Maypearl ISD Regular School Board Meeting June 26, 2025

001It is 6:30. The determination of the quorum is here. Um board is present. The meeting has been duly called and that notice of the meeting has been posted accordance to the Texas Open Meetings Act. Texas Government Code 551. Will you please stand with me? Mr. Derekson, will you lead us in prayer? Lord, just thank you for the opportunity to meet here tonight and everybody got here safely and hopefully everybody gets home safely. Just give us the wisdom, the knowledge and the way the right direction in order to lead our district and our kids in Jesus name we pray. Amen. Pledges please to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all the flag. I aliance to the

002Texas one state one, indivisible. [Music] All right. Is there any public comments? All right. We are going to move up on the agenda, the swearing in of our new appointed board member, Mr. Jerry. Raise your right hand and repeat after me. In the name of by the authority of the state of Texas. In the name by the authority of the state of Texas. I state your name. I, Jerry RmIrez, do solemnly swear do solemnly swear that I will faithfully execute the duties of the office that I will faithfully execute the duties of the office of Maple ISD Board of Trustee of Mapil ISD Board of Trustee of the State of Texas of the state of Texas and will to the best of my ability preserve and will to the best of my ability preserve protect

003and defend the Constitution protect and defend the Constitution and laws of the United States and laws of the United States and of this state. So help me God and of this state. So we go check out. All right. Next up, I'll entertain a motion for agend discussion. All in favor? We'll go ahead with the superintendent reports, financial reports first. And so we ended the year at 11 11.75 and 88. Uh our budget was built on 1130 and we are currently uh paid at This is a little higher 1217. So we ended the budget fairly close with our as far as our ADA piece. And we go down to the bottom, you have the budget amounts where it says revenue and expenditures. If you look over to the right hand side, we have budget appropriations. That's

004the 15 million. Uh we have encumbered and expended 87%. We still have uh July and August to finish up this budget amount. Go ahead and go to the summary. Compared to 2324 to 2425, our revenues are up 645,93 and our expenditures are up 416,194. We've got the child nutrition budget as of right now. the budget ended. As far as revenue, a difference of 20 $2,200 or $2,233 to be exact. Um, and so we had revenues of 508456 and our expenditures was 511, 212. So, uh, very close in in that budget. They did a great job, uh, keeping that budget that tight. We'll go ahead and go to our structural reports. And so we have with us today uh Mr. Rogers and he'll go ahead and present to us the report. Uh sure. Is that okay?

005You want me? Yeah. Come up here where you need to be. Um I I brought some drawings today. We've got uh we worked in tandem. Uh Richie Bowling uh requested us to come out. There was a problem in two rooms in the May Pearl primary. um where some floors were sagging. Uh we Richie engaged us and uh WJ a forensic firm and they came out did a full assessment of the structure um determined that uh we do need to replace uh fully replace uh the flooring in two classrooms or classroom six and the server room. Um some other findings that uh WJ um found discovered when they were here is there there's some masonry at the entry of the building that uh does need to be replaced uh uh due to steel lentil corrosion. Uh

006so we need to replace some lentils there. Uh I brought some drawings um here if you guys would like to review those. And uh again, WISH did uh produce a report uh to address all of the structural issues. They did find um most of the the roof structure was in good shape. So that was good news. Uh so it's basically the extent uh replacement is uh two classrooms or the classroom and the server room. So if you want to put those out there, guys, I can go up and show you where the play. Yeah. You said there's two windows. Is that correct? Right. Okay. There was also right up here. Yeah. There was also um the coping at the entry that also needs to be replaced. I don't have a copy of Jany's report. I

007can send that. It's attached. Okay. And we did a a summary letter as well. Um our drawing we have first couple of sheets are just typical details. Um but this can identify the the two areas. Uh this is a server room and then adjacent is a nurse's office. We also saw some uh deterioration, termite damage, moisture damage, that kind of thing. Um, classroom 6 and then also the um counselor's office that's right there adjacent. There was also some sagging uh at the window. And so we need to replace uh basically the framing within these areas here. And this sheet is showing [Music] the demo stance. [Music] So this is the uh the server room here and then the the adjacent nurses office. So this all needs to be demoed just like behind this area like

008it's nothing nothing good. Correct. Yeah. There's um there was one other joist on this side that had just some minor damage. We're just uh recommending going in and sistering that Joyce demo. This is classroom six in the adjacent counselor's office. Again, just there are uh concrete grade beams that basically frame around this. We actually had to go in and cut in a new access hole because we had access at the nurses station, but we couldn't get over here. So they later came in cut a hole uh reach and coordinate coordinated that wishy got here identified there's a problem is uh there's bearing failure on these joists just due the termite moisture damage. This is showing um our repair drawings. Basically coming in uh leaving all the concrete uh grade beams here coming in with like

009structure 2x8 standard salt and lumber um uh pressure treated just to prevent future water damage. Same thing here. Um coming back with uh 2 by8s pressure treated. Um also replacing the uh subfloor with plywood. Everything else he said uh he said that the crawl the other crawl spaces he said they look good. So he was but kind of barring any you know he couldn't speak really to termite damage there but he said there was things looked sound structurally. So that was good news. We've got some sections here that basically uh show you these represent concrete grade beams that's there. Um there's some interesting end conditions where they have grouted pockets, but basically just coming back with new 2x8s. Uh some new bridging uh between the the joist. Uh new subfloor here uh with OSB4. Uh

010and then these are just details of uh this is a new seal plate here that needs to be attached to the graving attachments here. Um so pretty pretty standard. Um nothing too difficult. Um these are some of the this is showing the lentil repair. Um this will be kind of tricky. Um there's there's a a concrete beam that's elevated. It's interesting structure. They've got uh masonry but filled in with uh between concrete columns and uh concrete beams. So plan is demo the masonry wherever you need it where it's where it's damaged. Uh come back with a new steel lentil that's corroded. It's uh gotten so bad in some areas that the the steel is corroded started pushing the brick up creating a larger gap just invitation for more water to get in there and aggravate

011the corrosion. So, um, and again, that's only in a couple places, but, uh, it'll involve removing the masonry, um, and then coming back and replacing light masonry or possibly some kind of cast. Say which windows they were. I didn't identify it here. I believe they're identified in the report. And this is just a more details here. There was one condition in the basement. Um look like some water's been has gotten down there and it's flooded. Uh it's caused uh corrosion in the rebar. I guess there wasn't enough cover uh for the wall and it's caused corrosion rebar and some swallowing. Uh so it's weakened. Um you know, we don't really know how this wall is reinforced. So just as kind of belt and suspenders, we came back and uh specified an angle brace here that's

012epoxied into the base of the wall and the slab just to make sure that you know if the wall structural strength is degraded. This provides reinforcing prevent any kind of sliding or failures in the wall. We use that for our county emergency that this type of connection or no that is that based oh so um well if if you're wanting to meet like ICC 500 you're just saying like a hardened area is it at a point where this corrosion or that that spog is going to continue in This is not a viable use for that room or is this repair you're talking about going to prevent stopping that? Yeah. No, this should stop that. Yeah, this should provide this will provide the needed reinforcing just to brace the wall. Um also recommended that the spald

013areas be chipped off, you know, sand blasted and epoxy coated just to prevent future corrosion required. It it's not rated like our storm shelters obviously buildings like that. Back back when we first got here before we had the two buildings that was a room where they said hey this probably your best location. Yeah. And I it's low it's got concrete walls. Yeah. It's just when you say storm shelter my mind goes to ICC 500 which is like a bunker you know concrete lid 250 mph wind speed. Did you identify report maybe somebody else but a way to prevent moisture water from that area in this area in the basement? No, I honestly didn't even know u how it was getting down there. We were just providing Could it be from the like humidity swell because

