[1. Call to order]
[00:00:07]
AND THIS MEETING IS HEREBY CALLED TO ORDER. WE HAVE THE PRESENCE OF A CORM ATTENDING BOTH IN PERSON AND ON A VIDEO CONFERENCE NOTICE OF THIS MEETING HAS BEEN POSTED ONLINE AND AT THE FORTMAN DYNASTY ADMINISTRATION BUILDING FOR AT LEAST 72 HOURS. HMM. I WILL TURN IT OVER TO THE SUPERINTENDENT FOR OPENING COMMENTS. YES THIS IS A REQUIREMENT EACH YEAR AND REALLY IT IS BRAIN GWYNNE THAT WILL INTRODUCE OUR GUESTS AND BEGIN THE PROCESS. ALL RIGHT.
[2. 2022-23 Proposed Tax Rate]
THANK YOU, DOCTOR WHITBECK. GOOD EVENING, MADAM PRESIDENT AND MEMBERS OF THE BOARD PRIOR TO ADOPTING THE TAX RATES. STATE STATUTE REQUIRES THAT THE DISTRICT CONDUCT A PUBLIC HEARING ON THE TAX RATE. AN ADVERTISEMENT ANNOUNCING THE HEARING MUST BE PUBLISHED IN A LOCAL NEWSPAPER AT LEAST 10 DAYS PRIOR TO THE HEARING, AND THE NOTICE MUST BE PLACED ON THE DISTRICT'S WEBSITE. THE DISTRICT HAS COMPLIED WITH THE PROVISIONS AND IS CONDUCTING THE PUBLIC HEARING THIS EVENING. ON JUNE 20TH. THE BOARD OF TRUSTEES ADOPTED A GENERAL FUND BUDGET OF $768 MILLION AND A DEBT SERVICE BUDGET OF 126 MILLION. AH! BOTH BUDGETS ARE SUPPORTED BY THE TAX RATE AND THE GENERAL FUND BUDGET , AS ADOPTED, HAS A DEFICIT OF $46.8 MILLION WITHOUT THE USE OF ESTAR FUNDING. THE DISTRICT RECEIVED THE CERTIFIED PROPERTY VALUES FROM THE FORT BEND CENTRAL APPRAISAL DISTRICT ON JULY 25TH AND THE CALCULATIONS FOR THE MINIMUM COMPRESSED RATE WERE SUBMITTED AND APPROVED BY T . E. A. ON AUGUST THE FIRST ON AUGUST THE FOURTH. THE REQUIRED NOTICE WAS PUBLISHED IN THE LOCAL PAPERS AND POSTED ON THE DISTRICT'S WEBSITE FOR THE PUBLIC HEARING THIS EVENING. THE TAX RATE ADVERTISED FOR THE PUBLIC HEARING TOTALS. $1 26.46 CENTS. HOWEVER THE BOARD CAN ADOPT A TAX RATE LOWER THAN THIS AND STAFF IS RECOMMENDING THAT THE TAX RATE REMAIN AT THE CURRENT RATE OF A DOLLAR. 21 OH ONE, WHICH IS LESS THAN THE PUBLISHED RATE. THE VALUES RECEIVED FROM THE FORT BEND CENTRAL APPRAISAL DISTRICT GREW 15% OVER THE PRIOR YEAR AND ARE ONE OF THE HIGHEST RATES OF GROWTH EXPERIENCED IN RECENT YEARS. THIS GROWTH HAS RESULTED IN COMPRESSION OF THE MAINTENANCE AND OPERATIONS TAX RATE, AND I'LL DISCUSS THAT IN A FEW MINUTES. OVERALL PROPERTY VALUE IN THE DISTRICT TOTALS $54.1 BILLION, AND THAT IS AN INCREASE OF OVER $7 BILLION FROM THE PRIOR YEAR. I INDICATED EARLIER THAT THE DISTRICT IS FACING A DEFICIT OF ALMOST $47 MILLION AND TO OFFSET THAT DEFICIT STAFF IS RECOMMENDING A VOTER APPROVAL TAX RATE ELECTION. THE DISTRICT HAS 11 PENNIES THAT IT CAN TAKE VIA THE ELECTION, AND THAT WOULD GENERATE $62.6 MILLION. HOWEVER, STAFF IS NOT RECOMMENDING THAT ALL PENNY 11 PENNIES BE ADOPTED. THE CURRENT TAX RATE OF A DOLLAR . 