Board of Trustees October 23, 2017 1 Agenda Bond Issuance - PowerPoint PPT Presentation

Board of Trustees October 23, 2017 1

Agenda  Bond  Issuance Timeline  Refunding Bonds  Bond Considerations  Fiscal Year 2016-17  Fund Balance  Transfers  Fiscal Year 2017-18  Budget Update  New Financial Statements  2017-18 Considerations  Fiscal Year 2018-19  Budget Calendar  2018-19 Considerations  Next Steps 2

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Bond Issuance Timeline 2016 Voted Authorization Planned Date Fiscal Year Bond Year Issuance Actual Issuance Issued 2016-17 1 $ 84,000,000 $ 84,000,000 June-16 2017-18 2 $ 94,055,336 $ 225,000,000 May-17 2018-19 3 $ 97,598,764 $ - 2019-20 4 $ 95,010,800 $ 128,085,000 Oct-18 2020-21 5 $ 66,420,100 $ - Authorized $ 437,085,000 $ 437,085,000 4

Refunding Bonds  2017 Unlimited Tax Refunding Bonds  DSF Fund Balance Used $4,000,000  Amount $85,105,000  Savings $17,802,883  Bond Rating  Moody’s Aaa  S&P AA+  Callable February 15, 2020  UTRB Series 2010  UTRB Series 2011  UTRB Series 2012 5

Bond Considerations  Impact of hurricane impact on construction cost and timing  Cost of materials and labor  Availability of contractors  Project scope modifications  Scope developed in 2015-16 for project timing 2016-17 through 2020-21  Fire lane  Additional classrooms renovated  Different and additional furniture  Other sources of Funding  Local Capital Projects (fund 629) - $15 million  Permanent School Fund - $18 million  Assigned Fund Balance in the General Fund - $10.9 million 6

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Fund Balance History Unaudited Notes: Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Ended Ended Ended Ended Ended Ended Total fund balance 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 increased $9,862,471 for the Nonspendable: fiscal year ended 6/30/2017. Inventories $ 328,503 $ 619,677 $ 509,730 $ 578,764 $ 665,102 $ 458,967 Assigned to: Accounting Standards now require that we assign fund Construction 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 balance for any budgeted Claims and judgements 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 deficit in the subsequent Contingency for wireless project 5,000,000 3,582,913 3,582,913 year. Compensated absences 638,939 648,741 656,156 703,887 759,714 807,983 Encumbrances 1,640,596 1,570,082 1,971,706 1,977,692 1,257,675 1,649,979 Assignments can be made Extraordinary repair and replacement 4,000,000 4,000,000 4,000,000 7,582,913 4,000,000 by the Superintendent or Employee compensation 4,300,000 CFO. Equipment acquisition, repair and replacement 6,937,655 Assignments for 2017-18 Budget Deficit 6,330,970 Construction and Unassigned 75,234,542 78,152,263 79,738,094 81,159,486 80,050,869 80,410,277 Equipment total $10,937,655. $ 96,142,580 $ 93,573,676 $ 95,458,599 $ 97,002,742 $ 91,733,360 $ 101,595,831 % of unassigned fund balance 30.5% 31.1% 29.9% 29.0% 27.4% 26.6% Months of unassigned fund balance 3.7 3.7 3.6 3.5 3.3 3.2 8

General Fund Transfers 2012 2013 2014 2015 2016 2017 Transfer Out General Fund $ (19,160,362) $ (16,205,709) $ (15,000,000) $ (14,971,000) $ (23,725,552) $ (9,000,000) Transfer In Local Capital Projects 8,000,000 15,000,000 14,000,000 13,971,000 22,725,552 7,905,301 Permanent School Fund 9,971,640 Instructional Enhancement Fund 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Printshop 188,722 205,709 - - - 94,699 $ - $ - $ - $ - $ - $ - Notes: Permanent School Fund Balance at 10/18/2017 is $18.6 million. Local Capital Projects Fund Balance at 10/18/2017 is $14 million 9

