001We'll have roll call here. Sher join here. Here >> there it is. Albert reporting in. >> Can they hear me? >> Yes, sir. >> All right. Let the record show that there is a quorum of of board members uh present and that this meeting was duly called and posted in accordance with the Texas Open Meetings Act code 551. Stand for the pledges of allegiance. I aliance to the flag of the United States of America and to the republic for it stands. One nation indivisible flagg to the Texas one state and indivisible. There's no public participation. All right, we're going to move on to agenda item four and presentations, reports, and action items. 4 A is the government's team board and superintendent team building training development strategic roundt the discussion regarding the team of eight agreements
002governance pri priorities related to the 2026 2027 budget development Dr. Greg Gibson. >> Thank you, President Rodriguez and trustees and staff members. And since we have everyone together tonight, we will give some credit by me being here. And so we're going to bring uh even though maybe or we may be one of the few consulting firms that you don't have to endure a PowerPoint to get your credit, but we're going to just build it into the conversation. Uh so that's we're going to do that tonight. And before I show you set the framework for tonight and then again you want it on or off >> to some >> that we're talking about uh in order to give the credit but I thought about this when I was the staff and I were talking about the
003agenda just to be really clear and I think it might help maybe just kind of settle everyone into the purpose and and more probably already shared it won't hurt to reinforce So you're not doing the budget workshop tonight, you're getting ready to do the budget workshops. So there's just a lot of like really high level as we were kind of talking about planning out the budget for development process. what kept coming up is that there's just some big items that need to be talked about like and so if you if you schedule the first budget workshop and we just get right into those big items and we haven't done this pre meeting it gets hard to get to the what you're trying to do with the budget meetings because we didn't have a chance. So
004I love the concept of tonight because there's there's not an action item on the agenda. Right. >> Except for the real estate. >> That's right. If you've got one that y'all knew that that was coming, you know why it's coming. Everything else you can kind of just sit back if I'm a trustees and just listen to the information of your start taking notes for the reminding districts July one or September one. >> September. >> Okay. So, you've got all the way September one or the summer when you got to tax rates and all that, but you've got all of this time. >> So, you can almost just sit back and relax and just start formulating your costs. you don't necessarily have, you know, to like have all your thoughts perfectly crafted tonight, if that makes
005sense. You're just getting bringing information to think about this process. And I know I I I've probably told you all 772 board meetings in 23 years. Like that's where I drew the line. Like I'm not doing anymore. But I know on a on a workshop with an agenda like this for me in those 23 years, one of the things that I would say to the trustees because I had I had to practice it myself is it's the purpose of it is real high level information. And so if we get too far down into details, we bog down and we don't get through the whole agenda with our best energy if that makes sense. We there's a lot for you to hear. In fact, I was just you've got land, you got the financial advisor, you've
006got potential efficiencies, you got staff, and then you've got an analysis from fund function over the past few years of all of those are the big picture things before we kind of come back and say, "Okay, now we got some questions." And so, if we bog down too much and and again, this is talking to me as much as anybody. we bog down too much in minute detail at the front end of it and we're sitting here at midnight and we don't have our best energy, you know, when it really comes down to the let's talk part of it. I know does that make sense that so just there's no pressure for you to have a perfectly wellcraftrafted thought tonight. This is just you having a number. >> Okay. But I do want to u
007make clear when you're talking about potential where is that because I did not read that potential efficiencies or what >> it's under the item uh D. >> Oh no >> energy efficiency. >> Oh no that's energy efficiency. >> Okay. Then you let us know when are we talking about the I know Mr. Gibson has talked about how we're getting ready for the next uh budget, but we also want to talk about on the last board meeting as far as so >> right. So I think let's look at HI and J. So basically H is overarching targets and considerations. So when we're talking about our considerations for 20 states 27, they're completely based on our current state of finance because some of those will be coming up, >> right? And then um the revenue and expenditure
008assumptions again we're going to talk about how you want communicated. And then the the last piece of it is probably most important what we're starting to think about and how we're deficiency is a nicer word for cuts. But that's so that HIJ is when we're going to talk about okay where are we at exactly? Um why are we there and then what do we need to do to move forward? >> Because I had several board members asking about that. So I just want to make sure that >> those questions are not off the table >> but I just wanted Mr. gives it to let us know >> in these papers. I don't see them. >> Oh yeah, they have the pages right after the agenda items. This right after all the agenda. >> So really
009the Thank you, President Ro what I >> my preamble I guess is H and J is where we need to land with >> and we don't want to get so tired we don't right. We want to have some energy. Yeah, we want to have we're going to land in there with that conversation. And I think it's like extremely important for the administrative team to calibrate with the board on these big items. Otherwise, between now and September or let's just say now and July that they're developing the budget. If you don't have this, it's a value clarification. Let's just be clear. A budget is a value, right? You're basing your val. So if we don't clarify and uh calibrate between the board and the tactical team on what the big targets are, then the staff starts
010trying to figure it out and then you I've experienced this numerous times. You kind of get in a doom loop of well, we thought you wanted this. That's why we prepared all that. No, we don't want that. We didn't. So we're to the extent we can we're trying to ste measure twice and cut once. like, "Let's measure the board twice." And I learned as a kid, I cut I was always wanting to do it fast. Cut a board short. My dad sent me to the barn to find a board stretcher. And so, three hours later, I was still looking for a board stretcher. And I'd come out with advice and he'd say, "No, no." So, it turns out a board stretcher doesn't exist. Okay. I didn't know that. So, I spent three hours I spent
011three hours on the board. But this is the this is trying to measure twice. like we and I'm I think you guys are saying if we don't get complete agreement on HI and J tonight then that's where we start the next conversation right and that's and then we get the next conversation but at some point we have to say these are the targets and then now we're going to start on the budget development just taking some time and energy on the prim >> I think so and the key word is clarifying because um >> there's some there's still some questions >> correct and that's the purpose of where we're going to land later tonight. Now, just to make sure that I can give you credit u and not uh and and fulfill my obligations to
012earn the certification to give you credit, there is a handout and we're not going to read every single word on it, but we need to just raise awareness because this is basically what the training is over. And um we there's four documents in here and I'm going to flip back and I didn't say to print them in any particular order. So they're they're not in the order I'm going to talk about, but that's fine. And I every single time that either Mr. Graham or I or any of our other consultants talk to a board team and a senior leader team at the same time, administrative teams, we anchor back. >> I'm sorry, B. He sent these this morning. So they're not in actual >> Yeah. I mean they're also in our operating procedures up there
013too but yes >> I'm just I'm drawing attention to the three roles. So what we were just having a conversation about the strategic role and the tactical team which is sitting here and madam president you said it really well. We're tonight we're trying to clarify between these two roles right so that we make sure we get the budget the best way to support the operational is that so I thought this might be a good concrete got the strategic team here the board got the tactical team up here we're going to do a lot of conversation back and forth to make sure we build the budget to support the operational okay so that like we're really concrete so uh that took 15 minutes. Y'all made >> that took 15 minutes, but everybody's good with it. That
014was 15. Okay, >> practice. >> Yeah. So then if you flip um back towards the front of the packet one page, there is just something and this is the individual trustee typical work styles. So at one of the reasons that we're putting this out right now, this will probably be what Minister Graham and I and others present next summer at at uh summer conferences. So y'all are getting in advance. I told the team like it wasn't quite ready. There may be typos, but I thought it was really good for tonight, but some of the strategic team and I know that there are other ways to look at this, but you this and this is Harvard Business School primarily saying that board members, profit and nonprofit, typically fall into the datadriven board member. And if you
015look at the description, they like hard data, real numbers. Their strengths are in analyzing data, logical, solving complex problems. So then their preferred question over to the right is what their typical lead is I think and their primary focus is evidence-based. I'm not going to read to you but then that's data driven. Then often times there's a bottom line trusted you know what's the bottom line they usually want shorter meetings because it just was the bottom line you don't they in fact they wouldn't like tonight >> because all the tonight is not the necessarily the bottom line it's like building just all the information that's needed. Then there are trustees that are the relationship person. So we've got to make sure that uh we do this and keep the human element right up front. Then
016there are visionary leaders. Sometimes visionary board members do the best with the strategic role because they're always looking at two years from now, five years from now, 10 years from now. And then there's the historian which I find to be very comfortable for me and we drive people crazy because we say well I remember in 1992 when we built this building and I remember in so the point is you generally trustees can kind of shake out in one of these and it's okay it's natural for that to happen. There's nothing unnatural about we we just kind of are who we are as humans whether we're on a board or not. what what the tactical team one of the reason I'm showing this to the board or the strategic team tonight is for the tactical team
017for us to always think and I just remember the last board that I had before I retired you Mr. Harry was data driven and Mr. Ricks was relationship driven and Mr. DTO was visionary, right? So we had um seven board members and we had all six of these categories represented and that that was challenging sometimes but then you know I would just remind the other administrators you know that's that's who they are. So we have to think about it through Mr. Harrison through Mr. Rick's lens through Mr. Pivico's lens and because they're they're all going to look at this. Does that make sense? So that's just kind of a something for tactical and strategic team here together. All right. So then we're going to go to the very back page of the packets. By the
018way, that was another 15 minutes. So just went by. Um I want to go to the very back and the now again when we say typical modes you know we're just uh this is um and Campbell and Harvard Business School and Wharton Business School kind of all meshed together. We took research and information from all three of those and triangulated them. And over in the dark blue column over to the right. So before we were talking about individual trustees, this is talking about the board as a whole. See these individual members have a tendency to take on one of these four modes. So they are either passive or mentor or partner or control. And then over in the right hand in the blue we have those operationally defined. So passive allows management near total autonomy.
019Mentor allows management substantial authority but stays engaged during uh discussing various options. Partner is very similar to mentor but slightly different similar to the mentor but the board stays actively engaged all the way through the formal adoption or approval. and then control the board retains almost total decision makingaking authority. Now, I I worked in a district this morning and yesterday where they're hiring an interim superintendent and so they've been in control mode almost down the whole right hand column through all these set strategic direction budget development and but the interim superintendent is now in place. So, we were using this this morning to say, "Hey, I'm picking one. Marketing and PR, y'all kind of been in control, but now you've got to move over to department, right? Because you you've got the interim super antenna
020anyways." And so, what the point was and is that it was okay for them to be in control mode when they were because they were between superintendent. And by the way, someone needs to get in control if you're between superintendent, right? But then this grid was helping them find where they needed to land now that they have the interim in place and we'll have the his replacement in place soon. So I want to point out a couple of things on this. the well first of all the only there are and lawyers would probably agree with me there are some superintendents he nor I were one but some superintendents might say the board should be passive is that fair Mr. some some superintendent like the best board is the passive board. And see, we don't believe
021that. >> We we think the best boards are the best mentor and partner boards. The one does that make sense? And there's a little difference between mentor and partner. And so this false life or what false dichotomy that you're either in control or you're completely passive, we think that's wrong. like we and by the way the best way for the board to feel like they can be a good mentor and a good partner is to have workshop agendas like this where you're covering a lot of information and giving the board time to absorb and ask questions. tell how could we expect a board to be a good mentor and a good partner if they don't have all the information is that so this is time consuming it's a lot to put packets together and make
022all this happen but the staff is saying it's worth it because the board needs the information in order to you know be a good mentor board or a good department now I want these X's that are on here are really important under control and I know this goes without saying but mission, vision, and goals, which you all have established, they're all over. You know that you kind of had some control at that point of it. Then superintendent evaluate them. You're in control of uh superintendent secession planning. The board is fully in control of that. And then anytime there's a board member change, although the staff may help you, it's still it's a board effort, right? And so it's it's good for the board to realize that we've got these control these areas that we need
023to control. And if you look at budget development, now I'm going to lay on this plane on this one for another 15 minutes. In the budget development, sometimes boards because they are statutoily required to adopt the budget assume that they are in control of the whole budget process, right? Because we adopt it. And we would argue that you do have a control function. You have to be the one that posts, you know, officially signs the thing to post the tax rate and all that. But ideally, we think the X under budget development is back under mentor. We think that's where the best boards land. And if we read the definition of mentor, you allow the management substantial authority on decisions, but you always stay engaged in discussing the various options. Does that make sense? And
024so I would argue tonight is staying engaged and then you pointed out where are the items where you discuss the various options. In some way that's what you were asking for a while ago, right? You were asking for where oh it's items H I Okay, there's the various options. All right. Does that make sense? Does that create any questions? I went fast and I apologize but there's a lot of stuff talk about tonight. anyone anybody want anything to say that >> I'll say the budget development you got you got to be a partner in there too >> yeah thank you >> so I I really don't agree with just mentoring I think you have to be a partner you're going to be we're responsible for it but we should have some input into it uh
025you have to be a partner so that you can accomplish your goals >> for the following year not only fis fiscal goals But the other goals as far as keeping up with your maintenance of your of your buildings and all that and your personnel and all that. So >> senence and partner I think is what you're leaning into, sir. That you stay actively engaged all the way until the adoption. That's what you're saying, right? >> A little. Yeah. >> I think Mr. Graham, I'm going to >> I kind of agree. >> I'm gonna recommend that we put a double X on that one. Again, I told y'all we were just formulating this to get ready for next year. I like having Thank I like having an ex in mentor and an ex in partner because
026you have to do both of those functions. >> Well, I I would I would stay with mentor most of the time. you said some of the time because we don't know school finance. That's right. >> And that's when we count on both of them to come in with a budget like yeah this way this this part you you have to do this way because that's what the Texas TA requires and we don't know enough about that. So I do depend on them to do that. But I do agree with Mr. uh in at some point but that's when I say where it says you're going to have the options to discuss you know the variable options >> and if you look financial oversight he has part >> like you said you're going to tell us
027we have $23 million to work with >> and we can we're going to spend this much in payroll >> right >> this much in maintenance and and >> and all that security so we You say, "Well, we need more security people. Can we discuss that?" >> Yes. >> Right. >> And that's where you kind of going to >> We might put the X right between mentor >> because you may not need another full-time security. Yeah. You might just need a part time and the other side of the B. >> Correct. And I think that's a really good example and thank you for that conversation both of you the and and president rere thank you because if you and I the service page here's your last 15 minutes >> one one of one of and we've
028just been like we've been keeping up with whenever we see boards across we work with good boards we work but some people would say good boards some boards are challenging boards and so we we try to keep a running total just when we think board members have left the strategic role and then I want to lean into number two on here, President Rodri, >> because you're you're saying you have see some in some boards y'all might be shocked the the chief financial director brings information and then a trustee is saying no I brought I did my own research I brought my own information and once that occurs there's really nowhere to go right like you is now. So instead of and I my very first board meeting I was 33 years old. I thought I
029was so smart, you know, just got a doctorate and just thought I was the smartest and you know, sit down and they hired me and they loved me and the trustee that I did not see at my hiring because he hadn't attended meetings in a couple years decided to attend my very first meeting and you could hear the air just get sucked out of the room and he brought a flip chart and you start and he set it up. He set up an easel behind he and I. I thought maybe that's what they do. I don't know. And that he started showing his research compared to what because he you know he knew more than the CFO and you know I'm just like sweating bullets and but the point was the trust had broken down
030so much prior to my arrival that that trustee is doing their own research. And the the strategic role in the boards have every right part of the end of the conversation tonight is to share what information you need right to make an informed decision. That's part of what we're what information does the board need. That's you know H I'm making stuff up here but you know tonight we looked at this chart. I'm I'm really making things up. If we just added a column that also showed the percentage of the total. Again, I'm making it up. That would be helpful. Oh, that's a good idea. You see, you you didn't say I want I'm gonna put the percentages in myself. You just said if we could just add a column because that helps me as a
031trustee know what percent you know that that to me and I think Mr. grand whatever. That's the kind of things we want at board members like how do you need to look at the information because that's why we have the board agenda meetings because >> I tell and sometimes I suggest look I really think they're going to start asking you questions like this. So why don't you add that just yeah here's we said here's a we have 200 >> they're looking at the overall picture of us are looking are trying to be more transparent and it's not that they're hiding anything but I think just I told her it's going to be more transparent for the board to know oh that's why they did it that way >> right and I think I think would
032agree with this as long as the data and 99% of it was readily available. It just wasn't on the chart we added. It just was I think and I hate to suck you into this, but when it when all of a sudden we were generating 50 clock hours of work to to generate some new data, that's when it's just like this, >> right? And says, "Oh, yeah, we can we can fix that." >> We were sitting and there was we were trying to on Monday night the board members know this as well. Tonight in humans we're gonna talk about the staffing study in a very broad term but then Monday we're going to actually look grade level by grade level dyslexia sped even sped broken down per you know campus per disability and so I
033had the numbers and the number of teachers and say can you just give me the ratio >> like so I can just see a 20 to1 of course that's let's do that >> okay that is a perfect example because we live in it so much sometimes we don't think about it because it just we know right because we're just in it all day >> and there's certain I mean the board knows oh I know 20 to one I know what that means and I know that for elementary we're right on so it's things like that they don't have to look at the individual numbers oh we're at 28 >> okay is that good >> right that's of course easy enough yeah >> well and that so there's just an intro and it's a team of
034a kind of backdrop to everything we're doing That's not to say that on the day of the meeting another board member might say, "Well, what about you know this?" >> And then that when Miss Moore or Miss Bendis comes in, we can say, "We'll see you." I mean, we certainly have the information we can send it to. So just so you know at the end of this the concept that we're aiming for ideally is to have enough of these calibrate you know sharing information that we start developing what we affectionately call a budget parameter memo so that by the time July rolls around trustees y'all seeing these assumptions so many times you're just like doing that yes we need a quorum there to vote on the tax revenue you've seen you've seen the the budget
035assumptions so much and you're so comfortable with what it is. I mean, that's kind of the goal to get you way out ahead of this. It's March. >> I mean, I would argue it's not way out, but it is it's not some people start the budget process in June. We want the board to adopt it in July, you know, and it's just >> how can you do that? So, we're going to incrementally take bites of it along the way >> for tonight's first. >> Okay, >> sounds good. I think uh hold on to >> Ber. >> Yes. >> No, I have it. I just how many times do we have to approve to sell these properties? >> We three years ago and we were able to sell it. We sold one property. So we have
036four other ones that we really wanted to uh sell financially and we feel that we're going to save some money. Um we do have this destiny here to explain we do have to have lots of approval in three years. Um, the one property that we did sell, we sent we sold it to Mr. Once and I was just informed that he turned around and sold it to Dr. Horton. So, the good news is Dr. Horton builds really fast and they're getting ready to build a bunch of houses. So, that's great news. >> Which property? >> The one that is on Rockford right there beside uh old central >> is getting ready to be a >> buk. I know. >> Before you get to the houses, >> so I thought that was great news because they
037do build really fast. >> I just found this out today. I'm gonna get a hold of see how it is or what kind of project. So I guess Miss Destiny. >> Yes. Can y'all hear me? >> Yes. Okay, wonderful. Let me see if I can get my camera to cooperate with me. Give me one second. >> Okay, sorry about that. >> Okay, so I know that we've already looked over selling these properties a number of times over the past uh several years, but since the last time that we went out, we only got um one that closed. Um so we do have those remaining properties that we need to reauthorize to put back out on the market. And the reason why we're just coming back to you all today is because obviously the market has
