PROPOSED BUDGET

Transcription

1 PROPOSED BUDGET RICHARDSON INDEPENDENT SCHOOL DISTRICT Where all students learn, grow and succeed.

2 RICHARDSON INDEPENDENT SCHOOL DISTRICT Richardson, Texas ANNUAL BUDGET FOR FISCAL YEAR From July 1, 2015 to June 30, 2016 BOARD OF TRUSTEES Kim Caston, President Jean Bono Justin Bono Lanet Greenhaw Kristin Kuhne Eron Linn Kris Oliver APPOINTED OFFICIALS Dr. Kay Waggoner, Superintendent Patti Kieker, Deputy Superintendent Tony Harkleroad, Deputy Superintendent, Finance and Support Services Tabitha Branum, Assistant Superintendent, Secondary Schools Dr. Chris Goodson, Assistant Superintendent, Elementary Schools Dr. Fernando Medina, Assistant Superintendent, Human Resources Sandra Hayes, Assistant Superintendent, Technology Mia Martin, General Counsel Karah Womack, Executive Director, Communications and Public Affairs For questions regarding budget or financial information, contact: Tony Harkleroad, Deputy Superintendent, Finance and Support Services

3 Table of Contents Superintendent s Budget Message... 1 Legal Notice of Budget Hearing... 2 Budget and Tax Rate Adoption Calendar... 3 Budget Overview... 4 Financial Forecasts... 5 Employee Compensation Proposed Budget Operating Fund Child Nutrition Fund Debt Service Fund Miscellaneous Statistics and Analysis... 30

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5 NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE The Richardson Independent School District will hold a public meeting at 6:30pm, June 22, 2015 in the Administration Building Auditorium, 400 S Greenville Ave, Richardson Texas. The purpose of this meeting is to discuss the school district's budget that will determine the tax rate that will be adopted. Public participation in the discussion is invited. The tax rate that is ultimately adopted at this meeting or at a separate meeting at a later date may not exceed the proposed rate shown below unless the district publishes a revised notice containing the same information and comparisons set out below and holds another public meeting to discuss the revised notice. Maintenance Tax $ /$100 (proposed rate for maintenance and operations) School Debt Service Tax $ /$100 (proposed rate to pay bonded indebtedness) Approved by Local Voters Comparison of Proposed Budget with Last Year's Budget The applicable percentage increase or decrease (or difference) in the amount budgeted in the preceding fiscal year and the amount budgeted for the fiscal year that begins during the current tax year is indicated for each of the following expenditure categories. Maintenance and operations Debt Service 3.54 % increase 6.44 % increase Total expenditures 3.97 % increase Total Appraised Value and Total Taxable Value (as calculated under Section 26.04, Tax Code) Total appraised value* of all property Preceding Tax Year Current Tax Year $20,058,890,911 $21,601,491,134 Total appraised value* of new property** $157,345,949 $219,979,536 Total taxable value*** of all property $17,023,572,244 $17,963,727,977 Total taxable value*** of new property** $157,345,949 $219,979,536 *Appraised value is the amount shown on the appraisal roll and defined by Section 1.04(8), Tax Code. ** "New property" is defined by Section (17), Tax Code. *** "Taxable value" is defined by Section 1.04(10), Tax Code. Bonded Indebtedness Total amount of outstanding and unpaid bonded indebtedness* $414,619,987 *Outstanding principal. Comparison of Proposed Rates with Last Year's Rates Maintenance & Interest & Local Revenue State Revenue Operations Sinking Fund* Total Per Student Per Student Last Year's Rate $ $ * $ $6,351 $2,533 Rate to Maintain Same Level of Maintenance & Operations Revenue & Pay Debt Service $ $ * $ $6,578 $2,462 Proposed Rate $ $ * $ $6,590 $2,462 *The Interest & Sinking Fund tax revenue is used to pay for bonded indebtedness on construction, equipment, or both. The bonds, and the tax rate necessary to pay those bonds, were approved by the voters of this district. Comparison of Proposed Levy with Last Year's Levy on Average Residence Average Market Value of Residences Last Year This Year $206,135 $220,758 Average Taxable Value of Residences $170,522 $173,683 Last Year's Rate Versus Proposed Rate per $100 Value $ $ Taxes Due on Average Residence $2, $2, Increase (Decrease) in Taxes $42.36 Under state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older or of the surviving spouse of such a person, if the surviving spouse was 55 years of age or older when the person died, may not be increased above the amount paid in the first year after the person turned 65, regardless of changes in tax rate or property value. Notice of Rollback Rate: The highest tax rate the district can adopt before requiring voter approval at an election is $ This election will be automatically held if the district adopts a rate in excess of the rollback rate of $ Fund Balances The following estimated balances will remain at the end of the current fiscal year and are not encumbered with or by a corresponding debt obligation, less estimated funds necessary for operating the district before receipt of the first state aid payment. Maintenance and Operations Fund Balance(s) $83,026,306 Interest & Sinking Fund Balance(s) $17,332,653 2

