August 15, 2017 — Regular Meeting
Conroe ISD Board Meeting — 2017-08-15
Regular Meeting — Unofficial Notes
Based on auto-generated transcript. Not an official record.
Generated 2026-03-27 21:19 UTC
Unofficial Meeting Notes
Conroe Independent School District Board of Trustees
Regular Meeting — August 15, 2017
These are unofficial notes based on an auto-generated transcript and may contain errors or omissions.
Public Hearing: Proposed 2017-2018 Budget
Presenter: Darren Rice, Chief Financial Officer
Financial Highlights (Prior Year)
- District received a Superior rating (perfect score) from the state for fiscal year ending August 31, 2016
- Received Transparency Stars from the State Comptroller's office for traditional finances, debt obligations, and contracts/procurement
- Received a five-star rating from Texas Smart Schools — Conroe ISD is one of only three districts to receive five stars for seven consecutive years
- Ranked 5th by Education Resource Group (ERG) among the 200 largest districts for combined academic and financial performance
Tax Rate Comparison
- Current tax rate of $1.28 is 48 cents lower than the 2005-06 rate of $1.76
- 19.5 cents below the peer average tax rate
- 15 cents below the closest comparable district (Klein ISD)
General Fund Balance
- Fund balance grew from $79 million (2007) to $124 million (2016)
- Board has transferred excess fund balance to capital projects to reduce new debt
2017-2018 Budget Components
- Enrollment: Estimated increase of 1,400 new students; total estimated enrollment of 61,360 students at 94% average daily attendance
- Certified property values: $33.8 billion (increase of ~$1.4 billion / 4.25%)
- Notable: The average home appraised value in CISD actually decreased by approximately $4,000, resulting in roughly a $17/year decrease in taxes for the average homeowner
Revenue Estimates
| Source | Amount |
|--------|--------|
| Tax revenue increase (4.25% AV growth) | +$23.2M |
| State revenue from new students | +$11.5M |
| Austin yield increase (SB 1) | +$7.5M |
| Robin Hood effect loss | -$25.7M |
| Net state revenue change | -$6.7M |
| Investment income increase | +$1.7M |
| TRS on-behalf (pass-through) | +$1.5M |
| Total estimated available new funding | $19.7M |
Expenditure Increases
- Salary increases: $8.1M total
- Teacher raise of $1,125 for existing teachers; beginning salary of $52,500
- 2% for professionals, 3% for non-exempt staff (on midpoint)
- Bus driver beginning pay raised to $16/hour
- Personnel for growth: $8.4M (162.5 new employees including 105 teachers for Bradley Elementary and 1,400 new students)
- Payment budget adjustment (savings): -$3.0M
- Other expenses: $4.1M (including insurance, utilities, TRS, supplies, fuel, technology)
- Total budget increase: $17.6M (3.875% increase)
Proposed Budget Summary
| | Amount |
|--|--------|
| Projected Revenue | $473M |
| Projected Expenditures | $473M |
| Balance | $0 (Balanced Budget) |
- 89.2% of budget is payroll
- No change to tax rate: $1.04 M&O + $0.24 Debt = $1.28 total
Fund Balance
- Estimated unassigned fund balance at 8/31/17: $128.3M (27.1% of budget)
- Objective: maintain 25% (~$118.25M)
- Surplus of ~$10M proposed to be saved to support the 2018-2019 budget (opening Grand Oaks High School and a new intermediate school)
2018-2019 Pro Forma
- Potential shortfall of $13.2M projected for next year due to opening two new campuses
Public Comments
Matt Beasley — CISD graduate (Woodlands HS, Class of 2002). Expressed respect for the board and Dr. Stockton. Raised concerns about:
- Rising tax burden and budget increases for taxpayers
- His wife's son being too close to Powell Elementary to qualify for bus service, despite having other children to care for
- Requested comparison of appraised values across peer districts used in budget comparisons
No other public comments were made. Public hearing closed.
Regular Meeting
Called to order at 6:14 PM by President Bush. Quorum confirmed.
Invocation: Mr. Moore — included prayers for safety, the new school year, students, employees, and Dr. Stockton's service.
Pledges: Led by Mr. Husbands (U.S. and Texas flags)
No registered speakers for the regular meeting public comment period.
