Budget and finance Ryan Kahlden June 12, 2017

Chapter 41 / Chapter 42 Status What does this mean? All Districts fall under the provisions of either Chapter 41 or Chapter 42 of the Texas Education Code. When wealth (tax values) per WADA (weighted average daily attendance) exceed $319,500, District is subject to provisions of Chapter 41 (Equalized Wealth). Options to Equalize Wealth Combine with another District Detach property to another District Purchase attendance credits from the State of Texas Educate partner District students Tax Base Consolidation

Enrollment and Property Values

EWL Levels

Annual investment report June 2016 - May 2017

Texas Government Code 2256 §2256.005(e) – “The governing body of an investing entity shall review its investment policy and investment strategies not less than annually.” From 2016-2017: Investments beat average 91 day T-bill yield Conducted successful CD rate solicitation (rates still competitive 1 year later) Increased diversification of investments with CDARS program Increase yield without sacrificing cash flows within capital projects For 2017-2018: No recommended changes to investment policy (CDA-Local)

Delivery method for support services annex

Background As part of 2015 bond package, auxiliary buildings that sit on the Wilemon campus are scheduled to be demolished. These buildings house the various trades within the support services department, credit union, and storage. In preparation of these buildings being demolished, we are requesting permission to construct a replacement facility adjacent to the current support services building Estimated cost for new facility is $350,000

Construction Timeline Tonight: Designate delivery method By end of June: Solicit, through RFP or RFQ, interest from firms interested in project. By End of August: Board to award contract on project. By August 2018: Obtain certificate of occupancy and transition all trades from old facilities to new facility By August 2018: Conduct surplus property sale to dispose of excess equipment/materials.

Possible Delivery Methods Design-Build Construction Manager at Risk (CVD) Single entity provides both design and construction services District would retain an architect or engineer independent of design-build firm to as our representative during the project. Publish a Request for Qualifications to select design-build firm. District contracts with architect or engineer for design and construction services. District contracts with construction manager separately to serve as general contractor. One, or two, step proposal/selection process for construction manager at- risk firm.

BUDGET AMENDMENTS

Budget Amendments for WHS Project Pier Reconciliation (1,344 piers) Miller Sierra Construction Allowance of $1.2M in contract for pier casing Change order to authorize $551,932 of allowance for actual piers poured at new WHS site Field Lighting (add 8 light standards) Groves Electrical $390,483 Would provide multi-directional lighting needed to make turf practice facilities covered available for use before school/after sundown

Budget Update #1 June 12, 2017

General Fund Revenues Total Budgeted Revenue: $71,884,820

General Fund Expenditures (by Type) Payroll Expenditures (6100-6199): $57,734,409 Contracted Services (6200-6299): $ 4,828,107 Supplies (6300-6399): $ 3,636,604 Other Operating Expenses: (6400-6499): $ 1,420,062 Debt Service (6500-6599): $ 3,200,000 Capital Outlay (6600-6699): $ 1,065,638 Total Expenditure (Budgeted): $71,884,820

Budget Amendments (to Date) $350,000 to FN 81 for Support Services trades building $150,000 to FN 81 for playground equipment at Dunaway $385,000 to FN 81 for HVAC replacement at Shackelford and Dunaway $318,754 to FN 53 to purchase computers for teachers $57,841 to FN 51 for fire alarms at portable buildings and replace HVAC at Solis $10,490 to FN 81 for replacement of scoreboard at Wilemon field $35,000 to FN 36 for replacement of water damaged equipment and student meals $210,000 to FN 11 for additional special education services $27,000 to FN 31 for additional counselor position (mid-year) $1,500,000 in additional spending on priorities

Budget Timeline March – sent budget templates with allocations “Site based” budgeting – campus leadership making decisions to prioritize their discretionary funds to meet their goals/needs. March / April – held budget meetings with each campus/department April 30, 2017 – received certified estimate of appraised property values May 30, 2017 – Legislature approved biannual budget June 12, June 26, July 10 – Budget updates presented to Trustees July 24, 2017 – Complete budget presented to Trustees August 28, 2017 – Budget presented for adoption by Trustees

Questions and answers