Sep 29, 2020 Special Called Meeting

OK, GOOD EVENING, I AM TAMMY RICHARDS, BOARD PRESIDENT AND PRESIDING OFFICER, NOTING THAT

[1. CALL TO ORDER: 6:00 P.M. ]

[00:00:06]

ON TUESDAY, SEPTEMBER 29TH, 2020.

ON THE BOARD'S BEHALF, I WISH TO EXTEND A WARM WELCOME TO OUR VIEWERS AND TO ALL WHO ARE PRESENT WITH US THIS EVENING DUE TO HEALTH CONSIDERATIONS AND IN LIGHT OF THE STATEWIDE DECLARATION OF EMERGENCY RELATED TO THE COVID-19 CORONAVIRUS.

TONIGHT'S SPECIAL CALLED MEETING IS HELD IN THE BOARDROOM WITH LIMITED SEATING CAPACITY AND OVERFLOW LOCATION IN THE LOBBY WITH LIVE STREAMING IS PROVIDED IN ACCORDANCE WITH THE GOVERNOR'S EXECUTIVE ORDER.

AND IN THE ABSENCE OF ANY OTHER CLEAR RULES AND GUIDELINES FROM THE STATE REGARDING ATTENDANCE AT IN-PERSON GOVERNMENTAL MEETINGS DURING THE STATEWIDE DECLARATION OF EMERGENCY, ALL PERSONS IN ATTENDANCE MUST WEAR FACE MASKS AND PRACTICE SIX FEET SOCIAL DISTANCING. ADDITIONALLY, IN ACCORDANCE WITH THE TEXAS EDUCATION AGENCY GUIDANCE FOR VISITS BY THE GENERAL PUBLIC, THE DISTRICT HAS SCREENED EVERYONE PRESENT THIS EVENING TO DETERMINE IF THEY HAVE COVID-19 SYMPTOMS OR OUR TEST CONFIRMED WITH COVID-19 ENTRY TO THE BOARDROOM AND THE OVERFLOW LOCATION IN THE LOBBY IS FIRST COME, FIRST SERVED.

EVERYONE PHYSICALLY PRESENT MUST WEAR A FACE MASK AT ALL TIMES IN ACCORDANCE WITH THE GOVERNOR'S EXECUTIVE ORDER.

EXCEPT WHILE THE PERSON IS GIVING A SPEECH TO AN AUDIENCE, VIOLATORS WILL BE REMOVED FROM DISTRICT PROPERTY. AT THIS TIME, I ASK SUPERINTENDENT SARA BONSER TO VERIFY THAT WE ARE IN COMPLIANCE WITH THE PROVISIONS OF THE TEXAS OPEN MEETINGS ACT REGARDING THE NOTICE FOR THIS MEETING. THANK YOU, PRESIDENT RICHARDS.

YES, I VERIFIED THIS MEETING HAS BEEN POSTED IN COMPLIANCE WITH THE PROVISIONS OF THE TEXAS OPEN MEETINGS.

THANK YOU. LET ME INTRODUCE MY FELLOW TRUSTEES AND STAFF MEMBERS PRESENT THIS EVENING SEATED TO MY LEFT ARE SARA BONSER, SUPERINTENDENT OF SCHOOLS, DR.

THERESA WILLIAMS, CHIEF OPERATING OFFICER AND SECRETARY, DR.

HEATHER WANG, SEATED TO MY RIGHT ARE VICE PRESIDENT JERI CHAMBERS, TRUSTEE DAVID STOLLE, TRUSTEE NANCY HUMPHREY AND TRUSTEE CODY WEAVER AND TRUSTEE ANGELA POWELL.

SEATED AT TABLES ON THE FLOOR ARE RANDY MCDOWELL, CHIEF FINANCIAL OFFICER AND SHARON NOWAK, EXECUTIVE ASSISTANT TO THE SUPERINTENDENT AND BOARD OF TRUSTEES.

WE NOW MOVE TO PUBLIC COMMENT SESSION ON OUR AGENDA.

DR. WILLIAMS, HAS ANYONE SIGNED UP TO ADDRESS THE BOARD? THANK YOU, PRESIDENT RICHARDS.

WE HAVE NO SPEAKERS THIS EVENING.

THANK YOU. WE WILL NOW CONSIDER DISCUSSION AND ACTION ITEMS, BEGINNING WITH APPROVAL

[3A. Approval of a Resolution Adopting the 2020 - 2021 Tax Rate Presenter: Randy McDowell, Chief Financial Officer ]

MR. MCDOWELL. THANK YOU, PRESIDENT RICHARDS. GOOD EVENING.

MEMBERS OF THE BOARD, THIS IS ONE OF THE SHORTER AGENDAS OF MY CAREER AND I'M GOING TO DO MY BEST TO KEEP THE MEETING SHORT AS WELL.

SO WE'LL MOVE RIGHT THROUGH THIS.

SO FIRST, AS TAMMY SAID, WE DO HAVE THE PROPOSED TAX RATE OR THE OPTION OF THE TAX RATE.

SO A COUPLE OF DATES HERE JUST AS A QUICK REVIEW.

SO BACK ON JUNE 11TH, WE PUBLISHED ON THE DISTRICT'S WEBSITE AND THEN IN THE NEWSPAPER THE REQUIRED NOTICE OF BUDGET AND PROPOSED TAX RATE.

ON JUNE TWENTY THIRD, WE HAD THAT PUBLIC HEARING ON THE PROPOSED BUDGET AND TAX RATE.

WE ALSO ADOPTED THE BUDGET THAT NIGHT.

WE RECEIVED A CERTIFIED ESTIMATE OF THE PROPERTY VALUES BY JULY 25TH, BUT WE DID NOT RECEIVE CERTIFIED VALUES UNTIL SEPTEMBER 18TH.

AND SO THIS IS LATER THAN WHAT WE NORMALLY DO.

