AND WE ARE ADJOURNED OUR SPECIAL MEETING AND WE'LL MOVE ON TO OUR WORKSHOP, MRS.
[1. Discussion regarding Bond & TRE]
[00:00:08]
SMITH. GOOD MORNING.BECAUSE WE HAVE NOT HAD A CHANCE TO DO THAT YET.
AND THEN I'VE ASKED ESTHER TO COME AND GIVE SORT OF A BONDS 101, BECAUSE ONE OF THE THINGS I THINK THAT WE NEGLECTED DURING THE LAST PRESENTATION WAS JUST HOW MANY OF YOU HAVEN'T BEEN THROUGH THIS PROCESS BEFORE.
I JUST THINK THAT WILL BE HELPFUL.
AND THEN WE'RE JUST GOING TO OPEN IT UP TO QUESTIONS ABOUT THE BOND AFTER THAT.
BUT WE'RE GOING TO START WITH THE TAX RATE.
I'VE SENT YOU GUYS MOST OF THIS INFORMATION IN HOME BASE, BUT I WANTED TO WALK THROUGH WHAT OUR TAX RATE LOOKS LIKE THIS YEAR AND KIND OF WHAT THE STEPS ARE TO ADOPT THE TAX RATE. SO TAX RATE BASICS.
WE HAVE TWO PORTIONS OF OUR TAX RATE.
M&O PAYS FOR OPERATIONS AND IS DETERMINED ANNUALLY BY THE STATE'S FUNDING FORMULA.
AND THEN TOGETHER, THAT'S THE THAT'S THE TOTAL TAX RATE THAT PEOPLE SEE ON THEIR TAX BILL.
SO THE I&S TAX RATE IS A PRETTY SIMPLE FORMULA.
YOU TAKE YOUR ANTICIPATED DEBT PAYMENTS BOTH FOR CURRENTLY OUTSTANDING DEBT AND THEN FOR ANY NEW BONDS THAT YOU EXPECT TO ISSUE OVER THE NEXT YEAR ON AUTHORIZED BOND PROGRAMS. SO TOTAL ANTICIPATED PRINCIPAL AND INTEREST PAYMENTS ON DEBT FOR THE YEAR.
YOU DIVIDE THAT BY YOUR TOTAL PROPERTY TAX BASE, AND THAT GIVES YOU THE TAX RATE THAT YOU NEED.
SO IT'S A PRETTY STRAIGHTFORWARD FORMULA TO DETERMINE YOUR I&S TAX RATE.
WE HAVE TO GO THROUGH THIS FORMULA EVERY YEAR AS PART OF OUR TRUTH IN TAXATION REQUIREMENTS.
YOU CAN'T ADOPT A TAX RATE HIGHER THAN WHAT YOU NEED TO PAY DEBT.
YOU CAN PAY OFF IF THE BOARD WANTS TO PAY OFF DEBT EARLY OR THINGS LIKE THAT.
YOU CAN INCREASE THE AMOUNT OF YOUR ANTICIPATED DEBT PAYMENTS.
IF YOU IF YOU HAVE AN EXPECTATION THAT WE PAY OFF DEBT FAST.
AND THEN THAT KIND OF MANAGES THE TAX RATE.
IF YOUR PROPERTY VALUES GO UP, THEN YOU CAN SERVICE MORE DEBT AT THE SAME TAX RATE.
AND THAT'S JUST KIND OF HOW THAT WORKS.
SO OUR GOAL HAS BEEN TO MAINTAIN A STEADY I&S TAX RATE FOR OUR TAXPAYERS.
BUT BACK IN 2018 WITH THE 2018 BOND PROGRAM WE COMMITTED TO HOLDING THE DEBT TAX RATE AT $0.27 FOR WHAT WE THOUGHT AT THE TIME WAS GOING TO BE 2 TO 3 YEARS JUST BASED ON ANTICIPATED GROWTH.
AND WE'VE BEEN ABLE TO HOLD IT STEADY THROUGH THE ENTIRE BOND PROGRAM AND IT'S STILL $0.27.
OUR OUR GOAL IS NOT TO HAVE THE TAX RATE FOR TAXPAYERS KIND OF GO UP AND DOWN EVERY YEAR.
THE M&O TAX RATE STRUCTURE IS A LITTLE BIT MORE COMPLICATED.
THE M&O TAX RATE STRUCTURE MIRRORS THE SCHOOL FUNDING FORMULA.
SO THE SCHOOL FUNDING FORMULA HAS TWO TIERS.
TIER ONE, WHICH IS DESIGNED TO PROVIDE A BASIC EDUCATIONAL PROGRAM FOR ALL STUDENTS.
AND THEN TIER TWO WHICH IS ENRICHMENT FUNDING.
AND SO OUR TAX RATE IS OUR M&O TAX RATE IS ALSO BROKEN UP INTO TIER ONE AND TIER TWO PORTIONS.
SO THIS IS KIND OF WHAT THAT LOOKS LIKE.
TIER ONE, THE TIER ONE PORTION OF OUR TAX RATE IS ALSO KNOWN AS THE COMPRESSED TAX RATE.
WE TAKE THOSE CERTIFIED APPRAISED VALUES WE SEND THEM TO TEA.
SO THAT IS DETERMINED BY THE STATE'S FUNDING FORMULA.
YOU CAN HAVE A TOTAL OF $0.17 IN YOUR TIER TWO TAX RATE.
[00:05:04]
THE FIRST EIGHT OF THOSE 17 ARE CALLED GOLDEN PENNIES.THAT MEANS THAT THE STATE'S FUNDING FORMULA GIVES US MORE MONEY THAN WE GENERATE LOCALLY.
SO THEY'RE EQUALIZED TO A HIGHER YIELD.
THE REMAINING NINE, IF YOU HAVE EXERCISED, THOSE ARE EQUALIZED TO A LOWER YIELD.
YOU PAY RECAPTURE ON COPPER PENNIES, YOU DON'T PAY RECAPTURE ON GOLDEN PENNIES.
WE CURRENTLY HAVE A LITTLE OVER FIVE COPPER PENNIES APPROVED IN OUR TAX RATE.
SO THIS IS JUST A LOOK AT OUR TAX RATE HISTORY BY YEAR FROM 2018 TO 2023.
JUST SOMETHING THAT PEOPLE GET CONFUSED ON SOMETIMES.
THE 2023 TAX RATE, IT WAS FOR THE 23-24 SCHOOL YEAR.
YOU'LL BE ASKED TO VOTE ON THE 2024 TAX RATE IN A COUPLE OF WEEKS FOR THE 24-25 SCHOOL YEAR.
SO YOU ALWAYS TAKE THE FIRST FIRST YEAR.
I'VE BROKEN OUR M&O TAX RATE DOWN IN THOSE DIFFERENT TIERS JUST SO YOU CAN SEE THE CHANGE.
SO YOU CAN SEE EVERY YEAR THAT TIER ONE TAX RATE HAS GONE DOWN BASED ON TEAS CALCULATIONS, THERE WAS A SIGNIFICANT DECREASE IN THAT PORTION OF THE TAX RATE FROM 2022 TO 2023 BECAUSE OF STATEWIDE PROPERTY TAX RELIEF THAT WAS PASSED IN THE 88TH LEGISLATIVE SESSION.
SO THERE WAS A LARGE COMPRESSION OF OUR TIER ONE TAX RATE AT THAT TIME.
IN 2018 WE HAD SIX GOLDEN PENNIES IN 2019, WHEN THE STATE PASSED HOUSE BILL THREE AND CHANGED THE SCHOOL FUNDING FORMULA, WE GOT ACCESS TO TWO MORE GOLDEN PENNIES.
AND SO WE'VE HAD ALL EIGHT GOLDEN PENNIES EVER SINCE.
AND THEN IN 2018, WE HAD 11 COPPER PENNIES.
THAT WAS THE MAXIMUM THAT WE COULD HAVE AT THE TIME.
WE'VE BEEN AT 5.8 COPPER PENNIES EVER SINCE.
SO THIS YEAR, FOR 2024, WE ARE RECOMMENDING EXERCISING THOSE ADDITIONAL THREE AND CHANGE COPPER PENNIES.
IT'S ACTUALLY A TOTAL OF 2.94 CENTS INCREASE IN THE TOTAL TAX OR IN THE M&O TAX RATE.
BECAUSE AS YOU CAN SEE, THE TIER ONE PORTION HAS GONE DOWN A LITTLE BIT AS CALCULATED BY TEA.
THE ADOPTION OF THIS HIGH, THIS M&O TAX RATE, BECAUSE WE'RE, WE'RE EXERCISING THOSE COPPER PENNY, THAT COPPER PENNY AUTHORITY WOULD TRIGGER A VOTER APPROVAL TAX RATE ELECTION.
IT WOULD GENERATE APPROXIMATELY $11.5 MILLION NET TO THE DISTRICT IN TIER TWO REVENUE.
SO THAT'S A $19.5 MILLION INCREASE IN PROPERTY TAX REVENUE.
BUT THEN AN $8 MILLION INCREASE IN RECAPTURE FOR A NET OF $11.5 MILLION TO THE DISTRICT.
AND WE ARE RECOMMENDING IT REMAIN AT $0.27.
YOU CAN SEE THERE JUST THE CHANGE IN THE TOTAL TAX RATE OVER THE LAST SEVERAL YEARS.
ONE OF THE THINGS THAT BRIAN GRUBBS PRESENTED DURING THE LAST WEEK'S BOND WORKSHOP.
ESSENTIALLY, IF INTEREST RATES STAY BELOW 5%, WHICH IS THEY'RE WELL BELOW 5% NOW AND IF OUR PROPERTY VALUES GROW BY AT LEAST $2.7 BILLION PER YEAR WHICH THEY HAVE HISTORICALLY GROWN SIGNIFICANTLY MORE THAN $2.7 BILLION, BUT THAT'S KIND OF THE MINIMUM EXPECTATIONS THAT WE NEED TO HAVE IN ORDER TO MAINTAIN A 27% OR BETTER DEBT TAX RATE.
SO, LIKE, BRIAN WAS KIND OF TRYING TO PROVE UP DURING THAT WORKSHOP, HIS ASSUMPTIONS ARE THAT WE WILL HIT THOSE MINIMUM REQUIREMENTS OVER THE COURSE OF THE RECOMMENDED BOND PROGRAM AND BE ABLE TO MAINTAIN A $0.27 DEBT TAX RATE.
[00:10:07]
RATE, WE CAN UTILIZE SOME TIRZ FUNDS.WE CAN UTILIZE I&S FUND BALANCE.
WE CAN WE CAN DO SOME DIFFERENT THINGS BEFORE WE WOULD HAVE TO RAISE THAT RATE FOR OUR COMMUNITY.
SO THE IMPACT ON THE AVERAGE HOMEOWNER OF THIS INCREASE IN TAX RATE THAT WE ARE ASKING FOR ON THE M&O SIDE YOU CAN SEE HERE THE 2023 VERSUS 2024 AVERAGE MARKET VALUE VERSUS AVERAGE TAXABLE VALUE.
SO KEEP IN MIND THAT HOMEOWNERS HAVE HOMESTEAD EXEMPTIONS.
THEY'RE ALSO CAPPED AT THE AMOUNT OF ASSESSED VALUE GROWTH EACH YEAR.
YOU CAN SEE THERE THE TAX RATE FROM LAST YEAR AND THEN THE PROPOSED TAX RATE FOR THIS YEAR.
AND THEN THE INCREASE OF ABOUT $759.
I DO WANT TO POINT OUT THAT $601 OF THAT INCREASE FROM YEAR TO YEAR IS BECAUSE OF APPRAISALS.
THEN THE IMPACT OF THE ACTUAL INCREASE IN THE TAX RATE THAT WE'RE ASKING FOR IS ABOUT $159 A YEAR ON THIS AVERAGE HOME IN FRISCO ISD.
HERE IS A LOOK AT THE TAX RATE HISTORY TAX BILL HISTORY.
SO THIS IS SINCE 2018, YOU CAN SEE THAT THE STATE'S FUNDING FORMULA AND THE WAY THAT M&O TAXES WORK, IT'S MEANT TO TRY AND KEEP HOMEOWNERS PAYING ROUGHLY THE SAME AMOUNT YEAR OVER YEAR.
THAT'S THAT'S HOW THAT FORMULA WORKS.
AND YOU CAN SEE THAT THAT IN GENERAL, IT KIND OF DOES.
AND THEN YOU CAN SEE THE INCREASE THAT WE ARE RECOMMENDING FOR 2024.
I FORGOT TO TAKE OFF THAT END 2023 DOLLARS.
IGNORE THAT. I'LL TAKE THAT OFF LATER.
YOU CAN SEE THE LITTLE PORTION IN BLUE I KIND OF BRACKETED THE AMOUNT OF INCREASE RELATED TO APPRAISALS, AND THEN THAT LITTLE TINY PORTION IN PURPLE IS THE AMOUNT OF INCREASE.
OOPS, SORRY. UP HERE? NOPE. BACK UP.
THE ONLY THING THAT GENERATES MORE MONEY FOR THE SCHOOL DISTRICT IS TO RAISE THE TAX RATE.
IT DECREASES THE AMOUNT OF STATE AID THAT WE GET.
WE THERE'S A THERE'S AN OFFSETTING RELATIONSHIP BETWEEN PROPERTY TAXES AND STATE AID.
BUT IF WE INCREASE THAT RATE, THEN WE ARE ALLOWED TO KEEP A PORTION OF THAT REVENUE.
DOES THAT MAKE SENSE? HOPEFULLY, NO.
THE STATE'S FUNDING FORMULA, THE WAY THAT IT WORKS IS IT'S SHARED, THE TOTAL ENTITLEMENT THAT WE HAVE AS A SCHOOL DISTRICT IS SHARED BETWEEN LOCAL TAXES AND STATE AID.
SO THE FORMULA ITSELF CALCULATES HOW MUCH WE ARE ENTITLED TO BASED ON THE NUMBER OF STUDENTS ENROLLED, THEIR ATTENDANCE RATES, AND ANY WEIGHTS ASSOCIATED WITH THE SETTINGS THAT THEY'RE SERVED IN.
SO IF THEY'RE SPECIAL ED, THEY HAVE A HIGHER WEIGHT BILINGUAL, THEY HAVE A HIGHER WEIGHT, ETC..
