Board of Trustees Budget Workshop FY2021 3/12/20 Begin with - - PowerPoint PPT Presentation

Budget Workshop FY2021 3/12/20 Board of Trustees

Budget Workshop Agenda

I. Overview II. Budget Parameters Discussion

• III. Preliminary Budget Discussion

IV. Staffing Process V. HB 3 Update Tax Compression

• VI. Bond Capacity Update
• VII. Tax Rate Consideration
• VIII. Next Steps

Budget Planning Calendar

• Dec. 16, 2019 Present planning calendar at Board Meeting
• Jan. 2020 Allocations and worksheets distributed to campuses and departments
• Jan. - Feb. 2020 Budget training - Campuses and Departments

March 2020 Review staffing allocations and prepare salary estimates March 12,2020 Board Budget Workshop March 13, 2020 Campus and department budget request due to Business Services

• Mar. - Apr. 2020 Reconciliation of proposed campus and departmental budgets

Budget Planning Calendar

• Apr. 20, 27 2020 Budget Planning Update for Board of Trustees
• Apr. 30, 2020. Receive Certified Estimated Tax Values from HCAD and TCAD

April - May 2020 Work Sessions with Executive Cabinet May 20, 2020 Budget Planning Update for Board of Trustees June 11,2020 Publish “Notice of Public Meeting to Discuss Budget and Proposed Tax Rate” and post summary of proposed budget on district website June 22, 2020 Publish hearing on the 2020-2021 proposed budget; Board of Trustees adopts the 2020-21 budget and approves final 2019-20 budget amendment July 25,2020 Receive Certified Tax Values from HCAD and TCAD August 24,2020 Board of Trustees approve Certified Appraisal Roll for 2020

• Aug. - Sept. 2020 Board of Trustees adopts tax rate for 2020

VILLAGE: GOAL 1 Support the vision and mission of the district by building a culture where all members feel welcome and connected. OPERATIONS: GOAL 2 Support the vision and mission of the district by collaboratively providing effective, efficient, and innovative operations in a safe environment. LIFE CHANGERS: GOAL 3 Support the vision and mission of the district by placing a Life Changer in every position. PERSONAL LEARNING: GOAL 4 Support the vision and mission of the district by creating and implementing Personal Learning Plans (PLP) that maximize each student's potential. CLOSING THE GAP Narrow the achievement gap between students who are identified in sub groups (EL, Economically Disadvantaged, Special Education) and students who are not identified in a sub group as measured on the STAAR assessments. DSISD will surpass state target goals for each subgroup. CONTINUED PK-12 WORK ON “GUARANTEED VIABLE CURRICULUM”

Strategic Goals

Budget Workshop Agenda

I. Overview II. Budget Parameters Discussion

• III. Preliminary Budget Discussion

IV. Staffing Process V. HB 3 Update Tax Compression

• VI. Bond Capacity Update
• VII. Tax Rate Consideration
• VIII. Next Steps

Initial Parameters

• Student Enrollment Estimates
• 7,696 for staffing and 7,542 for funding purposes
• An Average Daily Attendance rate of 95.0%
• A 10.00% increase in local property values
• A 4.01% increase in state property values
• An inflationary increase of 1.20% on non-payroll costs

Proposed Budget Parameters for Developing the 2020-2021

2000 4000 6000 8000 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

7,696 7,210 6,873 6,450 6,008 5,619 5,421 5,107

Historic Student Enrollment

7,542

0.94 0.948 0.955 0.963 0.97 2012 2013 2014 2015 2016 2017 2018 2019 2020 95.84% 95.27% 95.57% 95.94% 96.06% 96% 96.3% 96.3% 96.6%

Historic Student Attendance

Thru 2/17/20

96% 8 yr. Avg.

95%

Taxable Appraised Values

1,500,000,000 3,000,000,000 4,500,000,000 6,000,000,000 2012 2013 2014 2015 2016 2017 2018 2019

5,690,427,498 5,016,498,935 4,527,913,565 4,037,308,502 3,606,264,883 3,179,759,065 2,821,576,208 2,652,816,758

13.43% 10.79% 12.15% 11.54%

• 7yr. Avg.

10%

Initial Parameters

• Student enrollment estimates
• 7,696 for staffing and 7,542 for funding purposes
• An average daily attendance rate of 95.0%
• A 10.00% increase in local property values
• A 4.01% increase in state property values
• An inflationary increase of 1.20% on non-payroll costs

Employee Parameters

• Employee cost-of-living increase of 2.00%
• An increase in staff FTEs of 40
• Maintain the $300 monthly contribution to health insurance
• Maintain the $75 monthly contribution to a Health Savings Account/Health

Reimbursement Account for employees taking the TRS ActiveCare insurance

Proposed Budget Parameters for Developing the 2020-2021

Tax Rate Decisions

• Based on a 10.00% increase in local property values,

the M&O tax rate would drop to $1.0049

• The I&S tax rate is to be determined

Historic Salary Increases

Annual Increase History for Compensation and Health Benefits Contributions

School Year % Increase Other Unique Compensation Medical Premium Contributions HSA Contributions 2020-2021 2019-2020 5% Teachers with 5+ years 4% of Midpoint - all

