Business Office Fort Ringgold Rio Grande City, Texas 78582 Phone: (956) 716-6710 Fax: (956) 716-6610
Rio Grande City CISD Rio Grande City, Texas 2017-2018 Proposed Annual Budget For Fiscal Year September 1, 2017 August 31, 2018
2017-2018 PROPOSED ANNUAL BUDGET TABLE OF CONTENTS Citizen's Guide to Our Budget..... Board of Trustees, Superintendent, and Finance Staff.... PAGE ii iii GENERAL OPERATING FUND (199) General Operating Fund and Debt Service Fund Proposed Annual Budget.... 1 General Operating Fund - Major Revenues. 2-3 Statement of Revenues, Expenditures, and Changes in Fund Balance... 4 Estimated Revenues - General Operating Fund... 5 Summary of Total Revenue by Major Source... 6 Preliminary 2017-2018 Estimate of State Aid (TEA State Template)... 7-8 Minimum Required Expense Analysis.... 9 Budget Expenditures by Object... 10 Budget Expenditures by Function.. 11 CHILD NUTRITION PROGRAM Child Nutrition Program Fund Summary... 12 Fund 101 - Statement of Revenues, Expenditures, and Changes in Fund Balance... 13 DEBT SERVICE FUND Debt Service Fund Summary.............. 14 Fund 516 - Statement of Revenues, Expenditures, and Changes in Fund Balance. 15 Fund 516 - Statement of Estimated Revenues... 16 Outstanding Debt Schedule - Principal & Interest for Bond Loans... 17 SPECIAL REVENUE Summary of Special Revenue (information only).......... 18 i
CITIZEN'S GUIDE TO OUR BUDGET WHAT IS A DISTRICT BUDGET? The District Budget is an annually revised document that describes the financial performance and the detailed financial allocations made to maintain district operations for the proposed budget year. WHAT IS THE PURPOSE OF A BUDGET? The objective of the budget is to communicate the financial plan about district operations to the public, the Rio Grande City Consolidated Independent School District (RGCCISD) Board of Trustees, and all members of the organization for each budget year. WHAT ARE PROPERTY TAXES? Property taxes are funds that are levied, assessed and collected annually (ad valorem taxes) for the further maintenance of public schools in the district and to pay bonds issued by the school district. WHAT IS A TAX RATE? It is the amount of dollars levied per $100 of taxable value (after exemptions). The resulting amount is called Ad Valorem Taxes. WHAT IS AD VALOREM TAX? Ad Valorem Tax is the Property Tax (after exemptions) that is placed on all the property within the district's jurisdiction. The appraised value is determined by the Starr County Appraisal District. HOW ARE PROPERTY TAXES CALCULATED? The taxable value (after exemptions) divided by 100 and multiplied by the tax rate: Average Appraised Value $ 43,973 Less Homestead Exemption 25,000 Total Taxable Value $ 18,973 RGCCISD Tax Rate 1.4309 $ 18,973 $ 189.73 x 1.4309 = $ 271.48 Total Property Tax Due = $ 100 WHERE CAN I GET ADDITIONAL INFORMATION ABOUT RGCCISD AND THE DISTRICT BUDGET? Rio Grande City CISD Fort Ringgold Rio Grande City, TX 78582 ii
2017-2018 BOARD OF TRUSTEES, SUPERINTENDENT & FINANCE STAFF BOARD OF TRUSTEES Daniel J. Garcia President Eduardo Ramirez Vice-President Judith Amanda Solis Secretary Daria "Dr. B" Babineaux Dr. Norberto Cantu, Jr. Leticia O. Lopez Eleazar Velasquez Jr. Member Member Member Member SUPERINTENDENT & FINANCE STAFF Jorge E. Recio David O. Flores Crisanto Guerra IV Derric L. Treviño Juan Ruiz Chief Financial Officer Compliance Auditor Accounting Supervisor Accountant Data Programmer Alfredo Garcia Superintendent of Schools iii
