2/9/2021
KATY INDEPENDENT SCHOOL DISTRICT
Community Bond Advisory Committee Bond Package Recommendation Presentation to the Katy ISD Board of Trustees February 8, 2021
Presented by Dr. Andrea Grooms, Chief Communications Officer Christopher J. Smith, Chief Financial Officer
2021 Community Bond Advisory Committee (CBAC)
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KATY
KATY INDEPENDENT SCHOOL DISTRICT WHO ARE WE?
• Community members annually volunteer an average of over 1,000,0000 hours per school year to Katy ISD campuses!
• The Katy community is home to hundreds of local civic, community and parent groups.
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KATY INDEPENDENT SCHOOL DISTRICT WHO ARE WE? A+ A A
Niche Best School Texas Education Financial Integrity Districts Grade Agency Rating System of accountability Texas (FIRST) rating
*2015‐16 rating
KATY INDEPENDENT SCHOOL DISTRICT WHO ARE WE?
AP “Best HONOR Communities #1 for Music ROLL Education” Best Employer in 10th year to Per the National the Houston Area appear on the Association of by Forbes, #2 in College Board’s Music Merchants Texas Annual list
*2015‐16 rating
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KATY INDEPENDENT SCHOOL DISTRICT WHO ARE WE? 92 $25 percent million Katy ISD students outperformed Graduating seniors were offered their peers in the state and region more than $25M in scholarships by 11 percentage points on STAAR to colleges and universities Performance in the Student across the country Achievement Domain for 2019 (state performance was 81%).
KATY ISD
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KATY INDEPENDENT SCHOOL DISTRICT WHO ARE WE?
KATY INDEPENDENT SCHOOL DISTRICT KATY ISD
Student enrollment has grown on average by 2,500 annually over the past decade!
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KATY INDEPENDENT SCHOOL DISTRICT
110,000 100,000 106,670 90,000 102,170 students 97,632 80,000 students students 70,000 93,317 88,490 students 60,000 students 50,000 40,000 30,000 20,000 10,000 2021 2023 2025 2027 2029 (2021‐22 sch yr) *Population and Survey Analysts (PASA) enrollment projections have been 99% accurate for the past three decades
KATY INDEPENDENT SCHOOL DISTRICT KATY ISD
2017 Bond included: 6 new schools, a comprehensive renovation and school 100 expansions, technology, safety & security, percent buses, portables of 2017 Bond Projects are Completed or In Progress
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KATY INDEPENDENT SCHOOL DISTRICT KATY ISD
Bond Year & Authorization Schools & Facilities Built 1994 Hayes Elementary (1995); McRoberts Elementary (1997); Alexander Elementary (1998); Enrollment: 23,950 Beck Junior High (1996); Katy Junior High (1995); Memorial Parkway Elementary Renovation; Katy & Taylor High School Phase 1 Renovations; Katy Elementary Expansion; Gyms at Mayde Creek Junior High & West Memorial Junior High
1996 Creech Elementary (2000); Williams Elementary (2000); McMeans Junior High (2000); Enrollment: 26,766 Cinco Ranch High School (1999); Katy & Taylor High Schools Phase 2 Renovations; Mayde Creek High School Renovation; Other minor renovations, carpet, etc.
1999 King Elementary (2001); Kilpatrick Elementary (2003); Schmalz Elementary (2001) Enrollment: 32,388 Cinco Ranch Junior High (2001); Morton Ranch Junior High (2003); Morton Ranch High School (2004); Cinco Ranch High School 9th Grade Ctr. & PAC; Mayde Creek High School 9th Grade Ctr. & PAC; Taylor High School: 9th Grade Center, Parking Garage & PAC; Katy High School Expansion & PAC; Junior High Music Room Additions to Beck Junior High, Katy Junior High, Mayde Creek Junior High, McDonald Junior High, Memorial Parkway Junior High & West Memorial Junior High; Education Support Complex; Law Enforcement Center; Maintenance & Operations Center Franz Road Complex Renovations; Ag Sciences Complex Phase I & II chart 1 of 3
KATY INDEPENDENT SCHOOL DISTRICT KATY ISD
Bond Year & Authorization Schools & Facilities Built 2002 Rylander Elementary (2004); Exley Elementary (2004); Rhoads Elementary (2004); Enrollment: 39,867 Franz Elementary (2004); Griffin Elementary (2006); Stephens Elementary (2007); WoodCreek Elementary (2007); Beckendorff Junior High (2004); Seven Lakes High School & 9th Grade Center (2005); Cinco Ranch High Gym; West Memorial Elementary Open/Closed Concept; Ag Sciences Complex (barns 5 & 6); Weight Room Expansion to Beck Junior High, Katy Junior High, McDonald Junior High, Memorial Parkway Junior High; Renovations at Hutsell; Cimarron; Nottingham; Pattison Elementary; Miller Career & Technology Center (Renovations completed in 2006 bond.)