038fluctuated from the last time that we spoke about this to today. Um, and so we just wanted to make sure that we had the board's authorization to place them back on the market, following the same procedures that we did last time in terms of filing the public notice in the newspaper. Um, doing the bid package that we've already prepared for the the last time that we put them on the market. We would just update the dates. Um, obviously one of the ones that we had out for bid last time is was already closed, so we'll remove that one. Um, and then hopefully we'll have some bids to bring back to y'all at a a close meeting. Um, but again, just needed the board to reauthorize that so we could put it back out and if
039there was any other things that the board wanted to be done before then. >> I start right about the process. The prior time we did put a little contingency in there that they had to build. So do y'all want to leave that? >> Can you show that again? >> The prior time we went out for bits. We put a clause in there that they had to build houses. We don't want them for them to purchase a land and just stay sitting there. We want to make sure that there's housing. >> Yeah. So I was just to before they start ask I'm trying to picture it. It's a one where the >> Do you know where our record is? cafeteria cafeteria >> beside it and it's a it's a long before the house would start that
040building. >> So how many houses can they build there? >> They can build quite a bit of houses there. >> It just depends on the footprint that they're going to utilize. I know that Dr. Horton has different square footage that they use. Um >> I'm sorry. >> Can you repeat that? >> Yeah. So, whenever the the home builders generally plan a development, they'll have different lot sizes. So, sometimes it'll range from a halfacre lot. Um, sometimes they'll be based off of square footage and they'll be much smaller than that. So, depending on the type of product that they're going to put out, they could, you know, really put a good amount of homes in that area. It really just depends on what their master plan is. But I think that the district obviously has the
041ability to reach out to them and see what the master plan is because you're going to have to prepare for enrollment. Um, and I think that's a conversation that would be helpful for you all just planning for the future. >> Okay. On the the contingency once the property is sold, we can't tell them what to do with our property. >> There's a there's a reversionary restriction that we can put in there. We had talked about this kind of like the caveats with it, right? >> Um, right. >> I mean, they're not going to sell if we're going to tell them, well, you know what? We don't want you to build this and we want you to build that. >> Remember, that's what we all wanted. It's like a like >> the thing is property because
042all we're doing is we we have these properties sitting there. People are partying there. something happened there. Guess what? We're liable. West also is going to be liable. There's no insurance on those properties. There's nothing when you're doing this contingency. Well, man, if I'm going to pay $120,000 and then I they're going to tell me what I can and cannot build. Well, I'm going to buy it. I have I'm disagreeing because the last time when they brought in I know you weren't on there, you were on uh when they brought in the the housing development which was section 8, we disagreed >> and it wasn't her. You could have put a contingency wouldn't have to have that. >> I think that's our problem. That's why we're not solving. But let me ask you so like
043that gentleman that sold that property to somebody else, can they decide to do something different because they bought it on the It stays. Okay. >> It would be part of the restrictions on the land that would run with title. So they're gonna build >> a small property. I'm picturing what you're saying is from where we have the records room to to the back of >> all the way to the elementary. It's deep. >> It's long. >> Okay. It's long. It's it's going that way. So it's this like say this. So you're gonna build little hooks. That's >> like two or three houses and they they build them pretty it's the it's the space that they put them in there. They don't give you a lot of backyard a lot of sight kind of pack them
044in there. >> That's what I'm saying. Like the huts over there. We're only going with all this. >> Well, my thing is that the um You know what? You're right, Mr. You go ahead and got the floor. I'm done. >> I just I just I just remember that the board as a whole decided >> we can agree. Let me go on. I can't, like you said, we got to get on the page and move on because we will >> Well, what I'm visualizing is, you know, there's a small home over in Marina, but it's liveable, decent home. It's a decent home. So, and that is a small area right there. I can see those type of homes being there. and they're running between and 125. So they're known for taking spaces like that. I live
045home. >> Yeah. >> All right. Uh Miss Val, no questions for me. and Mazda. >> The last time, how long did we put this out in the market for someone to make a bid on it? >> What was the timeline? >> So, with the last time that we placed it out, we only have to allow it to run in the newspaper for two weeks. Um, but we did leave it open for a fairly decent amount of time. I know that we received the bid that we actually closed on pretty quickly, but there was some negotiation time. Um, but on the other ones that still remain, we didn't receive anything. So, we left it open for a decent amount of time, but now we're just, you know, time to go back out there. I think that
046obviously things have changed since the last time that we did. So, you know, now that you have Dr. important building in the area that might bring some more biders um competing home builders or something of that nature depending on the property size. >> I ask is because two weeks not enough for anything. >> No, it's not. It's not right. That's just >> your local people probably and you're not going to get the home builders like Orton. You didn't give them enough time to to see, hey, that property's for sale. So, my concern is two weeks is is not doing it. We need to keep it open much longer. Even if it's a month or month and a half or two, it gives us more more time for for word to spread around to say these
047properties are for sale. And I think within two weeks, how many people knew that it was for sale? I think that's one of the hard things that we need to work on is we didn't give it enough time out there in the market. You you don't put a home for sale for two weeks and say, "I'm taking it off the market." Sometimes sometimes they stick for two, three, four, five months, six months until the right person comes in. That property is not just for anybody. You got to have the right person come in to buy what what are they looking for? But they need time to do the research. So I my concern is we didn't give the land properties enough time. So what time limit are we going to look for this guy? >>
048I totally agree with you. I don't think two weeks is enough time for anybody to really compile a formal bid for a property, right? Um, so, you know, we're getting into the end of March. I think that it's fair for us to leave it open until, you know, maybe this summer or the end of the school year. I think that >> we get up every consider it. But also, where are we going to advertise? I mean, can we advertise on social media? Can we advertise on Craigslist, on Facebook? A lot of a lot of this people look at all those different avenues. Social media is free. Can we do that as an entity? >> So, you can definitely share it on your district website. I know that that doesn't necessarily get the traffic that you're
049that we want to reach out to, right? And then the newspaper only goes so far. Um, but the good thing about posting it, you know, once it's public, you really can send it to prospective biders in the area. Um, >> like real estate people or like builders, we like to share this with you and we make it >> to a lot of across the state. So, um, we're We'll potentially put it there so we can get all the kids and they specialize in real estate for government. >> Okay. And do we want to have that call still as far as housing? Because I remember Miss Georgie, you were very very vocal. I remember Miss Liz was very vocal about the Skinner. It was specifically Skinner that they said we want houses to go there because
050the neighborhood the neighborhood. I remember that. >> Wanted the apartments. >> I remember y'all didn't want the apartments. Y'all agreed. Now she somehow forgot and she she might have gotten mad because I remember that conversation that that's a large property and y'all didn't want it just to go to hey we're going to build something commercial or whatever change the zoning >> and then the neighborhood it's not going to be part of the neighborhood anymore. Y'all wanted it to blend in whether it's neighborhood make sure that there's houses built in there because we do need to make Exactly. >> That was my point behind that. So generating money for children because the land can sit there and we need to continue. I mean our >> revenue that we have to figure out how >> the more
051houses they can build in there the more tech >> and we have had several people reach out. They're interested in the land now. There's more they're actively asking Mr. Mo about himself. He said that we want him to land that he wish for the price that we had. So he he said he's very interested. >> So the other thing are are we are we going to put out there for sale signs out there so that it is >> and do we want to look at our minimum bids again because I think everything went up. real estate went up, but my taxes, my land on my property, my house double. It used to be 10,000, 20,000, now it's 20,000. So, I think we need to look at that. And at least if we if if we
052were asking 200,000 last time, maybe we at 230 and we said, well, we got a bit 200, we might consider that now instead of we were at two 200,000 and now they're offering us 170,000. So, I really think we need to look at what we want to ask for these properties. Also, >> Jesse, I have a question. So, let's just I mean O and I are looking at potential cash flow. Let's just say we open it. I'm just saying in six weeks or eight weeks, something like that >> and we don't get any bids that we like. Can we extend it? >> Yeah. Oh, absolutely. We could we can extend the duty. Why did we get somebody buy? Because we take it off the market and we sat on it for three two or three
053years off the market. >> But in between if we got a bid in four weeks or six weeks, >> right, an initial closure, let's just say we said six weeks for initial, >> just keep listing it until >> we get something. And I think that's where we we should have done last time. I think we were just expecting to get big. >> Is the what's the dilemma over there? the fact that you said we're coming back after three years. We need we need to be updated at least six months, but we cannot wait another three years because an incident just happened again >> and you don't like calling the the authorities because they're like, "What do you want us to come out for?" They're parked there and >> Yeah. We're not >> Yeah. So, but
054that shouldn't have to be the phone call that needs to be made had we we're on it. We're we're going to sell it. We're getting ready. So, we can't be waiting three years. You need to give us an update every six months if it needs mean extending it. >> I think I'm hearing six weeks instead of six months. >> Okay, good. Even better. Because that is the dilemma. And just >> if I may add, I think it might be a good idea for us to if we're going to do it for six weeks, right? After five weeks, if we don't have anything back, let's extend it another six weeks, right? And we'll just continue to do that until we get to that point where, you know, there may be another fluctuation in the market or,
055you know, >> that mean that the board comes back to renegotiate whatever we asked for. We can um but you know I don't know if we necessarily need to do that but I do think it would be important to have y'all updated at least via a Friday update or something like that every six weeks. >> Those updates. >> Yeah. And then with regard to the market value, that was something that I definitely wanted to touch on tonight. I know that the numbers have probably drastically changed from the last time that we posted these. And so I think that it's probably I I would never advise the district to let the bidding set the market value. I think that we need to set that market value because we have the right to do that. And so
056maybe getting either an updated appraisal or an updated broker's opinion of what the fair market value is to set the bid is a good idea. Will that push us back, you know, two weeks before we can post it? Absolutely. But I think it's it's worth doing. >> So I have a question real quick. So let's say we're going to list it for 45 days. Mhm. >> The 30th day we get at least the minimum bid then we can consider that. Correct. >> Correct. Yes. >> Okay. >> Am I correct? >> Yeah. >> Or to the end of 45 days. >> So if you receive it on the 30th day but you have a 45day posting period, we have to wait till that 45th day to open it. >> This should be 30 days. >> So
057So say that again. So if we have it if we have a 45day timeline, this is the date that it has to be submitted on, but someone submits it, you know, 10 days early, we still have to wait until the close date. >> What if we did 30 days? No, we can always extend, but we're not going to take it off the market. >> Exactly. at the 29th day we can say >> you don't want to do six months and then you had a bid on the third week and you have to wait >> and then you have >> and that's why I'm asking the question because we want it what is what is better for us >> I think 30 days is fair and then at least that allows you to run it in
058the newspaper twice right um which is the statutory requirement then you have an additional two weeks for them to get all of their ducks in a row we keep it live and online on our website um we can do the for sale sign out front of the property, obviously putting the numbers that are that coincide with the contact for the bid. So, we can have do all of these strategic things. And you're right, if we get to I would say even day 25, if we're getting to day 25, we need to issue an extension. >> Okay, let make sure I understand you. Let's say we listen for 30 days. >> And every time we extend it, we have to put it in the newspaper. >> No, no, no, no. you just extend it and you
059can update the deadline on your website. >> Okay. So, we don't have to extend it in the newspaper saying we're looking for bids again because that gets expensive. >> It does get expensive. What I would say is that if we've extended it three times and we haven't gotten anything, it might be a good idea to maybe try again in the newspaper. Um, but you know, the newspaper is just it's not nobody's reading it anymore really, right? Everything is online and digital and you know social media has taken over. So we may need to look at some other avenues to make it public. >> So so for our website can we take the pictures that we have? We can put it on our website. This is what the property looks like. This is what the description
060this is the the lot numbers and all that. We can put that on our web page. All of that would be linked within your um do you have an online bidding? >> That's what I had said the public surplus. We're going to do that with that and >> that really you know is going to offer us the for a lot of people to be able to see this including the >> right. So what you would do is on the website you would post a link to that surplus website. >> They click it, it takes them there and then all that information would be there. Got it. >> So on the first time we only put it out on the newspaper. >> So that's the statutory requirement. That's the only thing that you're required. >> We
061put the newspaper and then we put signs >> and then we virtual the last time. That's what I'm saying. >> But you're adding virtual. You don't have to go see a house anymore in person. It's all virtual. >> So, as long as we have the link, then they can look at the properties, they can look at the plats, everything that you showed us here, if it's on there, >> that that'll that's more information for them. They can figure out put we can put 50 homes here. Yeah, it's worth it to buy it for that price. >> And you know how to do this? Did you suggest to us, hey, maybe you need to go virtual? We need I mean, we're not very limited. I mean, we had our website. We just didn't have the pictures
062in there. >> Well, our website, I'm saying virtual like blast it out there. I mean, what are the other avenues? What are you suggesting? >> So, I definitely think that having this additional platform that we've been discussing is going to be helpful. Having We didn't have that before, right? So, we didn't have that link to where they could go and look at everything on this web page and it would show everything. I think that's going to be helpful. Um, obviously newspaper doesn't really get us very far, but word of mouth really helps. Um, and then we can also explore some other avenues. I know that I mean sometimes when districts work with brokers, what the brokers are doing is they're really just communicating with other people in the area, which is what the district can
063do, right? Not to say that brokers are unnecessary, but right now I I don't know what more it would do. So I think within the time from today until the time that we get the appraisal done, we can explore some additional avenues as to how to get the word out in a more public way. >> And that's >> I had a conversation with you about the timeline was too short >> and we didn't advertise it like in social media and other other platforms. I didn't realize it. >> We can't do social media. >> But but the thing that the the plus thing about our properties is there's already electricity there. There's already utility. All the utilities are there. Nobody has to spend the extra money other than maybe build a street or two by skin.
064>> Utilities are there. Sewage is there. That's the plus and that's something that we need to point out when we list these properties. do your own due diligence as far as but as far we know these utilities are there but it's up to you to make sure that they're there and where are they >> but to include that in there >> and then beyond just going based off of what they see that you provide them. We can also have them schedule appointments with maybe someone from your maintenance and operations department to go out there and walk the site or something like that just to really have them see the >> make them look pretty they'll sell. >> Yeah, >> I think there's agreement that we're accelerating the timeline. Everybody's in agreement and then we're going
065to take at least three additional strategies. Okay. >> Other than just a statutory requirement. We're take three additional strategies. I have money. >> Okay. So, we need to vote. >> Okay. So, before we vote, are we voting for the pricing of it also? >> Are we v are we voting on the details or authority to >> you're coming back with those details? >> Are we just put for sale? But we don't know. We we don't we haven't decided on the price yet. So I think part of this this action would also be to authorize the administration to receive an updated appraisal or evaluation of the properties. >> And what about the avenues that we're supposedly going to take other than the newspaper which is the requirement? >> We're definitely that's something that's not part of
066but yes >> yes that would be part of the authorization that we >> I want to be aware of it because I didn't know that's all we did last time. Yeah. So, this the action that you're taking right now is just giving us the authorization to publish notice of it, which can include these other avenues. >> Don't think we did it right the first time. We didn't advertise it right the first time. The timeline was too short and then we waited so long to relist them. Those were the mistakes that were made that we don't I think we want to avoid. >> Yes, we did. >> Okay. Once we vote on this, I do want to know the details on the next board meeting. Yeah. We're not going to be waiting three years. We're not
067going to be finding out that we only put it out for two weeks and we're not going to be finding out that we only did it through the the requirements. There's other auctions which >> So, Miss Mendes, what is your recommendation? An appraisal will run us $400, $600 per property versus >> more than that. >> More. Okay. Versus uh maybe getting a realtor to give us >> uh our lawyer. Can we ask the question to them? >> Yeah. Destiny. >> Destiny. >> Yeah, of course. >> So, uh can we do we have to go through an appraisal process or can we get like a local realtor to give us what is the market in? >> Yeah. So that's um when we talk about a broker's opinion, what we get is a a broker or a
068real estate agent can look at comps within the area and then they can give you an estimate for what the fair market value is for the land versus an individual appraisal appraising four different property. >> Correct. >> Yeah, I think we need to do that. And it will be faster too. Yes, it'll be faster and you'll have it's actually a more condensed report which is actually very helpful because appraisals can be 75 pages long and you know gives you one sentence of it is actually relevant. um that I think it is very helpful and just to condense that. >> Say that again. The last >> she's saying that not only is it the price less, not only is the timeline shorter if you do a broker versus um real uh versus a full appraisal, but
069the actual report is more useful because an appraisal report has all kinds of additional information that >> Yes. Exactly. and they're they're comparing us to what's sold over here, what's sold over there, what's square footage, and it's we're kind of unique. >> so I think we all agree we're going to move move forward using a broker to get us the information about the fair market value that we're going to advertise. We're going to initially open it for four weeks knowing that we can extend it if we don't get any bids. Um >> I can tell you one thing like behind the food bank those properties are selling for millions. If you just look at the text, >> I've done that before. >> And then you kind of sometimes you can take well what's a square
070footage of it, >> right? >> And then what's our square footage? kind of get an idea of >> those are um >> and then part of your action tonight is to adopt the resolution that I believe everybody should have a copy of and it it what that resolution does is it just the board is declaring those properties once again not necessary for educational purposes and also authorizing the publication We find it. Yes. So, so to understand y'all correctly, y'all are going to come back to us with what we asking for as far as what are they worth, >> right? >> As far as uh where we list it, as far as what the timeline is going to be, and then we're going to vote. Yes, we agree on the price. Yes, we agree on the
071timeline. Yes, we agree where we're going to advertise. And then we approve it. Do they all >> Well, we could actually do that instead. What we could do if that's what the board would like to hear an update on before taking action to adopt that resolution. I think that that's perfectly fair. So, what we could do today is just switch gears and just to authorize going out to get the broker's opinion for the valuation of the >> propert. And if we do that and delay it more, I mean we have a cash flow problem, >> right? >> We need to move it so that we can generate and we can make sure. >> So what are you suggesting? >> That we approve it now. >> Approve what? >> At what price? >> At whatever the
072market value we're going to go get the comps and we figure that out the prices. So after after that we don't have a sale. >> After that we don't have a say. >> You would you would have said this is what we're selling in property >> and and that's when you'll say and you all agreed on the contingency that there had to be houses built there. >> Yeah. We just want to make sure. I mean but that's how you did it last time. That part I do remember. I mean you did you came in you sold it. I didn't have a a say in that. I didn't even know that they were the only ones that got all of the other companies >> and and you they you agreed with them that it was on
073the price you had listed which we already were aware of it. They just want to make sure you're not changing anything. Oh, it was a 250,000 and and you you agreed to 230. I know. >> On my monthly superintendent report, I had status of real estate selling >> like that was just >> I think we need to add it to get rid of the properties. >> Oh, Miss Moore already knows that. Yeah. >> Right. But I think that just a good way that because we just had a lot of properties >> and you had a lot more but you had a lot, >> right? But we still monthly we just checked in like this is the status. We did a one page board. >> Okay. >> That way you can just keep up with where
074we are. >> So the done extensive research on this place that we're gonna um what's it called? >> public surplus and then they they will then share information across the state um through the newspaper of course through the the website. Um and then there's been several people that have reached out. Um >> well uh if you're not if you cannot tell me all the places that you're g the avenues that you're going to go and advertise, I do want the board to know by the end of the month. That way >> comes out when >> what we could do and just >> No questions, >> right? >> Oh, you only went out through the newspaper. I wasn't aware of that but I wasn't. Monday. What I come for today is Wednesday, today's Tuesday. By next
075Monday, I can just send you like the links to this these people with detailed information about um the public surplus. We're saying um who's the gentleman that um aren't >> we? Yes. But can we just kind of ask him where do you look for properties when you >> and he might be able to help us? >> We just advertising. I mean, I did call people. I did some other stuff. >> He might say, "Well, this is our faith area where we go over the world." >> We reached out to him and he brought us up when he brought >> I want to go through that. Where's the guy who got Yeah. >> Well, you know, we brought in we talked to Alex Garcia from the service center because he had said that he was interested.