THERE'S BEEN SOME SOME LAW CHANGES THERE THAT HAVE ALLOWED APPRAISAL DISTRICTS ADDITIONAL TIME IN ORDER TO CERTIFY THOSE VALUES.

AND SO, AGAIN, WE'RE A LITTLE BIT DELAYED OVER WHAT WE'VE BEEN HISTORICALLY.

SO BACK ON THAT CERTIFIED ESTIMATE THAT WE RECEIVED ACTUALLY ON JULY 24TH, OUR VALUES WERE 60 BILLION, THE ESTIMATE WAS $60,260,000,000.

THAT WAS A TWO POINT SEVEN EIGHT PERCENT INCREASE.

ON SEPTEMBER 18TH WHEN WE RECEIVED THE CERTIFIED VALUE, IT WAS $60,569,055,077.

THAT'S A LOT OF DIGITS, BUT IT WAS VERY CLOSE.

SO IT WAS WITHIN POINT ZERO THREE PERCENT OF THE CERTIFIED ESTIMATE, JUST SLIGHTLY LOWER.

THE CURRENT TAX RATES, AS YOU'RE FAMILIAR WITH, THE M&O RATE IS ONE POINT SIX EIGHT THREE FIVE. THE PROPOSED RATE IS ONE POINT ZERO FIVE FOUR SEVEN FIVE.

WHEN WE POSTED THE NOTICE IN THE PAPER AND ON THE WEBSITE, IT WAS ONE POINT ZERO FIVE FOUR EIGHT FIVE.

WE ROUNDED EVERYTHING IN OUR FAVOR AND WE WANTED TO POST HIGHER BECAUSE WE CAN ALWAYS ADOPT A RATE LOWER AND SO WE ROUNDED EVERYTHING IN.

SO THAT PROPOSED RATE IS A ONE POINT THREE SIX PERCENT M&O TAX RATE DECREASE.

[00:05:06]

ON THE I&S RATE, THE DISTRICT HAS HAD THE TWENTY SIX POINT NINE CENT TAX RATE FOR FIVE OR SIX YEARS. WE'RE PROPOSING THAT SAME TAX RATE.

WE'RE NOT LOOKING AT AN ADDITIONAL BOND ISSUANCE FOR THIS TAX YEAR, BUT WE ARE LOOKING AT A SIGNIFICANT REFUNDING THAT WE WILL BE BRINGING YOU IN OCTOBER ON A PARAMETERS ORDER WHERE WE'RE GOING TO TAKE ADVANTAGE OF THE CURRENT RATES AND REFUND ABOUT SIXTY FIVE MILLION OF BONDS AT SOME VERY LOW RATES.

AND WE'RE GOING TO DO OUR BEST.

WE JUST STARTED THAT PROCESS, BUT WE'RE GOING TO DO OUR BEST TO PULL AS MUCH PRINCIPAL UP AS WE CAN AND TRY TO PAY OFF EARLY.

SO CONTINUING ALL THE STRATEGIES THAT HAVE BEEN USED HERE FOR SEVERAL YEARS AND CONTINUING TO IMPROVE THE DEBT SIDE IN THE AMOUNT OF INTEREST THAT WE'RE PAYING.

SO IN TOTAL, THE TOTAL TAX RATE OF THE CURRENT YEAR IS ONE POINT THREE THREE SEVEN THREE FIVE, AND THE PROPOSED RATE IS ONE POINT THREE TWO THREE SEVEN FIVE.

AND AGAIN, OF COURSE, AN OVERALL DECREASE OF THE ONE POINT THIRTY SIX CENTS.

AND WHEN WE LOOK AT TAX RATE COMPRESSION, WE KNOW THIS IS A RESULT OF HOUSE BILL THREE.

AND SO THIS WILL LOOK FAMILIAR TO YOU.

BUT LAST YEAR, THAT DOLLAR, THE FIRST DOLLAR OF OUR TAX RATE, WAS COMPRESSED DOWN TO NINETY THREE CENTS.

AND THEN WE HAD THE TIER TWO THAT WAS ALSO COMPRESSED.

AND SO THE DOLLAR 17 WAS COMPRESSED JUST OVER 11 CENTS, DOWN TO ONE POINT ZERO SIX EIGHT THREE FIVE.

UNDER HOUSE BILL THREE IN FUTURE YEARS.

THE TIER TWO RATES STAY THE SAME UNLESS WE PASSED AN ADDITIONAL TRE AND WE HAVE ABOUT THREE POINT ONE SOMETHING PENNIES THAT WE COULD GO OUT FOR AN ADDITIONAL TO AN ADDITIONAL TRE TO INCREASE THAT TIER TWO RATE.

IT WOULD BE INCREASING THAT FIVE POINT EIGHT THREE FIVE RATE.

AND THEN, OF COURSE, TIER ONE IS WHERE HOUSE BILL THREE COMES INTO PLAY.

AND SO THE CONTINUATION OF HOUSE BILL THREE ANNUALLY IS, REMEMBER, ANY TIME LOCAL OR STATE VALUES INCREASE MORE THAN TWO AND A HALF PERCENT, THEN THE GREATER OF THOSE IS WHAT THE DISTRICT COMPRESSES.

AND SO, AGAIN, OUR COMPRESSED OUR GROWTH WAS ABOUT TWO POINT SEVENTY FIVE PERCENT.

AND SO THAT WAS GREATER THAN THE TWO AND A HALF.

BUT THE STATE'S PROJECTED GROWTH RATE WAS FOUR POINT ONE PERCENT.

AND SO WE GO OFF THE STATE'S COMPRESSION, THE FOUR POINT ONE.

AND THAT'S HOW TEA COMPUTED, WHICH THEY COMPUTED ALL DISTRICTS TIER ONE RATE FOR TWENTY, TWENTY, TWENTY, TWENTY ONE.