• thers

Retention incentive ($100 per year) $300 per month $75 per month 2018-2019 3% of Midpoint Additional individual pay shifts per TASB review and reccommendation $275 per month $50 per month 2017-2018 2% One-Time Lump Sum, All Staff: greater of $500 or 1% of Midpoint $275 per month $50 per month 2016-2017 2% $225 per month $43 per month 2015-2016 2% $225 per month $43 per month

Historic Campus Staffing

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enrollment - Snapshot 4,581 4,783 5,107 5,421 5,619 6,008 6,450 6,873 7,210 7,696 Total Campus FTEs 369.77 361.70 396.45 435.01 482.54 499.01 575.21 624.09 659.10 686.10 Students per Campus FTE 12.4 13.2 12.9 12.5 11.6 12.0 11.2 11.0 10.9 11.2 Teacher FTEs 278.16 271.35 290.81 320.77 345.16 358.20 412.84 450.10 476.80 494.8 Students per Teacher FTEs 16.5 17.6 17.6 16.9 16.3 16.8 15.6 15.3 15.1 15.5

Projection

Initial Parameters

• Student enrollment estimates
• 7,696 for staffing and 7,542 for funding purposes
• An average daily attendance rate of 95.0%
• A 10.00% increase in local property values
• A 4.01% increase in state property values
• An inflationary increase of 1.20% on non-payroll costs

Employee Parameters

• Employee cost-of-living increase of 2.00%
• An increase in staff FTEs of 35
• Maintain the $300 monthly contribution to health insurance
• Maintain the $75 monthly contribution to a Health Savings Account/Health

Reimbursement Account for employees taking the TRS ActiveCare insurance

Proposed Parameters for Developing the 2020-2021 Budget

Tax Rate

• Based on a 10.00% increase in local property values,

the M&O tax rate would drop to $1.0049

• The I&S tax rate is To Be Determined

Fund Balance

• Maintain a fund balance between 4 and 7 months

annual expenditures

Historic Fund Balance

Projections

10,000,000 20,000,000 30,000,000 40,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021

40,000,000 38,500,000 36,635,702 33,053,959 31,323,869 24,624,948 23,581,013 21,427,854 20,664,688

21,666,667 20,666,667 19,735,282 19,579,315 16,935,733 15,107,704 12,938,936 11,721,865 10,645,209 10,645,209 11,721,865 12,938,936 15,107,704 16,935,733 19,579,315 19,735,282 20,666,667 21,666,667

7 months

Budget Workshop Agenda

I. Overview II. Budget Parameters Discussion

• III. Preliminary Budget Discussion

IV. Staffing Process V. HB 3 Update Tax Compression

• VI. Bond Capacity Update
• VII. Tax Rate Consideration
• VIII. Next Steps

Dripping Springs ISD Budget Projections

2017-2018 2018-2019 2019-2020 2019-2020 Revenues Actual - Audited Actual - Audited Revised Budget Projections as of 2/29/20 % of Revenues Local Sources $53,153,558 $59,447,366 $58,642,500 $60,283,723 87.84% State Program Revenues 6,759,886 8,950,586 7,017,075 7,110,183 10.36% Federal Program Revenues 200,257 166,642 1,158,100 1,133,144 1.65% Other Revenues - Transfers In 457,683 2,437,195 100,000 100,000 0.15% Total Gross Revenues $60,571,384 $71,001,789 $66,917,675 $68,627,050 100.00% Less Recapture (5,385,781) (8,214,196) (2,581,022) (2,409,712) Total Net Revenues $55,185,603 $62,787,593 $64,336,653 $66,217,338 Expenditures % of Exp Payroll $42,940,556 $47,580,564 $53,683,301 $53,683,301 83.77% Contracted Services 4,216,129 4,210,165 5,226,239 5,226,239 8.15% Recapture 5,385,781 8,214,196 2,581,022 2,409,712 3.76% Supplies and Materials 2,967,219 3,619,332 2,626,852 2,626,852 4.10% Other Operating 911,023 1,032,699 1,166,064 1,166,064 1.82% Loans/Lease Payments 1,631,660 1,817,336 1,133,667 1,133,667 1.77% Capital Outlay 685,576 853,101 156,832 156,832 0.24% Other Expenses - Transfers Out 103,350 92,650 95,000 95,000 0.15% Total Gross Expenditures $58,841,294 $67,420,043 $66,668,977 $66,497,667 103.76% Less Recapture (5,385,781) (8,214,196) (2,581,022) (2,409,712)

• 3.76%

Total Net Expenditures $53,455,513 $59,205,847 $64,087,955 $64,087,955 100.00% Results from Operations $1,730,090 $3,581,746 $248,698 $2,129,383 Beginning Fund Balance $31,323,869 $33,053,959 $36,635,702 Ending Fund Balance/Equity $33,053,959 $36,635,702 $38,765,085 Audited Audited Projected Months of Fund Balance (Recapture) 6.74 6.52 7.00 Months of Fund Balance (No Recapture) 7.42 7.43 7.26

7

PIC Code Program Projected State Allotment % to spend Required to Spend Spent as of 1/31 2019-2020 Budget % Spent Projected PIC 99 Allocation % Projected Excess or Shortage vs Budget Projected Excess or Shortage vs Actual 22 CTE 3,596,828 $ 55% 1,978,255 $ 967,869 $ 1,537,497 $ 27% 14% (225,509) $ (86,763) $ 23 & 33 Sped 5,058,463 $ 55% 2,782,155 $ 4,722,114 $ 7,772,097 $ 93% 24% 6,855,246 $ 7,255,711 $ 24, 26, 27, 28, 29, 30 & 34 State Comp Ed $ 950,565 55% $ 522,811 $ 542,549 $ 1,229,814 57% 17% 916,072 $ 565,388 $ 25 & 35 Bilingual 195,539 $ 55% 107,546 $ 180,503 $ 191,703 $ 92% 18% 118,663 $ 257,585 $ 36 Early Education 92,400 $ 100% 92,400 $ 52,203 $