6 Budget and Tax Rate Adoption Calendar September 2014 through June Ongoing budget status meetings with the Superintendent and Superintendent s Council. September 2014 through June Board of Trustees legislative, alternative funding, bond and budget status monthly reports. October 6 - Board of Trustees Financial Integrity Rating System of Texas hearing and discussion. November 2014 through June Board of Trustees Budget Committee meetings to review budget proposals/projections and provide input to staff. November 3 - Board of Trustees acceptance of Comprehensive Annual Financial Report. December 8 Board of Trustees budget discussion. January 12 - Board of Trustees budget and demographic update discussion. February 12 Budget Review Team (BRT) meeting to discuss budget and compensation. February 16 Board of Trustees budget discussion. March 23 Board of Trustees budget and compensation discussion. April 6 Board of Trustees budget discussion and legislative updates. April 20 Board of Trustees budget discussion and legislative updates. April 23 and 24 - Discussions with Moody s and Standard & Poor s rating agencies (reported to the Board of Trustees). April 30 - Dallas Central Appraisal District certifies and delivers estimated appraisal roll. May 18 - Board of Trustees budget discussion and legislative updates. June 1 - Board of Trustees budget and compensation discussion. June 22 - Board of Trustees meeting and public hearing on the proposed budget and tax rate. Board of Trustee budget adoption, tax rate adoption, and approval of final end of year budget amendments and acceptance of the preliminary estimated certified tax roll. 3

7 Richardson Independent School District Budget Overview The District s vision, mission, and goals are as follows: Vision: Mission: Goals: Where all students learn, grow and succeed. To serve and prepare all students for their global future. Goal 1: Students are highly engaged in their educational life. Goal 2: Profound Curriculum is the foundation for learning. Goal 3: RISD has high performing, student focused teachers. Goal 4: RISD ensures excellence in operations. We believe that the budget process and proposed budget support our Vision, Mission, and Goals by evaluating available resources and focusing them on these issues. The district is required to adopt budgets for the General or Operating Fund, Child Nutrition Fund, and Debt Service Fund. Discussions in the Budget Overview will focus on the Operating Fund, unless noted otherwise, as this is the primary fund for the district and is the only fund currently subject to limitations from the school finance system and wealth equalization. The district faces a number of financial challenges and has developed a variety of strategies to address them, including: A comprehensive multi-year financial plan, Annual analysis of peer district comparative financial data, Engaged stakeholder groups in the budget process, Interaction with Superintendent and the Board of Trustees (see adoption calendar for details) regarding budget throughout the year. The multi-year financial plan allows staff to be more proactive versus reactive regarding anticipated revenues, expenditures, and fund balance. The current multi-year financial plan, including assumptions for enrollment, taxable values, revenues, expenditures, and fund balance is as follows: 4

8 Total Projected Revenue 288,695, ,222, ,018, ,545, ,576, ,283,712 Total Projected Expenditures 286,174, ,189, ,868, ,123, ,903, ,707,445 Total Projected Recapture Projected Salary Increases 6,025,923 6,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Projected New Staff Allocations 2,798,188 3,134, , , Fund Balance as a % of expenses 28.40% 27.11% 26.49% 26.02% 25.67% 25.30% Enrollment used to calculate revenue 38,623 39,107 39,686 40,322 40,866 41, enrollment figure is as of the final fall PEIMS snapshot submission, and subsequent years reflect projected enrollment growth from the January 2015, demographic report. In addition to enrollment growth, revenue calculations noted above reflect an increase in state aid due to changes in average attendance rates and student sub-populations as well as increases in the Basic Allotment and Austin Yield passed by the 2015 Legislature. 5 Richardson ISD Multi Year Financial Plan Executive Summary Projected Other Adjustments (includes savings from open positions/turnover, projected cost increases for fuel, utilities, etc.) 1,452, ,109 (1,070,609) (1,245,197) (1,220,293) (1,195,887) Reductions/(Increases) Needed to Maintain Balanced Budget Ending Fund Balance assuming no reductions are generated to offset projected deficits (2,521,550) (33,394) (149,730) (421,665) (672,736) (576,267) 81,259,644 80,293,038 79,442,768 78,864,433 78,537,169 78,113,436

9 Richardson ISD Multi Year Financial Plan M&O BUDGET PROJECTIONS Maintenance & Operations (Operating) Projected Tax Base 17,434,438,190 18,131,815,718 18,494,452,032 18,679,396,552 18,679,396,552 18,679,396,552 2 M & O Tax Rate per $100 of value Gross Projected Tax Levy (line 1 x line 2) 174,344, ,318, ,944, ,793, ,793, ,793,966 4 Projected Levy lost due to over 65 exemptions 6,000,289 6,000,289 6,000,289 6,000,289 6,000,289 6,000,289 5 Gross Levy net of over 65 affect (line 3-line 4) 168,344, ,317, ,944, ,793, ,793, ,793,677 6 Projected Tax Collection Rate Net current year tax revenue (line 5 x line 6) 164,977, ,811, ,365, ,177, ,177, ,177,803 8 Delinquent tax payments 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 1,250,000 9 Tax penalties and interest 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000, Enrichment Tax Revenue - Local Collections 6,842,843 7,116,556 7,258,888 7,331,476 7,331,476 7,331, Total Tax Revenue (add lines 7 through 10 ) 174,070, ,178, ,874, ,759, ,759, ,759, Other Revenue Sources 13 Other Local Revenue 8,032,187 8,084,247 8,084,247 8,084,247 8,084,247 8,084, State Aid Including Hold Harmless 89,363,197 89,730,028 89,829,588 91,471,281 94,502,059 97,209, TRS On-Behalf 13,957,168 13,957,168 13,957,168 13,957,168 13,957,168 13,957, Federal Revenue 3,273,315 3,273,315 3,273,315 3,273,315 3,273,315 3,273,315 Total Other Revenue Sources (sum of lines 13 through 16) 114,625, ,044, ,144, ,786, ,816, ,524, Projected Revenue (line11 + line 17) 288,695, ,222, ,018, ,545, ,576, ,283, Projected Expenditures 286,174, ,189, ,868, ,123, ,903, ,707, Projected Recapture (from Schedule A) Projected Expenditures less recapture (line 20 - line 22) 286,174, ,189, ,868, ,123, ,903, ,707, Projected Budget Changes: 27 Salary Raises 6,025,923 6,000,000 4,000,000 4,000,000 4,000,000 4,000, New Staff Allocations 2,798,188 3,134, , , Other Adjustments 1,452, ,109 (1,070,609) (1,245,197) (1,220,293) (1,195,887) 30 Reduction/(increase) to maintain balanced budget (2,521,550) (33,394) (149,730) (421,665) (672,736) (576,267) Expenditures for include all recurring budget increases up to and including those in the June 2015 Budget Status Report. 6

