2016 17 budgetworkshopfbcad

Budget Development 2016/2017 May 9, 2016 Board Workshop

Agenda • Final Assumptions (What’s Changed?)

• Property Value and Tax Rate Update • Compensation Discussion and Recommendations • Review 2016/2017 Proposed Budget

• Fund Balance Strategies • Next Steps 2

2016/2017 Final Budget Assumptions  Enrollment – 74,115 (PASA February 2016 Low Growth)

 11.2% Property Value Growth / 14.5% Prior Year Comptroller Growth  43 Approved/Requested Positions in Aggregate Totaling $1.83M  7 Additional Campus Formula Positions Requested for May 16th Approval

 ESL Structural Efficiencies and DAEP Consolidation  Cost of Teacher Step – Estimated $2.5M

 No Universal Salary Scale Adjustments  Employee Compensation Adjustments of Approximately $1.85M  Additional Bus Routes (Sullivan, DAEP, EDGE)  IDEA-B Positions Moving to General Fund Totaling $2M

3

Property Value Growth Freeze Adjusted Net Taxable Value 0.18 15.40%

0.16

0.14

12.55% 11.20%

0.12

10.10% 0.1

8.26%

0.08 5.21%

0.06 0.04 2.13% 0.02

0.82%

0 -0.67%

-0.02

-2.07% -0.04

2007

2008

2009

Source: Fort Bend Central Appraisal District

2010

2011

2012

2013

2014

2015

2016E 4

Reduction of $0.02 to I&S Tax Rate

From $0.30 to $0.28 5

Impact of PV Increase on Average FBISD Home

As Proposed at $1.32

Published 2015/2016

Proposed 2016/2017

Proposed Change

Avg Market/Assessed Value of Residences

$256,914

$274,659

6.91%

Avg Taxable Value of Residences

$219,386

$240,706

9.72%

M&O Rate

$1.04

$1.04

$0.00

I&S Rate

$0.30

$0.28

-$0.02

Total Tax Rate

$1.34

$1.32

-$0.02

$2,880.97

$3,113.77

Annual Taxes on Average Residence Annual Increase in Taxes

$232.80

Monthly Increase in Taxes

$19.40

% Change

8.08%

Source: Fort Bend Central Appraisal District

8.08%

6

Tax Rate Comparison of Peer Districts 2.50

Tax Year 2015 2.00

1.50

1.00

0.50

-

M&O Tax Rate Source: FBISD Finance and District Websites

I&S Tax Rate

7

General Fund Revenue History 100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0% 07-08

08-09

09-10

10-11

11-12

State Aid

12-13

Local

Source: FBISD Finance

13-14

14-15

15-16

16-17 Proposed

Tax Levy 8

2016/2017 Compensation Recommendations

Board Meeting May 9, 2016

Teacher Pay Scale History 66,000

2015/2016 FBISD Teacher Pay

64,000 62,000 60,000 58,000

FBISD 2015-16 56,000 54,000

FBISD 2014-15 52,000 50,000 48,000 0 Source: FBISD Finance

3

6

9

12

15

18

21

24 10

Salary Scale Overview 66,000

2015/2016 Teacher Pay Compared to other current scales

64,000 62,000 60,000 58,000

Katy ISD

56,000

Lamar CISD

54,000

Cy-fair ISD

52,000

Fort Bend ISD

50,000 48,000 0

3

6

Source: FBISD Finance & District Websites

9

12

15

18

21

24

11

Salary Scale Overview 66,000

2016/2017 Teacher Pay - No step Compared to other current scales

64,000 62,000 60,000 58,000

Katy ISD

56,000

Lamar CISD

54,000

Cy-fair ISD

52,000

Fort Bend ISD

50,000 48,000 0

3

6

Source: FBISD Finance & District Websites

9

12

15

18

21

24

12

Compensation Annual Reviews

Job Reclassification

Internal Equity (CYE)

External Equity (Benchmarking)

13

Compensation Strategy District Goal 2: FBISD will recruit, develop and retain effective teachers and staff.

Performance Objective 1: Implement the HR People Strategy that incorporates best practice for the recruitment, hiring and development of talent, a competitive compensation structure, and effective onboarding of new hires.

Strategy Description

Evidence that Demonstrates Success

Internal Equity- Creditable Year of Experience • (CYE) • Internal salary equity will improve for 30% of • FBISD’s workforce on the traditional pay • structure by July 2016 with the remaining 70% to be completed by 2018.

Implement an effective and efficient stipend administration process.

• Clearly define work duties for each stipend.

• Establish market competitive stipend salary.

• Improve process so employees know what they are being competitively compensated for and they will be paid timely and accurately for service performed; thus, reducing overpayment and underpayment to our employees.

