2008-2009 tax rate adoption north east isd august 11, 2008
TRANSCRIPT
2008-20092008-2009Tax Rate AdoptionTax Rate Adoption
North East ISDNorth East ISD
August 11, 2008August 11, 2008
2
2008-2009 Certified Tax Roll2008-2009 Certified Tax Roll $2.52 Billion increase in taxable value $2.52 Billion increase in taxable value
(10.1%)(10.1%)2007: $25.06B taxable value2007: $25.06B taxable value2008: $27.58B taxable value2008: $27.58B taxable value
Approximately $950M in new growthApproximately $950M in new growth Approximately $1.57B in increased Approximately $1.57B in increased
values on existing properties (6.3%)values on existing properties (6.3%)
Source: NEISD Finance
3
Assessed Property ValueAssessed Property ValueTax Years 1988-2008Tax Years 1988-2008**
$8
$12
$16
$20
$24
$28
Tax Year
Val
ue (
in b
illio
ns)
Source: NEISD Finance, Kavoussi & Associates * Preliminary Certified for 2008
4
Residential Property Tax IncreasesResidential Property Tax Increases
Average NEISD Home Value: $154,320NEISD Tax Rate: $1.4029Property Taxes Due to NEISD: $2,165
Average NEISD Home Value: $163,622NEISD Tax Rate: $1.4029 (proposed)Property Taxes Due to NEISD: $2,295
2007-2008
2008-2009
Average home value increased 6% -- Average
property tax will increase $130
Tax rate is $1.4029 per $100 of appraised home value.
$1.04 is used for M&O (General Fund); $.3629 is only to pay
debt.Source: NEISD Finance; Bexar County Appraisal District
5
The New ABCs of Property TaxesThe New ABCs of Property Taxes
Taxpayer writes property tax check for $130 more than they paid last year…
$34
…$34 comes to NEISD but can only be used to pay off bonds…
$96
…$96 goes to the State.
For every $1 in M&O property tax paid due to higher home values, the State takes away $1 in
aid to the District.Source: NEISD Finance
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Target RevenueTarget Revenue Combined local property tax revenue & Combined local property tax revenue &
state aid revenue is “locked in” to a state aid revenue is “locked in” to a specific amount per Weighted Average specific amount per Weighted Average Daily Attendance (WADA)Daily Attendance (WADA)
The target is both a floor & a ceilingThe target is both a floor & a ceiling If local property values decline (& property If local property values decline (& property
tax revenue declines accordingly), state aid tax revenue declines accordingly), state aid increases to ensure $5,349 total per WADAincreases to ensure $5,349 total per WADA
If local property values increase (& property If local property values increase (& property tax revenue rises accordingly), state aid tax revenue rises accordingly), state aid decreases to ensure $5,349 total per WADAdecreases to ensure $5,349 total per WADA
Source: NEISD Finance
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Target RevenueTarget Revenue No additional funding available for No additional funding available for
inflationary costs; examples:inflationary costs; examples: Salary increases to keep pace with cost of Salary increases to keep pace with cost of
livingliving Fuel & UtilitiesFuel & Utilities
Additional funding only possible if:Additional funding only possible if: WADA increases due to enrollment growthWADA increases due to enrollment growth WADA increases due to an improvement in WADA increases due to an improvement in
the attendance rate the attendance rate Electorate votes to raise M&O taxes above Electorate votes to raise M&O taxes above
$1.04$1.04Source: NEISD Finance
8Source: NEISD Finance
General Fund State Local General Fund State Local FundingFunding
15%
25%
35%
45%
55%
65%
75%
85%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
State Local & Other
Reduction to tax rate/new “hold-harmless” rules
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2008-20092008-2009General Fund Adopted General Fund Adopted
BudgetBudget
10
2008-2009 BudgetGeneral Fund Revenue
Source: NEISD Finance
2007-20082007-2008
ProjectedProjected% of % of TotalTotal
2008-20092008-2009
BudgetBudget% of % of TotalTotal
RevenueRevenue
LocalLocal$ $
270,571270,571 58.9%58.9%$ $
293,237293,237 62.5%62.5%
StateState 187,668187,668 40.8%40.8% 174,227174,227 37.2%37.2%
FederalFederal 1,1841,184 0.3%0.3% 1,2011,201 0.3%0.3%
Other SourcesOther Sources 171171 <0.1%<0.1% 174174 <0.1%<0.1%
Total RevenueTotal Revenue$ $