10 Operating Fund Balance Analysis 2 Beginning Fund Balance 79,738,094 81,259,644 80,293,038 79,442,768 78,864,433 78,537,169 3 % of total expenditures 27.86% 27.44% 26.78% 26.21% 25.78% 25.44% 4 Budget surplus/(deficit) 2,521,550 33, , , , ,267 5 Revenue increases/budget reductions 6 Ending Fund Balance 82,259,644 81,293,038 80,442,768 79,864,433 79,537,169 79,113,436 7 % of total expenditures 28.74% 27.45% 26.83% 26.35% 26.00% 25.63% 8 9 Proposed uses of fund balance: 10 Employee Compensation 11 Instructional Enhancement Fund 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000, Instructional Programs/Capital Projects 13 Permanent School Fund 14 Total (add lines 10 through 12) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000, Proposed Ending Fund Balance 81,259,644 80,293,038 79,442,768 78,864,433 78,537,169 78,113, % of total expenditures 28.40% 27.11% 26.49% 26.02% 25.67% 25.30% Note - we will try to manage fund balance to sustain between 21.5 and 23.5% (range was 20-22% prior to 2009 HB 3646). Line 4 represents the difference between total revenue and total expenses from the Budget Projections sheet. Projected deficits can be eliminated/reduced by implementing options to increase revenues or decrease other expenses. This simply reflects impact if no action is taken, but this would not necessarily be the recommendation from staff. NOTE: We will need to maintain fund balance designations for extraordinary repairs in the event the capital expenses in the summer of 2015 exceed available bond funds. 7 Richardson ISD Multi Year Financial Plan OPERATING FUND BALANCE

11 It is important that readers understand where district revenue comes from and how funds are spent, particularly in the Operating Fund, since it is subject to revenue limitations under current school finance legislation. Comparison of Revenues and Expenditures Legislative Impact on School Finance School finance was a major issue during the 2015 legislative session, but ultimately was secondary to the legislature s desire to provide some form of tax relief. House Bill (HB) 1 increases funding for public education, but does not address shortcomings in school finance identified through the most recent court ruling. Background House Bill (HB) 1 from 2006 made significant changes to the Texas Education Code that focused on school property tax rate reduction. HB 1 also created revenue limitations using retained revenue levels to establish a target revenue level for each district. The 2009 legislative session made some school finance adjustments through HB 3646 that basically retained the structure from HB 1 as to revenue limitations and target revenue, but provided limited added funding to districts. The following is a summary of the main points of HB Districts are guaranteed or held harmless to an amount of revenue at least equal to the state and local target revenue per weighted pupil established under HB 1 plus at least $120 per weighted pupil in new funds. This equaled about $4.9 million for RISD; however, districts were required to use much of the added funds to pay for an added mandatory pay raise for staff. 8

12 The equalized wealth level for taxes up to the compressed rate (which for our district is $1.00) increased to approximately $476,500 for , $481,900 for , and $487,300 in and This means that the district will not make a recapture payment since our wealth level per weighted student falls below this level. While recapture fell, state revenue fell by an equal amount, and we had no net gain in available revenue from this change. The first six cents above the compressed rate are equalized to the Austin ISD yield. The equalized wealth level for operating tax rates after that remains at $319,500. Texas elected to fund the cost of HB 3646 and balance their budget using federal stimulus dollars, which were only available for two years and the margins tax created to offset reductions in school property tax generated lower than projected revenue. These decisions contributed to the massive State budget deficit in This deficit coupled with the Legislative leadership s desire to not raise taxes or access the rainy day fund, meant that the 2011 Legislative session included a number of possible funding reductions to education. Our Board and Administration started developing budget reduction strategies for several different scenarios of funding loss using input from our staff and community. We prioritized reductions to consider and refined the scenarios as the legislative session progressed. The 2011 Legislative session ended with an appropriations bill that cut funding for public education by approximately $5.4 billion over the biennium. However the session ended with no resolution as to how this funding reduction would be distributed to districts. The Governor called a special session to attempt to address school funding; however, we were required to adopt our budget prior to any resolution on school funding from the special session. Using what we felt was the most likely scenario, our budget for assumed a loss of $20 million in state funding. The special session focused on two methods of implementing reductions to education. One involved across the board reductions for all districts and another focused reductions more heavily on districts with higher target revenue levels. The end result was the passage of SB1 which provided somewhat of a compromise. For RISD, the primary effects of SB1 were a 7.61% reduction in the regular program allotment in Tier I for and a 2% reduction in Reductions to the regular program allotment have the effect of reducing the district s weighted average daily attendance (WADA). Our Additional State Aid for Tax Relief (ASATR) was also reduced by 7.65% starting in , which means our hold harmless funds were reduced starting in This equated to a loss of $14.2 million and $21.7 million in funding for and , respectively. The bill stipulates that ASATR will be eliminated by 2017, but does not specify how this will occur. We were in a much stronger financial position than most districts due to the conservative approach of our Board of Trustees and administration over the years. While we made reductions, we were able to avoid the large layoffs and major program reductions that many other districts made during this time. 9