2006 Morton Ranch Elementary (2008); Holland Elementary (2008); Stanley Elementary (2009) Enrollment: 51,201 Cardiff Junior High (2008); WoodCreek Junior High (2008); Morton Ranch High School 9th Grade Center (2008); Taylor High & Katy High Baseball Renovations; Mayde Creek High Natatorium; Sundown & Mayde Creek Elementary Addition/Renovations; Bear Creek & Winborn Elementary Renovations; Raines High School & Opportunity Awareness Center Expansion; Miller Career & Technology Center Expansion; South Transportation Phase 1; East Transportation Renovation chart 2 of 3
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KATY INDEPENDENT SCHOOL DISTRICT KATY ISD
Bond Year & Authorization Schools & Facilities Built 2010 Shafer Elementary (2012); Wilson Elementary (2012); Wolfe Elementary (2012); Enrollment: 60,803 Wolman Elementary (2012); Davidson Elementary (2014); Randolph Elementary (2014); Seven Lakes Junior High (2012);Tompkins High School, Ag Barn & 9th Grade Center (2013) Katy High School West Campus; Taylor High School Renovations; West Memorial & Mayde Creek Junior High Renovations; High School Performing Arts Center Retrofits – Katy High School, Taylor High School, Mayde Creek High School, Cinco Ranch High School
2014 Bethke Elementary (2016); Jenks Elementary (2016); Tays Junior High (2016); Enrollment: 70,330 Bryant Elementary (2017); Stockdick Junior High (2017); Paetow High School (2017); Legacy Stadium (2017); Renovations Cimarron Elementary, Golbow Elementary, Memorial Parkway Elementary, Pattison Elementary, Memorial Parkway Junior High, Mayde Creek High School Renovations; Safety and security upgrades; Technology
2017 Campbell Elementary, Leonard Elementary, McElwain Elementary, Adams Junior High, Haskett Enrollment: 77,569 JH, Jordan HS. Renovations: Fielder Elementary, Katy HS CTE, Katy HS Athletics, Raines/BTP addition, Safety and Security improvements, Technology
KATY INDEPENDENT SCHOOL DISTRICT
THE CBAC’S CHARGE: To assess campus and facility needs, review projects, timelines and costs, and determine the need for a 2021 schools bond.
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KATY INDEPENDENT SCHOOL DISTRICT
Cross‐Section of Community Members and Perspectives
Representatives from every Project managers school feeder pattern IT professionals PTA members Medical professionals Teachers Contractors Parents Retired educators Grandparents Principals Students Marketing Accountants Realtors Engineers Retirees Faith‐based leaders Other parents, residents & professionals
KATY INDEPENDENT SCHOOL DISTRICT
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KATY INDEPENDENT SCHOOL DISTRICT
Sean Aguilar Julie Crowell Michael Guillén Jason Knape Debbie Peterson Tina Thadhani OlasubomiAyoola Leila Cuevas Heather Gustafson Lance LaCour Aurorita Pulkkinen Felicia Thomas Marianne Bianchi Anthony DeBlanc Dean Haefner Dalton Lauck Anthony Rivera Thompson Rebecca Audrey Bivens Nicole Emidy Danielle Harris Rick Lawler Victor Rodriguez Preston Christina Borgstedte Jessica Estes Shae Harwell Jacob LeBlanc Michael Rubino Flora Tiedt Neil Bradley Laura Evans Brian Head John Liner Dizaree Sandberg Kim Tremblay Erica Brettell Eric Fezell Lana Henderson Carrie Lowery Norma Santos Candice Trimm Veguilla‐ Ralph Brock Bill Fisher Amy Heppen Kenneth Martinec Nathan Shipley Norma Martinez Michelle Brooks Robert Fling Daniel Herrin Michael Melville Joe Simmons Lillian Wanjagi Matt Brown Lisa Foreman Larry Heslip William Morgan Jenny Singson Matthew Wanner Curtis Brown Chad Fremin Sara Hobson Maurice Mullaly Diane Smith Donna Ward Martha Brown David Frishman Walter Holmes Mikel Nesom Shea Spruill Courtney Calfee Kathleen Funk Jay Jackson Aryn Newnam James Strickland Miracle Weatherspoon Marla Chavez Kevin Gallagher Sheheli Jahan Tim O’Neill T‐Jay Stried Brandy Williams Gina Coffman Sherry Gannon Rose James Mike Outlaw Philip Strimbu Jessica Wilson Brian Conroy Kelly Goerig Lyndel Johnson Scott Palmer Richard Suntken Jeremy Wilson Sam Cook Audra Gorsuch Kathryn Jones Mercy Parish Jennifer Tantoco Zhiyong Yang Rhedonda Cox Jessica Granger John Kelly Raxit Patel Rachel Tate Emily Craig Jared Green Stephen Kibbee Sarah Pearson Alice Terwege
