001Recording in progress. No, I'm good. I ordered Yes. Good. Yes. three to four years. Three to four. Yes. For teachers that have five or more years of experience, they will receive a retention aotment of $8,000. The next section does not apply to us because we obviously are enrollment is less than 500. How soon will we know about these figures and uh or in reference so so we can incorporate them into our budget? So right now we're still waiting on additional guidance. So right now this is this is what has been approved. It has not been signed. We're waiting for signature. Uh and then we then we will have to phase in the breakdown of this uh of of the uh of the aotment. In other words, how the districts are going to pay the amendment
002to the Okay. So, that's not defined yet. So, that's we got some time because we still have if I'm correct, this morning as I read that the Senate had some questions on that on that house bill and that when that happens, they're going to go back into a conference committee and iron things out. Uh so as of today and Mirina is the last is Mirina sat through the through the most current house bill 2 uh information from OKC it is beyond committees. It is just waiting for signature. Yeah already it's already waiting it's only waiting for signature. So they've already negotiated okay numbers. Uh okay and on on this thing I mean on on what I read it's going to be for teachers and staff. So how much or or which staff have for for
003this aotment for this very specific aotment this is only for teachers. So we'll talk about the other one in a minute. Yes. So this so we have two years to roll this out. So we will then spend uh obviously after today we want to make sure that you have the most current uh numbers. Then uh the business department, the HR department and myself will then have to spend a good chunk of time upgrade updating all of our uh salary tables where at least very specifically to the teacher tables and then once we get into the other a lotments changes to other uh pay structures. But as of so as of today these are the projected dollar amounts that we're expected to receive. We then have to turn around and embed these into the uh salary
004tables. And of course, whatever we don't pay off this year, we have until next year to to to uh to pay off to all the candidates that that qualify for this. Uh but then we have to deal with the following year if it stays. It's a two-year aotment. So yes, because we have to do the same thing again. Okay. So yes, it's so the the work on the compensation packet is going to be very critical. Um so that is house bill two. The next uh the next allotment is the support staff retention aotment. So this again this is a new aotment. It has been approved for Crystal City ISD. This aotment will generate $65,496. The support staff allotment, there's a very specific and I'm moving you on to page four of your thicker packet. The
005red section, the red bulleted section. So for the support staff retention aotment, these are the staff members that are eligible to receive compensation under this allotment. Things to consider, especially for us as we work on the compensation packet, is there's a very long list of people that are eligible, but the funds continue to remain the same, 65,496. So, we'll have to figure out how this uh money is going to be broken down. And when say support staff, you're talking about uh teachers that are not eligible for the teacher retention, counselors, librarians, nurses, teachers assistants, custodial staff, food service staff, bus drivers. So, all the people that are listed in are eligible for that allotment. Which type of teachers would not be eligible for the other a lotment? Instructional coaches. Instructional coaches typically have a teacher
006contract. Uh but they will not be they will not be those are the only ones. Yeah. If they have just an instructional coach uh title. Moving on to special education evaluations. Uh again this is an addition uh additional revenue to the district. Uh this is this has gone from uh $3,000 uh number to $1,000. So right now for every special ed evaluation that the district performs, it would have to be a full FIE. Um right now we are expected to receive revenue of up to $66,000. I think it's important that the audience know that under the new voucher deal we have every we have we're responsible correct for doing all the diag even though they're not going to attend our school correct that is correct under school safety aotment this is uh new under the
00789 uh we had it wasn't applicable to us for the current uh for current under current law uh under the 89th legislative session, we are expected to receive an allotment of up to $196,231. Moving on to aotment for basic costs. Uh this is a as of maybe two weeks ago, we were looking at $150 per enrolled student. as of uh May 29th, that figure has gone down to $103, I believe, uh for every enrolled student. So, we are eligible to receive additional basic costs uh monies of up to $176,914. And then I'm going to move on to the last page because really under House Bill 2, these are the only a lotments that impact Crystal City ISD. So I only wanted to touch base on what's going to impact us. On the last page, going