AND THAT'S, THAT'S BASED ON YOUR ASSESSED VALUES AND THEN THE RATE THAT THE STATE TELLS YOU TO SET.
SO YOU GENERATE AS MUCH AS YOU CAN THROUGH PROPERTY TAXES.
AND THEN THE STATE FILLS IN THE DIFFERENCE WITH STATE AID.
SO IF PROPERTY VALUES GO UP, THAT MEANS YOU CAN GENERATE MORE OF YOUR ENTITLEMENT SHARE WITH LOCAL TAXES, AND THE STATE HAS TO KICK IN LESS TO FILL UP THAT CUP. IF PROPERTY VALUES WERE TO GO DOWN, THE STATE WOULD HAVE TO KICK IN MORE BECAUSE YOUR ENTITLEMENT DOESN'T CHANGE, YOUR ENTITLEMENT IS BASED ON THAT FORMULA. NOW THE ONLY DIFFERENCE IS IF YOU HAVE NOT EXERCISED ALL OF YOUR AVAILABLE PENNIES IN THAT TIER TWO TAX RATE, SO THAT ENRICHMENT PORTION OF THE FORMULA IS BASED ON HOW MANY PENNIES ARE IN YOUR TAX RATE.
[00:15:04]
SO RIGHT NOW WE ARE NOT EXERCISING ALL OF OUR TAXING AUTHORITY FOR THOSE COPPER PENNIES.MEANING IF WE DO EXERCISE THAT AUTHORITY, WE DO GET TO KEEP SOME OF THEM.
SO OUR TAX REVENUE GOES UP, OUR RECAPTURE ALSO GOES UP.
BUT WE DO GET TO NET ADDITIONAL DOLLARS FOR THE DISTRICT.
SO JUST SOME TAX RATE TERMINOLOGY.
SO THERE ARE TWO INFORMATIONAL TAX RATES THAT GET PUBLISHED.
WE DON'T THAT WE DON'T DO ANYTHING WITH.
THE FIRST ONE IS THE NO NEW REVENUE TAX RATE.
THAT'S THE RATE THAT WOULD PRODUCE THE SAME TAX LEVY AS LAST YEAR.
IT'S INTENDED TO TELL TAXPAYERS THE EFFECT OF THE TAX RATE ON THEM MEANING THEIR, THEIR TOTAL TAX RATE, BECAUSE THEIR APPRAISALS ARE GOING UP IN ORDER TO GENERATE THE SAME AMOUNT OF MONEY, WE COULD LOWER THE TAX RATE.
EXCEPT THAT'S NOT HOW SCHOOL FINANCE WORKS.
THEN THERE'S THE RATE TO MAINTAIN REVENUE.
SO THIS IS THE RATE THAT WILL PRODUCE THE SAME AMOUNT OF REVENUE AS LAST YEAR.
SO THE VOTER APPROVAL TAX RATE IS THE MAXIMUM TAX RATE THAT CAN BE ADOPTED WITHOUT AN ELECTION.
THIS USED TO BE KNOWN AS THE ROLLBACK RATE.
SO ESSENTIALLY YOUR VOTER APPROVAL TAX RATE IS GOING TO BE WHATEVER I&S TAX RATE YOU NEED TO PAY YOUR DEBT PLUS WHATEVER M&O TAX RATE TEA CALCULATES FOR YOU AND THEN WHATEVER GOLDEN AND COPPER PENNIES HAVE ALREADY BEEN APPROVED BY VOTERS.
252. YOUR MAXIMUM TAX RATE IS ESSENTIALLY ALL OF YOUR AVAILABLE TAXING AUTHORITY.
ADOPTING THIS RATE TRIGGERS A VOTER APPROVAL TAX RATE ELECTION.
AND SO THAT'S WHAT WE'RE RECOMMENDING DOING.
SO YOU CAN SEE ABOUT $0.03 HIGHER THAN THE VOTER APPROVAL TAX RATE.
YES. THE RATE TO MAINTAIN REVENUE IS 1.0599.
WHY DID THAT GO UP? WHY IS THAT HIGHER.
SO M&O AND I&S AND SO OUR I&S TAX RATE ACTUALLY CALCULATED THAT WE WOULD NEED MORE THAN $0.27.
HOWEVER, WE'RE NOT RECOMMENDING RAISING IT MORE THAN $0.27 BECAUSE WE HAVE THE FUND I&S F UND BALANCE AND TIRZ MONEY THAT WE CAN USE TO KEEP IT AT $0.27. SO THAT LITTLE BIT OF EXTRA IT'S COMING FROM I&S, WHAT THE, WHAT THE CALCULATION SHOWS THE I&S TAX RATE NEEDS TO BE.
IT GETS VERY THOSE CALCULATIONS GET VERY CONVOLUTED.
BUT LIKE I SAID, THOSE ARE INFORMATIONAL RATES THAT GET PUBLISHED ACCORDING TO THE TAX RATE CALCULATION THAT THE TAX OFFICE DOES FOR US.
YEAH. GO AHEAD. SO WHEN WE SAY WHEN WE TALK ABOUT HOW THE TIRZ ZONE HELPS KEEP THE TAX RATE A LITTLE BIT LOWER, THIS IS A GREAT EXAMPLE OF WHAT THAT IS. RIGHT.
BECAUSE THEY USE THE SAME CALCULATION FOR EVERY DISTRICT.
THEY DON'T KNOW THAT WE HAVE THE TIRZ ZONE.
[00:20:07]
BUT THEY USE THIS THEY USE THIS BROAD TAX RATE FOR EVERYBODY.YES. YEAH. THANK YOU, THANK YOU.
YEAH. AND SO EVEN WHAT I WOULD SAY IS EVEN IF WE WANTED TO ADOPT, I MEAN, WE COULD ADOPT THAT HIGHER TAX RATE BECAUSE WE COULD INCREASE THE THE I&S TAX RATE.
BUT WE HAVE MECHANISMS IN PLACE SO THAT WE DON'T NEED TO.
SO IN A LOT OF DISTRICTS THAT DON'T HAVE THOSE MECHANISMS IN PLACE, THAT RATE TO MAINTAIN REVENUE MIGHT BE EQUAL TO THE MAXIMUM TAX RATE. OKAY.
SO HERE'S A TIMELINE OF EVENTS.
AND THEN I'M HAPPY TO ANSWER ANY QUESTIONS ABOUT THE TAX RATE BEFORE WE MOVE ON TO BOND DISCUSSION.
THAT NOTICE HAS ALREADY BEEN PUBLISHED IN THE FRISCO ENTERPRISE.
IT'S REQUIRED TO BE PUBLISHED IN A LOCAL NEWSPAPER, AT LEAST TEN DAYS PRIOR TO.
SO WE'VE PUBLISHED THAT NOTICE ALREADY.
I THINK IT MIGHT BE CALLED SOMETHING OTHER THAN AN EFFICIENCY AUDIT IN TECHNICAL TERMS, BUT ESSENTIALLY WE ASK OUR INDEPENDENT AUDITORS TO COME IN AND DO AN AUDIT OR A SET OF AGREED UPON PROCEDURES TO REVIEW OUR SPENDING COMPARED TO OTHER DISTRICTS.
THERE ARE SOME OTHER QUESTIONS.
YEAH. GO AHEAD. THE EFFICIENCY AUDIT DOES NOT.
IT JUST LOOKS AT US AS COMPARED TO OTHER DISTRICTS.
IT DOESN'T COME IN AND SEE THAT WE'RE RUNNING OUR OPERATIONS AS EFFICIENTLY AS POSSIBLE.
SO EVERY SCHOOL DISTRICT THAT GOES THROUGH A VATRE HAS TO HAVE AN EFFICIENCY AUDIT DONE.
AND THE AUDITORS USE THE EXACT SAME AUDIT PROGRAM.
SO THEY ASK THE SAME QUESTIONS, THEY DO THE SAME FINANCIAL BENCHMARKING.
THEY USE THEY USE THE SAME METHODOLOGY TO SELECT A DISTRICTS TO COMPARE US TO.
AND LIKE I SAID, IT'S IT'S PRESCRIBED BY THE STATE.
WHAT HAS TO BE PART OF THAT AUDIT.
AND SO WE ARE REQUIRED TO HAVE THAT AUDIT DONE AND THEN HAVE DISCUSSED THE RESULTS OF IT IN A PUBLIC MEETING AT LEAST 30 DAYS BEFORE THE ELECTION. SO, WEAVER, OUR EXTERNAL AUDITORS HAVE ALREADY BEGUN WORK ON THE EFFICIENCY AUDIT IN ANTICIPATION OF THIS AND SO THAT WILL BE READY TO DISCUSS AT THE SEPTEMBER 16TH BOARD MEETING, WHICH IS WELL IN ADVANCE OF 30 DAYS BEFORE ELECTION DAY.
AND THEN NOVEMBER 5TH WOULD BE ELECTION DAY.
SO QUESTIONS ON THE TAX RATE PORTION OR THE TAX RATE OR ANY OF WHAT I JUST WENT THROUGH.
AND KIM, CAN YOU GO BACK TO THE ONE WHERE WE SHOW THE RECAPTURE? YEAH, THIS ONE, THE IF WE RAISE TO, I MEAN, $2.94, THEN THERE'S A RECAPTURE OF $8 MILLION. YEAH.
SO CAN WE RAISE SLIGHTLY LESS SO THAT THE RECAPTURE CAN BE? THE RECAPTURE WILL BE PROPORTIONAL TO THE NUMBER OF PENNIES THAT YOU INCREASE.
SO ROUGHLY, YOU CAN ESTIMATE THAT FOR EVERY PENNY WE INCREASE, WE GET TO KEEP TWO THIRDS OF IT.
IF YOU WANT TO JUST DO KIND OF, LIKE, QUICK MATH IN YOUR HEAD.
SO THERE'S NO WAY OUT FROM THE RECAPTURE.
NO, THERE'S NO WAY OUT FROM THE RECAPTURE.
CAN YOU GO BACK TO THE SLIDE THAT SHOWED THE, THE IMPACT ON THE HOME BASED ON THE VALUE OF THE HOME? OKAY. SO I JUST WANT TO MAKE SURE THAT I'M CLEAR ON THIS.
THIS IS JUST FOR THE VATRE, THE $158.
[00:25:06]
RIGHT, BECAUSE THE I&S TAX RATE, WE'RE NOT RECOMMENDING CHANGING.THE DOLLAR 569 IS THE TAX RATE INCLUDING THE VATRE AND THE I&S RATE OF $0.27.
BUT THAT INCREASE OF $158 IS THE INCREASE FOR THE VATRE.
OKAY. YEAH. HOPEFULLY WE HAVE A SIMILAR SLIDE THAT SHOWS THE IMPACT OF THE BOND.
SO WE ARE NOT WE ARE NOT RECOMMENDING RAISING THE I&S TAX RATE WITH THE BOND.
SO THERE'S NO THERE'S NOT GOING TO BE A DIFFERENCE.
SO WE HAVE CURRENT BONDS THAT EXPIRE, AND IF THESE NEW BONDS ARE NOT APPROVED BY THE PUBLIC, THEN THOSE BONDS GO AWAY AND THAT PORTION IS NOT INCLUDED, RIGHT? IT GOES AWAY BECAUSE THEY EXPIRE.
SURE. IF THESE BONDS ARE PASSED, THAT REPLACES THAT.
CORRECT. SO THAT IT CONTINUES ON FOR HOWEVER MANY YEARS.
SO I THINK THAT WOULD BE IMPORTANT.
YOU MAY NOT HAVE IT TODAY, BUT I THINK THAT WOULD BE IMPORTANT FOR THE COMMUNITY TO KNOW IS IF BOND PASSES PROPERTY TAX REMAIN IF BOND DOES NOT PASS PROPERTY TAX IS X.
OKAY, I UNDERSTAND I GET WHERE YOU'RE GOING NOW.
GOING FORWARD TO NEXT YEAR, THE 2025 TAX RATE, IF THE BOND OR A PORTION OF THE BONDS WERE NOT TO PASS, PART OF WHAT WE WOULD DO DURING THE BUDGET PROCESS IN THE SPRING IS TALK ABOUT AS A BOARD, DO WHAT WHAT DOES THE DEBT TAX RATE LOOK LIKE IF WE JUST CONTINUE TO SERVICE THE DEBT THAT WE HAVE OUTSTANDING? DO WE NEED TO CONSIDER PAYING OFF SOME DEBT EARLY? AND THOSE KINDS OF THINGS.
SO THERE ARE TOO MANY VARIABLES TO CONSIDER THAT WOULD HAPPEN BETWEEN NOW AND NEXT YEAR, TO SAY FOR SURE THE I&S TAX RATE WOULD GO DOWN BY X AMOUNT OF DOLLARS IF THE BOND DIDN'T PASS.
DOES THAT DOES THAT MAKE SENSE? IT DOES MAKE SENSE. BUT I'M TRYING TO PUT MYSELF IN THE POSITION OF A HOMEOWNER, RIGHT.
OR JUST A TAXPAYER IN THE COMMUNITY BECAUSE THIS IS REALLY HELPFUL, RIGHT? I CAN LOOK AT THIS AND I CAN SAY, DO I THINK THAT WHAT IS BEING PROPOSED BY THIS VATRE IS WORTH IT TO ME TO PAY AN EXTRA $158 IF MY HOME IS WORTH $727,000, RIGHT? THAT'S HELPFUL INFORMATION.
SURE, I CAN MAKE THAT DECISION.
DO I VOTE YES OR I DO I VOTE NO, RIGHT, AS A AS A VOTER.
IF I AM A VOTER AND I WANT TO DECIDE HOW TO DO ON THE BOND WITHOUT THAT INFORMATION, IT'S JUST LIKE IT'S NOT REAL TO THEM, RIGHT? YES. LIKE HOW MUCH MORE IS THIS GOING TO COST ME, AND DO I THINK IT'S WORTH IT? YEAH. I TOTALLY SEE WHERE YOU'RE COMING FROM.
I'M NOT TRYING TO TO GET OUT OF CALCULATING THAT FOR YOU.
LET ME BE CLEAR ABOUT THAT. BUT I THINK IF THE IF A VOTER WERE TO VOTE NO, IT WOULD HAVE NO IMPACT ON THEIR TAX BILL THIS YEAR.