21 OH, ONE CONSISTS OF THE MAINTENANCE AND OPERATIONS COMPONENT, WHICH IS 92.1 CENTS AND AN INCOME AND SINKING RATE, WHICH IS 29. CENTS DUE TO COMPRESSION. THE O AND M RATE FOR THE UPCOMING TAX SHARE HAS COMPRESSED TO 86.46 CENTS, WHICH IS 5.555 CENTS LESS THAN THE CURRENT RATE. AND ANY O AND M TAX RATE THAT IS ADOPTED ABOVE 86.46 CENTS WILL TRIGGER A VOTER APPROVAL TAX RATE ELECTION. STAFF IS RECOMMENDING THAT THE MM NO RATE BE ADOPTED AT 94.1 CENTS, WHICH IS A 7.55 CENT INCREASE FROM THE CURRENT RATE. HOWEVER A RATE OF 27 CENTS AS RECOMMENDED FOR THE INS RATE, WHICH IS TWO CENTS LOWER THAN THE CURRENT RATE. THIS RESULTS IN A TAX RATE THAT IS 5.55 CENTS HIGHER THAN THE NO VOTER APPROVED TAX RATE. OF A DOLLAR 15.46. AND THAT'S THE DOLLAR IN 21. OH ONE CENT TAX RATE THAT WE CURRENTLY HAVE. BASED ON OUR CURRENT TAX RATE OF A DOLLAR, 21 OH ONE, THE AVERAGE TAX BILL WILL INCREASE BY $208 ANNUALLY OR ABOUT $17 A MONTH. THIS BILL IS BASED ON THE AVERAGE HOME VALUATION IN THE DISTRICT OF 293,793, AND THAT INCLUDES THE $40,000 HOMESTEAD EXEMPTION THAT WAS APPROVED STATEWIDE IN MAY.AND I DO WANT TO POINT OUT THAT ARE PROPOSED RATE OF A DOLLAR. 21 OH, ONE IS ALMOST 11 CENTS LOWER THAN OUR 2019 TAX RATE OF A DOLLAR AND 32 CENTS. THE PROPOSED OWEN M RATE OF 94.1 CENTS GENERATES ABOUT $47 MILLION IN NEW RECURRING REVENUE AND AS AN INCREASE OF 7.55 CENTS OVER THE NO VOTER OR THE NO NEW REVENUE RATE, AND THIS WILL TRIGGER IF IT IS APPROVED. THE
[00:05:03]
ADDITIONAL FUNDS GENERATED WILL BE USED FOR ADDITIONAL INVESTMENTS AND SAFETY AND SECURITY AND TO MAINTAIN COMPETITIVE SALARIES FOR TEACHERS AND STAFF. AT THE BOARD MEETING LATER THIS EVENING STAFF WILL PROVIDE A COMPREHENSIVE UPDATE ON THE VAT, REPROCESS AND RECOMMENDATIONS. AND THEN ON AUGUST 22ND, THE BOARD WILL ADOPT THE TAX RATE AND AGAIN, THE MAXIMUM RATE THAT COULD BE ADOPTED IS A DOLLAR A LITTLE OVER A DOLLAR 24. HOWEVER, THE RATE BEING RECOMMENDED BY STAFF AS A DOLLAR IN 21, OH ONE CENTS, WHICH IS THE SAME AS THE CURRENT TAX RATE THAT IS IN PLACE. AND THIS MEETING CAN NOW BE OPEN FOR PUBLIC COMMENT ON THE TAX RATE, MADAM PRESIDENT ALTERNATE BACK OVER TO YOU TO CONDUCT THE PUBLIC HEARING OUR ADDRESS ANY BOARD QUESTIONS THAT THERE MAY BE THANK YOU, MR BRENT. MR GWYN FOR YOUR ASSISTANT PRESENTATION.OR DO WE HAVE ANY QUESTIONS? KRISTEN. OKAY MR HAMBLETON? YES THANK YOU. THANK YOU, MR GWYN.
