001Good evening. And I call this Medina Valley ISD special board meeting to order at 6:31 p.m. on May 14th, 2025. We have a quorum of board members present. Absent board member is Mr. Bonnie. We'll begin with a pledge of allegiance to the flag followed by a moment of silence. First item tonight is student recognition. We'll be with the superintendent student leadership council, Dr. Kaos. All right. I think we're trying to get them all gathered in here. Let them make their way in. All right. So, we would like to uh take this opportunity to recognize our our student advisory council. We meet with this group uh throughout the school year. Uh purpose of meeting with this group. You know, we want to get their uh their their feedback, their input on uh things that we're looking
002at doing, may possible changes that we're looking at making. Um we want to hear from them. We want to know what's working, what's not working. Bottom line is we feel like uh student voice is important, right? We want to we want to make sure that our students are heard. We want to make sure that we're doing everything we can to make their uh educational experience um a good one. And we want them to be successful, not only while they're here at Medina Valley, but also once they graduate and move on. And so, uh we meet with this group to to get ideas from them and hear from them and make sure that we're doing everything we can for them. Uh it's a great group of of uh students. Um I've enjoyed it. I know I
003know uh Mr. Langi. So I want to thank Mr. Langi too. Mr. Langi is a big part of this group. He he uh organizes all this. He uh he uh u sets a lot of the agendas. He has a lot of the conversations with the students. Does an outstanding job with these students. And so thank you Mr. Langi for all of your uh work with this group as well. And I also want to thank the parents. Um the these these students, these kids are are in this position because of you and the way that you've raised them and the values that you've instilled in them. And so thank you for all that you do uh for your for your kids and for this school district as well. So at this time I'm going to turn
004it over to Miss Langy. He's going to say a few things and we'll recognize these students. All right. Good evening board members and Dr. Ka. So this evening we are proud to recognize these exceptional students who serve in the superintendent student advisory council. These young leaders have played a vital role in shaping the future of MVISD. Um throughout the year they provided invaluable input on several key initiatives that we have going on this year. Um including the naming the mascot and the colors of the new high school. Um we covered a attendance um zone comm um recommendations. We covered our district AI policy with them. We got their input on it. We covered survey data from students, parents and um staff members and asked them, you know, when you turned in this data about your
005student surveys, what did this mean? You know, what what are you referring to? Um and then we also use them and when we developed our discipline and behavior matrix and got their opinion on that and surprisingly they were pretty tough on like tardies and dress code and and stuff like that. So um and then they also reviewed and offered feedback on our MVISD scorecard. Okay. Um to close out their year of service, this dedicated group will complete a meaningful endofear service project on our make a difference day, which is next week um at both the high school and the two middle schools. Um continuing their commitment to positive change in our schools and community. So please join me in thanking and applauding these members of the superintendent student advisory council for their hard work, insight,
006and and leadership throughout the year. So students, I'm going to call you up one by one and then we'll just kind of have you stay up here and then we'll we'll get a picture. Okay. M Mr. Langy, let's have the board come down first and then and then the students can come in and line up next to them. Okay. Thank you. All right. Some of the students were unable to be here tonight, so we are going to recognize the ones that are here. Um, so from LMA Alta Middle School was Claire [Applause] Bradshaw. From Medino Valley Middle School is Connor Benford. [Applause] Y'all shake the board members hand. Um, Deari [Applause] Hester, Taylor [Applause] Hunley, Bella Ibara, [Applause] Charlie Grace [Applause] Keller, Donovan Mack, Connor [Applause] Martinez, Evelyn Plate, [Applause] and Ital [Applause] White. And
007then from the high school we have Annalie [Applause] Barton, Hattie Burrus, Vincent [Applause] Gonzalez, George [Applause] Collie, Michael [Applause] Newton, Trinity Pinto, Ari [Applause] Rodriguez, and then Aaliyah Williams. [Applause] Can we get everybody in here? Okay, moving on. Next, we have public comment. We have no one signed up to speak. So, next on the agenda is end of term board member recognition for Mrs. Campbell. Miss Campbell, what what do we say about Miss Campbell? have a nice trip. No, I I'll start this out, Miss Campbell. I know some of the other board members will want to say something as well, but um you know, I've gotten to know you over the last over the last three years, and it's been a pleasure. Um I've worked with many board members and you're at the top of
008the list as far as board members I've worked with and and I've enjoyed it. I I why I've enjoyed it is because there's no doubt that you your your heart's in the right place and you want every kid in this school district to be successful and you want our staff right to be successful and be supportive and and and and uh be provided as well. So um you know when you have that vision when you have that uh commitment um success is the result. And so I hope that you feel like uh you're you're you're a big part of the successes that we have in this school district because you are your decisions, your vision um has has translated into our kids being successful. So thank you so much for all that you've done. This
009is a big commitment. This is a hard work. This is a lot of work and you don't get paid for it, right? So thank you. Thank you again for all that you've done for our students in this school district. Yep. I I'll second that as well. Um just coming onto the board um watching you. Appreciate it. So, thanks for everything. You actually taught us a lot just by watching you. So, um we'll miss you. It can be big shoes to fill. Luckily, we've got somebody else with similar background to help us with the the stuff that only someone that loves kids and teaches kids knows how to do. And we we appreciate it. And I've enjoyed the last four years immensely, especially when you yell at Blaine. So, but uh no, we're going to we're
010going to miss you very much. Yeah, I I just kind of feed off of what they said. you know, being on the board the last two years, you you definitely um were a calming voice in certain situations and and uh you know, you really taught us a lot just about how to look at things from every avenue and take all of the things into consideration when we're you know, making all these decisions. So, I I definitely appreciate everything that you've done for us for the past few years. I'll add that it was a pleasure having you as a teacher um years ago. Um and it was an honor serving with you on this board. Um you know you you come with a lot of wealth of knowledge through your your background and brought it to
011the the table here. So um appreciative of everything you brought to us and uh enjoy the retirement that you've had and like I said enjoy enjoy the grandkids too. Uh, as far as me, um, our time was shortlived, unfortunately. Uh, but it was a pleasure to get to work with you a little bit, uh, through these sessions. Uh, it was kind of funny, like Matt already said, uh, having somebody that keeps Blaine in check sometimes, but it made it, uh, it made it fun. Made it fun being a part of the meetings. And, uh, um, I can't specify enough, hey, enjoy your retirement and enjoy the grandkids and have fun out there. I want to thank all of y'all for your hard work. I've enjoyed working with y'all. I think we're on the right path
012now and I I leave knowing that we're in good hands. So, thank y'all very much and thank you for putting up with my comments when I'm tired and I uh know y'all are in good hands. Thank you. So, we do have a little going away present for you here, Miss Campbell. So, thank you so much. Thank you. Yeah. Yeah. Next on the um agenda, we move into action items and it's consider approval to purchase three vehicles for the MVISDPD. Mr. Wasak, good evening board members. Dr. Kaos, so chief uh interim chief Ellis Powell and I have met quite frequently uh recently along help even Tanya and Lori are in a lot of those meetings. So, we're kind of going right down the list of our of our budgeted items, and one of the biggest ones,