008on to the last section where you see compensation requirements. So, uh, taking all of those increases into consideration, the new M revenues, uh, above current law, or what we're expected to get in addition, uh, as as new monies is 1,322,849. Uh, what is it going to cost for uh cost the CCISD to meet the compensation increase requirement? It's going to cost us up to $611,848. That is about 12% of the total uh estimated uh district contribution. uh the contribution going into payroll, TRS and and and what have you all what we call fringes remaining uh M revenues after we pay into the retention aotment and to the support staff aotment the uh remaining uh revenues will probably be at or about $639,414. So again, the district is expected under the 89th uh legislature, very specifically
009to House Bill 2, to receive increase revenues of up to 1.3 million of which the majority is going to be applied into the two different aotments. Uh leaving the district with a rem remaining M revenue of $639,414. So that is the latest update on House Bill 2 as of May 29th. Why wouldn't any of the other aotments or anything under house two pertain to the district? Uh so the only other aotment that we did not discuss is the prep the preparatory one and that's because we have to create a pathway for under the that's an educator pipeline. uh and uh aotments, we would have to create a program of study before we would be eligible for that allotment. Question on House Bill 2. Well, you're saying that this was this information was when as of
010May 29th. And uh you don't have or you think that this information is what the saying that's going to the government to sign. Correct. So yes, the House Bill Two has uh is out of committees and it's only waiting on governor signature. Yes, sir. Okay. So, we're moving on to uh budget. Okay. M affect our budget. Uh this bill is only for two years and I was thinking about the increase in salaries for uh professional and not professional. Uh what if in I know it's a big what if. Mhm. Uh what if in two years legislature doesn't provide any more funding for that. How we going to deal with that in terms of letting our employees know or do we going to let them know in advance? It is only for two years. Might have
011to reduce your salary in two years. So that's going to a lot of that is going to depend on the compensation packet that we put together and how we create the salary tables, how we adjust the salary tables because we have to do it in a way because this is only for years three and that first one is 3 to 5 years or three or four years. We have to be able to do something first for one to second year teacher. So we have to create buffers here and then we have to transition the tables out. So yes, that is going to that's the guidance that we're looking at to see how best because every district salary tables are different. How best to transition in to the new legislative mandates and out of them because
012yes, right now we don't know if this is going to be sustainable. It's well the districts have to be able to sustain the the mandate, right? And so the local the local budget is going to have to come in and leverage out wherever we have gaps that will be created in the salary curious because the second year a lotment doesn't increase because for example if we have several teachers that are four year workers they fall under the current one but next year they're going to have five years experience so we're going to have to deal with that increase. I'm assuming they're going to change They're not going to stay with the previous compensation. I believe they're they will, but we need to we need more guidance. Yes, sir. Okay. And we will then as as
013now we move into the guidance part of it, the application part of House Bill 2, we'll bring you all updates also. Okay. Uh make sure that we are in compliance by September 1st when this becomes effective. Uh can you advance the slide one? Okay. So, we we'll begin with a budget update. Uh so, first I know that uh Mr. Spinozosa had asked for year-to-ate budget cuts for the 2425 school year. Um and this is a comparison of the original budget. The original budget being the August budget. So under 5700s the original budget uh we began at $15,860141 uh the amended the amended budget as of uh May 12th when we brought it to you amendment number four uh we have reduced uh by 12 million not by 12 to 12,63,16.3 uh and so when we
014do a comparison between the original budget and the current budget which which amendments you just approved. Uh could you give us the names of each one of those budget numbers? 5700. Uh Robert, do you want to jump in? It's under the 5700. It's local 57 local is 5700 local. It's local. Okay. That's what I want to hear. We're going to move tax as well, right? Okay. Then the the 5800 is what? State. State. That's TA and uh 5900 federal. Federal that's federal. Okay. Fed and U9 is 7900 transfer. Transfer transfers in transfers in 57 was what? Local local. It's local, state, federal and transfers in. Okay. All right. This was what transfers in. So the difference uh from original budget to current budget is uh 3,797,34.97 in state aid in revenues. Uh original budget was
