Forney ISD considers 2023-2024 budget

During its regular June 26, 2023 meeting, the Forney Independent School District Board met to consider 2023/24 Budget and Tax Rate

• Held a 55-minute executive session
  
• Held Public Hearing -
  • Discuss proposed 2023-2024 budget and tax rate
        Mr. John Chase, Chief Financial Officer, said work on the budget began in January, had a workshop in March, in April the Board approved pay raises; that is all incorporated in this budget.  Document has 4 sections 0 introduction, organization, financial, information about property values, staffing levels.
        Main parts of budget - enrollment, and property taxes.  Expecting 9.5% student growth next year.  Last year had 16k students, next 5 yrs will add 8k.  Property values expected to increase 22%, which affects debt service funds.  2023 property value total: 12.6bln, 9 bln is Single Family, commercial is 2nd highest at 2.1 bln.  (the chart shows value has doubled in last 5 years) Estimated revenue 250 mln, appropriations 246.3 mln.  General fund is 77%, food service is 3%, debt service is 20%.  84% of general fund expense is payroll.
        Assumptions for revenue - same student allotment, 5th year has been the same, state did not increase it from $6,160.  Should get 3 mln increase from Guaranteed Yield per Student.
        General fund: 48% comes from local, 51% from state.
        Did 15/hr min rate for all, plus 5% midpoint increase; no retention pay, will be discussed in future.
        More busses have been ordered at 2.1 mln.  1.4 mln for chromebooks.
        Expect to have 2.5 months of reserve, goal is 2 months.
        Balanced budget with rate 0.8496. (current is 0.8546)
        In summary, expect 20% increased revenue, 14.4% expenses.
        Food Service: 14% increase in revenue, required to raise cost by 10c, likely will have to do that next several years.  19.6% in expenses, partly due to labor.  7.5 mln revenue, expenses 8 mln, if hire all approved persons; some won't be needed until Jan which will save money.  Since have contracted w/ food management company, sales could go up (due to more offerings).
        Debt Service: 98% comes from property taxes and interest, expect 29% more revenue, 47% expense due to bonds.  show a 5 mln balance due to FY calendar, needed for large bond payment.
        Could have 25 mln fund balance w/ (same) tax rate 0.50.
        Ms. Burkhalter asked if the budget includes a plan for hb 3 for security - Dr. Terry said haven't received guidance yet, believe budget will be sufficient to support it.  She said it was related to armed security on campus.
        There was no public input.

• Monthly Financial Report
      Mr. Chase stated income 82%, vs 84% last year.  Expense at 91%, vs 89% last year.  Food service 107%, vs 120% - this is first normal year for food service in a while.  Expense at 71% due to capital expenses, vs 81% last year. 
  
• Public Comment
  • Chris Gibbs - he spoke about the report they just heard.  As executive director of facility services, He has best job in district - they get to help people solve problems, and it takes a lot of people.  Thanks to board, they've been able to fill all positions, even new campuses (except 9th grade centers, will hire in Dec).  They lost some folks when other districts went to $15, some have come back now.  Board leadership is second to none, they have allowed him to do his job.

• Approved as one consent item:
  
  
  • Minutes of May 30, 2023 Monthly Board Meeting
    
  • Budget Amendments
    
  • the Mesquite ISD Regional Day School for the Deaf Expense

• Approved the 2023-2024 budget
      Mr. Chase said estimate 250 mln revenue, expenses 246 mln, recommends approving this budget.
      Dr. Terry thanked Mr. Chase for his work, still a lot happening in Austin, so will be bringing items back to board.  Still funded at 2019 levels.  Several safety nets in the budget, he recommends approval.
      President Pharris thanked them for working with the uncertainty from the state.
  
• Approved 2023-2024 employee stipend plan as presented.
      Mr. Chase said board approved salary before, this is for stipends and extra duty pay - substitutes, coaches, fine arts
     
  
• Approved the 2023 TASB delegate/alternate selection
      Mr. Greg Pharris, School Board President, nominated Ms. Bateman and Mr. Regan as alternate. That was approved.
  
• Did not hold an executive session re:
  • Consultation with Legal Counsel Regarding Legal Requirements Associated with Budget and Tax Rate Adoption Process, Pursuant to Tex. Gov't Code 551.071, 551.129
    
  • Consultation with Attorney, Pursuant to Tex. Gov't Code 551.071
    
  • Deliberation Regarding the Ratification of Employment of Professional Contract Personnel, Pursuant to Tex. Gov't Code 551.074, Personnel Matters
    
  • Deliberation Regarding Potential Purchase and Acquisition of Real Property, Kaufman County, Texas, pursuant to Tex. Gov't Code Section 551.072

• Approved ratification of employment of professional contract personnel As Discussed in Closed Session
  
• Announcements
  Tuesday, July 4 Holiday/Independence Day
  Wednesday, August 2 Convocation
  Monday, August 7 Monthly School Board Meeting
  Thursday, August 10 First Day of School
  Monday, September 11 Monthly School Board Meetings

• Adjourned at 1941