Pearland Independent School District Workshop Tuesday, April 28, 2020 10:30 AM

Agenda of WORKSHOP The Board of Trustees

PEARLAND INDEPENDENT SCHOOL DISTRICT

Suspension of Open Meetings Act Provisions Due to COVID-19

Notice language to be added to

Board Agenda

Notice is hereby given that a Workshop Meeting of the Board of Trustees of the Pearland Independent School District will be held on April 28, 2020, beginning at 10:30 AM via video conferencing. Audio/Video Conferencing Notice: Due to the public health threat of COVID-19 and pursuant to the Governor Abbott’s Temporary Suspension of Open Meetings Laws issued on March 16, 2020, this meeting will be conducted via audio/video conference, which will be accessible to the Board and public and allow for two-way communication. The Board President, presiding officer or trustees will not be physically present at one location but a quorum will be required for the meeting.

Audio call-in for PUBLIC:

Dial by your location

+1 346 248 7799 US (Houston) +1 253 215 8782 US +1 301 715 8592 US Meeting ID: 860 8135 1484 Password: 210090

Public Comment: A link to a public comment form is available at: www.pearlandisd.org/public-comment This form must be completed and submitted prior to 5:00 pm on Monday, April 27, 2020 if you wish to address the Board of Trustees on an agenda item. A video/audio recording of the meeting will be available on the District’s website.

The subjects to be discussed, considered, or upon which any formal action may be taken are listed below. The items listed in this notice may be taken in any order at the discretion of the Board.

1. Call to Order

2. Establishment of a Quorum

3. Closed Meeting as Authorized by Section 551.001 et seq.of the Government Code -

A. 551.074 - Personnel Discussion

1. Employment of Professional and Instructional Personnel

2. Review Resignations

B. 551.076 Considering the Deployment, Specific Occasions for, or Implementation of, Security Personnel or Devices

C. 551.082 -Consider Discipline of a Public School Child, or Complaint or Charge Against Personnel

D. 551.0821 - Deliberating in a Matter Regarding a Public School Student if Personally Identifiable Information about the Student will Necessarily be Revealed by the Deliberation

4. Reconvene in Open Session 11:00 A.M.

5. Public Comment 11:00 AM [Length of time of each not to exceed three (3) minutes]

6. Budget Training/Workshop for 2020-2021 School Year 5

7. Adjournment

If, during the course of the meeting covered by this Notice, the Board of Trustees should

determine that a closed meeting or session of the Board of Trustees is required, then such closed meeting or session as authorized by the Texas Open Meetings Act, Texas Government Code Section 551.001 et seq., will be held by the School Board at the date, hour and place given in this Notice or as soon after the commencement of the meeting covered by this Notice as the School Board may conveniently meet in such closed meeting or session concerning any and all purposes permitted by the Act, including, but not limited to the following sections and purposes: Texas Government Code Section:

551.071 Private consultation with the Board's attorney 551.072 Discussing purchase, exchange, lease or value of real property 551.073 Discussing negotiated contracts for prospective gifts or donations 551.074 Discussing personnel or to hear complaints against personnel 551.076 Considering the deployment, specific occasions for, or implementation of,

security personnel or devices 551.082 Considering discipline of a public school child, or complaint or charge against

personnel 551.083 Considering the standards, guidelines, terms or conditions the Board will follow,

or will instruct its representative to follow, in consultation with representative of employee groups

551.084 Excluding witnesses from a hearing

Should any final action, final decision, or final vote be required in the opinion of the School Board with regard to any matter considered in such closed meeting or session, then the final action, final decision, or final vote shall be either:

(a) in the open meeting covered by the Notice upon the reconvening of the public meeting;

or (b) at a subsequent public meeting of the School Board upon notice thereof; as the School

Board shall determine

Certificate of Posting

On the 24th day of April, 2020 this notice was made available to the public on the district website and an original copy of this notice was posted at the school district education support center at 12:00 p.m. on said date.

___________________________ Secretary to Board of Trustees

Fiscal Year 2020-2021 Budget Workshop #1April 28, 2020

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Fiscal Year 2020-2021& Beyond

Discussion of Challenges Ahead

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Funding ElementsGeneral Operating Fund

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Enrollment & ADA

School Year Enrollment Yearly Change ADA

2010-11 19,166 2.5% 17,825

2011-12 18,769 2.1% 18,344

2012-13 19,586 2.2% 18,698

2013-14 20,054 2.4% 19,136

2014-15 20,574 2.6% 19,597

2015-16 21,137 2.7% 20,200

2016-17 21,610 2.2% 20,596

2017-18 21,662 0.2% 20,640

2018-19 21,646 -0.1% 20,624

2019-20 21,760 0.5% 20,715

2020-21 21,934 0.8% 20,881

• ADA = Average Daily Attendance• 2020-21 increase due to projected increase in PreK enrollment

