FOR DISCUSSION PURPOSES August 23, TRE and BOND Election

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1 2016 TRE and BOND Election

2 District Snapshot

3 District Snapshot - Students & Staff 10,278 students (up 13% since ); almost 1,300 employees 15 campuses Two comprehensive high schools, one early college, one non-traditional, and one alternative center Two middle schools, two intermediate schools, six elementary schools, and two early childhood centers 10.9 teacher avg. years experience (Texas 11.0) 15:1 student to teacher ratio (Texas 15:1) 5.9% administrative cost ratio (Texas 10%)

4 District Snapshot - Financial BISD has a history of strong fiscal management: Texas Comptroller Leadership Circle Platinum for 5 years TEA School First Rating of Superior for 13 years AAA- Permanent School Fund (underlying rating) Bond ratings are Aa3 by Moody s and AA- by Standard and Poor s (upgraded in 2015 from A+) Debt management practices have saved taxpayers $29.5 million over the last 5 years. The I&S tax rate was reduced two years in a row from $0.441 to $0.421 in and then from $0.421 to $0.401 in Total tax rate has declined from $1.622 to $1.441 since last bond election (2007), which is a difference of 18.1 cents.

5 District Snapshot - Academics Met Standard rating from TEA for all campuses including numerous academic distinctions Expansive dual credit and AP program resulting in increased levels of college readiness Historically high numbers of students enrolled in pre-ap program beginning in 5th grade Substantial opportunities for students to earn industry certifications and licenses Graduation rates that surpass Texas & Region 13 Millions in scholarships earned (nearly $8M in 2016)

6 Strategic Action Plan Call to Action: Bastrop ISD graduates are empowered to become successful and productive in a global society. (Approved by BISD Board of Trustees ) Goals: 1. To develop and maintain a system of instruction that differentiates for every student s needs. 2. To increase the effectiveness of communication throughout the BISD community. 3. To recruit, equip, and retain staff to increase instructional continuity and quality. 4. To strengthen and develop partnerships with students, parents, businesses, and community members in order to empower learner success and productivity.

7 Long-Range Facilities Planning

8 Citizen Committee Cross section of our community, including parents, BISD employees, students, business leaders, and other interested citizens; met throughout school year Conducted comprehensive needs assessment (i.e., demographics, housing, financial data, facilities, and more) Evaluated solutions in order to make a recommendation for the Board of Trustees and ultimately to the greater community

9 Committee Findings BISD will continue to grow at a steady pace. Buildings and infrastructure are aging and do not adequately support growth trends. Student achievement needs to be addressed including: Grade level reconfiguration; Technology enhancements; and Instructional innovations and programming. BISD must continue to attract and retain the most talented teachers and staff.

10 Committee Recommendation Two Part Plan Access additional funding available from the state by conducting a Tax Ratification Election (TRE) + Address priorities outlined by the long-range facilities planning team by conducting a Bond Election

11 Part 1: Tax Ratification Election (TRE) Tax Ratification Election

12 Historical Perspective BISD Maintenance & Operations (M&O) tax rate was $ Texas Legislature established a compressed tax rate (CTR); BISD had a CTR of $1.37 (resulted in a loss of revenue for the district) BISD had a CTR of $1.04 (additional loss of revenue) Districts have the authority to increase M&O tax rates above the CTR, up to the cap of $1.17 per $100 valuation with voter approval. To tax at a rate higher than $1.04, a school district s voters must ratify the higher rate.

13 What is a TRE and Why is One Needed? A TRE is the process by which voters give their approval and ratify an M&O tax rate above $1.04. A TRE provides additional funds for M&O without adding additional debt. According to State law, the highest allowable M&O tax rate is $1.17. A TRE of 13 pennies will maximize our equalization (state funding assistance). A TRE allows the district to address the operational and instructional needs of students and teachers identified by the long-range facilities planning team.