• $

56% 0% (92,400) $ (2,909) $ 37 Dyslexia 260,568 $ 100% 260,568 $ 189,431 $

• $

73% 0% (260,568) $ 64,171 $ 38 CCMR 547,000 $ 55% 300,850 $ 221,867 $

• $

41% 0% (300,850) $ 79,493 $

State Program Intent Code Allotments - 2019-2020 Projections Thru January, 2020 Completed Months in Current Fiscal Year:

Monthly Allotment Spending Update

Multi-Year Financial Review & Projections Summary

21

Projections Actual Actual Actual Budgeted As of Jan, 2020 2016-2017 2017-2018 2018-2019 2019-2020 2019-2020 2020-2021 2021-2022 2022-2023

Funding Data Elements

Enrollment (PASA Projections) 6008 6450 6873 7306 7206

6.8%

7696

6.4%

8189

6.9%

8754

Non-State Funded Pre-K & Early Education Students

(144) (167) (191) (213) (201) (198) (211) (225) State Formula Enrollment for Funding (FT FTEs) 5864 6283 6682 7093 7005 7498 7978 8528 Funded Enrollment at 98% Projections 6951 7005 7348 7818 8358 Attendance Rate 95.94% 95.57% 95.27% 94.50% 95.00% 94.50% 94.50% 94.50% Average Daily Attendance (ADA) for Funding 5633.45 6016.30 6363.61 6569 6655 6944 7388 7898 Weighted Average Daily Attendance (WADA) 6528.06 6983.24 7439.30 7772.88 8084.47 8419.96 8918.47 9486.04 Appraised Property Values (Net Taxable Before Freeze)

$ 4,037,308,502 $ 4,527,913,565 $ 5,030,322,385 $ 5,473,566,770 $ 5,698,893,486 $ 6,268,782,835 $ 6,895,661,118 $ 7,585,227,230

Appraised Property Values Growth % 11.96% 12.15% 11.10% 8.81% 13.29% 10.00% 10.00% 10.00% M&O Tax Rate (2019-20 and beyond based on HB3) $ 1.17 $ 1.17 $ 1.17 $ 1.0683 $ 1.0683 $ 1.0049 $ 0.9512 $ 0.9395 I&S Tax Rate 0.35 0.35 0.35 0.35 0.35 Total Tax Rate $ 1.52 $ 1.52 $ 1.52 $ 1.4183 $ 1.4183 Projections / Proposed

Dripping Springs ISD Multi-Year Financial Review and Projections Summary As of January, 2020 Revenues Based on 98% of Projected Enrollment

22

Financial Results/Projections from Operations

Revenues

Local - Tax Collections, Penalties & Interest $ 42,748,660 $ 51,306,720 $ 57,166,672 $ 56,850,000 $ 58,350,000 $ 59,350,000 $ 61,850,000 $ 67,350,000 Other Local Revenues 4,456,829 1,846,910 2,280,694 1,792,500 1,933,723 1,692,500 1,727,500 1,727,500 State Funding (Includes NIFA in FY2022) 6,649,859 6,759,886 8,950,585 6,263,995 7,110,183 7,931,100 7,501,464 8,763,032 Federal Funding 202,990 200,257 166,642 558,100 1,133,144 550,000 550,000 550,000 Other Sources 3,073,438 - 2,437,195 100,000 100,000 100,000 100,000 125,000 Total Revenues $ 57,131,776 $ 60,113,773 $ 71,001,788 $ 65,564,595 $ 68,627,050 $ 69,623,600 $ 71,728,964 $ 78,515,532 Recapture (2,916,983) (5,385,781) (8,214,196) (3,110,703) (2,409,712) (1,919,966) (1,372,994) (3,402,758) Net Revenues Less Recapture $ 54,214,793 $ 54,727,992 $ 62,787,592 $ 62,453,892 $ 66,217,338 $ 67,703,634 $ 70,355,970 $ 75,112,774

Payroll Expenditures / Calculations

• Payroll - Existing Positions / No Increase

$ 36,826,635 $ 42,534,668 $ 47,580,564 $ 52,968,059 $ 53,683,301 $ 53,683,301 $ 56,972,446 $ 61,262,557

• Pay Increase / Pay Raise % Increase

• Employee Attrition Savings

• Growth Positions - Based on Enrollment Increases

• Growth Positions - Based on Elem. #5 - Fall, 2021

Total Payroll Costs $ 36,826,635 $ 42,534,668 $ 47,580,564 $ 52,968,059 $ 53,683,301 $ 56,972,446 $ 61,262,557 $ 65,169,913