014I know those walls in the past kind of like they sweat water coming down. Could that be it? It could be. Every time I was down there, it was dry. Um, but with Janney noted in the report, it looked like there were kind of some puddle stains. Okay. So, I don't know, maybe there was a leak of some kind that got down there aggravated the corrosion didn't really get [Music] that building. Yeah. Yeah. One thing we were really we're just looking at is is the lifespan of this building and we really want to go out and see does the public overhaul it. Yeah, I asked Michaela. is the principal with the J and he he said he you know it's he could put like a lifespan to it unfortunately but you know this addresses the

015immediate needs uh you know with the repairs um that the issue that I I would take with it is it once you get termite damage you know it we didn't see damage in other areas but um it doesn't mean that you know it's not there So, and as far as the termite prevention inspection things that it's, you know, we'd hope that somebody could come in and just prevent spread, but uh yeah, I mean this, you know, the other areas, they look good. So, um you know, I think you you can definitely get some more life out of the building with this repair. And then you know you can't really speak to the bill totally unfortunately you know I'm sure it would depend on numbers what it cost to do the replacement as far as value

016decision questions appate I stole coming along out there. He's looking great. [Music] You would like me to leave a copy of these here? Another copy. Just take these J is attached. You need to go back and look at it. Jerry, we're okay. Going over to Fond. Uh Go ahead and go to the status report. They said this today. So, as I'm reading this, we're reading this for the first time. We got it kind of late in the afternoon. Uh they all right. So, construction contingency balances, I'll go over that first. Uh there's 27,734 and then on a contingency balance of 163,515 and that's for the high school and middle school contingency balances. Uh there was 273 or 271,64 and another contingency balance of 66,962. uh total budget was 35,166,660 and uh so far we are

01765% complete uh with 22,912 uh,121. So the things that we saw tonight we walked the the middle school may not necessarily be reflected in this uh report. I keep thinking this is the touch screen. is not working. Uh the science the middle school science lab case work installation is complete. Flooring installation's complete, ceiling tile installation is complete, but you'll see that there's gaps. So, they're going to go back and put that in as they finish up other pieces. Uh toilet partition installations are complete. And then case work um installations are in progress. The high school classrooms and admin area flooring installations are complete. Classroom mill work installations are complete. Science lab case work installations complete. Uh classroom ceiling tile installations are complete. Interior glass installation is in progress. Um high ceiling drywall installation uh is

018in progress. And so that's that foyer area. Um and then some of the cafeteria and then the stage equipment rigging installations are also in progress. And so on this report you can see the pictures there. um you saw what was that the middle school and then there's a picture of the high school stage area. You can see where they're putting the sheetrock in eventually once the lights and the rigging and all the things are put in there. There's actually some wood elements that they'll put up there part of it and so it's going to it's going to turn out really sharp. Just in two or three days I was gone just the last two or three days and come back and seems like a lot of things changed around the two campuses. So very excited

019to see every time you go there's a little bit more done more. So uh we we are on progress to uh be able to take possession of the building and open in August. Um the only concern that we're running into right now for full disclosure is is that our door doors um are supposed to come in. They were pushed back just slightly and so they're coming in a little later than what they would like but they are still supposed to be here in mid July and everything installed. So, we may be moving some furniture in while they're still putting on doors and going back. They're going to be going back and doing a bunch of those items and things as well that month of July. So, just prior to um let's see other things as

020far as the restructuring piece today admin the small office downtown was moved out and I heard it was quite fun for those that were involved. Uh different movers today than what we've had in the past. same company with different members and so they they had quite a day but um I believe everything is moved for the most part we did all right so we'll be setting up over the next two weeks and we'll be opening you know admin is closed for this next week for the 4th of July but in the uh next week July 7th admin will be open all other moves have been made except for the high school move which will be the onetory the oldest one story portion and we'll be moving in those items into the uh new building once

021everything is available for us to move. I believe that's around the July 14th 15th range and new furniture is coming. We actually have a meeting um I want to say it's next Thursday or Thursday to discuss the plan to get the furniture moved and put in place at the new campus. Uh we will have also taking delivery of the new furniture for the cafeteria edition that's not started yet. And so we'll be finding a location to be putting that furniture temporarily in that one story portion of the building until those classrooms. That's that's where we're at so far. We'll go ahead and proceed. Uh, next two option check payments list questions. Next, we've got the budget workshop. here. Yeah, just let me know. All right. So, as some of y'all that have been on the

022board for a couple years know, we usually bring you the budget workshop in July. We're bringing you a little bit of a preview in June this year uh because of the new legislative updates and what we're trying to get accomplished um tonight with the compensation package mainly. And so, uh, what we're going to kind of go over first off for some of the newer board members, uh, just a budget 101 information on what we, uh, do with preparing the budget. And then we'll have our budget considerations for this next school year. And then we'll go over our compensation plan that we're presenting tonight. and then what the preliminary budget numbers are looking like from the templates that we use to come up with our revenues and that sort of thing. So with the budget 101

023uh what we do when determining our budget is if the revenues are going to be sufficient to cover expenses. Um we also are controlling our resources providing transparency into the organization's performance. Uh it's about accountability and uh just motivating managers to achieve budget goals and stay within the budgets that uh are being prepared. Uh the education code 44.02 002 uh is the one that states that the superintendent shall prepare or cause to be prepared a proposed budget covering all proposed expenditures of the district for the following fiscal year. And uh our fiscal year always starts September 1. Uh we're September 1 to August 31st district. The education code uh tells us that we have to propose a budget and it needs to be um adopted on or before August or the proposed budget must be

024prepared on or before August 20th. Proposed budget must be adopted by August 31st. And then we have to post a summary of the budget on the district's website. And then public meetings must be held for the purpose of adopting the budget. We have to put a notice in the newspaper um not earlier than the 30th day but not later than the 10th day before that public meeting where the budget is adopted. The official district budget includes general operating our food service budget and our debt service um funds. And so all that is what needs to be adopted at the fund and function level and that relates to the accounting codes that we use. Um it also we also can approve other budgets um you know with greater detail. Um but those are the three main

025ones that we have to get board approved. Um the adopted budget is also uh handled and submitted through falls submissions. And so that gets double checked from what our audit report says and what um what our audit report says and what our accounting software also is saying. So it all gets put into a fall pink submission. uh the budget must be adopted uh before the tax rate and so usually what we do is in August the regular meeting in August we'll bring to you the we've already had the proposed budget done in July and we'll bring you the budget for adoption in August and then we'll also have y'all adopt that tax rate and speaking of that this year if you know the Vader comes into play then there will be a timeline that we

026have to move that up a little bit. The FAS rag as we call it FAS SRG is kind of our guideline for accounting structure and accounting codes. And so um the accounting code is a 20 long 20digit long code that um covers the fund the function object code and then we have some local option codes that can designate different um account codes. our fiscal year program intent codes which designate different you know programs like special programs uh or extracurricular that sort of thing um and then category codes that we can also locally define so the main uh part of our accounting code is that first three digits is the fund code and so for instance I said we have the general fund the child nutrition and then the debt service. So the general fund is

027199. So anything under that code, that's all our maintenance and operation budget. And then 240 would be our child nutrition code. So everything under 240 is child nutrition budget. And then 599 for the debt service. And then the next most important two numbers is those following two digits and those are the function codes. And that relates to what you see on the screen there with all the different um you know kind of breakdowns of instruction, your instructional resources and media curriculum. Um 33 the health services. You got your extracurricular activities and then 41 is general administration. So central admin codes there. And then this slide is just kind of to tell you how the funding of school districts work um with property taxes and the state aid. So we have your our local revenue from

028property taxes is determined by our property values that we get from the appraisal district and then it also is determined by the tax rate that is set by the board. Um, TEA um, does a lot of compressing to the M side of the rate right now. That's kind of their model. And so we don't really get control that much over what that compressed rate is going to be other than uh what you'll hear about later tonight is those Vader pennies. Um there's also the five uh pennies that you y'all already approved and adopted um that didn't need voter action. So those are already in place on top of the compressed rate. And then uh you have your interest in syncing tax rate which is only usable for paying off debt. On the state side, they