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Property Values

Tax Year Fiscal Year Taxable ValuesPercent Increase

2010 2010-11 $5,686,553,704 -0.70%

2011 2011-12 $5,680,615,178 -0.10%

2012 2012-13 $5,734,179,790 0.94%

2013 2013-14 $5,840,017,946 1.85%

2014 2014-15 $6,180,403,698 5.83%

2015 2015-16 $6,490,070,219 5.01%

2016 2016-17 $7,294,987,523 12.40%

2017 2017-18 $7,860,294,716 7.75%

2018 2018-19 $7,951,668,221 1.16%

2019 2019-20 $8,303,863,952 4.43%

2020 2020-21 $8,594,499,190 3.50%

Certified Estimated Values will be available April 30th

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Tax Rate Compression

• Per HB 3, Districts will have their tax rates compressed so that the district’s local tax collections only increase by 2.5% year over year.

• The maximum compression rate for districts with PV growth of 4.01% or higher is $0.9156.

• For fiscal year 2020-21, the District estimates 3.5% Property Value (PV) growth, resulting in a compressed tax rate of $0.9156.

M&O Tax Rate Fiscal Year 2019-20

Fiscal Year 2020-21 (Tax Year 2020) Property Value Growth

< 4.01% 4.05% 5.0% 5.5%

Compressed Rate $0.93 $0.9156 $0.9122 $0.9078 $0.9035

Golden Pennies 0.04 0.0500 0.0500 0.0500 0.0500

M&O Rate $0.97 $0.9656 $0.9622 $0.9578 $0.9535

I&S Rate 0.4256 0.4256

Total Tax Rate $1.3956 $1.3912

MCR = PY Compressed Tax Rate x (1.025 / Local PV Growth %)

$1.3912 PROPOSED TAX RATE

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FY 2021 Projected Revenue Changes

LOCALProperty Tax Collections $2,559,742Investment Earnings (800,000)Miscellaneous Local Sources 130,500

Total Local 1,890,242

STATEState Funding 655,356 Prior Year Value Audits 136,968

Total State 792,324

FEDERAL 6,000

TOTAL REVENUE INCREASE $2,688,566

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State & Local Funding

• Fiscal year 2020-21 revenues are based on a required unanimous Board approval of a 1 cent increase to the Tier 2 tax rate

• Total tax rate for Tax Year 2020 is a decrease of $0.0044/$100 valuation

• Each Tier 2 cent yields $2.5 million in local and state revenue

Revenue Source Formula AidGolden Penny

Revenue

Local Property Taxes $ 78,674,624 $ 833,588

State - Tier 1 76,475,164

State - Tier 2 8,591,265 1,714,823

Total State/Local M&O Revenue $ 163,741,053 $ 2,548,289

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AppropriationsGeneral Operating Fund

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Budget Priorities

Establishment of Full Day Prekindergarten Program

Competitive Employee Compensation Plan

Increase Support Towards Employee Medical Premiums

Provide Funding to Support World Class Goals Initiatives

Provide Funding to Support HB 3 Mandates

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New Positions Included in the FY 2021 Budget

10.5 teacher positions needed to implement a full-day prekindergarten program

4.5 teacher positions to maintain the high level of service for students with special needs and English language learners

$971,995 total estimated budget impact

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General Pay Increase• 4% General Pay Increase

• $58,100 Teacher Starting Salary

• Targeted adjustments to bring teachers up to market for years of service

Pay GroupEstimated Increase

Teachers & Librarians $ 3,537,520

Professional SupportCampus/ESC Admin, Counselors, Nurses, Special Programs, etc.

$ 1,198,246

ParaprofessionalsMaintenance, Operations, Bus Drivers, Food Service, Teacher Aides and Clerical Staff

$ 1,019,639

Total $ 5,755,405

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Medical Benefit Plans & Contributions• Insurance provider changing

from Aetna to BC/BS• Four plans available,

including lower premium and copays

• $431,700 Cost to increase the District’s monthly contribution from $250 to $275

Plan EmployeeEmployee &

SpouseEmployee &

ChildrenEmployee &

FamilyPrimary (New)

$386 $1,089 $695 $1,301

High Deductible $397 $1,120 $715 $1,338

Primary+(Formerly Select)

$514 $1,264 $834 $1,588

Active Care 2 $937 $2,222 $1,393 $2,627

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Medical Premium Contributions – Employee SavingsMONTHLY EMPLOYEE COST