AND THAT'S HOW THAT NINETY THREE CENTS WAS COMPRESSED TO POINT NINE ONE SIX FOUR IN PLANO. SO AGAIN, THE STATE COMPRESSION WAS FOUR POINT ZERO ONE.

ANY GROWTH, WE WERE LOWER THAN THAT.

AND SO WE COMPRESSED AT THE STATEWIDE RATE, WHICH WAS MORE FAVORABLE FOR OUR TAXPAYERS THAN IF WE WOULD HAVE COMPRESSED AT OUR GROWTH RATE.

OK, SO AGAIN--.

FAVORABLE FOR THE TAXPAYERS, BUT ACTUALLY HARD ON THE SCHOOL DISTRICT? NO, IT ACTUALLY WORKS OUT TO BE NEUTRAL ON THE SCHOOL DISTRICT BECAUSE BECAUSE OF THE BASIC ALLOTMENT AND THE GUARANTEED YIELD FOR THE PENNIES, WE RECEIVE THE SAME AMOUNT OF MONEY, REGARDLESS OF WHAT OUR TAX RATE IS.

AND SO WE WOULD HAVE BEEN A DISTRICT THAT GREW SIGNIFICANTLY.

SO POINT NINE ONE SIX FOUR IS THE HIGHEST TIER ONE RATE THAT A DISTRICT CAN HAVE BECAUSE 93 CENTS IS WHAT EVERYONE WAS COMPRESSED TO LAST YEAR IN NINETY ONE POINT SIX FOUR IS THE MINIMUM COMPRESSION FOR THE COMING YEAR.

SO IF A DISTRICT GREW, LET'S SAY 12 PERCENT, THEN THEY MAY HAVE COMPRESSED DOWN TO EIGHTY TWO CENTS OR SOMETHING LIKE THAT.

SO WE STILL GET THE BENEFIT.

BUT EVEN THAT DISTRICT THAT COMPRESSES TO 82 CENTS OR EIGHTY THREE OR EIGHTY SEVEN, THEY STILL RECEIVE THE SAME AMOUNT OF TIER ONE FUNDING OR THE BASIC ALLOTMENT FUNDING.

AND SO THEY'RE NOT THEY'RE NOT PENALIZED FOR THAT.

ALSO, ONCE THE DISTRICT COMPRESSES, THEY NEVER HAVE TO GO BACK.

SO IT'S AN ANNUAL CALCULATION TO COMPRESS MORE AND YOU CAN'T COMPRESS MORE THAN 90 PERCENT BELOW THE STATEWIDE TIER ONE RATE.

AND SO SINCE THAT'S NINETY ONE POINT SIX FOUR NO DISTRICT, EVEN IF THEY GREW 25 PERCENT, THEY COULDN'T COMPRESS MORE THAN 90 PERCENT OF THAT POINT NINE ONE SIX FOUR RATE.

IT IS A BIG ADVANTAGE UNDER HOUSE BILL THREE THAT IF YOU HAVE A DISTRICT THAT DOES GROW BIG IN ONE YEAR, THAT COULD BE FROM OIL AND GAS VALUES, THAT COULD JUST BE GROWTH, THAT COULD BE NEW INDUSTRY COMING IN, WHATEVER THE CASE IS.

BUT IF YOU'RE IN A DISTRICT THAT REALLY BLOWS UP IN VALUES ONE YEAR, YOU RECEIVE THAT BIG COMPRESSION. ALL THE TAXPAYERS GET TO TAKE ADVANTAGE OF THAT AND IT NEVER GOES BACK UP.

SO JUST A QUICK REFRESHER ON HOW HOUSE BILL THREE WORKS.

SO WHEN WE LOOK AT OUR PROPERTY TAX RATES HISTORICALLY, I'M OBVIOUSLY NOT GOING TO READ ALL THESE OUT, BUT WE HAD FOUR YEARS THERE THAT OUR TAX RATE WAS THE SAME AT ONE POINT

[00:10:07]

SO WE WERE IN THE ONE POINT FOUR OR FIVE ONE FOUR FOUR ONE FOUR THREE OR ROUGHLY ONE POINT FOUR COMPRESS LAST YEAR TO ONE THREE, THREE SEVEN, AND NOW ON DOWN TO ONE POINT THREE TWO FOUR.

THE I&S RATE WAS THE SAME DURING ALL OF THOSE YEARS.

AND SO THE VERY THE VARIATIONS THERE ARE ALL IN THE NOMINAL RATE, BUT AGAIN, FAVORABLE FOR THE TAXPAYER BECAUSE THE OVERALL RATE IS DOWN.

WHEN WE LOOK AT TAXES ON THE AVERAGE RESIDENTS, WE DO SEE A DECLINE THERE, THAT'S TWO FOLD. ONE OF THOSE IS BECAUSE THAT ONE POINT THREE SIX CENT COMPRESSION ON THE M&O RATE, ALSO, OUR AVERAGE RESIDENTS, IF YOU'LL REMEMBER, BACK WHEN WE LOOKED AT THE TAX NOTICE, THE AVERAGE RESIDENCE IN PLANO HAD GONE DOWN A FEW THOUSAND DOLLARS.

AND SO THOSE TWO COMBINED IS WHAT IS DECREASED FOR THE UPCOMING YEAR.

THE TAXES ON THE AVERAGE RESIDENCE WITHIN PLANO ISD.

WHEN WE LOOK AT WHAT OTHER SCHOOL DISTRICTS HAVE DONE AS FAR AS TAX RATES FOR THE COMING YEAR, 2020-2021, THESE ARE THESE DISTRICTS ARE ALL IN COLLIN COUNTY.

AND SO THERE ARE MANY OF OUR COLLIN COUNTY PEERS THAT WE LOOK AT.

WE ARE THE THIRD LOWEST OUT OF THIS GROUP AT TOTAL TAX RATE, AGAIN, OF ONE POINT THREE TWO THREE SEVEN FIVE PROPOSED.

