Bond Planning Subcommittee Meeting 2: October 29, 2019 Meeting - - PowerPoint PPT Presentation

Bond Planning Subcommittee

Meeting 2: October 29, 2019

Meeting Agenda

• Reflections on Facility Tours
• “Most Important Features of a Quality School”
• School Transformations
• Reflections on School Transformations & New School Features
• District Financial Overview & Bond History
• Bond Planning Process
• Defining Consensus

House Norms

• Everyone participates – no one dominates
• Begin and end on time
• Take personal breaks as needed
• Respect all opinions

Group Discussion: Reflections on Facility Tours

• What were your key take-aways?
• What were you surprised by and/or what did you learn through the

facility tours that you did not know?

• How did the older facilities compare to the newer facilities?
• What do you see as some of the district’s greatest facility

challenges?

Most Important Features of a Quality School

• Ample Classroom Space: Not overcrowded
• Inviting atmosphere: Bright, Colorful and Welcoming
• Safe, Efficient and Clean building
• Equity in learning opportunities for all students
• Comfortable and flexible furniture
• Up-to-date
• Versatility of building and furniture use
• Space/Opportunity for outdoor learning

School Transformations

Huckabee

Group Discussion

How has the world changed since you were in High School?

transformations

transformation technology

transformation communication

teachers taught from front of room

knowledge was learned from books

corridors were for lockers

Group Discussion

What do students need to know and be able to do in order to be contributing members of society?

transformation in the workplace

transformation in technology

transformation in access to information

transformation in how we teach

transformation in how we learn

peer to peer learning

group and collaborative learning

• ne size does not fit all

Group Discussion

What types of experiences should a student have that would prepare them for long term success?

• Critical Thinking and Problem Solving
• Initiative and Entrepreneurship
• Effective Oral and Written Communication
• Collaboration Across Networks
• Leading by Influence
• Agility and Adaptability
• Accessing and Analyzing Information
• Curiosity and Imagination

The 21st Century Learner Outcomes/Skills

Learner expectations

21 s t cen t u r y l ear n i n g en v i r o n m en t s 21st century learning environments

technology assisted

adaptive and flexible

enhanced technology

stem and science spaces

technology as a learning tool

Group Discussion

What type of spaces or features are you interested in seeing in a future facility tour?

District Financial Overview

School Finance: The Big Picture

A school district’s budget is generated from three sources:

• Federal funding
• State funding
• Local tax effort

Federal State Local

2% 2% 50% 50% 48% 48%

Federal Funding

• Appropriated for special programs or

to provide services to a specific group of students

• Cannot be used to replace state or

local dollars to fund a program (supplanting)

• About half of federal funds go

directly to school districts

• The remainder goes to the State

Federal State Local

2% 2%

State Funding

Foundation School Program

• Provides state funding to school districts
• Administered by TEA
• Meant to ensure that all school districts,

regardless of property wealth, receive “substantially equal access to similar revenue per student at similar tax effort, considering all state and local tax revenues

• f districts after acknowledging all

legitimate student and district cost differences.”

Federal State Local

50% 50%

Local Tax Effort

• Generated from property taxes (not sales taxes)
• Victoria Central Appraisal District sets taxable

home values

• Called “ad valorem” taxes
• Each year, a school district adopts two tax

rates, which determine the total tax rate:

• Maintenance & Operations

(M&O – aka general fund)

• Interest & Sinking

(I&S – aka debt service)

20.33% $77.7 MM

Federal State Local

48% 48% M&O I&S

Maintenance & Operations (M&O) Tax Rate

Funds the day-to-day maintenance and

• perations of the district
• Salaries (for teachers and other staff)
• Facility repairs and maintenance
• Bus repairs, maintenance and fuel
• School supplies and materials
• Utilities (electricity, water, etc.)

For the av averag age citizen this is similar ar to:

✓ House repairs ✓ Car fuel ✓ Routine services ✓ Groceries ✓ Cleaning Supplies ✓ Utilities

Interest & Sinking (I&S) Tax Rate

Funds debt repayment for “big ticket” items

• New building construction
• Existing building renovations
• Land purchases
• Program-specific equipment
• Technology
• School buses

38

For the av averag age citizen this is similar ar to:

✓ New home purchase ✓ House renovations ✓ Land for a home ✓ New appliances ✓ New home computer ✓ New car

I&S (Debt Service) Funding

What is a bond?

A bond is a debt investment in which an investor loans money to a school district, with interest, for a defined period of time. Essentially, it’s similar to a family taking out a mortgage for the purchase of their home. School districts issue bonds to pay for “big ticket” capital needs: new facilities, renovations, land, technology, etc.