013of course, was the was the purchase of vehicles. So, what we bring to you are our three vehicles. Um, their trucks, we we decided to go with the the combination of since we bought the two used that we go with three new just so we kind of have that balance of warranty so we don't get stuck with, you know, five used vehicles and and maybe five new would be overkill. And so we I believe these are right around 55 a piece. We're going to come in uh at the end of the day right around 190 and we budgeted 200 uh for vehicles. So we're in good shape. Um are the vehicles equipped dirty with all the stuff that has on out the door? Everything including the wrap on it. Perfect. No other questions. I'll look
014for a motion. I'm Matt Castleion move to approve the purchase of three new vehicles for the NVISD PD as presented. I have a motion. Do I have a second? I been want to second a motion. I have a motion and second. Any further discussion? Not. All those in favor raise your hand. All board members voted for. And motion carries. Next, we have consider approval of classroom furniture purchase. Miss Hermish. So, we came to you um a few months ago and and did the um budget amendment for the purchase of additional classroom furniture, as you know, we're growing next year. I think we're adding a little over 40 new teachers. Um but when we went and evaluated what we had um whether either in portables or in some of our empty classrooms yet we determined that
015we really only needed nine sets of new furniture um to make to make things work for next year. And so this is so we reached out to um two vendors on cooperatives to or well we reached out and we put it out there. We received two um quotes back um from school specialty and from Indico um for the furniture that we have. We were luckily Indico also came in to be the lower of the two quotes and is the identical furniture to what we put in silos elementary. So it keeps us with that district standard that we created for elementary schools. So with that, we are asking to approve Indico for the purchase of nine classroom sets of furniture in the amount of $112,89. Any questions? Not. I'll look for a motion. I, Blaine Nash,
016move to approve the classroom furniture purchase as presented. I have a motion. Do I have a second? I, Joe Beer, second the motion. I have a motion and a second. Any further discussion? Not. All those in favor raise your hand. All board members voted for four and the motion carries. Next we have consider adoption of resolution canvasing the returns and declaring the results of the trustee election held on May 3rd, 2025. Miss Re, good evening board members and Dr. Kaos in front of you under your notes you have the Bear County results first. And I've kind of tabbed everything so you can re look at it. On the first page, it shows Annayia's results and Wara's results. If you move to the next page three, at the bottom, you'll see Walters. And then the next
017page is Matt's. I'll give you guys time to review them if you'd like. And those are just the Bear County returns. The next page are the Medina County returns. Those are a little easier to read. Does anyone have any questions about either one of those? And the final page are our returns, which is basically just taking the Medina County results and the Bear County results and putting them all on one page. Any questions? If not, I'll look for a motion. I, Joe Beiger, move to adopt the resolution canvasing the returns and declaring the results of the trustee elections as presented. I have a motion. Do I have a second? I, Julie Campbell, second motion. I have a motion and a second. Is there any further discussion? Not all those in favor raise your hand. All
018board members voted for and the motion carries. Okay. At this time, I'll swear in the board members that your right hand. In the name and by the authority of the state of Texas, I, Matt Castleion, do solemnly swear that I will faithfully execute the duties of the office of NBISD single member district number three, board member of the state of Texas, and will, to the best of my ability, preserve, protect, and defend the Constitution and laws of the United States and of this state. So help me God. Congratulations. [Applause] Come down. I'll come there. the name and by the authority of the state of Texas. I Benito Huades do solemnly swear that I will faithfully execute the duties of the office of NBISD's single member district 1 board member of the state of Texas and
019will to the best of my ability preserve protect and defend the Constitution and laws of the United States and this state. So help me God. Congratulations. [Applause] Okay. And the next one is Suzanne Lee. This one. Okay. I can see it. Okay. In the name and by the authority of the state of Texas, I, Suzanne Lee, do solemnly swear that I will faithfully execute the duties of the office of MBISDS single member district number four, board member of the state of Texas and will do the best of my ability, preserve, protect, and defend the Constitution and laws of the United States and this state. So, help me God. Congratulations. Thank you. Okay, don't trip on All right. So at this time we will uh reorganize the board and we'll start with board president. So I
020will preside over the meeting as we are determining who will be board president. So at this time I will now open the floor for nominations for the office of board president. [Music] I Bla Nash nominate Nathan Finger for board president. All right, we have a nomination of Nathan Filig Fillinger. Are there any other nominations? If there are no more nominations, I will close the floor. We will now take the vote for the office of board president. All those in favor of Nathan Fillinger to serve as board president, please raise your hand. All are in favor. So, congratulations, Mr. Fillinger. I will turn the meeting back over to you. Okay. I want to open the floor for nomination for the office of board vice president. I, Joe Beiger, nominate Matt Castaloney for vice president. Are there
021any other nominations? There are no more nominations. I'll close the floor. We will now take the vote for the office of board vice president. All those in favor of Matt Castigleioni to serve as board vice president, please raise your hand. A majority vote has been received for Matt Castigion, who will now serve as board vice president. I will now open the floor for nominations for the office of board secretary. Hi, Matt Castleion. Nominate Joe Beiger for secretary. Are there any other nominations? There are no more nominations. I will close the floor. We'll now take the vote for the office of board secretary. All those in favor of Joe Beiger to serve as board secretary, please raise your hand. A majority vote has been received for Joe Beiger, who will now serve as board secretary. Next,
022we have discussion and appointments for board committee members. So, this opens the floor for us to discuss who wants to serve on what committee. We'll begin with the finance committee, who's interested. Okay. Yeah, I would agree with that because it's pretty good for a new board member to be on there. I would like to Yeah, I would like to stay on the F. Yeah, when it we kind of overlap with construction a little bit anyway, so I'm good. Okay, Joe, you good getting off? Yes, I'm good getting off. Okay, next we'll start with construction committee. And I will share there is a lot of overlap between finance and construction. So I' I'd like to stay on. Yeah, I'd like to stay on as well. Anybody else interested in construction? My bl I'm fine with No,
023I'm good with that. Congratulations. Thank you, sir. You're construction basically are very similar. I mean I mean I get both sides of it anyway. I don't mind construction but I'd like to Yeah, I agree. There's a lot that's true. Anybody else interested in construction? We can leave a floater there. Maybe Jason will take it or then we can float that one. Yeah. I mean, we don't Okay. Yeah. So, Ben on construction safety and security. Currently, it's been myself and was generally. So, Blaine, you want to go there? Ben, you want to stay there, right? Um, I can stay as well and we can ask Jason if he's interested in that. We can we can float it. Um, lasso curriculums currently is Jason, Matt, and Jen Lee. So, yeah, I'm not sure you were going to
024have much of an option [Laughter] there. We need you there. I'd like to stay too, but I can go with Joe if we want to just off and off. Yeah, I'd like to be a part of that as well. So, if we can rotate through that'd be fine. So, Matt, you're currently just on just construction. That's my second. Okay. So, Joe and I alternate. That'll give us two each alternating. Okay. And then Jason. Yeah. Okay. So the committees will be as follows. Finance committee will be Mr. Nash, myself and um Mrs. Lee. Um construction will be Mr. Biger, Mr. Castigleioni, and Mr. Wattis. Safety and security be Mr. Wattis, myself and Mr. Nash. Curriculum committee will be Mr. Bonnie, Miss Lee, and Mr. Castigleone. Are you good with that? Yeah. Next we have the board