076>> Yeah. You still saying that >> tonight the motion is just to authorize the sale, right, Destiny? It's not all these other not all the details yet. >> Tonight it's just to render those properties not necessary for educational purposes and to proceed with the sale. Yes. >> Page 14 I think is important >> knowing that once we do receive bids those would come back to you for approval. >> Yeah. J has a motion. >> It's a very lengthy motion and feel free to add anything else you want to it. So >> I think we've all agreed that initially it will be four weeks and then >> and we're leaving that they have to build housing single family homes. >> We're leaving all the same >> single family homes. >> Okay. And then we'll provide and
077what we could do just I could prepare an attorney client privilege memo to share with the superintendent to then share with the board just about the appraisal values and the um the avenues that we find for publication >> and if you find other avenues I would appreciate it if you would share it with our people. >> Absolutely. Yes. 100% in this and I I want to be able to to put it out there as much as we can. >> Yes, absolutely. As many different ways as we can to get the job done 100%. >> Yeah. >> Because other districts are out there selling. Calen is selling. TM is selling. >> So, it's y'all's turn. >> Okay. I need to hear a motion for agenda item 4B and a second. I'll >> motion. We need to
078read it. >> A motion that the board adopts the resolution adopting the sale of the properties listed in the agenda for this item in corresponding resolution as presented and authorize the superintendent to post notice of the district's intent to sell this properties in accordance with section 272.001 of the Texas local government code to receive and to open sealed proposals and to present said proposals to the board of trustees for acceptance or rejection. >> All right, a motion has been made by Oscar Adono and seconded by Belinda Gonzalez. We'll go ahead and vote. >> Miss Sher Jordan. >> Hi. >> Bella. >> Hi. >> Albert. >> Hi. >> Belinda Gonzalez. >> Hi. >> Oscar. >> Hi. >> Belma Rodriguez. >> I can tell what time she left. >> 611. 61. >> Thank you, ma'am. >> All
079right. This motion passes. 6. We're going to move on to agenda item >> C night. Thank you. >> Byebye. >> Discuss and report with question and answer session regarding Estrada's financial advisor update. Miss Mendes and Mr. Um we have with us and he will go over our guess so far. When you hear the status, you just need to mute it, please. >> I'm sorry. There's just a delay. I'm operating like four different computers. >> I know, but there's still there. Next slide, page. Perfect. >> You land it. >> Perfect. All right. Well, good evening everyone. Um, I guess for purposes of the the record of recording, my name is Tony Hassel with STR. Uh, we've had a sincere privilege of serving the district for a few years now. Um, but like Miss said, we're Miss
080Mendes mentioned, we're going to just run perfect. uh your your your bond portfolio and then just talk a little bit about the debt capacities. I know that's been um you know subject of discussion in in you know prior years about how much can we bond out if we should decide to do that at at some point in the future. So uh let's go ahead and and uh jump in and I guess just my own two cents. which is always kind of interesting to kind of sit at and it brings back some some good memories. The brief four years that I got to serve on the school board. So, uh so anyway, but let's jump in uh to this slide here that's up on the on the screen. So, this is your your your debt profile
081in tabular and graphic format. So, it's, you know, really, uh, whether we have five five different bond series outstanding or five loans, if you will, outstanding. Uh, the PAR amount, uh, as of fiscal 25, uh, stands at 21,765,000. And so, of that 21.7 million, 18.4 of that is eligible to be refunded at certain points in time. Uh I think I the last time I was here too I might have mentioned that we were um this year we did have the opportunity to look at a bond refinancing and I'll cover that in a in a few slides but that kind of uh that middle column there titled amount callable is what helps me keep track of when the district uh might have an opportunity for savings. And so that prompts me to to you know start
082preparing some of that analysis to bring it to uh explore Miss Bend's intention. And so um so there again 18 million 415 is eligible to be refinanced at at certain points and and those certain points are uh given to you in that final column there titled call date. Uh and so as you can see the unlimited tax referending bonds that were issued back in 2016, there's still about $4.5 million of those uh hanging around and that's the principal amount uh that's still hanging around and on August 15th of this year uh that is the official call date and so we would be able to um call those away or or refinance those and so we have been uh just kind of monitoring what that looks like. I I do feel there's a strong potential for
083some some savings or enough for it to make sense for me to say, "Hey, let's go ahead and step through this transaction." Um, just to talk brief briefly about where we are. Um, you know, as you might guess just watching the news, it's kind of a point of of uh of volatility right now just with everything happening in the Middle East. Um, you know, we saw rates that were in a really good range um a month ago and you know, as we started, you know, our activity uh with the run, you know, you start seeing rates kind of climb back up. Very interesting because typically when you have conflict like that, everybody uh rushes into the Treasury market and that causes rates to actually fall. Uh but we're not we're not seeing that. So, uh,
084what we think is that others are finding value, not so much in the US dollar, but maybe things like metals. So, we've seen things like prices of gold, prices of silver start to increase. Um, again, just kind of interesting what uh uh what that tells us about, you know, how our dollar is huge uh from a growing perspective. But uh anyway, um aside from that top table, uh we then provide you with some historical uh tax rate data as well as your your bond rating. Um again just to remind you you the district carries a a single A rating from standard reports uh which is a a good investment rating and I you won't waste the opportunity to to mention it again but I I happen to uh bring your most recent bond rating report
085uh from standard reports with me and this was a review that that uh S&P did with the district back in September and there was a uh so the A rating was always there. Sometimes uh bond rating companies will give you something called an outlook. And so previously there was an A rating with a negative outlook. That kind of meant that well if current conditions um continue or persist the negative outlook indicates that there was maybe a higher chance than not of there being a rate and down rate. Well, after the recent, you know, kind of review, you know, reviewing, I guess for uh results, speaking with these four, they affirm that a rating uh but they remove the negative outlook changing. So that, you know, to me is a win. Uh something to be celebrated
086uh and congratulations on because that, you know, again, as you guys would have there come here and start to make tough decisions coming into a budget season, uh and just navigating through the environment that is public school finance in this state. Um there's a lot of tough decisions you all are having to make, but in doing so, it it it yields positive results with with these folks when they're kind of analyzing you as a as a as an educator. So congratulations on that. Uh the bottom graph um bar graph is really again it's a graphical uh representation of of that that bond portfolio principle of interest. And so as you can see the your maturities on all of your outstanding debt range from 2026 to 2049 provided we don't issue any more debt from here
087till 2049. That will you know that will be the final bond payment that that you make. But as you can see, you're you're paying really as far as debt service. And when I talk about debt service, I'm talking about not just the principal, but also the interest. Um it's it's, you know, fairly level there from 26 to uh well, let's call it 2032 or 2031, that $2.5 million range. Once we start to hit 2032, it comes down a little bit. Obviously, it drops off dramatically after 2034. And so um you know again looking at that what that tells you know my folks is that you know if you do try to bond in the future we may want to structure um we may want to structure your bond machine so that we kind of fill
088in we don't so much want to add on to the bars from 27 to 34. you might be forced to, right? There's no way, but you might want to try to fill it in from the 2035 on because you have capacity basically to do that. So, moving on to the next slide, I think I think it's frozen. >> Oh, you have control over there. >> Yeah, if you scroll, does anything happen? >> No, I think you have like the right train. >> Okay. Well, this um this graph here on slide three uh callable coupons is really again some kind of a graphical representation of of one of those columns uh on the prior side. So again, this is a good picture for me to say, hey, you know what, Tony, you've got uh callable debt
089for for Westo. And what we've done with prior bond issues is that we've been able to structure these call dates so that you know from 26 to 28 really 26 to 30 we skipped a year there but there are issues and the nice thing about that is that it does give you some flexibility uh should you ever need to to you know massage the INS rate a little bit. We know that there are some years where we could go in and refund debt. So again, you know, we talked about the opportunity this year. So it looks like, you know, uh we're going to have about $4.5 million in in in August of of this year uh that's eligible to be uh refunded or refinanced. And the red bar tells me that the coupons that we
090would look at refinancing fall into that four to 4.9 range. Uh so, you know, >> that's what we the bonds that we're paying are between four and four 4.9 right now. correct on the on the the 2016 series because that's what's um you know that's what's callable uh this year in 2026. Uh in 2027 uh it just so happens to be that they're in that same range. So like for just you know for example with the purposes of discussion when we get to 2028 there's approximately five and a half uh maybe that's approaching five and 3/4 million uh worth of bonds that could conceivably be called. Odds are though if we're looking at that green bar which is the larger portion that's in the 3 to 3.9. >> Odds are you may not be able
091to that that may not make economic sense. Um now having said that we've all lived through a pandemic and you know global credit crisis uh in 2008 so who knows but odds are odds are those are probably going to be too low to to look at but nevertheless we'll run that uh we'll run that track when we get there in 2028. Uh but anyway, this is just kind of a graphical representation for you all, but for me as well to kind of keep track of of what I need to to be looking at and kind of involve to give you you as as many times as we can. We want to help you uh lower your your debt surplus payments. >> And so in the slide that follows, this is kind of the the the
092nitty-gritty here. Um, so this looks at our our capacity analysis and in in times past I I came to you with a little bit of a of a higher number of uh of capacity. Uh, but again given where we are u currently in rates it's, you know, really eroded some of that. Um, and so let me let me explain what we're looking at here. So as we look at this from from left to right and we show that the taxable assessed value, we come and look at at what we show as your your AV at at a billion 116 >> and then again this is probably not realistic and I hope not the case but just to be conservative we we assume that that's going to be the value from year to eternity basically just
093to model conservatively for you. Um so we assume no growth and then as we move over in the column uh to the right uh that is okay what's what's the district's INS tax rate and so we again sit there and keep the kept that at 0.5 uh moving over we assume that the district will collect approximately 92% uh in the current year of its uh of its collections and then we provide your your again the debt service that you plan to pay here in 2026 of you know roughly two and a half almost 2.6 million and so we show just as a calculation what tax rate would be required to support that 2 and a half or almost 2.6 six and so we come out with, you know, 25 uh roughly 25 and a quarter
094cents. Um, and so that's kind of how we're reading that as we thought. So let's drop down to the next line, you know, our assumption of 2027. And so we kind of keeping everything static, but we start to layer in an assumed issuance of $32 million. So we say okay you know if we if we issued you know again let's assume we called an election 26 it would be for 32 million it would begin being paid back in fiscal 27 and that uh debt service payment would be approximately $2 million added on to the roughly two and a half that you already have outstanding. So, in total payments, and I've kind of moved over quickly a little bit here, but I'm a uh I guess what is it going to be like third from the
095right. So, all total that first uh that first year of paying back the what you currently have plus the new bonds, that'd be about four and a half almost $4.6 million, which would kind of require about what you're currently left. We're we're calculating 04457 cents on the INS tax rate just a hair of room which again is is a little bit uh uh conservative on our part but you know again there's some things uh that could help this out. one being growth in the assessed valuation uh over over zero um interest rates coming down that would allow us to maybe either borrow a little more or borrow that amount that would you know certainly lower the lower the bug >> so the the column with the debt service >> yes that's what we pay every
096year towards lowering our debt 2.592 two million two and a half million is what we're paying current just to pay on the digit that we have right now. >> That's right. Yes. So everything in this in this blue section is what you currently have and you as you stand today without doing anything this is what you currently have. In this green section here, this is what we're saying you, you know, based on all the factors of tax rate, you know, assess valuation, this is what we estimate you can uh go out for for bottom and still and hit that just under that 45 cents. So in 2027, >> we could only go up for 2 million dollars in bonds. >> 32 million. >> No. So it would be a total of 32 million. I see
097it. >> Just that that amortization over 30 years, your debt service payment, and remember debt service would be the the principal plus the interest, that would be, you know, $2,51,11. Um, and so it' be about that 2,50,000 range. >> And that would still keep us because our tax rate is point.45 whatever it is. It would it'll keep us under that with a 04457. >> That's exactly right. >> We still have a little bit of wiggle room. >> One of the assumptions is that everything stays the same for the next 25 years or so. >> Exactly. So you're trying to do if not if we don't ever build anything else in this district or any new businesses don't come in >> no property values >> as more businesses come in those numbers start to change in
098our we benefit more >> that's right so you you would find so like if this were dynamic and I could play with it on my on my laptop if I could if I started adjusting this assessed value growth I started adjusting that let's call it tweak it >> 3% % 2% 1%. So you would start to see this grow and what would happen is so this calculated detachment all the way over here would start coming down and conceivably I would start that 32 would start growing too a little bit more. My my question is we have passed where >> the M I guess it was we added more money to their >> no to INS >> INS. >> Yeah, the tax defeas. >> How has that brought down our debt? We started doing that this
099year, right? >> We did it last fiscal year. I believe we brought uh we paid down excuse me I want to say around 2.1 million. I'm going off of memory though. Um >> had we not done that what would have been? >> Well, so um okay so had we not done that your t your INS rate would have been around that you know 2524 range um and you would have just you know had this but you know roughly you would have had $160,000 more in every year. So it's helping us pay the debt a little bit faster because we have a little bit more money >> to add to our >> pay towards the principal. >> Uh correct >> which is par, >> right? >> Principal bar >> principal and par >> because when we
100look at these numbers here that you say we owe um >> let's go to the first page >> back to >> yeah let's say we we owe uh 5.25 to $5 million. That doesn't even include the interest on those $5 million. >> That's right. >> This is just what we borrow. >> Correct. >> Okay. Because that 21 million that we owed, >> it's probably double with the interest that correct. >> Right. So it's only feasible if interest rates will drop in the 3% to look at the caliber because they're at four 4.9% right now. >> Um yes and so so talking about some of those bonds that you can look to refinance. Well, so what what happens with that is that um so a good example would be those 2026 let's look at what we
101did for 2026 and we'll see here. >> Yeah. So as I indicated so that in in 2026 those bonds had coupons between four and 1.9 >> percent. Um it's not that we can say that that rates are at two and three right now. Really what what happens and they they basically would be overall and that's what helps it make economic sense. But what happens is as if if you look at a 30-year bond issue, you typically have lower rates onto the maturities that are on the near term years one through five. And then you kind of have, you know, rates are a little bit higher when you get let's well let's call it if we're talking 30 years years 1 through 10 rates are usually lower than the rates assigned to 11 through 20. And
102then the rates are a little bit higher when you get u in years 21 to 30. Well, over time, because remember on a bond deal, we usually allow the investor 10 years >> uh to collect their interest before we can exercise the option to refinance if it wants. >> So when those 10 years elapse, those those maturities in years 11 through 20, those now become >> year one through 10 bonds. And so we're able to assign lower rates to those. And so that's what we experience in the savings in those bonds that were years 21 through 30. Those now become 11 through 20 bonds. >> And then if you wait 10 more years, well, those 11 through 20 come down and they become year 1 through 10. >> So that's how that's that kind of
103work. have that term structure at interest rates. It would usually go it would usually go like this, you know, with the lower bonds on the front end and the higher coupons lower coupons, excuse me, on the on the low end and higher on on long. >> What you're telling us right now is we have the capacity to go off for funds in the amount of $32 million. >> Exactly. >> Right now, we have that capacity. >> Correct. without anything else changing the rate curve. That's right. >> Okay. >> But I also wanted I had a question on the graph you had where but just by looking at the graph uh this one here common sense tells you we're going to have much more capacity in the year 2035 because we're going to be we're going
104to pay off all that debt. >> Exactly. So, we're looking at building a junior high that's not going to last us till 2035 because if we wouldn't get the capac a real capacity to build a new school, we really wouldn't have that until 2035 where we get a lot of oh closer to that timeline. Right. >> Okay. So, we got to keep that junior high alive for at least Eight more years. 10 more years. Eight more years. 10 more years. >> Roughly. >> We have to have that junior high because we're going to talk about the junior high, right? >> So, we got to put it on life support until >> we can get the dead capacity to really go out and say >> it's really going to cost $80 million or more that time
105to build a new school, whatever school it is. But right now we don't have that without choking ourselves with so much dip. >> Am I correct? I mean the way I look at is we have no choice but to sink more money into that junior high. >> What is your opinion? >> Yeah it it it does. >> I would no study or nothing. What's the honest truth? >> Yeah. What's the truth? >> I would agree with you. I mean there is, you know, to some extent, you know, >> do we do it before then? >> You know, if you're talking like a full-blown junior high, I honestly don't see it. I I mean, I would tell you >> you don't see it until when? >> Well, easily 2035, but >> you could probably get away
106with something before that. So I would tell you that we could, you know, there is a way, you know, is there a way to what I like to call just, you know, get a little bit creative with how we structure this loan? Absolutely. You know, is that telling you that we could probably do something of size of 80 million or 75? >> You're talking about a loan or bonds? >> Bonds, but think of that discussing that. >> Yeah. This this is going to help us kind of help us with that. >> I know. >> But anyway, so uh my question >> you were talking about when we could we could go about >> but this is to take into consideration we need a new roof here. We need to fix this. We need so we
107have to have the capacity also to maintain what we already have. And that's where >> and we can't afford to take care of what we already have. We can't afford an $80 million until maybe 2035. >> Yeah. >> Am I correct? >> Yes. And and and I would say even at 2035 that would probably constrain you significantly. If if let's just say again, you know, magically there was even let's say we could do 75 million. I'm not saying you can do 75 million and your tax rate would be like 30 cents. I'm I'm willing to bet that that's probably going to push you right here and leave you >> maxed out on the credit card while >> a whole 10 years. A whole what? >> We're talking realistic numbers here. >> Yeah. Okay. and and
108and again part of it that you know the way I like to think about it sometimes is is how fast can my values go over because that's really what supercharges your ability to to afford to pay. So, you know, a good analogy would be um I guess, you know, okay, so if I'm bumping along here and golly, I I need to repair my car, need to repair the water heater, um you know, and I'm putting it on the credit card because I've got rent, utilities, and and shoes to buy the kids and and, you know, dance lessons to pay for and all this kind of stuff. You know, >> how quickly can I make my income grow so that I might be able to >> pay a little bit more? pay a little bit more
109and >> waiting that long. Everything goes up >> 80,000 million but there's other during those 10 years. >> Okay. Is this what part is this? >> That's we're going to be bringing that up with H overarching targets and cons consideration. Where are we? >> I know, but I think it kind of fits in here so we start talking about it. So if he's saying we have a debt uh we can go out for 32 million without crippiness. >> Right. No, there's there's there's certainly adequate room on on the on the tax break. >> We haven't maxed out all the credit cards. >> You you have not it it um because again so it would you know let's assume we you know everything went forward it was passed you would be looking at a 44 cent
11044 and a half cent roughly INS you know starting from let me see it clear on the screen. So we'd be looking at a 44 cent tax rate from fiscal 27 to approximately 2032. Fiscal 2032 and then it starts to come down. Uh again assuming my static, >> you know, model proves that. Now, now odds are it's going to start coming down a little bit quicker because your values are going to go up. >> Uh now how much? Hard to say, but you know the big picture. Let's see kind of worst possible scenario. You're you're you're at 44 and a half cents until 2032. >> Is it fair to say that if you do choose to do that for a non junior high project, you're pushing the time for the junior high out even further?
