Bond Funds - Rockwall ISD

WEDNESDAY, JANUARY 7
6:00 PM – 9:00 PM
Facilitator | Michelle Hughes, TM Strategy & Design Group
Rockwall ISD Mission
The mission of Rockwall ISD, a diverse and unified
community embracing endless learning possibilities, is
to inspire and develop the unique abilities of our
children to become passionate learners, extraordinary
citizens and authentic leaders of the 21st century by
cultivating an engaging learning environment based
on high standards and expectations in a culture of
kindness and compassion.
Rockwall ISD Superintendent
Jeff
Bailey
Board of Trustees President
Chris
Cuny
Bond Planning Committee Facilitator
Michelle Hughes, TM Strategy & Design
Group
The experience of the facilitator
¨  The role of the facilitator
¨  The tools of the facilitator
¨  The goal of the facilitator
¨  From Bond Plans to Ballot Box
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Contact Info
thehughes1@valornet.com
(979) 220-3508 [mobile]
(936) 855-2622 [home]
Michelle is available to you
at any time.
The Facilitator’s Goal
“A Peak Performing Rockwall ISD 2015 Bond Planning Committee!”
Maintains order. . .even in chaos
¨  Agrees upon norms of behavior (commonly called
ground rules)
¨  Allows time to process complex information
¨  Assures equitable and uniform communications
¨  Knows how decisions will be made
¨  Is clear on process
¨  Honors all members; honors all input
¨ 
Your Task Cycle for Tonight
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Purpose of Bond Planning Committee 2015:
Collaborative development of a bond referendum
recommendation for presentation to the Rockwall
ISD Board of Trustees and ultimately to the Rockwall
ISD community in November 2015
Outcomes for Tonight
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Aligned work group; cohesive owners of the Bond Planning
Committee 2015 work
Review of Bond Planning Committee Charter and Scope of
Work
Shared Values
Ground Rules
Clarity on Process and Group Dynamics
Acceptable Decision-making Model & Ground Rules or
Norms
2007 Bond Status & Elementary #14
Schoolhouse Bonds & District Finance 101
District Demographics
Overview of subsequent meetings
Housekeeping
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At 6:00 PM, prior to each meeting, district resource professionals will be
available if you have questions or missed a meeting.
All presented materials & information will be distributed to you as handouts
and/or on the Rockwall ISD website Bond Planning Committee 2015 Bond
Tab.
Because of time constraints, no breaks have been scheduled, so please take
plumbing or motion breaks as needed. Restrooms and exits are right out
the doors behind you.
The district leadership team as well as other professionals are here to serve
you and to be a resource for you. Ask any questions. Unanswered
questions or frequently asked questions and answers will be posted on the
Rockwall ISD website Bond Planning Committee 2015 Bond Tab.
A facilitator has been assigned to your table to assist you with process and
adherence to ground rules. They will remain neutral to the content of your
discussions.
Introductions
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Who are you? Your name. . . (You have only 10 minutes at
your tables. You will get to know others on the committee as you work
together.)
1. 
Your role in the community or Rockwall ISD
2. 
Do you or have you had children in Rockwall schools?
Ground Rules for this Committee
How will we work together on this historic project?
¨  Try thinking backwards. . .
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“What would make these meetings a disaster?”
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Here are some ground rules that have emerged
from every bond committee with which I have
worked. Shall we use some of them? All of them?
Shall we add to them? Shall we take any away?
Common Ground Rules
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One conversation at a time; no side-bar talk
Honor the time contract
Stay on topic and on task
Share ideas freely; no “duck shooting”
Listen to understand; respect and honor others’ input
Think holistically; sublimate personal agendas; consider
the whole District.
Be kind
Be honest
Be relentless in pursuing consensus
HAVE FUN!
How Will We Make Decisions?
“If we don’t decide how
we will decide now,
someone will do it for us
later.”
Proposed Decision-making Model
Consensus
80%
Rule
Vote
SUSTAINABLE DECISION
SUPER MAJORITY OF 2/3
80% Rule…
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If, after group discussion, consensus is not
achievable, 80% agreement will constitute a
sustainable decision.
Vote…
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If the group is not able to achieve consensus or an
80% agreement, a super majority vote of 2/3 of
the committee will constitute a decision.