14 Impact of TRE to the District Each penny is worth $557,315 in revenue to Bastrop ISD. Therefore, a TRE of 13 cents would provide the district a total of $7.25 million additional revenue. $7.25 Million $228,209 per penny in state aid ($2.97 million) $329,106 per penny in local tax ($4.28 million) Source: BISD Financial Advisors

15 TRE Results in Texas Since 2007, 423 school districts have completed successful TREs to meet the operational needs of students and teachers. In 2012, 2013, and 2014, passage rates were 81.8%, 92.9%, and 82.8% respectively. In 2015, the passage rate was 92.7% of all TREs held throughout the state. Recent examples: Elgin Smithville Georgetown Hutto San Marcos Source: BISD Financial Advisors

16 Teacher Compensation We want to attract the most talented teachers and keep them from being recruited away. BISD s turnover rate is 20.1% compared to the state s rate of 16.6%. Out of 16 surrounding competitors... 6 districts pay new teachers more than BISD BISD teachers with 10 years experience earn $1,742 less than teachers in 15 other districts Those with 15 years experience earn nearly $1,000 less than teachers in all but 4 districts Source: 2016 TASB District Personnel Salary Survey

17 Teacher Compensation BISD Teacher Salaries Compared to State Averages BISD Texas Difference Beginning Teachers $43,384 $44,540 -$1, Years Experience $44,645 $46,575 -$1, Years Experience $45,435 $49,127 -$3, Years Experience $49,744 $52,640 -$2,896 Over 20 Years Experience $57,765 $59,787 -$2,022 Source: Texas Academic Performance Report

18 District Growth Growth in enrollment adds to our operational costs (e.g., teachers and classroom supplies). Changes in demographics require additional instructional investments. BISD educates 10,278 students spread out over 15 campuses and 450 square miles. Enrollment is projected to be more than 13,200 by

19 Safety & Security Safety and security #1 priority Additional cameras and related maintenance Increased safety measures (e.g., vestibule construction, access control, and monitoring systems) Expanded police force

20 Maintenance and Operations Roofing replacement and repair Mechanical systems (e.g., HVAC) repair and replacement Ensuring maintenance of buildings and infrastructure Beautification of grounds and district facilities

21 Academics: Grade Reconfiguration Only 1.7% of total campuses in Texas use a 5th-6th grade intermediate school model. Grade Configuration of Pre-K to 5 / 6 to 8 / 9 to 12: Decreases # of transitions that lead to achievement loss Provides a minimum of 3 years at each campus Encourages continuity of teacher-student relationships Extends opportunities to monitor learning needs Source: TEA 2016 Accountability Manual Better aligns TEKS and College & Career Readiness Standards Supports more rigorous instruction in writing, science, math, and social studies prior to high school Extends time and opportunities for parental involvement Gives 6th graders greater access to an enrichment curriculum, college and career planning programs, and extra- and co-curricular opportunities

22 Academics: Technology & Innovation Hardware and software upgrades to support 21st century teaching and learning practices Increased access and devices for students Improved digital media resources Network redundancy (minimizing downtime) Innovative instructional practices and professional development for teachers

23 Part 2: Bond Election $75 Million Bond Bond Election

24 What is a Bond Election? School districts borrow money in the form of bonds to finance the design, construction, expansion, and renovation of facilities. This is similar to homeowners borrowing money in the form of a mortgage to finance a home. If approved by voters in a bond election, bonds are then sold to investors in the competitive investment market to raise money to pay for capital projects.