13 The Texas House and Senate considered various public school funding options during the 2013 session, and the end result was passage of SB1. Key funding increases in SB1 included $3.4 billion added to funding distributed by the following: increase the Regular Program Allotment Factor to 1 increase the basic allotment from $4,765 to $4,950 in and $5,040 in reduce target revenue hold harmless by $282 million in and $417 million in includes $838.7 million in funding for instructional materials already required under statute increase Student Success Initiative funding by $24 million This amounted to additional net State funding for RISD of approximately $8 million. Current - RISD is a plaintiff district in litigation against the State regarding the adequacy of the school finance system. While District Judge Dietz has issued a ruling in our favor, the State has appealed the case to the Texas Supreme Court. A ruling is not expected until later in 2015 or early In the 2015 session, the House Public Education Committee attempted to address at least portions of the antiquated school finance system and provide significant additional funds for public education, while including tax relief in the form of lower franchise and sales tax. The Senate was more focused on tax relief than on overhauling the current school finance system. The Senate bills included a smaller increase in funding for public education and tax relief in the form of lower franchise tax and an increase in the state mandated homestead exemption. Senate leaders were reluctant to attempt an overhaul of the current school finance system until the Texas Supreme Court issues a final ruling on the school finance litigation noted earlier. The final approved version of HB 1 is closer to the Senate s version of school funding and tax relief than to what was proposed by the House and includes an increase in the basic allotment within the funding formula and an increase in the guaranteed yield for enrichment pennies. The net effect is an increase in funding of approximately $5,274,000 for RISD starting in None of the last several legislative sessions have produced a solution to the issue of adequate school funding. State sponsored adequacy studies and school finance proposals have largely been based on what the State could afford to fund or was willing to fund versus what it actually costs to educate to the current mandates. The district will continue to work with our legislators to try to improve funding. Enrollment One of our most significant challenges involves projecting enrollment. Our actual enrollment for was in line with projections by Templeton Demographics. Templeton provided updated projections to the Board in January 2015 for a ten year period, and these have been incorporated into our multi-year financial plan. While enrollment is projected to grow, it will be at a more modest rate. 10

14 The district has conducted campus capacity reviews in areas with the highest enrollment growth and identified schools to increase instructional space in order to serve more students at their neighborhood school. Construction of additional space has begun at Prairie Creek Elementary and is projected to be complete by the start of school in Recapture Current school finance laws involve property wealth equalization (also known as recapture) that is tiered depending on the operating tax rate for a district. A complex system of weights for certain student populations; allotments/adjustments; cost of education index; etc. is used to establish the amount of revenue retained. RISD s current wealth level falls below the equalized wealth levels for our current operating tax rate. Based on the current formula and wealth levels, RISD would only pay recapture if the operating tax rate were increased above $1.06. This does not result in increased retained revenue since earlier decreases in recapture were simply offset by reductions in state revenue. RISD has sent over $420.1 million to the State in Recapture payments as follows: History of Recapture Payments Under the Robin Hood Plan 11

15 Competitive Pay for All District Employees We monitor other district s salary schedules regularly and make necessary modifications to our salary schedules to remain competitive. The Human Resources Department aggressively seeks top teachers, including beginning teachers, by offering open contracts as early in the hiring process as possible. An open contract guarantees the teacher a position within RISD although the school assignment will be determined later. This practice allows the district to retain the most qualified candidates and balance the average experience for staff. We modified our teacher compensation schedule several years ago, moving away from a step schedule for RISD veteran teachers. These teachers receive compensation increases as approved by the Board of Trustees. We developed a hire-in schedule for teachers joining the district. This compensation structure allows us to provide higher compensation to teachers who have been with the district versus those newly hired. Details of Increased Employee Compensation for the Fiscal Year: The proposed budget for includes funds to provide eligible staff with a 3% increase in base salary at an estimated total operating cost of $6 million. The estimated operating cost reflects the cost of raises to staff funded from the general operating fund. Raises to staff whose salary is funded from sources other than the operating fund will be paid from the same source used to fund their base pay. Teacher-Type employees are teachers, counselors, nurses, and librarians. The salary adjustment is the greater of a 3% increase in base salary or the increase in the hire-in schedule. Employees must receive an evaluation rating of at least satisfactory to receive the increase. Administrative and Support Staff will receive the greater of a 3% salary adjustment from base pay or the assigned competency step adjustment based on years of experience in their respective positions. Employees must receive an evaluation rating of at least meets expectations or satisfactory on their last evaluation to receive the salary increase. The proposed budget includes an additional $500,000 in district contribution towards the cost of medical coverage for employees to partially offset projected premium increases. The district will provide a $2,000 critical need stipend to full time secondary math, secondary science, Languages Other Than English (LOTE), and special education teachers for This stipend will be subject to annual review of critical needs areas, annual review of available funding, and other factors as identified by the district and Board of Trustees. Property Values The Dallas Central Appraisal District (DCAD) provides an estimated preliminary certification of property values by the end of April each year and then certified property values in July. DCAD then provides monthly updates to the certified roll throughout the year to reflect changes in exemptions, value protest resolutions, etc. 12