¤  Even
a super majority vote is the least desirable
process for our committee.
Consensus & Gradients of Agreement
ENDORSEMENT
“I like it.”
ENDORSEMENT
WITH A MINOR
POINT OF
CONTENTION
“Basically, I
like it.”
AGREEMENT
WITH
RESERVATIONS
“I can live with
it.”
ABSTAIN
STAND ASIDE
“I have no
opinion.”
“I don’t like
this, but I don’t
want
to hold up the
group.”
This is the Community At Work Gradients Of Agreement Scale.
This scale makes it easier for participants to be honest. Using it, members can register less-thanwhole-hearted support without fearing that their statement will be interpreted as a veto.
Community At Work © 1996
FORMAL
DISAGREEMENT,
BUT WILLING TO
GO WITH
MAJORITY
FORMAL
DISAGREEMENT,
WITH REQUEST TO
BE ABSOLVED OF
RESPONSIBILITY
“I want my
disagreement
noted in writing,
but I’ll support the
decision.”
“I don’t want to
stop anyone else,
but I don’t want to
be involved in
implementing it.”
BLOCK
“I veto this
proposal.”
Committee Charter
Take a moment at your tables to review the Charter
for this Bond Planning Committee 2015
¨  May we agree to the charter?
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Shared Values for This Work
Dynamics of Group Decision-Making
THE DIAMOND OF
PARTICIPATORY DECISIONMAKING
NEW
TOPIC
?
ü
DECISION
POINT
TIME
Community At Work © 1996
What Process Shall we Follow in our Meetings?
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We will be uniform and fair in our decision-making.
We will have time to process information and ask questions.
We will be presented complex school finance information by district and
external professionals.
We will gain understanding and insight into district needs through presentations
by district professionals in several meetings.
We will be given a spreadsheet with the projects and associated costs when all
the presentations are complete.
We will deliberate and make decisions individually, at our tables, in four
larger groups, in two large teams, then collectively (more detailed description
later).
We will reach consensus on a bond referendum that we consider viable in the
community and that meets the needs of our district/students.
We will present that proposed referendum to the Board of Trustees who have
the final decision on bond election.
What was the Most Important Think you Heard?
or Do you Have a Questions or Comment?
Keep your questions and comments concise and to
the point.
¨  No follow-up questions from the same person/table
until all have had a chance to give feedback.
¨  No “compound sentence” questions (this is not my
first rodeo!).
¨  Write unanswered questions on the presented topic,
one per post it, and leave on your table.
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DISTRICT FINANCE 101
District Finance 101
A look at growth
¨  Status of 2007 bond projects
¨  Comparison with other districts
¨  Two types of school funding
¨  RISD’s financial condition
¨  Future bond payment stability
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2
December 24th Headline
RISD Enrollment Growth
16,000
14,991
14,213
15,000
14,000
13,027
12,468
11,519
10,545
13,000
12,000
Student Enrollment
13,732
13,372
13,965
14,359
14,626
11,000
9,984
9,488
10,000
9,000
4
RISD Property Value Growth
$8,000,000,000
$7,000,000,000
$6,000,000,000
$5,000,000,000
$4,000,000,000
$3,000,000,000
$2,000,000,000
$1,000,000,000
$-
5
Enrollment Growth and
Tax Rate Comparison
$1.88
$1.88
16,000
$1.88
$1.8372
14,991
$1.80
$1.71
Tax Rate In Dollars
$1.70
13,732
13,965
14,213
14,359
15,000
14,626
14,000
13,372
$1.60
13,027
12,468
$1.50
$1.40
11,519
$1.30
10,545
$1.20
$1.10
$1.00
$1.47
$1.47
$1.47
$1.47
$1.47
$1.47
$1.46
13,000
$1.44
12,000
Student Enrollment
$1.90
11,000
9,984
9,488
10,000
9,000
6
What’s The Status of the 2007
Rockwall ISD Bond Referendum?