025workshop with Miss [Music] Hermish. Good evening. So we are going to go through so at the end of April we receive our preliminary property values. And so tonight we wanted to give an update on those preliminary values. and you all seen a little bit of that come out in our board update. Um, but along with that, it it directly impacts our bonding capacity and because we're a little we're still in the thick of it with the legislative session, we did want to take a little time to kind of focus on our INS piece and on on our bonding capacity um for what we would potentially go forward selling um this summer as well. And so we'll we'll kind of talk through that and Mr. Koga is here to help us through that conversation and then
026we'll show the bond project timeline that we had established and maybe some adjustments that we can make based on based on our property value growth. Um after that we have a legislative update because there is a lot going on and some things are starting to move this week. Um and then just give you an update on where we are with 2526 budget planning um based a little bit on what we think may happen in the legislature. And so I'll get started. Um the link it's linked on here, but we you have all seen this. Um Scott, you may want to pull it up for me for a second. I don't think I can. And but this is just the worksheet where it it kind of walked through all of our um all of the categories
027of property and it showed our increase um from last year at preliminary to to this year at preliminary. The only kind of adjustment that I made to that was to account for the Microsoft property because I didn't want to show this really large um increase and get our hopes up when really um it was just missing that property value. So, we were sitting at about 11.26 um percent overall for our preliminary value growth um between both Bayer and Medina County. Actually, if you want just go to the next slide because I've kind of got some bullet points since you've seen I may not have given him permission to open that. So, that's my bad. Um, so the next piece on here, like some of the things that I I noticed or just wanted to make
028some points about, um, when we're taking those values and then turning that into an estimated budget or debt collections, we are using a collection rate of 98% and and that is where we have been um, over the last several years with the with the CAD or with the appraisal district. Um and then um we also at preliminary incorporate in a 4% protest loss. Um we were around 3.9% last year. So that has been pretty accurate. Um we do between protest and certified there are still some values that can happen and then there there is that opportunity to protest. We don't we're not seeing a large amount of protest um currently because a lot of the property values at least on the Bear County side most of the homes were at or maybe slightly below where
029they were the prior year which is going to reduce just the number of protests that you see. Um another piece that we've looked at um or that we've been kind of keeping tabs on is the homestead cap. Um we did see that about half of the homestead the the cap went down by about 50% from 20 24 to 25 which just means that all of the properties that appra that several years ago received really those those 20% growth items are now getting caught up um and are were build buying down that cap and so so we did see that with Beay County it stayed pretty flat which kind of tells me that they're they've already bought down their homestead cap. And so there's not really a whole lot in there um to reduce. And so
030there's still there's still a little bit, but it's not not as significant as what it once was where we knew if if our home values didn't increase, we would still potentially get the 10% from the cap. So that that will be something as we look forward um to the next couple years. Um, Medina County, just as a note, Medina County is still waiting on updated personal property values. And um, as I've had a few conversations with with our um, attorneys and different things like that, it's it's a little bit common for them to to self-report in addition to the visits that that take place. Um, and so this is the self-reported piece um that we're waiting on. um they they've been make they have an idea of what that would look like. And so we're
031currently showing around $50 million um more than what we are building into that 11.68% assumption. And when Victor presents here in a minute, his assumption doesn't include any any of this as well. Um and we did follow up a little bit with Johnette and some of it is additional. It's not necessarily new property coming on, but it is increase in valuation on some of it. And then the depreciation side is what she was reporting um most recently. And so we we try to communicate every couple weeks and just get updates until we get to certified in July. And so we'll keep asking for those. I know statements went out in Medina County, so we'll start to get a better idea of protests here over the next few weeks. um at preliminary we didn't have weren't
032showing any protests yet. So so that um so we're we're just kind of estimating based on prior year experience. And so something I know Victor and I have talked a lot about over the last couple days is just that these are very preliminary. So, just gives us an idea of where we are. And um normally I don't say I'm grateful for a September one budget cycle, but right now between the legislature and the property values, I'm kind of grateful that I'm not adopting a budget in June. So, so we will we will say yay for that for right now. Do you know what that 50 million does to the percentage? I think it brings it up to about 14. Okay. So, that kind of gives us an idea of of any other changes that happen.
033Um my my only and I'm being a little conservative, but I just don't feel like I really 100% know what the increase and decreases are and where they're coming from. So, it's just hard to like be like, "Yes, we're going to get that." So, we'll And our projections were on 10. Correct. Correct. Okay. Yeah. And so just and wanted there's a couple places in here where we're going to talk about legislation, but um this piece is specifically to kind of bonds and and our INS piece and property taxes in general. And so there are two pieces of legislation that have currently been voted out of committee, which means they're sitting in the opposite um side. So, for House Bill 9, it's sitting in the Senate, but it was voted out um to increase the business
034p personal property from 25,000 to $250,000. Um that would impact us to an extent, but when we're looking at a 300 to $500 million and personal property, a $250,000 exemption won't won't be devastating. Um but it should have it will have a little bit of an impact. Um, for Senate Bill four, um, this is the one, it's sitting in the House now, but it has a lot more pieces to it. Um, but it's the main piece is to take the homestead exemption from 100 to 140,000. Um, it does include a hold harmless. Um, with that provision, those hold harmlesses are only based on the debt that you have issued at the time. Um so for for this anything that we issue going forward won't be held harmless necessarily but we will have it on anything
035that's previously issued. Um so that that can impact um capacity as well. Um and then it does reduce the whole so this is basically related to defeasance. So if you if you choose to raise your tax rate so that you can pay down your debt early it's going there's going to be a penalty. So, they're basically not going to give you your hold hold harmless for that purpose. So, they're not going to let you do that with those funds. Um, and then there is an element in there that would require voter approval for an early defeasance. I don't think that's um I'm not hearing that that's going to go through with this bill. Um, but it is it was something in the original bill um that did move. The other one that is still sitting
036in committee but has been referred over to the House is the uniform election date. So not allowing elect bond elections in May and forcing um those to happen in November. And so those those are kind of the ones that we're still watching. The most of the movement this week has been on the school finance piece of House Bill 2 and we'll talk about that a little bit later. Um, I know in our last board meeting, we talked a little bit about House Bill 19, which was going to be really devastating to a lot of school districts throughout the state. It was essentially saying that you could only use 20% of your total tax collection, so M and INS on debt. And so our INS or our M tax rates around 66 cents and our our
037INS is at um 50. So 20% we're we're way over 20% already. And there were a lot of districts in that boat. In fact, over 600 would not be able to sell any bonds for, you know, a 10 plus year time span. And so that bill has died. There were talk earlier um in the week that some of the pieces from that bill may show up in other like they may move and put some of attach some of it to some of these other bills. Um, but for the most part, I think it's I think it's pretty dead. Like it was it was pretty drastic um legislation and and I think they've it's not going to make it through the the Ways and Means Committee, I don't believe. Um, but we did, is as Victor's
