001[Music] We welcome everyone to this June 16th, 2025 meeting of the question board of trustees. This is a regular board meeting and all items that will be discussed have been duty posted. We have a quorum. Seth Brown, Kamar Chambers, and Mel Cedo are not in attendance. While this is a meeting in the public is not a meeting of the public. The board's role is to set goals, approve personnel and budgets, make policy, provide oversight. We're not here to manage or solve individual problems. Management is the responsibility of the superintendent. As a board, we believe that we must educate every child, provide every child the greatest opportunity to learn, maintain a safe and secure environment mentally, physically, emotionally, and academically. These are core values. We appreciate your interest in CISD students of CISD. Uh, first thing
002is pledge algiance to the flag of the United States of America to the stands nation indivisible with liberty and justice for alliance to the Texas one state under God, one and indivisible. Father God, we thank you praise God. We magnify you today for just thank you for how you kept us all day. We thank you God that you help us throughout the summer so far. We ask God that you continue to keep us in every right direction. Lord, we pray God that you would just continue to bless us with the wisdom, the knowledge and the understanding God of every decision God that you bring for us God for the children of this community God for this past and we just ask you to go before us. We magnify you. Amen. Amen. Do we have any
003guests? We're now to the superintendent for board. Congratulations to baseball's East Auty. He is a junior for the Tigers and he made first team Texas high Texas High Baseball Coaches Association All State as third baseman. Easton had a 469 batting average with five home runs and 39 runs batted in. He will be a senior next year and he is committed to the University of Texas. Here are a couple of reminders for July. District and campus offices will be closed June 30th through July 4th for the holiday. And our only board meeting in July is scheduled for Monday, July 14th. All right. Thank you, Miss H. Uh, now we'll have the silver committee recommendation. Okay. Good evening. My name is Jordan Harelson. I'm here with Annette Wallfall, sorry, Andy Williams, Terry Garner, and Misty Kohl's. And
004we were either asked to present to you guys the bond recommendation or volunteer to do so. And so there's not really anything special about us with the committee other than uh we're very passionate about it. We're excited to share some of these things with you. Uh just to go over a little bit of the process that we've been going through since February. The facilities committee originally met um first in February. Um the facility committee was a group or is a group of community members, parents, and educators. I kind of cover several of those different categories. I'm a Corsacana graduate, graduated in the year 2000. I have a student here in Corsacana ISTD and I teach at the Corsacana Middle School. Um several of my um friends up here share those those same experiences. Uh we
005went over needs and wants and priorities of Corsacana ISD. Uh we had a bond financial recommendation and those are the things that we're going to be going over today. Um in addition to the comm the committee uh we partnered with an architecture firm or the district partnered with an architecture firm who specializes in in schools and educational facilities. So they have been instrumental in helping us kind of take a look at some of the issues that Corsacana is facing. Um we also went over just some wants that we would like to have for Corsacana. Um but there are a lot of needs that our district has with different campuses. And so those things are some of the things that you're going to see tonight and I haven't been clicking. Sorry. Okay. So, first up, the
006facility assessment that was done at all campuses across the district. Um, you're going to see some examples from all of our elementary schools, uh, our Collins intermediate school as well as our high school. The really the only campus that we're not going to cover a lot is Corsacana Middle School. It is newer and doesn't have the needs that some of our other campuses have. Uh, first up, you're going to see a picture with some damaged foundation. This is from Buoie Elementary School. Um, and you can see the separation of the tile from from the wall. Uh, obviously that poses a potential safety hazard, but um, if any of you have ever had a foundation problem at your house, you know that it can cause several other issues uh, within the structure. Uh, the next picture
007that you're going to see is somewhere on our transportation facility. I have a very good friend who's a bus driver in our district and has been for quite some time. In addition to the poor condition of the transportation facility, it's my understanding that it also floods, making it very difficult for our mechanics and other people who work on our buses to do their job and to make sure that our buses are running efficiently and are safe. Um, again, we're on the restroom. So, if you've ever been to Corsa High School, you may recognize some of our lovely facilities uh that we have there. They are not just cosmetically un sorry cosmetically unappealing. Um they're also I guess structurally the plumbing is is not what it needs to be. Mr. Andy Williams has a piece of
008pipe from our Corsacana High School where you can see uh what the water is flowing through. And I'll let him have his moment here showing you guys He's going to wash his hands after this, I promise. And it's just not um the the restrooms that our students utilize. If you've ever been to our performing arts center to see one of the amazing plays that our theater department puts on a band concert, a choir concert, then you've waited in line because there's only two restroom facility or two restroom stalls in the facility in the women's facility. I can only speak for the women's facility. Um and uh the one of the faucets doesn't work and it's just not really functioning. Uh so this is obviously a priority um of the bond proposal. Uh the next slide
009is going to have pictures of some of our uh high school spaces. In the first picture, you can see the lack of space in our welding department. Um there is uh several different I guess classes or different types of classes that go through welding. You can start out in like basic welding and kind of advance. Um and when you're when you're building a gate or you're building a trailer, you can look at these pictures and tell that it's simply not enough space to do that work. Um, and then the second picture is aging vocational facilities. Um, I'll be honest, I don't even know what that's supposed to be. Um, I guess it's a tabletop maybe for doing some sort of project or construction, but you can see that it's kind of been peacemeal together um
010for our students to use and our students deserve better than that. Um, the lack of storage. Again, this is at just about every campus across the district other than Corsacana Middle School. Uh, lots of closets being used for uh files. uh that should be used for teacher materials and things like that. If you tour the high school, you can see a great example of of the lack of storage. So, one of our meetings we got together and we uh developed um kind of a a dream big but the the sky's the limit type of mentality. We broke into groups. They were not assigned groups. These weren't our normal people that we sat with every every facility planning committee. they randomly assigned us and we got together and we we dreamed big for our students here