029have uh some different formulas in which they um provide their share of the the revenue for school districts. And so that's influenced by enrollment, your average daily attendance, special populations. So, um, what a lot of people don't know is that it's not just the average daily attendance that is driving it, but it's the weighted average daily attendance. So, all the different special, uh, populations that we have, you know, like your bilingual, your economically disadvantaged, uh, special education codes, that all gets a higher weight. And so it's not necessarily just based on our enrollment, but that affects the formula with each one of those special pops. Um and then the enrichment pennies with the Vader also comes into play because the state pays the state pays in their formulas um you know for those golden pennies

030that we call them and then the copper pennies that have a smaller yield but they still kick in a little extra. And then the basic aotment, you can see it did get increased by $55 this most recent legislative session. So it's something it's not a lot, but it's more than what they've done since 2019. So now for our budget considerations for this year, some of the things we are looking at the impact of the legislative session and what that teacher retention aotment that they included is going to um do our salary schedule. So can you speak to a little bit to what that is? Yeah. So that teacher retention aotment that they included, they're giving us funds to raise our teacher salary schedule, which is only going to be for teachers of record. So that

031means they have to be coded in our system as having students, a classroom of students. So what that, you know, excludes is certain teachers that might be doing just pull outs. They might not have a regular class. They might just be doing pull outs for different lessons and that sort of thing. Diagnosticians are not included in that. Um librarians, nurses, all those other positions that we base their salary on the teacher salary schedule, but they're not going to be included in the funding for this um retention aotment. And so what it's but what it is doing for those teachers of record is anyone that has three to four years of experience would get a $4,000 increase. And this is due to our um enrollment size too cuz we're under 5,000 enrolled. And then any teachers

0325 years or more experience will get an $8,000 increase. And so the state is pushing that funding to the district via that method. And then like I said, we have the $55 basic a lotment increase which is not really doing much for us to kind of touch all the other positions that will need a you know increased pay increase. um student enrollment and attendance. We have to look at that because like I said, we the state funds us based on those weighted averages. Um and then increased property values. Uh the new $140,000 homestead exemption that the state introduced um that still has to go to a vote in November, but we all know like that will pass. And so we always go ahead and just we'll plan for the budget as if it has passed.

033Maximum compressed rate um kind of like what I discussed TEA will compress our rate for the M side of the tax rate and then recruitment and retention of teachers inflation of costs safety and security standards and you know still looking at the impact of the reduction in that SH funding. We discussed that a lot last year and this year it's still lacking. They're still holding back that funding and requiring new rules that you know we're basically getting our hands tied uh with that charge funding. And these were our budget goals to preserve and improve quality of instruction and services, retain and recruit quality staff, and continuous improvement of safety, technology, and operations. These are just what we're estimating right now. So, like I was saying, like this is still very preliminary and, you know, fluid.

034So, but this is so far what we're seeing. Um, our 2025 estimate of value at this current point in time from the chief appraisers's office, $753,615,740. [Music] Um, I was looking at the template, uh, the funding template using a ADA of 1111, which is what we ended at this year, just to be on the conservative side. and um you know see where we kind of shake out there. 140,000 our total be what's that? What do you think our total estimated revenues would be? I'm sorry you said the ADA went with the ADA. I thought you had our total got there. Uh we have to look at the $140,000 homestead exemption and then on top of that there is an additional increase to the 65 and over adjusted freeze. So that plays a part um that

035maximum compressed tax rate which is actually different on the slide. It's wrong on the slide here. um after playing with the template even just recently um that's going to be compressed further. So it won't be 66. It won't be okay. Yeah, it'll be lower um probably by about 3 cents almost. And then total 2425 estimated state funding from what the template was saying, which again this is still very early and fluid. Um, I don't know that that is going to stay where it is with all the different numbers we're getting from the appraisal office and all that, but I was getting 10,569,252. And then we're estimating char is low just because of like I said those rules that have been playing a part. [Music] So here is a look at this is our current year

036revenue and expenditures just kind of see where we're at. And this is an estimate because we still have three months of expenditures to kind of finish out the year. Um, but kind of where I'm leaning towards us landing is basically a difference of $1.1 million under our revenue or over our revenue, I guess I should say. And so a lot of that has to do with uh the portable that we're bringing in and different fund balance expenditures that we're also hoping to reimburse ourselves from for the maintenance tax note. So that's later on in the discussions. So reimburseable items through a maintenance tax note will help us kind of recoup a lot of that. And then some other actions we are, you know, trying to do to reduce the shortfall is holding 10% reserves on

037most supply travel accounts. I mean, it's not really a lot whenever you How much is that? How much is that? It's maybe roughly about 80 to 90,000. Yeah, it's not a lot, but I mean cuz when your payroll makes up 76% of your budget, you don't really have a lot on the supply side. And again, these are just estimated figures for year end. This is kind of just a look at our fund balance history. Uh you can see 23 24 year we um began with a fund balance of small. We began with a fund balance of 4,62844. We did end up putting a little bit back into fund balance last year and so that brought that fund balance up to about 4.9 million. And so we're hoping that, you know, with reimbursing ourselves from the

038maintenance tax note um that we won't have to take a huge hit to that fund balance, but we likely will be decreasing there this year. remind us just what is what do we want in the fund balance? What is the balance we want to keep? We generally would like to keep 3 months of operating expenditures. And I mean, when you look at just payroll by itself, that's roughly $800,000 a month. So, I mean, yeah, it gets a little tight when we're looking at the fund balance. That's where I was going. Yeah. You got the money in there. You got to keep a certain amount as well, right? As dipping in the F1 balance. It's not It's not an FU balance. Yeah. Right. Uh so then moving on to our compensation plan that we're bringing to

039you tonight. So, due to the increased funding from the 89th legislative session for the teachers, we're proposing an updated teacher salary schedule that would provide $1,800 increase to the starting step. So we were at 47,000 increasing that starting step to 488 and then uh adjustments to the three and fouryear experienced teachers by 4,000 and then the 8,000 for those with five plus years experience. And so that basically would just do what the state is requiring us with that teacher retention aotment and then a 2% increase to all other staff. And then we did have to make some localized equity adjustments to select administrative roles just because of how much that that big of a raise for some teachers would make it inequitable to you know their superiors and that sort of thing. And so that

040total estimated proposed increase would cost roughly 700,000. And that number is also changing fluidly as we get new applicants and fill new positions with teachers. You know, we have a lot of placeholders right now. And so depending on their experience when they're coming in, that kind of fluctuates here and there. And so this is just kind of a snapshot of that teacher salary schedule. And I have copies of the entire schedule for y'all. And sorry that it's small, but And so what you can see is that you know from that step three four that's where you get your $4,000 increase and then the step five and beyond is where you get the $8,000 increase. And that's basically how we've realigned the salary schedule to fit in those increases from the state. So we having to

041do two different schedules, one for the teachers with kids and one for the teachers without or we just going to wrap them all into one. Well, so yeah, that's what we'll have to do is basically separate out those other positions on a separate scale. Yeah. So, how many educators that are not in front of students is that leave out? Yes. How many how many educators without students that this is not covered in this house like your RTI? But we've got a couple a few diagnosticians. Um RTI, speech therapy. Um so there's two in that. So we're probably looking at at least 10. Um there's our nurses are currently on the teacher salary schedule. So there's two of those. um our counselors were on there, but we were able with just having one um remaining and

042we replacing the other ones, we were able to move them off of that scale. Yeah. So, they're part of the locally adjusted scales. So, those would be on the 2%. So, we're just good. They're currently on the teacher salary schedule. So, the right thing to do by them is to leave them on the teacher salary schedule for the 2526 school year and then to move them off at a later date is the way I'm not I'm not following you. So, they would you had more to report on this as far as salary. So, I mean you had the like the diag. Yeah. the diagnosticians, the speech language pathologist, and those are in the teacher salary schedule raises because they were already on the teacher salary schedule and so we we left them there. Um, in

043the future, we would like to move them off of that salary schedule though. Into what? Into their own separate job category. Yes. to their own elected cabin. I just wanted to make sure that they weren't getting left out and it wasn't clear to No, they are not being left out. They were on the salary schedule. So, the right thing to do would be to to give them that increase. Okay. But that's what I thought too. That's the way we built that. But the flip side of it is we're not getting the funding from the state. So Josh, to be clear, yeah, anyone that's on a teacher salary scale will get the same rate. They will still be on the teacher salary scale, but only that's how our river 90% of it's funded by the state.