KATY INDEPENDENT SCHOOL DISTRICT
A Community Investment of Time and Talent … 110 1,600+ Number of Combined hours of Committee pre‐ and in‐meeting Members data review, analysis and decision‐making
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KATY INDEPENDENT SCHOOL DISTRICT
The Bond Development Process Planning and Learning Deliberations
KATY INDEPENDENT SCHOOL DISTRICT
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KATY INDEPENDENT SCHOOL DISTRICT
KATY INDEPENDENT SCHOOL DISTRICT
COMMITTEE SUPER APPROVED Committee Approved Decision‐Making Model DECISION‐MAKING (April 3, 2014) MAJORITY MODEL OF 2/3
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KATY INDEPENDENT SCHOOL DISTRICT 2021 Projects and Priorities Presented to the Committee
150+ 4
Line item projects Propositions
KATY INDEPENDENT SCHOOL DISTRICT
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KATY INDEPENDENT SCHOOL DISTRICT 2021 Bond Package Recommendation 87% 9% 1 High School (#10) Classroom & Campus Technology 1 Junior High 3 Elementary Schools 2% + renovations & expansions at Natatorium for High School #10 aging campuses (All Katy ISD high schools have natatoriums) Safety & Security Upgrades Building Replacement 2% Components Campus & District Athletic Facilities/Stadiums Northwest Transp. Center Repairs & Component Replacements Buses
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KATY INDEPENDENT SCHOOL DISTRICT 2021 Bond Package Recommendation 7,490 seats
The number of classroom seats* that would be added over the next 3 years with this bond
*The 2021 bond package includes 5 new schools.
KATY INDEPENDENT SCHOOL DISTRICT
New Schools, Purchase of School Sites, Renovations & Expansions for Aging Campuses, $591,368,568 PROP A Safety & Security, Buses, Building Component Replacements Classroom & Campus $59,755,242 PROP B Technology
Natatorium for High School #10 $13,842,610 PROP C (All Katy ISD high schools have natatoriums) Campus & District Athletic Facilities/Stadiums Repairs & $11,260,000 PROP D Component Replacements
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KATY INDEPENDENT SCHOOL DISTRICT
WHAT “NO CHANGE” MEANS: Katy ISD can make all existing and new bond payments with the $0.39 school district bond tax rate residents are currently paying.
2021 Bond
CHIEF FINANCIAL OFFICER
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2021 BOND
KATY INDEPENDENT SCHOOL DISTRICT Tax Rate Impact Tax Rate 2014 2017 2021 Impact
1/2 cent NO CHANGE NO CHANGE Projected INCREASE TO RATE TO RATE
DECREASE ACTUAL NO CHANGE of 1 cent TO RATE
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KATY INDEPENDENT SCHOOL DISTRICT Katy ISD Tax Rate 2006 ‐ 2021 $1.5266 tax rate for eight years in a row then $0.01 decrease $2.00 for three years and now down $0.13 more over last two years $1.80
$1.60 $1.5266 $1.5266 $1.5266 $1.5266 $1.5266 $1.5166 $1.5166 $1.5166 $1.4432 $1.40 $1.3888
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00 11‐12 12‐13 13‐14 14‐15 15‐16 16‐17 17‐18 18‐19 19‐20 20‐21
KATY INDEPENDENT SCHOOL DISTRICT Values and Tax Rates
2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Avg. Market $201,835 $205,870 $215,269 $240,428 $274,385 $279,498 $279,372 $275,827 $296,883 $303,173 Value Avg. Taxable $186,835 $190,870 $200,269 $225,428 $249,385 $254,498 $254,372 $250,827 $266,137 $271,914 Value
Tax Rate $1.5266 $1.5266 $1.5266 $1.5266 $1.5166 $1.5166 $1.5166 $1.5166 $1.4432 $1.3888
Taxes $2,852 $2,914 $3,057 $3,441 $3,782 $3,860 $3,858 $3,804 $3,841 $3,776
Increase (decrease) $54 $62 $143 $384 $341 $78 ($2) ($54) $37 ($65) on Avg. Residence
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KATY INDEPENDENT SCHOOL DISTRICT Katy ISD Tax Illustration 2011 ‐ 2020
for sale
2011‐12 Equity increase of 2020‐21 District Tax = $101,338 since 2011 District Tax = $2,852 $3,776 Tax increase of $924 since 2011