16 Property values for calculating operating revenue under the State funding formula are based on the Texas Comptroller s property tax determination of value each year, which are generally higher than DCAD values. The district works though a multi-step appeal process each year in order to receive what is referred to as local value or the DCAD valuation. Ideally the appeal process would be resolved by the end of the fiscal year, but it can take years to resolve in some instances. The Comptroller does not include the local optional homestead exemption impact. The district s multi-year financial plan projections involve expectations as to the final tax roll that we use to collect tax levy and the Comptroller s value to determine operating revenue from the State. Changes in taxable value estimates have no net recurring impact on the operating budget due to the limitations imposed by the school finance system. Currently, if tax revenues go up or down then State aid changes, and we receive the same net recurring amount per weighted student. Changes in DCAD property values do have a direct impact on debt service revenue as this fund is not subject to wealth equalization or the Comptroller s valuation preliminary values received are 10.1% higher than current estimated final values. While this is encouraging, values will fall due to protests by the end of the year and final assessed values. The district has lost an average of 6.5% from the preliminary values to the final values over a 10 year period, with a high of a 10.3% loss and a low of a 3.7% loss. We are projecting a 4% increase in , 2% in , 1% in and then flat for 2018 through This is higher than previously projected and will provide additional future bond capacity without raising the debt tax rate and/or protection from interest rate risks on future bonds. RISD remains one of the few districts that continue to provide a local optional homestead exemption to our residential taxpayers. This, combined with a moderate debt tax rate, results in one of the lowest tax levies for our taxpayers of any district in the metroplex (a comparison of tax impact on property owners is provided later in the document) Budget Recommendations While our approach to budgeting has been more conservative than many of our peer districts, we believe it created the most stability for our staff and represented the most sustainable approach for our community. This conservative approach put us in a much stronger financial position than many districts, contributing to our high credit rating, balanced sustainable budget, low tax levy compared to area districts, strong reserves and ability to avoid major layoffs. The proposed budget for continues to include a more aggressive approach to revenue than in prior years. Revenue calculations use the exact enrollment projections from the demographer with no buffer for negative variance and a more aggressive attendance estimate. Calculations also include a more aggressive estimate of the guaranteed yield for enrichment pennies (also referred to as the Austin yield). This means that negative variances from items such as lower than projected enrollment growth will have to be funded from positive variances on expenses or from the operating fund balance. Alternatives involving immediately increasing the tax burden on our community or exhausting our reserves are not recommended at this time.

17 Budget Increase Recommendations 14

18 15 The remainder of this document contains details as to proposed budgets by fund and function and miscellaneous statistics and analysis. Please feel free to contact our offices with questions. Thank you.

19 PROPOSED BUDGET The Proposed Budget is presented for the Operating Fund, the Child Nutrition Fund and the Debt Service Fund. 16

20 RICHARDSON INDEPENDENT SCHOOL DISTRICT PROPOSED BUDGET FISCAL YEAR Child Debt Total by Operating Nutrition Service Enrolled Fund Fund Fund Total Student* Estimated Revenues Local Revenue 189,262,314 4,985,821 52,326, ,574,673 6,305 State Revenue 103,687,196 88, ,775,431 2,654 Federal Revenue 3,273,315 11,646,710 14,920, Total Revenues 296,222,825 16,720,766 52,326, ,270,129 9,341 Appropriations 11 - Instruction 188,841, ,841,067 4, Library & Media Services 5,261,207 5,261, Curriculum/Instructional Staff Development 4,241,104 4,241, Instructional Administration 4,734,059 4,734, School Leadership 21,125,102 21,125, Guidance and Counseling 14,796,303 14,796, Attendance and Social Work 907, , Health Services 4,403,908 4,403, Student Transportation 4,773,993 4,773, Child Nutrition 16,572,509 16,572, Co-Curricular / Extra Curricular Activities 6,037,153 6,037, General Administration 7,866,660 7,866, Plant Maintenance & Operations 25,361, ,257 25,504, Security and Monitoring Services 1,566,613 1,566, Data Processing Services 5,106,737 5,106, Community Services 176,894 5, , Debt Administration 9,941 51,867,892 51,877,833 1, Juvenile Justice Alternative Education Program 50,000 50, Tax Increment Fund 241, , Other Intergovernmental Charges 929, , Total Appropriations 296,189,431 16,720,766 52,109, ,019,739 9,334 *Based on enrollment projection of 39,107 students 17

21 Payroll Prof. & Materials & Other Oper. Debt Capital Costs Cont. Svcs. Supplies Expenses Service Outlay Total Function 11 - Instruction 199 Operating Fund 184,222, ,793 3,303, , ,841, Child Nutrition Debt Service Total for Function ,222, ,793 3,303, , ,841,067 Function 12 - Library & Media Services 199 Operating Fund 4,941,912 25, ,986 47, ,261, Child Nutrition Debt Service Total for Function 12 4,941,912 25, ,986 47, ,261,207 Function 13 - Curriculum/Instructional Staff Development 199 Operating Fund 3,571, , , , ,241, Child Nutrition Debt Service Total for Function 13 3,571, , , , ,241,104 Function 21 - Instructional Administration 199 Operating Fund 4,199, , ,857 75, ,734, Child Nutrition Debt Service Total for Function 21 4,199, , ,857 75, ,734,059 Function 23 - School Leadership 199 Operating Fund 20,826, , ,785 39, ,125, Child Nutrition Debt Service Total for Function 23 20,826, , ,785 39, ,125,102 RICHARDSON INDEPENDENT SCHOOL DISTRICT EXPENDITURE BUDGET 18

22 Payroll Prof. & Materials & Other Oper. Debt Capital Costs Cont. Svcs. Supplies Expenses Service Outlay Total Function 31 - Guidance and Counseling 199 Operating Fund 14,190, , ,161 55,165 50,000 14,796, Child Nutrition Debt Service Total for Function 31 14,190, , ,161 55,165-50,000 14,796,303 Function 32 - Attendance and Social Work 199 Operating Fund 869,670 8,110 24,348 5, , Child Nutrition Debt Service Total for Function ,670 8,110 24,348 5, ,417 Function 33 - Health Services 199 Operating Fund 4,156, ,600 71,608 7, ,403, Child Nutrition Debt Service Total for Function 33 4,156, ,600 71,608 7, ,403,908 Function 34 - Student Transportation 199 Operating Fund 512,416 4,158,112 72,815 30, ,773, Child Nutrition Debt Service Total for Function ,416 4,158,112 72,815 30, ,773,993 Function 35 - Child Nutrition 199 Operating Fund Child Nutrition 6,625, ,276 9,444,408 60, ,000 16,572, Debt Service Total for Function 35 6,625, ,276 9,444,408 60, ,000 16,572, RICHARDSON INDEPENDENT SCHOOL DISTRICT EXPENDITURE BUDGET

