2014-2015 Budget & Compensation Committee September 30, 2014 1
2014-2015 Budget & Compensation Our Focus 2
Budget & Compensation Committee Our Goal: Fort Bend ISD s goal for 2015-16 is to fund activities that support the District s Mission and Vision while achieving a balanced budget that does not require a tax increase. 3
Budget & Compensation Committee Roles and Responsibilities Serve in an advisory capacity to the district leadership team Engage in productive dialogue Be objective and maintain a district level perspective Explore possibilities Communicate committee work and outcomes to colleagues Confer with principal following each meeting Gather input from colleagues 4
Budget & Compensation Committee Desired Outcomes of Meeting Review list of district needs for facilities, safety & security, and technology Assess if these needs are addressed within Bond 2014 Is anything missing? Where do we go from here? 5
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Planning for Long-term Growth and Renewal Facilities Master Plan Safety and Security Plan Technology Plan 9
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Construction Detail Fort Bend ISD Capital Plan New Construction and Classroom Additions Detail Source: FBISD Finance 13
Elementary School Capacity Analysis Elementary School Capacity Analysis Source: FBISD Finance & PASA 14
Major maintenance and renovation items - $143 million Construction Detail ($M) Priority 1 Building Deficiencies $25.7 Priority 2 Building Deficiencies $92.0 Definition: Priority 1: Mission critical concerns; these items may affect the school s ability to remain open or deliver the curriculum, such as HVAC repairs. Priority 2: Indirect Impact to Educational Mission; these items may progress to Priority 1 items if not addressed in the near term, such as roof repairs. $117.7 Life Cycle Forecast Year 1 $4.4 Life Cycle Forecast Year 2 $20.9 Definition: The projection of future building system costs based upon each system s expected serviceable life. $25.3 Source: FBISD Finance 15
Bond Projects by Campus Capital Plan Phase One Bond Projects: Major maintenance and Renovation projects Major life-cycle improvements Safety & Security improvements Technology improvements 16
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Security Summary Fort Bend ISD Capital Plan DRAFT DRAFT Description $M Proposed 2014 Bond Program Phase 1 by Funding Source Other Funds Total Phase One Capital Plan Security Cameras $14.1 $14.1 Security Vestibules $4.3 $4.3 Window Film $1.8 $1.8 Security Fencing $1.3 $1.3 Access Control including Video Intercom $3.4 $3.4 Emergency Generators $3.2 $3.2 Emergency Notification System $0.5 $0.5 Two Way Radio $1.4 $1.4 Safety and Security Total $26.9 $3.2 $30.1 Source: FBISD Finance 18
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Technology Summary Fort Bend ISD Capital Plan DRAFT DRAFT Description $M Proposed 2014 Bond Program Phase 1 by Funding Source Other Funds Total Phase One Capital Plan Internet Infrastructure Upgrade $4.4 $4.4 Wide Area Network/Backbone Refresh $17.3 $17.3 Data Center SAN and Virtualization $7.8 $7.8 Data Center Facilities Modifications $0.6 $0.6 Wireless Network Deployment $22.2 $22.2 Local Area Network Refresh $12.2 $12.2 Telephone System Upgrade $5.1 $5.1 Adding Communications Closets on Campus $1.3 $1.3 Source: FBISD Finance Technology Total $39.4 $31.3 $70.7 21
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Houston Area Tax Rates 2013 $1.60 $1.53 $1.45 $1.42 $1.39 $1.34 $1.33 $1.29 $1.25 $1.19 $1.40 $1.20 $0.40 $0.41 $0.38 $0.35 $0.30 $0.29 $0.17 $0.21 $0.16 $1.00 $0.80 Debt $0.60 $0.40 $1.13 $1.04 $1.04 $1.04 $1.04 $1.04 $1.13 $1.04 $1.03 Operations $0.20 $0.00 Source: FBISD Finance & District Websites Katy CyFair Pearland Lamar Fort Bend Alvin Alief Stafford Houston 24
Ranked By Bond Principal Outstanding as a Percent of Taxable Value 8% Bond Principal Outstanding Per TAV 6% 4% 7.9% 5.4% As the 7 th largest school district, Fort Bend ISD s debt burden ranks 138 th in the State as a percentage of taxable values that secure repayment of school district bonds. 5.2% 5.1% 4.9% 4.8% 4.1% 3.8% 3.7% 3.4% 2% 2.0% 0% Spring ISD Klein ISD Humble ISD Katy ISD Cypress-Fairbanks ISD Lamar CISD Conroe ISD Spring Branch ISD Clear Creek ISD Fort Bend ISD Houston ISD Source: BOSC, Inc.; Texas Comptroller of Public Accounts Property Tax Assistance Division and The MAC of Texas As of August 31, 2013. Includes Voted and M&O Debt. 25
Texas K-12 AAA & AA+ Standard & Poor s Ratings Standard and Poor s upgraded Fort Bend from AA to AA+ during district review in 2014 Source: FBISD Finance School Districts Amarillo ISD Austin ISD Carroll ISD Deer Park ISD Eanes ISD Fort Bend ISD Frisco ISD Houston ISD Hurst-Euless-Bedford ISD Iraan Sheffield ISD Irving ISD Lake Travis ISD Lewisville ISD Plano ISD Richardson ISD Slidell ISD AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AAA AA+ AA+ AA+ AA+ AA+ AAA Standard and Poor s 26
Bond Oversight Committee Board passed resolution to establish Bond Oversight Committee Meet quarterly to review and provide feedback on District s management of the bond program and delivery of bond projects In preparing for the 2014 bond proposal for Board consideration, the superintendent convened the Bond Oversight Committee in an advisory capacity 27
Bond Oversight Committee 28
Bond Accountability Bond Accountability Resolution The Board of Trustees, based on a recommendation from the Bond Oversight Committee, also approved a Bond Accountability Resolution to ensure that any excess bond funds can ONLY be used of facility-related needs (land, renovations, repairs, etc.) 29
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Budget & Compensation Committee Priorities: Facilities, Safety & Security, Technology Review list of district needs for facilities, safety & security, and technology Assess if these needs are addressed within Bond 2014 Is anything missing? Write down your thoughts on sticky notes 32
Budget & Compensation Committee Where do we go from here? Review combined priority list for last year (BCC & Principals) Assess suggestions from Benefits Committee Legislative Updates Create updated priority list for 2015-16 budget creation 33
Budget & Compensation Committee How are we doing? Have we accomplished our goal for this meeting? Review list of district needs for facilities, safety & security, and technology Assess if these needs are addressed within Bond 2014 Is anything missing? Where do we go from here? Questions? Concerns? Feedback? Next meeting: BCC October 23, 2014 4:00p.m. Annex 34
Budget & Compensation Committee BCC Meetings: Date Time October 23 rd 4:00-6:00 November 6 th 4:00-6:00 December 4 th 4:00-6:00 January 22 nd 4:00-6:00 February 5 th 4:00-6:00 March 5 th 4:00-6:00 April 23 rd 4:00-6:00 May 7 th 4:00-6:00 35