Katy Independent School District August 25, 2015 2015 2016 Official - - PDF document

August 25, 2015 2015‐2016 Official Budget The Texas Education Code requires that every local education agency in Texas prepare and file a budget

• f anticipated revenues and expenditures with the Texas Education Agency. The State Board of

Education requires that the budget be prepared no later than August 20 and adopted by August 31 by the Board of Trustees. The Superintendent is designated as the District’s budget officer and is responsible for calling a Board meeting to adopt the official budget. The attached budget is based on the guidelines as outlined in the Texas Education Code and Texas Education Agency Financial Accounting Guide. The budget includes total revenues of $784,993,022, total expenditures of $780,852,617, transfers out of $2,250,000. The budget consists of three fund types: General Fund, Special Revenue Fund, and Debt Service Fund. The General Fund budget includes revenues of $628,624,836, expenditures of $620,073,810 and transfers out of $5,737,982. Revenues are composed of local revenues, including property taxes (59%), revenues received from the state (39%) and federal revenues (2%). Tax revenues are based on the current Maintenance and Operations tax rate of $1.1266 and taxable values of $32.9 billion. State revenues are based on a projected enrollment of 73,578 students. Major expenditure categories include payroll, contracted services, supplies, operating expenditures, and capital. Payroll expenditures, which comprise 85% of the General Fund budget, include the staffing plans and salary increases approved by the Board earlier in the year. Revenues exceed expenditures and transfers out resulting in a projected increase in fund balance of $2,813,044. The Special Revenue budget consists of anticipated revenues and expenditures pertaining to the District’s food services operations. Food Service revenues and expenditures are projected to be $29,203,795 and $30,392,022 respectively, resulting in a projected decrease in fund balance of $1,188,227. The Debt Service Fund is used to account for payment of principal and interest on the District’s long‐ term debt. The District’s Debt Service expenditure budget is $130,386,785. The primary revenue source is local property taxes. Revenues of $127,164,391 are based on the current Debt Service tax rate of $0.39. Other sources of revenue include Transfers In of $250,000 of interest earnings on bond proceeds and $3,237,982 for the subsidy from Build America Bonds. Fund Balance is projected to increase $265,588. Impact Statement: Approval of the Official Budget will provide funding for the District’s daily

• perations, its food services programs, and the servicing of long‐term debt.

Support of District Focus: Effective and Efficient Operations

2015-16 Budget Hearing

FINANCIAL SERVICES AUGUST 25, 2015

2015-2016 Budget Overview

The Texas Education Code requires that every local education agency in Texas prepare and file a budget of anticipated revenues and expenditures with the Texas Education

• Agency. The State Board of Education

requires that this budget be prepared no later than August 20 and adopted by August 31 by the Board of Trustees.

Assumptions

• Enrollment – 73,578
• New Campuses:
• Tompkins High School – 12th Grade
• Tax Base – $32,985,000,000
• Staffing – Includes OTHS 12th grade plus growth

Assumptions

• 3% Salary Increases
• Maintenance & Operations Tax Rate: $1.1266
• Debt Service Tax Rate: $0.39

2015-16 General Fund

2015-16 General Fund - Revenue

REVENUES Tax Revenue ($1.1266) 364,463,000 $ TIRZ Revenue - Local 2,156,880 TIRZ Revenue - State 921,310 Other Local Revenue 7,920,000 State Funding 212,237,607 State TRS Contributions 30,074,702 Federal Revenue 10,851,337 Total Revenues 628,624,836 $

2015-16 General Fund - Revenue

39% 39% 59% 59%

2% 2%

State Program Revenues Property Taxes & Other Local Revenue Federal Program Revenues

“SO, WHAT IF LOCAL PROPERTY VALUES GO UP?”

STATE FUNDING

44%

LOCAL FUNDING

54% General Fund Revenue

“STATE FUNDING GOES DOWN PROPORTIONATELY”

STATE FUNDING

39%

LOCAL FUNDING

59%

+ 5%

• 5%

General Fund Revenue

Two main parts to our budget

85% 15%

Payroll Costs Non-Payroll Costs

2015-16 General Fund

2015-16 General Fund – Payroll & Benefits

PAYROLL BUDGET Salaries 430,417,299 $ Other Compensation 26,682,525 Benefits 81,027,022 Total Payroll Budget 538,126,846 $

2015-16 General Fund

NON-PAYROLL COSTS Campus & Department Allocations 54,488,384 $ (Utilities, Fuel, Software, Appraisal Fees) Non-Allocations 36,854,331 TIRZ Contribution 3,120,641 Total Non-Payroll Costs 94,463,356 $

2015-16 General Fund

Payroll Costs 85%

Purchased and Contracted Services 5% Capital Outlay 1% Other Operating 2% Supplies and Materials 7%