$250 District Contribution $275 District Contribution

Plan EE EE+SP EE+CH EE+FAM EE EE+SP EE+CH EE+FAMPrimary (New) $136 $839 $445 $1,051 $111 $814 $420 $1,026High Deductible $147 $870 $465 $1,088 $122 $845 $440 $1,063Primary+ (Formerly Select) $264 $1,014 $584 $1,338 $239 $989 $559 $1,313Active Care 2 $687 $1,972 $1,143 $2,377 $662 $1,947 $1,118 $2,352

MONTHLY EMPLOYEE SAVINGS (-) / ADDITIONAL COST

$250 District Contribution $275 District Contribution

Plan EE EE+SP EE+CH EE+FAM EE EE+SP EE+CH EE+FAMPrimary (New) * ($170) ($278) ($207) ($417) ($195) ($303) ($232) ($442)High Deductible $19 $54 ($7) ($77) ($6) $29 ($32) ($102)Primary+ (Formerly Select) ($42) ($103) ($68) ($130) ($67) ($128) ($93) ($155)Active Care 2 $85 $202 $126 $238 $60 $177 $101 $213

* Savings assumes employees currently enrolled in the Select(Primary+) plan switch to Primary plan

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Non-Payroll Budget

Changes

Approximately $850,000 savings in various contracts, including: Electricity, Workers’ Comp, Copiers, etc.

$50,000 for welding and culinary programs

$250,000 for 10% rollover of campus budgets

$150,000 for band and drill team uniforms

$200,000 in start-up costs for reading academies, bilingual program requirements, dyslexia and prekindergarten program (part of HB 3 mandates)

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FY 2020-21 General

Fund Budget

Estimated RevenueLocal 81,111,624$ State 104,393,676 Federal 2,785,000

Total Revenues 188,290,300$

Estimated ExpendituresPayroll 163,840,268 Non-Payroll 24,450,032

Total Expenditures 188,290,300

-$ Estimated Net Revenues Over/(Under) Expenditures

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Fund Balance Policy

GOAL: Maintain a yearly fund balance in which total fund balance is 25% (3 months) of total operating expenditures.

Estimated 2019-2020 Fund Balance: $62.1 Million Estimated 2020-2021 Expenditures: $188.3 Million

Estimated Fund Balance Percent of Operating Expenditures 33%

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Staffing Requests

*not included in estimated budget

Campus/ Department FTEs Position

Priority Needs:Staffing Guidelines 3.0 Aides $65,454Special Services 1.0 Occupational Therapist $0 (a)

Special Services 2.0 Occupational Therapist $0 (a)

Dr. Kelly 2.0 Student Support Counselors - Junior High $175,730Human Resources 3.0 Teachers $0 (b)

Special Services 0.5 VI Teacher $0 (a)

11.5 $241,184

For Consideration:Communications 1.0 District Translator $85,741Student Outreach 1.0 Truancy/Attendance Clerk $60,000 (c)

2.0 $145,741

Grand Total 13.5 $386,925

General Fund Budget Impact

Notes:(a) Funded by IDEA B Grant(b) Zero budget – Allocate based on enrollment needs(c) Truancy Grant ending 18

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FY 2020-21 Debt Service Fund Budget

Estimated Revenues:Local $ 35,048,096

State 714,329

Total Estimated Revenues $ 35,762,425 Estimated Expenditures 34,198,216

Estimated Net Revenues Over/(Under) Expenditures $ 1,564,209

In FY 2020-2021, the District has an opportunity to refund a portion of its outstanding debt at a lower interest rate and receive interest cost savings.

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Summary of Outstanding Bond Call Provisions

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Schedule of Events$81,985,000 Unlimited Tax Refunding Bonds, Series 2020

Estimated Savings: $11,171,408

11.14% Present Value

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FY 2020-21 Food Service Fund Budget

Estimated RevenueLocal 5,027,420$ State 309,000 Federal 5,000,100

Total Revenues 10,336,520$

Estimated ExpendituresPayroll 4,107,800 Non-Payroll 6,228,720

Total Expenditures 10,336,520

-$ Estimated Net Revenues Over/(Under) Expenditures

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Next Steps

• Certified Property Value Estimates – April 30th

• Final Certified Values – July 25th

• Tax Compression Rate – End of July• Review Additional Campus and Department Budget

Requests• Monitor COVID Pandemic for Effect on Initial

Budget Adoption• Budget amendments in August, pending future

state/federal/local decisions

Finalize Revenue & Expenditures

• Approve Salary Increases – May 19 Board Meeting• Budget Workshop #2 – May 28• Public Hearing on Tax Rate and Budget Adoption –

June 9 Board Meeting

Next Meetings

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