044It's just those different ones that are not coded as a teacher with students, we're not going to get that extra funding to fund it. We're going to have to come up with them. So that 10 12 whatever it may be, right? We're looking at 40 to 80 grand. And what is the 2%? That's just for So 2% is basically anyone that's not on the teacher scale like your parents, librarians that it would include all of them that aren't on. So maintenance as well. Question. What what is the 2% of those folks cost us? like how much is that number? So, I don't have that. Sorry, you don't have that. I don't have that like specific piece of the increase. Um, she might be able to pull it up, but um what that's going to be

045right now is looking at the template. We're finding that there may be additional funds for us to be able to increase that more. um because we just got that template within the last couple days. We weren't, hey, let's just jump out there just yet. Let's make sure we get the number right before we come back. So, our expectations, we're not we're not making this decision cuz we would like to make the decision as far as at least this piece for now, but if we we're able to add more to our ad to you guys. Yeah. So what this would do by approving this now is help us in you know doing the hiring process over this summer you know so that way we can quote the new coming teachers and stuff on the new scales

046that you know we are having built um and that helps you know them kind of weigh the options of because I mean we're going to be getting a bigger increase for those 5year plus teachers than say a meloian because they're over the $5,000 or 5,000 student enrollment and so they're not going to get as much of an increase over in those bigger districts and and the other side of that is it's not we were trying to pick winners and losers of this. We had the state did that for us. They they said, "Hey, here's who's going to get what. We just we're trying to back everybody else making sure that everyone thinks [Music] also remember that we passed in our prior budget that's built in. We passed the uh retention stop and the signing bonuses

047as far as the teachers who came in retention and those kind of things. So there's some things that were already built in. Yes, the insurance $400 a month that we would pay and that kind of stuff. So, we've got some things already built in, but we want to make sure that we refine our numbers and come back in July and see that we can track. But up until literally a couple days ago, it looked like that was about as good as it was going to get for us. And as the template gets more and more revised and and what the reason why this takes time is is because all this law has just recently been passed and so they're finding little issues with you know they're cleaning up those pieces and so that's it just

048takes time. This is part of that process. Josh, can you go back a slide? Yeah, that one. So of that 702 88353 how much of that is subsidized by the state and how much of this is actually affecting our So from my template you know I was pulling who all is coded in our system as a teacher record we have roughly 9 to I would say 9 to 10 that are teachers with the 3 to four year experience and then around 62 to 65 five teachers with five years experience and my number was coming up around $540,000ish dollar from the state for that increase that they're wanting us to do. And so that would leave us, you see, with another 160. Cool. Thank you. If we talk about this again next month, I would love

049to know kind of like what that 2% like how much that cost us if it's more or less just how much it is. I I've got it for you right here. It's it's roughly the 290,000. 290,000. So the 2% increase for the the non-teers will be about 290,000. That's a fact. That's everybody that's not in 11. So, well, I guess there's a few people in 111, so it's probably closer to Thank you. That was insane. It's probably closer to 300,000 because there are a few people um cars that are recruited in that teacher function that we have to split off. So, it's probably closer to 300,000. Thank you. So, finish. No, you're good. Yeah. Uh going on to the where I'm kind of seeing our revenues and expenditures for the next school year on the

050revenue side uh with tax collections. And then, you know, we also include things like interest uh that we get from our bank accounts and um the monies coming in. And then just other local revenues such as like football and basketball athletic games, tickets and stuff like that. I'm calculating 5 million, $5.89 and $47. And then the state would kick in roughly $10 million there. And then like I said, just estimating a low number on the federal for the shards program um just until we can determine that we are going to be able to move that back up. Um so that gets us a revenue side of 15.6 million and then with our expenditures with what potential increases this would do to our payroll being 12.2 2 million and then all the other budget items that

051we need for maintenance and operations within the district, supplies being at 3.7 million. That would put our total budget for 15.9 million, which you know you can see as a difference of roughly three 300,000. Weed up to 149 last year. Yeah. Our expenditure budget was 14 I believe 14. No, our expenditure side was just over 15 million. The revenue was 14. The revenue was 14. We had a deficit of 511,000 I believe is what was approved. So if you look at the federal side of this though and those school districts that are title one funded that get a lot of extra money and those kind of things there are concerns with the federal government cutting some of those things and reducing those because we don't depend a lot on federal funding. We're in a lot

052better shape as far as that part of it. So that that's a good good thing for us in that that side of it. And what we do get typically is a little more than that, but we try to estimate the low. But I say that, but here lately, not right. Where I'm looking at ending with our SHs funding this year, I would say is going to be about 30,000 and we budgeted 85. Any questions? This is a open hearing. Anybody has any questions? try to answer. You have any questions? So, talking like we're going through your template and maybe appraisal district and lime, are they saying that because we're talking about the the mayor in this this session too, is it an offset from the or deficit collections? like the compressed the increase in homesteads

053the 140 are 65 and older increasing in their tax deferments versus our collections um is so yeah that's going to mean that you know our collections will likely go down with those uh homestead exemption increases. Um but so what you know should happen is that triggers the state to kick in more on their side because they have a required amount of how much you know a school district is supposed to be funded at. And so in the perfect world the state kicks in more when your property collections go down. That's what I think the lady old harmless piece and there's going to be some variables with that especially with that 65 and older piece and then 140. It also impacts your bonding capacity in the future and those kind of things about that. Anything else?

054And this was based off of an ADA of 1111 which was very conservative, right? Yeah. What was our average ADA? I guess is there a way to Well, so we ended last year at 1111. Um, we've been budgeting the past couple years at 1130 with our enrollment being just above 1,200. Uh, 1207 is usually where we've started the years at. Our enrollment ended at 1173 this year and our average for the whole school year was 1111. So that's why I just kept that there at 11-11. But yeah, we can model some different ADAs as well. No, I was just curious. I was thinking that was conservative. Yeah. And that ADA piece, like when you budget higher ADAs in the template, it's not really driving a whole lot of additional funding. It's just I I thought

055we ended at 1118 1119 last year. Am I wrong on that? We ended last year at 11:22. Yeah. [Music] So really if we take out the positions that were added the instructional coach and the librarian and the curriculum director then that would affect that 2% number. So the two the raises of 2% would only be about 15 for the remaining staff. As you're saying it was that those positions weren't filled. Those positions are new positions for the 25 26 school year. So they are going to be in that that number. Yeah, that number. And so really the race for the the 2% raise for the remainder of the staff is only about 15,000. Sorry, I just thought of that while you guys were All right. Say 150 or 115. 150. It's hard to hear in

056this room, right? Yeah, it's really hard. It's not on right now, but the air handler. Yeah, this is right above me. So, that's why I kept having to move over. I can't hear. We're going to get you a microphone. We got one. Am I Are y'all able to hear me? [Music] All right. Um, any other questions? We'll go ahead and close the discussion action. All right. Uh consider the 2526 compensation package. So we have to adopt two budgets, right? We decided that you can do can just adopt a budget with the understanding that whatever the mayor comes in the first year you would come back and adopt you would do an amendment budget of what you would do as far as not salaries but like typically what they do is they suggest so And this

057compensation piece is not really the budget or anything. It's just kind of the compensation package for payroll. This will help us with our remaining hiring that we need to do. Yeah. And we can always make changes. Got your calendar up there. But I'm going to team him in, but I need to take notes, too. So, so we're we're on the consider 2526 compensation package. Uh can you give us the total of what that is? Yeah, it was that estimated 702. Yeah, I recommend that we approve the 2526 compensation package as presented. So second discussion questions. All right. All in favor? Next, we have a virtual presentation by John Walt. This is in regard to the Vader. Hey, John. Can you hear me? Is there a way to get him through the speakers? Just second, John.