UM SO JUST WANTED TO THROW IT AND WE WE'VE WE'VE DISCUSSED THIS SEVERAL TIMES ALREADY. BUT UM, SO JUST WANTED TO JUST I'M JUST THINKING THROUGH IT'S KIND OF A WEIRD POSITION TO BE IN BECAUSE WE HAVE NO IDEA WHAT THE LEGISLATURE IS GOING TO DO. WITH THE FUNDING GOING FORWARD, SO I JUST WANTED TO ASK, UH, I ASSUME YOU GUYS ARE KEEPING UP WITH PUBLIC COMMENTS AND IN ANYTHING YOU WOULD LIKE TO ADD FROM WHAT YOU EXPECT MIGHT HAPPEN. I KNOW. I KNOW WE CAN'T WE CAN'T COUNT ON THAT TOO STRONGLY. BUT RIGHT AND I BELIEVE WHAT YOU'RE REFERENCING IS GOING TO BE AN INCREASE POTENTIALLY TO THE BASIC ALLOTMENT IN THE UPCOMING LEGISLATIVE SESSION. YES SIR.
YES SIR. AT THIS POINT, WE DO NOT HAVE ANYTHING INCLUDED IN THE BUDGET, ASSUMING AN INCREASE TO THE BASIC ALLOTMENT. HOWEVER HISTORICALLY, THE LEGISLATURE HAS ACTED TO INCREASE THAT ALLOTMENT. WE'VE LOOKED AT WHAT A 3% INCREASE TO THE BASIC ALLOTMENT CAN DO, AND THAT WILL GENERATE AN ADDITIONAL I BELIEVE ABOUT 10 TO $12 MILLION IN REVENUE, SO WE WOULD STILL HAVE ADJUSTMENTS THAT WE WOULD NEED TO MAKE, AND WE WOULD STILL NEED ADDITIONAL REVENUE IN ORDER TO MAINTAIN A BALANCED BUDGET. OR AND WHEN I SAY A BALANCED BUDGET THAT IS ONE THAT MEETS OUR 90 DAY OPERATING RESERVE REQUIREMENT, AND SO AS YOU MENTIONED ANYTHING THAT THE LEGISLATURE DOES AT THIS POINT WOULD BE SPECULATIVE AND SO TO BE CONSERVATIVE IN OUR APPROACH . WE HAVE NOT INCLUDED THAT ASSUMPTION IN ALTHOUGH THERE IS SOME LIKELIHOOD THAT THEY COULD DO THAT IN THE UPCOMING SESSION. AND JUST TO ADD TO WHAT BRIAN WAS SAYING, IF THERE IS A INCREASE IN THE BASIC ALLOTMENT, A GOOD PORTION OF THAT I'M GONNA ESTIMATING 50% OF IT WOULD BE A MANDATED SALARY INCREASE, WHICH ALSO WOULDN'T I MEAN, IT WOULD CERTAINLY BE GREAT, YOU KNOW, FOR THOSE GETTING THOSE INCREASES BUT ONE DO ANYTHING TO HELP WITH OUR COMPETITIVENESS, AND IT ALSO WOULDN'T HELP CLOSE OUR DEFICIT. RIGHT. THANK YOU. THANK YOU, MR HAMBLETON. I DON'T SEE HER. MISS WILLIAMS. I DON'T SEE YOU, BUT I WANTED TO MAKE SURE IF YOU HAVE ANY QUESTIONS OR COMMENTS. OKAY OKAY. THANK YOU. FOR THAT. I DO HAVE ONE QUESTION AND THAT'S ON PAGE FOUR, WHERE YOU INDICATED THERE IS A $7.1 BILLION INCREASE IN THE. TAX BASE. CAN YOU TELL US AND SHARE WITH US WHAT THE OVERALL NET GAIN IS TO FORT BEND DST. SO ON THE GENERAL FUND, O AND M TAX RATE, THERE IS NO GAIN AND NEW REVENUE FROM THAT INCREASE, AND THAT IS BECAUSE OUR REVENUE IS BASED ON ATTENDANCE AND STUDENT ENROLLMENT, AND THE STATE FORMULAS ESTABLISHED THE TOTAL AMOUNT OF REVENUE THAT THE DISTRICT CAN GENERATE AND RECEIVE AND REGARDLESS OF HOW MUCH THE PROPERTY VALUE GROWS, OUR REVENUE DOES NOT INCREASE.