25 Why a Bond Issue is Necessary Accommodates increased enrollment (i.e., additional elementary and middle schools) Repurposes existing facilities Expands and refurbishes classroom spaces Consolidates and maximizes efficiency of district facilities and operations Improves academic performance through realignment Expands innovative 21st Century learning methods and practices Enhances CTE/career pathways Repairs and replaces roofs, mechanical systems, and equipment

26 Bond Elections in Texas Since 2010, the average approval rate of bond propositions in Texas is 84.8%. For 2016, the approval rate was 90.1% for a total of more than $4.7 billion in bonds. Recent examples: Austin Del Valle Eanes , 2015 Georgetown , 2015 Manor , 2014 Round Rock , 2014 Source: BISD Financial Advisors

27 Proposed Facilities Upgrades

28 Growth is Evident Everywhere

29 Conversion of Bastrop Intermediate to Become New Mina Conversion of Cedar Creek Intermediate to Serve as ES #7 Classroom expansion Cedar Creek Intermediate only Renovate classrooms for toilets at kindergarten and minor renovation of existing space

30 Courtyard Improvements to Bastrop and Cedar Creek Intermediate Schools as part of Elementary Conversion

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32 Expansion of Cedar Creek Middle School to Capacity of 1,000

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35 Concept of New Plaza

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37 Expansion of Gateway Provide 6 new classrooms Provide new administration area New Administration Provide minor renovation of existing classroom space Rework parking area New Classrooms

38 Expansion of Cedar Creek High School Provide for expansion of classroom spaces to bring capacity to 2,400 students

39 Warehouse at Service Center

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41 Maintenance Congestion at Campus Site

42 Artificial Surface & Track Improvements Bastrop Middle School Cedar Creek Middle School

43 Artificial Surface Bastrop High School

44 CTE Programs/Pathway Developments

45 Technology Infrastructure Bandwidth shaping Wired infrastructure support Power / UPS / Racks Projectors

46 Bond Total Note: Individual project costs outlined here are estimates. So that we may maximize efficiency for taxpayers, the District will adjust allocations based upon savings or overruns realized per project. Conversion of BIS to an elementary (including courtyard) $ 3,528,300 Conversion of CCIS to an elementary (including courtyard) $ 2,134,000 Expansion of BMS to 1,000 student capacity $ 3,408,625 Expansion of CCMS to 1,000 student capacity $ 3,986,125 Repurposing of CRCA/Genesis to MS (including new competition gym) $11,726,468 Repurposing of Mina to CRCA/Genesis $ 6,074,706 Repurposing of Mina to Office Space $ 3,313,871 Expansion of Gateway $ 2,332,400 Expansion of CCHS to 2,400 student capacity $ 8,859,375 Consolidation and Expansion of Maintenance $ 5,502,000 Artificial Surface (BHS, BMS, CCMS); Track improvement (BMS/CCMS) $ 4,161,000 CTE/career pathway development $ 1,000,000 Food service/roofing/technology $ 7,000,000 Furniture upgrades at campuses (innovation, instruction & workplace) $ 3,000,000 Fees and inflation $ 8,972,267 Total Bond Cost $74,999,137

47 Tax Impact of TRE and Bond

48 TRE/Bond Combinations in Texas In Texas, 20 school districts have held a TRE and a bond election at the same time. Majority of those combined elections were successful including Canutillo Cooper Corpus Christi Crane* Detroit East Chambers* *within the last two years Grand Prairie* Gruver* Prosper Quitman* Trent Zavalla

49 BISD Current vs. Projected Tax Rate M&O I&S Maintenance & Operations Interest & Sinking $1.04 $.401 $1.441 Add 13 Cents for TRE Add.039 Cents for Bond Projected Tax Rate $1.17 $.440 $1.610 Current Tax Rate

50 Impact for the Homeowner of TRE & Bond Sample Home Values Current Rate $ Projected Rate $ Annual Increase Monthly Increase $ 75,000 $ $ $ $ 7.04 $100,000 $1, $1, $ $10.56 $144,017 (avg. BISD) $1, current $1, projected $ per year $16.76 per month $200,000 $2, $2, $ $24.65 $300,000 $3, $4, $ $38.73 *data assumes a $25,000 homestead exemption

51 Impact for Senior Citizens Property taxes for citizens $0 increase and older are not affected if the appropriate exemptions are filed and approved with the County Appraisal District.

52 Thank you!