23 Payroll Prof. & Materials & Other Oper. Debt Capital Costs Cont. Svcs. Supplies Expenses Service Outlay Total Function 36 - Co-Curricular/Extra Curricular 199 Operating Fund 4,488, , , , ,037, Child Nutrition Debt Service Total for Function 36 4,488, , , , ,037,153 Function 41 - General Administration 199 Operating Fund 6,050, , , , ,866, Child Nutrition Debt Service Total for Function 41 6,050, , , , ,866,660 Function 51 - Plant Maintenance & Operations 199 Operating Fund 14,964,569 8,007,430 1,891, , ,361, Child Nutrition 143, , Debt Service Total for Function 51 15,107,826 8,007,430 1,891, , ,504,633 Function 52 - Security/Monitoring Services 199 Operating Fund 479,008 1,076,705 10, ,566, Child Nutrition Debt Service Total for Function ,008 1,076,705 10, ,566,613 Function 53 - Data Processing Services 199 Operating Fund 3,984,570 1,033,807 58,598 29, ,106, Child Nutrition Debt Service Total for Function 53 3,984,570 1,033,807 58,598 29, ,106,737 RICHARDSON INDEPENDENT SCHOOL DISTRICT EXPENDITURE BUDGET 20

24 Payroll Prof. & Materials & Other Oper. Debt Capital Costs Cont. Svcs. Supplies Expenses Service Outlay Total Function 61 - Community Services 199 Operating Fund 176, , Child Nutrition 5, , Debt Service Total for Function , ,894 Function 71 - Debt Administration 199 Operating Fund ,941-9, Child Nutrition Debt Service ,867,892-51,867,892 Total for Function ,877,833-51,877,833 Function 95 - Payments of JJAEP 199 Operating Fund - 50, , Child Nutrition Debt Service Total for Function 95-50, ,000 Function 97 - Tax Increment Fund 199 Operating Fund Child Nutrition Debt Service 241, ,650 Total for Function , ,650 Function 99 - Other Intergovernmental Charges 199 Operating Fund - 929, , Child Nutrition Debt Service Total for Function , ,897 Grand Total 274,408,269 18,502,730 16,522,714 3,525,193 51,877, , ,019, Operating Fund 267,634,687 18,193,454 7,078,306 3,223,043 9,941 50, ,189, Child Nutrition 6,773, ,276 9,444,408 60, ,000 16,720, Debt Service ,650 51,867,892-52,109, RICHARDSON INDEPENDENT SCHOOL DISTRICT EXPENDITURE BUDGET

25 OPERATING FUND The Operating Fund is the fund where most expenditures are recorded for the operation of the schools and central offices. Expenditures paid from this fund include teachers and administrators salaries and benefits, classroom supplies and equipment, educational computing, utilities, routine maintenance of buildings and transportation costs. The maintenance and operations budget is included in the Operating Fund. Also included in the Operating Fund are budgets for tuition based programs and co-curricular activities. 22

26 RICHARDSON INDEPENDENT SCHOOL DISTRICT PROPOSED BUDGET - OPERATING FUND FISCAL YEAR Estimated Revenues Adopted Increases Proposed Percent of Percentage Budget (Decreases) Budget Total Change Local Revenue 179,854,160 9,408, ,262, % 5.23% State Revenue 104,942,021 (1,254,825) 103,687, % (1.20%) Federal Revenue 2,808, ,000 3,273, % 16.56% Total Revenues 287,604,496 8,618, ,222, % 3.00% Appropriations 11 - Instruction 183,565,650 5,275, ,841, % 2.87% 12 - Library & Media Services 5,143, ,564 5,261, % 2.29% 13 - Curriculum/Instructional Staff Development 3,418, ,904 4,241, % 24.07% 21 - Instructional Administration 5,184,605 (450,546) 4,734, % (8.69%) 23 - School Leadership 20,526, ,044 21,125, % 2.92% 31 - Guidance and Counseling 10,987,265 3,809,038 14,796, % 34.67% 32 - Attendance and Social Work 808,754 98, , % 12.20% 33 - Health Services 3,950, ,180 4,403, % 11.47% 34 - Student Transportation 4,463, ,202 4,773, % 6.95% 36 - Co-Curricular/Extra Curricular Activities 5,876, ,688 6,037, % 2.73% 41 - General Administration 7,633, ,295 7,866, % 3.06% 51 - Plant Maintenance & Operations 25,458,177 (96,801) 25,361, % (0.38%) 52 - Security and Monitoring Services 1,553,565 13,048 1,566, % 0.84% 53 - Data Processing Services 4,800, ,679 5,106, % 6.39% 61 - Community Services 171,690 5, , % 3.03% 71 - Debt Administration 9,941-9, % 0.00% 95 - Payments to JJAEP 50,000-50, % 0.00% 99 - Other Intergovernmental Charges 896,510 33, , % 3.72% Total Appropriations 284,498,465 11,690, ,189, % 4.11% 23