ONE OTHER THING I'D LIKE TO POINT OUT IS FRISCO, WHO WAS ROUGHLY THE SAME TAX RATE THAT WE WERE LAST YEAR.

YOU CAN SEE HOW THE CRIMINAL RATE IS LOWER.

WHY IS THAT? THEY HAD MORE GROWTH THAN WE HAD.

THEY GREW ABOUT SIX AND A HALF PERCENT.

THEY WERE ABOVE THE FOUR POINT 4.01, AND SO THEY COMPRESSED FURTHER.

AND SO THEIR TAXPAYERS GET THE BENEFIT OF THAT, THAT ADDITIONAL PROPERTY GROWTH AND THEY ALL PAY A LOWER TAX RATE.

SO THAT'S JUST AN EXAMPLE OF HOW IT WORKS UNDER HOUSE BILL THREE.

ANY QUESTIONS THERE? OK, AND THEN, OF COURSE, IN PLANO, WE LIKE TO LOOK AT THE STATE'S RECAPTURE TAX, AND SO FOR THE UPCOMING YEAR, WE ARE PROJECTING OUR RECAPTURE AT ABOUT ONE HUNDRED AND EIGHTY MILLION. OF COURSE, THIS IS GOING TO BE DEPENDENT ON ENROLLMENT, ATTENDANCE AND ALL THE DIFFERENT FACTORS THAT WE HAVE DURING THIS COVID YEAR OF 2020-2021, BUT OUR LOCAL REVENUE THAT WE'RE KEEPING AFTER RECAPTURES ABOUT FOUR HUNDRED AND TWENTY FIVE MILLION.

AND SO AGAIN, WE ARE DOWN FROM THE PRIOR YEAR.

THESE ARE NUMBERS THAT WE LOOKED AT BACK DURING THE BUDGET PROCESS.

SO, ON THAT, YOU KNOW, OBVIOUSLY THAT'S SIX MILLION DOLLARS LESS THAN WE WERE KEEPING LAST YEAR. THAT'S CORRECT.

AND THEN WE HAVE ENROLLMENT THAT'S ALSO DECLINED.

THAT'S CORRECT. A COUPLE MILLION FOR EVERY HUNDRED AND TWENTY TWO STUDENTS OR SOMETHING LIKE THAT. SO THAT'S OBVIOUSLY CAUSE FOR CONCERN IN THE COMING FUTURE.

YEAH. AND JUST A QUICK RECAP ON THAT.

SO FOR THE COMING YEAR, WE ARE DOWN ABOUT TWENTY ONE HUNDRED STUDENTS UNDER PROJECTION.

MANY OF THOSE ARE IN THE EARLY IN THE LOWER GRADE LEVELS.

WE DO HAVE A HOLD HARMLESS PROVISION, THE FIRST TWO SIX WEEKS.

AND SO TEA HAS PROJECTED BASED ON A TREND, OUR ADA, WHAT THEY THINK IT WOULD HAVE BEEN DURING NORMAL TIMES.

AND SO WE'VE GOT THAT FLOOR AS FAR AS A.D.A, IF WE COME IN HIGHER THAN THAT, THAT WE'RE FUNDED AT THE HIGHER A.D.A, BUT WE'VE GOT THAT FOR THE FIRST TWO, SIX WEEKS.

WE'RE HOPING THAT GETS EXTENDED AT LEAST THROUGH DECEMBER.

AND THEN THE LEGISLATURE WILL BE BACK IN SESSION IN JANUARY AND THEN THEY CAN REEVALUATE AT THAT TIME FOR MAYBE DISTRICTS THAT ARE STILL LOW.

IT'S NOT SOMETHING UNIQUE TO PLANO AT ALL.

AS WE LOOK AT OTHER URBAN DISTRICTS, ESPECIALLY, WE IT'S PRETTY COMMON THAT MOST ARE UNDER PROJECTION, ESPECIALLY IN THE LOWER GRADE LEVELS.

BUT, YES, I MEAN, WHEN YOU TAKE TWO THOUSAND STUDENTS, IF WE'RE BEING FUNDED ON ACTUAL, THAT'S ROUGHLY 20 MILLION DOLLARS THAT WE'RE LOSING IF WE DROP DOWN TO ACTUAL AND, YOU KNOW, UNFORTUNATELY, BY THE TIME WE REALIZE WHAT OUR ENROLLMENT'S GOING TO DO, WE HAD TO STAFF UP. WE HAVE STAFF UNDER CONTRACT AND WE HAVE OTHER ISSUES.

AND SO WE DEFINITELY NEED A HOLD HARMLESS PROVISION THERE.

THE LONGER WE CAN HAVE THAT HOLD HARMLESS, OF COURSE, THAT'S VERY BENEFICIAL TO SCHOOLS.

YOU KNOW, DON'T MAKE US FALL OFF A CLIFF WHILE WE'RE STILL TRYING TO LOCATE AND GET STUDENTS BACK ENROLLED.

SO, YOU KNOW, AT THE SAME TIME, OUR TAXPAYERS ARE STILL HAVING TO PAY THEIR TAXES.

AND SO IF IF IF WE DIDN'T HAVE THAT HOLD HARMLESS, IT WOULD SIGNIFICANTLY INCREASE OUR RECAPTURE BY THAT 20 MILLION DOLLARS I WAS TALKING ABOUT.

AND SO THE TAXPAYERS ARE STILL PAYING IT.

THE DISTRICT RECEIVES IT, BUT THE DISTRICT DOESN'T GET TO KEEP IT AND IT GOES TO THE STATE. SO THAT'S THE SCENARIO, IF WE DON'T HAVE THE HOLD HARMLESS.

OF COURSE, THE PROPERTY POOR DISTRICTS WOULD BE THE SAME.

[00:15:01]

SO EITHER WAY, THE STATE IS THE BENEFICIARY OF LOWER ENROLLMENT.

SO THE SCHOOL DISTRICT WOULD BE THE ONE THAT WOULD BE HEARD.

