1. 2008-2009 Tax Rate Adoption North East ISD August 11, 2008

2. 2 2008-2009 Certified Tax Roll $2.52 Billion increase in taxable value (10.1%) $2.52 Billion increase in taxable value (10.1%) 2007: $25.06B taxable value 2008: $27.58B taxable value Approximately $950M in new growth Approximately $950M in new growth Approximately $1.57B in increased values on existing properties (6.3%) Approximately $1.57B in increased values on existing properties (6.3%) Source: NEISD Finance

3. 3 Assessed Property Value Tax Years 1988-2008 * Source: NEISD Finance, Kavoussi & Associates * Preliminary Certified for 2008

4. 4 Residential Property Tax Increases Average NEISD Home Value: $154,320 NEISD Tax Rate: $1.4029 Property Taxes Due to NEISD: $2,165 Average NEISD Home Value: $163,622 NEISD Tax Rate: $1.4029 (proposed) Property Taxes Due to NEISD: $2,295 2007-2008 2008-2009 Average home value increased 6% -- Average property tax will increase $130 Tax rate is $1.4029 per $100 of appraised home value. $1.04 is used for M&O (General Fund); $.3629 is only to pay debt. Source: NEISD Finance; Bexar County Appraisal District

5. 5 The New ABCs of Property Taxes Taxpayer writes property tax check for $130 more than they paid last year… $34 …$34 comes to NEISD but can only be used to pay off bonds… $96 …$96 goes to the State. For every $1 in M&O property tax paid due to higher home values, the State takes away $1 in aid to the District. Source: NEISD Finance

6. 6 Target Revenue Combined local property tax revenue & state aid revenue is “locked in” to a specific amount per Weighted Average Daily Attendance (WADA) Combined local property tax revenue & state aid revenue is “locked in” to a specific amount per Weighted Average Daily Attendance (WADA) The target is both a floor & a ceiling The target is both a floor & a ceiling If local property values decline (& property tax revenue declines accordingly), state aid increases to ensure $5,349 total per WADA If local property values decline (& property tax revenue declines accordingly), state aid increases to ensure $5,349 total per WADA If local property values increase (& property tax revenue rises accordingly), state aid decreases to ensure $5,349 total per WADA If local property values increase (& property tax revenue rises accordingly), state aid decreases to ensure $5,349 total per WADA Source: NEISD Finance

7. 7 Target Revenue No additional funding available for inflationary costs; examples: No additional funding available for inflationary costs; examples: Salary increases to keep pace with cost of living Salary increases to keep pace with cost of living Fuel & Utilities Fuel & Utilities Additional funding only possible if: Additional funding only possible if: WADA increases due to enrollment growth WADA increases due to enrollment growth WADA increases due to an improvement in the attendance rate WADA increases due to an improvement in the attendance rate Electorate votes to raise M&O taxes above $1.04 Electorate votes to raise M&O taxes above $1.04 Source: NEISD Finance

8. 8 General Fund State Local Funding Reduction to tax rate/ new “hold-harmless” rules

9. 9 2008-2009 General Fund Adopted Budget

10. 10 2008-2009 Budget General Fund Revenue Source: NEISD Finance 2007-2008Projected % of Total 2008-2009Budget Revenue Local $ 270,571 58.9% $ 293,237 62.5% State187,66840.8%174,22737.2% Federal1,1840.3%1,2010.3% Other Sources 171<0.1%174<0.1% Total Revenue $ 459,594 $ 468,839 (in 000s) $9,245 increase, 2.0%

11. 11 2008-2009 Budget General Fund Expenditures Source: NEISD Finance 2007-2008Projected % of Total 2008-2009Budget Expenditures Salaries/Benefits $ 398,719 83.5% $ 415,891 86.0% Contract Services 35,0167.3%40,1298.3% Supplies17,5473.7%19,1734.0% Other Operating 4,4370.9%7,1601.5% Capital Outlay 13,2942.8%1,3530.2% Other Uses 8,6241.8%90<0.0% Total Expenditures $ 477,637 $ 483,796 (in 000s) $6,159 increase, 1.3%

12. 12 2008-2009 Budget General Fund Summary 2007-2008 Projected 2008-2009 Budget Total Revenue $ 459,594 $ 468,839 Total Expenditures 477,637483,796 Net Increase/(Decrease) to Fund Balance ($ 18,043) ($ 14,957) Beginning Fund Balance 78,93960,896 Ending Fund Balance $ 60,896 $ 45,939 Months of Expenditures in Fund Balance1.51.1 Source: NEISD Finance

13. 13 Fund Balance Fund Balance = Cash Fund Balance = Cash Fund Balance = Savings Fund Balance = Savings Fund Balance = Net difference between total assets and total liabilities at a given point in time Fund Balance = Net difference between total assets and total liabilities at a given point in time Source: NEISD Finance

14. 14 2007-2008 Cash Flows Cash Amount (in/out) in 000s Source: NEISD Finance

15. 15 2008-2009 Cash Position Source: NEISD Finance

16. 16 2008-2009 Debt Service Fund Adopted Budget

17. 17 2008-2009 Budget Debt Service Fund 2007-2008 Forecast 2008-2009 Budget Total Revenue $ 96,639 $ 97,952 Total Expenditures 82,24581,655 Net Increase/(Decrease) to Fund Balance $ 14,394 $ 16,297 Beginning Fund Balance 35,90250,296 Ending Fund Balance $ 50,296 $ 66,593 Source: NEISD Finance In ($000s)

18. 18 Debt Service Fund Balance By Month ($000s) Source: NEISD Finance  BUDGETED

19. 19 2008-2009 Proposed Tax Rates

20. 20 Tax Rate 2007-08General (M&O) $1.0400 2008-09General (M&O) $1.0400* Change in Tax Rate $0.0000 2007-08Debt Service (I&S) $0.3629 2008-09Debt Service (I&S) $0.3629* Change in Tax Rate $0.0000 2007-08Total Tax Rate $1.4029 2008-09Total Tax Rate $1.4029* Change in Tax Rate $0.0000 Proposed 2008-2009 Tax Rates Source: NEISD Finance *Recommended

21. 21 M&O Tax Rate History 08-09 Proposed Rate = $1.04 Source: NEISD Finance Property Value Declines State Proration ■ M&O Tax Rate

22. 22 I&S Tax Rate History Source: NEISD Finance & ME Allison

23. Questions?