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Good evening. As President of the Board of Trustees of the Wichita Falls Independent School District, I hear about call to order this meeting of the Board of Trustees. Let the record reflect that a quorum of the Board is present that the meeting has been duly called and notice that the meeting has been posted for the time and in the manner required by law. We are pleased that you have taken the time tonight to join us this evening. Thank you for your interest in the Wichita Falls Independent School District. Please be sure that all cell phones are turned to silent or vibrate mode are off.

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Okay, at this time we'll call the meeting to order at 530, Ms. Horton.

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Good afternoon, everybody.

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Okay, I'm here to present to you our first writing.

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This is a required public hearing that we have to have.

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And what is first, it is your financial integrity writing system of Texas.

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It ensures that Texas Public Schools are held accountable for the quality

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of their financial management practices and that they improve these practices. The system

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is designed to encourage Texas Public Schools to better manage their financial resources

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to provide the maximum allocation possible for direct instructional purposes.

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And so for the 2526 school year based upon your 2425 financial data we received to be which

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is a bug-seater achievement.

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So I'm going to take you through real quick the indicators.

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Instead of doing an indicator per slide, I thought this was easier just to kind of get a look at

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them. The AFR, that is your annual financial report and the data that we have at the end of the

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fiscal year gets submitted to TEA through our auditors. And so we got full points on that.

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the auditors issued an unmodified opinion on our audit, so we got full points on

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that. The district was in compliance with all debt agreements. We made our

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timely payments to the IRS, Tiras, etc. The district had a positive net

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position indicator 625% or less change in fund balance and we received full

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points on that. We were able to cover our operating expenditures. We were able to cover

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our short-term debt and the general fund revenues equal or exceed expenditures. That means

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that we ended the fiscal year with a positive fund balance, a positive net income, I guess

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you could say. We added a fund balance for the 2425 fiscal year. So did these all make

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since. All right, now it also just want to point out five, seven, eight, not all

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relate to year in positive outcomes. Okay, that means that as a district, even

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though we ran a deficit budget at one point, we ended the year and we were able

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to add to fund ballots. I'm kind of surprised the number six that our

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fund balance was did not change more than 25% because you grew it so much. That was

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that first year since then we've probably added 3 to 5 million and whenever you

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start talking 55 million it's not within the 25 percent so we've stayed

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within the thresholds we've gotten full points on that one. Yeah we've got a

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change 15 per year okay so the next set of indicators oh just so you know

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indicator 10 I'll discuss a little bit later because that was new this

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fiscal year and that's what got us. Okay, so number 11, assets,

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salivities to support long-term solvency. We received full points on that.

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Future debt requirements to districts assess property value. We received eight

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of the ten points. That's where we've lost two points and that just has to do

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with our property values are $5.4 billion and we in that fiscal year had 294

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million dollars in long-term liabilities which would be your the house schools any kind of debt we have

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okay and so the mathematical breakdown that to EA calculated for that we were at 4.64 and once

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we get to the 4 or lower or less than 4 we'll get the full 10 points. So as we pay down our debt and

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if we don't add to any debt we're paying it down then we'll actually have a better mathematical

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medical calculation. So maybe next year, maybe in a couple of years we should get four points on that.

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So we gave up some points to do what we needed to do.

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Yes.

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13 was removed for this fiscal year.

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14 total enrollment to total staff ratio as our enrollment has gone down.

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So has the total number of staff so our ratio we have received four points on that.

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Our pupil projections to TEA, when Dr. Lee came, we both sat down and reviewed them and we actually go with what TEA recommends for us so we don't make any suggestions or changes to that so we accept what TEA provides for us and they pay us from that or they fund us from that.

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Number 16.

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Peans made your data comparison to the annual financial report.

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That means that we got full points on that.

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And our mid-year PIMS data match, what was in our annual financial report from our extra

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launchers.

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Okay, number 17.

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Our AFR was free of material weaknesses.

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18.

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Our AFR was free of material non-compliance for grants.

