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
one size does not fit all
Group Discussion What types of experiences should a student have that would prepare them for long term success?
The 21 st Century Learner Outcomes/Skills • 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 Learner expectations
21 st century learning environments 21 s t cen t u r y l ear n i n g en v i r o n m en t s
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 2% 2% from three sources: • Federal funding 48% 48% • State funding • Local tax effort 50% 50% Federal State Local
Federal Funding • Appropriated for special programs or 2% 2% 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
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 50% 50% revenue per student at similar tax effort, considering all state and local tax revenues of districts after acknowledging all legitimate student and district cost differences.” Federal State Local
Local Tax Effort • Generated from property taxes (not sales taxes) • Victoria Central Appraisal District sets taxable home values 20.33% • Called “ad valorem” taxes $77.7 MM 48% 48% • Each year, a school district adopts two tax rates, which determine the total tax rate: M&O • Maintenance & Operations (M&O – aka general fund) • Interest & Sinking I&S (I&S – aka debt service) Federal State Local
Maintenance & Operations (M&O) Tax Rate Funds the day-to-day maintenance and For the av averag age citizen operations of the district this is similar ar to: • Salaries (for teachers and other staff) • Facility repairs and maintenance ✓ House repairs ✓ Car fuel • Bus repairs, maintenance and fuel ✓ Routine services • School supplies and materials ✓ Groceries • Utilities (electricity, water, etc.) ✓ Cleaning Supplies ✓ Utilities
Interest & Sinking (I&S) Tax Rate Funds debt repayment for “big ticket” items For the av averag age citizen • New building construction this is similar ar to: • Existing building renovations ✓ New home purchase • Land purchases ✓ House renovations • Program-specific equipment ✓ Land for a home • Technology ✓ New appliances • School buses ✓ New home computer ✓ New car 38
I&S (Debt Service) Funding What is a bond? A bond is a debt investment in which an investor INVESTOR OR loans money to a school district, with interest, IOU + BOND for a defined period of time. Essentially, it’s interest similar to a family taking out a mortgage for the purchase of their home. $ School districts issue bonds to pay for “big BORROW OWER ticket” capital needs: new facilities, (School District) renovations, land, technology, etc.
Local Tax Effort I&S M&O I&S funds may only be used The Annual District Budget to repay debt. is passed by the School Board of Trustees. They cannot nnot be used for sala larie ies, utilit ilitie ies or other 84.8 % of the District’s M&O day-to to-day expens nses. budget supports personne nnel l sala larie ies and d rela lated costs.
HB3 • House Bill 3, a school finance bill passed by the 86th Texas No money for new facilities to Employee pay increases address growth or renovations to Full-day PreK funding Legislature earlier this year existing facilities Increased base funding per student provided additional state funding for our schools and aims to $ X provide property tax relief to Texans. • Reduced M&O property tax rates M&O I&S by approximately $0.07cents per $100 valuation this year and potentially more over the next two years.
Local Tax Effort I&S M&O Capped at $.50 per $100 of Capped at $0.97 per $100 of property value. property value. Every cent requires voter approval If a district wants to raise the rate in a Bond Election. beyond the cap, it requires voter approval through the holding of a Tax Ratification Election. 42
Current Victoria ISD Tax Rate M&O I&S TOTAL TAX RATE TAX RATE TAX RATE + = $0.97 $0.2235 $1.1935 per $100 of property value
Tax Rate History Maintenance Debt Service 0.2263 0.2927 0.2926 0.2926 0.2790 0.2596 0.2344 0.2263 0.2263 0.2263 0.2235 1.15 1.04 1.04 1.04 1.04 1.03 1.03 1.03 1.03 1.03 0.97 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020
2019-20 General Fund Budget 15% Payroll Costs Supplies, Materials & Equipment 85% 85%
Bond History
Bond History $10,375,000 1989 $31,000,000 1998 $99,841,004 2007 $58,999,992 2008 2008
Bond Planning Process Overview
Bond Planning Process ASSESS REVIEW STUDY VISION Set Long Range Study Assess Needs Review Educational Vision Demographics & at Existing Financial for Academic Enrollment Facilities Data Programming Projections Identify deficiencies Understand the financial Determine evolution of Determine areas of and inequities implications to make program demands, underutilization, in existing fiscally-sound instructional objectives, overcapacity and needs campuses recommendations expectations and for future growth standards Ongoing ng Respons nsibilities of VISD
Bond Planning Process PRIORITIZE RECOMMEND CALL CONSIDER Prioritize Make Board Considers Board Calls a Potential Recommendations Calling Bond Bond Election Projects to the Board Election Board is required to take Develop consensus on Present findings and action on calling bond Board studies the how to address the recommended course of within 78 days of desired recommendations to Election Day District’s needs action to Trustees determine action Respons nsibility y of the Bond nd Planni nning ng Subcommittee
Bond Planning Process EDUCATE VOTE APPROVE SELL District Educates Voters Consider Voters Approve District Sells Bonds Voters on the Proposition(s) Bond Election to Investors Proposal School bond propositions A majority of voters District issues bond sales must be held with the voting in favor of the in increments over time It’s the school district’s General elections in May proposition(s) gives the to match the schedule of role to communicate or November Board authority to project design and facts about the bond sell bonds construction Share red d Respons nsibility
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