KILLEEN ISD FISCAL YEAR 2020 BUDGET HEARING AUGUST

KILLEEN ISD FISCAL YEAR 2020 BUDGET HEARING AUGUST 27, 2019 1

BOARD APPROVED BUDGETS • GENERAL FUND (MAINTENANCE AND OPERATIONS) • SCHOOL NUTRITION FUND • DEBT SERVICE FUND (INTEREST AND SINKING) 2

M&O BUDGET PLAN COMPONENTS ØTaxable property values increase of 9. 8% to $8. 56 Billion ØM&O tax rate reduced from $1. 04 to $0. 97 ØIncreased compensation for employees Ø 8% for CDL bus drivers Ø 6% for auxiliary Ø 4. 5% for nurses, librarians and counselors Ø 3. 5% for administrators ØIncreased teacher starting salary from $47, 000 to $50, 300 Ø 6. 6%-10% increases based on years of experience ØTransfer of 1. 25% of Expenditures for Capital Improvement Projects ØImpact aid budgeted revenue remains at $47. 6 M (same level since FY 2015) 3

M&O BUDGET PLAN COMPONENTS ØTeacher classroom supply stipend of $100 per teacher per year and $50 warehouse certificate for new teachers ØContinued monthly health care contribution of $400 or flexible benefits contribution of $200 ØProjected peak student enrollment of 45, 583 ØBased on projected student Average Daily Attendance of 41, 149 ØContinued staffing 22: 1 at PK-4 and 23: 1 at 5 -12; utilizing waivers on a case by case need 4

M&O BUDGET PLAN COMPONENTS ØFunding 6, 751. 75 Full Time Equivalent employees approved by the school board on April 9, 2019 from all funding sources (6, 676. 56 in March 2018) ØProvides funding to support instructional needs of 4 traditional high schools, 11 middle schools, 32 elementary schools, an Early College High School, a Career Center, Pathways Academic Campus and several other specialized campuses (Advent. Health, Gateway) 5

Targeted Funding for FY 2020 • Compensation Plan • Transfer to Capital Improvement Program • School Improvement Focus • Directors for School Improvement • Reading Academy • Teacher Performance Pay Opportunity • School Behavioral Health Program Expansion • Self Insurance Fund Start Up • e. Rate Network Projects • Bus Replacements 6

ENROLLMENT COMPARED TO AVERAGE DAILY ATTENDANCE (ADA) 2011 -2019 Actual Peak Enrollment, 2020 Projected Peak Enrollment 2011 -2019 Actual ADA, 2020 Projected ADA used for revenue 7

Net Taxable Value Billions NET TAXABLE VALUE GROWTH $ 9. 0 $8. 56 B $ 8. 5 $ 8. 0 $ 7. 5 $ 7. 0 $ 6. 5 $ 6. 0 $ 5. 5 $ 5. 0 $ 4. 5 $ 4. 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Fiscal Year for Revenue $10, 000 additional homestead exemption started in FY 2016 8

TOP TEN TAXPAYERS Name of Taxpayer Assessed Value ONCOR Electric Company $116, 165, 363 HH/Killeen (Seton) Health System 53, 532, 290 Cole MT Harker Heights (Market Heights Shopping Center) 33, 968, 749 Wal-Mart Stores Texas 29, 574, 749 Watercrest Place 27, 215, 442 HH/Killeen (Seton) Health System 25, 500, 000 Credit Suisse First Boston Mortgage (Killeen Mall) 23, 943, 075 Amber Chase Townhomes & Huntington Apartments (Stone Creek) 23, 712, 447 H-E-B 21, 479, 717 Wal-Mart Real Estate Trust 19, 247, 476 3. 3% $374, 339, 308 9

PROPERTY TAX EXEMPTIONS Number of Property Tax Exemption Taxpayers 35, 000 30, 000 25, 000 20, 000 15, 000 10, 000 5, 000 0 Tax year 2014 2015 2016 2017 2018 2019 Disabled Veterans Disabled Veteran Homestead, 100% disabled or unemployable Disabled Veteran Homestead Surviving Spouse Exemptions Homestead, $15, 000 state mandated Over 65, $10, 000 exemption Other 10

PROPERTY TAX EXEMPTIONS Property Tax Exemption Values $ 1, 200, 000 $ 1, 000, 000 $ 800, 000 $ 600, 000 $ 400, 000 $ 200, 000 $- 2015 2016 2017 2018 2019 Disabled Veterans Disabled Veteran Homestead, 100% disabled or unemployable Disabled Veteran Homestead Surviving Spouse Exemptions Homestead, $15, 000 state mandated Over 65, $10, 000 exemption Other 11