058I don't think my camera's on. Okay, we can hear you. John, can you still hear us? Yes. All right. If you want to go ahead and just if you just want to share your screen with the PowerPoint, the board can hear you and they're ready. All right. Okay. You want me to start? Uh, yeah. Can you go ahead and share your screen? Okay. Yeah. Okay. Okay. I don't know what what y'all can see see anything yet? No, we're not seeing anything yet. Have you made me presenter? Yeah, you should be able to click the share button next to leave. Yeah, there should be a share button next to the leave. The big red leave button. Yeah. Okay. And then it should bring up a window where you can just select your power. It's coming. It

059just takes a little while. Yeah, I think keeps you not seen anything yet? No, sir. I saw you a second ago. Do you see me now? I see you. Okay, there should be at the top of top right share. And then you can select your PowerPoint if you have that open already. I do. All right, we're going to we're going to take a five minute break. Let you guys kind of work on it, figure it out. That way there's not a bunch of people watching. Have you seen it yet? Notice it. Five minute break. No, I haven't seen it. All right. Okay. Good evening, Nick Pearl, board of trustees, superintendent, and other attendees at this board meeting. Um, my name is John Walsh, and I've been helping districts uh with TR for a long time,

060and I I visited with uh Mr. Bowling and Mr. Boon. And in order for you to to get to see what uh what your opportunities are for generating additional funding, I put together this PowerPoint. And there are four ways to generate additional funds for a school district. We're funded on a per student basis. So, increasing your average daily attendance and your weighted average daily attendance. And what that means is uh getting kids to come to school, uh have perfect attendance, uh having kids who uh need additional services, get served through the proper program. Some kids are more Mr. W. Yes, sir. Hey, can you can you go down to the bottom of your screen and hit the presentation button again? Um, and we're not seeing all your slides. We're just we're seeing your slides. We're

061just not seeing the one you're discussing. Okay. All right. Sharing a window. So, you're just going to hit present down at the bottom. I don't see present. It looks like I just like a screen there. Where did it say present? It It doesn't say present, but there's just a button at the bottom. Looks like a screen, like a pull down screen. You remember those? It's the one right Yeah. There we go. Right there. Right there. Yes, sir. You'll click on that. It should go to present mode and be bringing it up on a different window. I think it's shared that window. I think it's on a different window. Come here. I am um It's not Is there another one here? Can you just hit um stop share for one second? Yeah. Okay. I have to

062put this down. Okay, I just hit stop share. Okay. Um, go ahead and start your PowerPoint and then you're going to try and start um you're going to share the window of the actual PowerPoint that's going the window. It didn't give me a choice to pick it. So, I'll hit share again and new window and One other thing you could do is to just share the Yeah, you just shared the team window. And so one thing you could do is to stop that share. share the window of your PowerPoint and just don't go to the full screen presentation. Just go through the slides um using Okay. Does that make sense? Yeah. Okay. Like this. Can you see that? Now you got to share the wind that window of the PowerPoint presentation. Okay. I got put

063it down to find the perfect maybe if I just do that. Okay. So, I'm going to hit share again and hit window. Select pick the PowerPoint and say share. Yeah. I think you selected the wrong window cuz that's the teams. Well, I think I can stay down. No, you only have you shared a window. So, if you close that window, you're not sharing. So, if you just stop that share. Okay. Stop sharing again. Yep. Hey, now hit share and then window and then select PowerPoint. Well, it's asking me to enter my name again. I'm going to do that. Should I I don't know why you would need to do that. That's interesting. Well, it's asking me to join again. So, I'll I'll close that screen out. You got to close everything out. Yeah, just don't

064leave the meeting. But then, um, click share and then click window. I don't see the Teams meeting icon anymore. Yeah. Not you minimized teams in your browser. So you should be able to click on your browser and bring that back up. What I'm saying is the teams icon is not there anymore. So it was trying to We'll go on. You know, there's something else I could do. I could email you the PowerPoint. Okay. Yeah, we can talk through it while y'all go through it. Yeah, if you'll do that, then that would be great. Okay. All right. All right. So, now what? Do y'all want to move on? You can do that real quick. [Music] So, we'll go to the next um item while they're working on that piece. Um this is for the M maintenance

065tax. These are items working on the district. Remember the maintenance tax note? There was two options that we had. We had a uh time warrant or a making tax note, the making tax note piece uh in order for us to put that out of you know they will put that out just kind of like a bond so to speak is a note that is made through our M side of our budget. That's part of what when he's showing those numbers his payments built into that payment or that that number or has a number built in. Um but what we had um put aside here is for several of the things that we've already done so that we can recoup those dollars uh back into our budget. But then there's several there's some items that have

066yet to be done. uh two of which would be the elevator uh retrofit at the high school and elevator retrofit LSK both which are aging and the equipment uh parts and the materials are it's it's such that it's time uh because they're from what I'm told they cannot no longer find some of those parts so it's time to retrofit those those elevators uh so that we have those fully operational some of the other items have been things that we've approved from fund balance items and then other items have been things that we have done as far as repairs and whatnot moving forward. Um you'll notice down here at the bottom where it talks about the structural design that was the fee for the uh structural design that's not the actual replacement cost. Um and then

067uh there was the LSK sound system in LPA which that was not part of the bond adding certain items so that we would be prepared for the new portable and then other things were some of the technology upgrades and those kind of pieces. So, um, and uh, item B, it says considering adopting a reimbursement resolution concerning the maintenance tax note to be brought in July. And so, um, I can go into that document, read that to you real quick. The resolution basically says that we would be able to reimburse ourselves Um it says resolution declaring expectations to reimburse expenditures with proceeds of future debt. Whereas the Maple and Pent School District intends to issue the project listed exhibit Attached here two and further intends to make certain capital expenditures with respect to the projects and

068current desires that expect us to reimburse the capital expenditures with proceeds from such debt. Whereas under the I believe that's treasury regul regulations say 1 uh 150-2. Uh this to fund such reimbursement uh with proceeds of tax exempt obligations, the district must declare its uh expectation to make such a reimbursement. And whereas the district desires to preserve its ability to reimburse the capital expenditures with proceeds of taxes and obligations. Uh now therefore be it resolved by the board of trustees uh that the district reasonably expects to reimburse capital expenditures with respect to the projects uh with proceeds of debt hereafter to be incurred by the district and that the resolution shall constitute an declaration of official intent under that regulation that the maximum principal amount of obligation expected to be issued for the projects is

0691.1 million. That's just a number that they put in there to cover any possible expenditures we want to reimburse for. It doesn't mean that we have to go for a 1.1 million fees or whatever. Passed and approved on this day, 26th day of June 20, sorry, 26th day of June, 2025. So, all we're asking to is go ahead and pass the reimbursement resolution. We can go back. I think it's a maximum is it 60 days or 90 days? 60 days. 60 days. And re recoup some of those things that we put into our fund balance piece. Remember that we have a M that's already built into our budget from the prior year that was paid off this year. Maybe you're doing some of those big ticket items that we wouldn't have to hit our fund