AND SO WHEN OUR PROPERTY VALUES INCREASE, THE EFFECT OF THAT IS THAT IT SHIFTS THE BURDEN. FROM THE STATE BACK TO LOCAL TAXPAYERS. AND SO IN SHORT, BASED ON THIS GROWTH OF 15% ALTHOUGH IT IS MUCH HIGHER THAN NORMAL, THE DISTRICT IS NOT BENEFITING IN THE GENERAL FIRM FROM THAT GROWTH. ON THE OTHER HAND ON OUR DEBT SERVICE SIDE, WE DO BENEFIT FOR UP TO 10% OF THAT GROWTH. THE STATE CAPS THE MAXIMUM AMOUNT OF GROWTH THAT CAN OCCUR ON THE INSIDE AT 10% AND SO PART OF THE REASON THAT YOU'LL HEAR LATER THIS EVENING THAT WE'RE NOT NEEDING TO INCREASE THE TAX RATE ON THE DEBT SERVICE SIDE, EVEN THOUGH WE ARE CONSIDERING A BOND ELECTION IS BECAUSE OF THAT ADDITIONAL GROWTH AND AS A MATTER OF FACT THAT ADDITIONAL GROWTH IS ALSO HELPING US LOWER THE TAX RATE ON THE INSIDE, SO IN SHORT, IT IS BENEFITING US ON
[00:10:01]
OUR DEBT SERVICE SIDE. THERE IS NO BENEFIT TO US ON OUR O AND M SIDE ARE THE GENERAL FUND SIDE.OKAY THANK YOU. MR GWEN. I THINK THAT'S SUPER IMPORTANT FOR THE PUBLIC. TO BE AWARE OF. THE LAST THING IS ON THE TWO GOLDEN PENNIES IN NINE COPPER PENNIES UNDERNEATH THE NINE COVER PENNIES. IT MENTIONS THAT EACH PENNY IS SUBJECT TO RECAPTURE. SO CAN YOU JUST CONFIRM OR CLARIFIED TO US WHAT THAT MEANS IN REGARDS TO, UM HOW THIS VADER WOULD AFFECT THE WE KNOW THE GOLDEN BUT MORE SO THE COPPER PENNIES AND WHETHER WE WOULD OR WOULD NOT BE SUBJECT TO RECAPTURE RIGHT AND THAT IS AN IMPORTANT POINT TO CONSIDER. SO THE GOLDEN PENNIES AS YOU JUST MENTIONED ARE NOT SUBJECT TO RECAPTURE ON OUR COPPER PENNIES . EACH ONE IS SUBJECT TO I BELIEVE ABOUT $350,000 OF RECAPTURE AND WHAT THAT MEANS IS THAT WE WOULD BE ESSENTIALLY PAYING THE STATE A SMALL PORTION OF THAT REVENUE GENERATED BACK AND SO THE 62.6 MILLION AND THE $47 MILLION THAT I INDICATED THAT WE WOULD GENERATE EITHER THROUGH THE FULL 11 CENTS, OR 7.5. CENTS IS NET OF THAT NUMBER. AND SO AGAIN, THERE'S A SMALL PORTION OF THAT ABOUT 350,000 PER PENNY. THAT WE WOULD BE ESSENTIALLY PROVIDING BACK TO THE STATE TO ENSURE THAT THE TOTAL WEALTH PER STUDENT IF YOU WILL THAT'S REQUIRED IN STATE STATUE HAS MET. THANK YOU, MR GWEN. SEEING THERE ARE NO MORE COMMENTS. WE'RE GOING TO MOVE ON TO PUBLIC COMMENTS. OH, MISS DAY. THANK YOU, MADAM PRESIDENT , SO I JUST WANT TO FOLLOW UP WITH MISS MALONE'S QUESTIONS ACTUALLY TO CLARIFY, UM, I THINK BECAUSE THE PROPERTY VALUE UM INCREASE WILL HELP THE DEBT SERVICES