Total Expenditures

Total Payroll Costs $ 36,826,635 $ 42,534,668 $ 47,580,564 $ 52,968,059 $ 53,683,301 $ 56,972,446 $ 61,262,557 $ 65,169,913 Contracted Services and Utilities 3,372,051 3,971,980 4,210,169 5,177,211 5,226,239 5,581,617 5,938,841 6,348,621 Recapture 2,916,983 5,385,781 8,214,196 3,110,703 2,409,712 1,919,966 1,372,994 3,402,758 Supplies 3,032,664 2,049,056 3,619,332 2,513,687 2,626,852 2,805,475 2,985,025 3,190,992 Travel/Misc. 762,929 910,395 1,032,699 1,125,728 1,166,064 1,245,355 1,325,058 1,416,487 Debt Service

• - -

1,133,667 1,133,667 557,638 335,725 193,802 Capital Outlay 1,901,214 241,626 853,101 164,290 156,832 200,000 200,000 200,000 Other Expenditures/Transfers (474,344) (354,333) 92,650 95,000 95,000 100,000 125,000 125,000 Budget Efficiency Savings

• - -
• -

Total Expenditures $ 48,338,132 $ 54,739,173 $ 65,602,711 $ 66,288,345 $ 66,497,667 $ 68,333,489 $ 72,454,236 $ 78,900,083 Less Recapture (2,916,983) (5,385,781) (8,214,196) (3,110,703) (2,409,712) (1,919,966) (1,372,994) (3,402,758) Net Expenditures After Recapture 45,421,149 49,353,392 57,388,515 63,177,642 64,087,955 66,413,523 71,081,242 75,497,325 Results from Operations $ 8,793,644 $ 5,374,600 $ 5,399,077 $ (723,750) $ 2,129,383 $ 1,290,111 $ (725,272) $ (384,551) Projections Actual Actual Actual Budgeted As of Jan, 2020 2016-2017 2017-2018 2018-2019 2019-2020 2019-2020 2020-2021 2021-2022 2022-2023 Projections / Proposed

23

Projections Actual Actual Actual Budgeted As of Jan, 2020 2016-2017 2017-2018 2018-2019 2019-2020 2019-2020 2020-2021 2021-2022 2022-2023 Projections / Proposed

Fund Balance Summary

Results from Operations (from prior page) $ 8,793,644 $ 5,374,600 $ 5,399,077 $ (723,750) $ 2,129,383 $ 1,290,111 $ (725,272) $ (384,551)

Fund Balance Designations

Bus & Technology Leases $ (1,631,659) $ (1,631,659) $ (1,817,336) $ - $ - $ - $ - $ - Other Fund Balance Designations (363,063) (2,012,850) -

• -
• Transportation Capital Outlay for New Buses
• - -
• -

(800,000) (800,000) (1,000,000) Technology Outlay for Refresh Cycle

• - -
• (500,000)

(500,000) Total Fund Balance Designations $ (1,994,722) $ (3,644,509) $ (1,817,336) $ - $ - $ (800,000) $ (1,300,000) $ (1,500,000) Beginning Fund Balance $ 24,524,948 $ 31,323,870 $ 33,053,961 $ 36,635,702 $ 36,635,702 $ 38,765,085 $ 39,255,196 $ 37,229,924 Change to Fund Balance Due to Operations 8,793,644 5,374,600 5,399,077 (723,750) 2,129,383 1,290,111 (725,272) (384,551) Change to Fund Balance Due to Designations $ (1,994,722) $ (3,644,509) $ (1,817,336) $ - $ - $ (800,000) $ (1,300,000) $ (1,500,000) Net Change to Fund Balance $ 6,798,922 $ 1,730,091 $ 3,581,741 $ (723,750) $ 2,129,383 $ 490,111 $ (2,025,272) $ (1,884,551)

Ending Fund Balance $ 31,323,870 $ 33,053,961 $ 36,635,702 $ 35,911,952 $ 38,765,085 $ 39,255,196 $ 37,229,924 $ 35,345,373

FUND BALANCE PER BOARD POLICY SUMMARY Target Fund Balance - 4 Months - Policy CE(LOCAL) $ 15,140,383 $ 16,451,131 $ 19,129,505 $ 21,059,214 $ 21,362,652 $ 22,137,841 $ 23,693,747 $ 25,165,775 Actual Fund Balance & Projected 31,323,870 33,053,961 36,635,702 35,911,952 38,765,085 39,255,196 37,229,924 35,345,373 Overage/(Shortage) from Target $ 16,183,487 $ 16,602,830 $ 17,506,197 $ 14,852,738 $ 17,402,433 $ 17,117,355 $ 13,536,177 $ 10,179,598

24

(Column at 98%) Projections Actual Actual Actual Budgeted As of Jan, 2020 2016-2017 2017-2018 2018-2019 2019-2020 2019-2020 2020-2021 2021-2022 2022-2023

Funding Data Elements

Enrollment (PASA Projections) 6008 6450 6873 7306 7206

6.8%

7696

6.4%

8189

6.9%

8754

Non-State Funded Pre-K & Early Education Students

(144) (167) (191) (213) (201) (198) (211) (225) State Formula Enrollment for Funding (FT FTEs) 5864 6283 6682 7093 7005 7498 7978 8528 Funded Enrollment at 100% Projections 6951 7005 7498 7978 8528 Attendance Rate 95.94% 95.57% 95.27% 94.50% 95.00% 95.27% 95.27% 95.27% Average Daily Attendance (ADA) for Funding 5633.45 6016.30 6363.61 6569 6655 7143 7601 8125 Weighted Average Daily Attendance (WADA) 6528.06 6983.24 7439.30 7772.88 8084.47 8650.40 9187.96 9797.29 Appraised Property Values (Net Taxable Before Freeze)