070balance for. Obviously, if we did this for a 10-year note, but it also leaves us the option for that time warrant piece. If we ever so choose, you could go out for an additional 1 million. The time warrant allows you to do things, not necessarily capital improvement, although it can be most purchasing new items such as the portable building. I recommend that you approve the resolution as presented. So I think we talked about this last meeting Josh about we have to get this approved prior to realizing the debt pay those debts to reimburse it. Say that again. So, we have to get this approved prior to any of these things actually realizing those debts or can we reimburse them in fund balance after we paid? No. Yeah, we can reimburse like with this resolution that's

071what we're kind of doing is anything that we've kind of already approved and done. It can reimburse us for that 60 days, right? Within 60 days of this. And so when the note is basically done in July, we bring that to you tax that funded forward as far as on the terms from our previous one to this one interest. Is there a big jump on that? No payment. It's not a big jump. uh we were at like 135 I would say 136,000 this year on our note that we're paying off and then this is going to be roughly 140 to 150 and they'll mark it goes out to market as far as the interest So that you just need a motion discussion. Make a motion to approve resolution. Second discussion. Any questions? Discussions. You got

072questions here. So obviously we're paying off the other loan. This is a new loan we're taking on and that full 1.1 million loan was built into the actual budget you presented a second ago. I'm sorry. Payments on the $1.1 million of debt was built into what you presented to us, right? Yeah. All in favor? Okay. The next piece would be and we really move forward come back is the consider proposals for an efficiency audit uh for evaders. Um and that piece basically there are two auditors that have given us present amounts. We have one that is from Casey and we have the other one from Whitley K. They both are um firms that have done these for different school districts. I believe if you go out and look at the list, I think he was

073saying about a third of them was from the end Casey did a good portion of the others and there was just a mixture of other auditors that did the work. So, as far as being able to do the work, uh I believe either one is capable. Um you do one at one time audit. It's all required by law. And then whether you guys decide to do a Vader or not, then the Vader uh you can use it for if you decide to do one this year, you would use it. If not, you can use it for a future Ver down the road. So, it's a process that requires a lot of data. That's basically public record type data, those kind of things. There'll be some things really asking some questions to get to fill in

074the gaps and they'll they'll also answer our other financial data that Josh puts here. If you look at both of those, the the dollar amounts uh the Whitley Kent agreement if I'm numbering correctly is 16,820 and Casey amount is for 19,000 19,000 Okay. So, so there could be some additional fees and things that are cost with that. My understanding with that's our recommendation at this time is feel like either one of them if we're wishing to go forward with an audit then we would just go with the Whitney P option since they have done this work. So we depend just to straight up here's what we're going to charge lab 375 an hour for this.7 we got to travel $1,500 for virtual presentation 3 that's now we did ask our other auditors that do our

075typical audit and they don't do these kind of audits they with this. There's only a few companies that do this for the state. I recommend the Whitley pen audit or the efficiency audit, excuse me. Make a motion to move forward with the Whley Woodley Mud. Any more discussion? Question. All right. All in favor? All right. John, can you hear us? All right. Can you say something real quick? Hold on. We're having issues on volume on our end now. All right. Can you hear us now? Yes. Okay. There we go. All right. We are ready to go. Okay. You just let me know when you want to switch slides and I'll be your operator. Okay. Are you seeing your PowerPoint up there? Yeah. Okay. The first slide make you've already covered that. So, I was talking

076about the four ways. You get more kids, you get more taxable value, you increase local tax collections. Your tax collection rate is over 99%. So, you're doing a great job there. And the last thing, you don't really have much control over how many students you have or or what special needs they have. You don't have really much control unless you're such a outstanding school district. If people choose to move to make to have their kids go to your school doing a great job with tax collections, the only thing left to do is to raise the tax rates. If you've done steps to do the first three things, the last option is forward. It's the only way to generate additional money uh left. So uh so the way is to raise the only way to raise

077the tax rate is to uh is to do a vader understanding the voter approval tax election. Okay, next slide. And I've been doing this since 2006. I was one I did seven districts. There were only 15 trying it and uh 14 districts passed out of the 15 and I helped seven. So I did 50% of all the states TRE the first year. The last 19 years I assisted 196 ISDs with your TRE and 186 have been successful for a 95% success rate. Uh I I've been doing it for uh 20 years. I took one year off to have a kidney transplant. And I am the most experienced, most successful TR consultant in Texas. Next slide. You have an opportunity to generate an additional million dollars without increasing the tax rate. Next slide. Uh this is

078what it looks like with the actual rates this current year the 2425 school year. Your M rate was 6669. Your INS rate was 30 97 almost 31 cents. And your total tax rate was 9766. And u this is a uh confusing time for districts when the legislature makes significant changes to taxation and the school finance system. uh things change and right now uh it looks like the adopting a tax rate essentially three pennies more 3.01 pennies more than your current rate would generate the million dollars. uh the state has put additional money to reduce tax rates statewide and therefore uh they reduced the uh tax rate required to receive the foundation amount. It's called the MCR. The state looks at your values and sets it. Uh but if this this example and you can do

079any number of pennies uh that you feel uh will help the district and that uh to provide the information to the public that uh it's got a chance of being approved. And I reduced the debt rate uh three pennies so that there's not a tax increase. you're more likely to approve a tax increase if the taxes don't go up. The key thing here is the state gives very little money to school districts for the interest rate which pays for bonded debt on buildings. Uh, so you get very little state money for the debt pennies and you get significantly more money for the ML pennies, the maintenance and operation pennies. So by just doing that, you can make a million more dollars. Okay, next slide. And it's actually the voters who increase the tax rate. You

080shouldn't feel like uh the burden is on you to uh increase the tax rate. All you can do is adopt a tax rate that makes sense to you and then ask the voters to approve it. If the voters approve it, you get to keep it. But uh you only have the power to give the voters the opportunity to generate the additional funding. So the rate we're proposing is is the same as last year's rate and all varies in the state varsity calling them uh are held uh in the November uniform election date which this year is going to be November 4th. Okay, next slide. If you don't do this, uh, if you don't adopt that M rate, the voters will not have opportunity to generate the additional funds. The million dollars is left on the

081table in Austin, Texas at a time it's needed. Voters can choose to bring it to May or leave it on the table in Austin and let other ISDs claim. Okay? And that opportunity to generate additional funds occurs right now. We can generate that million dollars by increasing the M rate from uh the current rate of 6669 I got too many sixes there uh to 6970 an increase of a little more than three pennies. Uh make will have an M rate that is 78 12 cents lower than its 2005 rate when it was 1475. So we're not giving up the compression that a significant amount of compression is still benefiting the taxpayers of April. Okay, next slide. Opportunity to reduce your debt rate occurs. Now a current law allows school districts to use INS fund balance

082to pay debt. your overall economic status is improved by adding a million and therefore it's not uh a bad economic move to use fund balance is necessary. Uh we can reduce our debt rating by 3 cents by using fund balance is necessary as part of debt payments. This time we uh we think it may not even be necessary to use any fund balance. Uh at this time both the state TEA and the local tax assessor collector are trying to understand this law and uh and get the numbers. The numbers are going to change up until certification. So these numbers are not in stone. If as we get additional data and information about the tax role, about the interpretation of the law, then these numbers will probably change, but they're in the ballpark. Uh accessing the

083these are the best enrichment pennies ever provided by the state. the the May pearl penny generates if you tax one penny on the tax roll, the state says it should produce $82,481. That's your that's the uh that's how the state delivers the money. You pay part of it and the state pays part of it. And they're, you know, with the appraisal district, they uh they encourage the appraisal district to appraise all properties at market and with all the appropriate exemptions. Now, the first eight pennies above the compressed rate, compressed rate is the rate that everybody pays and that it provides them a basic education, which we call the foundation program. Everybody gets that. uh the first eight pennies and you have five of them right now. They give you five pennies without an election. So