0157,764,934. Amended budget 6 bill797,0005052.17 a difference of $967,88183 federal revenue uh the original budget was at 3,295 934 thou uh $34 uh the amended budget is at 1,44.15 and this This is where we had a big This is where Mr. Sepeda included the federal revenues into into the uh into the general budget. So that's why you see such a such a difference there. The difference being 3,294,246.85 in uh transfers in for the original budget. We had zero. Uh the amended budget it's uh $1,247. the difference being 1,247. In total revenue, the original budget was at 26,920726. The budget amendment uh as of May 12th, 2025 uh has us at 18,862,8942 for a difference of original versus current budget of $8,57,916.58. So that is how our original budget has evolved over time and as we have
016been making reductions in budget throughout the year. Um so a lot of work that has gone into these into these cuts. On the next slide uh these are cuts by function under instruction and and again thereby function because this is how the board approves uh the general fund. Uh under uh function 11 or instruction, the original budget was uh at 12,359,562. The amended budget for that same uh function is 9,997,31240 for a difference of 2.32,362,24960. Under function 12, instructional resources and media, our original budget was at $125,880. Our amended budget is at $4,77143, a difference of $121,3657. And under function 13, staff development, our original budget was at $52,300. Our uh amended budget is at $19,752.87, a difference of $32,25013 cents. Under function 21, instructional leadership, our original budget was at 1278,000. Our current is
017at $4,77143. The difference is $131533. Uh 333. I'm sorry, I read that wrong. $131,533. Function 23, school leadership. Our original budget was set at 1,166,525. Our current budget is set at $1,178,697.90, a difference of $12,172.90. Function 31, guidance and counseling. Our original budget was set at 1,100 I'm sorry 29 $291,517. Uh our amended budget is at $626,892.76. A difference of $335.375 $135,375.76. Why is that a negative? Doesn't have a negative. I'm sorry. I guess you didn't pick up a negative. Where am I? At at line 31 counseling. Oh, I'm sorry. Yes, it's a positive. It should be a positive. Yes, it's a negative. I know. I saw it in parentheses. So, it's a negative, right? Okay. It dropped. Uh, function 32, social works, social work services. Our original budget was at $21,885 uh versus current
018$195,147.92 uh for a difference of $6,7378. Function 33, health services, our original budget was at $256,6940. Our current budget is at 204,94756, a difference of 51,74644. Uh function 34, student transportation. Our original budget was set at $665,7170. Our current budget is at $588,75.38, a difference of $77,64162. In function 35, food service, our current our original budget was set at 1,231,256.0. Our current budget is at zero for that function. A difference of 1,231,256. Again, uh if you all recall from the beginning of the year, food service should not have been included in general funds. So that's why we zeroed it out. Uh we zeroed it out initially in February. Something with the going on with the calculation, right? Like for item 31 and 35, it shows like there's a there should be an increase if these
019numbers are correct for number 31. 35 is is really an increase. Really an increase. Well, 35 is an increase and 31 is a Well, 31 is an increase, right? And 35 should be a decrease, right? Cuz it belonged in another file. Yeah. Well, these are showing I mean I guess I'm taking the blacks as increases and the reds as negatives, right? So they showed up differently. Yeah. So those two functions be corrected. Yes. Uh function 36 extracurricular. Our original budget was at $1,184,636. I'm sorry. Did I get that? Yes. I'm sorry. These numbers are very small for me. 1,184,636. The current budget is set at $865,7242 a difference of $318911 and 98 cents. For function 41 central administration our original budget was set at 1,43,112. Currently we are at 1.1,374,158.97 uh for a difference of
020$33146 $331,00046.97 for function 51 plant maintenance and operation. Our uh original budget was set at $985,236. Our current uh budget is at 2,655,72.13 a difference of $1,670,466.13. Again, uh the plant maintenance and operation, we go back to the beginning of of the year when uh the original budget had under uh underp projected the expenses for the current year. So, this adjustment we made very early on with Mr. Solomon I'm sorry on 12 on the budget cuts 12 and 21 they seem to have the same original budget 12 same amendment budget cut by function for under function 21 12 and 21 they have the same original budget 125 125 and and no 12 and 21 on the 2425 budget amendment number four they both read 477 7143. I think that's his question if they're the exact
021same budgeted number and that's the the original versus current is different on I mean that's what we have. Yes, sir. That don't add up. Miss 21 does not add up. 47 is not 131. It's Are you looking at 21 or 12? 21. 21. But they both have somebody do the math and that should be it should be 121. 121 121 will you can please make the correction to 121 under 21 121 sub under 21 yes sir 21 the original budget was actually 145,5 okay thank you what sir 145,552 52 correct 145 552 and the 25 So you Can you give us the uh difference? And then the uh the difference is 131,533. Okay. So they Yeah, just the numbers were off. Yeah. Okay. So where am I? 52 uh security uh and monitoring. The original