I HAVE A FEELING WE'RE GOING TO HEAR SOMETHING ON THE HOLD HARMLESS THIS WEEK.

OK, AND YOU'RE OBVIOUSLY STILL PART OF THE TEXAS COALITION OF SCHOOL BOARDS OR SUPERINTENDENTS? TEXAS SCHOOL ALLIANCE.

TEXAS SCHOOL ALLIANCE. AND SO AS TO THE DROP IN ATTENDANCE THAT RANDY WAS TALKING ABOUT, THE OTHER 40 LARGEST SCHOOL DISTRICTS THAT ARE PART OF THAT, EVERYBODY'S SEEN THIS? EVERYBODY, IT'S BEEN IN CONVERSATIONS WITH THE COMMISSIONER AND OTHERS.

SO WE'VE, VERY FULLY INFORMED THEM OF THE IMPACT THAT WE'RE ABOUT TO FACE.

SO LIKELY A TOP LEGISLATIVE PRIORITY GOING INTO JANUARY.

YEAH, PERFECT. THANK YOU.

GOING BACK TO THE PRIOR SLIDE, THE YOU KNOW, THE TREND YOU CAN SEE IS THAT THE AMOUNT OF MONEY THAT STAYS WITHIN THE DISTRICT HAS STAGNATED IN THE LAST FIVE YEARS, WHILE RECAPTURE HAS GROWN EXPONENTIALLY.

AND YOU SEE IT KIND OF LAST YEAR THERE WAS A HALT, SO TO SPEAK, IN THAT BECAUSE OF THE CHANGE IN HOUSE BILL THREE.

BUT IT LOOKS TO ME LIKE YOU'RE GOING TO STILL SEE THE EXACT SAME EXPONENTIAL GROWTH THAT WE'VE SEEN IN THE PAST.

AND SO THE NET EFFECT OF THAT IS THAT THE SCHOOL DISTRICT, OUR SPENDABLE DOLLARS HAS REMAINED A CONSTANT FOR FIVE YEARS WHILE OUR TAXPAYERS ARE PAYING MORE IN TAXES.

AND AS YOU HAVE POINTED OUT, THE BENEFICIARY OF THAT IS THE STATE, NOT OUR TAXPAYERS.

CORRECT. SO FOR THAT REASON, LIKE ONE OF THE THINGS WE HAVE ON OUR LEGISLATIVE AGENDA IS AN ASK OF THE STATE TO TO LIMIT THE AMOUNT THAT RECAPTURE CAN GROW YEAR OVER YEAR RELATIVE TO A SCHOOL DISTRICT.

AND SO WE'RE PAYING IN SO THAT WE DON'T SEE THIS TYPE OF EXPONENTIAL GROWTH GOING FORWARD. IT'S REALLY UNFAIR TO DO THAT TO THE TAXPAYERS OF PLANO ISD AND TO THE STUDENTS OF PLANO ISD.

AND SO I THINK IT'S SOMETHING I HOPE THAT OUR LEGISLATORS WILL ADDRESS.

AND DAVID, TO KIND OF PIGGYBACK OFF THAT, I THINK THAT'S THE ONE THING, ESPECIALLY PERCEPTION WISE, A LOT OF PEOPLE SAY, OH, MY DOLLARS GO TO THE SCHOOL AND WHAT AM I SEEING IN RETURN? AND SO MUCH IS NOT BEING RETURNED.

IT'S A VERY VALID ARGUMENT THAT THE STATE IS RETAINING MANY OF THE DOLLARS THAT PEOPLE EXPECT TO BE FLOWING BACK TO THE SCHOOLS AND BACK TO THE STUDENTS AND TO THE TEACHERS AND PERFORMING THAT VITAL FUNCTION OF SOCIETY AND EDUCATING OUR STUDENTS.

AND WE'RE NOT SEEING THOSE DOLLARS AND WE'RE JUST WATCHING IT GO UP LIKE YOU WERE SAYING.

SO I KNOW BEFORE I EVEN RAN, YOU KNOW, BEFORE I KNEW ANYTHING, EVERYBODY TALKS ABOUT RECAPTURE. AND HERE WE ARE A COUPLE OF YEARS LATER, WE'RE TALKING ABOUT IT AGAIN.

AND WE GOT A LITTLE BAND-AID THAT HAPPENED TWO YEARS AGO AND THAT WAS WOOHOO! BECAUSE EVERYTHING WAS EXPONENTIAL.

BUT HERE WE ARE AGAIN, JUST THAT QUICK.

AND, YOU KNOW, I THINK THIS BOARD HAS A LOT OF EXPERIENCE.

IN THIS CABINET, NOBODY HAS A SHORT MEMORY.

EVERYBODY KNOWS AND WE'RE WORKING TOWARDS IT.

BUT THE PROBLEM IS IT LOOKS LIKE THE STATE LEGISLATURE HAS A VERY SHORT MEMORY ON THIS.

AND IF THEY KEEP PUTTING THE BAND-AID ON, THERE'S BEEN ZERO PERMANENT FIX.

AND HOPEFULLY THIS YEAR, AS WE CONTINUE TO MAKE THAT ASK AN ADVOCATE, WE SEE THAT.

BUT A LOT OF PEOPLE THINK IT'S THE LOCAL SCHOOL BOARD THAT DETERMINES THIS, THAT IS SENDING MILLIONS OF DOLLARS BACK TO THE STATE.

AND THIS IS ABSOLUTELY A STATE LEGISLATURE ISSUE.

THAT DOESN'T MEAN THAT WE DON'T ADVOCATE, YOU KNOW, OUR RESPONSIBILITY TO GO TO THEM AND EDUCATE THEM AND PUSH FOR THESE CHANGES.

BUT IT'S VERY FRUSTRATING BECAUSE HERE WE ARE ASKING OUR SCHOOL DISTRICT, OUR OFFICIALS, SARA AND HER TEAM, TO DO MORE WITH LESS ALL THE TIME.