084there's three of these real good pennies. Each one of those would give May Pearl students access to 254,000. In other words, our penny earns 82,000. And these first eight pennies above, of which you have five, you're lacking three. Each one of them produces 254. So you can see that uh there's an incentive to go after these pennies because it's a great uh it's a great value for the district. Now each of the next nine pennies uh and uh above that is a different it's level two and they just provide 97,000. Well, that's about 14 or 15,000 more than your penny produces, and that's not a bad deal. And all these six additional pennies would provide 115 state dollars for every 100 mural ISD that comes from these additional pennies for a total of a million

085dollars. That's local and state money. Um, this is another way of looking at this. the state will give us $115. We're raising $100. We now have $215 to spend on the education of our children. In other words, uh it's an average yield. That 115 is the average of uh the yield from the high that's 254 and 97. You take three of these, we'll get three of the 254s and we'll get three of the 97s. They're all better than our local B. Next slide. And this is how it works. The state has a guarantee per student and they guarantee almost first eight pennies each one of them each kid in weighted ADA. Now your ADA is around 11, 1100, but your watt is almost 2,000. Okay, it's 1966. So how much money are they going to

086give you for these level one pennies? You multiply 1966 2,000 * 129. Well, 129 * 2 would be around 260. And you can see that it it if they promise you that penny will generate 254,000. Now have to tax that penny and it's 82,000. But they have to give you if you if you approve these pennies and you you tax them, they have to give you $172,000 for every penny you raise. Now I call that the state share uh yield on investing a penny with the state. So, we're investing 82,000 with the state for each one of these pennies. And for each penny, they have to give us $172,000. Now, nobody else in the school finance uh talks about return on investment. Uh how much money are we investing with the state? We're investing one

087of these. Now, what it what is it? How much money are we investing with the state? 82,000, right? And how much did they give? They give $172. Well, the way you calculate return on investment is you divide what you make from an investment by the amount of the investment. For example, if I invested $100 in a savings account, they pay 5%, at the end of one year, they keep my $100 and they give me $5. So, I now have $105. The return on investment is what I made from the investment. In that case, $5. And the amount I invested was 100. Look here. I'm investing 82 and it's 172. Well, 80 * 2 is 160. That's more than 200%. Where can you invest money and get guaranteed 280% return on investment? What this means is

088for every $100 uh uh we raise with these golden pennies, the state gives us $28.79 and we now have $38.79 to spend on the education of our children and only cost us $100 in local revenue. That's a sweet investment deal. I'd love to get that on on my teacher retirement uh or some IAS or or annuities or whatever you have. I'm sure you would too. But the state, here's what the state has to accomplish with these pennies. They have to provide a kid in any school district in the state the same quality education that every other school district has. So, this is the way can take advantage of that guarantee. and uh neighbor students are supposed to have that access to the same funds that places like uh Highland Park or Alamo Heights or Deer

089Park have and this is the way you get there. Now the uh next slide. The next pennies at one time they were called copper pennies. They're now called little two pennies. Has a much lower guarantee. But your penny only generates around $40. So you make something. You multiply that out and it's 97 7 almost 98,000. You put in your 82 and it's a little over 15,000 is what you get. Well, you're making 15 thou,000 on an investment of 82,000. That's that's 18.5%. That's still, you know, I would love to get 18 1.5% on any investment, any CD that I had, but but the taxpayers of Mural ISD can make this return only to benefit the children attending the schools of Mural ISD. So that's one of the best investments they can make, bar none. Especially

090to ensure the uh the future, you know, when you get old like me and retire, you're depending on the people that are uh working. Hope they had a good education and are making lots of money so they can support me in my retirement. Okay, next slide. This is what it looks like in a bar graph. The the green represents what your penny generates. And for the next three pennies in model one, you've got five without an election, but there's three left. Well, that's an investment that produces 209% return on investment. And you can see the green, you could stack up two greens and still have a little bit of room in the yellow. The the green is local money and the yellow is gold is state money. So you're making 254,000. You're putting your 82,000

091in there and they're giving you the 172,000 with a return on investment of 290%. The next pennies are they don't they don't compare to level one, but it's a way to get some additional state money. They only provide around a 19% yield and they kick you up from 82 to almost 98. Okay. And then what I did with this last one is I took three of the level one pennies and three of the level two pennies. You can see that uh 254 in 97 that's about 254 uh it's about 300,000 350,000 divide by two it's 176,000. So that's what if all six pennies were the same this is what the yield would be. So basically the the rich pennies subsidize the poor pennies and the average is 114%. So I I think that's a real

092important slide. These are great investments right now CDs and so on. You're lucky to get a 5% return. Your level one pennies produce a return of 209. your level two pennies. Uh it's not 209, but it beats normal yields, 19%. And there are a few investments a person can make that will provide any comparable ROI with the state providing guarantee. There's no risk here. The state in the 20 years of this funding system, the state has never not paid. They always paid and that's they have been no exceptions. U tax pennies they provide guarantee. Okay, next slide. Now with this million, these are you have to you have to be able to tell uh the voters why you need the money and what you're going to do with it. So these are uh statements that

093other districts have made. Maybe some of them apply in your case is that you you want to is this is really your slide to me. Maintain improve high quality instructional programs. Improve salary and benefits for all staff in order to attract and retain highly qualified staff. Improve safety and security for students and staff. and then maintain technology and uh upgrade technology and uh quality facilities. So you could use those, you could add others or take some of these out. It's your choice. Next slide. People are always going to ask, well, what's it going to cost me? And uh every year we uh when we set the tax rate we have to adopt the budget then we adopt the tax rate and we have to publish a notice and wait at least 10 days before we

094can hold that public meeting at which we can adopt the budget adopt the tax rate and so on. So, uh, last year in 2425, this was what was in the notice in the paper. Uh, the average home was 437. The taxable, uh, value was, uh, 324. So, it was more than $100,000 lower. And that that was your, uh, tax rate. Oh, was it 66 9766? I'm not sure, but but the notice had uh the uh the the amount of taxes required on the average home was 1,172. Now, the proposed rate, we don't have that market value of the home and we don't have the taxable value of the home yet. Although, we know that they've increased the homestead exemption from 100,000 to 140,000. They've increased the over 65 exemption uh from 100,000 to 200,000. Uh

095and at the same rate, we would reduce the same and there would not be a tax change. I expect it to be a decrease. So the voters are going to want to see that slide. One thing we sometimes uh overlook is economic development. When you bring new money into a community, economists say the dollar bounces around in a local economy between four and seven times. So this million dollars could have an economic impact 4 million because when people get extra money like your employees if they got a raise out of this then they what do they do with that money? Do they save it or invest it in their retirement? No. Because of inflation they probably spend it. Well the person they give it to has that money and what do they do? Do they

096save it? They probably have to spend it again. So that money rolls around in the community can have between four and seven times the impact on the economic uh status of the community. Okay. Tax is still frozen on over 65 and disabled homesteads. Uh tax bills on over 65 or disabled homesteads will not go up. They will never go up unless improvements are made in the homestead. The first year the improvements are are taxed at market and then are fro frozen at that level from then on. This year with the increase of $100,000 in the over 65 exemption. I expect uh those those taxes to be refrozen lower for people that are over 65. Okay, next slide. The ballot language is this. People are asked to vote for or against uh ratifying the norm tax

097rate of I think it would be 9766 in the May pearliz for the current year uh rate that will result in an increase of certain percent in maintenance and operations tax revenue. We're not looking at the total system revenue. We're only looking at the local revenue year because these local dollars generate significant state dollars for the district for the current year as compared to the preceding year which is an additional. In other words, what they're comparing here is how much your local taxes were for M last year and the uh well no your total taxes uh compared to this year. No, in M. M in percent in maintenance and operation taxes. It's only looking at the increase in maintenance and operations taxes, but the rate is total rate. Next slide. There are two possible results.