111>> I guess >> well I'm not I wasn't done. So >> yeah. So because >> who came up with this? >> We we weren't. So these are immediate >> you as a maintenance director this we need to get this done. >> Tell me I mean how how did you prioritize this? >> I'll just give you a list of all the things that I see for example I don't think I have here turf maintenance stadium. >> Yeah. >> Let's just throw that out there. We need it right now. No, but we need to either start putting >> as far as structural. Okay. We're we're I already talked to Miss Moore. >> We don't anticipate that junior high coming down in a couple of years, but you talked to somebody. They do anticipate that coming down. >>
112Junior high. >> I want to talk about it because of that dollar amount, that 32 million. So when you're saying this is a priority as far as the junior high, >> this is not a priority list when this items that we see out there that we feel you guys need to be >> radar >> because if you don't know, we don't bring the turf right now when it comes down that we really need a term. Nobody brought it up to us, >> right? >> Yeah. Well, right. Do we do we need the tennis courts? >> Right. That's on there. That's been something I get asked. Okay. Right. Okay. I regular clo It's too much. >> No, I know. Um, >> but I'm saying as far as structural stuff, I mean, I don't want that junior
113high to where Yeah. the second floor came down last couple of years or whatever. >> Uh, >> did we start prioritizing like that? >> That's that whole bud that whole we had an entire agenda item just on looking at the junior. >> Okay. So, can we go back then and to say >> what about that 32? >> Yeah, that's why we're sort of introducing this now >> because if we can bring this up. We're gonna have to bring this up. Let me finish. Okay. So, I want to make sure that we keep that in mind. That was never in mind. That was never brought up to the board. So, that 32 million gives us kind of some hope. Some hope. But of course I didn't this is not prioritized. I see that it's some of
114it is for the high school, some of it is for JK, some of it is for the junior high but yeah I think >> and actually so brings up a great point and just to you know keep it in some sort of framework. So this is assuming a a bond issue and obviously as you guys know >> we're not gonna get into >> call it and cross your fingers and hope that you know for the best um assuming it gets approved >> right. Oh yeah, that there's your other big because the community, you know, they have to have a lot of >> Having said that, you know, if uh you know, it's been my experience that when the community really sees that certain things are able to die or need, there's >> when they see
115it, you know, like the last one we went, we really they really pushed it as far as having pictures out there as having little not very many people attended, but as far as having little town hall meetings to let them know as far as having lists, priority lists that said we need don't don't be putting but as far as structural because they're talking about their kids school. They're talking about their kids going home. Oh, mom, we didn't have heat today or we didn't have AC today or you know, part of the ceiling when we were there at a career day or something, part of the ceiling came down. You know, kids are running to the principal who we were talking to and she was all flustered and I would be too. It wasn't a big
116thing, but one of those >> tiles. >> This is then this is just every perceived me. Yeah. >> Because when the turf comes, you're talking about over a million dollars. >> And you say, "We don't need a turf." Well, you're gonna get concussions. You're going to get some. So, we're going to need a turf or we're going to >> Yeah. I don't mean as far as we're going to need a turf. I would rather have the structural part of that junior high because I don't want kid falling through there because we said, "Oh, we have five more years." When really we have four more years. And then we again we'll be discussing that in great detail. >> Is he going to be here for that or he's >> well he's already gonna give us the
117information this information that we have we have this 32 million. So I guess within that what that would be >> is it may I ask just a thought that's so I think maybe maybe one of the things you're asking questions towards is if that ling for the junior is out there quite a ways then what what do we need to do and how do we need to go about doing >> yeah if you know that you can't you're not going to get a 7580 million bond here >> it's yeah are we going to let the junior high break down every year. >> We can't kick the ballerating that we can't wait the 10 years or that 35. >> That's why I asked >> $8 million scenario of 20 35. But now if we add another
11825 million that changes the equation where >> we're still going to have more debt >> but we won't have >> the intent of this paper is not to add another 25 million. The intent of this paper is for you guys to see. We're not going to go and do the tur we're not going to go do the auditorium seats. We're not going to do none of that stuff. We want you to be informed because when you go and you sit in this auditorium and say, "Well, why haven't you replaced the seats?" When we get to this, the value that the cost of this we want to look forward to the thing that we as to plan ahead and to see where where we stand. >> Yeah. Because this is basically a wish list. Yeah. >>
119Know that we are looking at this. We are when you get approached with somebody and this is broken. We don't we know we just haven't >> some of it might be a wish list but some of it better be replaced. >> These are perceived. >> That's why I kept referring to the structural part because yeah they need to be replaced. But one other thing before you go, maybe you're not going to be here. >> Um the you know about the train loan supposedly, how does that impact that 32 million as far as us financially? >> So and kind of help out there a little bit. It's a train loan. >> They're totally separate. >> It's a SEC loan and the impact is that that we're going to have to pay it on the MO. So
120when we pay that, our fund balance unfortunately keeps on going down. So that affects it because you have to have a healthy fund balance so you can be able to pass this. And is that you know just a a question for for my knowledge is that um is that like an energy is that like okay so the perceived savings >> so have you encountered that I mean you >> we have heard we so yes to answer your question we we are aware that those are u and they happen all the time. Um, >> sorry. >> Do they always provide you with original plan savings? >> I think that's what we're going to discuss next. >> But as far as does it affect us in a negative way? >> Um, no. Because as said, it's really
121coming out from a separate uh the separate bucket. It's coming out of your operating budget and not so much the tax that you're going to have for death purposes. >> So it would not affect to where Oh yeah, you >> it has an indirect. >> Well, that's what I want to know. Uh would it impact if we said okay we got the loan for 80 million or whatever. Does it impact that 32 million that we could go out for a bond >> and I'm sorry about >> and it's about what is it 2 million >> depends on what scenario we go with >> if it two million I mean I wouldn't think it would have anything meaningful >> or the loan >> right is that the amount of the loan that we're >> correct but
122the you know it's a different set of issues in terms of our cash flow. >> I get that it's too codified. But still I want to know is there an a a drastic or a a negative impact when we do say you know what we are going to go up the 32 million. >> Yeah I I wouldn't pursue that. It's a it's a relative you know modest amount of of money to be borrowing. Again it's coming out of your operating budget. So clearly it's you know you would and you know again as I understand kind of how those things work you need to display that there is surplus monies to to afford to pay that back. So >> so >> well it has to prove itself. >> Correct. So um so yeah I I I
123really don't see someone saying you know boy this is putting a negative pressure on your you know that in and of itself is gonna is gonna that's going to do it all on its own kind of you know, borrowing, you know, 30 32 million. That's that's, you know, that's that's going to be enough. That's going to be enough to to >> that's going to move the needle more than 2 million. >> And Tony, it's not all or nothing, right? We could look at this list and say, okay, we have the capacity to build we want to just do 12 million for the the high priority items. There's not >> correct >> not >> there's this is just saying that is the absolute ceiling not that we're you're not that you're recommending a us going out
124for a 32 >> no this is 32 million is what keeps you at about that 45 >> that's about how you know as much you can borrow assuming these um constraints that would keep you at at roughly 45 cents on the IS exactly right you you all manage this as as you may see fit and I've you know for what it's worth seeing um uh you know looking at that list you know those kind of perceived needs and and you know what's going to break down in six or 12 months you know what can you get by from 12 to 18 and then what would be nice to have but not necessarily urgent you know kind of where you know how do you guys prioritize that that's yeah >> okay so knowing that are is
125your facilities committee looking at those priorities you know based on definitely this within six months. Definitely this within a year. Are we forecasting any of this? >> Yep. >> And we actually I mean a few months ago we brought a forecast to you guys 10 year forecast but we are looking at that but unfortunately we're at a reactive not a proactive so anything breaks it's like we have a budget so we're always reacting. >> When was that forecast was sent out? >> I don't remember. We we brought I think >> okay. Yeah, I would like to see something like that. I would like to see some forecast so that we can have some hope. >> But we haven't been able to do anything. >> I think the >> I know that Chris Mendes, but still
126the board would like to be aware of it. >> So it would be nice >> to have it. We're all working on reality. >> So that's what I think we've been bringing. What we need with broad forecast was the idea. I think my idea today is we need to start looking at given our reality. Do we want that's I think one of the questions that we're going to get to by H&J are we going to recommend looking at a bond that takes care of some of the >> exact kind of where we want the discussion to go but we still >> so those discussions have been made at y'all's facility committee committees >> we have been looking at to >> everything and then prioritizing. We we know that we're going to need roofs. >> Yeah.
127>> Period. >> And then possibly chillers. We know we're going to need an elevator. >> So then if we do decide to go with this bond, that means it's going to be even longer before we even get you because we're going to try to pay this. >> We have no choice because >> we won't have the capacity until 2035. And that's why I kept drilling when we put it in. So I have a question for you. You have two buckets of money. We talk about the INS. >> What can we do on the M O side? >> Is there something is there some kind of capacity there that would help us that would help us with some of the maintenance? Right. The >> M. >> Yes. Um >> that would have to be voter approved.
128>> Correct. >> Uh well no. So you have to um >> where are we at on that right now? What do we know what the rate is right now? What we have on the MO side? >> Go back a couple >> and do we have any capacity there and what way do we have a capacity on that? >> Yes. >> Maybe we're not >> I go back forward. >> Well, so keep in mind it's you know that's based on your operating budget, right? the same same bucket of money that you're paying salary and you know the utilities and kind of all that stuff from. So, you know, yes, can you borrow on from the maintenance and operations levy? >> Certainly. >> Uh, can you borrow for anything that typically if you're you're doing maintenance projects?
129>> Um, and I maintenance projects, >> correct? >> Which is kind of what you >> which we haven't been doing, >> but what you'd have to do is demonstrate that there is surplus revenues. And so, you know, I would say if you're if you're operating in one point, uh on M uh you know, again, basically staff just have to demonstrate that yeah, we've got money left over that we can conceivably I mean, I could certainly go run a scenario and say, hey, you know, the debt service on on, you know, this making a tax. >> So, are we taking away from from salaries? Are we taking away from something else in order to do that? >> It's all that same bucket. >> All the same buckets. We're just moving the money around. >> Basically, I
130mean, >> you're making you're making decisions on where your place. >> Okay. Okay. I understand it better. So, how do we determine the 669? >> The state >> is the function. >> The state is the one that tells you >> every year it changes. >> You do have the option of voter approved. >> Correct. So is that what we call the golden pennies? >> You you you probably have some golden pennies in there that you probably have some available if it's not an avatar and you have some golden pennies available but the voters are going to have to say we had to vote on it to go beyond that base that the state. >> Now the state has to put in new restrict restrictions to that lately in the last legislation. >> Well, every year
131they changed what the floor and ceiling, right? Yeah. >> Yeah. They basically as more said it's a great way to put they basically give you a lot. >> So in order for that to go up we would need voter voter approval but up to what point could we go up? >> There's a certain amount of golden pennies available and then a certain amount of copper pennies available >> and how do we know how much we have available? >> Well, it exists. I just don't know off the top of my head. >> But but the state will put a limit on that. >> Yes, there is a limit. >> There's a limit on it, but it has to go border approval. and we have to prove to them >> that you're being efficient with all your
132dollars. In fact, it's a requirement. Our company does efficiency analyses that are required prior to >> So, is that something worth pursuing? >> That's that's how his >> it's yeah, I'm I'm kind of getting, you know, a little bit out of my lane. I mean, you know, legal, again, I'll go back to are you able to borrow out of that bucket of money? Yes. uh you would have to prove that you have and when I say you have to prove you have to prove to the attorney general before they approve the borrowing that you have adequate money and in your operating budget because again it's it's it's um you know it's what you use to pay for utilities salaries all gas and the buses all that kind of stuff right uh so you need to
133prove that yeah there's extra money to go pay this the pay for this financing uh but like Mr. for good mention, you know, yet the the >> So, it's not like a tax that you don't have to pay back. You have to pay back or pay back. >> So, you have to prove that there's adequate money in your operating budget to pay your debt. >> We could remember Okay, I'll bring up the source subject, but I'll >> So, the answer is no. >> No, the answer is not no. A couple of years ago, right, >> right? There's a whole thing where both Casey the attorney d the tax people all the forms and all of that >> and at that point we were going to go out for those extra golden pennies >> right and
134that and that's going to raise taxes and raise your taxes. So if we go out for the extra golden pennies, it's going to raise >> at the same time we're asking for bond money, >> right? >> I mean I for 21 years >> the maximum at M and the maximum at insely we're just growing and we >> and all I'm asking is are we at the maximum? No, we are not. No, you're not. >> But we have to go to the voters growing, >> right? But our growing >> Yes, ma'am. But just for frame of Well, we're growing houses, not with commercial. And so it wasn't helping a whole lot. Not as much as >> commercial doesn't have kids. >> Every house got us two kids and so our wealth could never, in fact, it
135was going down. Just for frame of reference, our rate at that time before this last state compression was a$150. We were at a dollar at M and 50 cents at IMS. This is a$11. >> You're 49 cents or 48 and a half cents below what I ran at for 20 years and Crowley I see just for frame bar. >> So what do y'all recommend? Should we look at that M? >> Well I yeah I would say that >> what is your opinion? I'll ask your opinion. Sure. Well, I think what I'm seeing is this is early, but it is related to the context when you're looking at all of this and then you're looking at a junior high that needs substantial. If there's not enough fund balance right now to take care of all this
136and I'm assuming the answer, okay, I thought I knew the answer, then something's got to give or you have to increase revenue. >> Okay. >> So, that is why you're not recommending to go to the MO or what? >> Because we don't have a fun. >> What is your stance on that? going. >> Okay. Okay. Now, now I understand. >> Okay. I understand. But we haven't done it. >> We are going to need like extra money because I know that they're just going to enforce that all buses need to have seat belts. >> That's next month. >> Well, that's what she said. >> So, I understand why we haven't done that. >> But we could look again at going out for the VAT. We could >> What's that? What's that? We would be raising the
137M, right? The golden pennies. >> Correct. >> Expensive though. >> Three Dr. Penny. >> Oh, there is. Yes. >> Thank you. So, you got to think of this. You got a chunk that you can and you can pick one penny, two penny, three penny, right? I think you can pick any. >> Yeah, if I may. >> Yes, go ahead. I'm sorry. I've been enjoying all of it. >> I've been reminding myself why I'm not a superintendent anymore. You you have uh the 17 above your compress rate. Uh your minimum compress rate right now is 57 cents per $100 valuation. Uh you've got a nickel, you got a golden two golden pennies on top of that. So you're at 62 cents. leaving three golden pennies. I don't know what a penny generates Westo, >> okay? >>
138But you can go. So voters could approve 12 more cents on the M side in West Oso. Now because they approve it doesn't mean you have to tax it. How many of them you tax is up to the board. So if you ask for the maximum approval, but you only need it to go over the penny. The guaranteed deal on the copper finish is what about $40 or something? I can't remember off the top of my head. Uh, but you've got three golden pennies available to you. You got nine copper pennies available to you. And I'm I'm appreciative of what your FA has up here. I will say one of the things that I think you need to not overlook if you start thinking about your school. Um, Dr. Gibson and I have built a
139lot of schools. I'm deeply involved in in relative bond issue that they're that they're working and pushing right now. Inflation is a real cost. >> Commercial construction right now bring 8 to 9% a year. >> So the law of 72 is something we need to know. So the law of 72 is anytime interest expressed in percentage multiplied by length of investment expressed in years equals 72 money doubles. Same thing applies to inflation. I mean if you invest money at 7% it takes 10 years for it to double at the bank. 10% portfol. So if you've got 8% inflation on commercial construction, and I'm I'm telling you anecdotally, that's what I believe it is. I'm not a construction manager, not an architect, and I'm an engineer. I'm just a guy from out of town. Okay. >>
140But so you go 8%, you go to what were we looking at? 2032 or 20? >> Yeah, 2035. >> 2035. Okay. And so we're at 20 years. So 8* 8 is 64. 8 times high is 72. What cost you 50 million today cost you 100 million then if commercial construction stays the same. And so maybe the truth is somewhere in between. Your your administrative team is bringing you options and concerns is what I'm hearing as I hear this. And so Dr. Gibson is talking about you know where can we go to increase revenue. And so one of the ways you can increase revenue is with a voter approved tax rate increase. All right. All right. Or election. I said increase its election. And I don't know, like I said, I could look I could probably
141figure out in the next three minutes what Penny generates here. But I think that before you go to voters, in my mind, I've always tried to maximize my ML first. >> Made sure I was doing everything I could. So, in my order of priority, and I'm not your not your superintendent, I'm not your administration. They're going to throw me out of my ear. But I think you need to look at both of them, particularly if I mean, I don't know what your needs are. But you you've got some opportunity on the M side that needs to be discussed. Okay? We need to tear it out and see what it looks like. That's an easy enough calculation for us to do for anybody to really sit down and see what that looks like and consider that
142I see a lot of districts and they are successful when they are talking about earnestly what their needs are. We have a building that's going to fall down and if we wait I I'm not saying you do. Okay, we have a building that's doing this and if we wait for bond capacity alone, then the cost of it is going to increase meaning. Okay, and so what can we do now? What can we do on the M side to stop deferring maintenance and take care of our employees? Okay, the M, you know, we'll defer maintenance and then what and then how do we supplement that with with a bond issue? I I think that I sit here and listen and Kim forgive me >> more forgive me. I think you got to be close. >> It's
143got to be a blend of both. >> That's why I asked the question because we don't talk about the imite. We're just >> we're focus on one thing, >> but are we maximizing? You do have to keep the money separate, but you're going at you're you're targeting everything with every tool and tool >> because we can't keep up with the maintenance of what we have right now. >> And maybe we're not back to my >> this way. You got an INS interesting thing tool box and then you've got an M tool box, >> right? >> And we just need to make sure we got all the tools in both boxes to keep up with that. That's right. The last thing I would say to you to point about tool boxes, I talk about color of
144light. Your M is green. Spend it on whatever the board approved to spend it on. Okay? Your INS money is blue. You can only spend it on what INS can be spent on or what the voters approve for you to spend it on. >> But you've got to use both of them simultaneously. You can't ignore one >> at at any point in time. >> And right now, we're just doing the INS and ignoring the M. And we're not fixing stuff. And then it kicks down the road five more years. Well, that roof was a million dollars. Now it's 1.5. Now, five years later, >> and now we really can't afford it. >> Right. When you're looking at this is perceived need and back to the board president's question that got us here. That was good.
145We put a lot of these pieces together that we won't talk about later. We're putting it together now. You you you don't attack this with just one thing, >> right? >> Some of this could go away with symbolic capacity. Some of this could go away with fund balance. Don't kill it. >> But I mean like if fund balance was available >> if if fund balance was available, some of this could go away not go away with three penny golden penny voter approved tax ratification. So it took all of these tools. It took every one of these to get the these perceived needs where we >> and then we get housing. That's just a plus. >> Well, and then that just starts helping you with your capacity for when you right. >> That's exactly right. Now
146I I guess I would uh yeah I mean you know it that is true and keep in mind you know it is a process and it's it's a it's a story you all would have to to tell >> we need us all unified we can't just raise that m >> yeah it's a tough act right >> I understand >> particularly if you're going to try to do it but we also have to look We have to also look at uh the house homestead exemption is now at what >> 140. So >> why so you just made me think about something I think Lloyd and I are saying both. I don't know that we're saying ask for them both at the same >> Exactly. You don't want to hit them all and then they fail. >>
147So like go get one >> and then >> we got that tool. >> Settle in. What's the value >> but at least we know that we have that that tool in there for later and then >> bottom line are you not you're not going after that because you're saying it's coming out of the same pot. So if you're if you're going to do the M O, you still have to have money for the operating expenses. So what would keep us from doing that? >> From doing what, man? >> Going. >> Yeah. Nothing. The only reason was >> what was the reason that we >> on because we did do a a tax increase when we voted on the defeasance increase taxes. You remember we we did 11 cents or something like that. So our INS
148side was at about 30 cents >> and then we raised it to 45ent. So we just did that >> the timing was >> we did it a year and a half ago and so I think we want and I think now could be a time >> we didn't want to we didn't want to double double increase taxes. So we increase taxes. I know but we haven't even been talking about it. So now we're talking about it. Well, one other thing at the end of tonight just to be clear and I just made a note that I think we're going to talk about revenue assumptions on your budget parameter memo and I'm just I just wrote down >> TR goes on that list. >> Okay. >> Do you see that tonight that's all we >> Yeah.