IT MAY HAVE AN IMPACT ON THEIR TAX BILL IN THE FUTURE, GIVEN A NUMBER OF OTHER VARIABLES.
SO I'M JUST I'M WORRIED IF WE WERE TO JUST COME UP WITH A NUMBER THAT IT MIGHT NOT BE REALISTIC BECAUSE OF THE OTHER VARIABLES WE'D HAVE TO TAKE INTO CONSIDERATION. BUT I MEAN, LET ME GO BACK AND KIND OF JUST LOOK AT WHAT THAT MIGHT LOOK LIKE IN THE CALCULATIONS.
AND WE CAN HAVE ADDITIONAL CONVERSATION ABOUT IT, BUT IT'S JUST BECAUSE OF THOSE OTHER VARIABLES THAT IT'S, YOU KNOW, I WOULD I WOULD HATE TO SAY, PUT SOMETHING OUT THAT SAYS, THIS IS FOR SURE WHAT WOULD HAPPEN WHEN THERE ARE OTHER VARIABLES THAT WE DON'T HAVE YET.
AND I THINK, YOU KNOW, WE HAVE A LOT OF COMMUNITY MEMBERS WHO EXPRESS INTEREST ABOUT THEIR PROPERTY TAXES, RIGHT? BECAUSE OF MOSTLY BECAUSE OF THE INCREASE IN PROPERTY VALUE.
[00:30:01]
YOUR PROPERTY TAX GOES UP.SO IF YOU BOUGHT YOUR HOME FOR $400,000, RIGHT, 15 YEARS AGO AND IT'S NOW WORTH $728,000, YOU DIDN'T BUDGET FOR THAT WHEN YOU BOUGHT THE HOME, RIGHT? SO YOUR MORTGAGE PAYMENT MIGHT BE THE SAME, BUT YOUR PROPERTY TAX IS GOING UP.
OTHERWISE I DON'T KNOW HOW THEY WOULD MAKE A DECISION.
I MEAN, YEAH, I GET I GET WHAT YOU'RE SAYING, BUT THIS IS REALLY HELPFUL.
I MEAN, THE VATRE, IT'S RIGHT THERE.
RIGHT. SO YOU CAN OBVIOUSLY, IF YOUR HOME IS WORTH $500,000, YOU'RE NOT PAYING $158, RIGHT? YOU'RE PAYING SOMETHING LESS THAN THAT.
CAN I CAN I PIGGYBACK ON WHAT YOU SAID? I'M AS IT STANDS RIGHT NOW, I'M FOR THE BOND PACKAGE AND THE WAY I'M GOING TO BE POSITIONING IT IS NOT GOING TO IMPACT YOUR BOTTOM LINE ON TAXES.
IT'S A GOOD THING, A GREAT WAY TO UPDATE THE SCHOOLS AND EVERYTHING.
AND IT'S NOT GOING TO HURT YOU ONE WAY.
BUT THEN, LIKE STEPHANIE WAS SAYING, WELL, THEY MIGHT NOT GO FOR THAT.
I SAY, WELL, WELL, WHAT HAPPEN IF WE DIDN'T PASS THE AND WHAT WOULD WHAT WOULD AN ANSWER TO THAT BE? WELL, HERE'S WHAT WE CAN DO.
BUT YEAH, THE ANSWER IS IF IF A BOND WEREN'T TO PASS, THEN IN TERMS OF YOUR TAX BILL, THERE'S A CHANCE THAT THE DISTRICT WOULD LOWER THE I&S PORTION OF THE TAX RATE IN THE FUTURE.
AND SO WE COULD CALCULATE WHAT, WHAT THAT COULD POTENTIALLY BE ABSENT THOSE OTHER VARIABLES.
I'M GLAD YOU SAID THAT AGAIN, BECAUSE THAT MADE ME THINK OF ANOTHER QUESTION.
SO IF THE BOND DOES NOT PASS, THE DISTRICT DOES NOT HAVE TO LOWER THE I&S TAX RATE.
CORRECT. AND THE BOARD WOULD HAVE TO APPROVE THAT EVERY YEAR.
THE BOARD APPROVES THAT EVERY YEAR.
AND THAT'S BASED ON SO THE YOU KNOW, WE COULD PAY OFF DEBT EARLY AND LOWER OUR TOTAL DEBT.
BUT WE COULDN'T USE IT TO LET'S SAY, FOR EXAMPLE THE TECHNOLOGY BOND FAILED.
YOU CAN'T USE YOU CAN ONLY USE I&S, TAX RATE MONEY TO PAY DEBT.
YOU CAN'T USE IT TO PAY FOR THINGS.
SO WE WOULD BE IF THE BOND FAILED, THEN WE WOULD BE LOOKING AT M&O MONEY TO PAY FOR THINGS THAT WE NEED THAT WOULD HAVE BEEN PAID FOR WITH THE BOND, AND THEN WE WOULD BE LOOKING AT WHAT DO WE WANT TO DO ON THE DEBT SIDE? DO WE WANT TO PAY OFF DEBT EARLY OR DO WE WANT TO LOWER THE DEBT TAX RATE? KIM, I JUST WANT TO I THINK A CONVERSATION THAT WE HAD ONE TIME WAS THAT.
BUT THERE ARE WAYS TO DO IT IS WHAT I WALKED AWAY WITH.
THERE ARE WAYS TO DO WHAT? TO USE THAT MONEY FOR SOMETHING ELSE.
IN OTHER WORDS, THERE I DON'T REMEMBER WHAT THE EXACT SITUATION WAS, BUT DIDN'T YOU? AND I'M NOT PUTTING WORDS IN YOUR MOUTH.
I BET WHAT YOU'RE REMEMBERING IS THAT THERE WE DO HAVE.
WE CAN USE SOME OF OUR TIRZ MONEY.
YES, TO PAY FOR CAPITAL PROJECTS.
IF WE DON'T HAVE AUTHORIZED BOND MONEY.
NOW, THAT TIRZ MONEY ONLY GOES SO FAR, SO IT'S NOT NEAR ENOUGH TO PAY FOR THE ENTIRE BOND PROGRAM, RIGHT? BUT IF A BOND WERE TO FAIL AND AND WE HAD SOMETHING BREAK THAT WE ABSOLUTELY HAD TO BUY ASSUMING THAT IT IS SOMETHING THAT WOULD QUALIFY FOR TIRZ EXPENDITURES, WE COULD USE IT.
WE COULD USE SOME OF THE TIRZ MONEY BEFORE WE CONSIDER OUR M&O.
THANK YOU. YEAH, I THINK ONE THING WE WOULD WANT TO CALCULATE ALONG WITH THIS, AND I DON'T KNOW WHAT THIS LOOKS LIKE, IS THE COST OF DEFERRING MAINTENANCE. RIGHT.
IF IF THE TAX IF THE BOND FAILED AND OVER TIME, DEFINITELY IT MAKES SENSE TO BELIEVE THAT OVER TIME IF WE DIDN'T HAVE A BOND THAT THE TAX RATE WOULD SLOWLY DROP.
RIGHT? BUT THEN WHAT WOULD THE COST IN THE FUTURE BE? I JUST HAD AN AIR CONDITIONER GO OUT THIS WEEKEND.
RIGHT. AND LUCKILY IT WAS A SMALL LITTLE PART, RIGHT? BUT IF YOU DON'T CLEAN IT, IF YOU DON'T DO THINGS TO IT OVER TIME IT COSTS MORE.
[00:35:02]
AND THEIR ARE DISTRICTS AROUND US WHO ARE REBUILDING COMPLETE BUILDINGS RIGHT NOW BECAUSE THEY FAILED BOND PROGRAMS. AND SO I THINK THERE'S I THINK WE WANT TO LOOK AT THIS REAL HOLISTICALLY, RIGHT.AND NOT JUST KIND OF SAY, WHAT WOULD THERE BE A THREE CENT DROP IN THE TAX RATE OR A TWO CENT DROP IN THE TAX RATE OR WHATEVER IS WHAT ARE THE LONG TERM CONSEQUENCES OF THAT ALSO? SO THAT THAT'S SOMETHING WE MAY WANT TO MAKE PART OF THE CONVERSATION.
JUST TO KIND OF TIE A BOW ON THAT DISCUSSION, I WILL I WILL GO BACK THROUGH THE TAX RATE CALCULATIONS AND SORT OF PLUG IN SOME OF THOSE ASSUMPTIONS AND SEE IF I CAN GET A RANGE FOR YOU, AND THEN I'LL PUT THAT IN HOME BASE.
I WANT TO ADDRESS JUST A COUPLE ITEMS AND STAY ON THIS SLIDE IF WE CAN.
MY TAKEAWAY FROM THIS SLIDE IS, I THINK WHAT YOU'RE SAYING IS AS TO THE OVERALL PROPERTY TAX BILL, WHATEVER INCREASE THE AVERAGE HOMEOWNER IN FRISCO WOULD EXPERIENCE, ONE FIFTH OF THAT ROUGHLY WOULD BE DUE TO OUR TAX INCREASE.
IT'S 20.8% OR I'M SORRY, 0.208%.
SO ONLY ONE FIFTH OF THAT IS ON THE ISD THE OTHER 4/5 IS RELATED TO APPRAISAL VALUES GOING UP, WHICH WE HAVE NO CONTROL OVER OBVIOUSLY.
AND SO THAT CERTAINLY GIVEN THAT THERE IS A VALUE INCREASE, YOU KNOW, YEAR OVER YEAR FROM 23 TO 24, ONE WOULD THINK THAT SOME TECHNIQUE, COMPRESSION OR OTHERWISE THROUGH THE LEGISLATIVE MEANS COULD ADDRESS THE OTHER 4/5 OF THE HIGHER BILL GOING UP.
THAT'S NOTHING WE CAN CONTROL.
THE OTHER PIECE I WANTED TO TALK ON IS AND THIS IS WHERE I LOSE YOU A LITTLE BIT ON ON TIER TWO, PARTICULARLY RELATED TO THE COPPER PENNIES.
THE BIGGEST ISSUE I HAVE WITH THIS TIER, WITH THIS VATRE AT ALL, IS THE RECAPTURE PIECE THAT THE AMOUNT OF MONEY WE'RE RAISING VERSUS THE AMOUNT OF MONEY WE'RE SHIPPING AWAY.
AGAIN, THAT IS ANOTHER LEGISLATIVE THING THAT WE CANNOT CONTROL.
I WOULD SAY WHAT CAN BE DONE? I KNOW THIS IS A LEGISLATIVE QUESTION, SO THIS IS WHERE I'M GOING WITH THAT.
WHAT CAN BE DONE LEGISLATIVELY TO ADJUST THE RECAPTURE PIECE OF THAT SO THAT WE KEEP MORE OF IT.
LIKE, IS IT WITHIN THE LEGISLATIVE PURVIEW? COULD THE LEGISLATURE LET ME ASK IT ANOTHER WAY? COULD THE LEGISLATURE GO INTO SESSION THIS SPRING, DO SOMETHING WITH THE RECAPTURE CALCULATION ON THE COPPER PENNIES SO THAT OF OUR $19 MILLION WE GET TO, WE ONLY SHIP AWAY FOUR OF THAT RATHER THAN EIGHT OF THAT.
SO. AND HAS THAT BEEN DISCUSSED IN THE PAST? THEY ABSOLUTELY COULD DO SOMETHING TO CHANGE THE FORMULA AS IT RELATES TO RECAPTURE.
THAT IS A WHAT THAT MIGHT LOOK LIKE IS PROBABLY A LOADED QUESTION, BECAUSE THE WHOLE NATURE OF THE STATE FUNDING FORMULA IS BASED ON ESSENTIALLY EQUITY ACROSS THE STATE.
SO YOU HAVE SOME DISTRICTS THAT ARE PROPERTY WEALTHY, THAT IF YOU DIDN'T HAVE A RECAPTURE MECHANISM IN PLACE, RIGHT, YOUR DISTRICTS THAT ARE PROPERTY WEALTHY WHICH DISTRICTS DON'T NECESSARILY CONTROL HOW PROPERTY WEALTHY THEY ARE.
AND SO THE RECAPTURE MECHANISM THAT'S BEEN IN PLACE IN THE FUNDING FORMULA IS MEANT TO EQUALIZE THE AMOUNT OF MONEY THAT DISTRICTS CAN HAVE SO THAT YOU DON'T HAVE DISTRICTS THAT YOU DON'T HAVE, YOU KNOW, HAVES AND HAVE NOTS, ESSENTIALLY, I MEAN.
BUT THERE IS THERE ARE THINGS THAT THEY CAN DO TO ADJUST RECAPTURE.
IT'S JUST A PIECE OF THE FORMULA.
SO THEY COULD RAISE THE GUARANTEED YIELD ON THE COPPER PENNIES.
AND THAT WOULD ALLOW US TO KEEP MORE OF THAT TAX REVENUE.
RIGHT NOW, I THINK IT'S SET AT 80% OF THE BASIC ALLOTMENT.
[00:40:02]
IT'S JUST INDEXED.SO IF THE BASIC ALLOTMENT GOES UP, THAT INDEX IS STILL 80%.
SO WE GET TO KEEP MORE MONEY, BUT THE PROPORTION DOESN'T CHANGE.
OKAY. AND THAT'S WHY WHEN I, WHEN I THINK YOU AND MR. LOWE, THERE WAS A COMMENT THAT THERE WAS NO WAY OUT FOR FROM RECAPTURE.
I'M LIKE UNDER THE CURRENT FORMULA.
YES. HOLD ON. YEAH. THERE'S NO WAY FOR US TO DO THAT, RIGHT.
THERE IS A WAY FOR AUSTIN TO DO THAT.
CORRECT. AND SO I WANT TO MAKE SURE THAT THAT'S AWARE TO PEOPLE LISTENING HERE IS THAT IS THAT THERE IS A WAY TO REDUCE THIS EIGHT OUT OF THIS $19 MILLION FROM GOING ELSEWHERE. IT JUST ISN'T ON THIS BOARD.
AND I AGREE, THERE'S A LOT OF GOOD IDEAS THAT CAN MATERIALIZE IN THE SPRING TO THAT IDEA, AND WHO KNOWS WHAT THAT WOULD LOOK LIKE? WHEN WOULD THAT TAKE EFFECT? DEPENDS ON IT DEPENDS ON THE THE BILL.