PROPOSED ANNUAL BUDGET FISCAL YEAR 2017-2018 Fund Description Fund Estimated Other Balance Revenues Appropriations (Out) / In Difference GENERAL FUNDS: 101 Child Nutrition Program - 10,105,000 10,105,000 - - 199 Operating Fund (G/Fund) 88,987,545 105,764,206 16,776,661 0 Total - 99,092,545 115,869,206 16,776,661 0 DEBT SERVICE FUNDS: 516 Debt Service - I & S - 8,905,290 8,905,290 - - Total - 8,905,290 8,905,290 - - Total - 107,997,835 124,774,496 16,776,661 0 1
2017-2018 GENERAL OPERATING FUND MAJOR REVENUES The Revenues for the General Funds are $ 88,987,545. Non-cash revenues are $4,186,899 which includes on behalf payments for the Teacher Retirement System. The net cash revenues for the District are $ 84,800,646. LOCAL REVENUES TAXES Property Taxes: Total assessed valuation for 2017-2018 is $ 1,669,352,720. The District will budget 96% of the estimated tax levy. The proposed tax rate is $ 1.4309 (M&O $ 1.17 and I&S $ 0.2609) for a total estimated tax collection of $ 15,519,819 (M&O $11,074,233 and I&S $4,445,586). Prior Year Taxes: The District budgeted $ 1,000,000 for prior year taxes. The District contracts with a law firm to collect prior taxes. Collection efforts by the Tax Office include mail outs, working with the Tax Attorney to file suit on properties, and foreclosure. A 15% commission is charged by the law firm and passed through to the taxpayers for the years that a 15% fee was assessed. OTHER REVENUES RELATED TO TAXES (PENALTY & INTEREST) Fiscal Year 2017-2018: The District estimates to collect $ 800,000 for penalties, interest, tax certificates and attorney fees. INTEREST EARNINGS Fiscal Year 2017-2018: The District expects to continue to invest all of its available cash into liquid transactions. The District will continue to invest in bank certificates of deposits to utilize these funds to maximize its returns. Total interest earnings of $ 98,000 is reflected in the budget. 2
2017-2018 GENERAL OPERATING FUND MAJOR REVENUES STATE PROGRAM REVENUES AVAILABLE SCHOOL FUND Fiscal Year 2017-2018: The District's pupil projection is accounting for 400 less students due to the new opening of IDEA Public Schools in this area. The projected refined Average Daily Attendance (ADA) is 9,640. It is projected that $ 2,008,044 will be generated for this year. FOUNDATION SCHOOL PROGRAM Fiscal Year 2017-2018: The projected ADA is 9,640. It is projected that $ 68,557,769 will be generated for this year from the Foundation School Program. FEDERAL PROGRAM REVENUES Fiscal Year 2017-2018: The District estimates $900,000 for revenues from SHARS and revenue distributed by Federal Government $ 100,000. OTHER DUKE ENERGY & HIDALGO WINDMILL PROJECTS The Rio Grande City Consolidated Independent School District entered into agreements with Duke Energy Renewables Wind, LLC and Hidalgo Wind Farm, LLC. The agreements state that RGCCISD will be held harmless and receive protection payments to offset the loss of revenue due to the Value Limitation applied to mentioned companies. The District expects to receive a one time payment estimated in the amount of 13,076,661 for the fiscal budget 2017-2018. PROJECTED LITIGATION SETTLEMENT AGREEMENTS ON-BEHALF TRS PAYMENTS Rio Grande City CISD has accepted agreements for pending litigations that amount to $3,700,000 for Fiscal Budget 2017-2018 This source is a non-cash transaction that the District is required to record. The State of Texas and the Governmental Accounting Standards Board, Statement No. 24 mandates this requirement. This amount constitutes the amount of retirement payments (contributions) made by the State on behalf of the District for all of its employees. The intent of this transaction is to account for the entire cost of providing school services in the State of Texas. Fiscal Year 2017-2018: The projected amount for this year is $ 4,186,899 3