459,594459,594$ $
468,839468,839
(in 000s)(in 000s)
$9,245 increase, $9,245 increase, 2.0%2.0%
11
2008-2009 BudgetGeneral Fund Expenditures
Source: NEISD Finance
2007-20082007-2008
ProjectedProjected% of % of TotalTotal
2008-20092008-2009
BudgetBudget% of % of TotalTotal
ExpendituresExpenditures
Salaries/BenefitsSalaries/Benefits $ 398,719$ 398,719 83.5%83.5% $ 415,891$ 415,891 86.0%86.0%
Contract Contract ServicesServices 35,01635,016 7.3%7.3% 40,12940,129 8.3%8.3%
SuppliesSupplies 17,54717,547 3.7%3.7% 19,17319,173 4.0%4.0%
Other OperatingOther Operating 4,4374,437 0.9%0.9% 7,1607,160 1.5%1.5%
Capital OutlayCapital Outlay 13,29413,294 2.8%2.8% 1,3531,353 0.2%0.2%
Other UsesOther Uses 8,6248,624 1.8%1.8% 9090 <0.0%<0.0%
Total ExpendituresTotal Expenditures $ 477,637$ 477,637 $ 483,796$ 483,796
(in 000s)(in 000s)
$6,159 increase, 1.3%$6,159 increase, 1.3%
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2008-2009 Budget2008-2009 Budget General Fund General Fund SummarySummary
2007-2008 2007-2008 ProjectedProjected
2008-2009 2008-2009 BudgetBudget
Total RevenueTotal Revenue $ 459,594$ 459,594 $ 468,839$ 468,839
Total ExpendituresTotal Expenditures 477,637477,637 483,796483,796
Net Increase/(Decrease) Net Increase/(Decrease) to Fund Balanceto Fund Balance ($ 18,043)($ 18,043) ($ 14,957)($ 14,957)
Beginning Fund BalanceBeginning Fund Balance 78,93978,939 60,89660,896
Ending Fund BalanceEnding Fund Balance $ 60,896$ 60,896 $ 45,939$ 45,939
Months of Expenditures in Fund Balance 1.5 1.1
Source: NEISD Finance
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Fund BalanceFund Balance Fund Balance = Fund Balance = CashCash
Fund Balance = Fund Balance = SavingsSavings
Fund Balance = Fund Balance = Net difference Net difference between total assets and total between total assets and total liabilities at a given point in timeliabilities at a given point in time
Source: NEISD Finance
14
2007-2008 Cash Flows2007-2008 Cash Flows
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
JUL
Y
AU
G
SE
PT
OC
T
NO
V
DE
C
JAN
FE
B
MA
R
AP
R
MA
Y
JUN
E
Inflow Outflow
Cash
Am
ou
nt
(in
/ou
t) in
00
0s
Source: NEISD Finance
15
2008-2009 C2008-2009 Cash Positionash Position
Source: NEISD Finance
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
$240,000
Jul-0
8
Aug
-08
Sep
-08
Oct
-08
Nov
-08
Dec
-08
Jan-
09
Feb-
09
Mar
-09
Apr
-09
May
-09
Jun-
09
Wee
kly
Cas
h B
alan
ce ($
000s
)
16
2008-20092008-2009Debt Service FundDebt Service FundAdopted BudgetAdopted Budget
17
2008-2009 Budget2008-2009 BudgetDebt Service FundDebt Service Fund
2007-2008 2007-2008 ForecastForecast
2008-2009 2008-2009 BudgetBudget
Total RevenueTotal Revenue $ 96,639$ 96,639 $ 97,952$ 97,952
Total ExpendituresTotal Expenditures 82,24582,245 81,65581,655
Net Increase/(Decrease) Net Increase/(Decrease) to Fund Balanceto Fund Balance $ 14,394$ 14,394 $ 16,297$ 16,297
Beginning Fund BalanceBeginning Fund Balance 35,90235,902 50,29650,296
Ending Fund BalanceEnding Fund Balance $ 50,296 $ 50,296 $ 66,593$ 66,593
Source: NEISD Finance
In ($000s)
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Debt Service Fund BalanceDebt Service Fund BalanceBy Month ($000s)By Month ($000s)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000J
un
-06
Se
p-0
6
De
c-0
6
Ma
r-0
7
Ju
n-0
7
Se
p-0
7
De
c-0
7
Ma
r-0
8
Ju
n-0
8
Se
p-0
8
De
c-0
8
Ma
r-0
9
Ju
n-0
9
Source: NEISD Finance BUDGETED
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2008-20092008-2009Proposed Tax RatesProposed Tax Rates
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Tax Rate2007-08 General (M&O) $1.04002008-09 General (M&O) $1.0400*
Change in Tax Rate $0.0000
2007-08 Debt Service (I&S) $0.36292008-09 Debt Service (I&S) $0.3629*
Change in Tax Rate $0.0000
2007-08 Total Tax Rate $1.40292008-09 Total Tax Rate $1.4029*
Change in Tax Rate $0.0000
Proposed 2008-2009Proposed 2008-2009Tax RatesTax Rates
Source: NEISD Finance *Recommended
21
M&O Tax Rate M&O Tax Rate HistoryHistory
$0.50
$0.70
$0.90
$1.10
$1.30
$1.50
1987 1990 1993 1996 1999 2002 2005 2008
08-09 Proposed Rate = $1.04
Source: NEISD Finance
Property Value Declines
State Proration
■ M&O Tax Rate
22
$0.03
$0.08
$0.13
$0.18
$0.23
$0.28
$0.33
$0.38
Tax Year
Historical Projected
I&S Tax Rate HistoryI&S Tax Rate History
Source: NEISD Finance & ME Allison
Questions?Questions?