AND PEOPLE DON'T SEE IT THAT WAY BECAUSE THEY LOOK AT THEIR TAX BILL AND IT KEEPS GOING UP AND THEY'RE SAYING, WHAT'S GOING ON? AND IT'S IT'S AND PEOPLE AT THE CAPITOL ARE POINTING RIGHT BACK TO THE LOCAL DISTRICT SAYING LOCAL CONTROL, WELL, WE DON'T HAVE ALL THE CONTROL.

AND HOPEFULLY, LIKE YOU WERE SAYING, DAVID, THERE MIGHT BE SOME ELEMENTS OF CONTROL OR AT LEAST A MEASURE OF SLOWING THE EXPONENTIAL GROWTH THAT SEEMS TO BE GOING BACK TO THE STATE. AND CERTAINLY 29 PERCENT OF A DOLLAR HERE IN PLANO GOES TO THE STATE LOOKING AT THOSE NUMBERS. AND THE INCREASE FROM LAST YEAR TO THIS YEAR IS ALMOST 10 PERCENT WHEN WE STRUGGLE TO TRY TO GIVE OUR TEACHERS A ONE TO THREE PERCENT PAY RAISE EVERY YEAR.

RIGHT. AND SO I WISH I COULD CHANGE THE RECORD ON THE JUKEBOX, BUT I CAN'T BECAUSE WE'VE BEEN SAYING THIS YEAR AFTER YEAR.

BUT WHAT I DON'T KNOW, OUR PUBLIC REALIZES IS WHAT PERCENTAGE OF OUR BUDGET IS STAFF RELATED AND MOST OF THOSE STAFF ARE PAID THROUGH CONTRACTS.

SO WE HAVE A COMMITMENT TO STAFF.

[00:20:02]

AND OUR STAFF ENDS UP WITH HIGHER INSURANCE PREMIUMS AND WE'RE NOT ABLE TO REALLY HELP THEM WITH THAT. SO IT'S A DOUBLE EDGED SWORD.

AND THE RECAPTURE GROWTH OVER YEARS HAS HAS NOT BEEN FAIR TO OUR TAXPAYERS.

AND WE HAD A CAMPAIGN, WE STARTED A CAMPAIGN, WHAT WAS IT, FOUR YEARS AGO CALLED TAXPARENCY, REMEMBER THAT? SO WE NEED TO PROBABLY BRING THAT BACK UP AND REMIND PEOPLE BECAUSE THE RECORD ON THE JUKEBOX HASN'T CHANGED.

WELL, AND JUST TO DRIVE IN THE NAIL, A LITTLE HARDER AT THE AVERAGE THAT WE SPEND, THE AVERAGE TAXPAYER SPENDS, WHICH IS THE FOUR THOUSAND EIGHT HUNDRED FIVE THAT RANDY MENTIONED EARLIER, IT'S ONE THOUSAND FOUR HUNDRED TWENTY NINE DOLLARS, ALMOST THIRTY DOLLARS THAT'S GOING BACK TO THE STATE.

AND SO THAT'S WHAT NANCY'S REFERRING TO, IS THAT TAX TRANSPARENCY WOULD BE ABLE TO SHOW ON PEOPLE'S TAX BILLS THE EXACT NUMBER THAT STAYING AT HOME AND THE EXACT NUMBER THAT'S GOING. AND IT IS A VALID POINT THAT WE NEED TO MAKE SURE PEOPLE ARE AWARE OF.

WELL, AND TO YOUR POINT, JERI, IT TAKES A LEGISLATIVE ACT TO GET THAT LISTED ON THE TAXPAYER'S STATEMENT.

AND WE'VE ASKED FOR THAT IN THE PAST.

I THINK WE NEED TO GO BACK FOR THAT SO THAT OUR TAXPAYERS KNOW WHAT WHAT THEY'RE PAYING AND WHAT THE HISTORY HAS BEEN.

AND I ACTUALLY HAVE BEEN FOR THREE YEARS, I ACTUALLY WANT TO ELIMINATE RECAPTURE BECAUSE I BELIEVE THAT SCHOOL DISTRICTS SHOULD HAVE THEIR FUNDS STAY IN THE LOCAL SCHOOL DISTRICTS.

SO I KNOW THAT, YOU KNOW, A LOT OF SCHOOL DISTRICTS ARE ASKING TO CAP IT, BUT I WOULD LIKE TO ACTUALLY ELIMINATE RECAPTURE.

WE CAN ADVOCATE FOR THAT.

AND SO WE'VE GOT ANOTHER GRAPH HERE THAT BASICALLY IS THE SAME STORY, JUST A LITTLE DIFFERENT VISUAL, BUT WE CAN SEE HOW THE RED KEPT GETTING GREATER AND DEEPER UP THROUGH HOUSE BILL THREE, IT WAS BOUGHT DOWN AND COMPRESSED.

AND NOW WE'RE GOING TO SEE THAT START TO INCREASE SLOWLY OVER TIME.

THE I THINK THE PROGRESSION OF THAT IS GOING TO SLOW SLIGHTLY OR SOMEWHAT JUST BECAUSE OF THE TAX RATE COMPRESSION COMPONENT.

BUT WE ARE GOING TO CONTINUE TO SEE THAT RECAPTURE JUST GROW AS LONG AS OUR VALUES ARE GOING UP. AND SO THIS IS REALLY IT, AGAIN, LOOKING A DIFFERENT WAY, AND SO WE TALK ABOUT WHAT PERCENT OR HOW MANY CENTS OF THE TOTAL TAX RATE IS GOING FOR RECAPTURE.

AND SO THE PROJECTED NUMBER FOR THIS COMING YEAR IS ABOUT THIRTY ONE POINT FOUR CENTS AND ABOUT SEVENTY FOUR POINT ONE STAYING HERE AT HOME.

