions about that okay we'll get that
information over the weekend so I'm guessing because there was room for
input in several places on the survey we're going to have a lot of reading to
do that's just my guess so if you look at that before Monday and then we'll try
to be ready to give direction I hope is that we'll be able to give direction
next Monday to our to our district on foot which way to go from there so we do not have any
speakers this evening for our open forum though there being no or our next board meeting is
Monday July 25 2016 we might not all be dressed and you know what you know matching attire at
that meeting coral and gray for our board picture just wait till you see it
it's coming coming soon so there being no further business this meeting is
adjourned at 9 0 6 p.m.
Official documents
Motions and votes
Recorded actions
MOTION 001 · AGENDA 3.1
PassedIt is recommended that the Board of Trustees approves the settlement in Cause No. 4:14-cv-02441; USOR Site PRP Group v. A&M contractors, et al.
7 Yes · 0 No
| Trustee | Vote |
|---|---|
| ashley-vann | Yes |
| bryan-michalsky | Yes |
| charles-griffin | Yes |
| courtney-doyle | Yes |
| george-scott | Yes |
| henry-dibrell | Yes |
| rebecca-fox | Yes |
MOTION 002 · AGENDA 3.2
PassedIt is recommended that the Board of Trustees approves the personnel report as recommended by the superintendent in Closed Meeting.
7 Yes · 0 No
| Trustee | Vote |
|---|---|
| ashley-vann | Yes |
| bryan-michalsky | Yes |
| charles-griffin | Yes |
| courtney-doyle | Yes |
| george-scott | Yes |
| henry-dibrell | Yes |
| rebecca-fox | Yes |