TYPICALLY WE'VE SEEN PROPERTY TAX LEGISLATION OR CHANGES TO THE FORMULA TAKE EFFECT IMMEDIATELY.
OR, YOU KNOW, BEGINNING WITH SEPTEMBER, THE SEPTEMBER 1ST AFTER THE LEGISLATIVE SESSION ENDS.
RIGHT. SOMETIMES DEPENDING JUST DEPENDING UPON THE CHANGE, IF IT'S ADMINISTRATIVELY GOING TO TAKE TEA A LONG TIME TO PUT IT IN PLACE, IT MIGHT BE EFFECTIVE A YEAR LATER, BUT TYPICALLY WE'VE SEEN IT TAKE EFFECT IMMEDIATELY.
OKAY. THERE'S OKAY. ALL RIGHT.
THANK YOU. I I'VE HAD DISCUSSIONS WITH I MEAN, IT MIGHT BE SELF-SERVING.
YEAH, MAYBE IT'S BECAUSE I LIVE IN A PROPERTY RICH AREA, BUT I JUST HAVE A PROBLEM WITH IT.
AND I'VE TALKED TO A LOT OF LEGISLATORS, LEGISLATORS WHO ARE NOT EVEN IN OUR AREA.
AND IT SEEMS LIKE THAT WOULD BE A HARD NUT TO CRACK TO GET RID OF IT.
HOWEVER, SOME OF THEM SEEM OPEN TO AND WHO KNOWS WHAT HAPPENED, BUT OPEN IT.
MAYBE DOING SOMETHING, ADJUSTING IT, NOT DOING AWAY WITH ROBIN HOOD, BUT TO ADJUST IT.
THAT'S JUST A COMMENTARY ON WHAT MR. HILL WAS SAYING. ME? I'M REFLEXIVELY AGAINST RAISING TAXES.
I HEAR THAT AT FIRST MY FIRST THOUGHT IS, NO, I DON'T WANT TO DO IT.
AND I'M ABOUT ALL KINDS OF FIXES, AND THERE ARE CERTAIN REASONS I WOULD BE MORE OPEN TO IT.
LIKE IF WE WERE TALKING ABOUT, SAY, IF WE WANT TO MAKE OUR TEACHERS PAID MORE THAN WHAT THE AVERAGE TEACHER IN THE AREA IS PAYING, I'D BE OPEN TO SOMETHING LIKE THAT. BUT OUTSIDE OF THINGS LIKE THAT, THE THINGS I WOULD LIKE TO LOOK AT FIRST ARE SOME OF THE VERY GOOD IDEAS THAT THE IST PRESENTED TO THE BOARD ABOUT SAVING MONEY, ABOUT FIGURING OUT WHY PEOPLE ARE LEAVING.
BECAUSE THE FACT OF THE MATTER, IF WE GOT ALL THOSE PEOPLE, WHICH WE PROBABLY NEVER WOULD BACK IN THE DISTRICT WE WOULD BE ON BUDGET, WE WOULDN'T HAVE TO RAISE TAXES.
ISN'T THAT MORE OR LESS TRUE? BECAUSE I DON'T THINK I'M FOLLOWING YOU.
I DON'T I DON'T THINK IF OUR TURNOVER WAS LOWER, WE WOULD BE WE WOULD HAVE A MORE BALANCED BUDGET.
THE STUDENTS I'M TALKING ABOUT THE.
OH, STUDENTS. I'M SORRY. I'M TALKING ABOUT.
I'M SORRY. LET ME MAKE MYSELF CLEAR.
I'M TALKING ABOUT THE STUDENTS THAT WE'VE LOST TO PRIVATE SCHOOLS, TO CHARTER SCHOOLS, HOME SCHOOL.
OKAY. NO. IF WE I THINK OUR ENROLLMENT AT ONE OF YOU IS GOING TO HAVE TO HELP ME REMEMBER THE TOTAL DECREASE IN ENROLLMENT FROM 2023 TO 2024, BUT IT WAS ABOUT 5%.
IF WE IF WE HAD IF IT WAS LIKE 800 KIDS, I THINK WE HAVE 5% OF THE KIDS THAT WERE [INAUDIBLE] 350 KIDS.
SO 350 KIDS, IF WE HAD THOSE KIDS STILL IN THE DISTRICT.
WE THAT WOULD NOT THAT WOULD NOT GENERATE ENOUGH REVENUE TO TO BALANCE OUR BUDGET.
MY UNDERSTANDING WAS THAT WE HAD ABOUT TEN TIMES THAT AMOUNT OF KIDS THAT WOULD BE ELIGIBLE TO GO INTO BE IN FISD YOU'RE TALKING ABOUT THE NUMBER OF STUDENTS THAT THAT LIVE IN OUR BOUNDARIES THAT GO TO PRIVATE.
EXACTLY WHAT I'M TALKING ABOUT.
OKAY. AND IF WE WERE ABLE AND LIKE I SAID, WE NEVER GET THEM ALL BACK.
BUT IF WE WERE TO PURSUE THAT, IF WE WERE TO PURSUE OTHER STRATEGIES, IT JUST SEEMS SO MUCH BETTER.
I SEE WHAT YOU'RE SAYING. OKAY.
I REMEMBER THAT CONVERSATION NOW.
BEFORE YOU BEFORE YOU DO THAT, I KNOW THAT WE I KNOW THAT THERE'S A DISTINCT DIFFERENCE BETWEEN STUDENTS THAT LEFT THE DISTRICT TO GO TO OTHER TO PURSUE OTHER INSTITUTIONS.
[00:45:01]
BUT WE CAN'T ACCOUNT FOR STUDENTS THAT WERE NEVER HERE THAT CHOSE PRIVATE OR CHARTER.AND SO I THINK THAT'S HOW THAT'S THE NUMBER DECREASE.
THAT IS ABSOLUTELY CORRECT, MADAM PRESIDENT.
AND WHAT I WOULD SAY IS I WOULD DO SO MANY THINGS BEFORE RAISING TAXES.
LIKE I SAID, I'M REFLEXIVELY AGAINST IT, BUT I'M NOT TOTALLY AGAINST IT.
YEAH. AFTER WE'VE EXHAUSTED, AFTER WE'VE LOOKED AT THAT, WHY ARE THESE PEOPLE LEAVING AFTER WE'VE CONSIDERED SOME OTHER THINGS TO RAISE MONEY? COREY SENT ME, AND I KNOW THIS IS JUST A DROP IN THE A BUTTON IN THE BUCKET, BUT HE SENT ME THE MONEY ON HOW MUCH WE'RE MAKING OFF OF OUR TENNIS.
YEAH. AND I WAS LIKE, ARE YOU SERIOUS? AND SO I JUST THINK WE COULD BE SO MUCH MORE CREATIVE IN TRYING TO RAISE THE MONEY.
I'VE ONLY BEEN HERE A COUPLE OF YEARS, BUT, YOU KNOW, WHEN I BROUGHT UP THE FACT THAT WE KIND OF OVERSPENT ON SOFTWARE AND THERE'S THINGS THAT WE OVERSPENT ON.
IF WE COULD JUST AND THAT'S NOT BECAUSE OF ANY, YOU KNOW, BODY WANTING TO DO THAT.
I JUST WANTED TO LET YOU KNOW MY POSITION.
WE NEED TO TIGHTEN UP ON THINGS LIKE THAT BEFORE WE GO TO RAISE TAXES.
AND WE'RE NOT EVEN GETTING ALL THE TAXES.
WE'RE ONLY GETTING TWO THIRDS OF IT.
I JUST THAT JUST GRATES ME SO.
JUST TO MAKE SURE THAT WE'RE MAINTAINING, WE'RE STAYING ON TRACK WITH THE AGENDA FOR TODAY.
EVERYTHING THAT YOU SHARED, MR. LOWE, IS VALID.
I THINK THAT WE CAN, THROUGH OUR WORKSHOPS AND THINGS THAT WE HAVE TASKED OUR STAFF TO COME UP WITH THIS YEAR TO HELP US GET SOME OF THE ANSWERS TO YOUR QUESTIONS. BUT FOR TODAY LET'S PLEASE KEEP OUR CONVERSATION ON THE AGENDA.
BUT AT THE END OF THE BUDGET PROCESS THIS SPRING, WE TALKED ABOUT KIND OF THE LIST OF THINGS THAT WE WOULD BE LOOKING AT OVER THE COURSE OF THIS YEAR TO MAKE CHANGES TO, TO GET BACK TO A BALANCED BUDGET.
ABSENT ANYTHING COMING OUT OF THE LEGISLATURE.
AND THE TWO BIG THINGS ON THAT LIST THAT WOULD GET US NOT EVEN ALL THE WAY, BUT A GOOD PORTION OF THE WAY THERE WOULD BE TO LOOK AT USING SOME OF OUR TIRZ FUNDS, REDOING THAT AGREEMENT WITH THE CITY, AND USING SOME OF OUR TIRZ FUNDS TO HELP PAY FOR THE COST OF OPERATING OUR FACILITIES, WHICH WHICH THAT IS IN PROGRESS.
THAT WORK IS IN PROGRESS RIGHT NOW.
WE EXPECT TO HAVE THAT ALL SQUARED AWAY BY SEPTEMBER, OCTOBER AT THE LATEST, SO THAT WE WILL BE ABLE TO USE THAT MONEY TO OFFSET THIS YEAR'S EXPENSES. I ANTICIPATE THAT WE'RE TALKING NO MORE THAN $15 MILLION ON TO THAT END.
RIGHT. AND REMEMBER, WE ADOPTED A $30 MILLION DEFICIT.
THIS THEN IS THE SECOND BIG CHUNK.
BUT WHETHER OR NOT HOW MANY KIDS WE ACTUALLY ENROLL THROUGH OPEN ENROLLMENT, IF THAT BECOMES SOMETHING THAT WE DO, YOU KNOW, WE CAN ONLY ESTIMATE. AND SO THAT'S NOT A GUARANTEE.
IT DEFINITELY WOULD HELP OUR BUDGET.
AND THEN, YOU KNOW, BEYOND THAT WE'RE TALKING CHANGES, MAJOR CHANGES TO PROGRAMS AND SERVICES THAT WE OFFER IN ORDER TO HAVE ANY KIND OF SIGNIFICANT IMPACT ON THE BUDGET.
I THE BUDGET OWNERS SO PRINCIPALS AND DEPARTMENT HEADS SCRUB THEIR BUDGETS CONSTANTLY, AND I HAVE NOT LET THEM STOP SCRUBBING THEIR BUDGETS PASSED THE BUDGET ADOPTION PROCESS.
SO WE STILL TALK ABOUT IT ALL THE TIME.
LIKE THERE'S YOU CAN'T WE CAN'T SCRIMP AND SAVE OUR WAY OUT OF A $30 MILLION BUDGET DEFICIT.
WE HAVE TO LOOK AT MAKING SOME MAJOR CHANGES TO OUR EXPECTATIONS.
[00:50:04]
SO I MEAN THAT THAT'S JUST JUST TO REMIND THE BOARD KIND OF THE CONVERSATIONS THAT WE HAD BACK IN THE SPRING AND, AND WHERE WE ARE HERE.THE ONLY OTHER THING THAT I KIND OF WANT TO REMIND YOU GUYS OF IS THESE AND THIS KIND OF GOES TO SOMETHING MR. HILL SAID A MINUTE AGO.
THESE PENNIES IN THE TAX RATE WERE AT ONE POINT APPROVED BY OUR COMMUNITY.
SO AT ONE POINT, THE COMMUNITY HAD APPROVED ALL 17 ENRICHMENT PENNIES, BACK IN 2018.
IN 2019, THE STATE CAME AND ESSENTIALLY TOOK THREE AND A HALF OF THOSE PENNIES AWAY FROM US.
AND SO THAT WE'RE AT THAT POINT NOW.
I HAVE JUST WANT TO MAKE A COUPLE OF POINTS, ONE IS WITH RESPECT TO THE NUMBER OF STUDENTS THAT MR. LOWE HAS MENTIONED.
SO ONE THING THAT I'M THINKING IS MAYBE YOU CAN CORRECT ME IS IF WE HAVE SOME OF THE STUDENTS BACK IN OUR DISTRICT OR EVEN IF THROUGH THE OPEN ENROLLMENT, THEN THERE ARE ALSO COSTS RELATED TO THE ADDING PROGRAMING FOR THOSE KIDS.
BUT THEN WHEN YOU REACH A CERTAIN POINT, YOUR COSTS START TO GO UP AS WELL.
EXACTLY. IT'S A SMALL, YOU KNOW, IT HAS TO BE A SMALL BALANCE.
SO THE THING IS, YOU KNOW, LIKE WHEN THE CHIEF STUDENT OFFICER IS LEAVING, THEN, YOU KNOW, THERE'S A EFFORT MADE IN TO ENSURE THAT THE THE WORK IS BEING DISTRIBUTED AMONGST OTHERS.
SO I STRONGLY ENCOURAGE YOU JUST MENTIONED THAT, YOU KNOW, THE DISTRICT IS DOING EFFORTS TO ENSURE THAT THE COST REDUCTION EFFORT IS CONTINUING, AND I STRONGLY ENCOURAGE TO LOOK INTO ALL DEPARTMENTS LIKE MR. LOWE HAS MENTIONED ABOUT THE SOFTWARE, YOU KNOW, ANY AUDITING THAT CAN BE, YOU KNOW, CONTINUED, IF YOU ARE ALREADY DOING, THAT'S GOOD, BUT IF YOU CAN PUT MORE EFFORT IN THOSE AREAS AND THEN LOOK FOR OPPORTUNITIES, THAT WILL BE GOOD.
I KNOW WE PROBABLY HAVE TO MOVE ON TO THE BOND HERE SOON, RIGHT? YEAH. ARE WE OKAY ON TIME? OKAY. SO SOMETHING THAT MR. HILL SAID MADE ME THINK OF SOMETHING AS IT RELATES TO THE RECAPTURE SO.
SO FOR US TO GET $11.5 MILLION IN THIS VATRE THAT WE CAN USE FOR OUR TEACHER INCREASES.
CORRECT? WE HAVE TO RAISE $19.5 MILLION BECAUSE $8 OF THAT MILLION GOES TO THE STATE.