011at Corsacana ISD. Um we kind of compiled those or we didn't um the firm that we have hired compiled or brought and compiled those uh along with our community survey which everyone in the community had the opportunity to do through our website and through social media. They were able to click on a link and and and put in what they felt like was important. So along with the needs from the facility assessment, along with our wants and needs for our school district and the community survey, this is the top 10 group priorities that came out. High school bathroom renovations. Obviously y'all seen an example of that. Buoy restroom upgrades. They are in in uh need of some upgrades as well. A CTE edition. And if you aren't familiar what CTE stands for, that stands for
012career and technical education. and we'll get a little more into that here in just a minute. A high school cafeteria expansion, Carol Elementary improvements, a new or updated agricultural facility, Sam Houston Elementary expansion, early childhood center, Collins improvements and buses. And so what what happened is the the committee got together and along with our counterparts from the firm hire brought in and we came up with what would be a recommended project scope and the neat thing is it covers all those things that were in the top 10 more or less. Uh we had to get a little creative on how we're going to cover those things in the top 10 but this bond proposal um did just that. So, the bond capacity or the bond proposal is $25 million. It has a 30 cent tax
013impact, and I'm going to let Mr. Williams get into the tax implications here in just a moment. He understands that a little better than I do. Um, and so what that's going to look like is a new early childhood uh center which could house the possibility of 800 students. That's going to be three-year-olds, preK, and kindergarten. So, what that's going to do, it's going to solve several issues. It'll take about 200 students alone from Carol Elementary and alleviate some of the crowding that they have there at Carol, but it's also going to alleviate some of the crowding or getting to the point we're at capacity for some of the other elementary schools across the district. Um, so the the location of that has not been determined yet. There are some possibilities and and that's something
014that would be discussed further on down the road. uh the high school career and technical education edition would be included in this uh project. If you have a student who attends Corsana High School, uh you know that career and technical education is the way right now. Uh I'm honored to teach a career and technical education program or class at the middle school level. Uh but in high school, it's much more expansive and and they need the space to work. They need the space to do the things that are a part of that program. Uh my son is in health sciences and they do things like there's the possibility of having a pbotomy certification. Those things can't be done in a standard classroom. Uh we've already seen some of the welding and some of the vocational
015classrooms that are available. Again, you have uh culinary arts is a huge program at Corsacana High School uh with a lot of involvement, a lot of excitement. the students seem to really enjoy that program, but their facilities aren't adequate to to learn the things they need to learn and to to do the things they need to do safely as well. Um, again, there's there's a even a um like a computer programming slash egame department and it's so crowded that it's almost like walking into like a bedroom or a bedroom size with several computers and and trying to have a sound booth and trying to have a they try to have or they have a little setup where they can record and do audiovisisual and there's simply not the space. The career and technical education edition
016is going to allow for them to have the space to learn and to have those different programs. A really exciting thing here at Corsacana is we have a new fire program. And um none of my children want to be firefighters, but I'm just so excited for our community that we have this opportunity at Corsacana High School for you students to graduate at 18 years old from Corsacana High School prepared to be a firefighter in our community. And so I just think that's an amazing opportunity, but they need the space to do it and and they deserve the space to do that. um high school kitchen and cafeteria expansion. So, I'm honored to be a part of the five program over at the high school and I had not been in the common area during lunch
017since 2000 and I went in there one day to say hi to Callahan because he was in there eating lunch during during the time that I was leaving from Defy and I I wanted to have a panic attack. Everyone is touching in the lunchroom. So I was explaining it to my husband and I said it would be like going to Cotton Patch and everybody around you's chair is touching you and your server can't get to you. That's how tight it is at the course of Canaan High School. And I think it's that way for A, B, and C lunch. I don't think any lunch is alleviated from those issues. So, this bond would have a kitchen expansion to meet the needs of our our campus at the high school, but also a cafeteria expansion so
018the students can can eat a little more comfortably and and move. Um, and high school bathroom updates. We've kind of talked about that already. High school classroom renovations. That's another thing. If if you haven't toured Corsana High School, I encourage you to do so because um once you pass the front office and our um gym that was built several years ago, which is still called the new gym, even though it's technically not new, um but if you pass the new gym and you pass the front office, you're met with 1972, I believe, Corsacana High School. It has not changed. Uh the classrooms are the same. um even when you get into like biology classrooms, chemistry classrooms, it's the same setup that I had in the late 90s, early 2000s and uh it's not adequate for
019what what our students are doing now and how they're learning in 2025. The new agricultural facility um a is a huge program here in Corsacana. Um there's there's so many benefits to agon and I won't get into that but uh our 4 FFA a is a huge program and our facility is way behind the times here in Corsa. Um I don't know that all the plumbing even works like it's supposed to. I'm sure with the rain that we had the last week if there were animals in that building it would not have been safe for the animals. And so we proposed that we have a new agricultural facility to meet the needs of Corsenna agricultural students. The new transportation building, we talked a little bit about that earlier, not just the flooding, but just the
020fact that it's outdated. Collins improvements. Uh there's several different improvements that would take place at Collins. There's some drainage issues at Collins. Uh there's also some security updates that are necessary at Collins. This would also include things like new flooring, HVAC, air conditioning and heat. Um, new roof and um some paint and just some updating to bring it into 2025. Uh, buoy restroom updates. We talked about that a little bit earlier. Buses, new buses for the district as we grow and our district grows. Uh, those are necessary. and even maybe one day down the road the potential for having some charter buses or something that uh are long distance trips for our students would be a little more comfortable in the future. Uh we just talked about buoys foundation Fannon has those same structural issues.