$ 4,037,308,502 $ 4,527,913,565 $ 5,030,322,385 $ 5,473,566,770 $ 5,698,893,486 $ 6,268,782,835 $ 6,895,661,118 $ 7,585,227,230

Appraised Property Values Growth % 11.96% 12.15% 11.10% 8.81% 13.29% 10.00% 10.00% 10.00% M&O Tax Rate (2019-20 and beyond based on HB3) $ 1.17 $ 1.17 $ 1.17 $ 1.0683 $ 1.0683 $ 1.0049 $ 0.9512 $ 0.9395 I&S Tax Rate 0.35 0.35 0.35 0.35 0.35 Total Tax Rate $ 1.52 $ 1.52 $ 1.52 $ 1.4183 $ 1.4183

Dripping Springs ISD Multi-Year Financial Review and Projections Summary As of January, 2020 Revenues Based on 100% of Projected Enrollment (2020-2021 thru 2022-2023)

Projections / Proposed

25

Projections Actual Actual Actual Budgeted As of Jan, 2020 2016-2017 2017-2018 2018-2019 2019-2020 2019-2020 2020-2021 2021-2022 2022-2023 Projections / Proposed

Financial Results/Projections from Operations

Revenues

Local - Tax Collections, Penalties & Interest $ 42,748,660 $ 51,306,720 $ 57,166,672 $ 56,850,000 $ 58,350,000 $ 59,350,000 $ 61,850,000 $ 67,350,000 Other Local Revenues 4,456,829 1,846,910 2,280,694 1,792,500 1,933,723 1,692,500 1,727,500 1,727,500 State Funding (Includes NIFA in FY2022) 6,649,859 6,759,886 8,950,585 6,263,995 7,110,183 8,108,022 9,368,685 9,088,001 Federal Funding 202,990 200,257 166,642 558,100 1,133,144 550,000 550,000 550,000 Other Sources 3,073,438 - 2,437,195 100,000 100,000 100,000 100,000 125,000 Total Revenues $ 57,131,776 $ 60,113,773 $ 71,001,788 $ 65,564,595 $ 68,627,050 $ 69,800,522 $ 73,596,185 $ 78,840,501 Recapture (2,916,983) (5,385,781) (8,214,196) (3,110,703) (2,409,712) (992,219) (1,291,428) (2,442,721) Net Revenues Less Recapture $ 54,214,793 $ 54,727,992 $ 62,787,592 $ 62,453,892 $ 66,217,338 $ 68,808,303 $ 72,304,757 $ 76,397,780

Payroll Expenditures / Calculations

• Payroll - Existing Positions / No Increase

$ 36,826,635 $ 42,534,668 $ 47,580,564 $ 52,968,059 $ 53,683,301 $ 53,683,301 $ 56,972,446 $ 61,548,851

• Pay Increase / Pay Raise % Increase

• Employee Attrition Savings

• Growth Positions - Based on Enrollment Increases

• Growth Positions - Based on Elem. #5 - Fall, 2021

Total Payroll Costs $ 36,826,635 $ 42,534,668 $ 47,580,564 $ 52,968,059 $ 53,683,301 $ 56,972,446 $ 61,548,851 $ 66,375,182

Total Expenditures

Total Payroll Costs $ 36,826,635 $ 42,534,668 $ 47,580,564 $ 52,968,059 $ 53,683,301 $ 56,972,446 $ 61,548,851 $ 66,375,182 Contracted Services and Utilities 3,372,051 3,971,980 4,210,169 5,177,211 5,226,239 5,581,617 5,938,841 6,348,621 Recapture 2,916,983 5,385,781 8,214,196 3,110,703 2,409,712 992,219 1,291,428 2,442,721 Supplies 3,032,664 2,049,056 3,619,332 2,513,687 2,626,852 2,805,475 2,985,025 3,190,992 Travel/Misc. 762,929 910,395 1,032,699 1,125,728 1,166,064 1,245,355 1,325,058 1,416,487 Debt Service

• - -

1,133,667 1,133,667 557,638 335,725 193,802 Capital Outlay 1,901,214 241,626 853,101 164,290 156,832 200,000 200,000 200,000 Other Expenditures/Transfers (474,344) (354,333) 92,650 95,000 95,000 100,000 125,000 125,000 Budget Efficiency Savings

• 10% (1,049,009)

Total Expenditures $ 48,338,132 $ 54,739,173 $ 65,602,711 $ 66,288,345 $ 66,497,667 $ 67,405,742 $ 72,658,963 $ 79,145,314 Less Recapture (2,916,983) (5,385,781) (8,214,196) (3,110,703) (2,409,712) (992,219) (1,291,428) (2,442,721) Net Expenditures After Recapture $ 45,421,149 $ 49,353,392 $ 57,388,515 $ 63,177,642 $ 64,087,955 $ 66,413,523 $ 71,367,535 $ 76,702,593 Results from Operations $ 8,793,644 $ 5,374,600 $ 5,399,077 $ (723,750) $ 2,129,383 $ 2,394,780 $ 937,222 $ (304,813)

26

Projections Actual Actual Actual Budgeted As of Jan, 2020 2016-2017 2017-2018 2018-2019 2019-2020 2019-2020 2020-2021 2021-2022 2022-2023 Projections / Proposed