022budget is set was set at $598,325. The current budget is at is set at $657,942.88 for a difference of $59,617.88. Function 53 for data processing. The original budget was set at 630,713 and0. The current budget is set at $531,93842. a difference of $98,77458. Function 61, community service. The original budget was set at 66,479. The current budget has been zeroed out. The difference is the $66,479. for function 81, facilities and acquisition and construction. The original budget was set at $1,856,592. The current budget is set at 67 $67,000,781 uh $81, a difference of 1.21,248,811 for function 93 shared services agreement. Original budget was set at 40,000. Current budget is set at 42,000. A difference of 2,000. For share uh for function 99 intergovernmental changes not defined in other uh in other codes. Our original budget was set
023at 375,000. Our current budget sits at $442,422 for a difference of $67,422. And then for our code zero internal fund transfers out, we had budgeted zero originally. Current budget sits at $462,348.94 for a difference of $462,348 $348.94. Our total expenditures for from the original budget uh is 26,920,726. Uh our amended budget, which again we just brought forth to you all last a couple of weeks ago, uh sits at 20,469,6358 for a difference of 6,451,000 night uh 61 $451,9042. Our estimated budget change in fund balances, we began with zero with the original budget. We are currently sitting at a deficit in uh under uh under the new amendment uh at 1.6 million uh dollars and of course that is the the difference one point 1 1,66,000800 66 $826.16. So these are the budget cuts that we
024have made uh throughout the year beginning with the original budget that was adopted by the board on August 26 of 2024 to the last amended budget by the board on May 12th, 2024. Miss on May 12th. I don't think we took action on the budget uh on the budget amendment. We never amended the budget. We didn't take action on the budget amendment. We adopted it. you on August 12th. No, on no the the budget amendment. But we have amendment number four. Yep. I thought we had tabled it or not. I think you Yes. The the the board adopted the budget amendment. On the last budget there was a additional revenue of I guess something that wasn't appropriated yet. I forgot what function it was added. That was not uh not added to the budget. It
025would be distributed later decided by how you would put for where you would budget that. That was a 1 million to the 1.2 million. Yeah. That was not included in the um do you have a I guess a budgeted versus actual information how much you've actually spent year to date? We can provide that for you. Okay, moving on. Page seven. Hold on. Hang on. Let me Let's just advance this one. Okay. on page seven. Uh Mirma is going to begin with uh now the the the budget updates along with budget assumptions for the 2526 school year. So MA go ahead and u let's get going while Juan figures out the technology. Yeah. On page seven under 2526 budget assumptions, we have the enrollment. This is end date is of 2425. This is how we ended
0261,559. This is our enrollment and this is going to carry over for next year. Uh attendance rate ended up in 91%. The refined average daily attendance which is calculated by the enrollment times the attendance rate comes up to 1,49. And our current collection rate we have it currently at 97 uh percent up to 98% collection taxes rate as up today. And 95% 95 there. Yeah, 95% but we have collected 97 98%. So, but for the purpose of the of the budget assumptions for the for the update, we So, we're we're 95 we're using 95%. Yes, sir. We're being very conservative. Yes, sir. But this year was 97, but we're going on 195 just to be sure. The next item is property value growth. You can see it's a negative uh 0 uh 06%. And this
027means that it has dropped and um from the 2025 taxable value it was 1.5 and that's the current for the 2024 is 1.66. So he has dropped the property value and all of these data is uh based on TA law and legislative updates. So all of this is actual data coming from the TA. What about legislative have you checked like on this one with the appraisal district here? Yeah, we received preliminary these are all from preliminary values like May the 2nd something like that. on the appraisal. this they walk in with a preliminary they'll submit in I believe July the 25th the certified you know if these preliminary data um I saw that they had increased the homestead exemption to 120,000 does this include that or no this is just their val ones you're referring
028to is where they'll they'll determine which amount it is that they're going to exempt and then they'll apply that to That'll adjust probably in the certified value show up to the next page number eight. Continue with the project x-rays for the 2526. Our current right now for the maintenance and operations we have 0.6669. 6669 that's for the M for the INS which is the debt service it has 0.246045 which means that it has decreased it has dropped uh 04 cents compared to prior year prior year was 0.286659 286659. We have a question for Robert. Robert on on the tax rate that we approve. Uh how how much can we increase without having to take take the motors? You you've actually increased your compress your maximum compressed rate assigned. It's different than the last few years.