038about to come up and kind of share, we did um incorporate some scenarios because there was a fear that if we could not pass or if we could not sell bonds that we may want to increase what we sold this fall. um to consider that. And so we did run some scenarios about what that tier one pledge would look like if we had to um if we needed to sell more. So should something happen with the legislature that we don't expect and we need to potentially sell bonds a little faster, um we're at least going to walk through what that pledge would look like so you have an idea um of what what that would be in case it's a quick decision action to do that. Um because most of these things you would have
039to do before August 1 in order or or it have to close before September one in order to um not be subject to the new legislation. All right. Um, did anybody have any questions about any of like I know legislation gets a little funky, but okay. See if you can open this one because this is Victor's PowerPoint and we want you can't open it. Why? Okay. Okay. Victor always comes prepared and he brought you copies anyway, but we'll try to get it up so that we can all kind of follow along. Sir, I make a print out every time just to just in case technology doesn't work for me. So, thank you, sir. Will it allow him to scroll? No. So, we'll have to scroll for you. All right. Honorable board president, uh, members of
040the board, Dr. Kaos, thank you for having me here again uh, today. Uh, for the record, my name is Victor Koga with Specialized Public Finance and we have the honor of representing the district as your financial adviser. Uh, before I begin, just wanted to congratulate the reelected uh, board members and also the new elected uh, Miss Lee board member and uh, uh, look forward to working with you all and continue to work with you all. Uh as uh Miss Hermish indicated, what we uh wanted to do is update the bond uh sale model uh for the May 2024 bond program and see where we're at based off of the preliminary values. Also wanted to recap because there's a it's pretty complex uh the plan that uh really was led by Miss Hermish last fall and
041how do we get there um in a prudent fashion uh with the bond program. And so I wanted to recap what we've done and the steps we've taken and also the additional couple more steps that we need to take and how the preliminary values are impacting that. So the first page after the cover sheet uh I got ahead of myself there. Uh just basically uh we presented a couple of scenarios to you last fall on how to move forward uh with the May 2024 bond program and that was what we called scenario one. Uh, also wanted to reaffirm that what we're trying to do based off of this plan, we introduced a defeasent strategy. That's just our fancy way of saying we're going to pay off debt early and strategically. Uh, we're going to use
042$15 million and our goal was to minimize any risk that any tier one pledge that we um utilize to get approval to pass these bond tests that we're really hopefully not going to actually uh realize that just in case there is a slowdown in property value. So again, that's still in place. So since that time uh in November 2024 we issued 11.2 million that was for the uh high school athletic projects and so that was sold and funded and so that you have that uh in your bank account. Uh and also in December 2024 we executed the first part of this uh two-part diffuses program that went well and then there's a couple more steps that we need to take and this was all contingent on us growing by at least 10% with the property
043values. Unfortunately, we're it's looking like we're, you know, slightly above that. So, that's going to allow us to stay on track with that scenario one that we presented. So, if you go to the next page, uh this is just a recap of the scenario one that the finance committee and then the board approved back in October 2024. Um uh this is where we're looking at funding the full $290 million based off of the assumptions that we all agreed on. uh 10% growth in property values for the next few years and uh reduced it a little bit after that. We were able to fund your bond program over 20 over a 5year period. I I was about to say 25 year period. I'd be in trouble. Um fiveyear period where you get all the funding by
0442029. And so uh based off of the 10% growth, it looks like we're just going to do that. We also want to be conservative. We didn't want to introduce, you know, capitalized interest or any other financing tools to uh get there. If you go to the next page, uh just uh recapping some of the decisions regarding the fin the defeasance strategy and defeasance program. Again, our goal was to um strategically pay off and and reduce some of that cash flow in the early years while we're selling this bond programs to reduce how much tier one pledge we have to do and also reduce primarily the risk of us ever having to use tier one pledge, which is basically Money that should be used for operations. Um here uh basically this the fees program not only
045gives us that reduces that risk but also saves your taxpayers interest cost funds because we're paying off debt early. So about $3.7 million in interest cost savings to your taxpayers is will be the product just of this uh $15 million defusions program. So if you go to the next page ladies and gentlemen this is the uh outline of the actions that we've taken and uh need to take. Again we sold $1.1 million last fall that was done competitively. uh got a wonderful rate of 3.98. Uh interest rates are slightly higher than that and the market is a little bit volatile uh since the discussion on the tariffs uh came about. Um we also executed that defeasence. We released close to $8 million uh in cash on hand to pay off those those bond payments and
046saved uh $1.42 million. And so the next steps uh based off of the original plan in June or or next month, we're going to go ahead and execute the second part of that defeasence, releasing upwards of $7 million to pay off that debt and achieve additional cost savings. Also, we had plans to and the board has authorized this already to issue $70 million of that bond authorization. Uh last fall, the board u allowed us to move forward on up to uh $81.2 million in in debt. And so the remaining authorization is $70 million. Uh that bond sale is going to be contingent on us growing by at least 10%. Palima values right now as Miss Hermish indicated is about 12%. So that's good news and uh I feel a lot better now uh about this
047plan. So if you go to the next page, um this is just what we uh pretty much showed you at Nauseium when we were visiting with the finance committee last fall when we were engaged as your new financial advisor. So you could see there the healthy growth that uh you were achieving. But um in 2025 that growth wasn't as high as we anticipated. So uh moving forward uh you could see there from 2026 to 2030 in the blue bar graphs we're looking at 10% growth for the next five years and after that dropping it to 8% and 2%. So we use those as the assumptions on how do we get the $290 million in a reasonable time so you could deliver the projects that the voters allowed you to move forward with. And so again,
048we're ahead of schedule now. So, uh, now let's go to page seven. Um, an update on where we stand. So, because right now we're tracking to be above that 10% uh, annual growth rate assumption, we're still fine with achieving the original plan that was uh, developed under scenario one back in 2024, October 2024. And, uh, you can see there, we've already sold the 11.2. Uh, this summer we will sell $70 million. uh as you could see there by 2029 you would receive the full funding. So based off of the uh additional growth that we um are seeing on a preliminary basis we wanted to run for you and update this model. Our goal has always been to try to accelerate the funding availability for you so you could uh tackle those projects before inflation and
049cost escalation catch up to you. So under uh scenario 1A that's on the bottom left side there. Uh good news is that based off of just this uh slight growth that we're seeing because everything's a domino effect after that. Uh we're able to shave off a full year of funding. So instead of being fully funded by 2029, we're looking at 2028. Uh assuming that we get the 12% this year and then even of us going back down to 10% the following years, we should still be fine in achieving this plan. So, um, that one currently tracks a little bit better with the district's, uh, project funding plan that you have in place. However, because of House Bill 19, which I've been losing a lot of sleep over uh, I joke around, I probably shouldn't say