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the district made the required postings on the district

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website the board meets and holds a public hearing and a

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adoption meeting in June and 21 the district did not need

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a repayment schedule for over allocation which means we

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weren't overpaid and had to pay it back. We didn't have a due to

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state. Okay so do you have any questions on those? Okay all right so the first

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indicator number 10 it has not been used by the state for over 10 years I think

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I was able to look back it was I think 12 or 13 years ago they actually had

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this indicator in place. It says the school district average less than a 10

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percent variance when comparing budgeted revenues to actual revenues for the

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last three fiscal years. We received zero points on this because we were over the 10% variance

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for the three-year average. So the reasons for this or the explanation or the while behind

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it. We are a July 1 start, so when we are building our budget and we're building our revenue side

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of it, we are looking at enrollment and ADA in May of the fiscal year that we are in projecting

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for the next year. We do the best we can and we try to be as conservative as

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possible as to not have a due to state. The three years that were reviewed in

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this calculation were the 22-23 which was the year that Dr. Lee and myself

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started and the budget had already been approved before we were here so that

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was the year that had an 18% variance and it was it's kind of a done deal.

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we really couldn't adjust it. The 2324 and the 2425 and those were the three

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years that were being evaluated in the average.

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The Certified Property

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Values, they come in at the end of July. Your home set exemption changes, I did

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some more research on this one. In 2022, your home set exemption was 40,000 and

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In 23 it jumped to 100,000, and 24 it stayed 100,000, and then in 25 it moved up to 140,000.

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And just from the change of the 100,000 to 140,000 between the 24 and the 25th school year,

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we had a $264 million loss in taxable value just for W of I state.

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That's not including the county and everyone else, just the change in that home set exemption.

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These go into play based upon Syneville's or the voter election that took place in November

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which you can anticipate in May.

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In the 2223 school year there was one regular session and four called sessions for the

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legislature and then in the 2425 there was the regular session and two called sessions and

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a lot of changes went into place for funding.

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There were 161 school districts that got hit with this one indicator.

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161 out of common in 2018.

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So with the declining enrollment in the ADA, we've tried to be very conservative.

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We've tried to make it where we, as in district, did not have a due to state.

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We've always, the last three years, have actually had to do from state.

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and we've done our LP reductions in January and February after the semester won

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attendance so that way we know what we're dealing with we send in an LP

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reduction to TEA they accept it and then we base our funding off of that. I will

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say for the 2627 school year TEA is now getting our ADA every six weeks so they

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will adjust their payments to us. So we should, there should not be a lot of due to states

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due from states for the entire public education. Just because they're now accepting all of

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our payments data every six weeks, and they're adjusting our foundation payments because

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of it.

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So is this, would we say that this is, we got zero because we were conservative and did not

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want to be paying back to the state.

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And they're going to punish us by giving us a zero because we

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wanted to be conserved, basically conserved.

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We could have been closer.

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But when you're building the budget in May and June,

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and you don't know what's going to happen in November,

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you don't know what's going to happen with the legislature.

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Did you just admit it earlier?

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I'm sorry.

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It did.

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Hey, now what makes up the 260 was it 264 when we went from the home set

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exemption of 100,000 to 140,000 and the district lost $264 million in taxable

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value. So where do we get make that? So when that drops the state is

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supposed to come back in and backfill the revenue for us through the foundation

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They do, they do, and you don't have questions on this.

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When Lee and I sat down and we built into this, we didn't know that that indicator wasn't

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played.

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So, you know, we sat down and we're like, we're going to be super conservative and we'd

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rather have money come back.

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Right.

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And so, never did we say, yeah, and that's what this board says, hey, we'd rather have that.

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But this indicator hadn't been in here for a dozen years.

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And so we said we're going to be super conservative on what we're going to bring in, and we're going

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to be pretty liberal on the expenses, and we can no longer do that.

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But I think the TA did come back on those every six weeks, and that's the reason that

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they did that, because they do not want any more of the state paying them in to the districts.

