Budget

Development
2016/2017
May 9, 2016
Board Workshop

Agenda
Final Assumptions (Whats 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

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%

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

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

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

Source: FBISD Finance & District Websites

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

Source: FBISD Finance & District Websites

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
FBISDs 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

($000s)
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

31