050this in public, but I joke around with clients because I was only half joking that um, I've been doing this 25 years, so this is all I know. I don't I don't have any other skills outside of this. Uh, but I tell them, you know, um, I'm kind of concerned about HB19 because either next year I'm gonna be a financial adviser, an Uber driver, and nothing against Uber driver, it's just just I shouldn't have said that in public because, you know, hate mail is going to start coming from the Uber drivers. Uh but but we ran uh scenario 1B for you uh just uh to show you that if we did want to beat the clock and this bad legislation was going to come into effect, how can we maximize uh bond funding uh particular
051for for the construction of an elementary school in addition to the middle school that we're looking to fund in 2025. So scenario 1B uh has us issuing $132 million this summer. If the district was uh interested in issuing that, they would have to come back as a board or you have to come back as a board to increase that authorization that you gave us because right now the authorization is only to sell $70 million without coming back to you. However, as we discussed as at Nauseium last fall, really the district can sell as much bonds as it wants only if you're comfortable with the amount of tier one pledge that you have to uh uh uh show the attorney general to get those bonds passed. So, uh, under scenario 1A here on page, um, uh,
052the following page, please. Think mine is off a little bit. There we go. Uh, so you could see here what we wanted to show you is that yes, we're able to shave off a full year and deliver the full bond pro proceeds to you by 2028. Uh, but I wanted to show you on an annual basis the projected uh, tier one pledge that we have to make each time we issue that debt. So, if we wanted to stick with $70 million right now, our conservative estimates is that we would have to pledge uh $3 million in tier one funds in order to pass that bond program with the Texas Attorney General's office. Um, as I if you go to the next page, we also ran this for scenario 1B. I'm sorry, this is more of
053the detailed model there uh that we're showing you. It's a little too small to go through, but if you go to the following page, please. Uh, we're now at scenario 1B. Uh here again, we're able to get you funds quicker, but this summer we would uh look to get you $132 million uh again in an effort to beat any bad legislation that would come about. And we're still not out of the woods. Whenever the legislaturator's in session, nobody's safe until they they're done. And so we're still on the lookout for any amendments that they might introduce to try to reintroduce elements of that House Bill 19. That was pretty bad legislation. But here, if you wanted to sell $132 million, you can. um the tax will be able to support it. However, you would have
054to pledge not $3 million but close to $7 million in tier one funds. Uh but again, it is a it is an option, but it's at your discretion whether you want to pursue it. Uh if you skip over now a couple more pages, uh we'll just talk about the final slide here, the next steps. Uh so again in next month we're going to go ahead and continue with the defeasance program releasing about $7 million and uh paying off some bonds uh to mitigate that tier one risk pledge uh pledge risk. And then we want to go ahead and wait until we get the certified values in hand from both appraisal districts uh July 25th. That's the uh statutory deadline when they have to deliver that for you. Uh but before then my office and the
055administration, we're going to be ready to go ahead and enter the market. We'll prepare for the $70 million or if you want to do more, we'll prepare for that, too. But we'll be ready to go so that by the time we get the certified values July 25th, we're ready to enter the bond market as early as the next week or maybe the first week of August. Um, and then our goal too is to try to close this transaction, as Miss Hermish indicated, before the uh before August 31st because any new legislation would be uh effective for anything closing after September 1st, 2025. So that that's uh my presentation there. I'll be happy to answer any questions you may have. Just remember we didn't pledge any for the 11.2. Correct. It was minimal amount. A minimal
056amount. Yes. Very small. Yeah, that's what I thought. I'm just just running through this real quick. And Yes, sir. You know, just the first thing that jumped out to me was I'm just talking between 1 A and 1B here. So, so 1 A, you know, when you look at 2526 combined, it's about 155 million. 1B is like 152, but there's a significant increase in tier one pledge to get a smaller amount of money, like almost 50% higher, but you get you get more on the front end. Correct. But I'm saying, but if you if you look at the it's about $8 million over the two years if we're on one A. It's What's that? No, it's not. Oh yeah, it's 50%. 50% of 8 million is 4 million. So to go from 8 to 12
057million, that's 50% increase. Here, I'll walk you through. I think it's the I'm adding up two years only. Yeah, I'm only looking at the first two years. Yeah. So, okay. Yeah. They're comparing this to the other. And we did get clarification because I know it's a a pretty technical and complicated subject, but um uh interestingly your bond council sent me an email, so I have it in in word typed in and I'm surprised the lawyer actually sent me something in written. Uh but we were talking today and getting clarification regarding the uh the tier one pledge. And so what Mr. Brenford indicated is that um it's not a cumulative amount. So, after you're done with this bond program, and let's just say we add all this up. I'm not good with math in my head,
058but let's just say it's $20 million. Um it's not a cumulative amount. It's just based off of the last um pledge amount that you uh made uh uh for that particular bond sale. So, um so right now, our understanding is not cumulative. It's just based off of the last pledge that you made. And if you go into a future year and the property values don't grow and the 50 cents INS tax rate doesn't get us the revenue we need to make that year's debt service before we could increase that tax rate we would have to use a portion of that tier one funds. Uh so that was a clarification that um he provided yes that's what that's and we'll we'll share that information but that was the clarification that we want. Yeah. Yeah. Yeah. So,
059so that that's the clarification we received. Yeah. Yeah. So, I wish you didn't leave so early. He could have gotten on the the stage here, but I'll forward that information and u have Clay also send it over. But that's our understanding right now. But and again, you know, it's a matter of what what level are we comfortable with with pledging tier one, but at the same time, we have to make sure that um our 50 cent tax rate is able to support those payments going up. And here, we're just being mindful, we're not proposing that you issue as much as you can and pledge a lot. Um because we still need to make sure that we're hitting those 10% uh property value growth targets each year to make sure that we're on track and that
06050 cents is actually going to be enough to make those payments. and us actually never dipping into tier one. My hope is that it doesn't and and I I had I was trying to avoid I'm sorry. Go ahead. No, I was just trying to avoid not to go into the little small page of the the the spreadsheet here, but uh if you go to the uh one a scenario please and it's a detailed one. If you go there we go. Okay. Yeah. U sorry if you all don't have a paper copy. It's a little small, but uh here the um the yellow shaded areas is um showing that 50 cents will be able to support the $70 million bond program, the uh 2026 issuance, the 2027 2028. Uh the one in orange there demonstrates that
061after we sell everything and assuming that we continue to grow at 10% per year for the next four years and even if we drop at 8% that INS tax rate should actually be able to go down to 45 cent. So once you get some relief there with the INS tax rate then there's no risk at that point to have to dip into tier one funds. And what I wanted to do is also show you that blue line that you see there in 2038. Um what this defisa strategy does and what we're purposely doing is that we're um delaying the maximum annual debt service that the district is going to incur. Right now had we not done the defeasance program, it would have been as early as this year. Uh but now we've uh delayed it
062uh almost 10 years just with the defeasance program. So that blue line there shows where the maximum annual debt service will be. And so we're hoping that, you know, growth rates will be more than 8% or 2% which are pretty conservative and you'll never actually have to use the tier one funds. That's the the hope, but that's not the um promise. On the uh on the original scenario, not not A or B, but the original one um to do the $70 million sale this year, was there any tier one pledge at all for that? Yes. Yeah. All all all scenarios and all bond sales require a tier one pledge. Well, I think because I had the same you're probably on the same line as me of is this tier one pledge for the 70 million