BORROW OWER

(School District)

INVESTOR OR

BOND

$

IOU + interest

Local Tax Effort

The Annual District Budget is passed by the School Board of Trustees. 84.8 % of the District’s M&O budget supports personne nnel l sala larie ies and d rela lated costs.

M&O I&S

I&S funds may only be used to repay debt. They cannot nnot be used for sala larie ies, utilit ilitie ies or other day-to to-day expens nses.

HB3

• House Bill 3, a school finance bill

passed by the 86th Texas Legislature earlier this year provided additional state funding for our schools and aims to provide property tax relief to Texans.

• Reduced M&O property tax rates

by approximately $0.07cents per $100 valuation this year and potentially more over the next two years. M&O I&S

Employee pay increases Full-day PreK funding Increased base funding per student No money for new facilities to address growth or renovations to existing facilities

$ X

Local Tax Effort

42

Capped at $0.97 per $100 of property value.

If a district wants to raise the rate beyond the cap, it requires voter approval through the holding of a Tax Ratification Election. M&O I&S

Capped at $.50 per $100 of property value.

Every cent requires voter approval in a Bond Election.

Current Victoria ISD Tax Rate

M&O TAX RATE $0.97 I&S TAX RATE $0.2235 TOTAL TAX RATE $1.1935

per $100 of property value

+ =

Tax Rate History

1.03 1.03 1.03 1.03 1.03 1.04 1.04 1.04 1.04 1.15 0.97 0.2927 0.2926 0.2926 0.2790 0.2596 0.2344 0.2263 0.2263 0.2263 0.2263 0.2235

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 Maintenance Debt Service

2019-20 General Fund Budget

85% 85% 15%

Payroll Costs Supplies, Materials & Equipment

Bond History

Bond History

$10,375,000 $31,000,000 $99,841,004 $58,999,992

1989 1998 2007 2008 2008

Bond Planning Process Overview

Bond Planning Process

Assess Needs at Existing Facilities

Identify deficiencies and inequities in existing campuses

Set Long Range Educational Vision for Academic Programming

Determine evolution of program demands, instructional objectives, expectations and standards

Study Demographics & Enrollment Projections

Determine areas of underutilization,

• vercapacity and needs

for future growth

Review Financial Data

Understand the financial implications to make fiscally-sound recommendations

ASSESS REVIEW STUDY VISION

Ongoing ng Respons nsibilities of VISD

Bond Planning Process

Prioritize Potential Projects

Develop consensus on the how to address the District’s needs

Board Calls a Bond Election

Board is required to take action on calling bond within 78 days of desired Election Day

Board Considers Calling Bond Election

Board studies recommendations to determine action

Make Recommendations to the Board

Present findings and recommended course of action to Trustees

PRIORITIZE

RECOMMEND

CONSIDER CALL

Respons nsibility y of the Bond nd Planni nning ng Subcommittee

Bond Planning Process

District Educates Voters on the Proposal

It’s the school district’s role to communicate facts about the bond

District Sells Bonds to Investors

District issues bond sales in increments over time to match the schedule of project design and construction

Voters Approve Bond Election

A majority of voters voting in favor of the proposition(s) gives the Board authority to sell bonds

Voters Consider Proposition(s)

School bond propositions must be held with the General elections in May

• r November

EDUCATE VOTE APPROVE SELL

Share red d Respons nsibility

Bond Planning Process

Board Levies I&S Tax Rate

The Interest & Sinking tax rate (set annually) is levied to make annual debt payments

Project Construction

Construction takes

• approx. 12-14 mos. for

an elementary and 24-28 mos. for a high school

Projects Bid

Projects are bid in the competitive market to select a contractor and get the best value for the District

Project Design

Project design is a multifaceted process that begins conceptual and concludes with construction documents

CONSTRUCT BID DESIGN LEVY

Defining Consensus

Consensus Defined

Consens nsus us Defined: d: Consensus is defined by Merriam-Webster as:

• a general agreement
• the judgment arrived at by most of those concerned
• group solidarity in sentiment and belief;
• concerned with the process of deliberating and finalizing a decision

Goal: Goal is to agree on a definition and then, once recommendation goes forward, for everyone to be able to support it.

Group Discussion: What is Our Definition of Consensus?

• Unanimous agreement
• Unanimous consent (“I can support that.”)
• Unanimous agreement minus one or two votes
• Unanimous consent minus one or two votes
• Super majority thresholds (90%, 80%, 75%, two-thirds, and 60%

are common)

• Simple majority

Meeting Wrap-Up