RIO GRANDE CITY CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GENERAL OPERATING FUND (199) FOR THE FISCAL YEAR ENDING AUGUST 31, 2018 Revenues 2017-2018 PROPOSED Local Sources 13,184,833 State Sources 74,802,712 Federal Sources 1,000,000 Total Revenues 88,987,545 Expenditures by Function 11 Instruction 55,805,259 12 Instructional Resources and Media Services 2,428,785 13 Curriculum Development & Instructional Staff Development 820,385 21 Instructional Leadership 2,154,055 23 School Leadership 6,391,984 31 Guidance, Counseling, and Evaluation Services 3,580,729 32 Social Work Services 29,400 33 Health Services 1,523,703 34 Student (Pupil) Transportation 4,407,420 36 Co-curricular/Extracurricular Activities 4,284,652 41 General Administration 4,231,648 51 Plant Maintenance and Operations 15,277,488 52 Security and Monitoring Services 2,508,337 53 Data Processing Services 343,901 61 Community Services 138,993 71 Debt Service - Principal on Long-Term Debt 339,500 Debt Service - Interest on Long-Term Debt Debt Service - Bond Issuance Cost & Fees 81 Facilities Acquisition and Construction 897,967 99 Other Intergovernmental Charge 600,000 Total Expenditures 105,764,206 Excess/(Deficiency) of Revenues Over/(Under) Expenditures (16,776,661) Other Other Financing Sources (Uses): Transfers Out (Use) Prior-Period Adjustment Net Extraordinary Items (Resources) 16,776,661 Net Changes in Fund Balance 0 4
RIO GRANDE CITY CONSOLIDATED INDEPENDENT SCHOOL DISTRICT ESTIMATED REVENUES - GENERAL OPERATING FUND (199) FOR THE YEAR ENDING AUGUST 31, 2018 LOCAL SOURCES: 2017-2018 PROPOSED Current Year Taxes 11,074,233 Delinquent Levy (Taxes, Prior Years) 1,000,000 Penalty & Interest Current Year 800,000 Interest Earnings - Investment Securities 98,000 Miscellaneous Revenues 212,600 Total Local Sources 13,184,833 STATE SOURCES: Available School Fund 2,008,044 Foundation School Fund 68,557,769 TRS on Behalf Benefit 4,186,899 Other State Revenue 50,000 Total State Sources 74,802,712 FEDERAL SOURCES: Federal Revenue Distributed by Federal Government 100,000 Medicaid Reimbursement (SHARS) 900,000 Total Federal Sources 1,000,000 TOTAL REVENUES 88,987,545 5
RIO GRANDE CITY CONSOLIDATED INDEPENDENT SCHOOL DISTRICT SUMMARY OF TOTAL REVENUES BY MAJOR SOURCE GENERAL OPERATING FUND (199) FOR THE FISCAL YEAR ENDING AUGUST 31, 2018 2017-2018 PROPOSED LOCAL REVENUES $ 13,184,833 STATE REVENUES $ 74,802,712 FEDERAL REVENUES $ 1,000,000 $ 88,987,545 TOTAL REVENUES BY MAJOR SOURCE 2017-2018 FEDERAL REVENUES 1.12% LOCAL REVENUES 14.82% STATE REVENUES 84.06% 6
District Name: Rio Grande City CISD 85th Legislative Session County-District No. 214-901 Release 4 Run Date: 8/04/2017 6/9/2017 Summary of Finances - SB 1 2017-2018 School Year Funding Elements Students Refined Average Daily Attendance (ADA) 9,640.000 Regular Program ADA (Line 1 Line 3 - Line 4) 8,549.002 Special Education FTEs 360.330 Career and Technology FTEs 730.668 Advanced Career & Technology FTEs 0.000 High School ADA 2,907.480 Weighted ADA (WADA) 14,462.234 Prior Year Refined ADA 10,040.220 Texas School for