Consent Agenda (Item 3A)
Vote: Approved unanimously (no items removed)
Action/Discussion Items
Item 4A: Professional Development Waiver
Presenter: Dr. Nole
- Request to revise and renew the professional development waiver for three school years
- Previous waiver converted 2 school days to PD days (178 instructional days)
- New request: convert 3 school days to PD, resulting in 177 instructional days (teachers still work 187 days)
- Still exceeds state minimum of 75,600 instructional minutes
- Applying does not obligate use; provides flexibility for future calendars
- Recommended by District-Level Planning and Decision Making Committee
Vote: Approved unanimously
Item 4B: 2017 Preliminary STAAR Results (3-8 and End of Course)
Presenters: Dr. Phillips (Elementary) and Mr. Caker (Secondary)
Key points:
- Scores are preliminary; final results to come in later months
- Noted significant annual changes to STAAR testing (no STAAR L or STAAR A versions this year; all students take one version)
- Elementary (Grades 3-6): CISD performing at least 10% higher than the state in reading, math, and science across all tested grades; writing was close to 10% above
- Secondary (Grades 7-8): Reading, math, writing, science, and social studies all well ahead of state averages
- End of Course: Algebra I — 89%; Biology — 91%; U.S. History — 97%; English I and II above state but identified as areas for continued improvement
Informational item — no vote required
Item 4C: Elementary and Secondary Summer School Report
Presenters: Dr. Phillips and Mr. Caker
Elementary Programs (2,991 students served at 8 locations):
- Passport to Learning (Title I intervention): 1,162 students
- Bilingual Program (Pre-K through 2nd grade): 891 students
- ESL Program: 218 students
- Reading/Math Camp (STAAR intervention): 435 students
- Kid Quest Enrichment (robotics): 83 students
- Extended School Year (special education): 52 students
- Early Start (NEW pilot): 150 students at Runyan and Anderson — held two weeks before school started to combat summer regression and build teacher-student relationships
- Total elementary expenditures: ~$1.2M (funded by $927K state/federal, plus local and tuition funds)
- Staff: 248 teachers, 46 paraprofessionals, 9 administrators
Secondary Programs (~2,500 students served at 5 locations):
- Credit recovery, initial credit, acceleration, ESL Academy, GED, and Extended School Year
- 350 initial high school credits earned; 552 recovery credits earned
- 1,647 students in person at five sites; 120+ teachers and staff
- Tuition-funded model helps offset costs
Combined totals: ~4,500 students across 13 locations
Board Comments:
- Mr. Sanders commended intervention programs and the Early Start pilot
- Board member noted the district serves students speaking 75 different languages
Informational item — no vote required
Item 5A: Presentation of Submitted Names for Flex School 18
Presenter: Dr. Nole
- Flex School 18 is a new elementary campus in the Woodson's Reserve subdivision area, scheduled to open August 2018
- Over 1,000 name submissions received via the district website
- Full unedited list was presented to the board
- Board will vote on a name at the September meeting
- Dr. Stockton's statement: He respectfully asked that his name be removed from this list and any future naming lists, stating he has received more recognition than he needs or deserves. The board acknowledged the request but noted "we make no promises."
No vote taken — informational presentation
Item 5B: Design-Build Delivery Method for Stadium Scoreboard Replacement
Presenter: Easy Foster
- Stadium scoreboards reaching end of lifecycle
- District recommends design-build project delivery method — eliminates need for intermediary contractor markup, leverages district's construction management expertise
- Next step: RFQ process for design builders, with selection brought back to board for approval
Vote: Approved unanimously
Item 5C: Capital Projects Update
Presenter: Easy Foster
Completed/Near-Complete Projects:
- Network Operations Center: Data center transition nearly complete; old data center being dismantled for future office space
- Lifecycle projects: Completed parking lots (Creighton), gym/cafeteria floors (Gladys, Giesinger), roof (Haley), tennis courts (Conroe HS, College Park), track resurfacing (Oak Ridge HS), boiler replacement (Crier Intermediate), chemistry fume hoods (Hawk)
- Knox Junior High: New science classrooms set up and ready for first day of school; contractor on site to ensure smooth opening
- Bradley Elementary: Opening for students for the first time on August 16; contractor on site to monitor
- Safety & Security Projects: Front entry security upgrades completed at Armstrong, Creighton, Haley, Hawk, Knox, Travis, San Jacinto, Oak Ridge Elementary, and Wilkerson — all functional for school opening
Major Construction In Progress:
- Grand Oaks High School: On schedule for August 2018 opening; building structure and athletic facilities progressing well
- Flex School 18: On schedule for August 2018 opening; paving and steel erection underway
- Conroe High School renovation: On schedule for December 2019 completion; Phase 1 infrastructure complete (bus loop relocation, utilities, cooling systems); security measures in place for student traffic during construction; contractor presence for first day of school
Informational item — no vote required
Item 6A: Award of RFP 17-01-01A — Contracted Educational Services
Presenter: Darren Rice
- Award to 12 vendors for professional development and educational consulting services
- Estimated annual expenditure: $180,000
- Part of recurring monthly procurement process (88 total vendors; ~$1.5M annual spend)
Vote: Approved unanimously
Item 6B: Award of RFP 17-05-04 — Water Treatment Services
Presenter: Darren Rice
- Award to Kim Aqua, Inc. for water treatment services and supplies
- Estimated annual expenditure: $150,000
- Contract through August 31, 2018, with option for two one-year renewals
- 23 vendors solicited; 3 responded
- Treatment is for internal pipe protection (all district facilities), not drinking water
Vote: Approved unanimously
Item 6C: Approval of 2017-2018 Official School Budget
Presenter: Darren Rice
- Budget as presented in public hearing; recommended by District-Level Planning and Decision Making Committee
- Includes General Fund, Child Nutrition Fund, and Debt Service Fund
Significant Board Discussion:
- President Bush emphasized that state funding has decreased from $121M in 2009-2010 to less than $100M today, while enrollment increased ~24%. State funding now represents only 25% of the budget. If funded at the same 40% state share as 2009, the district would receive $80M more from the state.