021They would be repaired under this bond proposal. HVAC and roof repair and replacement. I believe we would start with No is the worst I hate to say worst but is the most in need uh elementary campus. would like to say that Navo is the new elementary school, but it was built in 2001 and so it is due for some updates and it would be first on the list to get that um air conditioning and roof repaired and then security upgrades. Um this is not something that was necessarily in the um original wants and needs or the community survey u because our I think our district does such a great job of providing a safe learning environment for our students. As a teacher, I feel completely safe um as things are, but this would be an
022additional level of security for our uh all campuses where there would be a badge entry system into each and every classroom on in the district. Uh and with that entry system because some added securityurities where our administration can lock doors remotely using that badge system. So, it's just one extra layer of uh safety and a safety precaution for all of our campuses and for our students. Okay, I'm going to turn it over to Andy Williams to explain the tax implications. Good evening, board, Superintendent How. My name is Andy Williams. Um, a lot of you know me, been here for 46 years. Uh, I've had two children in Course Cana ISD. Uh, one is going to the fourth grade at Buoie, which you see on the list, for some possible upgrades, and then, you know, the
023next year she'll be going to Collins Intermediate. Hopefully, we can get some upgrades. I went to the middle school at Collins Intermediate a long time ago. I even went to my freshman year of high school at Collins Intermediate because there weren't there wasn't enough space at the high school for ninth graders. I don't know if you knew that in 1994ish, three or four. Um, yeah. So, this is much needed. I was going to go over a couple things before I went over this because this is probably 30 seconds worth of information. We're at $25 million on a possible bond to fix our schools that our kids, my kids, your kids go to every day. Got a kid going into the high school right now as a freshman. Thankfully, there's a little bit more space there
024than when I was there, but there's not enough space. Uh we started out at over $500 million of everything that we need. So, we had to narrow it down to what we want. what can we afford? Um, taxes is where the affording comes into play. Remember, the high school was built in 1970. That's where the lot of the money's supposedly going to go. If we can get this done, it's where it's going to go. Um, remember, we have not enough space. Your values in your in your school district, your city, wherever you live, it is driven by the local market. I'm a real estate appraiser for the Texas comprollers office. I perform what they call the property value study every year. I know you know what that is. I am trying my best to make
025sure that the schools get as much funding as possible. I do that 40, 50 hours a week. So, I understand the real estate market. Um, I understand the tax side of it a little bit because I worked at the appraisal district for 10 years. So, your values are driven by your local market. I say that because the stronger your market is, the more people come here. the more people come here, where are you going to put their kids? There's not enough space. That was my spill on that. Um, talk about tax rates. This bond increase, if it passes, does not affect your maintenance and operations budget. It only affects your INS, your interest in sinking. This does notffect affect your daily operational budget on a 30.24 tax increase. That's on a value of per $100
026in taxable or market value of your property. So, We got a clicker here. I forgot. How do you work this thing? Which button? That one. Okay. Oh gosh. Go back. If you look here, I'm not sure what the median home value is in course of Canada ISD, but I'm assuming $250 $300,000. Probably 275. I don't get to study course Canada because I used to work here. Um on a $300,000 house, you're talking a tax increase of a whopping $483 a year. That's $40 a month. That's a $132 out of your pocket every day. How many of us can say we go to Waterburger? I spend $57 every time we go to Waterburger because I feed five people. That's one trip a month. That's one trip a month for you ladies or gentlemen who go to
027Starbucks maybe twice. That's it. And you're talking about our kids are the ones that are going to be affected if this doesn't if this doesn't happen. Um you're over 65 people. Anybody who has a homestead and over 65, any value increases, any taxes or any tax rate increases do not affect your over 65 citizens on their homestead property. Their value can go from 300 to $500,000. Their city I mean, excuse me, their course canist taxes even if the tax rate increases does not go up. They can't control the market. They can control their age because they're over 65. Uh unfortunately uh any market value changes based on your real estate market uh does not affect your city or your negro college tax. But that has nothing to do with us. I'm just letting you know
028that those over 65 people would only be affected on their homestead by the city and college. It's a local option exemption. It means that your local entity has the option to freeze that tax rate or that tax or that ceiling on the that property. Homestead only. Just wanted you to know that. Um, what else do we have here? I put city and college. Your over 65 people back to them. We have to get them to vote because their grandkids are going to be affected by this. I think if we get out and educate our over 65 people, get them out of the house, drive a bus, get them to the voting booths, because their taxes aren't going to be affected on their homestead property. It doesn't affect their rental properties and things like that. I
029understand itffect affects their rent rents rent values or their their their tenants but overall their grandkids should be first in mind and that's what this is going to affect. You saw the pipe. I don't know what that stuff is inside but I'm not touching it. The high school was built in 1970. I went through it in 1995 6 and 7 and it's still the same place it was. Ethan and I were going through there the other day and he said or Elizabeth and we were talking about the size of the high school and I counted those wings. I think there's six hallways. When I went to school there, when Stephanie went to school there, there were four. After I graduated, they added another one. I think after Alice and my wife graduated, they added another
030one. Six hallways isn't enough. You see where this is going? The market's only going up. I study it every day. More the market, more sales, the more people come here. Their kids have to have somewhere to go, somewhere reliable, somewhere safe. Uh remember, a$132 a day on a $300,000 house. If you don't have a $300,000 house, if it's less than that, guess what? It's less than $132 a day. That's all I have. Who wants to do the next steps? Just one more note that we had um I guess I forgot or forgot to relay to Mr. Williams. Um, even at this tax rate, we're still the lowest in the county. So, or one of the lowest in the county. Um, and so this is this is not something that is going to, you know, of
031course the canas taxes at the at the top of Nearo County or anything like that. Um, also all of these improvements. So, I think a lot of people expect when when we do this bond um and got this together to have a new high school. I think a lot of people assume that we're going to get a new high school. And when you looked at the price, there was just no way. not with all the needs of our other campuses and uh in the school district, but what this bond will do and these improvements will do is add about 20 to 25 years to the the life of the high school. And so um when we pass this bond or if this bond passes, we can get another 20 to 25 years and it'll be
032several years before we can do another bond, seven to 10 years before we could even do another bond um to address any additional issues. So this this bond proposal that we brought before you guys today is the most all-encompassing meeting the needs of the students the children here in Corsacana um with having the the the I guess the most farreaching impact on as many students as possible. Um and so do does anyone have any questions? Okay. I just want to say thank you to everyone to have given their time and it's important. It's important that our community involved in this seeing and identifying what we need and what our kids need. It's not, you know, oh, it's about our whole schools we have drives more people coming and buying homes in industry and it gives