SO I THINK JUST KIND OF BACK TO MY POINT EARLIER AROUND THE COMMUNICATION TO THE COMMUNITY, AROUND HERE'S HOW MUCH IT'S GOING TO COST ON AVERAGE BASED ON THIS HOME PRICE OR HOME VALUE, I SHOULD SAY, I THINK A COMPONENT OF THAT SHOULD ALSO BE WE HAVE TO RAISE OUR PHRASES ISN'T THE RIGHT WORD, BUT WE HAVE TO GENERATE.
I THINK THAT'S AN IMPORTANT PIECE FOR PEOPLE TO UNDERSTAND BECAUSE I THINK THEY LOOK TO US RIGHT ON THIS BOARD AND AS A LEADERSHIP TEAM OF THE ONES WHO ARE MAKING THESE DECISIONS.
SO IF WE ASKED FOR $11 MILLION, WHICH IS WHAT WE NEED, AND YOU APPROVE THAT, THAT DOES NOT GET US TO THE GOAL OF GIVING THE TEACHERS THE RAISE THAT WE THINK WE NEED TO GIVE THEM.
AND IT'S CONFUSING, RIGHT? YEAH. AND WE HAVE NO WE HAVE NO AUTHORITY OVER THAT.
BUT I JUST THINK THAT SHOULD BE PART OF THE COMMUNICATION.
AND THAT KIND OF LEADS ME TO MY SECOND PART THAT I WANTED TO MENTION.
I THINK I MENTIONED THIS LAST TIME WE DISCUSSED THIS A WEEK OR TWO AGO, BUT I DO THINK A COMMUNICATION PLAN TO THE COMMUNITY BEFORE AUGUST 19TH IS IMPORTANT, BECAUSE THAT IS AT LEAST THEIR FIRST CHANCE TO PROVIDE FEEDBACK.
I REALIZE THEY'LL HAVE A CHANCE AFTER, BUT AT THAT POINT, IT'S OUT OF THIS BOARD'S HANDS.
[00:55:04]
IT'S IN THE COMMUNITY'S HANDS.SO I THINK JUST TO MAKE SURE THAT WE'RE BEING AS TRANSPARENT AS POSSIBLE TO PUT THIS INFORMATION OUT THERE, I MEAN, PUTTING THE NEWSPAPERS GREAT AND PUTTING IT AS AN AGENDA ITEM IS GREAT. BUT I THINK SOME MORE PROACTIVE COMMUNICATION, WHETHER IT BE AN EMAIL, SOCIAL MEDIA POSTS, COMBINATION OF THE OF THE TWO OTHER MECHANISMS THAT WE HAVE TO COMMUNICATE, PUTTING SOMETHING ON THE WEBSITE SO THAT PEOPLE KNOW SO THAT IF THEY WOULD LIKE TO COME ADDRESS THE BOARD ON THIS MATTER, THEY CAN DO THAT ON THE 19TH.
OH, MANDY'S NOT NOT HERE THIS MORNING.
BUT I KNOW THAT COMMUNICATIONS PUT OUT A STORY ALREADY ON THE BOND PROPOSAL.
AND SO I'LL FOLLOW UP WITH THEM, TOO, ABOUT THE THE TAX RATE PIECE.
JUST SO THAT I KNOW WE WERE JUST DISCUSSING THE COMMUNICATION PIECE OF IT, IT MAY BE HELPFUL TO JUST LET THE BOARD KNOW EXACTLY WHAT YOU ALL'S. WE DON'T WANT TO, WE DON'T WANT TO SIT AND TELL YOU GUYS HOW TO DO AND WHAT TO DO.
I, I DON'T WANT TO SPEAK FOR MANDY, BUT I KNOW SHE HAS A VERY ROBUST AND WELL THOUGHT OUT PLAN.
JUST, YOU KNOW, SO THAT EVERYONE IS REMINDED THIS BOARD HAS NEVER EXPERIENCED A VATRE OR A BOND.
I WANT TO GO AHEAD AND MOVE ON TO THE BOND.
I DID ASK ESTHER TO COME AND DO SORT OF TAKE A STEP BACK FROM WHERE WE WERE LAST WEEK AND DO JUST LIKE, A KIND OF HIGH LEVEL BONDS 101 FOR YOU GUYS.
JUST BECAUSE THE THE PROCESS FOR A BOND ELECTION I KNOW IS NEW TO ALL OF YOU.
THERE YOU GO. SO JUST AS A PREVIEW, I AM NOT AN ACCOUNTANT, AND SO THIS WILL BE SOLELY VERY SIMPLE PROCESS PRESENTATION.
SO BOND ELECTION STEPS ARE REALLY MULTI.
ONCE WE'VE GOT A PRELIMINARY LIST OF DISTRICT NEEDS, WE'LL RECEIVE COMMUNITY IMPACT ON THAT.
THEN WE GO OUT AND EDUCATE THE COMMUNITY ON OUR BOND PROGRAM.
SO ALL OF THIS IS THE STEPS THAT GO ON BEFORE THE ELECTION.
AND THEN THE NEXT SLIDE ARE ALL THE THINGS THAT HAPPEN AFTER THE BOND ELECTION TAKES PLACE.
SO I KNOW THERE WERE A LOT OF QUESTIONS AT THE LAST WORKSHOP ABOUT ALL THESE KIND OF ITEMS, AND I JUST WANT TO MAKE SURE YOU ALL UNDERSTAND THAT A LOT OF THE SPECIFICS ABOUT SITE BASED PROJECTS, SCOPES, SCHEDULES, PROPOSALS FROM ARCHITECTS AND CONTRACTORS, PROVIDER SELECTION AND CONTRACTING WITH THOSE PEOPLE, NEGOTIATING THE PRICES THAT WE'LL PAY TO OUR ARCHITECTS, ETC.
THE BIG THING I WANT TO HIGHLIGHT TO YOU IS THE LAST ORANGE-Y RED OPTION AT THE VERY BOTTOM IS THAT THE BOARD'S RESPONSIBILITY IS TO CONTINUE TO MONITOR DISTRICT NEEDS AND POTENTIALLY REPURPOSE FUNDS WITHIN VOTER APPROVAL.
[01:00:04]
SO WHAT THIS MEANS IS THAT IF WE HAVE A PROPOSITION THAT'S BEEN APPROVED BY THE PUBLIC, AND AS WE'RE WORKING THROUGH THE PROJECTS, WE'RE MAYBE UNDER BUDGET ON A PARTICULAR PROJECT, OR IT COMES UP THAT A DIFFERENT BUILDING HAS A REALLY HIGH NEED, AND WE NEED TO REPURPOSE FUNDS THAT WE WERE ORIGINALLY PLANNING TO USE HERE TO GO OVER TO THIS BUILDING.IF WE HAVE A BROAD APPROVAL FROM THE VOTERS AS TO A PARTICULAR PROPOSITION, THE BOARD HAS THE AUTHORITY WITHIN THAT VOTER APPROVAL TO MOVE SOME FUNDS TO ADDRESS THOSE CONCERNS.
SO IT'S A VERY IMPORTANT COMPONENT OF WHAT YOUR RESPONSIBILITY AS A BOARD IS, IS TO MONITOR SPENDING AFTER THE BOARD APPROVES, AFTER THE VOTERS APPROVE THE BONDS, TO SEE IF SOME OF THE FUNDS NEED TO BE REDISTRIBUTED TO MEET THE DISTRICT NEEDS OVER TIME.
BECAUSE A BOND PROGRAM IS SOMETHING THAT IS CONTEMPLATING USE OF FUNDS OVER A VERY LONG PERIOD OF TIME, AND DISTRICT NEEDS MAY CHANGE OVER THAT PERIOD OF TIME, AND THE BOARD'S RESPONSIBILITY IS TO MONITOR THAT AND MAKE ADJUSTMENTS AS NEEDED, SO LONG AS THAT FITS WITHIN THE VOTER APPROVAL.
SO WHERE CAN YOU FIND THE LAW ON BONDS? IT'S IN A WHOLE LOT OF PLACES.
BONDS TOUCH ON BOTH STATE AND FEDERAL LAW, AND I'VE JUST LISTED A FEW OF THE BIG ONES HERE.
BIG ONES IS CHAPTER 45 OF THE TEXAS EDUCATION CODE.
THERE'S ALSO THE TEXAS ELECTION CODE, WHICH GOVERNS HOW THE BONDS ARE PUT TOGETHER.
THIS IS WHY WE ALWAYS RECOMMEND GETTING BOND COUNCIL.
SO WHAT IS A BOND GENERALLY? THE DEFINITION IS IN THE TEXAS GOVERNMENT CODE, IT SAYS AN INSTRUMENT INCLUDING A BOND CERTIFICATE, NOTE OR OTHER TYPE OF OBLIGATION AUTHORIZED TO BE ISSUED BY AN ISSUER UNDER A STATUTE. IN LAY TERMS, WHAT THAT REALLY MEANS IS AN INSTRUMENT, IS A DOCUMENT OR CONTRACT, AND AN OBLIGATION IS A DEBT TO A LENDER.
IT IS A DEBT TAKEN OUT FOR A LARGE PURCHASE, TYPICALLY RELATED TO REAL PROPERTY THAT MEANS LAND OR A BUILDING, AND THEN PAID BACK TO THE LENDER OVER A SET PERIOD OF TIME. THE LEGISLATION DEFINES THAT TIME PERIOD FOR A BOND REPAYMENT AS BETWEEN 3 AND 40 YEARS FOR SCHOOL DISTRICTS, AND THERE IS INTEREST ON THAT LOAN THAT WE WILL NEED TO PAY OUT OF OUR S&I FUNDS THAT KIM MENTIONED EARLIER.
SO WHAT CAN BOND MONEY PAY FOR? THE TEXAS EDUCATION CODE COVERS THIS UNDER SECTION 45.001, THERE'S A SPECIFIC LIST OF WHAT BONDS CAN PAY FOR.
WHAT CAN BOND MONEY NOT PAY FOR? OKAY, SO ALL THE THINGS THAT WE THINK ABOUT THAT FALL UNDER THE M&O SIDE OF THE TAX RATE THAT KIM TALKED ABOUT ARE THINGS THAT CANNOT BE COVERED BY A BOND.
TALKING ABOUT SALARIES, EMPLOYEE BENEFITS, UTILITIES, CURRICULUM MATERIALS, SCHOOL SUPPLIES, ALL THE THINGS THAT GO INTO OPERATIONS OF OUR DAY TO DAY WORKINGS AS A SCHOOL DISTRICT CANNOT COME FROM BOND FUNDS.
CORRECT ME IF I'M WRONG. OKAY.
OKAY. SO WHY WOULD WE GO WITH A BOND VERSUS USING OTHER FUNDS THAT WE'VE RAISED FROM OUR M&O TAX RATE? IT'S REALLY ALL ABOUT TIMING.
SO AS SOON AS THE VOTERS APPROVE A BOND, IT DOESN'T MEAN THAT WE IMMEDIATELY INCUR DEBT.
WE ONLY INCUR DEBT AS THOSE BONDS ARE SOLD.
SO ONCE THE VOTERS APPROVE, WE CAN SPACE OUT WHEN WE ACTUALLY SELL BONDS AND WHEN WE INCUR DEBT.
THAT ALLOWS US TO PLAN OUT OUR BUDGET OVER A LONG PERIOD OF TIME AND PLAN OUT, WHEN ARE WE GOING TO START TAKING ON THIS MAJOR PROJECT VERSUS THAT MAJOR PROJECT, AND HOW ARE WE GOING TO PAY FOR THINGS IN OUR BUDGET.
[01:05:02]
IT ALLOWS US TO SPREAD OUT PROJECT COSTS OVER A LONG PERIOD OF TIME, TO PLAN AHEAD BASED ON OUR NEEDS, AND TO BUILD OR FIX WITHOUT IMPACTING OUR OPERATIONS. RIGHT.WE WANT TO BE ABLE TO CONTINUE DOING THE WORK OF EDUCATING OUR STUDENTS.
ALL THE THINGS WE HAD ON THAT PREVIOUS SLIDE THAT WE COULDN'T PAY FOR OUT OF BOND MONEY WITHOUT SACRIFICING DOING THE MAJOR PROJECTS THAT NEED TO BE DONE, FIXING THINGS, UPDATING THINGS, MAKING SURE OUR TECHNOLOGY AND SECURITY ARE MOVING ALONG WITH THE TIMES.
SO HOW TO BOND PROPOSITIONS APPEAR ON THE BALLOT.
THE LEGISLATURE HAS MADE SURE THAT WE CAN'T HIDE THE BALL.
OKAY, SO THERE'S BEEN A LOT OF WORK DONE BY THE LEGISLATURE IN RECENT YEARS TO ORGANIZE HOW WE ACTUALLY PLACE THINGS ON THE BALLOT FOR VOTERS TO SEE. IT USED TO BE THAT SCHOOL DISTRICTS WOULD JUST PUT ONE BIG PROPOSITION ON THE BALLOT, AND THE VOTERS WOULD JUST VOTE ON THAT ONE PROPOSITION, AND THEN THE SCHOOL DISTRICT COULD DECIDE IF THEY WERE GOING TO SPEND THAT MONEY ON A NEW SCHOOL BUILDING OR A GYMNASIUM, OR IF THEY WANTED TO SPEND IT ON A PLAYGROUND OR ON A $50,000 PERSON STADIUM FOR FOOTBALL, THAT IS NO LONGER THE CASE.
SO WE CAN PUT TOGETHER ALL OF THOSE BASICS THAT WE FIRST TALKED ABOUT THE BUYING OF LAND AND THE BUILDING OF BUILDINGS, AND THEN FIXING BUILDINGS AND FIXING BUSSES OR BUYING BUSSES.
WE CAN PUT THOSE THINGS ALL TOGETHER.
BUT IF WE'RE TRYING TO BUILD A STADIUM OVER A THOUSAND SEATS, NATATORIUM, THAT MEANS A SWIMMING FACILITY, GYMS, PLAY AREAS OR PLAYGROUNDS, PERFORMING ARTS CENTERS, OR TECHNOLOGY THAT'S NOT DIRECTLY REQUIRED FOR THE INFRASTRUCTURE OF A PARTICULAR BUILDING.