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Richardson ISD Notes Comparative Statement of Revenues Expenditures and Changes in Fund Balance Unaudited Adopted Tax Bills Average Tax Revenue The column labeled “Tax Bills” is the adopted FY 16-17 FY 17-18 FY 17-18 FY 17-18 budget with CY tax revenue updated based on the tax bills mailed on October 2. State revenue was Taxable Value $ 20,106,983,186 $ 21,499,828,255 $ 21,995,135,418 $ 21,747,481,837 updated for the change in CY tax revenue. It was also updated for estimated ADA, FTE’s and WADA Current Tax Rate 1.04005 1.04005 1.04005 1.04005 using the first 6 weeks of attendance data. Levy prior to over 65 $ 209,122,679 $ 223,608,964 $ 228,760,406 $ 226,184,685 The column labeled “Average Tax Revenue” was Loss due to over 65 $ (9,093,109) $ (10,000,000) $ (11,009,411) $ (11,009,411) updated using an average of the taxable value in $ 200,029,570 $ 213,608,964 $ 217,750,995 $ 215,175,274 the adopted budget and the tax bills. 99.1% 98.0% 98.0% 98.0% CY Tax Revenue $ 198,189,898 $ 209,336,784 $ 213,395,975 $ 210,871,768 Enrollment is below the demographer projections PY Tax Revenue $ 801,480 $ 1,000,000 $ 1,000,000 $ 1,000,000 by approximately 250 students. State Revenue $ 90,534,957 $ 75,214,524 $ 73,507,139 $ 73,368,122 TRS On Behalf $ 15,368,040 $ 16,236,456 $ 16,236,456 $ 16,236,456 The loss due to the over 65 levy freeze is a little of Fund 161 $ 3,900,503 $ 4,487,381 $ 4,487,381 $ 4,487,381 $1,000,000 more than budgeted. This is due to Other Local Revenue $ 11,960,105 $ 8,635,000 $ 8,635,000 $ 8,635,000 the increase in property values. Total Revenue $ 320,754,983 $ 314,910,145 $ 317,261,951 $ 314,598,727 For 2017-18 there are 15,687 frozen accounts. Expenses 199 and 161 $ (301,932,687) $ (320,241,115) $ (320,241,115) $ (320,241,115) This is a decrease of 218 from a high of 15,905 in 2016-17. Sale of Real and Personal Property $ 43,626 $ - $ - $ - Transfers Out $ (9,000,000) $ (1,000,000) $ (1,000,000) $ (1,000,000) The decline in enrollment and increase in property Other Uses $ (3,451) $ - $ - $ - values tend to offset each other. The General fund is still expected to experience a deficit for 2017-18. Net Change in Fund Balance $ 9,862,471 $ (6,330,970) $ (3,979,164) $ (6,642,388) Beginning Fund Balance $ 91,733,360 $ 101,595,831 $ 101,595,831 $ 101,595,831 Ending Fund Balance $ 101,595,831 $ 95,264,861 $ 97,616,667 $ 94,953,443 Enrollment 39,268 39,636 39,380 39,380 Actual Demographer 2-Oct-17 2-Oct-17 11

New Financial Statements  Executive Summary  Payroll Expenditure Analysis  General Fund  Budget vs Actual Current and Prior Year  General Fund  Debt Service Fund  Child Nutrition 12

Date: October 18, 2017 To: Jeannie Stone, Ed.D. Superintendent From: David Pate, CPA Chief Financial Officer Subject: Summary of August 2017 Monthly Financial Statements YEAR TO DATE PAYROLL COSTS EXCLUDING TRS – FUND 199 The year to date payroll costs for the General Fund are slightly less than the amount budgeted at August 31, 2017. Actual payroll costs in the General Fund excluding TRS On-behalf payments are $11,246,382 compared to $11,440,323 at August 31, 2016. SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE General Fund (199) Revenues are consistent with the prior year and budget expectations. As of the end of August, 17% of the year has passed. Expenditures in all functions except one represent 17% or less of the budget. Function 53 – Data Processing Services expenditures represent 22% of the budget. Function 53 expenditures are slightly higher at the start of the year due to the timing of payments for software license and maintenance agreements. 13

FY 2018 General Fund Payroll Analysis Excluding TRS On-behalf $300.00 $250.00 $200.00 In Millions $150.00 $100.00 $50.00 $- Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun/Adj Budget By Month $5.09 $7.00 $25.86 $25.88 $25.89 $26.41 $25.51 $25.70 $25.46 $25.61 $25.56 $28.35 Actual By Month $4.50 $6.75 Cumulative Budget $5.09 $12.09 $37.95 $63.84 $89.73 $116.15 $141.65 $167.36 $192.81 $218.42 $243.98 $272.33 Cumulative Actual $4.50 $11.25 14