033our kids like a CT facility. gives our kids opportunity to learn skills that are going to help them have a better job and a career be able to give back to our community in a positive way. So I appreciate everybody for their input, their time and this business so I'll say ditto on that. Um, thank you all very much for all the time you put into this. Thank you. Yes, we don't have questions. [Applause] We're going to uh in August we're going to board together and we'll come back with y'all in August with all the bond. Okay. And and also tell you, y'all did a great job up there. That was that was that was good. And and all the meet we've had, I've learned a lot. And I graduated 79. I mean, it's it's
034it's mindboggling. All right. The next thing we need to do is a 202425 quartered budget update. Yes. Once again, thank you. Uh that was very good uh presentation. Um, I I bet I bet I could use this prop as well in our uh in our budget updates uh for this year and next year. Um, Miss How, President Farmer, board members, I'm here to give you an update on our current fiscal year. Uh, the end of May marked 75% of the fiscal year complete. So if you go through the first page, you'll note that many functions are below 75% spent. In total, our uh 199 budget is at 70%. Uh which is very good news. We're under spending. On the next page, our athletics budget. Uh they are in good standing. Uh revenues at the stadium
035have been very healthy this year. We appreciate their hard work. Child nutrition is also in good standing. Uh I do want to say I'm proud of our departments and principles this year. Uh they have uh run their campuses, their departments with savings uh in mind and so shout out to all of them. Any questions on the expenses on those two pages? Nope. Okay. Last page of that report are investments. Uh investments have done very well this year. Uh interest rates hovering around 4.1 4.2%. Uh we are forecasting bringing in more than what was budgeted for interest uh revenue this year by a couple hundred,000. So uh the investments in front of you were as of May 31st. That has changed a little bit just since we're in a payroll week, but at that time uh
036most of most of our cash uh most of our money was was invested amongst Texas class, logic, text pool, techar and first public. We try to keep them evenly spread. Um so any questions on those? No. All right. Thank you. All right. Uh, next year's budget, I'm just here to give you a summary. Uh, as you know, uh, legislation has has, uh, ended. Uh, things are bills are signed. Uh, TEA is still making a lot of the rules and exactly what things are going to look like, but I'm going to give you a short summary, just a couple couple bullet point uh, points. The per pupil amount increased from $6,160 to $6,215. That's $55 increase. This is money that we get with the greatest flexibility of use. Uh making the news, probably the top thing
037was the teacher raises. So for three and fouryear teachers, they received a $2,500 raise. For five plus years, that's a $5,000 raise. Uh these raises are based on what data TEA gets from us uh in our PES. Uh it is we are just kind of like a flow through for they determine how much that is. They send it to us and we give it to the teachers. It is a permanent raise. It's not a stipen or anything like that. It is teachers that have a PES code of 087. uh it is not just restricted to teachers that are say classroom teachers. We also know that like inclusion teachers should be uh included in that raise. Uh we've just received some guidance on some of that. Uh of our teachers though we should note that not
038funded was 01 and twoyear uh raises. So that'll have to come from other sources of revenue. We also are receiving $45 per adjusted ADA for support staff uh payraises. So, paras counselors, nurses, bus drivers, etc. That amounts to about $240,000 in additional re uh revenue. We also received a $16 basic cost aotment based on enrollment. This can be used for utilities, property insurance, transportation. Uh this is about amounts to about $566,000. Special education, prek, CTE, teacher incentive aotment, and safety all uh as well received additional funding. And of note, the homestead exemption raised from 100,000 to 140,000. Okay. Any questions on House Bill Two as far as that goes? Good. Okay. So, preliminary right now for next year, our revenue, if you look across, so the first line on that spreadsheet, FSP, that's the foundation
039school program. That's the revenue line that HB2 affects. So, we're forecasted to receive between 2.1 and 2.3 million in additional revenue. We have two scenarios. One from region 12 that uses the famous uh Omar's template out of another region center. Uh we also use Mo Casey. They're a consulting firm. Uh they send us some scenarios. So you can see that their revenue projections are within $200,000 of each other. That was good news uh that they were close like that. below that uh local revenue that includes like our interests that we earn on uh our investments. Uh athletics is in there. Our state is just TRS on behalf again just to flow through. They send us money on behalf of TEA and the state and we send it on to TRS. That last line is SHARS.
040That's the reimbursements uh for Medicaid. that's kind of up in the air at the moment uh with funding, how that's going to go, new contract, what are we going to do? So, we're it's all in discussion. Okay. But we have seen significant cuts uh every district has and that is a true number. Uh hundreds of thousands of dollars gone uh from SHs. So, you can see the total revenue under both scenarios. the Omar's template from region 12 64,500,000 and then MO case so you have 64,697,000 below that you have our expenses our expenses are um up to date as far as payroll um we have basically moved our lines from this past year into this year's uh next year's budget Um if just just like that just by copying and pasting our expenses are 66,562,827
041the line under that is the required raises. So to think about this if you think our additional revenue is about 2.1 to 2.4 million depending on the scenario 1.4 of that money is going to go to teacher raises. Okay. So you're we're left with an additional 6 to800,000 uh dollars for not all the way discretionary because we still have to do support staff uh uh raises. So with that raise uh we are about 67,996,435 which depending on the scenario for revenue the deficit right now is between 3.3 million and $3.49 million. Uh so that is where we're at. Very preliminary. Um, we have time. We have time to to to look at some lines. We have time. I mean, uh, as soon as I got this scenario from region 12, within 24 hours, Omar was
042updating his template again. So, it could be completely different or not completely, but the revenues could change, could go up. Uh, what we saw in the difference in scenarios was how much money was going towards the raise. So Mo Casey had had a little bit less which means we were left with a little bit more discretionary money where region 12 who has better PES data from us uh they had a little bit more money going towards the raises uh figuring they they knew more about which teachers were were supposed to get those raises. So, like I said, very uh preliminary. Uh I'm optimistic that that deficit number won't come down uh the next time I speak to you. What because you said you copied and pasted our expenses from this year? Sure. What um what
043are you seeing increasing besides payroll? What other things are impacting our number as far as expenses? We're uh when we look at utilities over the few years, last few years, we're seeing we're definitely seeing those go up as as uh we had uh maintenance and operations take a look at those and they ran their budget for me. So those are going up at basically which is function 51 which is maintenance and operations. I mean you're just seeing they are at budget. If you go back to their expenses for this current year, um they are they are it's very tight uh if not over in some of their account codes. So I would say, you know, you're you're talking a few hundred,000 in in just basic maintenance and operations. Um and then you throw the step