029TA now determines what tax rate the district uses. Uh the maximum compressed tax rate, compressed literally means that they push the tax rate down is [Music] 61.69 cents. The board approved an additional 5 cents locally and that's the grace that the state lets the local boards do only 5 cents without having to go to an election. They've already increase. They've already done that. Not decrease. You can't go down because we're already a compressed rate. Yeah. Yeah. TA wants a share of money and if you're making so much you can't they're not allowing you to drop it any further because if you do then you uh are taxing below your level which means so what we have right now is is is we can go at the max yeah because I was thinking about the uh
030the uh I mean we're getting I think you It's the exception is increasing to 140,000 from I mean the state will make with those exceptions the state will allow the school district school districts what's called a hold harmless so if the district loses 150,000 they make some of that I know but what I was saying I mean with that amount of money I mean last year what was it 100,000 I mean right so I mean so now I mean there's going to be a lot of people But I mean can save in the school district and I know they're going to get it from the state but I was saying I mean if the people that pay taxes for school district are going to get on on the uh an exemption so they would go
031up but you said we're you kind of said it got you I have a question um u if I understand the process first uh we have to do a budget first and then based on the budget we decide what the tax rate is going to be. Uh am I correct? Right. So these are based on so the so the header is these are budget assumptions. I understand these are just assumptions. Oh I'm assuming that our administration's already more or less put together an estimated budget for next year. Yes. And we'll present it today. Because of that you guys are arriving at this tax rate. Well, using this the the tax rate, maximum compressed rate, and they determine the tax rate. We can't go any lower with the district. I know I know that. I already
032heard you. Um I just But it's based on a potential estimated uh budget for next year. Okay. With the uh Well, and no, not exactly. The budget is the budget. This tax rate gives you an idea of how much money you will bring in. And then that tells TA how much they're going to fund the district. This this current year, the district is funding the allotment for all the functions of instruction in the school instruction at about 66%. The state is only contributing 33%. Next year, the state is now teetering the other direction. they'll pay about 44% versus the 63 or so that they disro. So the budget is the budget and the services you have to provide based on the numbers that you have in ADA, full-time equivalents, special ed, primary technology, all those
033numbers tell the district this is the amount of money you need to have to function functional services. And the and our tax rate is only for the part that we have to pay. Not the not the state portion. It's only this tax rate is going to help us fund our share our cost. Yes. Okay. All right. So, you had a question. Yeah. With the debt service tax rate of the 0.24. Is that is that enough to cover all of our debt services that we have? Yes. Payments. Does it exceed our payments or is it right at the minimum? Right now, it's right on the P. You cannot you should not tax any higher than you are required to to pay. That's not right. Uh we were looking at uh this package. I think I was
034going to mention it to Vince that that uh uh the Senate is considering uh a bill about uh you know dealing with districts that go beyond and and taxing for INS. high. Yeah, it's like a penalty that that they're considering a penalty. So, we have to be careful on that one. We'll show you in a minute that that I guess the next line. The total for the this and is 0.912 945. You're going to see it at the next page. Now is the one provided for us. It's you can see it under 2025 year it's a 91 which is combined 91 cents combined both the INS and the iss history from the prior years. Moving on to our next slide, we have this is including the the taxes. The first column we have property taxes
035which is for the 2425 revenue. This is only current taxes 10.9. This is current year 2425. Projected for next year is 9.7 which is the difference of 1.1. Other local revenue this one includes the taxes delinquent and interest donations rent royalties. We have it as the revenue 1.0 projected. It's also estimating a projection of the same amount 1.0 Z which the difference of 91,79150. The next item is state 8 which is the foundation or foundation at this piece. For the current year we have 5.7 projected for the next year 7.7 with a difference of 1.9. We also included here for the revenue projected for the TRS on behalf 1.0 for this year for next year's going to be a little bit less 188,2179 with the difference of 7693. We have zero on the federal le
036or current is that thatal oh I was going to say is that state aid based on the ADA the current ADA has that's going to change as the staff is closing files from the different campuses all their attendance so forth digest those numbers numbers and uh since corrective and then the district has an opportunity to issue a second submission and by then TA has already more or less taken into account the legislative items that Miss Von has mentioned earlier and TA has to interpret those laws and put them into formulas as well like what we call a summary of finance. Uh the last one we worked with was outdated May May 1st and they put up another one on June the 2nd. We check it every day, check every day. And in that one they've
037put a disclaimer that it's not final until it's governor signs and everything is digested and interpreted and applied. So, so that's based off of the 1559 enrolled not Robert. How much money was Jar bringing us when we charge for special or do you know I don't remember off the top but it was it was money that went to we allocated it to to special ed. Yeah. But it went to about 50 $60,000 and please don't quote me. I mean, it's been a while since, but it was extra money for for the program, but right now we we the last refund that we received or the last reimburseable that we received was about how much ladies? 1400. That's it. Yeah. So, remember that that CA and uh special ed and SHs, they have been uh in