063what we were off of the 10% projection or off of the 12%. So right now what's what you're seeing here like 1 A 1 B uh and those u uh tier one pledge estimates that's based off of the 12%. Okay. So la last year when we had there was I'm guessing more tier one pledge in order to sell the million. Do you remember what that was? Yeah, exactly. And and and also too what's going to change is not only property values but also interest rates. Uh now we're using we're putting even more cushion in these interest rates because interest rates have gone up since last fall. the extra 62 million is based solely on increasing the tier one pledge. Yes. There's nothing in property value increases into that. It's just solely on tier one. So
064basically in our models if you could actually go to the the let me see what page 1B the detailed one. There we go. And so here what we're able to do we were able to structure in column F you see the $132 million bond transaction. uh there we're able to issue this uh debt issuance and your 50 cents should still be able to support those payments subject to us growing in future years by at least 10% per year in property values. And so the 50 cents will be able to get us there. The decision point for the board will be we could get there, but we would have to pledge more tier one funds to be able to get the additional $62 million quicker. But again, that's why we introduced the defeasance program in that
065we're trying to delay when that maximum annual debt service happens so that we're hopefully never in that position where we have to use tier one funds by us restructuring our current debt payments. Guess I'm just looking at it. If something crazy like House Bill 19 would pass all of a sudden and we had that pledge, we would be on the hook for it. That's where I want to limit it. I mean, you may not even have it with you, but what I guess just for some more information prior to this, you know, our original plan, I'd like to know what our original tier one funding was going to look like this next comparatively speaking. Yeah. For the original plan. Yeah. Yeah. Yeah. So, all plans uh required uh an amount of tier one pledge. Our
066goal was to minimize it and that's why we're spreading it out over four to five year period. Yeah, I guess back to So am I. So am I. That's why I was asking if it's off the 12%. Yeah. So last year we probably had it at I'm guessing it'd be around 5 million is my guess on I'll get that for you. I'm sorry. I was trying to I was trying to like not put too much information here, but I I I probably should put more. So, we'll follow up with you to give you that original tier one pledge and I can send that out because I'll have the copy of this from Yeah, I have it. I have it at home. So, it's just I was just curious if we had it here. I was
067like 3 million starting to get manageable. It's a lot better. What is our current INS fund balance or that we carry that we're carrying? Um, we don't you typically don't carry a lot of INS fund balance because you're you're basically using it. Um, and then we're defeasing and doing what we can with it. So, it's not a lot. We're just we're timing it. You're basically setting your tax rate to make your payments is is essentially how that works. On the M side though, we are still carrying a pretty good fun. Well, that's what I mean. Victor made that statement that we had four. It's like four point something. Yeah, just under five. But do we use that in the defeasence or is that we're not for this year but it it so it is in
068there but you're always like worrying about your next payment. So I'm always thinking okay how much cash do I have to have by August? Right. Right. Yep. In case we're late collecting I just wanted to show it's it's kind of like well our fund balance is a little better but with we're always making that August payment. Okay, thank you. Yeah, there we go. Before we get any more money. Yeah, so the the diffusence where we're attaining those funds were the um interest earned that you had off of the high school bond. Uh and so that's where we're we decided or the board decided last fall that you're comfortable with utilizing some of those funds to uh pursue this to fees. And so the bulk of those monies are in that pot and are a product
069of that interest earned from the high school bond. Correct. Yes. Well, one thing I' I'd like to see is is the scenario like if we would go to the 14%, what does that do to the defeasance numbers? Okay. Yeah. Yeah. like for the bomb like if we grew 42% like how Yeah. What would it do for the 70 what would it do for the 132? Yeah, absolutely. Yeah. No, we could do that for you in the bond market right now. Uh you know, so uh that rate that we got was really nice. It was 3.98. And so um uh you know, but we just we don't know. We can't time it. But my my crystal ball is pretty foggy on interest rates and so it's not very good. But um I could show let you
070know that you know past couple weeks we sold a numerous amount of school bonds and um it the the interest rates um they did start going up a little bit with the tariff talk but what happened uh the bond market kind of grinded to a halt and what I mean is that yeah interest rates were still attractive or still reasonable but we couldn't find any investors that were willing to commit capital to purchase these bonds because there was just just unsure about what the economy is going to do what the tariff's going to do. So that was more of the volatility that we saw where we couldn't bring anybody to the table. And so we we had those. So bond sales are getting a little slower here. Uh but the 30 to 30 30-year bond
071issuances that we're pricing um the interest rates there were about anywhere from 4.4 to 4.6% uh locked in and fixed, which obviously it's not, you know, the 3.98 that you got, but it's still pretty reasonable. Anything anytime you're below 5%, uh we're we're we're pretty happy with that with a 30-year bond. Um what we had to introduce and we talked about last fall too is that um in order to minimize the cash flow and if we minimize the cash flow and the debt service payments we minimize how much we have to pledge in tier one. Um because of that we introduced as part of this plan uh that we would have to probably go beyond a 30-year repayment term and introduce a 35-y year repayment term which is very common for fast growth districts in
072order to fit everything in in the INS tax rate. However, that's not um that's a decision that, you know, as we get closer to the certified values, get ready to sell, uh we'll rerun everything based off of more current market rates and see, do we have to go 35 years? Can we shave it off back to 30? So, uh that's a decision that'll be more of a game day type decision. Fun stuff. appreciate it. Yes, we will go too far, but we did or uh if you'll go back to the other presentation. Thank you, Scott. And when I was saying that I bring a PowerPoint because of technology, because I have problems with technology, not because Scott is not doing an excellent job over there running my stuff, but um so so just bond project
073timeline. So when we when we first started talking about this and we had the program um last fall, this is kind of what the timeline looked like. So it was spread out over three six different sales. So the 11.2 we did in December and then we were going to do the 70 million here over the summer for the middle school 3 project as well as to to design and get ready to do the the safety vestibules um next summer. And then as we move into 26 bond, we were looking at the elementary seven um school as well as the athletic improvements in the Panther Dome. And then also designing that elementary school 8 and working through the high school athletic design as well. So that in the following year we would we would have the
074bonds um available for elementary school 8 and the the high school fieldhouse. And then we were chunking the stadium and then we were chunking the land. So it was very spread out um using the assumptions that we were making. And so as Victor talked about, we are between the um funds that we've been able to use out of bond 23 and bond 2019 and the um the project savings that we're starting to see on middle school three. We know that we're the construction came in around 9 million under. It's it's enabled us to shave a year off of of the bond sale. So we're doing from a cash flow standpoint um we're we're able to squeeze that into to the five separate sales. So kind of four fourish years but five sales. Um and so