THOSE THINGS HAVE TO BE AS SEPARATE ITEMS. SO WE AS A DISTRICT CAN'T HIDE THE BALL AND SAY, WE NEED $200 MILLION TO BUILD THIS PROJECT AND THEN USE $150 (MILLION) OF THAT FOR A STADIUM. WE HAVE TO TELL THE VOTERS WHAT IT IS THAT WE'RE GOING TO BE USING THE MONEY FOR WITHIN THESE CATEGORIES.
SO THERE'S SOME VERY COMMON MISCONCEPTIONS ABOUT BONDS.
THE FIRST ONE IS THAT IF A BOND IS APPROVED, MY PROPERTY TAXES WILL GO UP.
THAT CAN BE TRUE, BUT IT'S NOT ALWAYS TRUE.
MANY DISTRICTS CAN ISSUE BONDS WITHOUT INCREASING THE TAX RATE ON THEIR S&I PORTION OF THE TAX RATE.
SO THIS GETS CONFUSING, ESPECIALLY BECAUSE THE 86TH LEGISLATURE REQUIRES THAT WHENEVER WE PUT A PROPOSITION ON THE BALLOT, WE USE THE WORDS THIS IS A PROPERTY TAX INCREASE AND THAT HAS TO BE IN THERE, EVEN IF THE FUNCTIONAL TAX RATE TO OUR HOMEOWNER ACTUALLY STAYS THE SAME OR DECREASES. BECAUSE OF WHAT KIM SAID THE TAX RATE FOR THE HOMEOWNER IS BUILT UP OF TWO PARTS THE M&O AND THE S&I.
THE S&I PORTION COULD STAY EXACTLY THE SAME, AND THE S&I PORTION IS THE PART CONNECTED TO THE BOND.
SO THERE'S SOME CONFUSION ABOUT THAT.
THAT MAY HAVE BEEN SPURRED ON BY THIS REQUIREMENT FROM THE LEGISLATURE.
THE OTHER MISCONCEPTION IS THAT BONDS MEAN THAT OLDER AND DISABLED TAXPAYERS ARE HURT BY THIS PROCESS BECAUSE ONCE YOU'RE ON DISABILITY OR ONCE YOU'RE RETIRED, YOU HAVE A FIXED INCOME, AND THAT MEANS IT'S HARDER TO COPE WITH THE FLUCTUATIONS IN THE MARKET.
BUT IF YOU'RE AN OVER 65 PERSON OR A DISABLED PERSON AND YOU HAVE AN EXEMPTION ON FILE WITH THE APPRAISAL DISTRICT WHERE YOU LIVE, SCHOOL DISTRICT TAXES DO NOT INCREASE EVEN WITH A BOND.
YOUR EXEMPTION REMAINS IN PLACE AND YOUR TAX RATE WOULD NOT INCREASE.
THAT'S IN THE TAX CODE 11.13C.
ANOTHER VERY COMMON MISCONCEPTION IS THAT SCHOOLS SHOULDN'T BE IN DEBT.
THAT JUST MEANS THEY'RE MISMANAGING THEIR FUNDS, VERY MUCH LIKE HAVING A HOME MORTGAGE.
A BOND IS CONSIDERED TO BE A HEALTHY DEBT.
IT ALLOWS FOR THAT COMPLETION OF LARGE PROJECTS WHILE MAINTAINING OPERATIONS.
SO WHAT THIS ALL MEANS IS THAT VOTING MATTERS.
SO THE FRISCO ISD BOARD CAN ORDER A BOND ELECTION, BUT WE CAN'T ISSUE BONDS OR SPEND THE BOND MONEY WITHOUT THE VOTERS APPROVING THE PROJECTS THAT WE'VE PUT FORWARD FOR THEM IN THE FORM OF PROPOSITION.
[01:10:01]
IS IMPORTANT AND WHY, AND ENCOURAGE OTHERS TO GET INVOLVED.THANK YOU ALL FOR LISTENING, AND I HOPE THAT HELPS WITH SOME OF THE BASICS.
ANY QUESTIONS? I DO HAVE A QUESTION.
AND IT'S MAYBE IT'S SOMETHING I SHOULD KNOW ALREADY.
I'M, LIKE I SAID, I TEND TO BE FOR THE BOND.
THE WHOLE BOND PACKAGE GETTING IT AND HAVING IT APPROVED.
BUT I ALWAYS SOMETHING IN THE BACK OF MY MIND.
I'M SURE SOMEBODY CAN ANSWER THIS.
WHY WOULDN'T WE TRY TO SAVE MONEY UP FRONT, LIKE, RIGHT NOW START SAVING MONEY FOR WHEN WE NEEDED IT TO MAKE THOSE PURCHASES WITHOUT HAVING TO GO INTO DEBT, WITHOUT HAVING TO PAY THE INTEREST RATE.
AND LIKE I SAID, THIS IS JUST SOMETHING I JUST LIKE TO KNOW.
IT'S NOT IT'S NOT I'M NOT GOING TO BE MAKING A DECISION BASED ON THAT.
SO I KNOW WE'VE ALREADY BEEN CONTEMPLATING TIRZ MONEY AND HOW WE CAN USE THAT TO HELP OFFSET THE S&I TAX RATE, WHICH, IF WE HADN'T DONE THAT, IF WE HADN'T PLANNED AHEAD AND HAD THE TIRZ MONEY TO HELP US, THEN WE WOULD HAVE TO CONSIDER RAISING THE S&I TAX RATE, WHICH AT THIS TIME WE ARE NOT CONSIDERING RAISING.
SO WE HAVE DONE THAT THINKING AHEAD AND PLANNING LONG TERM.
IT'S JUST UNFORTUNATELY WE'RE AT A POINT WHERE WE HAVE MAJOR PROJECTS THAT NEED TO HAPPEN, AND WE WANT TO BE ABLE TO TAKE THOSE ON WITHOUT IMPACTING OUR DAY TO DAY OPERATIONS. WE WANT THE QUALITY OF THE EDUCATION WE PROVIDE TO OUR STUDENTS DAY TO DAY, TO REMAIN CONSISTENTLY AT A VERY HIGH LEVEL WITHOUT HAVING TO SACRIFICE OUR OPERATIONS TO PAY FOR THESE MAJOR PROJECTS.
THOSE MAJOR PROJECTS, JUST LIKE WHEN YOU HAVE A HOME AND YOU HAVE SOMETHING UNEXPECTED HAPPEN, LIKE YOU HAVE A FLOOD OR A MAJOR LEAK, YOU HOPE YOU HAVE INSURANCE TO COVER IT, BUT THERE'S SOME THINGS THAT GO BEYOND THAT, AND YOU HAVE TO DIP INTO YOUR SAVINGS OR DIP INTO SOME OTHER ACCOUNT TO PAY FOR IT.
AND THIS IS WHAT WE DO YEAH. AND I TOTALLY UNDERSTAND.
I WASN'T REALLY TALKING ABOUT THAT.
I WAS TALKING ABOUT THE THINGS THAT WE KNOW ARE COMING.
I UNDERSTAND WHAT YOU'RE SAYING.
AND EVERYTHING ELSE YOU SAID IS TOTALLY RIGHT.
WHAT IF WE WERE TO SAVE MONEY FOR MAJOR PROJECTS THAT WE SEE COMING DOWN THE PIKE, WE WOULD BE SAVING THAT MONEY FROM OUR OPERATING BUDGET FROM THE M&O SIDE.
SO YOU CAN'T, YOU CAN ONLY USE I&S TAXES TO PAY FOR DEBT.
SO YOU CAN'T USE THAT MONEY TO SAVE UP TO PAY FOR CAPITAL PROJECTS, YOU WOULD HAVE TO, YOU WOULD HAVE TO TAKE MONEY OUT OF YOUR ESSENTIALLY YOUR M&O FUND BALANCE OR SAVE FROM OPERATIONS IN ORDER TO PAY FOR PROJECTS LIKE THAT.
NOW WE IN THE PAST, WHEN WE HAVE BEEN ABLE TO, WE HAVE SAVED SOME MONEY TO DO SOME OF THOSE THINGS.
SO IN YEARS PAST, IF WE HAD YEARS WHERE WE HAD LARGE SURPLUSES AT THE END OF THE YEAR, WE PUT SOME OF THAT MONEY IN WHAT WE CALL A LOCAL CAPITAL PROJECTS FUND, AND THAT HAS HELPED US OVER TIME WITH SMALLER PROJECTS THAT WE DIDN'T HAVE NECESSARILY PLANNED WITHIN OUR 2018 BOND PROGRAM. WE'VE BEEN ABLE TO ESSENTIALLY SAVE AND USE THAT MONEY FOR THOSE TYPES OF THINGS.
AND SO DEBT IS THE WAY THAT WE PAY FOR THOSE.
I'M JUST CURIOUS LIKE FOR SOMETHING LIKE THAT IT WOULD RAISING TAXES.
IS THAT AN OPTION? LIKE, HEY, OKAY, THAT'S WHAT I KNOW.
YOU CAN'T YOU CAN'T RAISE THE TAX RATE.
I JUST DIDN'T KNOW WHAT THE REASON WAS.
TODD'S QUESTION WAS, CAN YOU RAISE THE TAXES TO PAY DEBT OFF FASTER? AND SO, YES. YEAH.
ISSUING. SO IN OTHER WORDS, INSTEAD OF ISSUING 30 YEAR BONDS, WE ONLY WANT TO ISSUE 15 YEAR BONDS.
THAT WOULD ESSENTIALLY YOU WOULD HAVE TO RAISE THE TAX RATE IN ORDER TO DO THAT.
THEN YOU COULD RAISE THE TAX RATE TO DO THAT AS WELL.
[01:15:05]
THAT'S SOMETHING THAT YOU CAN ALSO CONSIDER AT THE MONITOR STAGE.AND IF YOU'D LIKE TO PAY OFF THE DEBT EARLIER THAN YOU HAD ORIGINALLY ANTICIPATED.
I JUST HAD A QUICK QUESTION ON TIMELINE.
CAN WE GO BACK TO THAT SLIDE THAT HAD THE YELLOW AND THE ORANGISH BOXES THE FIRST ONE? YOU GOT IT. I'LL GET THERE.
THIS ONE OR THE PREVIOUS ONE? YEAH THAT ONE. OKAY.
SO THAT ONE RIGHT THERE THAT SAYS THAT BULLET THAT SAYS DETERMINE PRIORITIES AND TYPES OF PROJECTS.
SO I JUST WANT TO MAKE SURE I UNDERSTAND.
SO THIS BOARD WAS PRESENTED WITH SOME RECOMMENDATIONS FROM THE BOND COMMITTEE.
I THINK SEVERAL TRUSTEES, IF NOT ALL OF US, GAVE SOME FEEDBACK REGARDING COULD WE SEPARATE OUT BOND A SOME OF THE ITEMS IN BOND A THINGS LIKE THAT? IS THAT IS THAT WHEN WE WERE DETERMINING THE PRIORITIES AND TYPES OF PROJECTS, IS THAT THE MECHANISM FOR DOING THAT? YES, YES.
SO THERE ARE SOME LIKE ESTHER WAS SAYING AND WE TALKED ABOUT LAST WEEK, THERE ARE SOME SPECIFIC THINGS THAT IF SEPARATED OR THAT IF THEY'RE PROPOSED, HAVE TO GO ON SEPARATE PROPOSITIONS.
TYPICALLY EVERYTHING ELSE WOULD GO INTO A GENERAL BOND PROPOSITION.
WHAT THAT DOES KIND OF ON THE ON THE FLIP SIDE, WHEN YOU GO OVER HERE IN TERMS OF DETERMINING SCOPE AND THINGS LIKE THAT, THE THE PROPOSITION THAT YOU HAVE ON THE BALLOT THAT THEN GOES TO VOTERS AND POTENTIALLY GETS APPROVED DETERMINES YOUR AUTHORITY BEYOND THE BOND ELECTION.
SO IF YOU HAVE A SPECIFIC PROJECT ON A SPECIFIC PROPOSITION AND THEN THE VOTERS APPROVE THAT, BUT THE BOARD DECIDES SOMETHING ELSE HAS A GREATER NEED. YOU CAN'T AT THAT POINT REPURPOSE THAT BOND.
IN WITHIN A GENERAL PROPOSITION, WHEN YOU'RE TALKING ABOUT FACILITY MAINTENANCE AND THE TYPES OF THINGS THAT GO INTO A GENERAL PROPOSITION, YOU CAN REPURPOSE, BUT ONLY FOR GENERAL PROPOSITION TYPE THINGS.
I UNDERSTAND POST THE BOND, WHAT I'M WHAT I'M JUST WANTING TO MAKE SURE I UNDERSTAND IS SO A FEW OF US GAVE SOME FEEDBACK DURING OUR LAST MEETING WHEN WE DISCUSSED THIS, WHEN THIS WAS PRESENTED BY THE BOND COMMITTEE.
RIGHT. AND THEN YOU'RE HAVING INDIVIDUAL MEETINGS WITH US ONE ON ONE.
AND IS THAT WHAT THIS BULLET IS INTENDED TO DO? BECAUSE WE'RE NOT WE'RE NOT TAKING ACTION AS A BOARD TO DO THIS, RIGHT? YES. THAT'S CORRECT. SO THAT'S SORRY, THAT MAY BE UNCLEAR ON MY END IN TERMS OF ME SEPARATING THINGS OUT.
AND THEN WE MEET WITH YOU TO GET YOUR FEEDBACK ON THOSE.
THAT'S WHAT I WANTED TO KNOW IF THAT'S WHAT HAPPENS THERE.
THANK YOU. YES. I'LL JUST MAKE A QUICK COMMENT TO THAT PIECE BECAUSE I THINK MRS. ELAD'S RIGHT. WE HAVE AN IMPORTANT FUNCTION HERE, KIND OF BEFORE A VOTE.
I DO WANT TO MAKE A COMMENT THOUGH TO THIS ACTUALLY THE SAME EXACT SLIDE.
RIGHT. THE FACT THAT AND I THINK THE PUBLIC SHOULD KNOW THAT AS A DISTRICT, WE HAVE A COMMITTEE THAT THEN HAS A SPECIFIC BOND EXPLORATION SUBCOMMITTEE DEVELOPED THAT MEETS THROUGHOUT LAST YEAR.