2015-16 General Fund

Budgeted Fund Balance at September 1, 2015 172,353,235 $ Revenues Property Taxes and Other Local Revenues 374,539,880 State Program Revenues 243,233,619 Federal Program Revenues 10,851,337 Total Revenues 628,624,836 Expenditures Payroll Costs 527,364,308 Purchased and Contracted Services 30,534,340 Supplies and Materials 44,550,735 Other Operating Expenses 9,837,215 Capital Outlay 7,787,212 Total Expenditures 620,073,810 Operating Transfers In (Out) (5,737,982) Net Change to Fund Balance 2,813,044 Budgeted Fund Balance at August 31, 2016 175,166,279 $

GENERAL FUND

2015-16 Food Service Fund

Budgeted Fund Balance at September 1, 2015 4,589,373 $ Revenues Local Revenues 16,684,000 State Program Revenues 152,000 Federal Program Revenues 12,367,795 Total Revenues 29,203,795 Expenditures Payroll Costs 12,003,970 Purchased and Contracted Services 61,000 Supplies and Materials 18,288,052 Other Operating Expenses 39,000 Capital Outlay Total Expenditures 30,392,022 Operating Transfers In (Out) Net Change to Fund Balance (1,188,227) Budgeted Fund Balance at August 31, 2016 3,401,146 $ FOOD SERVICE FUND

2015-16 Debt Service Fund

Budgeted Fund Balance at September 1, 2015 50,265,221 $ Revenues Local Revenues Property Taxes ($0.39) 126,914,391 Interest Earnings 250,000 Total Local Revenues 127,164,391 Total Revenues 127,164,391 Expenditures Principal & Interest Payments 130,077,908 Fees - Trust Department and Other 308,877 Total Expenditures 130,386,785 Transfers In (Out) - Capital Projects & GOF Funds 3,487,982 Net Change to Fund Balance 265,588 Budgeted Fund Balance at August 31, 2016 50,530,809 $ DEBT SERVICE FUND

Includes $6.1M principal defeasance and $5.6M interest on new money bonds issued in 2016

2015-16 Summary – All Funds TEA Format

Special Debt General Revenue Service Fund Fund Fund Total Fund Balance at September 1, 2015 172,353,235 $ 4,589,373 $ 50,265,221 $ 227,207,829 $ Revenues: Property Taxes and Other Local Revenue 374,539,880 16,684,000 127,164,391 518,388,271 State Program Revenues 243,233,619 152,000 243,385,619 Federal Program Revenues 10,851,337 12,367,795 23,219,132 628,624,836 29,203,795 127,164,391 784,993,022 Payroll Costs 527,364,308 12,003,970 539,368,278 Purchased and Contracted Services 30,534,340 61,000 30,595,340 Supplies and Materials 44,550,735 18,288,052 62,838,787 Other Operating Expenses 9,837,215 39,000 9,876,215 Debt Payments 130,386,785 130,386,785 Capital Outlay 7,787,212 7,787,212 Total Expenditures 620,073,810 30,392,022 130,386,785 780,852,617 Operating Transfers In (Out) (5,737,982) 3,487,982 (2,250,000) Net Change To Fund Balance 2,813,044 (1,188,227) 265,588 1,890,405 Fund Balance at August 31, 2016 175,166,279 $ 3,401,146 $ 50,530,809 $ 229,098,234 $ Proposed Official Budget 2015-16 Total Revenues Expenditures:

Special Debt General Revenue Service Fund Fund Fund Total Revenues

5700 Property Taxes and Other Local Revenues

374,539,880 16,684,000 127,164,391 518,388,271

5800 State Program Revenues

243,233,619 152,000 243,385,619

5900 Federal Program Revenues

10,851,337 12,367,795 23,219,132 Total Revenues 628,624,836 29,203,795 127,164,391 784,993,022 Expenditures

11

Instruction 397,859,687 397,859,687

12

Instructional Resources and Media Services 7,800,566 7,800,566

13

Curriculum and Instructional Staff Development 9,039,702 9,039,702

21

Instructional Leadership 5,323,158 5,323,158

23

School Leadership 35,663,916 35,663,916

31

Guidance, Counseling and Evaluation Services 25,345,734 25,345,734

33

Health Services 5,656,615 5,656,615

34

Student (Pupil) Transportation 18,271,433 18,271,433

35

Food Services 30,392,022 30,392,022

36

Co curricular/Extracurricular Activities 11,407,965 11,407,965

41

General Administration 11,983,928 11,983,928

51

Plant Maintenance and Operations 57,476,162 57,476,162

52

Security and Monitoring Services 7,581,621 7,581,621

53

Data Processing Services 11,853,066 11,853,066

61

Community Services 600,351 600,351

71

Debt Service 130,386,785 130,386,785

81

Facilities Acquisition and Construction 7,303,300 7,303,300

95

Payments to Juvenile Justice Education Program 135,965 135,965

97

Payments to Tax Increment Fund 3,120,641 3,120,641

99

Intergovernmental 3,650,000 3,650,000 Total Expenditures 620,073,810 30,392,022 130,386,785 780,852,617 Proposed Budget 2015-16