RIGHT? IS THAT THE REASON WHY WE'RE ABLE TO REDUCE THE TWO CENTS FOR THE INCUMBENT THINKING? I JUST WANT TO YES, MA'AM. THAT IS CORRECT THE ADDITIONAL INCREASE THAT WE SAW THIS YEAR IS HELPING US TO REDUCE THE DEBT RATE AND RETIRE DEBT SOONER THAN WHAT WE HAD ORIGINALLY PLANNED. YES, MA'AM. THANK YOU. AND ANOTHER THING IS ALSO FOLLOW MR MALONE'S QUESTION FOR GOLDEN PENNY AND THE COPPER PENNY. I THINK EVERY DISTRICT THE VALUE FOR EACH GOLDEN PENNY OR COPPER PENNY. THE VALUE IS DIFFERENT. IT DEPENDS ON EACH DISTRICT. IS THAT CORRECT OR IT'S NOT ACROSS THE BOARD, RIGHT? BASED ON LOCAL CONDITIONS SO YES, MA'AM. IT CAN VARY PER DISTRICT. THAT IS CORRECT, AND THAT'S PART OF THE CHANGE THAT HAPPENED WITH 86 LEGISLATIVE SESSION AND THE REDEFINITION OF GOLDEN PENNIES AND COPPER PENNIES. OKAY, THANK YOU. THANK YOU. THANK YOU. OKAY THIS TIME, SAYING THERE ARE NO OTHER COMMENTS. WE'RE GOING TO MOVE FORWARD WITH THE PUBLIC COMMENTS. THE FOLLOWING PROCEDURES WILL APPLY TO TONIGHT'S AUDIENCE COMMENTS. THE BOARD ENCOURAGES AND WELCOMES COMMENTS AND INPUT FROM OUR PATRONS. PLEASE LIMIT YOUR COMMENTS TO THREE MINUTES AND PLEASE REFRAIN REFRAIN FROM MENTIONING A STUDENT OR EMPLOYEE'S NAME WHEN VOICING A CONCERN OR COMPLAINT AS BOARD POLICY PROVIDES ALTERNATIVE PROCEDURES THROUGH THE GRIEVANCE PROCESS POLICIES. GF LOCAL OR D G B, A LOCAL TO SEEK RESOLUTION TO COMPLAINTS. ONCE THE SPEAKER STARTS THEIR COMMENTS, THE BOARD SECRETARY, DR SHIRLEY ROSE, GILLIAM WILL ANNOUNCE WHEN THEY HAVE 30 SECONDS REMAINING ONCE THE THREE MINUTE TIME LIMIT HAS EXPIRED, AND WHETHER THE SPEAKER HAS CONCLUDED THEIR COMMENTS. DR SHIRLEY ROSE GILLIAM WILL ANNOUNCE THAT THE SPEAKER'S TIME HAS ELAPSED. I THEN ASK YOU TO RETURN TO YOUR SEAT SO THAT THE NEXT SPEAKER MAY HAVE THEIR THREE MINUTES TO ADDRESS THE BOARD. WE HAVE ONE SPEAKER TONIGHT, AND THAT IS GLINDA GUZMAN. MCCALL. YOU'LL HAVE THREE MINUTES. HMM. THERE YOU GO. THANKS. MY NAME IS CLINIC WHOSE MAMA COLUMN THE PRESIDENT OF FORT BEND AMERICAN FEDERATION OF TEACHERS, AND I'M GLAD TO BE BACK HERE AFTER THE SUMMER. WE APPRECIATE THE EFFORTS MADE TO FIND FUNDS TO GIVE APPROPRIATE RAISES CHARGE TEACHERS. AND ALTHOUGH WE CAN ARGUE THAT MANY OF THE PROGRAMS THE DISTRICT IS PAYING FOR PROBABLY NEED TO BE RE EVALUATED FOR EFFICACY, WE DO UNDERSTAND WHAT YOU'RE TRYING TO DO, AND WE APPRECIATE IT. BUT WE DO ALSO UNDERSTAND THAT SOME