PROPERTY TAX PAYMENT DISCOUNT Number of taxpayers who paid with a discount for the 2018 tax collection: Number Discount 46, 058 3% November 2018 3, 250 2% December 2018 2, 818 1% October 2018 January 2019 70 52, 196 per BCAD Property tax discount in 2020 budgets = $2. 35 million 12

Millions GENERAL FUND REVENUE $ 350 $ 300 $303. 2 million $ 250 Local $ 200 State Federal $ 150 $ 100 $83. 5 million $50. 7 million $ 50 $- 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 -2019 ADOPTED BUDGETS; 2020 PROPOSED 13

Millions M&O BUDGETED EXPENDITURE HISTORY $ 450 $428. 5 million $ 400 $ 350 $ 300 $ 250 $ 200 $ 150 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 -2019 ADOPTED BUDGETS; 2020 PROPOSED 14

M&O BUDGET COMPARISON 15

M&O EXPENDITURES BY FUNCTION 16

M&O EXPENDITURES BY MAJOR FUNCTION Administration Transportation, and Data Facilities, Security Processing 4. 7% and other Operations 12. 5% Instructional Administration, School Leadership, Counseling, Attendance, Health Services and Co-curricular Activities 16. 0% Instruction, Curriculum, Professional Development and Community Services 66. 8% 17

M&O EXPENDITURES BY MAJOR OBJECT Professional Services Supplies & 7. 3% Materials 5. 2 % Operating Costs 4. 5 % Capital Outlay 0. 6 % Payroll & Benefits 82. 4 % 18

SCHOOL NUTRITION BUDGET PLAN COMPONENTS ØEmployee compensation plan applied ØMeal plan as required by the Healthy, Hunger-Free Kids Act of 2010 Ø 425 Cafeteria staff; 22 Central Office staff ØContinuing the Community Eligibility Program at 28 campuses 19

SCHOOL NUTRITION BUDGET COMPARISON 20

SCHOOL NUTRITION BUDGET COMPARISON 21

I&S BUDGET PLAN COMPONENTS Ø$426 million bond election passed by voters in May 2018 Ø$300 million sold July 2018/ $126 million sold July 2019 ØI&S tax rate increased from $0. 07 to $0. 22 for FY 2019 ØI&S tax rate decreased from $0. 22 to $0. 1911 for FY 2020 ØTotal outstanding debt service as of 8/31/19: principal - $422, 765, 000 interest - $265, 575, 037 total - $688, 340, 037 ØDebt service through 2044 ØAnnual debt service payments range from $19. 2 M to $27. 8 M 22

I&S FUND REVENUE Millions I & S Tax Rate $ 18 $ 0. 22 $ 16 $ 0. 20 $ 14 $ 0. 18 $ 12 $ 0. 16 $ 10 State Revenue Local Revenue I&S Tax Rate 20 20 20 $ 0. 06 19 $18 $ 0. 08 17 $2 16 $ 0. 10 15 $4 14 $ 0. 12 13 $6 12 $ 0. 14 11 $8 2011– 2019 ADOPTED BUDGETS; 2020 PROPOSED 23

I&S BUDGET SUMMARY 24

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TAX RATE IMPACT ON AVERAGE HOME 26

OUTSTANDING DEBT COMPARISON Principal Outstanding $ 1, 400, 000 $ 1, 200, 000 $ 1, 000, 000 $ 800, 000 $ 600, 000 $ 400, 000 $ 200, 000 $- Killeen Waco Temple Copperas Cove Belton Spring Round Rock Richardson Mesquite Klein Humble Conroe Clear Creek 27

PROPOSED TOTAL TAX RATE COMPARISON 2020 Fiscal Year Proposed Tax Rates Killeen 1. 06835 Waco 1. 03590 Temple 1. 06835 Copperas Cove 1. 06830 Belton [VALUE] Spring 0. 97000 Round Rock 1. 17000 Richardson 0. 97000 Mesquite 0. 97000 Klein 1. 17000 Humble 0. 97000 Conroe 0. 97000 Clear Creek 0. 97000 $0. 70 U $0. 90 M&O I&S 0. 1911 0. 2341 0. 32 0. 0813 0. 3968 0. 46 0. 2648 0. 35 0. 48 0. 39 0. 35 0. 265 0. 34 $1. 10 $1. 30 $1. 50 $1. 70 28

2019 -2020 PROPOSED BUDGETS FOR ADOPTION 29