27 RICHARDSON INDEPENDENT SCHOOL DISTRICT OPERATING FUND BUDGET - ESTIMATED REVENUES FISCAL YEAR Adopted Increases Proposed Percent of Percentage Budget (Decreases) Budget Total Change Local Sources: Property Taxes 5711 Property Taxes-Current Year 162,000,755 9,810, ,811, % 6.06% 5711 Property Taxes-Enrichment Tax-Local Collections 6,558, ,338 7,116, % 8.51% 5712 Property Taxes-Prior Years 1,750,000 (500,000) 1,250, % (28.57%) 5719 Penalty & Interest 1,200,000 (200,000) 1,000, % (16.67%) Total Property Taxes 171,508,973 9,669, ,178, % 5.64% Fees & Tuitions 5739 Fees & Tuition 4,689,187 54,060 4,743, % 1.15% Enterprising Activities 5752 Game Receipts-All Sports 510, , % 0.00% Miscellaneous Revenues 5742 Investment Income 575, , % 0.00% 5759 Athletic Concession Commission 80,000-80, % 0.00% 5743 Rentals on Facilities 1,846,000-1,846, % 0.00% 5744 Gifts 20,000-20, % 0.00% 5745 Theft and Vandalism 10,000-10, % 0.00% 5749 Other Misc. Income 615,000 (315,000) 300, % (51.22%) Total Other Local Revenues 8,345,187 (260,940) 8,084, % (3.13%) Total Local Sources 179,854,160 9,408, ,262, % 5.23% State Sources: 5811/5812State Aid Including Hold Harmless & Salary Transitional Entitlement 90,984,853 (1,254,825) 89,730, % (1.38%) 5831 TRS On Behalf 13,957,168-13,957, % 0.00% Total State Sources 104,942,021 (1,254,825) 103,687, % (1.20%) Federal Sources: 5929 Miscellaneous Federal 600, ,000 1,065, % 77.50% 5931 School Health and Related Services 2,208,315-2,208, % 0.00% Total Federal Sources 2,808, ,000 3,273, % 16.56% Total Operating Fund 287,604,496 8,618, ,222, % 3.00% 24

28 CHILD NUTRITION FUND The Child Nutrition Fund is where revenues and expenditures are recorded for the school lunch and breakfast program. Expenditures of the Child Nutrition Fund are funded from lunch and breakfast sales, state grants and federal grants. This fund is included with other Special Revenue Funds. 25

29 RICHARDSON INDEPENDENT SCHOOL DISTRICT PROPOSED BUDGET - CHILD NUTRITION FUND FISCAL YEAR Adopted Increases Proposed Percent of Percentage Budget (Decreases) Budget Total Change Revenue 5751 Cafeteria Sales 4,863, ,126 4,970, % 2.20% 5742 Investment Income 15,000-15, % 0.00% 5829 State Reimbursements 88,332 (97) 88, % (0.11%) 5920 Federal Reimbursements 11,606,851 39,859 11,646, % 0.34% Total Revenue 16,573, ,888 16,720, % 0.89% Expenditures 35 Food Service Payroll 5,757, ,105 6,625, % 15.08% Contracted Services 477,276 (168,000) 309, % (35.20%) Materials & Travel 9,691,747 (186,839) 9,504, % (1.93%) Capital Outlay 140,000 (7,000) 133, % (5.00%) 51 Plant Maintenance & Operations Payroll 108,667 34, , % 31.83% Contracted Services 388,968 (388,968) % (100.00%) 61 Community Service Payroll 10,000 (5,000) 5, % (50.00%) Total Expenditures 16,573, ,888 16,720, % 0.89% 26

30 DEBT SERVICE FUND The Debt Service Fund contains monies that are set aside to pay principle and interest on debt incurred through the sale of bonds. The proceeds from bonds are used to finance long-term improvements to school buildings as well as to build and equip new schools. 27

31 RICHARDSON INDEPENDENT SCHOOL DISTRICT PROPOSED BUDGET - DEBT SERVICE FUND FISCAL YEAR Adopted Increases Proposed Percent of Percentage Budget (Decreases) Budget Total Change Revenue Property Taxes-Current Yr. 47,765,816 3,634,072 51,399, % 7.61% Property Taxes-Prior Yrs. 500,000 (150,000) 350, % (30.00%) Penalty & Interest 300, , % 0.00% Property Taxes-TIF 132, , , % 82.17% Total Property Taxes 48,698,466 3,593,072 52,291, % 7.38% 5742 Investment Earnings 35,000-35, % 0.00% Total Revenue 48,733,466 3,593,072 52,326, % 7.37% Debt Service Requirements Debt Payments 48,589,065 3,278,827 51,867, % 6.75% TIF Payments 132, , , % 82.17% Total Debt Service Requirements 48,721,715 3,387,827 52,109, % 6.95% Principal Interest Payments Payments Other Amounts Total Detailed Debt Service to be Paid to be Paid to be Paid Payment Bonds, Series 1998B 4,185, ,013 1,000 4,322,013 Refunding Bonds, Series ,000 1,000 Bonds, Series ,000 1,000 Refunding Bonds, Series , ,140 1,000 1,065,140 Bonds, Series ,000 22,050 1,000 1,003,050 Refunding Bonds, Series 2006A 425,000 1,151,860 1,000 1,577,860 Bonds, Series ,520,000 93,600 1,000 1,614,600 Bonds, Series ,805, ,500 1,000 2,675,500 Bonds, Series , ,625 1, ,625 Bonds, Series ,230, ,000 1,000 1,721,000 Refunding Bonds, Series , ,600 1, ,600 Refunding Bonds, Series ,070, ,713 1,000 4,459,713 Bonds, Series ,727,244 1,000 1,728,244 Refunding Bonds, Series ,100 1, ,100 & Refunding Bonds, Series ,395,000 3,886,125 1,000 5,282,125 & Refunding Bonds, Series ,210,000 2,928,500 1,000 6,139,500 Bonds, Series 2014A 3,075, ,713 1,000 3,616,713 Refunding Bonds, Series 2014B - 857,700 1, ,700 Bonds, Series ,470, ,963 1,000 7,953,963 Bonds, Series 2015A 3,025, ,719 1,000 3,948,719 Bonds, Series 2015B - 1,350,227 1,000 1,351,227 Professional Services Bond Counsel ,500 17,500 TIF Payments Skillman Corridor , ,650 Estimated Closing Costs for New Bond Issues 750, ,000 Total required for Debt Service 32,890,000 18,189,392 1,030,150 52,109,542 28