SO AS WE KNOW AND WE BUILD ON LEGISLATIVE SESSION AFTER LEGISLATIVE SESSION, WE COME UP WITH DIFFERENT RULES, ESPECIALLY AS THEY RELATE TO TAX RATES.

BUT NOW WE HAVE THREE DIFFERENT TAX RATES THAT WE HAVE TO LOOK AT.

SOME OF THESE ARE DIFFERENT.

SO THIS FIRST ONE, THIS NO NEW REVENUE TAX RATE IS A NEW ONE.

AND THAT'S THE RATE NECESSARY TO PRODUCE THE SAME AMOUNT OF TAXES AS LAST YEAR'S RATE FROM PROPERTIES ON TAX ROLL IN BOTH YEARS, EXCLUDING THE NEW IMPROVEMENTS AND THE PAYMENT ON BONDS. AND SO IF WE DIDN'T HAVE NEW IMPROVEMENTS OR THE PAYMENT ON BONDS, THEN OUR NO NEW REVENUE RATE WOULD BE A DOLLAR THIRTY SIX FIVE ONE FOUR.

LET ME PUT A DISCLAIMER.

WE DON'T GET TO DETERMINE HOW THESE ARE CALCULATED, NOR DO THEY ALWAYS MAKE SENSE TO US.

BUT WE HAVE TO FOLLOW THE FORMULA ON ON HOW IT WAS WRITTEN INTO LAW OF HOW THESE ARE CALCULATED. SO A LOT OF TIMES WE BACK UP AND WE TRY TO EXPLAIN THEM WHEN WE CAN'T REALLY EXPLAIN THEM. BUT IT'S THE CALCULATION THAT THEY CAME UP WITH.

WE STILL HAVE THE OLD TAX RATE NECESSARY TO MAINTAIN THE SAME LEVEL OF MAINTENANCE OPERATIONS, REVENUE PER PUPIL AND PAY DEBT SERVICE.

THIS IS A VERY FORMULA DRIVEN CALCULATION.

THAT'S ONE POINT ONE SEVEN THREE 07.

AGAIN, THAT DOESN'T EVEN MAKE ANY SENSE, BUT THAT'S WHAT THE FORMULA KICKS OUT.

AND SO THEN WE HAVE OUR VOTER APPROVED TAX RATE, WHICH IS THE MAXIMUM TAX RATE WE CAN GO TO WITHOUT VOTER APPROVAL.

SO IT WOULD EITHER REQUIRE A TRE IF IT WAS THE M&O SIDE OR IT WOULD REQUIRE A BOND ELECTION IF IT WAS ON THE M&O SIDE.

BUT OUR VOTER APPROVED TAX RATE IS THE ONE POINT THREE, TWO THREE SEVEN FIVE, WHICH IS THE SAME AS OUR PROPOSED RATE THAT WE TALKED ABOUT EARLIER, THE ONE POINT ZERO FIVE FOUR SEVEN FIVE AND I&S OF TWENTY SIX POINT NINE.

SO THAT'S WHAT MAKES UP THOSE PROPOSED RATES THAT WE LOOKED.

AND THAT IS ALL THAT WE PREPARED AS FAR AS THE PROPOSED TAX RATE.

THERE IS A RESOLUTION THAT I THINK WE'RE GOING TO READ, IS THAT RIGHT, PRESIDENT RICHARDS? AND AGAIN, THERE WAS A LITTLE BIT OF NEW LANGUAGE ADDED INTO IT THIS YEAR AS FAR AS THE NO NEW REVENUE RATE, I BELIEVE THE REST OF IT IS STILL THE SAME AS LAST YEAR.

[00:25:01]

PLANO INDEPENDENT SCHOOL DISTRICT RESOLUTION ADOPTED 2020-21 TAX RATE.

WHEREAS WHEREAS ON SEPTEMBER 29, 2020, THE BOARD OF TRUSTEES OF THE PLANO INDEPENDENT SCHOOL DISTRICT MET IN OPEN SESSION TO HOLD A PUBLIC MEETING TO DISCUSS THE BUDGET AND PROPOSED TAX RATE FOR THE YEAR 2020 TO 2021, AFTER WHICH THE BUDGET WAS ADOPTED AND WHEREAS THE TAX RATE FOR THE YEAR 2020, IS REQUIRED BY THE PROVISIONS OF SECTION TWENTY SIX ZERO FIVE OF THE PROPERTY TAX CODE.

AND WHEREAS THE TOTAL TAX RATE CONSISTS OF TWO SEPARATE RATES, A DEBT SERVICE RATE AND A MAINTENANCE AND OPERATIONS RATE, AND WHEREAS THIS YEAR'S PROPOSED TAX RATE DOES NOT EXCEED THE NO NEW REVENUE TAX RATE, AND WHEREAS THE DISTRICT IS NEVERTHELESS REQUIRED BY SECTION TWENTY SIX ZERO FIVE OF THE PROPERTY TAX CODE, TO STATE THAT THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE, AND THE TAX RATE WILL EFFECTIVELY BE LOWERED BY ONE POINT TWO SEVEN PERCENT AND WILL REDUCE TAXES FOR MAINTENANCE AND OPERATIONS ON ONE HUNDRED THOUSAND HOME BY APPROXIMATELY TEN DOLLARS.

NOW IT IS HEREBY RESOLVED BY THE TRUSTEE OF THE PLANO INDEPENDENT SCHOOL DISTRICT THAT THE TAX RATE FOR THE YEAR 2020-21 BE SET AT ONE DOLLAR THREE TWO THREE SEVEN FIVE FOUR PER HUNDRED VALUATION ONE DOLLAR ZERO FIVE FOUR SEVEN FIVE DESIGNATED TO MAINTENANCE AND OPERATIONS AND ZERO POINT TWO SIX NINE DOLLARS DESIGNATED TO DEBT SERVICE BEING LESS THAN THE PREVIOUS YEAR'S ACTUAL RATE.