OF THESE, UM, STRATEGIES MAY HAVE BACKFIRED. JUST A BIT. I'VE HEARD FROM MANY TEACHERS AND PARENTS AROUND THE DISTRICT WHO, ALTHOUGH THEY'RE HAPPY FOR THEIR COUNTERPARTS, THEY ARE LEFT WITH THE QUESTION. WHAT ABOUT ME? DON'T I MATTER? DON'T I DESERVE RESPECT? AND THE ANSWER TO THAT IS A RESOUNDING YES, THEY ABSOLUTELY DESERVE RESPECT, DESERVE THE RECOGNITION THAT OTHERS RECEIVE. AND THAT IS WHY I'M ENCOURAGING THIS TAX RATE. THIS IS THE ONLY WAY WE CAN GET TEACHERS AND STAFF, THE SUPPORT AND THE RACES THAT THEY NEED AND DESERVE AND SHOW THEM THE RESPECT THAT THEY DESERVE. IT'S
[00:15:04]
A SHAME THAT OUR TEACHERS CAN NO LONGER AFFORD TO LIVE IN DECENT APARTMENTS. AS I'M A REALTOR. I SEE FIRSTHAND HOW SINGLE TEACHERS ARE NO LONGER QUALIFYING FOR SOME OF THEIR APARTMENTS IN THIS AREA AND MUCH LESS QUALIFYING FOR HOMES IN THIS AREA. THIS IS ABSOLUTELY NOT THE WAY SINGLE TEACHERS SHOULD BE LIVING. AND THIS IS DISRESPECTFUL THIS YEAR WILL CONTINUE TO ADVOCATE FOR AND PAY IN THE WAY WE ALWAYS HAVE, AS WE KNOW THAT OUR TEACHERS DESERVE THAT KIND OF RESPECT AS WE DO OUR STAFF MEMBERS, BUT WE ALSO BUT WE'RE ALSO MOVING TOWARDS OTHER WAYS THAT WE CAN RESPECT OUR TEACHERS, ACCORDING TO A POLL THAT TEXAS SAFETY UM, CHECK THIS SUMMER 48 TEACHERS THAT LEFT THE DISTRICTS OR THEIR POSITIONS LEFT BECAUSE OF WORKING CONDITIONS. ALMOST HALF THAT IS SOMETHING WE CAN FIX THAT DOESN'T COST ANYTHING.SINCE THE FIRST DAY OF SCHOOL, I RECEIVED NO LESS THAN THREE CALLS A DAY. ABOUT INSTANCES OF ADMINISTRATIVE DISRESPECTING TEACHERS AND STAFF. THEY'RE ALREADY TAKING THEIR PLANNING TIME THEY ALREADY REQUIRING EXCESSIVE DUTIES, DOUBLING UP ON CLASSES. THIS IS JUST RESPECT, YOU'LL LIKELY LOSE SOME OF THESE TEACHERS AS I'VE GOTTEN REQUEST ON HOW TO GET OUT OF THEIR CONTRACTS ALREADY, WE'RE NOT EVEN A WEEK INTO THE SCHOOL. THIS KIND OF DISRESPECT CANNOT BE SUSTAINED 30 SECONDS OF ADMINISTRATOR TRAINING AND SUPPORT FOR THESE TEACHERS IS TERRIFYING. WE NEED TO DO OUR PART TO RETAIN OUR TEACHERS. THIS TAX RATE IS ONE WAY TO DO IT. THE OTHER IS TO TRAIN OUR ADMINISTRATORS ON HOW TO RESPECT OUR TEACHERS RESPECT THEIR TIME RESPECT THEIR FAMILIES RESPECTED PROFESSION. THANK YOU. THANK YOU, MRS MCCALL. WELL THAT SUMS UP OUR MEETING. I WILL ASK FOR A MOTION TO ADJOURN. I MOVED TO ADJOURN. A SECOND. THE TIME
* This transcript was compiled from uncorrected Closed Captioning.