32 RICHARDSON INDEPENDENT SCHOOL DISTRICT DEBT SERVICE SCHEDULES FISCAL YEAR SUMMARY OF ALL DEBT PAYMENTS Total Principal Calendar Year Principal Interest and Interest ,890,000 18,189,392 51,079, ,029,995 19,053,092 39,083, ,805,000 15,914,731 38,719, ,410,000 14,937,786 37,347, ,244,992 17,096,894 37,341, ,215,000 13,123,854 37,338, ,425,000 12,113,589 33,538, ,415,000 11,144,124 33,559, ,480,000 10,176,860 30,656, ,195,000 9,251,866 29,446, ,825,000 8,363,711 26,188, ,680,000 7,507,300 26,187, ,070,000 6,689,831 23,759, ,870,000 5,888,506 23,758, ,375,000 5,129,225 20,504, ,570,000 4,461,400 18,031, ,515,000 3,830,319 17,345, ,685,000 3,223,763 15,908, ,400,000 2,639,744 15,039, ,170,000 2,058,663 14,228, ,770,000 1,458,881 14,228, ,855, ,938 11,737, ,920, ,813 9,312, ,715, ,438 2,821, ,090,000 20,438 1,110, ,619, ,656, ,276,145 *Note: Total principal and interest does not include $1,030,150 in administrative fees, TIF payments and bond issuance costs to be paid in

33 Miscellaneous Statistics and Analysis 10-Year Comparative Data Change in the Tax Bill of a $100k Single-Family Residence (w / Homestead Exemption) Comparison of ISD Tax Rates per $100 Property Value 30

34 Richardson ISD 10-Year Comparative Data % Change Operating Expenses (less recapture) $ 234,377,644 $ 251,352, % Debt Service Expenses $ 49,571,844 $ 48,956,665 (1.2%) Child Nutrition $ 9,332,298 $ 14,019, % Tax Rate (26.4%) Limited English Proficient Students / English Language Learners 6,394 9, % Economically Disadvantaged Students 14,243 22, % Total Enrollment 34,441 38, % CPI (inflation) increase per US Bureau of Labor Statistics 25.0% Total Staff 4,329 4, % Central Administration Staff % Data obtained from TEA's 2003 Academic Excellence Indicator System (AEIS) Report and 2014 Texas Academic Performance Report (TAPR). Beginning in , AEIS transitioned into what is now referred to as the TAPR AEIS financial data uses original adopted budget information: Total Operating Expenses (less recapture) are identified as budgeted operating fund expenditures Debt Service Expenses are defined as non-operating debt service expenditures (object 6500). Child Nutrition Expenses are defined as budgeted expenditures for Food Services (function 35) TAPR financial data uses the actual year-end audited financials: Total Operating Expenses (less recapture) are defined as operating disbursements. Debt Service Expenses are calculated using debt service expenditures for all funds less the operating fund portion. Child Nutrition Expenses are defined as food service expenditures (Function 35). 31

35 Richardson ISD Change in the Tax Bill of a $100,000 Single-Family Residence With Homestead Exemption $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 32

36 C McKinney $1, $1, % $1, $1, C Prosper $1, $1, % $1, $1, C Allen $1, $1, (1.80%) $1, $1, C Celina $1, $1, % $1, $1, C Wylie $1, $1, % $1, $1, C Princeton $1, $1, % $1, $1, C Community $1, $1, (0.62%) $1, $1, C Blue Ridge $1, $1, (1.18%) $1, $1, C Lovejoy $1, $1, % $1, $1, C Anna $1, $1, % $1, $1, C Melissa $1, $1, % $1, $1, D Cedar Hill $1, $1, % $1, $1, D DeSoto $1, $1, (1.34%) $1, $1, D Grand Prairie $1, $1, % $1, $1, C Frisco $1, $1, % $1, $1, D Coppell $1, $1, % $1, $1, C Plano $1, $1, (0.34%) $1, $1, D Irving $1, $1, (2.05%) $1, $1, D Duncanville $1, $1, % $1, $1, D Mesquite $1, $1, % $1, $1, D Sunnyvale $1, $1, % $1, $1, C Farmersville $1, $1, % $1, $1, D Lancaster $1, $1, (3.38%) $1, $1, D Carrollton/Farmers Branch $1, $1, (1.53%) $1, $1, D Garland $1, $1, % $1, $1, D Richardson % $1, $1, % 10.00% $1, $1, D Dallas % $1, $ % 10.00% $1, $ D Highland Park % $1, $ (0.76%) 20.00% $1, $ Comparison of ISD Taxes Tax Rates Per $100 Property Value Sorted by Tax Levy on a Homestead Recent Years' Tax Rates Local Local Total Option Tax Levy on a $100,000 Total Option Tax Levy on a $100,000 Tax Homestead Non- Residence Tax % Homestead Non- Residence Rate Exemption Homestead Homestead Rate Change Exemption Homestead Homestead Note: Districts in bold were Chapter 41 districts in RISD ranks 5th when sorted by tax levy on a non-homestead.