075and what it and it does fe give us a little bit of an opportunity. So, one of the options um is to move the elementary school 8 and seven to open at the same time. So, construct both of those together um with the with the 2026 piece. I think on page seven in your book, you kind of saw the the increase in our capacity um for that that particular sale. And so that would be that would be a particular or an option for us um using the scenario 1A. Um it does still have land at the end and we talked about the potential um property that we may want to consider um and we may need access to those funds a little bit earlier. And so that that's something that we would need to consider
076um with that where we want to pull that from if it's a continue to press with the elementary school and move the Panther Dome or how we want to how we want to try to work that out once we know what the cost of that potential land might be. Then we did just to run the 1B scenario. um it did allow us to shift both both of the elementary schools up a year and so you would have elementary seven but this one too as we were um going through the architect interviews some architects felt like they could get it get it going quickly and be ready to go um but I wouldn't say that was an across the board and so we may already like we would need to be moving on that design very
077quickly um if we were to move the elementary school um seven up a Um and then it shifts it would allow us to shift elementary school 8 and then um kind of still land in that same timeline for the fieldhouse stadium and land piece. And so it does again it's shortening everything kind of by a year but you saw the additional tier one pledge that we would need um if we if we move forward with 1B. And so just let you kind of think through those a little bit. And I do have the backup cash flow schedules that I can share again that kind of show all those options with with what we're doing. But I thought this was a little bit easier to kind of digest um the movement um of the schools and
078we're I think if we were making a recommendation the 1A um still works I think from our timeline. It just and and is a potential thing that we can consider especially as we get values again next year on whether we want to to um move the elementary 8 timeline up. It's just not slowing down out there. So So anything we can do to do that? Um we wanted to at least show what that might look like. Okay. So, do you all have any other questions on the bond and INS piece? Um, I did want to give just a little bit of a legislative update and then a little bit on 2526. So, kind of switching gears to M. You're good. Okay. So, legislative update. So the big pieces is we are in the week right
079now where the House really has to move on a lot of things in order for anything to actually get approved in this legislative session. So there are there are hundreds of of bills out there and some of them have started to move through committee and and are seeing some vote on the floor. And so those were the ones that we're going to kind of talk about and point out. Um but Friday is the last day for them to vote out any legislation out of the House. And so that's that's kind of where we're sitting right now. Um we'll come back from Me Memorial Day and they'll close the session and we'll kind of see where we land. Um but this is kind of where we're at right now. Um so as I was as I
080was putting this together um last night, we're I'm literally it's 8:30 and they're we're getting updates on things that are happening because they don't they don't stop at 5:00 at the at the legislature either. Um, so it was kind of an interesting evening with changes that happened. But as far as um the M side of the house and school finance, um, what we've seen approved so far from the governor has been vouchers and a bill on virtual education. Um, what is sitting in committee still is the, um, Senate bill one, which is our general appropriations bill that funds everything for the next bienium, and then um, Senate Bill 260, which is school safety. And I'll talk about that one here in a minute. And then the other notable bills that were sitting in have made
081it through kind of that first first chamber and are now into the second chamber are the House Bill 2 for school finance, Senate Bill 26 on teacher compensation, and Senate Bill 568 on special education. And so where we were last time was talking about House Bill Two. And this was the slide that we we had potentially looked at at what our increase would be. Um a lot of it coming from the basic aotment and then teacher teacher compensation being a part of any basic aotment increase. Um and then some additional um other pieces in there as far as tax compression and um that defeasance penalty keeps coming back up. Um, and so what happened last night is that this has been in the Senate and we've been waiting for the Senate to take any sort
082of action on on the House bill and around 8:30 last night, they submitted their version of a committee substitute bill. And so what that looks like, um, it looks a whole lot like all the Senate bills that you just saw on there. So, you know, I was going to show a graphic of the House and the Senate on a teeter totter and who won, and it's it's very clearly the Senate won. So, where we had talked about a big basic allotment increase, we're now um looking at um a teacher retention aotment um and some pieces related to teacher prep and certification, special ed, early learning, CTE, and school finance um reforms, which includes the school safety um piece. So, I'm going to walk through the ones that are bolded um because we have a little
083bit more information and what the financial impact of those might be. Um the other ones for the most part, I think are going to require we're going to get funding if we do XYZ. And so, we're basically going to get it's going to end up a net zero, I think, for the most for the most part on that. Um so, if you offer a teacher prep program, they're going to fund you to do that, but you're not going to get the money unless you do it. So, it's it's kind of one of those types of things. Um, so looking at Senate Bill 26, because this is likely what teacher compensation um package might look like um is it is it's doing kind of three things. It's enhancing the TIA system. So, the teacher incentive aotment
084to expand to include um principles and and assistant principles. And so one of the things that we're seeing as you move forward with the teacher incentive aotment is that now your teachers are making more than your administrators and it's hard to recruit administrators to take on those additional roles um when there's not a compensation piece tied to it. Um it does it allows for any of our teachers to have their children qualify for prek. So they wouldn't have to meet the other criteria to qualify for prek. So any any teachers um student would be able to qualify and we would get that half-day funding um for that student um if they were in there. Um concern my initial concern with this one is a space allocation piece um more than it is about about the
085program but it but just space we don't we don't have a ton of space so I'm not sure on that one. Um, and then the third piece is this teacher retention aotment that goes into it that essentially for districts with more than um 5,000 students, you would any teacher with three years or more of experience would receive $2,500 and any teacher with at least five years would receive $5,500. So Mr. McGura helped me pull the number of teachers that we have in each of those categories. And so this is kind of what that would look like. So they would be giving us the the funding and we would pass that along to the teachers. And from what I understand, it's permanent. So it basically would increase your teacher pay scale by those amounts because they
086would receive it. They would receive it every year. It's not a one-time and then it goes away. It's it's permanently increasing um the teacher retention pay for those who who make it three years and five years. So this it's just short of 2.7 million would come to us and and would go back out to the teachers. And just as another reference point, the teacher pay scale is is teachers, counselors, librarians, and so it's it encompasses a few more folks, but but it does leave out a lot of other folks that work on the campus as well. Um the Senate bill um 568 on special education um is talk we've there's been a lot of talk really even since the last session on going to an intensity of services model. So trying to find a better
087way to fund special ed for the amount of staff and the per student ratio that that students with special needs require. Um, and so this is looking at that. That plan is not developed and it wouldn't go into effect until the 2627 school year. Um, so that would not impact our our budget necessarily for next year. Um, it does also include an additional thousand for those initial evaluations for students. And so that part of it um is always going to be beneficial as we're we're doing evaluations. But the total amount is a little bit up in the air and probably not super impactful for next school year. And then the last one they lumped into a category called additional reforms. Um and the the two that would actually um impact us are are bolded there.