044of teacher pay and support staff that are on scales. um you're it's an it's easy to get to you know a 3 million number. So can you also talk about how much we give to our health insurance and then about the increase that'll happen with that? Yes, thank you. Yes. So right now we contribute $399 um on behalf of our employees and we just got our premiums in and they're going to go up $63 uh per staff member. What are we required by the state by the state to pay towards this benefit for our employees? $225. So we pay above and beyond. We've paid 100% but this year we weren't able to do that because we're in a deficit. So now it's going to increase. You said $64. Yeah. Uh $63. $63. So it's going
045up again. Again. Okay. Yes. What about our facilities insurance? Is that are we seeing any increases there in um our we have not uh we are hoping to actually be flat to be uh the same as this past year. So initially we learned that some of the coastal uh districts that get their premiums first were actually seeing um a decrease in their premiums slightly. So they kind of have been spared uh for se for for a few years now or if not more. At the beginning of May, we spoke to our insurance agent and he was hopeful that we would be about the same as this past year. That was assuming the month of May was free of hail as we are grouped in with one of the most active areas in Texas, if not
046the country, uh for hail storms. From my understanding, uh I know we've had a lot of storms, uh but from what I know, I don't I don't believe it was a crazy month for claims for school districts. So, we should know in a month um or so about our property insurance. So, 10 a 10% savings there is like $130,000 savings. So I mean if we if we were to see anything up to 10% that would be I think of everything in a teacher pay. So I mean that you just save two three not save but I mean that's that's compared to two three teachers pay. So so when our governor boasts about giving this great amount of money to public schools to be able to fund them properly. That is incorrect. It is incorrect. and
047and and uh didn't have it in my notes, but I'm glad you brought that up. Uh because the gold penny uh yield was modified. And so basically um in their complex calculations if they were to not if if they they redid the formula for gold pennies that it yielded less for a district. But the difference of that is they took it and moved it into other areas that they were said they were funding, but it wasn't necessarily new funding. They just shifted money, tagged it, said you can't use it with any discretion. And so some of that money that they're saying is is new is not is not necessarily new. They just took it from one area and put it in another. In other words, we lost ground. Yes. Yes. And if if you do
048the percentages, we went up $2 million um a few percentage points. Well, that's not what inflation has gone up since 2019. So, um definitely uh we were we were expecting more than $6,200 per student. Um so, but we will make do. So, but we we uh it is certainly tight. So, I we just got back from a conference, schoolboard conference um from last week and pretty much everybody all districts there were going to pass a deficit budget, right? um because there is not enough funding being given to public schools to cover inflation since 2019. Correct. Correct. It's not just us. It's a statewide epidemic. Everybody's facing this challenge. So, and to remember too, raises uh the the TRS the benefits. So, the new new money that came in for that cannot be used towards benefits.
049So that has to come from uh our own funds. Um and so between eight and 10% of the raises, you know, that's that's additional money we have to put towards TRS penalties, paying above minimum. So there there's some unfunded parts of these mandates that are definitely penalizing us. Any other questions? All right. Thank you. Thank you. All right. The next thing is cotle scholarship update here. No, I'll be just fine without that. Thank you. Well, good evening board and uh thank you for the invitation. Uh today I am going to cover the portfolio performance over the last trailing year for the Collins Educational Fund. and then I'm gonna have Jared come up and kind of go over the oil and gas minerals, talk a little bit about the income uh that we're throwing off. So,
050here on the first page, this first page is a view of your uh portfolio's asset allocation. Uh you can see that cash equivalents as of ended just shy of $710,000. Your equity portfolio around 11.4 4 million. Your fixed income at 8.9 million and then that mutual funds position uh that's in that Vanguard high yield bond fund. Uh so you can actually lump those in. So your total fixed income portfolio is actually around 9.25 million. Uh but that puts you at a grand total as of May 31st of 21,391,3804. Uh one thing that I want to point out here is your accounts investment objective. So you're in a very traditional growth and income portfolio. Uh typically we refer to this as core investing, right? It's a balanced level of uh risk and return. So what we're
051aiming for here is anywhere between 40 to 60% uh percentage of your total market value being in equities. And you can see you're at 43.51% and then additionally 40 to 60% being in your fixed income portfolio. And you're sitting there at 43.27% combining those two numbers. So, you're very well allocated. Flipping to page two, uh this is kind of a one-year look. Uh the column on the right is your numbers as of 531 today. Well, I guess a couple weeks ago. Uh and then the column on the left, those are your numbers from last year. So, you can kind of see the changes uh in your portfolio. There are a few things that I want to point out here. The first is that your total cash and equivalence uh dropped from that 1.47 47 million
052back in 2024 and now is sitting at 711,000. Now, one of the reasons that is is because this time last year, we had made a decision to invest some accumulated income, which you probably remember, uh into a few CDs. So, we were under that FDIC insurance. Um so, you'll also notice that your fixed taxable securities portion increases from that 8.15, just shy of 8.15, up to 9.35 million. Additionally, I want to point out where a majority of your performance is coming from, what's growing the account. And of course, that's going to be your large cap stock. Uh we had about $700,000 uh in appreciation over the last year. So, you can see the grand total. Uh that line I always like to point out. Uh this time last year, the portfolio was sitting at 20.39
053million and this time it is up to 21.5 million. So, about 1.1 million in appreciation over the last year. So that's great performance. Uh that number kind of floating out in the bottom middle of the page uh that is your total account return of an 8.34% and that's compared to the composite index turn of 6.8% so over a 1 and a.5% mode. That's excellent performance. On page three you can see what's really driving those numbers. Uh typically we outperform in our large cap holdings but that was not the story this year. I've kind of talked a little bit about um the Magnificent Seven, which you might remember. It's a collection of seven stocks that have just been uh driving market performance, kind of leading to a very topheavy stock market. Well, we have five of
054the seven. Well, if you don't have all seven of the seven, you're going to underperform in large cap. What's actually uh the reason why your portfolio still is outperforming is because your performance in your fixed taxable securities has been so strong. And of course, that's the nature of a perpetual account when you're buying individual fixed income securities. So again, your bond portfolio, that's 43% of your account, and you can see your performance over the last year was 7.13% compared to the Barclay's aggregate bond fund performance of 1.53%. Uh, which is phenomenal in fixed income. Uh, flipping over to page four, this is kind of the same view as page two, but instead of a one-year look, now it's a five-year look. Uh so you can see that grand total line uh 5 years ago May