038litigation and they've had to make a lot of changes to and they've made a lot of changes to SHARS and how we bill, you know, Medicaid. Uh, and so that what Robert is because I know that the last time that we had a good uh reimbursement from SHs was I believe $79,000 that we used to repair the the roofing at the uh life skills unit at Fly Junior High. That type of dollar amount is not coming in like that anymore. So now what we're seeing is the $1,000 the 1,400 and we haven't seen a reimburseable in in quite quite a bit. So um yeah, shors is a different it it's a different yeah it's a different element. The total revenue current year we have 18.8 8 projected 19.3 with a difference of 130,7 and this
039is on the projections. Miss Jordan mentioned something earlier. All those a lotments we don't have those in that summary of finance. They haven't they're not in there. We don't know how they're going to impact this yet. Okay. Based on your predictions, I mean these numbers are going to change. Positive. Yes. Positive. Yes. and they might they will probably affect the final tax rate that we adopt. Uh uh we're going to have to adjust the budget. Hopefully by then we're going to have all that information, right? We can adopt the the proper budget. So it we're kind of just getting right like uh idea where we stand. Yes. projected [Applause] expenses. The current year budget we have these are ashes. What do we have in the budget here? 61's payroll. It's 15.3 projected 14.6 with a
040difference of 657,48. 62's contracted services current year 2.6 projected for next year 1.9 with a difference of deductions of 619,83. The 63 supplies and materials for the current year we have 524,4866 projected 343,973.76 the difference of $180,434.96. The 64 which is other operating cost for the current year 930,29.34 projected 2.0 zero. The difference 1.1 for the debt service we have zero. This is not we're only doing the one general fund. So that's why it's not included here. The capital outlay the 66 for the current year 611,50757 cents projected for the next year we have the 200,000 and the difference for this uh current year next year is 311,50757. Now we have the 89s which is operating operations transfers out for the current year we have 462,348 94 cents. This is including both the transa two
041transactions in this amount which is the payments to the health insurance and time warrant. The health insurance is 380,279 and44 cents and the time earned it's 82,6950 and for the next year for the projections we have 110,46.75 with a difference of 352.19. The total for the budget for the 2425 currently in the expenditures is 20.4 with the projected 2526 we have 19.3 with a difference of 1.0. I have a question uh if I may. uh my you know this is fine and dandy you know but my concern always been do we provide what our our students uh need and uh under supplies and materials the question that I have because it's an amount that dropped by $180,000 um is that uh our cost uh from local or also include any monies that would come in
042from the state and federal This is only state and local. This is the fund 199 as I mentioned earlier. So federal funds are separate. Okay. So they will they could contribute to making this amount bigger. Oh yes. That's my concern. A lot of work that uh I don't want to hear a community a you know you guys get you guys get this programs they require a lot of paper and then the teachers don't have the paper. That should not be an issue. But yes, in terms of federal uh revenues, yes, they will come and supplement. Okay. So, the on the 8900 is the transfers out for the 2425. You mentioned that was a $380,000 payment to the health insurance health insurance and assistance to that program and the 80 other 86 to the time warrants.
043So, are we not making that payment to the where how did it drop 352,000? The 110 that you see there, that is two amounts in there. I was going to save it as a prize deal uh in the other reports. That is the time warrant. It's about86 $85,000 worth. The other $25,000 that number is a payment that we'd like to schedule to transfer and it's going to be a transfer to the debt service fund. Remember the school took some money from that program. We're going to start paying paying it back. So what about the workers or the the health service? The health well at this time at this current time in this school year the district has contributed because the rates were set at a point where they did not fund fully the health insurance.
044They had not been adjusted in several years as normally we'd adjust. So you'll be seeing premium recommendations for next year on the plan that will fund it fully to it or to its maximum capacity. Um so hopefully you won't have to subsidize it. The premium will adjust. It has to adjust in order to meet the claims requirement. So it's probably going to go up. Yeah. They hadn't adjusted in several years. Let me get a question. Oh, that's 526 projection more details. We're doing some balance on the fun balance. It is not. This is the beginning balance it transferred over. You saw in the audit 1.3 million the negative. Well, when you started this year, the food service pro program was coded under program funding. The one which is has been coded that way for a
045number of years because it was a um what the term that we used project. What do we call this that program provision two because the district paid 100% of the fully the kids that have to pay in full and those that had to pay a portion of the district matched that that was from local side. Okay. So it wasn't entirely a a federal program on its own which pays only the portion for free and the portion for the reuse. District took over it as provision two. We paid for everybody. This year, the individual that you hired moved that fund over to a 200 fund. He said, "No, we're not going to book it that way under 100 fund." When you close the year last year, the auditor said, "It's a 100 fund. It has money."