088And the first one is increasing the basic aotment. So, we were looking at a several hundred increase and now we're at $55 because they're using those funds for those other areas um that they that they were outlining. Um it it would yield us around the around $800,000, but it does give up this golden penny yield in tier 2, which is currently the only inflationary adjustment that's in the formula at all. So, we would we would have this 55, but we're going to give up future years of potentially having that golden penny yield increase. It also um is more beneficial for folks who have had a TR election and are utilizing all of their pennies. We are not currently using all of our pennies. So, to some extent, it might be better for us currently without
089a TR to do the 55. Um, but it's about 200. we're gaining about 800 and we're losing about 200. So, it kind of ends up in a little bit of a um wash where it's, you know, around 570,000 or so that we would gain from that. The other one that will impact us is the school safety and and that's a plus because we spend more than we get for the school safety aotment um just to run the Marshall and the PD programs. And so, current the current school safety aotment is $10 a student and 15,000 per campus. And so this is increasing it to 28 a student and 30 per campus. And so that's around $250,000 that we would benefit. So we obviously we don't we're not a charter school. We're not small midsized. We're
090not benefiting from the insurance the variations of insurance costs. There may be some pieces in tier 2, but I'm not sure what the tier 2 miscellaneous is involving right now. Um and so we'll kind of watch that. But so overall of discretionary funding that we may benefit from, it's around that 857,000. And that is kind of where we stand um on on legislation right now. My understanding is that they're supposed to vote from the Senate tomorrow morning at 9ine. And if it passes that vote, it will go back to the House as substituted. and the House is really not going to have time to do any sort of conference committee. So, it's either going to be a yay or a no vote on that. Um, I would imagine that it would be a yes vote
091because it would be very hard to say no to the teacher compensation pieces of that and um not look ridiculous. So, um so my guess is that's that's where we'll land, but we'll kind of keep following and seeing where we are with that. And so I went back for the next little piece on the 2526 preliminary budget pieces. I we've we've gone through a lot of this at the February board workshop. And so I'm just kind of reiterating some of the things and then and then kind of circled or highlighted the things that have shifted a little bit um just to bring a awareness. But please, Miss Lee especially, stop me at any point if there's some if I go too fast because I I'm going to go through them pretty quick. Um, but the
092the first piece is we had had approval of the compensation plan in May, but because of waiting on legislation, we're going to push that into into June. So, we'll bring back at at the June finance committeeworkshop some options on on compensation and then plan to approve those on that June 23rd regular um meeting. um it does get it sneaks it in there right before our July one employees um contracts start but and we'll try we'll do our best to try to get those in. Jennifer's probably making a face at me behind me right now. So it's tough on payroll. Um but this is this is kind of just a product of the legislature and where we are. The assumptions that we're using are based on our third quarter demographic report. And so we are anticipating
093well over 10,000 students and we're almost hitting 10,000 right now. So um we use a a lower attendance rate at 92% um to make sure that we're we're hitting that attendance rate and it guards against if for some reason we don't make those enrollment projections as well. Um, and then we talked about earlier the collection rate and the property value growth. And we'll adjust that to the 12%, but currently it's it's still sitting at 10. And so what that really generally in a very big overall big picture view is that it's around 9 and a half million in additional revenue um that we would have based on a thousand kids um of growth over the next year. And so then when we start talking about some of the expenses, we just kind of back off
094of that 9.5 is a big picture number. Um, so attendance I did when we reported in February, we were sitting at 93.5, but all of the work that Mr. Langi's done with the attendance task force, we've jumped up to 93.8. Um, so that's a that's a positive gain for us. Um, and we're we're hoping to hit 99 94 before we hit the end of the year. So, we'll we'll keep watching that. Um, but that's that's good movement in the right direction. And then just challenges that we always see, especially as a fast growth district, but obviously the growth um renovations, furniture, materials that we need for that, the opening new schools. Luckily, we're not opening one this next fall, but we're planning ahead for the the cost of opening those down the line. um some
095deferred maintenance that the district is needing to do as far as HVAC and and school bus purchases. Um we have a great competitive compensation right now and we want to try to maintain that so that we can continue to recruit especially as we're growing and needing to hire new staff. Um and then of course over since 2019 we've had quite a bit of inflation when it comes to insurance, food, utility type costs. And so just being mindful of that. It's kind of slowed down a little bit and we'll see as long as the tariffs stay at bay perhaps we'll we'll continue to not see super high inflation. So we kind of run a basic especially in February just a basic cost of staffing of what what we think the number of teachers we would need.
096And so when we ran this back in February we were anticipating 60 teachers. So I can add 24 and 36. Um but what we ended up with is we met with teachers and we looked at all of our class sizes and where where those kids were actually falling in the classrooms. Um we landed at 50 teachers and so that's where so we were able to reduce that initial budget um down a little bit and then we look at compensation. And so to do a 1% raise for everyone across the district is around $720,000. Um because of the teacher compensation piece and and the House Bill substitute, I did want to break out what the teacher versus the non-eing positions were. Um just so we'd have that that figure in our head as as far as
097um decisions for the future. And then here's just kind of a list of the projects. And so I added two um to the list. Um we had the initials on the HVAC, the buses, um playgrounds, technology, um data center, and then um two others. We we talked about the athletic improvements today. And another one is the lighting in the fine arts center. Um, this is we've had a I think this quote was brought up um earlier in the year and we the lighting in the auditorium piece is going out and we are not able to repair and replace some of that and so it's something we need to look at doing before it's permanently dark in there. So, so these are these are kind of the project lists that we have as you see. I
098mean there's there's never going to be enough money to fund everything at once but it is just something to kind of keep on the radar. The only other update I would say in regards to that with the playgrounds is is we're looking at Lera Elementary School next year and needing to add portables, um, we would have to do a lot of utility work um, and infrastructure to place them um, on the opposite side of the campus where if we tackled the a playground piece and move the playground, it would it might end up costing the same amount as the utility work that we would need to do to place them elsewhere. there. Um, obviously there are other playgrounds that are in much more need of being replaced with Casterville and and Lacost and some of
099the older school playgrounds. Um, but there is an issue at Lera where we may it may be cost-effective to move it just from a utility standpoint. Um, it's a it's a wastewater. It's a whole a lot of things that would be needed and it will be very likely we will need um portables at that campus next year. And so just as a big picture summary, um, as as I said before, we we're starting at about 9.5 million. That doesn't include, you know, the potential 879,000 that we may gain from additional funding from the legislature. Um, but it and so that piece would be give or take. And then we're looking at about 5 million um of expenses that we've already um somewhat planned for with the positions for growth, the new positions for Creek View.
100Um I did adjust that Creek View number a little bit because I was not accounting for paying people's August salaries in there. And so um in addition to the positions, we're going to have one month that we're going to have to pay everybody um for Creek View. and then um just campus allocations for growth and state spending requirements and those have all been updated based on budget templates that we've received um and gotten in from staff. And so this is kind of where we're at. So taking the 9.5 and taking 5 million, there's about four and a half million um to allocate between compensation and the deferred maintenance and capital projects piece. And so probably our next task is going to be prioritiz talking about compensation and then prioritizing those those pieces of the projects.
101Um and that is kind of where where we were going to leave it and see if you all had any questions and then what we needed to bring back to you all in June. It's really pretty open until we get final legislative updates and yes and final values. So yep. So we yeah we keep using the word preliminary everywhere right now. So, and based on current law. So, so that's kind of Yeah. Do y'all have have anything else that we'll try and like I know there's some gaps in the things that we need to bring back as far as um some of the pricing on some of the projects and so we'll try to get some of that squared away so we can bring those back. Thank you. That's it. Thank you. Thank you. Next,
102we have adjournment. I'll look for a motion. I'm Matt Castleion. Move to adjourn the special board meeting at 8:05 p.m. on May 14th, 2025. I have a motion. Do I have a second? Second. I have a motion and a second. All those in favor, raise your hand. All board members vote it for and we are journed. Thank you.