2018-19 TAX RATE HEARING August 20, 2018 Providing the resources - - PowerPoint PPT Presentation

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2018 19 tax rate hearing
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2018-19 TAX RATE HEARING August 20, 2018 Providing the resources - - PowerPoint PPT Presentation

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Where all students connect, learn, grow and succeed. 2018-19 TAX RATE HEARING August 20, 2018 Providing the resources required to accomplish our mission. AGENDA Our Mission and Strategies General (Operating) Fund Tax Ratification

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Where all students connect, learn, grow and succeed.

2018-19 TAX RATE HEARING

August 20, 2018

Providing the resources required to accomplish our mission.

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Where all students connect, learn, grow and succeed. 2

  • Our Mission and Strategies
  • General (Operating) Fund
  • Tax Ratification Election (TRE)
  • Next Steps

AGENDA

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RISD – SUCCESS FOR ALL STUDENTS BALANCING FINANCIAL RESPONSIBILTY

  • All RISD students graduate

earning admission to the college or university of their choice

  • or –
  • Enter the workforce in a

career that pays a living wage

OUR GOAL

  • One of seven Texas Financial

Honor Roll Districts

  • Superior Rating from Texas

State Comptroller – 11 years running

  • AA+ / Aaa bond rating

FINANCIAL AWARDS

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SUCCESS FOR ALL STUDENTS…

We believe that success for all students is a product of:

  • Great teachers
  • Small class sizes
  • Safe and enriching

environments

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WHAT BROUGHT US TO THIS POINT?

  • RISD state funding has been declining.
  • Operating expenses have increased over the last 5 years.
  • Salaries and compensation
  • Additional classroom and special ed teachers
  • Innovative academic programs
  • Cost of operating neighborhood schools
  • 2017-18 budget had a deficit of $6.3 million.
  • Deficit at $1.04 M&O tax rate will increase over the next five years as state

funding continues to decline.

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OUR MISSION & STRATEGIES

The mission of RISD is to ensure that ALL connect, learn, grow and succeed through relevant and personalized learning experiences distinguished by

  • a welcoming and accepting climate
  • a safe, innovative, and adaptive environment
  • a supportive, collaborative, and invested

culture among students, staff, families, and community

MISSION

  • We will ensure that we have diverse and engaging programs

and learning opportunities to meet the unique needs of all our students.

  • We will guarantee that all students will perform at or above

grade level.

  • We will recruit, retain, and reward quality personnel.
  • We will ensure that ALL families, businesses, and community

partners are fully engaged in the mission of our district.

  • We will actively pursue creative funding sources and

responsibly manage current resources to support our mission.

  • We will ensure that our facilities and infrastructure adapt to

support our mission.

STRATEGIES

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Community Recommendation: “RISD Needs More Funding For Schools”

Description Neighboring Districts Richardson ISD Operating Spending per Student $8,155 $7,717 Operating Tax Rate $1.10 $1.04 English Language Learners (ELL) 20.2% 25.8% Economically Disadvantaged 49.1% 54.0% Special Education Students 9.3% 11.0%

Strategic Planning Finance Team Conclusions/Recommendations

  • Engaged 300+ community members to develop a five-year strategic plan.
  • Strategic Plan Finance Team charged to analyze district finances,

conduct benchmark comparisons and make recommendations.

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Action Team Conclusions

  • Our current financial structure is inadequate to accomplish the district’s mission.
  • While we need to ensure our operations are as efficient as possible, we cannot solve our financial

issues through cost-cutting.

  • We are currently spending over 5% less per student than our North TX and statewide peers, despite having students

with greater needs [ELL +30% / ED +15% / SPED +16%].

  • This disparity is not caused by investment decisions, but lack of funds; our M&O tax rate is $1.04 compared to average
  • f $1.12 for our North TX neighbors (before homestead exemption).
  • Without some change in our revenue stream, our fund balance will be gone by 2021.
  • We have little control over legislative outcomes regarding school finance; we cannot count on

additional funding in the near term.

  • We need to take immediate actions that will increase sustainable sources of revenue in
  • rder to accomplish the district’s mission.
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General (Operating) Fund

9

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General (Operating ) Fund Before and After

REVISED FOR ADOPTED CERTIFED VALUE FY 18-19 FY 18-19 CHANGE Tax Revenue 249,290,336 $ 251,560,693 $ 2,270,356 $ State Revenue 67,966,325 $ 67,795,051 $ (171,274) $ Other Revenue 30,878,931 $ 30,878,931 $

  • $

Total Revenue 348,135,592 $ 350,234,675 $ 2,099,082 $ Adopted Expenditures (333,449,313) $ (333,449,313) $

  • $

Potential Expense Increase

  • $

(1,250,000) $ 1,250,000 $ Recapture (5,869,577) $ (5,940,408) $ 70,831 $ Other Uses (1,000,000) $ (1,000,000) $

  • $

Change in Fund Balance 7,816,702 $ 8,594,954 $ 778,251 $ Unassigned Fund Balance as a % of Expenditures 24.5% 25.0%

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2018-19 Expenditure Summary

GENERAL FUND DESCRIPTION RECURRING RECURRING STRATEGIC PLAN TOTAL Current Commitments Additional Staff Allocations 1,056,413 $