Fund Balance Summary

Results from Operations (from prior page) $ 8,793,644 $ 5,374,600 $ 5,399,077 $ (723,750) $ 2,129,383 $ 2,394,780 $ 937,222 $ (304,813)

Fund Balance Designations

Bus & Technology Leases $ (1,631,659) $ (1,631,659) $ (1,817,336) $ - $ - $ - $ - $ - Other Fund Balance Designations (363,063) (2,012,850) -

• -
• Transportation Capital Outlay for New Buses
• - -
• -

(800,000) (800,000) (1,000,000) Technology Outlay for Refresh Cycle

• - -
• (500,000)

(500,000) Total Fund Balance Designations $ (1,994,722) $ (3,644,509) $ (1,817,336) $ - $ - $ (800,000) $ (1,300,000) $ (1,500,000) Beginning Fund Balance $ 24,524,948 $ 31,323,870 $ 33,053,961 $ 36,635,702 $ 36,635,702 $ 38,765,085 $ 40,359,865 $ 39,997,086 Change to Fund Balance Due to Operations 8,793,644 5,374,600 5,399,077 (723,750) 2,129,383 2,394,780 937,222 (304,813) Change to Fund Balance Due to Designations (1,994,722) (3,644,509) (1,817,336)

• -

(800,000) (1,300,000) (1,500,000) Net Change to Fund Balance $ 6,798,922 $ 1,730,091 $ 3,581,741 $ (723,750) $ 2,129,383 $ 1,594,780 $ (362,778) $ (1,804,813)

Ending Fund Balance $ 31,323,870 $ 33,053,961 $ 36,635,702 $ 35,911,952 $ 38,765,085 $ 40,359,865 $ 39,997,086 $ 38,192,273

FUND BALANCE PER BOARD POLICY SUMMARY Target Fund Balance - 4 Months - Policy CE(LOCAL) $ 15,140,383 $ 16,451,131 $ 19,129,505 $ 21,059,214 $ 21,362,652 $ 22,137,841 $ 23,789,178 $ 25,567,531 Actual Fund Balance & Projected 31,323,870 33,053,961 36,635,702 35,911,952 38,765,085 40,359,865 39,997,086 38,192,273 Overage/(Shortage) from 4 Month Target $ 16,183,487 $ 16,602,830 $ 17,506,197 $ 14,852,738 $ 17,402,433 $ 18,222,024 $ 16,207,908 $ 12,624,742

Projected Surplus for 2019-2020 Fiscal Year $ 2,129,383 Projection as of Feb, 2020

Assumption Changes for 2020-2021 Budget (vs 2019-2020) Net Change Notes Enrollment Increase Funding $ 2,753,636 330 student enrollment increase ($1.2MM add'l funding if enrollment reaches PASA projections of 7696) SHARS Revenues $ (500,000) Received both 2016-17 & 2017-18 SHARS reimb in 2019-20; will only receive 2018-19 in 2020-21 fiscal year Interest on Investments Earnings $ (150,000) Declining interest rates Salaries - 2% COLA (Cost of Living Adjustment) $ (1,073,640) Growth FTEs $ (2,400,000) 40 FTEs x $60,000 per FTE Increased Campus & Department Allocations $ (150,000) Debt Service Requirements $ 576,029 M&O debt payments declining in 20-21 7 New Buses $ (800,000) Consider adding to next bond election Technology Refresh $ (500,000) Consider adding to next bond election Longevity Retention Stipend Currently included in 2020-21 projections Net Effect of Changes to 2020-21 Budget $ (2,243,976)

2020-2021 Surplus Based on Assumptions $ (114,593) *Not a budget projection

Dripping Springs ISD 2020-21 Budget Changes from 2019-20

Dripping Springs ISD 2020-21 Budget Changes from 2019-20

Notes Projected Surplus for 2019-20 fiscal year $ 2,129,383 Could be as high as $3MM - $4MM Goal to add to fund balance Estimated COLA at 1% $ 540,000 Estimated COLA at 0.5% $ 270,000 Estimated Longevity Retention Stipend $ 575,000 Based on $100 per employee per year of DSISD service Increase of Health Ins. Contribution and/or HSA Contribution $ 240,000 $25 per month increase per employee

Salary Benefits Staffing

Budgetary Impact Decisions

2.0% $1,073,640 $240,000 +$25 $2,400,000 40 FTEs

Stipend

$500,000

Longevity

$1,073,640 $1,313,640 $3,713,640 $4,213,640

Budget Workshop Agenda

I. Overview II. Budget Parameters Discussion

• III. Preliminary Budget Discussion

IV. Staffing Process V. HB 3 Update Tax Compression

• VI. Bond Capacity Update
• VII. Tax Rate Consideration
• VIII. Next Steps

Begin with Current Staffing Collect Feedback from Administrators on Campus/Department Needs Identify/Prioritize Potential Additional Staffing Needs based on District Goals/Initiatives Review and Adjust Current Staffing Guidelines (as needed) Apply Staffing Allocations using Projected Student Growth Numbers Meet/Share Staffing Allocations with Campus/Department Administrators Continue to Monitor Student Enrollment/Student Needs and Adjust as Needed

Budget Staffing Process

• The report compares DSISD staffing to TASB-selected peer districts and, when

applicable, to a TASB-adopted benchmark for most positions within the district.