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They're putting every six weeks, and I'm looking forward to assessment on your finances,

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which is fine, but it would have been nice to know that a couple of years ago, this is coming

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And they rolled it out and then pulled it back last year.

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They were going to do this last year a little bit.

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We found out in the 24-25 and they got so much pushback

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that they didn't, that they didn't enact it,

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that they enacted it this year.

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Which we got, because in 22-23, that variance was so right,

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anyway.

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So you couldn't have that one.

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But they just don't want to owe us money at the end of the year.

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It's hard to budget for that.

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Yes.

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At that level.

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And where is the last one?

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and there's a separate one so I'm sure the legislature comes down on the Elm and says why are you

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needing more money and it's to pay out to school districts. What I find this is where I have an

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issue with this indicator it would be different if they would evaluate it through the school year but

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they're looking at our original budget adoption what our original revenues are in comparing it to year

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in what we've received. It doesn't take into consideration that throughout the year we

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do budget revisions. We evaluate, we look at our semester one attendance and we either

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adjust up or we adjust down and it does not take into consideration. You're essentially

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looking at a May or June number and comparing it to the following September, not just three

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or four months, but a year and three or four months. Just to say, this is what you budgeted

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and this is what you received and there's a variance.

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Well, yes, there has been.

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But we adjust our budget as we go through.

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And then whenever you look at the end of the year budget,

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we're maybe $1 or $2 million off

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because we have to close out June 30th,

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and then the final piece numbers go in in July

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and then we get our final payout in September.

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Well, yeah, I know that you're disappointed

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in getting the speed.

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And but I want you to know that speaking hopefully for the board that we appreciate everything

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you've done and this is not on you.

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This is something that I'm just saying that I know that you strive to make that pay every year.

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And we just feel like that this is not on you.

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this is something that the state is moving to Gold Coast once again and so

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anyway we understand. One thing I've learned that we're gonna try to do is if

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we can bring you budget revisions in October they may not be the best but we're

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gonna try to match what TDA is paying us off of and at least hopefully get that

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fall pains when it is the snapshot of October the last Friday of October that

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that's the number that they're comparing to so we're going to try to move up our

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adjustments from January, February to hopefully October, November and get them in

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there so we can maybe get this one cleared out next year if we get that 22-23

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year-old and then one more thing I was going to show you just so you kind of have

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All right.

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What we deal with, what you're looking at is the initial foundation school payment, the beginning of the year, so July, they kind of start giving us what they're going to pay us on. And then there's the final foundation payment. This is all from TEA summary of finance. And if you see how negative 10% and 23% that's the variance is that they even have just in their payment program through us.

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So let me go what Miss Kampson, I know we're all, we all want the best of the A grade.

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The B is nothing bad.

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And the reasons that they cost it were rational.

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I mean, it's not rational, I mean it's a little irrational, yes, it means you.

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Well, I mean, the decisions that we made locally.

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Oh, yeah.

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So I

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don't see, we are not in a problem like so many other districts, and it's because of

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why 100 million dollars we have done that, we are not facing those kinds of questions

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that other districts have, because you all have taken such an effort with this.

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So like Miss Camp said, let's be happy and we can defend that.

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Well, we'll shoot for the 8 next time, but yes, if this indicator had not come in and 13

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had stayed in kind of like last year, we'd have been at a 98, which would have been the

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hospital.

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So, wow.

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Yeah, this is frustrating.

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They changed the rule in the middle of the game, part of the adjust for that.

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Do you all need to explain anything else,

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questions about any of it, if you need more data

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I can get it?

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I'm good.

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I think a beat sounds just fine, because I know we have a fun balance, a healthy, fun balance

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in the budget.

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How are you going to build it?

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Paying our bills and doing an operate.

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Everyone else says we appreciate what you've done.

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We appreciate you too.

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Absolutely.

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Thank you.

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Thank you.

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Thank you for your work.

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Thank you so much.

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The thing that you really didn't want this job, we sure glad that you took it.

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You're on your own like public, do you have any comments?

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I do not.

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We can adjourn this meeting.

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I might have a few weeks or five minutes.