Public Information

for the regular meeting of the

Board of Trustees

Tatum Independent School District

August 9, 2011

6:00 p.m.

Public Meeting on 2011-12 Proposed Budget and Tax Rate

Items A - C: Proposed Budget, Proposed M&O Tax Rate, Proposed I&S Tax Rate

 BOARD POLICY CE(LOCAL)

The annual public meeting to discuss the proposed budget and tax rate shall be conducted as follows:

1. The Board President shall request at the beginning of the meeting that all persons who desire to speak on the proposed budget and/or tax rate sign up on the sheet provided.
2.  Prior to the beginning of the meeting, the Board may establish time limits for speakers.
3. Speakers shall confine their remarks to the appropriation of funds as contained in the proposed budget and/or the tax rate.
4. No officer or employee of the District shall be required to respond to questions from speakers at the meeting.

 2011-12 PROPOSED BUDGET

Without consideration of changes in Chapter 41 payments the budget is a $539,648 decline from the previous year. The budget includes a 2% salary increase for all employees and an increase in the district contribution for employee health insurance premium of $27.54 per month or $359 per year. These two added together equal a 3% salary increase for professional staff and a larger increase for non-professional staff.

 The State requires a monthly insurance contribution of $225 per employee and TISD now contributes $354.92 per month. This is a total cost above the State required contribution of $207,352 per year to the TISD budget and a benefit for TISD employees.

 The scheduled I&S payment in February 2012 is $2,416,283.

 2011-12 PROPOSED TAX RATE

The proposed tax rates are $0.94 M&O and $0.10 I&S for a total rate of $1.04. This tax rate generates excess M&O revenue of $1.4 million, with the onetime addition of federal EduJobs funding the excess revenue is $1.6 million. It is expected that the Board will use excess M&O revenue in fund balance to assist in paying off the 2008 bond.

 It is expected that Luminant will pay taxes on the undisputed amount reducing the excess revenue to $1.1 million without EduJobs funding and $1.3 million with the federal funds included.

 FUTURE BUDGET PROJECTIONS

It is expected that the district will reach an M&O tax rate of $1.04, the maximum tax rate without voter approval, in 2017-18. This projection includes normal increases each year of $300,000.

 As a reminder, TISD annually funds $500,000 of 199 costs with I&S revenue. The 2008 bond amount expires in 2012-13. Considering that amount being placed back into 199 would max out the $1.04 in 2016.

 Effect on District Goals: Supportive of All Goals

                                                                CONSENT ITEMS

(Items Discussed at Previous Board Meetings)

 Consent Item A: Minutes of the regular meeting of the Board of Trustees on July 5, 2011

 Effect on District Goals: Neutral

 Administrative Recommendation: The administration recommends approval of the minutes of the regular meeting of the Board of Trustees on July 5, 2011.

 Consent Item B: Consider Option 3 Contract for reducing wealth in 2011-12

 Estimated Chapter 41 wealth equalization recapture payments for 2011-12 are based on the estimated WADA of 1990, an increase of 6 WADA from 2010-11, and estimated taxes to be collected with the $0.94 M&O tax rate.

 The table below indicates a 5 year average increase of 64 WADA per year.

 Using these numbers the estimated discounted Option 3 payment (sending the money directly to the state) is $7,474,978 and the estimated discounted Option 4 payment (sending the money to another district) is $7,642,124.

 The option 3 contract is discounted based on an “early agreement credit” that is granted if the Chapter 41 district sends in a signed Option 3 Contract. The traditional deadline for submission of Option 3 contracts is September 1.

 Effect on the district goals: Supportive of Goal 6, “TISD will become the best-cost-provider of educational related programs and services.”

 Administrative recommendation: The administration recommends approval of an Option 3 contract for reducing wealth in 2011-12.

 Consent Item C:  2011-12 Supply Budgets

 Several student activities for the 2011-12 school year begin in August and the fiscal year of 2010-11. This request is to allow expenditure of those supply accounts in August.

 Effect on District Goals: Neutral

Administrative Recommendation: The administration recommends approval of expending 2011-12 supply budgets in August 2011 for those student related activities that begin in August.

Consent Item D:  2011-12 Strategic Plan and Goal Focus Areas

 DISTRICT GOAL 1: Tatum ISD has a community that sets and supports high educational expectations.

OBJECTIVE 1.1: Tatum ISD is an exemplary district.

PHASE 1.1.1: 90% of all students and each sub-group are successful on the state accountability testing system.

FOCUS AREA: Math and Science Scores

PHASE 1.1.2: GPA in Student Attendance – 96% TISD, 97% TPS & TES, 96% TMS, 95% THS

TISD is consistently ½ to 1% below the state average and a 1% increase in student attendance is approximately $100,000 increase in revenue.

OBJECTIVE 1.2: Tatum ISD has a challenging CIA program, requiring high levels of learning & accountability, preparing graduates for higher education or employment.

PHASE 1.2.2: GPA commended status on all TAKS tested areas (> 50%).

PHASE 1.2.3: Texas Success Initiative ELA/MATH College Readiness Indicator of TAKS scale score > 2200 and > 3 on writing.

FOCUS AREA: All tested areas

 OBJECTIVE 1.5: Tatum ISD has a high quality faculty and staff.

PHASE 1.5.4: Professional absentee rate will be less than 5% or % attendance > 95%.

In 2010-11 there were 689 school related days missed (extra-curricular and staff development), 854 personal days missed (discretionary and non-discretionary) for a total of 1564 days and attendance rate of 91.4%.

