Leander Independent School District Bonds and Debt Analysis May 23, 2019
Topics of Interest I. What Matters to Rating Agencies? II. We Passed a Bond Election, What is Next? III. Future of Financial Leadership LISD 2
What Matters to Rating Agencies?
Excellent Academic Reputation – A Destination District The District’s excellent academic reputation will continue to attract residents and grow enrollment and taxable valuations LISD Eco vs. Non Eco 4 Year Graduation Rates • Continue to outpace the State and All Student Group Economically Disadvantaged Nation in both ACT and SAT score 97.0% 96.7% 96.4% 95.9% performance 93.3% • Continue to offer IB World Schools 95.1% 88.5% 93.3% 93.3% 92.4% • Continue to have one of the highest 89.8% STAAR passing rates in State • Continue to have one of the highest 81.1% graduation rates 24.0 23.0 Class of Class of Class of Class of Class of Class of 2015 22.0 2010 2011 2012 2013 2014 ACT Score Data source: AEIS/ TAPR 21.0 LISD State 20.0 LISD Eco vs. Non Eco Graduation Rates (without exclusion) Nation 19.0 Class of Class of Class of Class of Class of Class of 2010 2011 2012 2013 2014 2015 All Student Group 88.5% 93.3% 95.9% 96.4% 96.7% 97.0% 18.0 Economically Disadvantaged 81.1% 89.8% 92.4% 93.3% 93.3% 95.1% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Gap 7.4% 3.5% 3.5% 3.1% 3.4% 1.9% HS Class * 4 Year Graduation Rate from TAPR includes Graduates ONLY, Longitudinal Rate without Exclusions 4
Seasoned Executive Team The District benefits from a veteran and stable financial manager experienced in managing fast-growth school districts; seamless transition has occurred with the District’s Superintendent who is both highly-qualified and experienced • Core finance staff possess a strong understanding of the intricacies of Texas school funding • Proven ability to effectively manage a growing school district • Dr. Dan Troxell hired as Superintendent in Aug. 2016 – upon unanimous approval by the Board – to lead Leander ISD after superintendent Bret Champion departed amicably for an opportunity at Klein ISD Dr. Dan Troxell, Lucas Janda Superintendent Chief Financial Officer • Texas “Superintendent of the Year” • CFO of Leander ISD since 2014 in 2008 • Previously was the CFO at Forney • Prior experience in large, fast- ISD, a fast-growing district near growth Cypress-Fairbanks ISD Dallas, where he was brought in to (enrollment of more than 113,000) improve the District’s challenged as well as in Allen ISD and Round financial situation Rock ISD • Also has held CFO position at • Prior to Leander ISD, was Stafford MSD superintendent at Kerrville ISD for the past 14 years 5
Favorable Location in Austin MSA - District is Poised for Continued Growth District is ideally situated northwest of Austin and available land and highway corridors position the area for continued growth and development • Leander ISD is predominantly located in Williamson County, with the southern portion extending into Travis County • Ideal location west / northwest of Austin along a transportation corridor (Hwy 183) – District is positioned for continued development and enrollment gains as the Austin MSA continues to grow • Offers proximity to Austin, a major employment center and one of the fastest growing cities in the U.S. • Median household income of $72,118 for Williamson County is 137% of the statewide and 135% of the US average 1 ______________________ 1 US Census Bureau 6
FY 2017 TAV Reaches $20 Billion, Establishing New Peak Net taxable assessed value (“TAV”) reached a new milestone in FY 2017, third straight year of double-digit growth and surpassing the $20.0 billion mark • The District’s tax base is comprised of primarily residential properties; this sector has demonstrated solid growth over the last decade and development activity remains robust • Top 10 taxpayers, combined, represent less than 4% of TAV Leander ISD – Tax Base Composition 80% 70% 60% TAV % change 50% 40% 30% 20% 10% 0% 2012 2013 2014 2015 2016 Single-Family Residential Multi-Family Residential Commercial and Industrial 7
Enrollment Continues to Climb at a Manageable Rate The District continues to experience consistent annual growth in enrollment, but the rate of growth has moderated • District enrollment grew by 2.25% this year (fiscal 2017) and over the past five years has grown by a compound annual growth rate (“CAGR”) of 2.56% • Enrollment growth has slowed from larger growth rates – from 2008-2012 the enrollment CAGR was 5.86% Key Drivers Quality of schools/education Relative affordability of housing Location 40,000 14.00% 35,000 12.00% 30,000 10.00% 25,000 8.00% 20,000 6.00% 15,000 4.00% 10,000 2.00% 5,000 0 0.00% 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Enrollment % Change ______________________ Source: Texas Education Agency, PEIMS data; Leander ISD. 8
Favorable Demographics The District’s student population and wealth characteristics compare favorably to that of area districts and statewide • Low economically disadvantaged population of 19% – 59% in Texas Leander ISD ranked 3 rd in Texas among ISDs with more than 20,000 students – • High STAAR passage rate of 83% – 71% in Texas Leander ISD ranked 11 th in Texas among ISDs with more than 20,000 students – • Highly educated population - 51% have a bachelor’s degree – 29% in Texas – 43% in Austin • High median household income level of $102,782 – Austin metro area is $71,000 The November 2017 demographer report is on Leander ISD website. http://www.leanderisd.org/users/0001/docs/Demographics/2015/Demog-Pres_2015.pdf 9
Enrollment Continues to Climb The District utilizes a demographer to develop data-based projections for enrollment growth ______________________ Source: Leander ISD 2017 Demographic Report. 10
2018 Budget Development The adopted FY 2018 budget includes changes to staffing levels, payroll, and other expenses meant to ensure fiscal stability and strong academic outcomes • Increase of 138 positions in General Fund Budget (125 campus, 13 non-campus) • Salary increase of 3.0% off midpoint for all employees • Maintain 2-cents of the M&O tax rate for major maintenance levy • Increase for implementation of new student information system • Start-up funding for Akin Elementary School scheduled for opening in August 2017 As the table below shows, the District has a proven track record of outperforming adopted budget expectations 11
Tax Rates Unchanged from Prior Year Tax rates have remain unchanged over the last six years, demonstrating the District’s ability to fund operating and debt service requirements • The I&S tax rate remains at $0.47 ($0.47187, truncated in table below) per $100 of TAV – District currently over levying to early retire bonds • The M&O tax rate remains at $1.04 per $100 of TAV – District maintains 2-cents of the M&O rate for “major maintenance” – The M&O rate could increase to $1.17 (12.5%) with voter approval; though not currently contemplated by management Leander ISD Tax Rate Composition $1.60 $1.40 $0.46 $0.47 $0.47 $0.47 $0.47 $0.47 $0.41 $0.38 $1.20 $0.34 $1.00 $0.80 $0.60 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 $0.40 $0.20 $0.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 M&O Tax Rate I&S Tax Rate 12
Evolving Debt Structure The maturation of the District’s debt structure continues by reducing absolute leverage and growing into the payment structure • The District can afford all future bond payments at the current tax base, with a 98% collection factor • Reduced CAB% now and forward looking – important for several reasons • Enhanced debt capacity to address capital needs Evolution of Debt Structure $140,000,000 $120,000,000 $100,000,000 Original D/S $80,000,000 Revised D/S 2015AB_REF Savings $60,000,000 2016_REF Savings 2016A_REF Savings 2016_DEF Savings $40,000,000 2017_DEF Savings $20,000,000 $- $(20,000,000) 13
Recommend
More recommend