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$198,150,000 Bond Package for:
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Billie Stevenson Elementary School – Completed
Rockwall Heath High School Expansion - Completed
Herman E. Utley Middle School Conversion/Renovations - Completed
Rockwall High School Modifications - Completed
Aquatic Wellness Center - Completed
Renovation of Wilkerson-Sanders Stadium - Completed
District-wide Technology Improvement - Completed
Purchase of Necessary Sites for School Buildings - Completed
Purchase of New School Buses – Completed
Expansion of Cullins-Lake Point Elementary School – Expansion not needed due
to lack of enrollment growth; Renovations and HVAC System replacement
Modifications and expansions to provide for full day kindergarten/early
childhood centers – Early Childhood Areas built into three elementary schools
Elementary School Number 14 – $25,000,000 still available for this project – no
one is being taxed on this – bonds not sold until needed to pay for construction
7
Comparison of RISD Tax Rate to
Peer and Neighboring Districts
$1.75
$1.50
$1.25
$1.00
$0.75
$0.50
I&S
$0.25
M&O
$0.00
8
Comparison of Outstanding Principal to
Peer and Neighboring Districts
Outstanding Principal Per Student
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
9
Maintenance and Operations Funds
vs Bond Funds
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Maintenance and Operations Funds
¤  These
are the funds the District uses to pay its day to
day expenses such as salaries, utilities, fuel, insurance,
etc.
¤  Texas Public School funding system is currently based
primarily on an allotment per student in weighted
average daily attendance
n  2014-2015
approx. $6,131 per student or $35 per
attendance day
n  2015-2016 approx. $5,969 per student or $34 per
attendance day
10
Maintenance and Operations Funds
vs Bond Funds
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Bond Funds
¤  Bond
funds are those specifically authorized by voters
and are only available for capital project items such as:
n  Land
acquisition
n  Buildings and Improvements to District Real Estate
n  Technology, Buses, Furnishings, Fixtures and Equipment for
School Buildings
11
Maintenance and Operations Funds
vs Bond Funds
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The two types of funding sources must be kept
separate by State Law
¤  Cannot
use bond funds for maintenance and operations
¤  Must use bond funds only for projects authorized by the
voters
12
Rockwall ISD Financial Condition
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The District is in very good financial condition
¤  Maintenance and Operations – The General Fund
n  June
30, 2014 Fund balance in the General Fund of $44.1
million constitutes approximately 39.5% of the subsequent
year’s operating budget – or about 4.7 months operating
expenditures
n  Financial advisors recommend keeping at least three months
of operating expenses in this fund
13
Rockwall ISD Financial Condition
¤  Bond
Funds - Debt Service Fund
n  June
30, 2014 Fund balance in the Debt Service Fund of
$8.2 million constitutes approximately 32.4% of the
subsequent year’s debt service requirements
n  Financial advisors recommend keeping 25 percent of the
annual debt service payment in this fund
n  Annual Debt Service required payments are fairly stable
through the life of the debt
14
Current Annual Debt Payments Required
$31,989,541
$32,500,000
$27,500,000
$25,460,254
$25,568,889
$22,500,000
$17,500,000
$12,500,000
$7,500,000
$4,671,925
$2,500,000
15
Questions or
Comments Regarding
District Finance?
Bond Planning Committee Meeting Schedule
ü  Wednesday, January 7:
Structure of Meetings; Process Tools; 2007 Bond Status Report;
Schoolhouse Bonds 101; Demographics
Wednesday, January 21:
Facilities Tours
Wednesday, February 11:
Process Review, Priority Schedule, New Construction; Renovations;
Curriculum & Instruction; Land Acquisition
Wednesday, February 25:
Transportation; Safety & Security; Athletics; Fine Arts; Other Capital
Projects
Wednesday, March 18:
Technology; Financial Capacity & Impact; Bond Construction Instructions
Wednesday, April 1:
Table Bond Construction
Wednesday, April 15:
Four-table Bond Construction
*Thursday, April 23:
Two-table and Large Group Bond Construction; SWOT Analysis
Wednesday, May 13:
Prepare Board Presentation
Wednesday, May 27:
Finalize Bond Referendum
*Monday, June 15:
Present Committee’s Final Referendum Recommendation to Board of
Trustees
*Day change
Process Check/Likes & Wishes
LIKES:
WISHES:
WEDNESDAY, JANUARY 7
6:00 PM – 9:00 PM
Facilitator | Michelle Hughes, TM Strategy & Design Group