149>> Like everybody agrees you guys put it on the list because if it was a hard note like don't no I'm not saying you're saying that. >> Yeah. I'm just saying it's not a hard note. >> It's not a hard note. That's what I'm hearing. Is it a hard note? >> Thank you. >> Yeah, you put it on the list is something that we and then we go to Lloyd's point earlier. We go show you what one penny would generate, two pennies would generate, three pennies would generate four, right? That's what you do. >> So, it's all about the timing also, not only on this, but on the >> right. We don't want people to see, okay, my taxes went up, >> right? I mean it's talking about the people that are around here >>
150because you remember the we were able to move the INS with the for the defeasence was just a >> but I really think what really helps is the the homestead going to 140. >> Yeah. >> And this would be if we're going to do it would be a good time to do it because >> they're exempting taxes because their houses are worth $140,000. >> That's true. That's how low our community >> had we got done. Had the homestead not been at that level, we wouldn't even >> That's another check mark in the positive. I think they're going to do it again this next time. >> I think they will. And to your point, Madam President, if I may, and if I can be quiet, >> I think that, you know, a better understanding of what
151your tax base is >> would help the conversation. How much of it is industry paying and what's growing out? I'm very appreciative. >> You have those numbers. >> I'm very >> actually in a sampling study. >> You have the numbers of of how much we tax businesses and how much we >> Well, the CB I'm talking about what used to be called CBT. >> Say that one more time. >> I'm talking about what used to be called CBTD property tax. You know how it breaks out. What percentage of you industry had 82% industry? >> See, so if you're 82% industry and your average homestead 140 and the average value of your home is 100,000. >> That's a pretty powerful narrative for both the bond and the favor in my life. >> But I I'm very
152appre I've seen a million of these things what your FA FA is doing for I'm very appreciative they take a very conservative stance. Yeah, >> 100%. >> But not at the same time. >> Well, what I'm saying >> I I I was breathing as you were talking. >> He kept the value up into 2050 that nothing was achieve. >> That's what I'm saying to you. But I would want to sit down and model my industrial growth. We're going to have an offset against Homestead. But if my industrial growth is growing 5% a year, I'm not saying that you need to put 5% in your model, but 2% or 3% might be such a >> Okay. >> And so I would want to see I mean we can you look at comp property tax CVT shoes
153on the district and figure out what that is. It is is too complicated for what we're doing here tonight and and this man was not did not come prepared to speak to it. I'm not trying to put him on the spot in any form or fashion. I know he can hear, >> but don't ignore the 12 pennies that you have. >> Okay? Don't ignore your golden pennies or your pennies and then take a look at how it might grow and it out. And y'all have some questions to make the right decision. I will say this to you. It's not about the answer you give. It's about the questions you write and you always raise the right question. >> I think I think it's asking the right questions because sometimes it's questions that we ask that
154take us down rabbit trails, right? >> And it boggles us down when we should have been asking the hard questions. >> So I ask about the M because we haven't brought it up in a while. Yeah. >> And that there's money there. >> Yes. >> That we're leaving on the table >> and when can we touch when would be the right time to touch them? pushing them again >> with knowing that we might have to go out for for a bond. >> Is it something that we're gonna do three years from now? >> But remember, but remember we're already taxing at that 45. >> But you but remember you have a exemption of $140,000. >> No, but my point is that we're already taxing right now at the 45 cents >> INF. We're good on
155that side. >> Well, what I'm saying is if we're going up for a bond, we're not going to be raising that side. We're maxed out on our >> correct. I understand that. >> Right. So, so that so in other words going out for a bond would be borrowing money but it wouldn't be that wouldn't impact >> the 32 million that he's talking about wouldn't raise >> it would still keep us a little bit under >> the 32 million would you would still be at 45 cents >> 45 correct >> a little bit of breing what >> the same constraints of of your values not growing and and so forth like >> true today was the true Yes, >> right now we're using that extra money. >> The only thing that's that's growing in this district
156is commercial. >> Yeah. >> And it grows real slow, a snail's case, but that's the only thing. We can't rely on new neighborhoods because we have the land. We We're not landlocked with some of like some of the other we don't have that problem. The problem we have is nobody wants to build here. We have all the land in the world. >> But they I think you been out. Certainly I think they're >> but no new neighborhood has gone up within the last 40 years. >> No, I agree. But now they are actually building up the wine. Um he's saying that no that >> I'm like who said I want to see your nail Jesus >> until you see it. because we've we've been promised so much for so long >> that it it never
157happens. >> Well, part is that the city did give permits for the infrastructure down there down where >> it comes down to this M. >> Have you driven down >> and it comes out to interest rates and it it comes out to the cost of >> we counted kids on enrollment? >> Say that again. So we counted kids on enrollment when curbs were built. >> Yes. >> Yeah. >> Like everything else was just people talking, >> right? >> When curbs were cut, >> when that when that water line goes in and that shorter line, >> that's a sign of hope. >> It is a sign of hope. >> All right. So just to just to add I guess to address someone I think I am reading this correctly. It looks like about commercial you commercial
158and I'm going to lump in industrial with that it's going to be it's historically been in like the 30 to 35% range of your value. >> What's the balance of the values on the stratification? I have so I have I'm looking at a report that lists the assessed valuation by state category and so it you know gives it absolute dollar amount percentage based on like your real residential vacant lots. >> So Tony what you're saying is industry growing at a 30 to 35% rate. No, no, >> no. I'm just saying it makes up about 30% of your >> value. Okay, it makes >> it's uh looking here residential, single family, and multifamily uh last year was about 21%. So it's >> what's the rest? >> Yeah. What's the >> uh Yeah. So again, commercial um
159so there's a tangible and personal commercial. I guess that's about 22%. And then it's just it's you know distributed to other kind of smaller like >> oil and gas utilities um >> mom and pops. >> Yeah. So and it's I guess we probably have to spend some time aggregating probably some of these other ones to get like a real true >> but the 21% residential. >> 21% residential. Everything else has been commercial open land. >> Yeah. minimal value industrial industrial property. >> Yeah, that's they come over here to build. >> Yeah, they do. And they're huge. They're huge. >> They build the land. >> So, why one of the things I did as we were talking on H and I is I just started making notes because we went ahead and went there. So I'm
160just saying when we get to those I I started making notes. So we won't be at a standstill when we get to those. But you did have three >> well two rather >> well yeah we need to get >> to get those guests and then we'll kind of start putting a bow around where we are today. Is that right? >> Yeah. We're gonna go ahead and y'all need to get here. >> We got two got two guests. >> No, no, no. We're not going to take a long break. We're gonna give them five minutes to get their dinner. >> Oh, we're done with Mr. Hoso. >> I think so. I think that was good. I'm glad you were here with you forever. >> If we would have had that interplay between and M and you
161not here to keep us within the lines, it was it was good. That was good discussion. I'll open it. Oh, we only have five minutes. Coming back to That's what that in there. She should >> I tell you what I want to Okay. >> It's a very very important Valentine St. Patrick's Day. >> Take whatever you want. Y'all eat. >> Yes, please. Oh, charging now. >> Yeah, I'm gonna go. I'm going to get 200 outside. So they're going to they're they want to see that happen. They want to look at that for sure that's going to run this. They're just banking on the fact that you're gonna pay this loan back by >> your counting on. >> That's correct. >> Because we don't want to get it out of the >> correct. That's correct. Our
162goal is um I've been hearing all day about, you know, the money issues and everything else. Our goal is just to look at this. You know, we want to have it at that. Yes. >> Underneath the fund balance. >> So, another range. What happens if we replace that junior high in 10 years and we didn't go out all 15 years? It doesn't exist anymore. That >> that's that's going to be that's going to be something that you're going to have to either if it's not included it's not going to work. So it's not gonna >> we may not get the 10 years that you're seeing >> let's say I'm you know if I have to make this it's going to be right here >> again high school maybe we have to consider doing something to
163get that thing >> but it may not last us 15 years or >> it may not again I don't know how policy >> but we're still going to be paying the loan but not getting the savings because it's not there. >> Yep. Good point because we when we we thought about that because we are going to have like a warranty of uh of stock in in your district um throughout the five years. Okay. That's that's going to be a stock that's going to be there. If for some reason the seven year you're going to have to get you know the junior high school's going away and we was working with a contractor assured that they take all the pictures out and bring back none of that. store to store the other. >> Yeah, I don't
164think it's in a junior high school, it's going to have the same light as the west west elevator. It's not going to change, you know. >> It's just unfortunate. I I just >> The only thing about that is when you tear down a building and you start going ballot by ballot, that's manpower. >> They just like to they just like to bulldoze everything. >> Correct. And that's where you you you bring in a you know look for a bid to go ahead and put that and we'll help you out with the you know that contractor. >> Oh let's say the window it's it's not worth them saving the windows or whatever because of the labor the labor intense. That's correct. as well. >> So, as far as your success rate, what what what percentage do
165you have that you went out to an ISD and you were able to give? >> Well, we pretty much all around the Texas where we oversee them. We have quite a few of them. Um, >> those do you have any local schools around? >> Uh, no, we don't have any local. >> Actually, Corpus Christ went a different route. They went with ESCO. um that is where there it's a it's a guarantee uh loan a little bit more expensive but that company um guarantee that they would be saving that that further money unfortunately I don't think they they've gone into a I'm not going to say it just don't it's no longer there >> just put it that way >> it's a what >> it's no longer there >> they did not continue it >> but
166can you provide us the documentation of your successful ISDs as far as the >> Yeah, we can give you we give you a list of our code grants that we I mean see those that we had in the past. Um we're actually working one down street man um and a few not Brooks ISA. >> Yeah. >> And so we're working with with them there and then um yeah we have several around state that we use >> and but it it's really it's it's been a lot of lighting and control and some HVAC just fit right in there. It's more replacement than fixing. So on HBC I'd like to go to the next slide. Um yeah, this is this is another one we kind of bounced around a little bit. The question was what happens if
167we take the junior high school out? I just say we just delete it all together. That's still is a good 12.5 payback just for light pro water out of the picture for all schools. But unfortunately still we're still still looking at $80 down payments. So none of your recommendations include water? >> No. The first option one option four >> and this one does not. But option one option >> one is with water. Four is without water. >> But the one with the water it didn't >> No, the first one did. >> The first one did. Oh, >> that's for the junior high school. >> But then again, when you know, we knew about the water leak that was happening underneath underneath the building. And I was worried about seeing something that really hard to repeat
168that water so that it wasn't that bad. I mean, we just thought, well, why isn't it a lot higher than maybe the high school, you know, you have the just didn't happen. So, >> so, so then tonight we're deciding on which route to go, which >> um potentially, you know, I think we're gonna I want to couple this little bit later. We're not going to make a decision. >> Join us when >> the junior high junior high knowing exactly what you're going to do. >> And how much time do we have with this too? >> Um it's the seco. Um it's first come first basis. >> Okay. when you speak with them, they still have money available. >> Um, so remember, even if somebody puts the application in, they may not want to go into
169the project, so that money goes back into the pocket. Okay? So, you know, don't don't think that it it may not be there. I think >> and even if we don't do this, you're already prepared for next year. >> This starts August. uh the antis the end of the year. So January 1st of 2027 we would start again we would have to go back and kind of >> look at the inflation rate from here to then question do we want it if so do we want to get started >> we want water >> right the two feasible ones with all campuses with water all campuses how is this going to affect our pandemics >> right and that's why we need to get through the rest of that >> and the other thing is that you
170It's going to be, you know, unfortunately we have the issue with the junior high. So, uh, next slide. Okay. So, um, reach out to a it looks like we all would qualify up to $50,000 in rebate money with the with the live pictures. Um, that money would be directly from it be it' be between West Coastal and Pens. What we help support is the paperwork that we have to give to AP. >> And when would that money be issued? >> After the job is complete. They come out before the job is started and after completion then they that's when they start looking at >> they can help us pay for the boat. >> Yes. But that's Yes. So, as a person, that's great. Um, project, we kind of looked at probably $17,000 within the the
171whole year, the whole 15 years of So, you're looking about a thousand something a year that could be sending maintenance just by not buying bulbs and items like that because we're going to give those to you. You're going to have those in stock. So only thing labor you're going to have still have >> somebody will take it out put in when it goes out but at least you have the the actual bulbs in stock >> and the contract will state that you will provide us with those light bulbs for 15 years. >> Well you'd be surprised we're going to ask Denny where you want them because there are lots >> my my concern is >> just a concern >> is technology changes two three years we went from the regular light bulbs to uh the
172hall to LEDs to actually it's right now T5. >> So what happens if that technology changes >> it is not I mean we're tell we're looking at the T5s as the device that's going to save you money. Okay. Even if there technology moves forward, that heat is still in there. It's still gonna save you money on that on that. >> So, do you do we have that here? Like when you walk in the room, the lights turn on or turn off. >> That should also be helping to sense. >> So, realistically, it's just more of a a lighting project. Again, you have all the options and we're just saying, hey, here's all the five options. You see the good, bad, and ugly, and just determine where you want to be going into the course because
173once you say, okay, I'm going to pick option one and I keep you in your high school. So, then that's what we we submit the paperwork to let them, you know, that's the paper, but we got we got to give you the options and you got to, you know, which direction you had $80,000. Oh my gosh, that that last one would be awesome, you know, because you know, it's just a great payback. >> Another question. >> Yes, >> the $50,000 doesn't matter if we include the junior high or not. >> That's correct. Because it's the first time if if you if you include the first option include junior high school, guess what? You're still going to you're going to get probably up to $50,000. And if it doesn't, if if it doesn't, it's it's up
174to if I guess up to 50% off. If I had to make a guess, probably $35,000 for that. >> For sure. If we include the high, we're guaranteed $50,000. >> No, no, no, no. We don't get guaranteed. We have to submit it to a whatever they guarantee will give me a check. >> Okay. So, up to this is the word I need to look at. Right. Thank you. >> Yeah. Up to >> um >> they always tell you to read the five. >> No, no, no. I agree because don't the other thing is that we help you with the paperwork. We don't actually >> that's beyond you now. >> Yeah. We it's between a and west. So >> you know that the they do grant those that money to schools. You've seen it before. >>
175Oh yeah. In fact, Victoria County, um, we had we actually had a commissioner support and we gave them a big check, you know, what a gave them. So we want >> So we could possibly go to them and say if we do this and you commit to when when we give them the actual um before and after pictures that we submit to them. We can do a pre a pre um uh a rebate. We could okay we're gonna here's old pictures here are new pictures here's how many 4,000 so much pictures you know can you calculate that they have calculated on on website when you >> before the job starts >> yes that's how we come that's how we came up to 50,000 we looked at it now um it just depends on where that
176they really hasn't they haven't come up with the 2026 >> re I just hate the word up to because it's like a loophole >> and you Oh, oh, going out of business up to 70% off and you get there and it's 30 bucks 30% off and then the crappy stuff. That scares me. >> Yeah, unfortunately we don't have any control. >> I understand. But at least you're telling me you have no control. >> Yeah. >> In fact, you know, we we don't we just did a check come directly to >> Yeah. So, >> okay. So, Miss Moore, this is not this is just for discussion. So, you're going back with your administrative team. >> We can even discuss it later once you get information today about the junior high and where we're at with our
177fun. >> So, you can discuss it again with the board. Well, we can later in the agenda once we put all >> Yeah, you should look at where we at. >> As I've made some we just don't want to sit on it too long. We're going to revisit it again >> at the end. What between HI and Jake? It's part of I've got it as part of the budget >> because it's a consideration for the 26. >> All right. Any questions? Miss Jordan, >> Miss Gonzalez, >> Mr. >> Thank you, sir. You know, they say, you go to HB and say, "Oh, you saved $15." Yeah, I want to save$150. I want to stay home. All right, we're going to move on to agenda item 4. E, discuss and report with questions and answer sessions
178with bookcase and staffing study update. >> And then this is this handout because there's a million pieces of information. So, did we lose Mr. >> Oh, did we here a while ago? Mr. >> Mr. Mr. Mr. Bill Royale, can you hear us? >> You're right in that he's not here right now. He He's not currently inside the meeting. >> Are you there, Mr. >> No, he's he's not right now. >> Oh, well. We just don't know what time he left. So >> all right. >> Well, it's okay. He left. He said, "Oh, that grand matter. Thank you for your time. It's pleasure to be back in your boardroom with you. I'm Lloyd Graham Casey. I'm my privilege to have spent 25 years in the superintendency of Texas. I'm very familiar with the conversations y'all been
179having and frankly, ladies and gentlemen, I haven't missed one of them. But I'm appreciative that y'all are having. We're My uh my purpose tonight is just to introduce the methodology and staffing study. You have an executive summary that your uh superintendent did for you after uh she and I review all the documents. Uh the documents are probably 60 they may be as many as 70 or 75 pages in here. And so what I want you to know is um all of this was generated with publicly available data. So the corpus Christie caller times calls and want to know what to attack and so forth. It is all publicly available data. uh lay your administration or the end users users as are you and everybody else's audience and so kind of put together as an easy
180read map charts and graphs for an audience um a couple of points president Dr. can talk to you about type of trustee, you know, personality, so I said data driven and so forth and so on. What all trustees should have irrespective of the vantage point with which they view their role is a common understanding of community values. Values are the lenses through which you view data or whatever the role that you're you're in. Okay. And I think I'm I'm not at all certain that I've ever said this to y'all, but trustees by definition have the highest level of fiduciary responsibility to the people that they are entrusted for of any elected official in period. Sir Edenberg, a 16th century British philosopher said that there were two types of officials, elected officials and representatives were powers.