• The draft review indicates that campuses are staffing effectively with appropriate

teaching FTEs based on the master schedule model implemented at each campus with healthy class averages aligned to the adopted staffing guidelines.

• The report will indicate where there may be room for adding, maintaining, or

reducing positions and where some program-based changes could increase staffing efficiencies in the future as needed.

TASB REPORT SUMMARY

Budget Workshop Agenda

I. Overview II. Budget Parameters Discussion

• III. Preliminary Budget Discussion

IV. Staffing Process V. HB 3 Update Tax Compression

• VI. Bond Capacity Update
• VII. Tax Rate Consideration
• VIII. Next Steps

M&O Tax Rates 2018 – 2019 2019 – 2020 Tier 1 Compressed Rate $1.00 $0.93 Golden Pennies $0.06 $0.08 Copper Pennies $0.11 $0.0583 Total M&O Tax Rate $1.17 $1.0683

M&O Tax Rates 2018 – 2019 2019 – 2020 2020 – 2021 Tier 1 Compressed Rate $1.00 $0.93 $0.87 ??? Golden Pennies $0.06 $0.08 $0.08 Copper Pennies $0.11 $0.0583 $0.0583 Total M&O Tax Rate $1.17 $1.0683 $1.0083 ???

Budget Workshop Agenda

I. Overview II. Budget Parameters Discussion

• III. Preliminary Budget Discussion

IV. Staffing Process V. HB 3 Update Tax Compression

• VI. Bond Capacity Update
• VII. Tax Rate Consideration
• VIII. Next Steps

Debt Capacity Scenarios

What is our potential need for facilities? What is our Current Debt Capacity? How can we align our Facility needs with our Debt Capacity to meet student growth needs?

MS HS

1.30 1.38 1.45 1.53 1.60 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

$1.49 $1.49 $1.49 $1.52 $1.52 $1.52 $1.52 $1.52 $1.42

9 Year Historic Tax Rate

PASA Projections

47

2019 Fall Enrollment

1,093 993 2,086 3,029 3,029 2,500 2,500

2467 2,671 2780

2024- 25

787 787 787 787 787 3,939 824 824 824 824 824 4,122 876 876 876 876 876 4,380 983 983 983 983 983 4,919 1041 1041 1041 1041 1041 5,209 933 933 933 933 933 4,665

M.S. Capacity (850)

M.S. Capacity (1200)

2020 -21 2021-22 2022-23 2023-24 2024-25 2025-2026 2026—27 2027-28 2028-29 Elementary Middle School 850 Middle School 1200 Expansion to 1200 High School Additional HS Capacity Needed

#5 #6 #7 #3 #4 #3

Dripping Springs ISD Facility Needs

Facility Needs Planning (Illustration only)

52

Scenario 2020 Tax Rate 2021 Tax Rate 2022 Tax Rate 2023 Tax Rate Election Date Defeasance Amount Capacity Notes 1 0.35 $ 0.35 $ 0.35 $ 0.35 $ May, 2021

• $

42,180,000 $ 2 0.35 $

0.40 $

0.40 $ 0.40 $ May, 2021

• $

113,280,000 $ 3 0.35 $

0.45 $

0.45 $ 0.45 $ May, 2021

• $

250,000,000 $ Will require issuances over 3 year period 4 0.35 $ 0.35 $ 0.35 $ 0.35 $ May, 2022 5,000,000 $ 87,485,000 $ 5 0.35 $ 0.35 $

0.40 $

0.40 $ May, 2022 5,000,000 $ 166,950,000 $ 6 0.35 $ 0.35 $

0.45 $

0.45 $ May, 2022 5,000,000 $ 245,195,000 $ 7 0.35 $ 0.35 $

0.45 $

0.45 $ May, 2022 5,000,000 $ 294,995,000 $ Will require issuances over 2 year period 8

0.38 $

0.38 $ 0.38 $ 0.38 $ May, 2022 10,468,555 $ 153,860,000 $ 9

0.40 $

0.40 $ 0.40 $ 0.40 $ May, 2022 12,793,837 $ 192,970,000 $ Projections based on following assumptions Taxable appraised values increase at 10% annually for next 3 years, then fall thereafter Interest rates based on current market rates plus 1% DSISD ability to allocate $5,000,000 out of I&S fund balance Estimated tax collection rate of 98%

Debt Capacity Projections As of February, 2020 Projections

75,000,000 150,000,000 225,000,000 300,000,000 2021 2022

$294,995,000 $250,000,000

$166,950,000 $113,280,000

$87,485,000 $42,180,000

.35 .40 .45 .35 .40 .45

Debt Capacity Projections

Defeasance $5,000,000

Projections based on following assumptions Taxable appraised values increase at 10% annually for next 3 years, then fall thereafter Interest rates based on current market rates plus 1% DSISD ability to allocate $5,000,000 out of I&S fund balance Estimated tax collection rate of 98%