AND FURTHER THAT TAXES ARE HEREBY LEVIED ON ALL PROPERTIES NOW AND HEREAFTER [INAUDIBLE] OF SAID DISTRICT FOR THE YEAR 2020 TO 2021.

ADOPTED THIS TWENTY NINTH DAY OF SEPTEMBER TWENTY TWENTY BY THE BOARD OF TRUSTEES OF THE PLANO INDEPENDENT SCHOOL DISTRICT.

THANK YOU, DR.

WANG. MAY I HAVE A MOTION? I MOVE THAT THE BOARD OF TRUSTEES APPROVES THE RESOLUTION ADOPTING THE 2020 2021 TAX RATE AS PRESENTED. SECOND.

I HAVE A MOTION BY ANGELA POWELL, A SECOND BY CODY WEAVER THAT THE BOARD OF TRUSTEES ADOPTS THE RESOLUTION ADOPTING THE 2020 2021 TAX RATE AS PRESENTED.

IS THERE ANY FURTHER DISCUSSION? WE WILL NOW PROCEED TO VOTE.

ALL THOSE IN FAVOR RAISE YOUR HAND.

MOTION CARRIES UNANIMOUSLY SEVEN TO ZERO, THANK YOU.

[3B. Approval of a Waiver to Extend the Due Date of the Fiscal Year 2019 - 2020 Annual Financial Report Presenter: Randy McDowell, Chief Financial Officer ]

MR. MCDOWELL. THANK YOU, PRESIDENT RICHARDS.

SO THE BOARD IS AWARE THAT THERE'S MANY WAIVERS OUT THERE THIS YEAR FROM TEA UNDER VARIOUS ITEMS. ONE OF THOSE RELATES TO THE FILING OF THE ANNUAL FINANCIAL REPORT WITH THE TEXAS EDUCATION AGENCY.

SO FOR DISTRICTS THAT ARE JULY 1 FISCAL YEARS, OF COURSE, YOU KNOW, WE HAVE DISTRICTS THAT ARE JULY 1 FISCAL YEARS LIKE PLANO OR OTHER DISTRICTS THAT RUN TWO MONTHS LATER, THAT ARE SEPTEMBER 1 FISCAL YEARS.

IF YOU'RE A JULY 1 FISCAL YEAR, YOUR AUDIT HAS TO BE FILED TYPICALLY TO TEA THE END OF NOVEMBER. AND IF YOU'RE A SEPTEMBER ONE, THEY HAVE TO BE FILED BY TYPICALLY AROUND JANUARY 28 THIS YEAR.

THE WAIVER ALLOWS TO ALLOW ONE SCHOOL DISTRICTS, IF THEIR BOARD APPROVED TO HAVE THE FOLLOWING UP TO THE END OF JANUARY, LIKE THE SAME AS THE SEPTEMBER ONE FISCAL YEAR DISTRICTS. INITIALLY, WE WEREN'T GOING TO FILE FOR THIS BECAUSE WE THOUGHT EVERYTHING WAS STILL GOING GOOD.

THERE IS STILL SOME DATA THAT WE'RE WAITING ON.

AND SO WE DECIDED JUST AS A SAFETY NET, WE WOULD GO AHEAD AND BRING THIS TO YOU FOR YOUR CONSIDERATION. WE MAY STILL BE ABLE TO FOLLOW IN NOVEMBER, EVEN DECEMBER, BUT AT LEAST THAT GIVES US TIME THAT IF WE DO RUN INTO ANY ISSUES, YOU KNOW, WITH A LOT OF THESE LIKE HOLD HARMLESS THINGS THAT HAVE BEEN CALCULATED EVEN FOR NINETEEN TWENTY, IT'S DELAYED DATA COMING OUT OF THE TEXAS EDUCATION AGENCY LIKE SUMMARY OF FINANCE.

[00:30:04]

AND SO OUR REQUEST TO YOU ALL WOULD BE TO APPROVE THE WAIVER TO ALLOW US THE SAME DEADLINE AS THE SEPTEMBER ONE DISTRICTS.

ARE THERE ANY QUESTIONS? MAY I HAVE A MOTION? I MOVE THAT THE BOARD OF TRUSTEES APPROVES THE SUBMISSION OF A WAIVER TO EXTEND THE DUE DATE OF THE FISCAL YEAR 2019 2020 ANNUAL FINANCIAL REPORT TO JANUARY 28, 2021.

I SECOND. I HAVE A MOTION BY JERI CHAMBERS, A SECOND BY NANCY HUMPHREY, THAT THE BOARD OF TRUSTEES APPROVES THE SUBMISSION OF A WAIVER TO EXTEND THE DUE DATE OF THE FISCAL YEAR 2019 2020 ANNUAL FINANCIAL REPORT TO JANUARY 28, 2021.

IS THERE ANY FURTHER DISCUSSION? WE WILL NOW PROCEED TO VOTE.

ALL THOSE IN FAVOR RAISE YOUR HAND.

MOTION CARRIES UNANIMOUSLY SEVEN TO ZERO, THANK YOU.

[4. CLOSED SESSION ]

NO FURTHER ACTION WILL BE TAKEN THIS EVENING.

THEREFORE, AFTER WE RECONVENE OPEN SESSION, THE ONLY REMAINING ITEM WILL BE TO ADJOURN THE MEETING. AT THIS TIME, I ASK EVERYONE EXCEPT BOARD MEMBERS TO EXIT THE BOARD ROOM.

THE TIME IS SIX THIRTY TWO P.M.

ON TUESDAY, SEPTEMBER 29TH.

TWENTY TWENTY. THANK YOU.

[5. RECONVENE OPEN SESSION]

IF THERE ARE NO FURTHER BUSINESS NOR ANY OBJECTIONS FROM THE BOARD, THE MEETING WILL BE ADJOURNED. THE TIME IS 7:06 P.M..

THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.