Performance Indicator: CYE uploaded into PeopleSoft Metric: # employee's CYE uploaded into PeopleSoft Target Goal: 30% CYE uploaded

• • •

Performance Indicator: Stipend descriptions written Metric: # completed stipend descriptions Target Goal: 50% completed

• • •

Performance Indicator: Stipend benchmarking completed Metric: # completed stipend benchmarking Target Goal: 50% completed

• • •

Performance Indicator: Stipends processing Metric: # stipends processed timely and accurately 14 Target Goal: 90% completed

Annual Review Timeline Oct -Nov

Nov-Dec

Jan-Mar

Mar-May

May

• Requests from leaders

• E-team reviews requests

• HR processes requests

• Comp recommendations vetted with stakeholders

• Comp recommendations presented to Board 15

2014/2015 Comp Reviews 44 5 2 262 225 166 22 7 11 1 148 46 18 320 250

Police Officers Sergeants Lieutenants Aide Severe Aide Non-Severe Clerks I - IV Registrar (Assistant/Paraprofessional) Supervisor Extended Day Advisor College and Career Readiness (CCR) Librarian Digital Resources and Systems Counselors Coordinators Therapist, Physical and Occupational Bus Drivers Custodians 16

2015/2016 Comp Reviews 253 70 2 197 11 18 18 5 255 232 27

Campus Aides Receptionist Lieutenants Office Support (Admin Assist & Executive Assist) Athletics- Head Coach/Head Athletic Trainer Human Resources Payroll, Benefits and Accounting Assistant Buyer/Buyer Instructional Professionals Campus Administration Instructional Leaders

17

Attrition Data

Benchmark Data

Recommendation •

Move LSSPs from PG103 to PG104

*TPS- Teacher Pay Scale

18

Attrition Data

Benchmark Data

Recommendations •

No change in pay grade. Equity review conducted for adjustments for Executive Assistant I.

19

20

21

Recommendation

Budget

Reclassification

$73,063

Internal Equity

$953,753

External Equity

$329,723

Stipends

$492,000 Total $1,848,539

22

2016/2017 Proposed Budget

23

2016/2017 Proposed General Fund Revenue Sources Local

State

Federal

1%

$ Millions Local Revenues State Revenues Federal Revenues Total Revenues

Source: FBISD Finance

$364.2 216.8 7.8 $588.8

Source: FBISD Finance

37%

$588.8M 62%

24

2016/2017 Proposed Budget By Major Function

Source: FBISD Finance

25

2016/2017 Proposed Budget By Major Object

Source: FBISD Finance

26

2016/2017 Proposed Budget

2016/2017 Proposed Budget in Aggregate ($000’s) Revenue

$

Operating Expenditures Other Sources/Uses Other Financial Sources Net Change in Fund Balance Beginning Fund Balance Ending Fund Balance Notes:

$

2014-15

2015-16

2016-17

Actuals

Estimate

Estimate

557,846

$

591,022

588,804

559,652

578,051

592,626

-

(6,761)

-

1,610

1,000

1,500

(196)

7,210

(2,323)

170,090 169,894

169,894 177,104

177,104 174,781

$

Remember: Fund Balance ≠ Cash Balance

•

Enrollment growth based on PEIMS Snapshot Data • CPTD is prior year and adjusted for hold harmless • CAD is certified value adjusted for $25K exemption

$

Source: FBISD Finance

$ • • • •

+1033 students CPTD = 14.45% CAD = 11.20% F&R = 36.50% 27

2016/2017 Proposed Budget

Fund Balance Strategies Projected

Current

Committed & Assigned Fund Balance

YE 2015

YE 2016

YE 2017

YE 2018

Non-spendable

$

4,839,981 $

1,839,981 $

4,839,981 $

1,839,981

Major maintenance

$

6,387,000 $

6,400,000 $

6,400,000 $

6,400,000

Instructional materials

$

2,680,000 $

2,680,000 $

2,680,000 $

2,680,000

Transportation

$

2,500,000 $

1,500,000 $

1,500,000 $

-

New instructional facilities

$

2,000,000 $

4,500,000 $

4,500,000 $

-

Economic Stabilization

$

- $

7,822,721 $

3,500,000 $

-

Assigned fund balance

$

5,919,425 $

5,919,425 $

5,419,425 $

5,919,425

$

24,326,406 $

30,662,127 $

28,839,406 $

16,839,406

Total Committed & Assigned FB*

*Excludes 30 day state revenue stabilization and Unassigned FB as per Board Policy

Source: FBISD Finance

28

2016/2017 Proposed Budget

Fund Balance Strategies REVENUE

Projected

Projected

Projected

2015-16

2016-17

2017-18

Committed Fund Balance

30,662,127

28,839,406

16,839,406

State Revenue Stabilization

48,367,300

49,385,500

50,051,200

Unassigned Fund Balance - Ending

98,074,085

96,555,900

99,368,800

$ 177,103,512

$ 174,780,806

$ 166,259,406

90 Day M&O Reserve

144,101,552

146,027,042

147,995,463

Over/(Under) 90 Days

2,339,833

(85,642)

1,424,537

25%

25%

25%

91 Days

90 Days

91 Days

Total Fund Balance

Undesignated FB as % of Exps.

FB in Days of Operating Expenses

Source: FBISD Finance

29

2016/2017 Proposed Budget

Millions

Unassigned Fund Balance History $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 2008

2009

2010

2011

Unassigned

2012

2013

2014

2015

2016E

Committed (1 mo.)

Source: FBISD Finance

30

Next Steps

Count Down to Budget Adoption…

May 9 • Budget Briefing

May 16

June

• Compensation, Stipends, and Adjustments Approval

• Budget Hearing

• Additional Position Approvals

• Fund Balance Resolution

• Call Date for Budget Hearing

• Budget Adoption

• Final Amendment

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