AND THEN ALSO IT'S COLLABORATIVE NATURE, WHICH I DON'T KNOW HOW OFTEN THIS IS DONE, BUT I THOUGHT IT WAS VERY WELL DONE IN OUR CASE, WHERE YOU HAVE A COMBINATION OF STAKEHOLDERS, PARENTS, NON-PARENTS DISTRICT STAFF AS WELL AS FISD STUDENTS GETTING TOGETHER THROUGHOUT THIS YEAR TO DEVELOP THIS PACKAGE. WHICH FOR THOSE THAT ARE LISTENING OR WATCHING ACTUALLY RESULTED IN NOT JUST A PACKAGE, BUT ALSO SEVERAL ITEMS DROPPING OFF THAT PACKAGE THROUGHOUT THE DURATION OF THAT OF THOSE MEETINGS.
[01:20:02]
AND SO THERE IS SOME LEVEL OF NOT JUST, DISTRICT WIDE COLLABORATION ON A LOT OF LEVELS, BUT SOME LEVEL OF PRIOR DILIGENCE TO CUT BACK ON THAT IN SOME TYPE OF PRUDENT WAY.SO WHAT WE THOUGHT WE WOULD DO, AND IF YOU HAVE OTHER QUESTIONS FOR ESTHER, I WON'T INTERRUPT THOSE.
BUT WHAT WE THOUGHT WE WOULD DO IS JUST PUT BACK UP ON THE SCREEN THE THREE PROPOSITIONS THAT YOU GUYS SAW AT LAST WEEK'S WORKSHOP AND JUST OPEN IT UP FOR ANY ADDITIONAL QUESTIONS OR DISCUSSION.
WE DO WANT TO MAKE SURE BEFORE WE LEAVE TODAY TO GET MEETINGS SCHEDULED EITHER INDIVIDUALLY OR IN SMALL GROUPS OF 2 OR 3 JUST OVER THE NEXT COUPLE OF WEEKS SO WE CAN ANSWER, YOU KNOW, IN IN DEPTH, MORE DETAILED QUESTIONS.
BUT JUST IN GENERAL WE JUST WANTED TO OPEN IT UP FOR QUESTIONS OR DISCUSSION FROM THE BOARD ON THE RECOMMENDED BOND PACKAGE. WE'RE THERE ANY ADDITIONAL QUESTIONS? I DON'T HAVE A QUESTION, BUT JUST TO REITERATE THE COMMENT THAT I MADE IN OUR PREVIOUS MEETING, JUST IN CASE SOME COMMUNITY MEMBERS ARE WATCHING THIS ONE AND DIDN'T WATCH THAT ONE.
BUT I WOULD LIKE TO SEE US BREAK UP THAT PROPOSITION A INTO A FEW DIFFERENT PIECES.
I DON'T KNOW THAT I WOULD LIKE TO SEE EIGHT DIFFERENT BONDS, BUT I JUST THINK THAT'S ALMOST $1 BILLION AND WHICH THE MAJORITY OF THAT IS THE 25 YEAR CAMPUS REFRESH.
AGAIN, THAT IS MY PERSONAL OPINION AND REQUEST.
WHICH I'M SORRY, WHICH PIECE WAS THAT, MISS ELAD? WHICH IS WHICH PIECE IS THE 27 YOU WENT THROUGH? [INAUDIBLE] THE PROP A.
YEAH, I KNOW THAT. BUT WHICH WITHIN PROP A YOU SAID $27 MILLION BREAK OUT.
OH NO I SAID THE 25 YEAR CAMPUS REFRESH BECAUSE THAT REPRESENTS, I THINK, OVER HALF A MILLION.
EXCUSE ME. OF THAT $986 MILLION.
SO TO ME THAT'S A PRETTY BIG CHUNK.
SO I WANT TO RESPOND TO TO THAT.
RESPECTFULLY I WAS ON THE RECEIVING END OF [INAUDIBLE] MANY OF THE PROJECTS AFTER THAT 2018 BOND ELECTION DID PASS, AND THE MANEUVERING AND HAVING TO COME BACK TO US WHEN MAJOR PROJECTS SURFACED AND WE NEEDED TO BE ABLE TO PULL FROM DIFFERENT PIECES OF THAT BOND.
I DO NOT THINK SEPARATING THAT PROPOSITION WOULD BENEFIT US, SHOULD WE, BECAUSE WE'RE COMING UP ON THE 25 YEAR CAMPUS REFRESH.
BUT THESE ARE 25 YEAR PROJECTS, AND SOME OF THESE CAMPUSES MAY FALL BELOW THE AMOUNT THAT THAT WILL THAT IS SCHEDULED TO BE ALLOTTED.
AND THERE MAY BE THINGS ON OTHER CAMPUSES THAT REQUIRE A LOT MORE ATTENTION.
I REMEMBER TWO YEARS AGO THERE WAS A PROJECT THAT WE WENT IN ON, AND THEY DIDN'T ANTICIPATE IT WAS GOING LIKE WHEN THEY OPENED IT UP, THERE WERE MORE CHALLENGES, AND IF WE'RE SEPARATING THAT PROPOSAL WILL BE VERY LIMITED TO HOW WE CAN MANEUVER AND GET SOME OF THOSE THINGS DONE.
AND SO, RESPECTFULLY, I AM IN AGREEMENT WITH THE WAY THE PROPOSITIONS HAVE BEEN GIVEN TO US IN TAKING ACCOUNT THAT THERE WERE ACTUAL COMMUNITY MEMBERS, PARENTS, TAXPAYERS THAT MAY NOT NECESSARILY HAVE CHILDREN IN THE DISTRICT, BUT THEY'RE STILL TAXPAYERS, TEACHERS AND STUDENTS. THEY THEY PUT THIS TOGETHER AND I'M GOING TO PROBABLY NEED TO STICK WITH THEM ON THIS ONE.
SO I JUST WANT TO MAKE SURE I UNDERSTAND.
SO THE 25 YEAR CAMPUS REFRESH, IF THAT WAS TO BE SEPARATED OUT, ANYTHING WITHIN THAT 25 YEAR CAMPUS REFRESH COULD BE MOVED AROUND. CORRECT.
LIKE IF WE IF ASHLEY ENDED UP COSTING MORE THAN.
WELL STALEY'S NOT A GOOD EXAMPLE.
YES. WITHIN THE SCHOOLS, WITHIN THE 25 YEAR CAMPUS REFRESH TYPE OF PROJECT?
[01:25:01]
YES. NOW, IF YOU HAD ANOTHER SCHOOL THAT'S NOT GETTING A 25 YEAR REFRESH THAT NEEDED SOME, THAT HAD SOME BIG SYSTEM BREAK, YOU COULDN'T TAKE MONEY FROM THE REFRESH AND REPURPOSE IT OVER TO ONE OF THOSE OTHER NEEDS, RIGHT? WOULD YOU BE ABLE TO DO THAT IF IT WAS PASSED AS PROPOSED HERE? YOU WOULD. OKAY, SO THAT'S MY THAT'S MY CONCERN.I'M SAYING, WHAT IF THEY GO INTO A SCHOOL THINKING THE ONLY THING THEY NEED TO DO IS A REFRESH AND THEY OPEN UP SOMETHING AND IT AND IT REQUIRES MORE THAN WHAT THEY ORIGINALLY ALLOTTED.
YEAH. I UNDERSTAND YEAH, I UNDERSTAND, I JUST THINK FROM A COMMUNITY PERSPECTIVE, THAT'S A HUGE AMOUNT.
IT IS. AND I FIND GREAT COMFORT WITH THE FACT THAT COMMUNITY MEMBERS GAVE US THAT SUGGESTION.
THAT WAS THEIR RECOMMENDATION.
SO IF IT WERE JUST SOMETHING THAT AN OUTSIDE SOURCE CAME IN AND GAVE US, I WOULD PROBABLY NEED TO THINK MORE ABOUT IT. BUT THE FACT THAT THESE INDIVIDUALS AND THEY DIDN'T, YOU KNOW, MARK MENTIONED THAT THEY MET LAST YEAR.
THIS GROUP MEETS COLLECTIVELY EVERY YEAR ON THE SAME.
BUT THIS LIKE THEY DIDN'T JUST DECIDE ON THIS BOND PACKAGE THROUGHOUT THIS YEAR AND BEING ON THE RECEIVING END AFTER A BOND ELECTION WHEN THAT 18 BOND PASSED, THERE WERE SO MANY THINGS THAT NEEDED TO BE DONE, AND IT SEEMED LIKE FOR ABOUT A YEAR AND A HALF, WE WERE COMING BACK TO BOARD MEETINGS, MAKING DECISIONS TO MOVE FUNDS AROUND GOPAL CAN PROBABLY SPEAK TO THAT, BUT I WOULD JUST BE VERY LEERY OF SEPARATING PROPOSITIONS WHEN WE DON'T UNDERSTAND THE FUNCTIONALITY BEHIND THEM.
SO I UNDERSTAND AND I HEAR BOTH OF YOU WHAT YOU SAID, BUT MY RECOMMENDATION, YOU KNOW, MY GUT FEELING, BASED ON WHAT I THINK, IS THAT THE 25 YEAR CAMPUS REFRESH, I DO UNDERSTAND IT HAS TO BE INTACT, BUT FROM THE $986 MILLION, IF WE CAN SEPARATE THAT INTO SEPARATE LINE ITEMS WITH RESPECT TO 25 YEAR CAMPUS BEING ONE, AND THEN MAYBE, YOU KNOW, BUNDLING THE REST IN THE OTHER OR, YOU KNOW, OR MAYBE TWO MORE, YOU KNOW, IS SOMETHING IF IT CAN BE LOOKED INTO IS WHAT MY SUGGESTION IS.
CAN I ADD A COMMENT? IS THAT OKAY? YES, SURE.
JUST JUST SO YOU KNOW, AS YOU TALK THROUGH THIS AND ULTIMATELY, IT'S GOING TO BE YOUR DECISION.
ONE OF THE THINGS THAT THIS GENERAL PROP EIGHT GIVES US IS A LOT OF FLEXIBILITY.
WHEN WE LOOK AT 77 CAMPUSES, OVER 100 BUILDINGS IN OUR DISTRICT THAT ARE AGING.
THERE WAS A LOT OF THOUGHT PUT INTO THIS PROPOSITION IN TERMS OF A COLLECTIVE, HOLISTIC PACKAGE WHERE WE'RE REALLY LOOKING TO SET UP THE FUTURE OF A 25-30 YEAR OLD BUILDING.
IF YOU SEPARATE PROPOSITIONS OUT IN ONE PASSES AND TWO FAIL, YOU HAVE JUST DISRUPTED OUR ENTIRE MAINTENANCE CYCLE AND REALLY, ALL YOU'RE DOING IS YOU'RE SAYING, I'M GOING TO DEFER THAT MAINTENANCE TO ANOTHER DATE DOWN THE ROAD, WHICH IS GOING TO BE MORE EXPENSIVE.
FOR INSTANCE, IF THE 25 YEAR CAMPUS REFRESH FAILS, WE HAVE ABOUT 100 AND I THINK $10 MILLION IN GENERAL FACILITY MAINTENANCE.
I UNDERSTAND WHY YOU'RE ASKING TO BREAK THEM OUT.
BUT I JUST I JUST CAUTION THAT DOING SO COULD REALLY DISRUPT OUR ENTIRE MAINTENANCE CYCLE AS WE MOVE FORWARD FOR THESE BUILDINGS, NOT ONLY FOR THIS BOND CYCLE, BUT AGAIN, REMEMBER WHEN WE SHOWED YOU THE SLIDE.
AFTER 2030, WE HAVE ANOTHER 17 SCHOOLS THAT ARE GOING TO BE HITTING 25 YEARS OLD AS WELL.
SO ANYTHING THAT WE DEFER TO 30 YEARS IS ONLY GOING TO THEN IN 2030 PUSH US AT LIKE 27, 35 CAMPUSES THAT ARE HITTING THE 25 TO 32 YEAR MARK.
SO I JUST WANTED TO BE CLEAR ON THAT.
YEAH, I COULD SEE BOTH SIDES OF THIS.
AND I TEND TO BE ON THE SIDE OF WANTING WANTING TO BREAK IT OUT.
MR. WARSAW, I MAYBE I DIDN'T UNDERSTAND, BUT SAY WE BROKE OUT THE 25 YEAR CAMPUS REFRESH.
[01:30:02]
HOW DOES THAT HURT US? OR WHAT DOES THAT AND LIKE I SAID, I DON'T REALLY HAVE I'M TRYING TO LEARN, SO I'LL FIGURE OUT WHICH WAY TO GO ON IT.BUT I COME FROM THE PERSPECTIVE THAT BREAKING IT DOWN A LITTLE BIT MORE, WHEREAS IT MIGHT BE HARDER TO GET DONE BECAUSE OF VOTER FATIGUE AND THEM GOING TO THE [INAUDIBLE].
BUT I SEE US TAKING WHAT SOME OF OUR RESPONSIBILITY AS A BOARD AND KIND OF PUTTING IT OUT THERE.
SO JUST JUST HELP ME OUT ON THAT PIECE JUST.
YOU HAVE JUST DISRUPTED OUR ENTIRE CYCLE THAT WE PUT TOGETHER FOR CONTINUOUS MAINTENANCE.
LET ME SAY, IF THEY ALL PASS THEN IT HURTS US IN NO WAY.
OKAY, WHAT IF SOMEBODY SHOULD THE VOTER HAVE THE OPTION TO SAY, HEY, YOU KNOW SOMETHING? I KNOW I'M FOR IT, SO I'M NOT.
AND THAT WOULD NOT HURT OUR 25 YEAR CANVAS REFRESH.
OR ARE YOU SAYING IT WOULD? THAT EXAMPLE WOULD NOT.
YEAH. WELL, THAT I THINK THAT'S MORE OR LESS WHAT THEY'RE THEY'RE TALKING ABOUT BREAKING IT UP INTO PIECES LIKE THAT, THAT JUST PIECES THAT MAKE SENSE, THAT GO TOGETHER. AND I DON'T THINK WE HAVE TO GET TOO DETAILED ABOUT DOING THAT.
BUT FOR ME AND I WOULD BE FOR EITHER WAY.
BUT FOR ME, BREAKING OUT THE 25 YEAR CAMPUS REFRESH IS LIKE, TO ME, IT WOULD SEEM LIKE A NO BRAINER.