181that were delegates, people that were elected to represent the will of the people that elected them. And that's everybody when you look around, that's a county commissioner, that's city council, that's a mayor, there's state rep, that's president for that matter. But trustees were elected to exercise their judgment, even if it was against popular will because y'all held in trust to care individuals that could not care for themselves. In this case, it's children that have mandatory attendance to come to school. And so it is a highly to your highest level of fiduciary responsibilities to the kids. And so when I I think about this and I'm I just I don't like the word efficiency. The only time I'm going to use the word efficiency when I'm looking at staffing is if I'm actually looking at something
182that the outcome is known of and can can be measured. We did a cursory review of your high school schedule. Uh visited with your your superintendent about that. There's x number of kids. There's x number of of periods to teach. There's x number of classes. There's x number of teachers. So you can calculate efficiency how much of the time is being used in direct instruction and how many kids are being arranged but your staffing as a whole represents the largest investment that you're going to make in this district. Okay? So I talk about whether you're investing overinvesting or investing. Efficiency is an adjudicated construct in the state of Texas. It's a constitutional requirement and so I'm very careful in the way I use it. And so I'm not going to talk to you about whether
183or not I think your staffing is efficient or inefficient. Just about where you may have uh just about where you may look at investments or investments. And so I don't have a clicker. How do I move forward? >> Tell move you forward. >> Can I move forward? >> Yes, sir. >> I'll roll. >> All right. I'm in control now. We're going to start here's the peer districts that were chosen. Westo districts, Hillsboro, Pittsburgh, Point Isabel, Raymondville. When you go through here, you're going to look at enrollment trends. You can say which way yours is headed. I'm not going to spend a lot of time on this. I'm going to get down to some control charts in a minute. I'm not going to talk this to death unless y'all want me to. I've got a bottle
184of water. I assure you I can. All right. attendance. ADA to enrollment ratio is something I pay attention to. That's not the same thing as average fail attendance. All right? And your ADA to enrollment ratio, uh, I'm just going to tell you I think it's low. Most districts when we look, we're going to see 91 92% there. >> So, can you explain the difference? Because I've not I know you tried to explain it to me. I still didn't understand it. >> Well, your enrollment may change every day. Okay. And so it it's 88 to enrollment over over the average of time and over the average of the year because I'm going to calculate average daily attendance today with a th00and kids and I had 95 show up. Okay? I mean at 950 show ups. That's
18595% attendance. And so my attendance drop I mean my enrollment drops the next day but the same number of kids stay. My enrollment raises the next day but the same number of kids stay. And so it is just taking your average daily attendance on a daily basis calculated by a running average of your enrollment. >> Okay. >> Just some it's not it it is not an indicator that you're measured on, >> but it is an indicator that I I used to use to look for, you know, where where are we headed and how we're doing. So that's why we why we use that spread between the two. And I think 19 202122 might have been that whole harmless year with that point. Remember >> right behind right behind >> with year where they kind of
186counted right >> historical numbers. >> There you go. West OSO ISD enrollment history. Y'all can see that. You can also see the types of children that are leaving or coming or staying with is in the report. Staffing profile. This is your staffing profile and this was 2425 publicly available data. Uh 292 employees, 82 in auxiliary, 32 educational aid, 31 student services personnel, six in central administration, eight campus administration, and 132 teachers. as reported in the final pay submission to the agency in uh let's just say June of 2025. They'll spend 54% of your total payroll on teaching staff. Region two is 54% the state is 56%. Students per total staff ratio. This is something that tells me something. Uh both the state and the region have more students per to staff than y'all do. And
187that's just everybody. That's everybody. That's irrespective of that's everybody in the W2 in your district. Teaching your pupil teacher ratio is low and and that will be in the summary document that your superintendent gave you, but it is meaningfully low. So you're going to say it's not meaningful low. We're at 13.4 and the state and the region are at 15. So that's just 1.6%. No, that's 11%. >> Okay, because the difference is 1.6 and 1. Do you see what I'm saying? So that that that's a that's 11% decrease in pupil teacher ratio compared to the state and compared to the region. I don't know what the causation of that is or anything else. I'm just telling you it is. Here's your principal, assistant principal, not adding anybody. You're just losing kids. interesting to me that
188you closed in line with the region. I'm just going to go I mean you you can see all of these all of these charts as you come through or any of the PE roll codes when I look to your peer districts. Famous is 54% Hillsboro 55% Pittsburgh 52% y'all are 54% on teaching staff that's in line with those peers. Point Isabelle 51 Raymondville 50 y'all are 50%. y'all are above your peers in the percentage of the salary that you spend on teachers and you say, "Well, that doesn't mean we compare our teachers." Well, I hope you do. I hope you do. You don't. But if we go back to is the causation for this because you the teacher ratio was so low. Okay? By comparison, I'm not saying it's right or it's wrong. I'm just
189saying that's where you're making your adjustments with for total staff ratio. Y'all can look at everybody when we get here. district funding peer district statewide aggregate local property average on the state 35% 3 to2 35% y'all are 25% and 48% from the state you can see your peer district as you go through it teaching experience 9% of your staff is first year 36% of your staff uh is 5 years or younger which going to give you about 44% of your staff at 5 years or less 6 to 10 18.7 1120. All this is available in your packet. I'm trying to get something to something specific. All right, here we go. These are job code comparisons and this is total personnel in your district. And what I want you to see when we look here, uh,
190we have West Oso 2425. The dark orange dashed line in the middle is the average. The dotted line above and the dotted line below are the mean of your peer distance. Okay? Now, just because I'm lining it up with my peers, it may mean we're all doing the same thing wrong. Okay? Or it may mean we're all in decline, you know, from that standpoint. So, I would want to know because when we look and we look over over to the right, all right, there is a a point or not a point. Anyway, if y'all can see at at the bottom when I come across, you see a green 2195, a red 4656. All right. And a red 20 3125. This says you're 22 total employees under what your peers uh hire the meaning of your
191peers. But you're on average 47 more employees in the state and 31 more employees for the number of children you have through the region. And an average salary in your district compared to the region that's about a million five. This breaks it out for the central administration. you don't have enough central administrators in measure to the million or measure to the region. Uh but you know so you're not over employed or overinvested in central a campus administrative staff that's straight in line total auxiliary staff. You can see how close you are to your peers but how you diverge from the state of the region. I'm just going to go through here and see if I see any really big red numbers because the red numbers are where you want to pay attention. But this is
192the way this lays out. Plus or plus or minus one standard deviation. And you can look at every employment category you have in your district and see where you are. Auxiliary FTEES. We're green. We're a little red down here in office clerical. campus office clerical uh non-exempt auxiliary including volunteers. When we talk about non-exempt, these are people that are eligible for overtime. And looks to me according to this without any overtime you're carrying about $270,000 in additional non-exempt uh volunteers compared to the region, the state and your peer group. >> Is that any particular department? >> Uh you have to any particular department. I can't tell department from where I am. Okay. I can see team roll code. All right. And you know, so your your CFO or whomever your HR person will know PE's
193job code 222. We can look and we kind of see where we are. Now, what I want to say to you about this, we're going to look and we're going to see two of your districts that are are one standard standard deviation out, but nobody is way away, but you are also meaningfully above the region in the state. So all three measured, that's a place to look. Smallest hole will eventually drain the largest container. Uh where are we here? Support services. I'm just looking for red numbers, ladies and gentlemen. And this I'm not teams coding from time to time is subjective and not everybody codes exactly the same. So there are some anomalies. This is not a recommendation that you change anything that you're doing. This is a recommendation that if you see a lot
194of green, if you see a lot of red, you you look there so that you understand it. And if you understand it, then you understand it. But if you don't understand it, then you need to. No red there. Nothing to speak of here. All good. Y'all forgive me. I'm just trying to get us there. >> Yeah. I'm not seeing anything but roundoff errors which tells me as a whole that your staff in align. I do think that we see a very good synopsis with uh a good very good synopsis with your superintendent's take on it. >> Freeze that for a second because what we realize and we're Oops. Go back one. Yeah, go back. No, all levels had 712 in all levels. forward. >> So, some of it we're realizing there's some limitations of the
195the Ascender platform in terms of being specific. So, um that's one of the things we're realizing as we're working on coding um because not everyone uses that same platform with the way to kind of classify job codes. But what we had there's some places where we're kind of doing our coding like if it's if a teacher was at what more than one campus we were putting them as all levels but I want us to kind of put them as 712. You know this there's some places it's a little bit difficult to track on the other slide though. >> I'm sorry when it says all levels in 712. >> All right. I'll get but >> Oh, that's fine. That's there. I off ladies and gentlemen, >> like we have those 19 people that are all levels
196>> and what that is a lot of them are like m music if they're split between two campuses or if there's a somebody that's mainly at one campus but they're doing an athletic period >> like the junior high has uh the drama goes to the high school >> that type of deal >> right but even like Quincy Sims is mostly PE at wee but he does girls basketball one period we've been all levels because we're not going to more than one campus. But we need we need to change that >> and and what we learned what Mo Casey has learned and what every district we are have done this is that it causes everybody to go back and look at how they coding and control that process. What I will tell you about the public
197education information management systems teams is to your agility what water is provided. Okay. came to your funding what water is to life. >> It can cost you a lot of money. >> Yes, sir. It may be a lot of money. >> And in this case, it's more like us being able to track the data from year to year. Apples with apples because you have everyone under all levels and it's hard just having to figure out. >> Well, because the problem was three years ago, I think it was we weren't coding stuff correctly and >> that worked out through the system already. >> Yeah. And some of this coding doesn't have to do with money so much as it does with us being able to track people and really know. >> Yeah. May may have been
198technically correct, but not as exact as you want. >> Exactly. Yeah. >> Like you drive a truck, I drive a truck. Okay. We both have Mine's an F350. Yours is an F150. Okay. Now, there two different kinds of trucks. >> Well, like if you have somebody doing something and then they go to bed, we get more money for that, right? >> And then we didn't >> Right. But there are >> that's where it would cost us money, >> right? In this case, it's just more like if I want to track exact ratios per campus than if somebody's spending six out of seven periods at the elementary, >> let's refine it a little bit, >> right? I want to assign them >> nearly 100% of these generated >> 100% generated. Okay, let's get a little more
199granular with our data input so we understand this a little bit better. >> It is. And y'all are working on systems in here too, working on systems. I mean, it matters. You're getting tighter and better in the line every time. It's uh what I want y'all to know. It's publicly available data. It's it's not recommendations. It's only recommendations. It's like where you might need uh you have questions, I mean, you'll get them to your superintendent. You'll get them to me and I'll get them answered for you. We were privileged to do your u foundation grant this year and implementation grant. And one of the things that we did for West OSO uh was provide a staffing study to you at no charge. Okay. This was not a separate contract. It was separate billable uh items.
200Dr. Gibson does a fair amount of work with y'all. Uh we we've done a couple of strong foundation grants for you. We're very appreciative the work you allow us to do for uh had we charged you for it, uh it would have been about $21,000 >> is where we are on on on this. And so you got what you paid for. >> It identifies you summarized in the packet after working >> and I mean I'm kind of think we're at a point in the evening at the back of this report. You got to think you know what the bottom line is >> at the last page and in the separate packet and it's at the top that I like the way that Lloyd and Kim phrase this their areas here three of them identified that
201you are above the benchmarks that's those are the red lines Lloyd trying to bind and so it was support services auxiliary staff and some instructional staffing levels said several times that just go look there because here in a minute you're going to hear that we probably need to try to find a million something. >> Yeah. >> And Okay. So, it's not like we're just going to where do we even start? We got some guidance to where we might start. Well, I like the fact that uh y'all came up with the key considerations for the board of trustees because number four is the one that I think we have been talking because we're not getting the enrollment and that's that's not on y'all, right? >> That's on the community that we live in. But heavy reliance
202on state funding we that's I mean once state fun once state funding is cut or it's not there it affects us drastically. >> You I know the scale is different but for the last 24 hours I have been working with exist three and a half hours from here to find $35 million of personnel reduction >> for next year. And I I know the scale is different but still and what they did that got them they 2020 their enrollment was going down and they weren't acknowledging it. >> Well, we're acknowledging it but it's it's respond respond% in five years. >> What are we looking at in the next five years? So >> a lot of times >> those schools can afford not afford but they might have two junior highs where they close one. We don't
203have that >> two weeks ago. >> We have one campus that was step one correction >> and they're not just relying on the state funding. They have uh refinery funding. They have all that and zero. >> Right. So the variables are but some of the key concepts are the same. It's just the variable. Here's a key concept. I would like to leave you talk about deficit budget. I don't think they'll have a deficit budget. All right. I don't even if you're drawing against fund balance. And this is Lloyd. This is not case. All right. I think you have a revenue. I mean, think about that because you got certain number of general administrative s cost that you have to spend no matter what. You got to run a bus whether there's 10 children or 70
204children going to be on that bus. Okay, we have to have this building whether we've got 500 kids or whether we got 5,000 kids. So, you know, so how do we focus on revenue? All right, number one. Advocate for themselves, for the state rep, your state senator. Okay, advocate because the state is particularly in a district that gets the lion share of their state. I believe not without location it's an old 25 years in the superintendent that the state's not funding you enough at the base level you know to to meet your needs and so if you talk about just a deficit we have a deficit budget so we need to raise your taxes we have a deficit budget so we have to then what your what your constituent constituency hears is that you're spending
205too much money that's what that says but if we have a revenue deficit because of the constraints that are put caused by the state's funding system. And the only way we can break through that revenue deficit is with a voter approved tax rate election or with a bond election. That's a really different conversation. And so I would urge you to think not about efficiency when you're looking at staffing. And I would think of my defending issue, but revenue is >> I think that's really helpful, too. >> Well, you know, we're we're stuck just like everybody else. is that you go to the pink building and start talking about this. I preserve it too many times. First question they're going to ask is I'm circle back to the photo approved taxification. They're going to ask you
206have you done? And when you say no, then they're going to say >> you're maxed out. >> Then you're not maxed out. >> You're not maxed out. And and if you've done it and you failed, then they're going to say to you that your co your community doesn't support you. >> Exactly. I I we I just told her >> we need to percent this voters >> and then if they say no, >> hey, we told you that junior high was if we didn't get the money for that junior high, we told you it was going to go down. >> We all said no. So it's not on us, >> right? >> But we give them the option. >> The sweet spot that we're seeing around the state is how much do you need to do
207before you go as >> correct? >> Right. You got to show some pictures. got to show that we did >> pictures of these are the things we've done. If we do more, you're going to feel it. >> Well, that's just it. And so one of the things to do and and done a good job of that on the summer that you have to say case came in say not qualified, but qualified to study here faculty and your staff. We've had an objective wellestablished wellrespected third party consultant come in and take a look. Boom. Boom. Boom, boom, boom. >> We found three areas. We adjusted accordingly. >> That's it. There's no more there's no other place. >> Well, you found I mean, we don't have the red lines going on in any of these uh section.
208>> But I also we have been proactive in the past because when we went to go see a Texas senator because it was uh it was uh recommended and when we went what was the deficit? We weren't >> well come up with two or three million. >> Yeah. And >> they told the same. >> Yeah. >> And he laughed at us. >> Well, that's what Okay. Thank you. I didn't know. But that's what you're gonna get. >> Yeah. Because it was like try La Hoya. >> 17 million. >> Right. But but >> because we we're I mean we thought two million three we're hurting. >> Yeah. and they said, "No, no, you can help out." I think one of the things we need to point out when we do that >> that if we don't
209pass it now, >> five years from now, it's going to be this much money. >> We really need to point those things out because people don't think five years from now. >> They they don't. You're right. They don't. And you know, I've seen trustees say, "Well, I've heard a trustee say, well, you know, in the district I working at, that's after my term." >> Or an employee say, "Well, I'll be retired by then." >> Okay. Nobody's looking down the road, but according to Facebook, that's not a good thing to say. I'm just saying that. >> We looked on Facebook the next day. It didn't land well. Did not land well. Madam President, I think the time is always to come here. Uh I I do sincerely uh enjoy when the manner in which all conduct
210yourself. Um I I mean the questions and this setting because this is a setting to ask questions in this workshop and that's a you know and y'all know this that's that's a different than a meeting when we're actually doing business when we are loosely coupled in and training in a workshop. Uh and when y'all get all your questions out get them answered like this board meeting should go smooth. I have doubt about that. Dr. Gibson, do you need me for anything? I sim excused. >> Maybe excused. All right, we'll be back talking to you about all of our golden pins. >> You just call me get it modeled out. I promise you we will. Thank y'all so much. >> Travel, Madam President, if I may just in my opinion, F through J kind of gives
211us like these are all things that go together. Okay. Like we're now we're down to the things that go together. So item F and it's okay. It's on page 283 and and I'm just going to point out what it is and we're not going to go into it, but the board adopts the budget every year at the fund function level. And so what OA did is just took the board adopted for five years in a row. So because it's helpful find you it's helpful to Cindy, where were we last year? Where were we the year before? Where were we the year before? >> This one >> 28383 284. Yes, sir. You're right. Thank you. 284. >> You might even want to pull it out. Yeah, it's got some blue >> that's on the screen. And
212it this is it's not something for tonight to like dig into it. It's just pointing out this is a reference document for you because what and like if you where this where these trend lines started you were on the top the co but then when I glanced at this I see a pretty good I don't see big spikes and jumps and like you kind of held pretty consistent >> but then from 23 24 to 2425 is where >> and so what was that attributed We extended that we I I'm still trying to go right here. >> Equity raising. We extended remember we extended the salary schedule from 20 to 30 years. >> Is this the topic that we were discussing in >> Yeah. As far as the million dollar deficit that we saw in the
213audit, >> I haven't pushed it. How many of y'all saw the audit? >> He's the one that's just >> I wasn't at the meeting. >> I haven't. >> We We really need to look at this. >> You give it to me. I look >> It was It was It was >> It was We got hard copies. >> We had hard copies of this. >> Yeah. But when you Okay. When you send this out and when did you come up with this? the chart. No, I asked them to create it for tonight. >> Yeah, you can't we talked about Yeah. >> Yeah. All it is is a document to look at. I want to go for I do have a question and I don't sometimes I don't blame them because finance >> it's very hard. So
214I I really think >> somebody needs to come and give us a lesson. Some of us know a little bit but even if we know a little bit it's not totally a different element. >> Correct. Somebody needs to come in here and explain to us how to really read a financial >> I think that's a fair I mean I'm happy to know >> because they don't know what questions to ask because they don't know what I don't blame y'all for not knowing because this is so complicated it's very hard >> well that's also uh I mean >> but there are supposed to bring it in present to us so we can understand it >> well so the audit is important because and lower credit these are audited numbers that are on there. So, nothing on
215this that's made up. They came from your facility. >> Yeah. And I I don't disagree with that. Uh Dr. Benson, >> what I would like to see, and I've already talked to Miss Wade, so that we don't have this like, well, we're, you know, we never talked about a million dollar deficit back in May or June or July saying we were headed there. So, what I would like to see is exactly this, but not on a yearly basis. Nobody's going to look back, oh, in 2021, man, we we went up or whatever. We need to do it on a monthly basis and not everything. But to tell us, you know what? Our revenues were stable. They stayed the same. Our expenditures, this is what happened. She had a boiler that cost us $200,000. >> It
216happened after May. May we were man we were right on track but it happened right after May. So in June we're gonna see you're headed for a deficit because you incurred a $200,000 boiler expense in June. Here we go again in July. You did something to the turf. >> We have they we all have to be able to look at that and to see and not find out at the final audit. We were in a we were in a deficit, but we weren't not of their fault. We were because it's not that she's over they're overspending. It's the fact that you're incurring expenses that were out of our control. But the board needs to be able to see in May, June, July, and maybe you've never seen that in other districts, but I think we
217have to be that transparent. super simp 23 years. >> I just think that the board >> the board is able to I mean they're able to understand that it's just like a check. >> It's just these reports we get. >> Wait a minute. I'm not done. >> All right. >> But this this will help as far as historical data. >> That's all it is. Oh. Oh, I could see that. >> Okay. Well, but it wasn't presented as anything but this tonight. I'm just being clear. >> Right. But I'm just saying this is not this is not going to help us. >> So the qu the reason this was even shown was to trigger what do you need to see on the just had that conversation three hours before this meeting. I think that >> I
218mean do y'all see the sense in that to not bring it in as a year but bring it in as a monthly. Okay. Back in May, we were on target >> because they're never going to get ahead again and we're going to >> but then all these big and we do that's why we are heavily reliant on state funding but we don't have extra money to do those expenses but sometimes >> she comes to us and we have to or you're not going to boiler. >> It's not her boiler. I'm going to go back to that. >> It's not what boiler >> the district is. Well, I I know, but it's >> Well, I'm just saying you come to us when you're like, "Hey, want the school to run?" >> Okay, that's good. And thank
219you for that. And I >> that is what we >> some of this effort was to make it more visible where there's some points like a boiler that could be coming your way and that's was the whole purpose like >> sorry and that they want to update it every month. Here we go. Here we go. >> I think this probably does be updated every month. Okay, this this has lost its priority. Let's move this one up. And that's fine. But the bottom line is the the final dollar at at the end of the fiscal year. >> Okay. So the concept again I'm just going to run an F through J all together. >> Correct. Oh yeah. >> Okay. So item um >> so what I understand M saying we have to we'll have to kind
220of work on how somehow say okay here's the month of May. I think you don't want to see all the little details. You want to see in May I don't know >> because unanticipated expenses that were more than >> but more if you keep it >> on a historical data basis still you would >> okay somebody take that away just like make that go away we're not even looking at that >> this is what we're giving yeah but we want we do want to know we do want to know from the beginning of September >> I'm just saying that was the all this is is history >> right it's not going to go >> like chubby chasing that vacation. >> I'm just saying instead of having the 2021 20 Yeah. Nobody's looking back way back.