50,000,000 100,000,000 150,000,000 200,000,000 2020

$192,970,000

$153,860,000

$87,485,000

.35 .38 .40

Debt Capacity Projections

Defeasance $5,000,000

Budget Workshop Agenda

I. Overview II. Budget Parameters Discussion

• III. Preliminary Budget Discussion

IV. Staffing Process V. HB 3 Update Tax Compression

• VI. Bond Capacity Update
• VII. Tax Rate Consideration
• VIII. Next Steps

1.20 1.30 1.40 1.50 1.60 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

$1.42 $1.40 $1.49 $1.49 $1.49 $1.52 $1.52 $1.52 $1.52 $1.52 $1.42 $1.35

Tax Rate Scenarios

1.20 1.30 1.40 1.50 1.60 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

$1.42 $1.38 $1.49 $1.49 $1.49 $1.52 $1.52 $1.52 $1.52 $1.52 $1.42 $1.35

Tax Rate Scenarios

Tax Rate Management

• The District’s ability to look at current and future needs in the areas of

Maintenance and Operations and Facility/capital improvements and set a Tax Rate that aligns to those needs

• Taking the above factors into consideration, applying a tax rate that does

not frequently change year to year for taxpayers

• Desire to avoid significant increase in tax rate in a single year

Financial Decision Considerations

Tax Rate Management

Financial Decision Considerations

• Tax Rate
• Defeasance
• Bond Refunding

Setting the Tax Rate, Debt Defeasance & Bond Refunding Timeline Summary Component Description Timeline to Complete Setting the Tax Rate

The Board of Trustees must approve the 2020 M&O and I&S district tax rates by September, 2020. However, school districts must post a Notice of Budget, which includes projected tax rates, in the local newspaper at least 10 days before the annual budget is approved. DSISD's 2020-2021 budget is set to be approved on June 22, 2020. Therefore, it is best practice for the Board to be at a general consensus of tax rates before the public posting of the Notice of Budget in early June.

May 18, 2020, unless a special board

meeting is called after the May 18th meeting, but before the June 11th public posting of the Notice

• f Budget.

I&S Debt Defeasance

The actual definition of defeasance is the setting aside of cash by a borrower (DSISD) sufficient to service some portion of the borrower's debt. Public school districts are allowed by law set an I&S tax rate that will collect more than the amount needed to service the current debt payment and use the addtional funds collected to defease future debt obligations. Two dates are important as it relates to DSISD's debt defeasement options:

1) May 18th (see above),

2) Future bond election date, whether that be in

2021, 2022, 2023 or other

Bond Refunding

Refunding is the process of retiring or redeeming an outstanding bond issue by using the proceeds of a new debt issue. The new issue is almost always at a lower rate of interest than the refunded issue, ensuring significant reduction in interest expense for the issuer (DSISD).

March 23, 2020 Board Workshop/Agenda

Review Meeting

Financial Decision Considerations

0.00 0.40 0.80 1.20 1.60 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

$1.49 $1.49 $1.49 $1.52 $1.52 $1.52 $1.52 $1.52 $1.42 $0.45 $0.45 $0.45 $0.48 $0.48 $0.35 $0.35 $0.35 $0.35 $1.04 $1.04 $1.04 $1.04 $1.04 $1.17 $1.17 $1.17 $1.07

9 Year Historic Tax Rate

M&O Tax Rate I&S Tax Rate Total Tax Rate

0.00 0.40 0.80 1.20 1.60 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

$1.49 $1.49 $1.49 $1.52 $1.52 $1.52 $1.52 $1.52 $1.42 $1.35 $0.45 $0.45 $0.45 $0.48 $0.48 $0.35 $0.35 $0.35 $0.35 $0.35 $1.04 $1.04 $1.04 $1.04 $1.04 $1.17 $1.17 $1.17 $1.07 $1.00

Tax Rate

M&O Tax Rate I&S Tax Rate Total Tax Rate Potential

For Illustration Purposes Only

0.00 0.40 0.80 1.20 1.60 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

$1.49 $1.49 $1.49 $1.52 $1.52 $1.52 $1.52 $1.52 $1.42 $1.38 $0.45 $0.45 $0.45 $0.48 $0.48 $0.35 $0.35 $0.35 $0.35 $0.38 $1.04 $1.04 $1.04 $1.04 $1.04 $1.17 $1.17 $1.17 $1.07 $1.00

Tax Rate

M&O Tax Rate I&S Tax Rate Total Tax Rate

For Illustration Purposes Only

Potential

0.00 0.40 0.80 1.20 1.60 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

$1.49 $1.49 $1.49 $1.52 $1.52 $1.52 $1.52 $1.52 $1.42 $1.40 $0.45 $0.45 $0.45 $0.48 $0.48 $0.35 $0.35 $0.35 $0.35 $0.40 $1.04 $1.04 $1.04 $1.04 $1.04 $1.17 $1.17 $1.17 $1.07 $1.00

Tax Rate

M&O Tax Rate I&S Tax Rate Total Tax Rate

For Illustration Purposes Only

Potential

Budget Workshop Agenda

I. Overview II. Budget Parameters Discussion

• III. Preliminary Budget Discussion

IV. Staffing Process V. HB 3 Update Tax Compression

• VI. Bond Capacity Update
• VII. Tax Rate Consideration
• VIII. Next Steps

Summary of Budget Decisions

Employee Parameters

Employee Parameters Percent Raises Timeline Salary 0%, 1%, 2%, 3%, 4% By May 18th Benefits +$25, +$50, +$75, +$100 By May 18th Longevity Stipend $100 per year of experience in DSISD By October Tax Rate TBD By May 18th I&S Debt Defeasance $5,000,000 Prior to Next Bond Election Bond Refunding Bond Refunding time sensitive to take advantage of current drop in interest rates By March 23rd