THAT'S ALL. IF I COULD JUST ADD ONE THING, I THINK I WANT TO MAKE SURE THAT THERE'S NOT ANY KIND OF MISUNDERSTANDING, THAT A 25 YEAR REFRESH IS JUST A REMODEL.
SO IT'S IT'S NOT JUST A REMODEL.
THERE'S AN ENTIRE FACILITY MASTER PLAN TO KEEP ALL OF OUR BUILDINGS UP TO DATE.
THERE'S SOME OF THAT THAT TAKES PLACE IN, YOU KNOW, EVERY 7, 15 YEARS.
AND SO FOR THE SCHOOLS THAT AREN'T 25 YEARS OLD, ALL OF THOSE REGULAR MAINTENANCE CYCLES THAT HAPPEN AT 7 AND 15 YEARS AND IN BETWEEN ARE PART OF THE GENERAL FACILITY MAINTENANCE PROJECT.
ALL OF THOSE CYCLES THAT HAPPEN AT 25 YEARS OR GREATER.
SO REPLACING HVAC SYSTEMS, THOSE TYPES OF THINGS HAPPEN IN THAT 25 YEAR CAMPUS REFRESH.
SO AT A MINIMUM, IN ORDER TO NOT DISRUPT THE FACILITY MASTER PLAN LIKE SCOTT WAS TALKING ABOUT YOU, YOU NEED YOUR 25 YEAR REFRESH, YOUR GENERAL FACILITY MAINTENANCE, YOUR PAVING AND LANDSCAPE REPAIRS AND YOUR FURNITURE AND EQUIPMENT ALL TO BE TOGETHER BECAUSE THAT'S ALL PART OF AND PROBABLY.
OH, SORRY. SAFETY AND SECURITY TOO.
THAT'S ALL PART OF THE THE OVERALL FACILITY MASTER PLAN.
SO THE TURF PIECE, THE TRANSPORTATION PIECE, THOSE WOULDN'T DISRUPT THE FACILITY MASTER PLAN, BUT SEPARATING OUT ANY OF THOSE OTHERS REALLY WOULD. SO I TOTALLY GET IT.
SO BUT I SAID, BUT TO THE POINT THAT MY COLLEAGUES WERE MAKING.
WOULD THAT MAKE SENSE JUST TO TAKE OUT THE TRANSPORTATION AND TURF? AND HERE'S I KNOW THE PROBLEM THAT WE'LL BE DEALING WITH IS YOU MIGHT HAVE SOME VOTERS THAT JUST LOOK AT IT AND SAY, HEY, WE DON'T WANT THIS WHERE IF WE PACKED IT IN TOGETHER, WE'D GET IT. AND, YOU KNOW, AND IT'S SOMETHING, LIKE I SAID, I'M FOR, BUT WE'RE TAKING THE CHOICE OUT OF THE VOTERS HANDS AND THAT'S IT. THAT'S JUST IT'S NOT A BIG ISSUE.
SO FOR THE FOR THE PIECES OF THESE PROJECTS THAT AREN'T PART OF THE FACILITY MASTER PLAN IF THE BOARD DECIDES TO SEPARATE THOSE OUT AS SEPARATE PROPOSITIONS, THAT IS WITHIN YOUR PURVIEW TO DO.
IT SOUNDED LIKE JUST FROM ME LISTENING, AND MAYBE I WAS MISINTERPRETING, BUT IT SOUNDED LIKE THE THOUGHT OF SEPARATING OUT THE 25 YEAR PIECE IS JUST BECAUSE OF THE DOLLAR VALUE OF IT. AND SO IF THAT'S THE RATIONALE, THEN I WOULD SUGGEST THAT YOU'RE NOT REALLY YOU NEED TO KEEP ALL OF THOSE PIECES RELATED TO THE FACILITY MASTER PLAN TOGETHER.
AND THAT'S THE POINT I WOULD AGREE WITH.
I DON'T I'M VERY HESITANT TO PLAY GAMES WITH SEPARATING OUT PROPOSITIONS THAT ARE ON OUR THAT ARE ON THAT ARE IN FRONT OF US, THAT HAVE BEEN DELIBERATED FOR, THAT HAVE BEEN PACKAGED TOGETHER IN A CERTAIN WAY FOR A YEAR BY OUR COMMUNITY.
[01:35:10]
SO IF THERE WAS A SUBSTANTIVE OR COMPELLING ISSUE WITH, HEY, I DO NOT WANT TURF FOR BASEBALL OR SOFTBALL FIELDS, AND THE COMMUNITY SHOULD KNOW THAT.OKAY, I GET IT. I'M NOT HEARING THAT.
AT LEAST IT DIDN'T SOUND LIKE THAT.
I'M CERTAINLY FOR GIVING THE COMMUNITY OPTIONS TO VOTE IN SUPPORT.
WE'VE GOT ALREADY THREE PROPOSITIONS HERE.
AND SO I DON'T KNOW, I DO APPRECIATE THE FEEDBACK FROM ALL THE BOARD MEMBERS ON IT.
IT IS HELPING ME, I JUST DON'T I STRUGGLE THAT UNLESS THERE IS SOME COMPELLING, SUBSTANTIVE REASON THAT I DISAGREE WITH THE DAC, OR I DISAGREE WITH THEIR CONCLUSIONS AS TO WHAT BELONGS IN A YOU KNOW, I WOULD LIKE THAT.
THAT'S WHAT I KIND OF WANTED TO HEAR IF THERE WAS ANY OF THAT.
KIMBERLY, I HAVE A QUESTION THAT IT WAS BROUGHT UP PROBABLY RIGHT AFTER THE 2018.
SO THIS WAS TWO YEARS BEFORE I GOT ON THE BOARD.
SO GOPAL MAY EVEN HAVE SOME MORE INFORMATION.
BUT WITH THE TURF FOR THE BASEBALL AND THE SOFTBALL FIELDS, I KNOW THAT THERE WAS A SPECIFIC AMOUNT THAT WAS SCHEDULED FOR THAT 2018. RIGHT.
AND THEN THE COMMUNICATION TO OUR COMMUNITY SAID THAT WE WERE GOING TO FINISH OR GIVE.
WAS THERE ANOTHER PERCENTAGE OR, YOU KNOW, THAT WAS SUPPOSED TO BE COMPLETED AFTER AFTER THAT, LIKE AFTER THIS NEXT BOND, IF THIS SHOULD BE APPROVED.
SO YOU'RE CORRECT IN THAT THE COMMITTEE DELIBERATED AND ACTUALLY REDUCE THE NUMBER OF WHAT WAS IN THE ORIGINAL PROPOSAL BACK IN THE 18 PROGRAM TO OUR TO OUR COMMITTEE, THEY REDUCED IT TO THE THREE PLUS THE TWO NEW BUILDS TO GIVE US FIVE, WITH THE UNDERSTANDING THAT WHEN WE GO OUT FOR THE NEXT BOND, WE WOULD LOOK AT PUTTING ADDITIONAL BASEBALL SOFTBALL FIELDS IN THIS PROGRAM.
TO MY RECOLLECTION, THEY DIDN'T SAY 100% 50% OF THE REMAINING.
IT WAS THAT WE WOULD JUST COME BACK AND REVISIT PUTTING ADDITIONAL FIELDS IN THIS PROGRAM.
OKAY. I JUST I WANTED CLARIFICATION ON THAT BECAUSE I HEARD A FEW DIFFERENT THINGS.
I DIDN'T KNOW IF THE RECOMMENDATION WAS ALL REMAINING OR, YOU KNOW, AND I'M AND I'M CERTAINLY NOT SUGGESTING, YOU KNOW, THAT WE REDUCE.
I'M JUST WANTING TO KNOW WHAT PROMISE WAS MADE IN 2018.
HEY DYNETTE, I THINK I CAN ADD A LITTLE BIT TO IT AS WELL.
Y'ALL REMEMBER OR Y'ALL DON'T REMEMBER, BUT IN 2018, THE WHOLE GOAL WAS JUST TO GET SOME TURF IN THE DISTRICT IN SOME CAPACITY, BECAUSE WHAT WE WERE DOING DURING THAT TIME, ALL OF IT WAS DIRT.
SO WHEN WE HAD A POTENTIAL, LET'S JUST SAY, SOFTBALL MATCH UP IN THE PLAYOFFS BETWEEN TWO SOFTBALL TEAMS, WE WERE PLAYING THOSE OVER IN MCKINNEY OR UP IN SALINA, AND IT WAS TWO FRISCO ISD TEAMS. SO THE GOAL IN 2018 TO TRY TO STAY WITHIN THE NUMBERS THAT WE WANTED TO WITH THE BOND PROGRAM WAS TO GET SOME TYPE OF TURF IN FRISCO.
SO THAT'S WHY WE DID THREE STADIUMS, ONE ON THE WEST, ONE CENTRALLY AND THEN ONE ON THE EAST.
AND THAT HAS REALLY HELPED WITH THOSE RESCHEDULING PIECES WITH PLAYOFF GAMES.
AND THEN OF COURSE WE'VE ADDED EMERSON AND PANTHER CREEK SINCE THEN.
SO WE HAVE A TOTAL OF FIVE TURF FIELDS ACROSS THE DISTRICT.
BUT AS SCOTT SAID THERE IN 2018, WE SAID, LET'S START WITH THREE TO SEE IF WE CAN JUST MEET THE NEEDS OF HAVING SOME TURF TO MEET OUR INITIAL PROBLEMS. AND THEN IN FUTURE BOND PROGRAMS, WE'LL DO EVERYTHING WE CAN TO GET THE REST OF THEM TURFED SO OUR KIDS AREN'T AT A DISADVANTAGE AT OUR OTHER SCHOOLS.
SO THAT WAS THE CONVERSATION WITHIN THE BOND COMMITTEE IN 2018.
OKAY. DID ANYONE HAVE ANY OTHER QUESTIONS OR COMMENTS? KIMBERLEY? I DON'T I DON'T HAVE ANYTHING ELSE FOR YOU GUYS TODAY.
IF THERE'S NO FURTHER DISCUSSION, THEN WHAT I WOULD LIKE TO ASK IS, AFTER YOU GUYS ADJOURN, IF WE COULD JUST GET THOSE INDIVIDUAL OR SMALL GROUP MEETINGS ON THE CALENDAR SO THAT WE KNOW SO THAT WE HAVE A PLAN FOR THOSE MEETINGS BECAUSE THE NEXT TIME YOU GUYS WILL MEET AS A BOARD TO WOULD BE ON AUGUST 19TH TO CONSIDER THE PROPOSITIONS AND TO CONSIDER CALLING THE ELECTION SO, BUT STILL HAPPY TO ANSWER ANY ADDITIONAL QUESTIONS.
AND WOULD THAT INCLUDE THE BONDS AND THE [INAUDIBLE].
[01:40:03]
FOUR TOTAL FISD PROPOSITIONS ON THE NOVEMBER BALLOT.IT WOULD BE THESE THREE BOND ONES AND THEN THE VATRE.
BEYOND THAT, YOU KNOW, IF IF WE END UP SPLITTING OUT ADDITIONAL PROPOSITIONS, THEN YOU'LL HAVE MORE.
BUT AS OF RIGHT NOW THERE'S FOUR, THE THREE BONDS AND THEN THE VATRE.
THANK YOU. AND DURING OUR LAST MEETING OR LAST WORKSHOP THE BOARD COLLECTIVELY TALKED ABOUT A LOT OF WE HAD A LOT OF QUESTIONS ABOUT HOW THE MONEY WAS GOING TO BE ALLOCATED AND WHAT WE WERE GOING TO BE DOING.
SO BOARD THE THE BEAUTY OF BEING ON THE THE END RESULT OF A BOND AFTER IT HAS BEEN APPROVED, SHOULD THE COMMUNITY DECIDE TO VOTE FOR IT, IS THAT WE'LL THEN GET TO COME BACK THROUGH OUR SUBCOMMITTEES AND WE WILL STILL HAVE WE'LL BE ABLE TO MAKE AN IMPACT ON SOME OF THE DECISIONS THAT ARE BEING MADE AS IT RELATES TO THE BULLET POINTS.
SHOULD THE BOND PASS, THAT'S WHEN THE THE REAL WORK REALLY BEGINS.
BOARD, IF THERE ARE NO ADDITIONS? CAN I SAY ONE LAST THING TO THAT POINT? I JUST WANT TO MAKE SURE THAT THE BOARD KNOWS TOO, THAT IF YOU ARE ASKED IN THE FUTURE TO CONSIDER REPURPOSING BONDS, WE HAVE MADE A PRACTICE OF ALWAYS TAKING THOSE RECOMMENDATIONS TO OUR BOND COMMITTEE FIRST, TO MAKE SURE THAT AS A COMMUNITY, THEY WOULD BE ON BOARD WITH WHATEVER THAT RECOMMENDED CHANGE IS. SO THAT'S NOT SOMETHING THAT'S REQUIRED, BUT IT'S SOMETHING THAT WE'VE HISTORICALLY DONE AND WOULD CONTINUE TO DO IN THE FUTURE.
I THINK WE'VE BEEN WORKING TOGETHER LONG ENOUGH TO KNOW THAT I KNOW A LOT OF OUR TENSION RIGHT NOW, OR SHOULD I SAY, YOU KNOW, QUESTIONABLE, LIKE WE'RE QUESTIONING BECAUSE WE REALLY DON'T, I WANT TO MAKE SURE ONCE THESE ARE VOTED ON, IF THEY ARE APPROVED, THAT I'M ABLE TO OFFER SUGGESTIONS.
THANK YOU ALL FOR JOINING US TODAY.
WE HAVE DOCTOR NELSON IN THE HOUSE.
THANK YOU FOR BEING HERE WITH US, DOCTOR NELSON.
AND THEN ALSO BEFORE WE CONCLUDE OUR THOUGHTS AND PRAYERS ARE WITH THE FAMILY OF JESSICA CLARK.
SHE WAS A FOWLER MIDDLE SCHOOL TEACHER.
SHE TAUGHT BOTH OF MY GIRLS WELL, ACTUALLY ALL THREE.
THE BABY THAT IS STILL AT FOWLER.
AND SO OUR THOUGHTS AND PRAYERS ARE WITH HER FAMILY.
AND WE'RE JUST SENDING PRAYERS ALSO TO FOWLER MIDDLE SCHOOL.
* This transcript was compiled from uncorrected Closed Captioning.