05531st 2020 the height of CO uh your portfolio sat at 16.058 million uh that grew $5.5 million over the last 5 years back up to 21.5 million. Uh, one thing that I want to point out is in that account performance uh, table right there. Uh, you can see that cash contributions number uh, 1,210,000. That's your oil, gas, mineral interest, income. Uh, so really strong number there. And then I also love to point out the cash distributions. That's what we paid out in scholarships. Now, that number is 2.9 million over the last five years. That's a really strong number. Now, there's also a few things in there that we would take out, maybe some administration uh, reimbursements. So, that number is probably a little closer to 2.7. Uh, but your 5-year annualized average return, again, bottom
056middle of the page, you returned 8.31% as an average return over the last 5 years compared to the composite index return of 6.39%. On page five, I'll kind of let you all uh go over those returns at your uh at your leisure. Uh but I do want to point out our traditional or historical performance uh on that long-term run over the last 5 years. I said large cap is typically where we outperform and you can see a return on that 5-year column uh 16.42% uh versus the S&P 500 return of 15.94%. So you are returning more than the S&P 500. Uh and then just in the spirit of fairness, I always uh like to point out where we're underperforming as well. So that's actually your international equity portion, uh, which luckily for us only makes
057up about 2 and a.5% of the portfolio, but still pretty solid returns at 7.64%. Pages 6 through 13, uh, include all of your portfolio holdings. Um, feel free to look over that as well, but I'm actually going to jump to page 14, uh, just to talk a little bit about those CDs that we purchased this time last year. Um, so those CDs, if everyone joins me on page 14, uh, those CDs, they actually mature on Friday. So, I always like to give you a little bit of information as to how that decision panned out. Uh, those those CDs actually produced an additional $32,000 in income. Uh, now, Money Market still would have provided some income, but you actually provided $8.2,000 uh, dollar more than Money Market would have provided. So, that pays for an entire
058semester of a Collins scholarship, right? That's a phenomenal phenomenal decision that we made and now we're in a position where those CDs are maturing and we have an opportunity to make the same decision. We don't necessarily want it just sitting in money market because we do expect the FOMC to eventually start cutting rates over the next year. Uh right now we could probably get a one-year CD, which is what we decided to do. Uh we could probably get a a one-year CD around 4.2% maybe 4.3%. So certainly lower. Uh but right now money market is at 4.17, treasuries are at 4.05. So there is uh certainly an upside uh to that decision. But aside from that, I think I'm going to let uh Jared kind of talk about the oil and gas portfolio and the
059income of the account. He left me the fun things to talk about. If you flip to that page after uh there's on the right hand side there's a heat map and basically this signifies the interest that the Collins fund has ownership in. Primarily it's going to be the state of Texas uh the south Texas region certainly West Texas. Uh it does have some southeastern uh portion of New Mexico which would be the Hobbs New Mexico area where there's a lot of production. uh a few interest in Oklahoma and then there's just a tiny bit in Arkansas. So it is really well spread out. Uh the one thing on the left hand side this goes back to 2007. So it's a lot of data to look at. Uh but I do want to highlight we went
060through a 5-year period uh from 2011 to 2015 and that was when the Eagle Forge Shell region just exploded in production and that has been the big driver and that's Addis Scosa County, Freo County uh down south southwestern of San Antonio. And so that has been the big driver. over 50% of your income has come from that region. The Eagle Forge Shell region is also the second largest producer in the US today and that's only behind the Peran Basin region. So you've got heavy heavy exposure in both of those regions. Uh but you see going forward if you take those five years out it's really pretty stable. You can go back to 2007 and see uh what the income was of a little over 200,000 versus last year at 218,000. That's a lot of difference.
061Um but if you take out those five years, it gives you a good idea moving forward of what to expect and that's anywhere from 200 to 250,000. That doesn't mean there can't be any explosion in natural gas production or oil and gas produ oil production. uh oil is of course is driven by the price of oil but it's also driven by the amount of production in each of these wells. Well, these interests are depleting assets which is why we do take about 28% and move it over to the investment account and that's what's helped us grow it over the years. But it is a depleting asset. Uh it's something that we are mindful of. But you know, you can see going back, you know, the last 20 years, it's been pretty stable with the exception
062of those five years. There's a lot of information to look at. And so our really our involvement with this is we do negotiate when there are potential new wells coming on board. Uh we're contacted by landmen. And so there's a lot of back and forth on the lease agreement. We always try to get as much as we can as every land owner would uh from them. And then also uh we've seen a tremendous amount of acquisition and mergers in the oil and gas industry. And so we're constantly getting division orders from different companies. is, you know, Crescent Energy is by far the biggest company that we work with for your production down in Atosa and Prio County, but odds are they've been acquired or they have acquired somebody else over the years. So, any any
063questions on that or even on what Casey covered as far as the investing goes? We have five CDs that are either come due or are coming due. Uh let's see 59. Is that correct? Correct. So we need two of those CDs were the ones that were income cash. Uhhuh. And I think it was what 500 500,000 600 600,000. And so that will come in Friday. And so when you look at what you have in income cash that you would use for scholarships, you're still around $1.3 million. We keep trying to get that number down and here we are. And yeah, and I would say in the past it's you could pinpoint oil and gas for the reason, but right now what we have seen is basically a flip-flop where your dividend and interest income because
064the account has grown so much and has grown in a period in a higher interest rate environment uh the things that we've been buying over the last three years at a much higher rate than what we were accustomed to. And so essentially that part of the portfolio has doubled. And so we're, you know, we're in a a position where the fund is earning anywhere from 750,000 to $800,000 a year between oil and gas income and dividend interest income. And so as you guys move forward and and you're looking at the future as far as scholarship budgets, you can continue spending money. So, we need to look at when these CDs come due if we want to reinvest, if we want to put money back in those CDs. So, we'll need to and I do believe
065y'all voted on that last year. And so, if y'all want to decide on that, just let us know. Um, just know we're not going to be able to replace the rates that are maturing. I think they were at 530. They're not quite that that high today, but still uh better than what we've been able to get. Right. Well, I mean, just like you said, we we get some 4.2 4.3 out. I mean, I got some 4.3 today. Yep. If we anything four, that's a win. We we can do that. And we typically with this with this kind of money, we sort, you know, just in case uh we want it to remain as liquid as we can for scholarships. And so we don't want to tie too much of it up to to kind of
066put us in a bind, but um as long as we stay within that roughly 12-month period, you're you'll be fine because you you got about 700,000 that's ready today for scholarships and you're going to continue drawing uh income from all your other assets. We've got four more that will mature in 26. So yeah, and some of those CDs are principal made investments. And so that what we typically do with those is we will let those mature and then we'll reinvest them whether it's a CD or a treasury or government bond of some sort. I do. I do. Okay. So I'm just going to um reiterate what you just said to make sure I understand it. So when a CV bond actually matures, you go ahead and reinvest it instead of bringing it back to us.