098If a majority vote for that rate, the district will make that 1 million in additional funds uh this year and every year thereafter. And if they vote against that rate, the districts won't won't get that million dollars this year and every year thereafter until they get the voters to approve it. So, u one of the other things you have to do in addition to adopting a budget, setting a tax rate is to adopt an election order which specifies early voting and voting on the day of the election. Uh there's a certain date in August, 78 days before the election day that you have to have that done by. Well, normally you get your certified values at the end of July and you've got some time in early August to take all this action. Uh next

099slide, the ethics commission. Uh we're under some very strict guidelines and some districts have been accused of uh trying to convince people to vote for it or vote against it. We cannot say please vote for it. We cannot say please vote against it. ISDs may not use employee time or ISD funds to encourage voters to vote for it or against it to ratify or not ratify it a vader tax rate. ISDs may provide factual unbiased information to the public about the vader and information related to the employee time industry funds may be used by the district to provide factual information to the public about the vader. So if if you control yourself and don't go into a selling mode uh with the materials that you provide the public then you will not be in trouble

100with the ethics commission. Next slide. So the results of approving this rate would be significant additional dollars. Uh that next one, we don't know what's going to happen to the average residential homestead tax bill at this time. I don't think it's going to increase. Uh there's really uh the tax the total tax rate will not increase. It could lead to significant economic development in the community. And this this is real important. students will benefit from the highest levels of funding ever provided by the state for these pennies. Uh and you will uh maximize state funding for your students. You're taking advantage of the state's responsibility to give the main pearl students an opportunity to have the same quality education any other district in this state can have by using the revenue from these pennies. Go

101ahead. And if you don't approve it, you will not gain that additional it should be a thousand, I'm sorry. Uh I I mean a million in state aid this year. Your students will not benefit from the highest levels of funding and provided by the state and the community and this significant economic development. And what are we trying to do here? Next slide. Uh you have an opportunity to generate an additional million dollars without increasing the tax rate. Uh and the last slide is the reason why this works is the state pay significant additional state dollars for M funds that they don't pay for debt funds. This little uh essentially shifting three pennies from the debt rate to the M rate uh helps us. Okay. The state's reducing the M rate three pennies in. We're reducing

102the debt by three pennies. So that's why we can get six pennies. I'd be happy to answer any questions anybody has. So say it is we're not actually adding any copper pennies. We're just shifting pennies from the INS to the I'm sorry I can't hear you. You would be adding copper pennies. Yeah. So he was Jared was asking if we would be adding copper pennies or just uh shifting shifting. You can add Yeah. Uh three of the pennies would be copper, three would be the golden pennies, and three would be copper, but it averages out to a to a decent yield of 114%. In other words, you get 200% on the uh first three pennies, you get 19% on the next and the average of that is 14 over. it wouldn't necessarily be. So there's

103still six pennies to get if you should run into financial trouble in the future and could convince the voters at that time to but the pennies that remain are these level two pennies and they're they're uh they're that does that does that help? Yeah, I think we got that. Any other questions? Where does his services fit into this? Mr. Cooper was asking what are your services for well process for the what's the process for your services? This okay um I I have a squid fee. I have a base fee to uh I spent two two days putting this stuff together uh trying to project uh based on this law that nobody's certain yet and uh but I provide that to districts because uh you if people don't know what you provide they can't in addition

104to uh this PowerPoint I I provide uh the message and accurate numbers for publication you could distribute and I wrote guide you relative to the ethics commission and then I uh I refine the PowerPoint and either add or take away things that you feel are important in your community and uh I help with planning the election planning uh how to uh how to uh operate during the early voting period and on the other day and uh the message to the voters which leads to the success. In other words, not only do I provide good uh projections and analysis, I've been see I set uh even though I've only helped less than 200 districts, I've set about 300 tax rates and it's just that I'm very very familiar. I've worked with chief appraisers all over the

105state. In fact, I've helped districts in Ellis County. I did Watson. I did uh Italy. I did uh uh Milford. Milford had no votes. When I did Milford, they had no votes against the election. It was for 13 pennies, but then and uh and I've done there's 20 education service centers in the state and I've done in 19 of the 20 off I've held districts. I've done a lot in the in region 10 uh Dallas region 7 uh negative not just in in recent no it's not there but uh all over the state he's also brand new and I also uh can produce a a video it's it's a it uses icons and cartoons figures and and spreadsheets to show people uh how it works in a way that they they can get on your

106website and they can watch this video story. All right. Now, my fee uh between five and 8 is the f the first I'm I'm reviewing my uh structure. I think I've been charging too much. people don't want to use me. So, I'm reacting to the market. Uh, so I I think it's going to be 5,000 and an additional 15 to 20. Uh, so it could be 25,000 only if you win. It's 5,000 if you don't win. Okay? If you don't win, I'll come back the next year without any additional base fee and help you. But if if you win the second year, then uh I would get the uh the contingent card. In other words, you don't pay the full price unless you win. Gotcha. Sounds like we're good. Thanks, John. Thank you. Uh good

107luck with it. Uh and remember, you're in you decide what the rate is whether you get the money. It's I I'll help you. I'll advise you, but these are your decisions. All right, sounds good. Thank you. Thanks. Thank you. That this is our last discussion action item. My recommendation is that we hold off until we get closer to the determination of what we want to do as far as calling a bank, but um we still have time to do that. um the services will not assist us until later on. So just for clarity sake around us that would have us at a total of 11 currently. We have five currently you'd have six more and three of those would be the golden tier and three would be the copper if you ch if you so

108choose to just go with the three means as we've discussed in the past you can generate still 750,000 so when we when we look at the overall what we're going to use that for where does when are we looking at creating either is that a workshop committee or I think that's something that We need to sit down and we're going to do a workshop piece on that. We need to break down. So what what we need to do is start looking at okay so how many at will employees how many and then try to see what that would a difference that would make as far as percentages percentage increase for at will percentage increase or whatever the dollar amount increase would be for teachers. And then also building in like we've talked about additional uh

109instructional coaching and and instructional services or material dollar amount for our district because we need we need those those pieces. One of the things that I learned just this week being at the Texas Strategic Leadership is that those instructional coaches are crucial in in being able to help with moving the needle and so that they the state actually advocates for those. They also advocate for not just the coaching side of things but u coaching as far as professional coaching as far as you're like your leadership being able to speak to the professional coach that guides them through their decision making and those kind of pieces but that's not necessarily something that we're talking about here but I do think that the instructional coaching side is something that we very much have talked about for a

110while in the district that we We're trying to branch out. We have one position. We We need multiple be able to do that with that's where we're at. We would talk we would break those numbers down and bring them into this next budget which makes July. And then as far as the timelines, so Josh, as I recall, we have to so in the July meeting, we'll need to make sure that we discuss moving the vote up and what date we'll get specifics of that, but my understanding is it's roughly sometime around the he said before the 20th or somewhere around the 20th. I think it was the deadline is August 18th or Okay, let's see. I remember us saying that we may need to adopt before the 18th. Yeah, it would put us at the

11114th if we wanted to keep the Thursday meeting. So really that piece is not going to be all that difficult for us to put together on that part of having the other portion. We want to make sure that we have a call and early meeting so that we get our adoption adopted budget and then getting our adopted rate all done early and then call for the election at that time. So we may be doing our budget a couple weeks earlier than we normally have. That's why he was talking about earlier in his presentation. We may need to move when we would normally do that special. But as you can see, even the $750,000 or the 1 million, you're you're generating a lot of money there that will really help spread across our teachers uh these

112salary increases. And one thing to remember is that even though our teachers are getting the 4,000 and the eight, so are a lot of all all the other districts and except for the 5,000 above, they're getting a slightly reduced amount in those groupies. But everybody's getting all those teachers are getting raises. Um, but that's not including again a lot of other folks and you're at will employees in our district. We need to really look at all of that and make sure that we're raising those salaries as well to be competitive and so that we can retain folks here and get the highest quality folks for it is 8:47 going in close. action needed. Thank you. Have a good night. There's got to be a way we can either use a put up a microphone Stand

113his legs.