221I mean, we are it's but we're looking back as far as a monthly basis. So when they start this, they're going to start in September when >> the board adopts when the board adopts the fund function. This is kind of naive, but if we're 25% into the year, we should be at 25% of the money spent. >> That and that may be what you're asking. And if not, >> if we're not quite there, why are we not there? >> Well, well, no, if you've spent over No, I'm saying if you haven't touched it, why is that? And then she says, "Well, we had a mild summer and we didn't run that because it's like a checkbook." >> So I I think >> it makes it a little bit more transparent. >> How would you like
222to modify that? So that's my question. We're giving you that each month. How would how would how do we need to modify what we're giving each other? >> Right. But I think somehow what's going to what's going to get you to the >> No, because you're still including the whole year. I Okay, I don't we we do want to see you put it over here, but we don't want to see uh 24 25. We're look or 25 26. >> I'd like to see that to see how we were for the year before. >> Okay. So, we're looking back one year. >> One year >> and then we're saying and I think >> well it could be monthly and I'm fine with monthly. It could be some districts do quarter. >> So, aren't we are we
223on track with quarter, you know, first three? >> I don't I'm just saying it could be one. >> Oh, I know. But I don't because you're not going to say, "Okay, you're going to say if you say quarterly, uh, but it was not only the boiler, it was this and it was that monthly." You're telling them, "Yeah, in May we had a big expense, >> and that's fine." And so like let's just pretend like that chart is on this. We're going like this. >> Okay. So now we're going to have each month of the year. We're just showing where we are on. >> That's all we're doing. And you are including you know line item but you're not including all the I don't need to know what all the revenue was. >> Just if something
224is off if we've either under spent or overspent. What's the reason? >> Yeah. If you have a monthly revenue of 24 million and then all of a sudden in June you have a monthly revenue of 16 million, >> they're going to ask, >> right? That's reasonable that like y'all set a threshold like if we're more than five I'm making up numbers, but if we're more than 5% off of where we should be this month and percentage, why are we already at >> why are we under that's >> right? And so then I think because there was this whole thing we want to ask. So the questions need to be about at the big picture level when you're asking questions and what why >> you might they might not even ask a question if you have
225it. You might answer the question before they have to ask >> but they answered it. >> It's in the chart. >> Yeah. We see we can say and they're gonna say oh I see where you were $200,000. Right. >> It's stuff that >> you can try to give get to me if it's like almost exactly what you want. >> I think let me take a first shot at the chart and then I'll send it to you though so y'all can look at >> I was a financial >> Yeah. So and I Yes. >> Okay. You had a question Mr. >> Well, if I may can I say one more thing before we go to Okay. on the budget parameter memo which is item um uh uh eight and I I'm just going to put H
226and I together similarly to how we're talking right now about the tracking of the budget once it's adopted. What I'm recommending we call it is the budget parameter memo and I was making notes as we talked earlier. So, it's a budget is as simple as we've said it 20 times tonight, the money coming in versus the money going in. I mean, there's all kinds of numbers to move around, but it's revenue and it's expenditure. What I would recommend for the board to get ready for this coming budget is that budget parameter memo and the staff has prepared what we're calling overarching targets in your packet. We'll look at those here in just a little bit, but we have to agree on some common I'm just going to read these right now and let's don't go
227here, but just so do we agree as a whole team here that we need to strengthen fund balance. Do we agree that we need to increase our investment in facility maintenance? Do we agree that we need to maintain staffing levels? And again, we're going to go through those here in a second. So, like we got to agree that these happen. Then the staff, we can do this very quickly. Revenue assumptions generally generally are the following. Revenue meaning money coming in. What's our student count going to be that was just mentioned? What what number are we going to use and how did we get to that number? >> What what student number are we going to use for the coming year? >> Right. >> The percent of your taxable value and appeals like you you can
228pull a number. I pulled that on a while ago but you can I saw it in the in the packet then the percent tax collection which assuming >> it's like 90. >> Okay. So we're going to assume next year that it's 97. We have no reason but to believe it's going to be 97. Okay. So then the percent of student attendance because Lori touched on a while ago we have our enrollment but what's our what is your average? >> Well we went we're 91.90. >> Okay. So are on next year's budget or you going are we sticking with that? >> We are and I'm going to be honest I did pick it up because a lot of times they gave us 7% raise. They do it equity. I have to work backwards because we don't
229have a choice. They decide they're gonna give it. >> No, I'm I'm just all I'm talking about right now is your >> I I do that but I >> So you keep it like very conservative. Okay. So that my point is in this memo we're going to say we're using 91 whatever% because that's what we've achieved the last. >> Isn't that what we used the last budget? >> Yeah, >> we did that. >> Okay. So I Okay, good. And so then what I'm saying >> but but it gives a percent. Well, because we don't attend it, we say >> hold on. I'm not even too sure. We're just talking about revenue. Not even Okay. So then are there any changes to state funding? Right now we're in the middle year of the bianium. So generally
230the formula is the formula, right? It might change >> a year from now for the next year. So there probably but we're still going to put it on. Are there any changes? No. Or maybe there's like some whole harmless something. >> When they did the two year, it was a little difference between a little bit. Okay. Then you guys have a percent of your students that are from Is that correct? >> What is what transfer uh assumption are we going to make? >> 24.5, right? Again, >> wait, what is that percent? Okay, so 24.5 of your student enrollments from transfer. So, we're going to put that because that's a revenue. And then y'all are gonna say that quick multiply 20. How many kids is that? >> 441. >> Okay. 441 times what? 6,500 bucks. >>
2316200. >> Well, a little bit whatever just basic. >> What I'm saying on the on the assumption memo so the board sees it. We're gonna say the value >> um three million 200. So see that that that two how many? 400 transfer kids >> 441 >> the 400 transfer kids yields $33 million and >> that's going in the budget assumption. I know there's a lot of >> Okay. So now I'm those are the I was listening tonight and that's what I heard was and I just wrote them down. I'm not saying that's all but like we'll start with that. Okay. Then we move to expenditure assumptions. Okay. So those seven I just said that's the money coming in. That's how we calculate how the money is coming in. Now we're going to calculate how the
232money is going out. >> Staffing um then your number of FTES which that's where we're saying could be a case we heard tonight where there could be a little over. >> Right. >> Correct. Correct. >> Just we heard there's three cuts. Okay, we're gonna put that in the budget parameter memo. >> Are there any I know down on the G Coast your insurance costs are killing y'all. Is that >> it's going a little bit that is still the high expenditure but we maybe it's peaked and it's okay. Then um then then the next ones are these things like what what are the maintenance changes is do we think the boiler might go out next year? We better be ready. >> Yeah, but they're not going to be included because it's not something that was >>
233Yeah, I think it may not be exactly this, but it's some of the stuff that's inside. >> But if we do it and if we uh put it in the budget, it's because we're going to spend money on that, >> right? And so that's >> like a wish list actually. >> Well, okay, let me let me say it differently than wish list. These are Let me ask how much of this is included in the regular budget generally speaking. >> Okay, you're not even touching any of this. Okay, >> he's telling you we don't have the money for that, but >> you do. You're just not choosing to access it >> because of voter approval. Okay. I'm just going to say you have a tool to get there. >> Okay. So, but I do um if
234like like if there's any well, let me just say so on maintenance, we might put an assumption in here of average temperatures or something like we're going to have average temperatures. So, we're going to keep what we're spending on air conditioning and all that. I'm just saying we put a line on. Now, here's the next expenditure assumption. your staff compensation. the physics are you going to okay what >> we cannot afford rates period >> and she's let us know that and when we can't I mean we agreed we we just can't >> so what we what we >> like miscellaneous expense in there somewhere that you said what he's defining >> right I that's why I think you still put maintenance in there to just is there something that could come up that >> miscellaneous
235maintenance and put a dollar amount That's exactly right. It could. And on the assumption memo, you're not saying >> it's 100% this number. >> It's already ended. >> That's right. But it's here's a window. I'm going to give an example in staff compensation that next year you're saying we cannot afford an increase. I would still recommend in the assumption then you go ahead and put what a 1% raise cost, what a 2% raise cost, what a 3% raise cost because we're going to make it trans. I'm gonna go second. >> Okay, I'm going as fast as I can. >> No, I know. >> Thank you for everything. We're getting close. >> Michelle. >> Okay, say hi. >> Um, but on staff compensation, whether Whether you're going to make an increase or not, I think every
236year you need to show what it costs. >> I know, but how is that going to look when we actually want to see the ending fund balance if it get in and we really >> All we're saying in the assumption memo, >> so it's going into the assumption. It's not going into the actual >> That's what I'm saying. Yeah. All we have to do in the See, the whole point Thank you. The whole point of the assumption memo is that no pressure on this. We're just costing things out >> so we're all on the same page. >> If it's kind of an if then if we were to give a 1% raise then this is what it would look like >> and it would show up on the following. could say it's 9 97% tax
237value collection, you know, yields this what what's it what's 1% up or 1% down. We could put it on there just to show that >> deva could deviate >> and how much that would impact >> let's take go back to student attendance. So we're going to do student attendance at 91.6. If we got to 92.6 that would be 1% would be x amount of dollars. That way you guys see thing that can vary from >> and then it starts helping the board and I by the way I was a board member for a for TRS when I said I you all have to tell me the windows. Thank you. What did you just call it? You said something different when I said the >> it could be Thank you. >> It could be as low
238as this or as high as this. That's all I asked for with him and it's like okay now I can wrap my head around. So we're trying >> possibly change. >> Yeah, it could possibly change and we're trying to settle what's the best. All right, I'll have a lot of capital, >> but you would also include the percentages as far as you know, we're at as far as expenditures. We're at 76% and you're already in January so that the board can also >> So this is just a document >> setting a separate budget. >> Set us up to develop the budget. Then once the budget's adopted, >> yeah, that's what I'm talking about. >> Now, then we're tracking it. That's easy. What you were saying about >> Okay. So, he say he's gonna give you
239>> a template. That's easy peasy. So, this there's two tools here. One is how do we get to the adopt and what information does the board need and we're going to show all the >> board's gonna look at that spreadsheet, too. >> Well, I to me it's the board's document. >> Okay. >> Between now and September, it's your document. And so we're I'm gonna just give you a base version based on what I heard tonight and what I see is helpful around the state if that makes sense. >> And that's your document at that point. You all >> So we have that document and then we have the track and that's >> right. So you have the document to help you get to >> to the budget being adopted. Then we have the document to
240track it after that. >> Okay. Okay. I think that that's going to help out tremendously and we don't find out later on that we had a million dollar deficit. Again, I wasn't at this meeting, but I had several phone calls from board members like, "And this doesn't make sense." >> It it I'm not going to say it will eliminate surprises, but it shouldn't minimize surprises, >> right? I mean, I I don't I don't I'm not gonna Oh, you you you know, you win $1,000 over or under. Uh but when you look at a million dollars over, >> that that hurts our district. That does. >> Yeah. And so, >> and through no fault of their own, it was just the tracking of the expenses that came in later on, >> right? >> But put them
241on there so we could see it. >> Will, can I speak? Yes, sir. Thank you for I'm exc I'll answer questions. >> August 31st is the end of the year. >> Yes. >> So, right there it tells us that we're short almost $3 million in revenues. >> Is that what is that? I'm reading that correctly. And what is it? >> We're looking at this two right here. Was 19 that we brought in and we had 22. >> So we're already short $3 million in revenue. >> And was Yeah, we didn't realize $3 million. >> We're short $3 million. >> We didn't get $3 million, but we spent >> thinking that we had $3 million. >> And it's it's really not maintenance. It's imperial. Well, what I can't I can't understand is that those numbers are
242pretty should be pretty close to what's kind of in the budget. >> No, there's there's the audit. >> So, it's kind of hard when Okay, so they say they told us that the major expense was instructional. Okay, we went over by 1.456 million in instructional. How come right here it only says $625,000? >> Because this >> What's the big difference there? >> Right here we're still doing recoding and that doesn't have a lot of stuff. A lot of times we recode things to uh grants and stuff. So when we were only over by 600,000, >> but when we recoded we went to 1.4 million. >> Yeah. Because there's a lot of different things that that take place. We >> rec member when I look at these statements. They're supposed to be pretty darn close, right?
243>> Yeah. I know. >> How can I catch a mistake? How can I tell that we're on the wrong path here when I'm looking at this number? >> Right. >> How do we justify that? >> I think the tool of the monthly >> the watch out next month because she recoded. >> Well, I think if you're going to do the monthly, this is just my opinion. It's a good line of question. If you do the monthly checks, then the recoding doesn't happen at the end of the year. You you're doing it along the way because you're doing the monthly checks. >> Is that which helps you keep an I don't Well, I was thinking this was very accurate, >> but when we go from this number and it jumps to 1.4 million, >> what happened?
244How do I justify when I I'm thinking we're not too far off, >> right? >> But when then this number >> the only tool that I know of to use is the monthly. I >> Well, that's why I said do the monthly. >> We did ordering. I understand why you're saying monthly. >> Well, because this is all your revenue, your all your grants. This is just your >> So, so maybe we need everything. >> That's just general operating. >> So, so why don't we So, this isn't really giving us a true picture as a board member. >> Our grants were spending them the way that the >> Yeah. >> Okay. So, if we're getting a grant, that's free money, >> correct? >> So, that that number should be lower if somebody's helping us out with
245that. No, because there was some grants that go over. So, I have to throw it into general fund. >> What do you mean they go over? >> Overspend. >> Ah, >> there's a lot of stuff variables that >> How are we supposed to know that? All I can It's the tool that we were talking about with the monthly checkin just so you can detect the patterns earlier. That's all I can >> Well, yeah. And we can say, hey, what's going on here three months into the new fiscal year? That's that's the only >> because as we do that I'm looking at month oh we're doing good and for the whole year where it wasn't too bad but then when we get this report where the heck does this extra money come from >> that we
246spent >> again the only tool I know is that just a we we do quarterly actually it's every other month but I understand you let me offer this you might at some point be comfortable people >> when we're comfortable >> to go to every other month better than million dollar. >> So So this we already knew we were going to be >> Yeah. >> We were We were We were spending like we were going to get all the revenue knowing that we weren't >> correct. >> Why was that? >> Because you all gave an equity. You gave a And you continue this current year. We're going to be in the same route. We gave a 7% piece. That is not >> and that's continuous. I understand that it's from here on till >> the equity
247rates was like >> half a million. >> I know. But when do you put that in to where it affects the fund balance? You put it in at I know Miss Moore was saying something and we don't even get the money till months later. >> Oh. So a lot of times when I see this negative number, I'm thinking, oh, the state owes us >> some I don't know when does the state pay us. >> Is there a set schedule? >> Yeah, there's a set schedule. >> You don't know in advance. >> You never know. So >> if it's well, it's going to be in the fall. >> So when I see this deficit, I might say, "Oh, we might have some some money coming in in two weeks." I boom because >> right I I
248think the tracking device helps solve >> that like this is what we said we were going to spend and this is where we are on the spending. Is that fair? >> That's fair. But we're still going I mean payroll. I mean we >> payroll, >> right? >> Yeah. But we're still going on the risk. Correct. >> Well, and so all I I just said these words earlier this morning. There's going to be 531 fewer people >> in this district next year, but everybody's pay is staying the same, >> right? >> You see, but there's going to be 531 fewer people not here, but the district I was in. >> How's that? How's the pay still going to be? >> Oh, what they're getting paid. >> That's exactly right. So, we're gonna we're gonna be leaner,
249but everybody was whole. that you're getting paid >> that if you're not one of the 531 then you know you're well and truthfully when we sort of dig into them I'm just given this as an example and we did this same thing analysis so we found some things but you know they had now I'm not saying it's easy but they had 275 uncertified victim So, Miss Mendes, you said we're going to go over a payroll. Are you seeing that we're going to go into our fund balance next year? >> Oh, yeah. >> Without an adjustment. Well, you're just going to have to take now and then the corporate cut is not. That's where we That's where that >> based on what we call the We're not really anywhere. Well, we I mean >> you had
250three support services, auxiliary staff, and then some instructional staff. >> But that may not get us to a million. >> Well, um >> Oh, you're talking about that we're cut. Let me put it in real time. >> Put it in real time lane. If we cut back like a million dollars, do we still go into our fund balance >> right now? Yeah. I mean, I anticipate we're gonna >> even after we cut a million dollar we went over we went over a million and a half. Then we turned around and gave us 7%. >> How are you going to do the equity and the 7%? Now you're going to be a couple of million. Yeah. And again in the back of my mind there there is that >> equity. >> It is. I mean you're
251not you're not underwater yet >> but the water is rising. >> Where I left they're underwater. So you can like you can reduce some staff and you can go after those >> and then take a more cautious approach moving forward for those golden pennies in November. >> Absolutely. >> So when are we looking for the bond? I wouldn't do it in November >> because that's gonna be a different beach to sell and you better have everything lined up. >> Right. >> That's why I think people choose not to do them at the same time because I get that. I just want to see what's going to be priority. So p if y'all want to look at page 358 >> now we're too big >> this is like the nitty-gritty what we're suggesting we have a
252couple of other things um so >> so almost there like gone all day without seeing sewer lines under the building but that's I understand That's from 2008. >> So yeah, some of the things >> What page? >> The very end. This is just >> pages 358. >> So change tabs on each agenda item. All right, here we go. Um, so I have a question again. How can we get help? How can you help us core members with the financials? the the two tools which you just mentioned are proving to be the budget parameter to help you get the parameters laid out in the budget development process and in the budget tracking if it's monthto month. I I mean those are the only tools I know. I mean you just have to get real consistent. I
253mean, I'm real consistent. And I mean, you some in the spring semester in my last district, we had separate one hour, 90 minute maybe budget parameters, just check this constant. So, so will that help us with that grant money that wasn't captured here that to let us know that we >> I think the more you hear it then you start understanding how there can be a little bit of variability between what's audited. I I mean truthfully audits to me were kind of a function that we didn't do anything wrong and then I just kind of shove that over to the side and because we had the tool of checking what we're actually spending >> but we don't have those >> right so I think the audit will be less important to you eventually when you
254have >> and that's my point >> because when you get to the end there's a surprise right >> and if you see it >> as you go along the year >> you don't need Yeah, we know what's going on. We know that we're going to be We didn't get the revenue. We know, >> but it seems like I mean, even if that's done, I don't I mean, it seems like you're saying you're still going to have >> I I would I would tighten up my belt and I would go for a TR and not push the bond down the official. >> Okay. But okay, >> if you want me to go there, I'll >> tighten the belt. I mean, so y'all can see some of these. Go to the second page. I mean, these are
255I I would get >> some of these are difficult. >> I would get some belt tightening things under. >> Well, I would think that you're going to do that anyway as financial people that are being fiscal. >> Yeah. Sometimes we don't. Sometimes we offer it and the board says that's too tight. >> Even me, I'm a financial analyst, but I count on I'm not I'm not analyzing this stuff. I count on it. >> It's easy to say we're going to tighten the belt and then you start showing what we're going to do and everybody starts going >> not that. I just >> but I think we've been a board member that has been open to your ideas as far as tightening that belt. >> So you've got like this is a summary of the belt
256tightening. Is that >> this is there's a second page? Yeah. >> So I'm not done but so my question is it is I was talking my question is that I don't still want to be surprised. Oh well Mr. Rodriguez we did the tracking but we're still off because of the audit because Okay. I still don't know how the payroll works that you're saying. Is it coming after the audit that you say that that's when you're recouping? We can easily see when she has a $200,000 expense in May. But as far as payroll goes, how is that captured on a monthly basis to where we wouldn't see anything? Okay. What was the whole the million shortage on? You said you were going to explain that for us more. >> Well, kind of what we were saying
257is that um some of those extensions moving the scale from 20 to 30 years, right? Um and then doing some >> But how did that affect as far as financially every month? It how would we have been able to would we have been able to catch it if we did it on a monthly basis? we would have realized that we're not having the revenue that matches that expenditure, right? >> And you're headed towards a deficit. >> So, it's mainly on that that 20 to 30 years. >> And then there's other equity adjustments. Okay. people there were >> those other and that one that's what we need to see on that monthly basis to where we're not surprised uh because I know the audit is going to show something different >> without >> I mean the
258bottom line was there whether it was like final function the bottom line was there >> yeah well we're not yeah that's not making I know that we're looking at this >> well I can see that total revenue minus expenditures. Oh, you're at a one $1 million deficit. This is fine as far as giving it to the board members because it's historical data and we can go back. >> You want to know one by one what's going on, >> but I don't want to be surprised because I'm not getting the payroll stuff to where the way you're explaining it. So explain it to me at the beginning of the next fiscal year because I want to be able to say we budgeted 100% for personnel. You know by January you're you're at 65%. >> So this
259may I'm just going to stop >> another tool that just came to mind. >> Okay. In your general ledger, which is basically your checkbook, every month you can calculate the percent of staff, right? Like you you could just like staff and stuff, >> right? So like so staff should run around 85%. >> That's what it is. That's >> okay. Well, >> yeah, >> show that every run. That's what I'm saying. Like we're still we're still at 85%. Now I'm saying that after you make whatever course correction we think needs to be right first, but that you're gonna tell us about that correction. >> The course correction and then we're tracking that we're holding it under the thing which that you're saying we're not going to get back above the threshold. >> Right. So I mean
260these are you know based on the study um I mean I think what we'll need to do probably obviously we don't we're too tired to actually do those things tonight but um >> you know I think we we're going to talk about the date for the budget meeting we need to do that I mean the other options are furlowing days other options which would be like um everyone >> I still have a question >> because I kept hearing last year we replace so and so to save money. We didn't get a full-time accountant to save money. But then I see this I this is still bothering me. This 1.4 million. >> You didn't have an accountant all year, right? >> No, but that wasn't because to save money. That was because it was a baby.
261>> How long did you go without >> But that's same because >> you couldn't feel it. But even though we we did that, we did save money >> equity. It's a million dollars a year and then we're going to the shortfall's going to be even worse. I mean, okay, it wasn't something that I recommended. Those are not doable. I've been telling you from the beginning, we have to cut back. And that's why Mr. Garcia was here. We had put that book together that we were supposed to do that plan and we deviated from there >> and then we gave a raise right that was what $300,000 >> at least >> the 1% that we gave in between >> so we we were at 1.3 million or 1 million overall >> basically I mean you're talking
262with the 7% that we gave that one >> so what was it between with both of with both of them right now. >> Was it 1? >> That's probably going to be more probably 1.5. >> That's close to where this number is. >> So my question is because we give those at the beginning of the year, right? Or no, I mean we give them at the end of the year to get ready for the the fiscal year, the following fiscal year. >> You're thinking of TIA TIA. >> No, I'm not. It's it's the 7%. When do we give that? When do we give that? to give that we retro back to uh June July. >> Okay. Because we're getting ready, we're incorporating that in the budget for 27. >> Correct. >> Okay. So, when if
263if you're saying you knew that from the beginning of the year because you're not going to have enough in your in your general fund to pay off our operating expenses. You knew that when we gave that 7%. So it would show on a monthly basis. We're gonna run short. >> When would it show? >> As it accumulates. >> What do you mean as it accumulates? >> You're seeing that >> it's growing. >> Oh, because so much. >> We budgeted. I'm not done. we budgeted so much and then you're and then uh you're saying okay well at the beginning of the year you had 95%. But every month you're accumulating that 7.1% and you're you're saying we're going to be short in May. That's what I need to understand. Okay. So that's what you did with
264this the 7.1. What about with the equity? Was that handled the same way? >> It's um >> So I know. So the equity would also be accumulated every month. Okay. For the accountant, she got a 3.1%. You're you're doing it every month for her. So she got a 3.1% equity. >> Can I ask? So where would we see? >> Wait, wait, wait. So, you're saying uh you knew it. You knew at the and you kept telling us. We didn't understand that part. Uh >> well, part of the problem really is by the time I'm I'm doing the budget, I say I we cannot afford a raise or we can only afford one and I did here we're giving the 7%. We're doing this. >> I'm telling. >> No, you do have a choice. you introduced
265it to where look it's like you have uh you have a budget of $100,000 you want to give a 7.1 equity we our operating p uh operating expenses are at 80% the other 20% we can't even afford a 7.1 but you got to tell the board that uh Mendes because we're not all fiscal people. We're not all financial analysts because had you known that? Had you known that? But you're going to be short in May. Had you known that, Miss Bella? You're going to be short. >> I asked you and you g you told me you had told us. >> I said it's not sustainable. >> I believe I did ask you >> because I said this is not only this. >> It's not just the word. the actual example that you're saying you're not.