067Correct. Only on those two CDs that was technically income cash. That's the one that y'all would need to know. Give us an idea because you may have plans to spend more uh in a given year on scholarships. And so we just need to know on that on that those funds. And I think that was six 600,000. And that does mature Friday. So, we don't need an answer by Friday, but as soon as y'all can let us know, the better. All right. Thank you. Appreciate it, man. Thank you. Great job. Now, we're going to child nutrition update. Good evening everyone. I don't know. All right. As many of you know, my name is Kim Prow. I'm the director of child nutrition here at CISD. So, our agenda for tonight, we'll go over the child nutrition staff
068by campus. We'll go into the meal prices that are currently in place for CISD campuses. Mills served the total the total federal reimbursement u the alocart sales staff training 2425 school year successes and then we'll go into the future of child nutrition. So this um school year we had five office staff for child nutrition. We had 15 staff at CHS, 10 at CMS, eight at Collins, five at Buouie, six at Carol, three at Drain which also serves Head Start. We have five at Fan, seven at Navaro, and four at Sam Houston. Our current meal prices um for CIC students are free. Teachers and staff, for breakfast, it's 250. Lunch is 425. It's also the same for adult visitors. And then a child visitor at the middle school and the high school is 150 for breakfast,
069280 for lunch, and then a child visitor at the elementary or the intermediate for breakfast or lunch is currently 250. meals served. So, breakfast went a little bit down in the 2425 school year. Um, we were trial running a couple of different things at elementary campuses. Um, mainly breakfast in the cafeteria. Um, lunch is up pretty pretty significantly from last year. Um, so we had a total meal served of 1.3 million, a little over 1.3 million. Um, for total meals served, breakfast was 823,000, breakfast was 518,000. Now, the total reimburseable um rates for CISD, it's it's a little different, right? People see 4.1 or 4.8 million and they think, "Oh my gosh, child nutrition has a ton of money coming in, right?" Um but that's not the case. This goes back to um ordering everything
070that we need for the schools, right? So, for breakfast, we had 1.46 million, which was a little bit down from last year. Um and then 3.357 million for lunches with a total reimbursement of 4.1 or 4.8 million sorry. Now the allocart sales. So many people don't know but this is how we make money for child nutrition. So if we need new equipment, if we need any kind of upgrades in the cafeteria, the kitchen, this is how we do it. Um it's through snack sales pretty much. And then for those students that want to come back and they want an extra entree on their meal, but they have to pay for that, right? So for the 25 our 2425 school year we were up um pretty pretty good. Um I would say at the high school
071we went up almost $10,000 in all cart sales. CMS was a little down. Um and then you'll see everything else we fluctuate a little bit here and there. Um but we came up with $243,000 staff trainings. Um so we started out with our health inspection training, right? We know at the beginning of the school year that's going to come twice. It's going to come in the fall and it's going to come in the spring. So, we just want to make sure um not just for that safety inspection, but for the students, right? We want to make sure everything is operating how it needs to be. Um so, that's always one of our first trainings that we start out with. And then we go straight into meal patterns and then vegetable subgroups, um menu planning, recipe
072training, food handlers, manager certifications, the hassip health safety training, and then our civil rights training. So some of our 24 25 successes um I would say one of the big ones was breakfast in the cafeteria. So a lot of our elementaryaries um pretty much all of our elementaryaries except for Sam Houston because they were already doing like a hybrid model um for breakfast for the students. Um so we trial ran breakfast in the cafeteria. It I think went phenomenally. Uh we actually did uh Carolyn Deo were the first to transition to breakfast in the cafeteria and then Fannon and Buoie actually they they did a trial run the last two weeks of school which went really well. Um Fannon is a little tight on space, right? I think that's why we're all here tonight. Um
073we're talking about space at the campuses. Um the cafeteria is very small. Um Miss White, the principal there, did a fantastic job working with us. Um making sure that the students could eat in there. And what we did was we ran fourth grade. Um, so it's kind of like, hey, we're going to Collins next year. We're going to get excited, get ready, right? Um, so that's kind of how we spun it to those parents and those students. Um, and one of the big reasons why we did this is the sheer volume of waste um that we were seeing with breakfast in the classroom. Um, it's pretty sad, right? Like we would get back hundreds of milks per day. We would have to throw away just dozens and dozens of um breakfast cereals, things like that,
074right? because once it's point past the point of sale, we can't necessarily accept it back, especially on those hot food items, milk right at Mrs. Tim. Um, so with that, one of the great things that came out of this is we were able to create a share station at the elementary campuses. Um, and you can see there's a list of approved food items and then unapproved food items list. And this is actually a visual that we have on those shares tables for the students, right? Um, so if a student comes in, they get their breakfast and they say, "Well, you know," or their lunch and they say, "I don't really want my cereal today, but I want my banana." Right? They can go and put their cereal in that share table bucket. Um, meaning that
075any other student that is hungry, um, maybe they want to take a snack home after school, um, they can come by and grab anything out of there that they wish. Um, I know Nero did a great thing where we would bag up that stuff daily and we would allow the teachers to come by and grab that for their classroom so there were no disruptions to the classroom. If there were students that needed an extra juice um they could get one, you know, at will. And then um yeah, just it it helps with the overall um food quality and safety, right? Because you're sending this food out in breakfast bags. Um a breakfast pizza in a breakfast bag with 20 other it's not very appealing by the time it gets to the student, right? Um, so
076couple of great things that came out of that. Um, increased student engagement. So, while you did see those numbers fluctuate a little bit, um, that's not necessarily indicative of less students eating. So, um, yeah, and then menu enhancements. So, what we did was we actually took a lot of student feedback. We talked to various um, teachers, cafeteria members, right? Um, just students as they came through. What do you like? What do you not like? And, uh, we removed as needed and we added as needed as well. Um, and then we also have increased our smart snack options, which if you go back to that alle cart sales, that's how we make our money. So, we can find that balance, right, with the healthy um, lunches and breakfast for kids, but then they also have options
077for snacks as well. And they're all smart staff approved, meaning they have to meet certain criteria to be offered. Um, we also featured um, holiday menu items, which when I first came on um, it wasn't currently being done. We were between directors, right? So, that's something that we wanted to bring back to the students is to really celebrate those holidays, and we plan on doing that. um significantly next year, right? Like we're going to celebrate every holiday you can imagine next year. Um and then that also helped us reduce waste by up to roughly 40% um for breakfast and lunch was getting rid of some of those things the students didn't like and adding more of what they liked. Um and then we were able to offer more fresh fruits and veggies with that and