046And adding the negative from the general fund, it was a a balance of 1.3 million in the in the shortfall. When he took the fund, food service fund, it had money in it. It had $600,000, $340,000, I think. When he took it out and named it 240 and moved it out on its own, they took the money with it. It has to. So, it leaves the debt the the debt, I'm sorry, the debt here on the fund balance an additional 600,000. So, from 1.3, it went to $2 million in the red. That's what you got. That's what we're start starting out with. Yes. And that's got to be another goal of the district. You got to start replenishing that. The way you replenish that is by saving money in your next year's budgets. Robert, like
047uh for this next school year or by the end of the school year, I mean, be we're going to finish uh paying for a football field, which is going to be a big savings. I mean, how much do we pay for the football field? We still have uh we still need to pay about 200 an additional $200,000. We're done, right? With a football field. Yes. I mean, that's money that we can start putting on in the following years. Yes. The following year 26 27. That's that's true. As you eliminate some other some other project that you started, close them out. Those are funds that can stay in the budget, but save them for future or or designate them as a savings to eliminate or start reducing some of that that red ink. On the following
048page, you've got Yes. Page 16. 16 for the current year 2425. What was in the system in this submission that you started with you allocated or $4,727,000 for 2526. The bill for the bonds is really $3,65,000. So you can't charge taxes beyond that amount. Hence the reason for dropping the tax rate. Okay? You can't tax any further. That's the bill. So the intention is only charge taxes to collect enough money to pay the bill. You will probably have delinquencies. People will not pay will be late. But you've also got some delinquencies coming in and maybe some penalty interest. You can't count on them 100%, but you'll get some that'll make up the difference. Okay? So, you'll probably meet that goal and maybe exceed it a little bit. And if you don't, the debt service fund
049has its cushion. It's got a fund balance of its own, which is great. And there are times that maybe the district needs to well it isn't now anymore because you're if you're capped at the tax rate but years back we needed more money in the M and we're about to raise taxes we drop it on the debt service fund. The bottom line would stay the same and even go down but the cushion was made by that by not charging more taxes on the debt service fund and yet meeting the obligation. So state revenues the 148 is sort of the whole harness for the debt that's projected this year and same as next year. Now it's going to be updated because like you mentioned go up another $40,000 in exemptions. They'll probably try to make this
050full time as well. As far as when it comes to the delinquent taxes and stuff, does the district place leans on any of the properties or for those that are delinquent? Not the district. Apprais appraisal district. Yes, the appraisal district will will uh go after those delinquent and uh based on the what they collect they divided into all the entities uh the school district the city the county chair on on page 17 you'll see the revenue side of the debt side the revenue side and combining your principal interest for 2425 was at 3,827 $7,000 on the 2526. It's the same number as you do as revenue because that's the bill. Okay, that's the bill. On all the bonds, there's a a schedule that goes 20 30 years worth and we know exactly what. So, the
051difference is they're going to adjust expenses by about $222,000. The following page is the fund balance. The beginning fund balance we ended up the school year on August 31st of 24. The fund balance was 3,684,000. The projected revenue was the uh 300 I'm sorry 3,754 expenses at 306. This is for the for the coming year is uh 3,605. So you're going to add a little bit more money into your friend. And this is a perfect example of what you want to do with your general fund as well. If you bring a little balance over and then you've got revenue one year and expenses, maybe you don't budget all the expenses, all the revenue. You have a little bit left over. It adds to your fund balance. It doesn't necessarily sit there, but it gives you
052credit ratings um for something down the road or you can project a project that's coming up. Don't necessarily have to impact your budget because you've got revenues on the side and your savings. You can designate that. The time warrant uh because it wasn't uh we didn't guarantee it with taxes, we cannot use money from the debt uh debt service fund balance to pay it off. Okay, on page 20 we have projected revenues. Um, this is on the food service side on child nutrition. We had a food service management company in place in the district. Now the expenses are annual, renewals are annual. They supply provided the district with an email yesterday that they don't want to renew for the next year. So the district has got a choice to go self operational or go out