266It's like your checkbook. You only have a 100,000 in your checkbook. You want to spend 7.1%. That's going to take 20% of your budget. You're going to be left with 80% to pay all your operating expenses, all this stuff. And I know you can't predict what we're where we're going to if you start in uh September, you can't predict what we're going to have in May. >> You can model it out. Okay. >> Well, she and she kind of did if she knew. She didn't think it was going to >> I know, but that's a visual that needs to be shown. >> So, here she's asking for like information earlier and I'm kind of joking. Your response is okay. >> Like, okay. >> I mean, like that that should be good enough. Now, the then
267we're going to change part of the way that we go forward. And that. So here's what you did. Basically, you gave two or three years worth of raises at one time. >> 7.1. >> Well, you see what I'm saying though? Because you're not you're probably not going to be able to do it now for for a couple of years, >> but it I've seen worse. >> well, but it is what it is now. And so you >> I know and that's why I'm saying we >> we can't go past forward if we don't know what happened in the past. >> And so the so they came to me as part of just our normal talking and said just so the trustees that are remaining here know how how do we build a budget that the
268board's more involved in? And I right I said it's a called a budget parameter memo and that's when we started. So they came to me just saying we we need to make sure the board understands all the moving parts of the budget. I thought okay we jumped on the zoom and we got started with this whole >> I think when you have that uh conversation with us it changes the whole scenario but if you don't come to us and I'm not a >> you can't say it's just sustainable and not I'm not >> this is why it's not sustainable. >> Say whatever. You can't say it's just sustainable but not explained. This is why it's not sustainable. >> I I need an explanation to go forward with making a good decision. But if you if
269you don't explain to me, I'm thinking okay, you know, we we're good to go. >> You I'll just This is just 25 years of super 23 years superintendent. you touch the number of people >> and or you touch what you're paying those people, there's a potential train income. >> Yeah. >> Everything. >> Yeah. >> So, just >> we're gonna have to be very united. That's what I'm saying. We have to be >> But if you tell me I understand because I'm not in a position to know, right? >> But if you come at me and tell me quite frankly, hey, we don't have the money to do this y'all that. And I'm like, cuz when I found out that we had a a shortage, nobody told me, you know, and and we just getting bits
270and pieces here and there, but if you lay it after me, cuz I'm if you send it to me, I'm gonna read it. But if I don't have the information and and and it's presented and everybody else is saying, "Yeah, let's do this, this, and that." And I don't have background information, I'm going to go with the board. >> And it's not just that. It's explaining that information to say, >> do you understand what I'm saying? The 7.1 is not just taken away at the beginning of the year and then we're going to go on. No, it's taken incrementally for the all those months till the end of the year. And that's how we're running we're going to run into a deficit >> and and I understand because we can be disagreeable. I I know
271that. But when you lay it after us, we get a true picture of what's if if somebody over here is is is, you know, going on and on and on, you need to say, "Hey, let me explain it to you. This is what is is is taking place. But if you don't, and I don't listen half the time, I listen to what you say >> and you're gonna have somebody that's never going to agree with you and we need to move on." That's why I said during the meeting, let's move on because >> she's never going to agree with you. So, let's move on. >> Yeah. >> Do does the board for 2627. Does the board want to be a balance budget or we >> hope we don't we we know it's >> this is
272why we're not going to have a balanced budget. >> That's what the budget parameter. That's why I'm asking the question. >> The last the last budget we had was not a balance like 30 something,000. Is that correct? >> Last year, >> but we knew that >> when we voted on it. >> But at this point, I think not only do we need a balanced budget for 2627, but we need some more guidance to figure out what >> it doesn't matter what kind of budget we pass at this point because we we went over. >> It does matter and it matters a lot. That's why we got to stick to and realistic things and we can't be given races that we can't afford and we can't, you know, we can't just go change the scale. We
273can't just go do equity. We can't do that. >> It does. I'm just curious from my Did that happen during Ranger? >> No. >> Like was that part of the 2526 budget adoption? The 24 25 is when they pass the equity and then this current year like while we're doing the seven >> but not like year in the year just at the first. Yes. >> Okay. Well, okay. That helped me. the budget parameters is going to fix that because we're we're going to have all the math done nine ways to Sunday >> and and unfortunately for 2627 it's going to say in order to present a budget balanced budget we're going to have to reduce 17 >> I mean like whatever these >> things that y'all are think >> we're going to have to do
274a lot of cut back on some program we just have to is you not asking though the board to consider declaring financial exit. >> Okay. So that's another tool. So you can declare that and fix it tomorrow. >> Okay. But >> Okay. Thank you, ma'am. It's called financial exit meaning that >> the board is saying you know what >> this looks bad enough that we're just going to basically make everybody's contract null and void. are just going to take care of >> sort of like cleaning bankies and fish reagent a bond and they're say what happened back in 2526. So that's the down. >> So you it is a tool but it's a tool that comes with a cost. And so now what I just heard is you don't have to do that. we can
275make adjustments moving forward and that's that's a good thing. So we just kind of like I think what end of the night and I think it's good kind of clear the air. >> Okay. Right. Let's clear the air then build back better with this financial parameter where everything's riding in front of the board month to month to month on building the budget. Then it's months to month to month on tracking the budget and then we don't wind up here again. So, can we do a pre-trial basis to where have you come up with that tracking one? Can we start like in April and then see where we come how let's see how we come as far as close to the audit numbers. I'm sure we're not going to look at it in August. It's going
276to be later on. But as far as looking the audit number and compare it to that monthly, >> I I'm okay with that. I just want the trustees to know you're gonna have to walk and chew gum because we're also going to be showing you this budget parameter memo >> for 2627 to build that budget and that's different. >> Yeah, you're going to have like you're going to have them both in front of you and >> we're not doing budget parameters for 256. We're doing >> budget three of them. you April, May, June, July, August, you'll have these budget parameters to see monthto month to month how you're going to get better numbers on projections and things which going to show how the numbers get better and better. So that but that's all to have
277y'all ready. >> When do they when's your final budget workshop? >> Okay. Okay. So that it's today we're saying we're going to get ready for August the 19th by having these numbers right in front to adopt the budget. >> But since we already have numbers for April, May, June, July, August. >> Yeah, that's the budget that we're in. I I mean, you could >> what that would look like. I mean, if we're far off, then we went wrong somewhere. >> Well, no, we know that's the thing is we know we're gonna have to >> Okay, so we can >> we need to start reconcile it. Well, start making cuts today. I mean, you know, it goes back to go backward. What's >> I'm I just want to see how it's gonna work preliminarily just >>
278358. >> Is there 358 though? >> Yeah. So, these are some of the things that we need to do like we need to do some things now, right? So, like right now I'm telling you, we've said no summer traffic, you know, now. But this doesn't affect your grants. >> No. And yes, I mean because if we we can still amend grants. We can still amend federal grants. And so if we we could if we put money from federal grants into travel, we can let's just say there's an instructional software. We can move money around to free up money to use that grant. >> I has the board is this the first time they're kind of seeing >> it was in the packet. Yeah. >> No, no. I just need like >> Yeah. >> So I
279what I I I long know but I I really don't know that there was any part of tonight that >> tomorrow I'm going to say >> that should have never happened. >> Right. >> It's almost like everything that happened tonight had to happen in my like I don't I can't think of one thing. >> Okay. So then >> these are the three things I think that we >> but I I think schedule at the board end to come back and say these are actions we have to take now >> to make sure that we're not going to go over any more than we have to in the 25.6 Is that right? >> I just don't know. It's 10 p.m. after 4 hours. It's time to take these lines. >> No. No. I don't know. >>
280But we But we teed this up. If we would have just put this in your hand at 5:30 and not giving you any of the context that we got tonight, you wouldn't have >> I have no problem. >> All right. That's what I'm saying. Now it's like, okay, I understand. We've got to make >> It's all coming together. >> We got to make some adjustments. I'm I'm telling you. It could be worse. Yeah, I'm gonna go have four meetings this month that are worse than this. I'm not kidding. They they let it Well, they they didn't do what you're about to do in the first year. They punt it for a year. Do you see what they didn't do this and then they punted it for a second year? Okay. Then now flares are going
281off and like your >> states Yeah. >> Well, the state may come take over. That's exactly right. And so at least as tough as this is, you've got a chance where I even now want to make some decisions, right? I think we're going to make some decisions to start now. >> Um so the three things I think that we didn't that we still like we don't have we don't have the energy to discuss is what we want to do with the SEO loan. what we're thinking with junior high, which is the or I guess we're all sort of realizing we're going to have to put some money in to make it last until we can get building. >> I I walked in here without having any information and that's what I heard, >> right? >>
282I'm just like when I listen to everything that's >> and then the VA >> it's going to be it's going to be 15 20 years on the junior. Is that 30 years? It's >> so >> that's what I thought I heard. So >> we just need to talk about what do we need to do to keep that junior high and that's >> I think minimum of 15 years. >> I I that's kind of where I am >> because then you go for a bond and then you have to go through the structure sell the bonds. >> Yeah. I don't know if you're going to have bond capacity in 15 years is what I thought I just heard from Don. Is that right? And especially if you need some of that bond capacity for some of
283this stuff. It all goes back to the >> TR TR also. >> TR is gonna maybe generate a couple million. It's not going to generate 30 million. >> Well, >> I understand it, but there are no absolutely make sure everyone understands that the T is not going to generate. >> I have a question. What do you recommend we do with people? >> I think we should just hold off on it. It's there. If we can do it in a year, I don't think we should add more depth, another opinion. And we got to get our ash together. >> I'm just going to tell you, >> that's what was in my head. I wasn't going to say it. >> I think I tend to agree with that. We're looking at putting more money into that high.
284We're going to have to just charge for this. >> They're they're getting federally subsidized for some of this for your waiver and there's going to be another bucket of money a year and be another bucket of >> And if there's dollars right now with Trump instead of Biden, then there's always going to be dollars. I promise. Okay. So, I just >> It's funny my gut feeling. >> Okay. >> I just >> So, what are we looking at as far as uh We're not You're recommending no CC code loan. What are we looking at? Are we looking at the 32 million bond or are we looking at the vape treat >> the the the tax ratification? We got to do that one. And then after we a little bit We do definitely need to get one.
285We need to somehow do our roofs because we don't want to have another >> but that's with the bond, >> right? So maybe let's just say 2026 we go out for the TR then maybe 2027 we would >> we would consider and I'm not saying 32 million. I don't think >> I I take between 15 to 20. >> But we also need to do something about that parking lot if we're going to keep building up >> because that parking lot is terrible. >> The junior high. >> I understand. You got to screw up the parking lot because it's all potholes. >> And that's where we're going to have to decide. We'll bring here. These are the items. We got the elevator. We got the parking lot. We got the slap. for sure. >> Well, I
286think the elevator is more important than the parking lot >> and that's what you all have. >> No, I never took out the elevator. I never took that out. >> I never took that. But my question, we had two proposals for the high school because we have two different types of roofs. >> Yes. >> Right. One is a rock and the other one is >> so we got to decide are we gonna full >> or recoup that'll last us 10 years which will last us maybe five or seven >> get a 20 year out of >> right >> but I have to go back up there now and see if it's still salvageable that's what I need to know is >> we got to stop the structure from cracking right now it's going to cost
287$50,000 just to do all this spalling all that breaking off You see, because that's what's happening is all this reborn that's holding that foundation together, it's just rusting. >> So, my question on that, I keep hearing that water keeps going under there. Are we going to solve the problem of the water going down? >> We need to Yes. Our drains are broken and cracking. There's some >> right there. I kind of blame you for that. >> I am. I am. >> Okay. But it's not because because it's a simple It's a simple fix. The board doesn't want to hear. Let's move on. I mean, >> I don't know. >> I don't think that >> Well, it's a simple fix that we don't we don't take care of. >> We don't take care of the simple
288fix that become major problems come to us. >> A lot of times everything is a simple thing. Everything >> the money is not their fault. It's simple things. >> And and I agree. So the decision >> we can't fix one at a time. Go ahead. >> It's very, you know, let's put a 30-year roof because it only makes sense, you know, but sometimes you got to go what you got. Only a 10ear roof. We're going to put >> I am disagreeing with that. >> It's a pipe in there from the roof. You can't replace that pipe. Well, hadn't they fixed it, if it cost $5, your deficit would have been $5 higher than it is now. >> A gunner is basically a pipe coming off the roof. >> I saw it was PVC. It was
289broken at the bottom. Probably the kids stepped on it, broke it. >> That's not the only place. It's It's underneath the building that So, we need to bring to the 50,000, right? >> Yes. I need I need 50,000 to stop the stalling. >> So, we're not Okay. When you meet with the facilities committee, you also have to give us a timeline because if you're saying I'm going to give you the 50,000, we're not waiting on the bond for that. >> The 50,000 is the part that is my understanding,000. >> Okay. How you how are you funding it because you're telling me you have you don't have any money. >> Well, and here we go. It's a simple little fix, you know. So, let's let go the the that slab that we need to prevent any
290more damage to go in there. So what do we do? Wait, >> we don't have the money. I know, but if we wait, it's really when we saw it break, it was a simple fix. We didn't fix it then. That's what I mean by that. >> Today is a major fix. >> Yeah. And as you see the pictures, 2009, there was pictures and we're here. >> So what are you recommending, Mr. >> I recommend that we we're going to bring that slab that we're going to try and where are we going to get money? I don't know. We have to cut somewhere else. because you're going to do it tough decisions and they're going to hurt. >> But you're talking about cuts that are going >> but starting 26 27 now. >> Now, so we're
291going to be in another deficit >> if we don't because you win a million. >> No, if you're saying you're going to spend that money of that slab this year. >> No, I'm not saying we're gonna spend it. going to bring it to you guys so you can tell us what to say. >> But I'm telling you because you know what I'm talking about. So you're going to bring it to the board. She's saying we need it. We need it done. We don't have the money. You're saying you're going to cut into the general fund and we're going to be in another deficit because it was an expenditure. >> So you're saying we're starting to cut tomorrow. We're starting to tell. >> Okay. That's and that's all part of the communication process because if you're
292telling me you don't have any money but I need that slab tomorrow. I mean explain it to us. >> So the cut starts now, >> right? If you look if you look on page 358, those were things that we're going to try to start doing. >> What you had up there? >> Yeah. >> Okay. Go back to >> Oh, no. I don't know if we can do all that, but I was just go back to where we were. >> Okay. >> So, this was the part of all Yeah. of all of this. The 50,000 is the one that is the most >> right that has to get done. That that's gonna slow it up, right? That's that's what we're trying to do. We're not fixing the foundation. We're just slowing up what's happening because that
293rebar that's running is rusting and cracking. >> So, it's pulling the foundation. The thing what was learned tonight I think it maybe wasn't learned before tonight is that the junior has maybe in a bond election for a new junior probably off rather than we realize. Oh yeah. >> So now it starts making this like we got to do. >> Well yeah it until we move forward with bond. Now we know we're not getting bond. Now I got to hurry up and get everything fixed. >> Right. And tonight was the night to know that we're not going to >> say fix it. We need to fix it. We can't just keep putting it off and putting >> We've been asking for this miss on this. >> Well, I mean I I like I get that. But
294then that's on one there's like a little angel sitting here saying that and another one saying but wait a minute we're going to build a new one and we're going to be accused of throwing good money >> right. I mean he came out he said you're not you're not going to get all of this information anytime soon. and he goes and even then it's going to be more than seven. >> They just heard that with y'all tonight. So now it's now things are looking pretty clear. 50,000 we got to go to fill in. >> Well, and then the TR arguably again help you >> with those costs. I'm gonna keep this by the way because I think it's a good chart. >> Okay. because you're showing like the TR it won't take care of all
295of this but you can start packing away. >> Yeah, >> you can just start packing away at the lowhanging fruit, right? And then then we can 27 think about the bond to take some bigger chunks off of this. That's what I think I >> kind of like agreements before we start into this next year's budget. >> So, two quick things. number one resist and and I'mma say this mis menus you let us know what's going on let us know exactly what's going on for you in the position you know what we can afford and what we can't say it you know and don't ask no mind >> boy you're going to get >> you know you know what the need is and how cuz I I'm be frank with you because I ask almost every
296day, can we afford to stay over? That that's my thought almost every day when I hear things and I say, can we stay over but you over finances so you know what we can do and what we can't do >> and let us know. >> So supposed to have learning walks tomorrow. Can I say that we can cancel those? >> Say that again. I have a second. >> Oh, I'm not gonna be there. >> And I sacrifice. >> I know. >> And on my birthday, I was even here. And I got punched that day, too. >> I I And I I know. I just want to make sure I What have we been here? Five hours. >> Okay. >> Do I get any hours for this? >> Yes, ma'am. >> Probably not. >> But you
297I just if we can lean into like it was a good air clearing like I said earlier and we kind of we got everybody back. I know everybody's not here right now. One was here for I think enough of it that she's she >> she Okay. Right. But as long as I'll I'll walk to the moon with the 52 vote. I'm just gonna tell you the superintendent Mr. Bill. >> Right. So if I have a 52 or 61 then sometimes we don't listen. You said that earlier, but we got to just keep making 43. >> Yeah, I like 52. >> You're gonna get it all the time. I'm going to send you all an email about a date for like our April budget meeting. I'm kind of thinking April 13th because that's far enough from
298right now and it's two weeks away from >> I tell you what the if we didn't care we wouldn't be here right now. >> And I don't care what we have to stay till 11th. I'll stay till the end. >> You're right. >> We're already here. >> I think you're at a good place because we we I've got all the notes. I've been taking notes on the budget parameter. So, we're ready to build that. >> I think this is starting to get us all on the same because we haven't been on the same page. >> Well, the whole we say to get on the same page as a speech. >> However, the budget parameter memo is literally page. >> Like this is I can hold it. We agreed to this in April. >> You're not
299reading something else. We're all reading the same. >> We're all on every month's the same. So what I'm thinking is if we did a but this was outline if we do a first budget meeting April 13 by that time we'll get the TR information right we'll have this budget parameters well >> you'll have communicated about that other sheet to make sure that you know the whatever we're calling it monthly sheet I'm not going to be here well >> I'm not going to be here in June >> right so when does the budget process starts >> tonight >> we just started >> every every month >> I'm suggesting the next meeting would be April the 13. Okay. >> The 13th. >> Yeah. >> And then when do you think >> we always set up three meetings
300before that August 31st deadline? >> Yeah. >> Just to make sure >> the more information we have, the more three meetings. Yeah. >> Well, I'll challenge I'm going to challenge you right now and in 20 next year. This is March. Once you start this process, it's it's much easier to say in February, even for a September, all we're doing is just showing this year's sets of numbers. We we have some assumptions by >> The templates are done or they're getting done. And so we have you can arguably smaller meetings, shorter meetings, >> February, March, April, just touch base, touch base >> and then you get in a rhythm of just what changed. You don't have to like go through all the information. It's just what changed and the board is comfortable. That's the picture I
301have in my mind of where we go. >> I'm saying April 13th is it we do have Easter and then >> is that after Easter? It's the week after Easter. Not the day after >> April 5th is >> I appreciate y'all. >> Y'all can come in. So Lori can help us with the uh with the uh golden pennies. >> I I'll just keep ask >> the value value formula. How many of those can we get? >> But it ends up >> Okay. Is that >> No, no, >> I think that's all right. The time is 10:25.