the Blind and Visually Impaired ADA 0.000 Texas School for the Deaf ADA 0.000 Staff Full-time Staff (not MSS) 1,003 Part-time Staff (not MSS) 3 Property Values 2017 (current tax year) Locally Certified Property Value Not Needed 2016(Prior Tax Year) State Certified Property Value ("T2" Value) 1,669,352,720 Tax Rates and Collections 2005 Adopted M&O Tax Rate 1.5000 2017 (current tax year) Compressed M&O Tax Rate 1.0000 Average Tax Collection Rate Not Needed 2017-18 (current tax year) M&O Tax Rate 1.1700 2017-18 (current school year) M&O Tax Collections $ 11,074,233 2017-18 (current school year) I&S Tax Collections $ 4,445,586 2017-18 Total Tax Collections $ 15,519,819 2017-18 (current school year) Total Tax Levy $ 23,879,317 Funding Components Adjusted Allotment $ 5,797 Revenue at Compressed Rate (RACR) per WADA $ 5,073 Cost of Education Index (CEI) 1.180 Adjusted CEI 1.180 Per Capita Rate $ 200.000 7
District Name: Rio Grande City CISD 85th Legislative Session County-District No. 214-901 Release 4 Run Date: 8/04/2017 6/9/2017 Tier I Allotments Program Intent Codes - Allotment 11 Regular Program Allotment $ 49,558,565 23 Regular Special Adjustment Allotment (Spend 52% of Amount) $ 7,045,506 22 Career and Technology Allotment (Spend 58% of Amount) $ 5,718,171 21 Gifted & Talented Adjusted Allotment (Spend 55% of Amount) $ 335,298 30/34 Compensatory Education Allotment (Spend 52% of Amount) $ 12,275,881 25/35 Bilingual Education Allotment (Spend 52% of Amount) $ 3,867,915 11 Public Education Grant $ - 99 New Instructional Facilities Allotment (NIFA) $ - 99 Transportation Allotment $ 993,998 31 High School Allotment $ 799,557 Total Cost of Tier I $ 80,594,891 LESS: Local Fund Assignment $ 16,693,527 State Share of Tier I $ 63,901,364 Per Capita Distribution from the Available School Fund (ASF) $ 2,008,044 Foundation School Program (FSP) State Funding Greater of State Share of Tier I or (ASF+NIFA+HS) $ 63,901,364 Tier II $ 6,162,199 Other Programs $ 502,250 Less: Total ASF ($280* Prior Year ADA) $ (2,008,044) Total FSP Operating Fund $ 68,557,769 State aid by Funding Source Fund / Revenue Code 199 / 5812 FOUNDATION SCHOOL FUND $ 68,557,769 199 / 5811 AVAILABLE SCHOOL FUND - STATE PORTION $ 2,008,044 599 / 5829 EDA $ - 599 / 5829 INSTRUCTIONAL FACILITIES ALLOTMENT (BONDS) $ 4,459,704 TOTAL 2017-18 FSP/ASF STATE AID $ 75,025,517 ADDITIONAL INFO SUMMARY OF TOTAL STE/LOCAL M&O REVENUE: M&O Rev From State $ 70,565,813 M&O Rev From Local Taxes $ 9,465,156 M&O Rev From Local Taxes $ 567,909 M&O Rev From Local Taxes $ 1,041,167 2017-18 TOTAL STATE/LOCAL M&O REVENUE $ 81,640,045 Less: Credit Balance Due State $ - 2017-18 NET TOTAL STATE/LOCAL M&O REVENUE $ 81,640,045 8
MINIMUM REQUIRED EXPENSE ANALYSIS OF THE GENERAL OPERATING FUND FOR SCHOOL YEAR 2017-2018 TEA Difference Percentage Template Minimum Minimum Over / Difference Program Summary Required Required Percent (Under) Over/(Under) Intent Code Finance Percentage Amount Appropriation Appropriated Appropriated Appropriated Gifted & Talented Operational Grant 335,298 55% 184,413.90 230,218 124.8% 45,804 24.8% Career & Technology Block Grant 5,718,171 58% 3,316,539 3,376,054 101.8% 59,515 1.8% Services to Students with Disabilities 7,045,506 52% 3,663,663 8,911,591 243.2% 5,247,928 143.2% Compensatory Education Block Grant 12,275,881 52% 6,383,458 6,660,570 104.3% 277,112 4.3% Bilingual Education Grant 3,867,915 52% 2,011,316 2,052,179 102.0% 40,864 2.0% 29,242,771 15,559,389 21,230,613 5,671,223 9