 These days cost TISD $94,000 and there were on average 8.8 substitutes per day in TISD classrooms.

 OBJECTIVE 4.2: Tatum ISD will foster the integration of technology into the TISD CIA program.

PHASE 4.2.1: TISD staff members will develop and implement instruction using technology that provide rigorous and relevant zone 3 activities incorporating P21 skills using multiple technologies, including emerging.

 Administrative Recommendation: The administration recommends approval of the 2011-12 Strategic Plan and Goal Focus Areas.

 Consent Item E:  Budget amendments

 Effect on District Goals: Neutral

 Administrative Recommendation: The administration recommends approval of budget amendments as presented.

                                                                    Action Items

Action Item A: 2011-12 Salary Adjustments

 The budget includes a 2% salary increase for all employees.

Effect on District Goals: Supportive of Goal 1, Objective 1.5, “TISD has a high quality faculty and staff.”

 Administrative Recommendation: The administration recommends the approval of a 2% pay adjustment to the TISD pay system.

.Action Item B: 2011-12 Budget

 The budget information was presented in the public meeting portion of this meeting.

 Effect on District Goals: Supportive of All Goals

 Administrative Recommendation: The administration recommends the approval of the budget as presented.

 Action Item C: Adoption of Ordinance 33 setting a 2011-12 M&O tax rate of $0.94 and I&S tax rate of $0.10 for a total rate of $1.04.

ORDINANCE 00033 SETTING TAX RATE

August 9, 2011

 On this date, we, the Board of Trustees of the Tatum Independent School District, hereby levy or set the tax rate on $100 valuation for the District for the tax year 2010 at a total tax rate of $1.04, to be assessed and collected by the duly specified assessor and collector as follows:

 $0.94 for the purpose of maintenance and operation, and

 $0.10 for the purpose of payment of principal and interest on debts.

 Such taxes are to be assessed and collected by the tax officials designated by the District.

 THIS M&O TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR’S TAX RATE.

 THE M&O TAX RATE WILL EFFECTIVELY BE RAISED BY 2% PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $11.

 IN CERTIFICATION THEREOF:

 Signed:                                                           

                        President

 Attest:                                                            

                        Secretary

 Effect on the district goals: Supportive of All Goals

 Administrative recommendation: The administration recommends the adoption of Ordinance 00033 setting the 2010-11 tax rate at $0.94 M&O and $0.10 for I&S for a combined rate of $1.04.

 Action Item D:  Resolution for additional 2008 bond payment in 2011-12

 The tax collections on the RCAD certified values would generate in excess of the $2,416,283 bond payment in February 2012.  Thus, allowing for additional bond payments.

 But, if Luminant decides to protest their value at District Court there will not be enough revenue available to increase the bond payment.

 Thus, the administrative recommendation is to wait for official notification from Luminant before making a decision on this item. The appeal must be filed within 45 days of receiving notification from RCAD ARB, putting the deadline into the first week of September.

 Effect on District Goals: Supportive of Goal 6, “Tatum ISD will become the best-cost-provider of educational related programs and services.”

 Administrative Recommendation: The administration recommends waiting until September for a decision.

 Action Item E: Consider approval of budget amendments to Function Expenditures

 During the course of the year some functions are overspent and other functions are not completely spent. During the audit, the district is penalized for any function that is overspent and was not amended to reflect the appropriate expenditure. Budget amendments are submitted to the Board during the year in an attempt to alleviate this problem. But, there might be some functions that are overspent between now and the end of the fiscal year, August 31. It is requested that the Board allow the superintendent to approve budget amendments to any function that doesn’t affect the overall or bottom line of the approved budget.

 Effect on the district goals: Supportive of Goal 6, Objective 1: “TISD will develop and adopt balanced budgets.”

 Administrative recommendation: The administration recommends allowing the superintendent to approve budget amendments between functions that don’t exceed the total budget.

 Action Item F: Student Code of Conduct

 The recent session of the Texas Legislature created changes for the student code of conduct.

 Effect on the district goals: Supportive of Goal 1, Objective 1.4, “TISD has a safe & alcohol/drug-free climate that fosters discipline, respect, confidence and a desire to contribute.

 Administrative recommendation: The administration recommends approval of the Student Code of Conduct.

                                                         DISCUSSION ITEMS 

 Discussion Item A: Board Policy EIA, EIC, EIA & EIE Local

 The implementation of STAAR end-of-course testing will have multiple impacts on Board policies related to credits, class rankings, etc. as outlined in the TASB document.

 Effect on District Goals: Supportive of Goal 1, Objective 1.1, “Tatum ISD is an Exemplary district.”

                                                         INFORMATION ITEM

Information Item A: Annual Investment Report

 Board Policy CDA requires that “the investment policy and the investment strategy shall be reviewed not less than annually.”

 Effect on District Goals: Supportive of Goal 6: “TISD will become the ‘best-cost-provider’ of educational related programs and services.”

 Information Item B: Program Evaluation: Facilities, Maintenance & Custodial; Business Operations

GOAL 3: Tatum ISD has modern and well-maintained FACILITIES that meet the needs of students, staff and community.

GOAL 5: Tatum ISD will become the “best-cost-provider” of educational related programs and services.

 Effect on District Goals: Supportive of Goal

 Information Item C: Program Evaluation: Facilities, Maintenance & Custodial; Business Operations

Effect on District Goals: Supportive of Goal