078less um canned fruit, things like that. Okay. And then this is really exciting. Um so not a lot of people know about this knows about this. Uh Mr. typical high school knows about this. Um, but we're actually um going to and I'm going to jump right into the main thing that I think is exciting and then we'll go through some of the other stuff. Um, but we're actually creating a snack store at the CHS, right? We'll offer a variety of snacks. It's not just going to be junk, things like that. We're going to offer um fruit parfets, all kinds of stuff for the students there. And we're actually going to redirect that in the beastro that stands alone out in the cafeteria um because a lot of students right they come through the main lines
079and it causes a lot of congestion um for the students that are trying to get their reimburseable meal. So we're going to redirect that traffic out to the beastro and then we'll bring all of the uh reimburseable lunches to the four main lines uh at the back of the cafeteria. A lot of people excited about that. You know I've mentioned that to um students here and there, teachers here and there and everyone's pretty excited about that as well. Um, and obviously we're just going to keep trying to increase the the food quality, the menu. Um, we're going to incorporate more culturally diverse uh meals, right? I know, um, at we had an in the shack meeting here. Um, I had a parent approach me and she said, "Hey, what are we doing for those kids
080that are celebrating Lent, right? Like they're coming in. This is that age that they do it at." And um, you know, just that wasn't something that I had thought about at the time. And me and her had a wonderful conversation about it. Um, so that is something that we're going to incorporate next year and make sure and and she said, you know, her son's a football guy and he's hungry through the day and um, so we're going to make sure that we incorporate things like that in the next school year as well and really making sure that we're inclusive to all of those students. Um, we're going to continue partnering with food vendors to test new items and ensure food quality. I actually have a food vendor coming down not next week, not the following
081week, but the following week um, to um, just show some new menu items and what they'll do is they'll bring them to drain. we'll test them. Um, and then what we would do is do a sample testing probably at the beginning of the school year. Um, when students from each campus, see what they think, get their feedback. Um, and then that will help us roll out some of those new menu items. Um, and then we're going to continue to uh reduce the added sugars and sodium. Um, a couple of things that have come up recently is that the state of Texas is banning all food dyes in food. So, that is something that we're currently working with our vendors on. um any vendor that's currently in place, they're not making them do that this school
082year, but everything has to be fully replaced by the following school year, right? That would cause a pretty big disruption to the supply chain. So, that is something that we will be working over the next school year to do is to remove any kind of dyes from food. And you know, with our ice cream vendors and things like that, we've already started talking to them. We're making sure that we're not ordering those certain ice creams, the cereals, things like that. That takes time. Um, so student engagement and education, we're going to continue those student taste testings of increase visual nutritional signage. Um, continue doing student surveys and monitor and assess student satisfaction. And then we will continue to increase staff training just to ensure that um, all of the staff is up to par on
083the exciting things that are happening in child nutrition. I think something changes every other week. You know, I'll get an email from TDA and it's something new. It's something that they're implementing. So, we're just making sure that um our entire staff is all caught up on that as well. Um so, that's it and I will turn it over for questions. Doing a great job. Thank you. All right. Thank you. Thank you. Thank you. Okay. The next thing is B All right. Good evening. I have one more item. This is an action item. Um I gave you a handout uh before the meeting. Uh cabinet, you have one as well. Uh this is our uh we needed a new contract for our bank depository. Um this is a contract that lasts two years and then can
084be offered two more times for two years before we have to go out again. So every bank in Corsakana must receive a packet and which they they did both physically and uh we emailed them all. Four banks responded uh first state Vera Prosperity and Community. they were weighted uh on the items above. Most of the banks or I'm sorry, all of the banks um were pretty much equal on a lot of things such as the automated services, funds availability, collateral, uh these things were not in question with any of the banks. The items at the bottom uh cost of services, interest rate, fraud prevention, these were things that differed amongst the four banks. So most of our money when it's in the bank is in the checking account uh or or a checking account uh
085that bears interest. Um and so we were curious that was that was that was one of the top things was what was going to be the interest rate on that account. Um you can see uh first state offered uh around 3.98 currently. That's the fed funds rate minus uh point4. Vera is a similar formula except Fed Fed funds rate minus one uh and they are at 3.5. Prosperity sat at 1.15 uh and then community they uh their checking account was going to be the same as their money market rate which was 3.3. You also notice uh while First Aid had the highest interest rate, uh they required a minimum of $5 million in their checking account or it was going to be a $500 fee. Uh we do not keep $5 million uh in the
086bank account. So that could have been up to $6,000. We would have lost uh in fees. So uh while they had the highest interest rate, uh that fee negated uh that. It's also good to know that for for purposes of this proposal, for this contract, this is the bank where our money is deposited. This is where the the bank where our money we cut our checks from. Uh that's it. That's all we're talking about. It's not a the bank does not have to be a one-stop shop for every service. Uh we're we're only concerned with depositing money and the money leaving on checks. So, uh, we also, uh, their fraud prevention, uh, three of the four were great. Um, first state didn't have positive pay on their AC positive pay. Uh, which was we've learned
087is is, uh, very beneficial. Uh, all right. So at the end of the day um considering that our money is deposited, it sits there in our check account and we cut checks from that which which bank are we recommending? Um it is Vera Bank uh with that interest rate uh no fees um great fraud prevention. So we would like to continue with Vera Bank and that is our recommendation uh to the board. This is an action. This is an action item line. Action item. Is there a motion? I move that we approve Vera Bank as CISC's bank depository institution for September 1, 2025 to August 31st, 2027. Second. We have a motion and a second to approve the bid for the bank bid to voluntary as presented. All those in favor? All opposed? Motion carries.
088Thank you, ma'am. Thank you. We will now adjourn into close session permitted by testing and government code section 551-01. Thank you everyone. [Music]