KATY INDEPENDENT SCHOOL DISTRICT Appraised Values: History & Projections
Tax School Year YearAppraised Value Increase % Change 2024 2024-2549,670,043,420 973,922,420 2.0% 2023 2023-2448,696,121,000 1,418,333,622 3.0% 2022 2022-2347,277,787,378 1,377,022,933 3.0% Historical Average Growth: 2021 2021-2245,900,764,445 891,014,989 2.0% 2020 2020-2145,009,749,456 3,380,970,691 8.1% 5 year: 6.5% 2019 2019-2041,628,778,765 2,682,330,852 6.9% 10 year: 8.6% 2018 2018-1938,946,447,913 965,934,756 2.5% 2017 2017-1837,980,513,157 1,629,069,245 4.5% 15 year: 8.9% 2016 2016-1736,351,443,912 3,447,018,784 10.5% 2015 2015-1632,904,425,128 4,298,554,047 15.0% 2014 2014-1528,605,871,081 4,322,440,091 17.8% 2013 2013-1424,283,430,990 2,200,171,879 10.0% 2012 2012-1322,083,259,111 1,355,737,360 6.5% 2011 2011-1220,727,521,751 907,596,085 4.6% 2010 2010-1119,819,925,666 302,276,787 1.5% 2009 2009-1019,517,648,879 844,524,428 4.5% 2008 2008-0918,673,124,451 2,501,387,583 15.5% 2007 2007-0816,171,736,868 2,168,132,966 15.5% 2006 2006-0714,003,603,902 1,315,091,867 10.4%
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KATY INDEPENDENT SCHOOL DISTRICT Tax Rate Projection for a Potential $700 Million Bond Authorization
1 2 3 4 5 6 7 PROJECTED: Using conservative tax PSF AAA/Aaa Tax Exempt Rates as of 1/19/21 PLUS 1.00% PROJECTED Pre‐Bond Election Potential KISD 2021 Issued: 7/15/21 Issued: 7/15/22 Issued: 7/15/23 Maximum FYE 2021 I&S Tax Rate base growth and interest Bond Authorization 30 Yr @ 3.32% 30 Yr @ 3.32% 30 Yr @ 3.36% I&S Tax Rate I&S Tax Rate Increase rate assumptions, Katy $ 700,000,000 $ 233,000,000 $ 233,000,000 $ 234,000,000 $ 0.3900 ‐$ 0.3900 =$ ‐ ISD has the capacity to I&S Tax Rate Projections Plus PROSPECTIVE $800 Million 2024 Election Plus PROSPECTIVE $700 Million 2021 Election authorize $700 million in Current KISD Debt After $609.2 Mil 2017 Authorization $0.50 bonds in 2021 and $0.45 subsequently $800 $0.40 million in bonds in 2024 $0.35 and stay at the current $0.30 $0.39 I&S Tax Rate $0.25 I&S Tax Rate $0.20
$0.15
$0.10
$0.05
$0.00 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 2057 Fiscal Year
KATY INDEPENDENT SCHOOL DISTRICT Debt Management Tools
• Bond Refundings: Since 2017 Gross Savings of $70.8 Million
• Bond Defeasances: Since 2017 Interest Savings of $17.8 Million
• Interest Income on Bond Proceeds: Goes to debt service
• Fund Balance: $60.6 Million
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KATY INDEPENDENT SCHOOL DISTRICT Bond Now vs. Bond Later
• Overcrowding of students • Construction inflation risk • Interest rate risk • Additional pressure on General Fund
KATY INDEPENDENT SCHOOL DISTRICT New Texas Legislation ‐ Schools Bond Ballot Language
WHAT “THIS IS A PROPERTY TAX INCREASE” MEANS: Residents’ tax rate does not change, though the length of time our community pays on existing & new school district debt is extended because the outstanding total has increased.
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KATY INDEPENDENT SCHOOL DISTRICT
WHAT “NO CHANGE” MEANS: Katy ISD can make all existing and new bond payments with the $0.39 school district bond tax rate residents are currently paying.
2021 Community Bond Advisory Committee (CBAC)
CHIEF COMMUNICATIONS OFFICER
22 2/9/2021
KATY INDEPENDENT SCHOOL DISTRICT
Last Day to Call an Election: February 12, 2021 Last Day to Register to Vote: April 1, 2021 Early Voting: April 19‐27, 2021 Election Day: May 1, 2021
FOR MORE INFORMATION ABOUT THE COMMITTEE’S RECOMMENDATION:
• VISIT www.katyisd.org/sites/bonds
• EMAIL [email protected]
• CALL (281) 396‐2225
KATY INDEPENDENT SCHOOL DISTRICT
Katy Independent School District, the leader in educational excellence, together with family and community, provides unparalleled learning experiences designed to prepare and inspire each student to live an honorable, fulfilling life ... to create the future.
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KATY INDEPENDENT SCHOOL DISTRICT
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