RECAP OF GENERAL OPERATING FUND BUDGET EXPENDITURES BY OBJECT 2017-2018 PROPOSED 6100 Payroll 87,559,881 6200 Contracted Services 8,910,563 6300 Supplies & Materials 3,848,559 6400 Other Operating Exp. 3,662,300 6500 Debt Service 339,500 6600 Capital Outlay 1,443,403 105,764,206 BUDGET EXPENDITURES BY OBJECT CODE 2017-2018 Contracted Services 8.42% Supplies & Materials 3.64% Other Operating Exp. 3.46% Debt Service 0.32% Capital Outlay 1.36% Payroll 82.80% 10
RECAP OF GENERAL OPERATING FUND BUDGET EXPENDITURES BY FUNCTION 2017-2018 PROPOSED Instructional Related Services 59,054,429 Instructional and School Leadership 8,546,039 Support Services - Student 13,825,904 General Administration 4,231,648 Support Services - Non Student 18,129,726 Community Services 138,993 Debt Service 339,500 Facilities Acquisition and Construction 897,967 Other Intergovernmental Charge 600,000 105,764,206 TOTAL EXPENDITURES BY MAJOR FUNCTION 2017-2018 Support Services - Non Student 17.14% Debt Service 0.32% Community Services 0.13% Facilities Acquisition and Construction 0.85% Other Intergovernmental Charge 0.57% General Administration 4.00% Support Services - Student 13.07% Instructional and School Leadership 8.08% Instructional Related Services 55.84% 11
CHILD NUTRITION PROGRAM FUND A Child Nutrition Program Fund is accounted for as part of the Operating Fund. The District adopted Provision II, which allows all students to obtain a free meal. This fund utilizes the modified accrual basis of accounting and budgeting. An annual budget is approved by the Board in order to comply with T.E.A. requirements. Major Revenues: The Child Nutrition Program major revenue source comes from the National School Lunch and Breakfast Programs. For 2017-2018, the district budgeted $ 10,105,000 for these line items. The revenue is generated based on the number of meals served to students qualifying for a free or reduced meal. Major Expenditures: The major expenditures for this program are the purchase of food items and personnel cost. For 2017-2018, the district budgeted $ 6,690,500 and $ 3,414,500 respectively. 12
RIO GRANDE CITY CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE CHILD NUTRITION PROGRAM (101) FOR THE FISCAL YEAR ENDING AUGUST 31, 2018 REVENUES 2017-2018 PROPOSED Local Sources 575,000 State Sources 230,000 Federal Sources 9,300,000 Total Revenues 10,105,000 EXPENDITURES BY FUNCTION 35 Food Services 9,770,000 51 Plant Maintenance & Operations 335,000 Total Expenditures 10,105,000 Excess / (Deficiency) of Revenues Over / (Under) Expenditures - 13
DEBT SERVICE FUND The Debt Service Fund is a governmental fund type, with budgetary control, that must be used to account for general long-term debt principal and interest for debt issues and other long-term debts for which a tax has been dedicated. A separate bank account must be kept for this fund. Principal and interest payments for operating indebtedness, including warrants, notes and short-term lease-purchase agreements, are to be made from the fund for which the debt was incurred. This fund utilizes the modified accrual basis of accounting. 14
RIO GRANDE CITY CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE DEBT SERVICE FUND (516) FOR THE FISCAL YEAR ENDING AUGUST 31, 2018 Revenues 2017-2018 PROPOSED Local Sources 4,445,586 State Sources 4,459,704 Federal Sources - Total Revenues 8,905,290 Expenditures by Function 71 Debt Service 8,905,290 Total Expenditures 8,905,290 Excess/(Deficiency) of Revenues Over/(Under) Expenditures 0 Other Financing Sources (Uses) Transfers in Premium on Issuance of Bonds 0 Other Financing Source 0 Net Changes in Fund Balance 0 15