  • $

1,056,413 $ Compensation 2.5% Raise; Market Adjustment

  • $

6,670,000 $ 6,670,000 $ Instruction Special Student Services Staffing 4,301,539 $

  • $

4,301,539 $ Safety and Security Audit; Additional SRO's; Director 427,546 $ 129,200 $ 556,746 $ Facilities Facilities Department Supplies 223,500 $

  • $

223,500 $ Transportation Bus and Camera Replacement

  • $
  • $
  • $

Expenditure Reductions Reductions and Eliminations (600,000) $

  • $

(600,000) $ Total Expenditure Increase 5,408,998 $ 6,799,200 $ 12,208,198 $ Transfer to Enhancement Fund 1,000,000 $ 1,000,000 $ Recapture 5,869,577 $ 5,869,577 $ 17-18 Adopted Expenditures 321,241,115 $ 18-19 Adopted Expenditures 340,318,890 $

Compensation and other increases contingent on passage of Tax Ratification Election

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$1.17 M&O Tax Rate Sustainably Funds Operations

One-time expenses $1,250,000 $4,750,000 $4,000,000 $2,250,000 $3,500,000 $285,000,000 $295,000,000 $305,000,000 $315,000,000 $325,000,000 $335,000,000 $345,000,000 $355,000,000 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 Expenses Revenue at $1.17 Revenue at $1.14 Revenue at $1.10 Revenue at $1.04

17-18 Operating Expenses $323 million

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TAX RATE HISTORY

$1.04 $0.35 $1.60 $1.63 $1.65 $1.67 $1.80 $1.81 $1.82 $1.82 $1.82 $1.63 $1.34 $1.34 $1.34 $1.34 $1.34 $1.34 $1.34 $1.34 $1.34 $1.39 $1.39 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

OPERATING DEBT SERVICE

HB1: Tax Rate Compression

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Impact of Tax Increase on Average Residence

2017-18 2018-19 Last Year This Year Increase Taxes Due to 2018 DCAD Value Increase 2,772.59 $ 3,265.44 $ 492.85 $ Tax Rate Increase 0.13000 $ Taxes Due to Recommended Tax Rate Increase of $0.13 305.39 $ 305.39 $ 798.24 $ Note: Difference of 12 cents from newspaper notice of public hearing increase of $798.12 due to rounding.

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Tax Ratification Election (TRE)

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The Tax Rate consists of two components (per $100 of property value)

WHAT IS A TAX RATIFICATION ELECTION (TRE)?

$1.39

Maintenance & Operations Tax Bond Tax Total Tax

$1.04 $0.35

  • Costs of infrastructure: new

facilities, renovations, etc.

  • Increased $0.05 in 2016
  • Sustainable revenue

required to operate schools

  • Unchanged since 2007
  • Lowest rate since 1991
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“I am paying more school property taxes. Doesn’t that mean the school district has more money?”

As School Property Taxes Increase

RISD gets property tax increase dollars ONE time…THEN

State Funding decreases the next year

$

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WE Are Paying A Bigger Share of Funding for our Schools

63% 67% 71% 75% 79% 82% 84% 85% 37% 33% 29% 25% 21% 18% 16% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2017 2018 2019 2020 2021 2022 2023

Local Share of Funding State Share of Funding

When property values go up, state aid goes down. The only way to get more revenue per student is to increase the tax rate or hope for legislative change.

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2017 TAX RATES – NORTH TEXAS PEERS

DISTRICT M&O I&S Total WYLIE ISD (COLLIN COUNTY) $1.17 $0.47 $1.64 MCKINNEY ISD $1.17 $0.45 $1.62 GRAND PRAIRIE ISD $1.17 $0.43 $1.60 ALLEN ISD $1.14 $0.43 $1.57 MANSFIELD ISD $1.04 $0.50 $1.54 FRISCO ISD $1.04 $0.42 $1.46 GARLAND ISD $1.04 $0.42 $1.46 MESQUITE ISD $1.04 $0.42 $1.46 PLANO ISD $1.17 $0.27 $1.44 ROCKWALL ISD $1.04 $0.40 $1.44 IRVING ISD $1.17 $0.26 $1.43 RICHARDSON ISD $1.04 $0.35 $1.39 CARROLLTON-FARMERS BRANCH ISD $1.17 $0.21 $1.38 ARLINGTON ISD $1.04 $0.33 $1.37 DALLAS ISD $1.04 $0.24 $1.28

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Sample Ballot Language

Approving the ad valorem tax rate of $1.52 per $100 valuation in Richardson Independent School District for the current year, a rate that is $0.13 higher per $100 valuation than the school district rollback tax rate, for the purpose of generating additional local and state revenue for district maintenance and operations.

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Next Steps

  • August 20, 2018 – Conduct public hearing on tax rate, adopt new tax rate and adopt

amended and restated order calling tax ratification election

  • August 21, 2018 – Provide notice of election to county clerk and voter registrar (not

later than 60th day before election)

  • October 1, 2018 – Board approves tax roll
  • November 6, 2018 – Election day (90th day is November 18, 2018) must use General

Election day since it falls within range of dates

  • November 12, 2018 – Canvass election results (3 to 11 days after election), Board

approves tax roll

  • November 13, 2018 – Mail tax statements (could mail earlier depending on election

results)