053for bids. And I think it's too late to go out for bids for a food service management company. Uh and now they've got to put together an application and a budget for next year. And that's what they're working on. And currently for 2425, these are the numbers that they've got. 1,170,000 in revenue. For next year, we're projecting about $1,400,000. About $300,000 more in revenue projected. Okay. And you turn the page for the expenses. The expenses are at 1.4 million of the current year. And there it is. And again, it's very preliminary because we got to get the application in and the the legal running of food service is putting numbers together as to how many meals and the rate that the state's going to allow to charge and so forth or reimburse. And so that
054that number is a preliminary number. It's another 1.4 million for next year. What was the reason they didn't want to renew that contract? Uh primarily pro primarily what we we have some issues that we'll have to discuss and close session on Monday. Uh primarily is the payment schedule and we are not uh completely satisfied with service provided to the district. So we've been you know it's been a contentious relationship pretty much all second semester. On page 22, you'll see Yeah, go ahead. In reference to the uh current budget that we're at possibility that we're going to end up with a deficit for the nutrition portal, it might because I see revenues uh one 1,100,000 revenue posted today. Oh, okay. Still waiting on some receipts already. They just look at page You'll see a number that's
055familiar that I mentioned earlier. The beginning fund balance 643,000. That's what this program finished with last year. It was in the general fund. Okay. Rachel here moved it out and renamed it. That money went away and now it sits on its own. Those dollars are here. Your example is one other place. Yeah. Yeah. Okay, this money comes to us from Texas Department of Agriculture and some is from adult sales capital. It's no longer going to be 101. It's going to be I don't have anything for it is currently fun 240 right now. You're bringing another presentation. Is this being shared to the stream or Yeah. [Applause] Ready for the the grand finale. Now we're moving on to uh this is a draft uh very draft uh 2526 budget uh including uh uh again another draft
056cash flow model for the 2526 school year. I've combined two reports in this one and I'm showing you how you you've got a budget over here on the right hand side in columns A and D that broken down by taxes and that number is number that shows up in the report for the PowerPoint that means we don't provided you with on line two all the way to line 11 are the other sources still local but delinquent earnings from CPS fees, rent of property, athletic gate receipts, and so forth. 5700s are at about $10,780,000. Lat 14 to 16 is the state side, what they contribute. That's about at 8,612 13,000 federal across the board. We have nothing right now. Total revenue is anticipated at 19,393,000. Below that, we've got expenditures. We've grouped them a little bit
057different. We've grouped them by payrolls, by contracted services, supplies and materials, other operating costs, which is travel and utilities. Sometimes 6600s, which is capital outlay, and then 8,900, which is a transfers out. the transfers out in this one we referred to earlier we discussed earlier is a time war the reason is that as as as an 8900 as a transfers out is because they've not paid from the general fund but the funds are allocated in here and transferred out transferred out to the debt service fund the debt service fund which is fund 598 is the one that actually pays the bill 59 okay and pays that bill out okay so you'll Notice that line 23 says 19,933,000. The projective expense matches that and that's what you should see and that's what you should adopt a
058balanced budget. The only way you don't adopt it is if you got or that it would be different is if you've got more revenue. Then the difference in the revenue is what you'd say I'm going to add that to my savings to my fund balance. If you notice line 29, it's highlighted. Look across the column F, G, and H. If the and that's $2 million compared to I'm not sure what the number was earlier, but it was not $2 million in this current year. That's projected to make a payment on a possible loan to the district. We've allocated that payment in here as well. That an estimation only estimate of $1.5 million. the payments are in there. That doesn't total to the 1.5, it exceeds it because there's other other items in there as well.
059If you look at line 31, September, we got $5,000 there. And then next highlight in January, column G, 20,000. That's $25,000 that we'd like to transfer over to the debt service fund. We're up front trying to set money aside to meet some of our obligations. It's a drop in the bucket, but it's an attempt to start making payment on it. And in light of those numbers, you're balanced. Okay. Below at line 37 down to 42 is just a little more of a description. These numbers are based or these revenues are based on an average daily attendance of 1398. 1,398 kids. It's conservative versus what Miss Bionis and and Adena may have mentioned earlier at 1400 some oat. If you fall higher than the 1398, you're going to get more money. You got it. Put it
060away. Save it or allocate it to a project that you've got. But if you fall short, then you got to dig deep and cut somewhere else. Hence the assumption or the projection of only collecting 95% of your taxes. You're being I'm good. You want to time, sir? The house Texas is playing. What's the time, sir? Time. I'm for uh sorry I think the I'm for UTSA for for crew.