RIO GRANDE CITY CONSOLIDATED INDEPENDENT SCHOOL DISTRICT STATEMENT OF ESTIMATED REVENUES DEBT SERVICE FUND (516) FOR THE FISCAL YEAR ENDING AUGUST 31, 2018 2017-2018 PROPOSED Local Sources Current Year Taxes 4,071,486 Delinquent Levy 200,000 Penalty & Interest Current Year 166,600 Interest on Checking Account 7,500 Total Local Sources 4,445,586 State Sources State Aid - IFA 4,459,704 Total State Sources 4,459,704 Total Revenues 8,905,290 Other Funding Sources: Other Financing - Transfer In - Operating Premium of Issuance of Bonds - Other Resources - Total Other Resources - Total Revenues & Other Financing Sources 8,905,290 16
OUTSTANDING DEBT AMORTIZATION SCHEDULE FOR THE YEAR ENDING AUGUST 31, 2018 Fiscal Yr Outstanding General Obligation Debt Series 2015 Refunding Bonds Total Gen. % of 31-Aug Principal Interest Total Principal Interest Total Obligation Debt Principal Retired 2018 4,760,000 4,130,288 8,890,288 1,120,000 568,550 1,688,550 10,578,838 2019 4,920,000 3,973,500 8,893,500 1,165,000 523,750 1,688,750 10,582,250 2020 5,095,000 3,801,338 8,896,338 1,210,000 477,150 1,687,150 10,583,488 2021 5,280,000 3,617,900 8,897,900 1,260,000 428,750 1,688,750 10,586,650 19.69% 2022 5,500,000 3,395,350 8,895,350 1,325,000 365,750 1,690,750 10,586,100 2023 5,745,000 3,147,013 8,892,013 1,390,000 299,500 1,689,500 10,581,513 2024 6,005,000 2,889,650 8,894,650 1,460,000 230,000 1,690,000 10,584,650 2025 6,275,000 2,621,403 8,896,403 1,530,000 157,000 1,687,000 10,583,403 42.79% 2026 6,525,000 2,334,340 8,859,340 1,610,000 80,500 1,690,500 10,549,840 2027 5,140,000 2,044,725 7,184,725 7,184,725 2028 3,705,000 1,847,200 5,552,200 5,552,200 2029 3,855,000 1,689,488 5,544,488 5,544,488 2030 4,075,000 1,528,863 5,603,863 5,603,863 65.67% 2031 4,230,000 1,374,488 5,604,488 5,604,488 2032 4,395,000 1,212,694 5,607,694 5,607,694 2033 4,560,000 1,044,550 5,604,550 5,604,550 2034 4,720,000 881,525 5,601,525 5,601,525 2035 3,570,000 681,325 4,251,325 4,251,325 86.75% 2036 3,725,000 519,625 4,244,625 4,244,625 2037 3,870,000 380,525 4,250,525 4,250,525 2038 1,890,000 236,000 2,126,000 2,126,000 2039 1,965,000 160,400 2,125,400 2,125,400 2040 2,045,000 81,800 2,126,800 2,126,800 100.00% Totals $ 101,850,000 $ 43,593,990 $ 145,443,990 $ 12,070,000 $ 3,130,950 $ 15,200,950 $ 160,644,940 (1) It is anticipated that approximately 52% of the District's debt service will be funded by the State's Instructional Facilities Allotment Program and the Existing Debt Allotment Program. The Instructional Facilities Allotment Program and the Existing Debt Allotment Program are subject to biennial appropriation by the Texas Legislature (see "CURRENT SCHOOL FINANCE SYSTEM"). 17
SPECIAL REVENUE (information only) FISCAL YEAR 2017-2018 Fund Description Estimated Revenues Special Revenue Funds: 211 Title I, Part A- Improving Basic Programs 4,562,154 212 Title I, Part C- Migrant 918,664 224 IDEA- Part B, Formula 1,922,588 225 IDEA- Part B, Preschool 18,303 244 Carl D. Perkins Career and Technical Education 139,453 255 Title II Part A (TPTR) 436,963 263 Title III Part A - LEP 712,169 265 21st CCLC 706,400 270 Rural & Low Income 289 Title IV, Part A-SSAEP 102,723 Total Special Revenue Funds: $9,519,417 18
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