- Mr. Sanders stated CISD is likely "the most financially efficient school district in the state of Texas, and probably in the United States." Emphasized the budget increase is driven by growth, not inefficiency. Noted the district spent $33M in cash on capital projects to avoid additional debt.
- President Bush noted the district spends approximately $6,200 per student, consistently below the state average, indicating cost efficiency. Argued the 3.875% budget increase is entirely attributable to enrollment growth.
- Board members commended surrounding districts raising tax rates while CISD maintains its rate, and noted school finance cannot be compared to other local government entities.
- Dr. Stockton commended the board for 14-15 years of consistency on tax rate and financial efficiency.
Vote: Approved unanimously
Item 6D: Adopt 2017 Tax Rate
Presenter: Darren Rice
- Tax rate: $1.04 M&O + $0.24 Debt Service = $1.28 per $100 valuation
- Same total rate as prior year
- Required statutory language phrases it as a 2.94% "effective increase" due to assessed value changes
President Bush noted for the record: The rate is not increasing; the language is required because of assessed value changes. The average CISD home actually saw a valuation decrease. The increase in total assessed values is largely from new property coming online.
Motion language (as required by law): "I move that the property tax rate be increased by the adoption of a tax rate of $1.28 per $100, which is effectively a 2.94% increase in the tax rate."
Vote: Approved unanimously
Item 6E: Transfer of Unassigned Fund Balance to Debt Service Fund
Presenter: Darren Rice
- Transfer of $16 million from unassigned general fund balance to debt service fund
- Required to service debt and minimize the tax rate
- Post-transfer fund balance estimated at approximately 27% of budget
Vote: Approved unanimously
Item 6F: Chapter 41 — Property Wealth Reduction Option Selection
Presenter: Darren Rice
- CISD's wealth per WADA estimated at $453,330 (between the two equalized wealth levels of $319,500 and $514,000)
- District not required to pay recapture at current levels
- TEA recommends Option 3 (Purchase of Attendance Credits from the State) as the least extreme option
- This is an administrative process given CISD's current wealth position
Vote: Approved unanimously
Item 6G: Authorization of Refunding Bond Issuance
Presenters: Darren Rice and John Roebuck (District Financial Advisor); Tom Sage (Andrew Skirth) also present
Key Details:
- Issuance of approximately $96.4 million in refunding bonds (Conroe ISD Unlimited Tax School Refunding Bonds, Series 2017)
- Estimated debt service savings: ~$10.5 million (8.3% savings on projected debt service); current market conditions suggest savings closer to $11M+
- Parameter order not to exceed $135M in principal; minimum 5% present value savings required
- No extension of maturity — purely a cost-savings refinancing
- Permanent School Fund (PSF) guarantee in place
- Planned sale date: Tuesday, August 22, 2017; closing: September 21, 2017
Credit Rating Update:
- Current ratings: AA+ (S&P) and Aa1 (Moody's) — one notch below AAA
- Rating calls with both agencies were described as "very positive"
- Moody's analyst reportedly said he didn't see why the district wasn't rated AAA
- Results expected later in the week; no promises made but optimism expressed
- Note: No school district currently has a AAA rating from S&P (without PSF guarantee)
Board comment: Mr. Sanders noted the district's strong bond rating is a product of consistent board efforts to reduce debt funding costs.
Vote: Approved unanimously
Item 6H: Financial Reports (July 2017)
Presenter: Darren Rice
General Fund:
- Total cash and investments: $185.7 million
- Projected fund balance increase of $9.5M (may increase slightly through audit process)
Debt Service Fund: $4.6M increase (after $16M transfer)
Child Nutrition Fund: ~$800K increase projected
2015 Bond Referendum Status:
- Expended/encumbered: $302.9M
- Estimate to complete: $212M
- Projected program total: $515M
- Contingency: $5.4M
- Grand Oaks High School: Project forecast decreased by $2M due to identified savings (mass grading, masonry, engineering, etc.)
Self-Funded Insurance:
- July: $3.6M revenue, $2.7M expenses (includes $1.06M Memorial Hermann rebate)
- Net positive: $910K for the month
- August claims through the 15th already at $2.5M
- Wellness center: 375 visits in July
Investments:
- Combined portfolio yield: 1.18% (75-day WAM)
- Benchmark (90-day T-bill): 1.06%
Informational item — no vote required
Item 7A: Executive Session
Not needed; skipped.
Item 9A: Personnel Matter — Rodriguez Hearing
Presenter: Miss Godfrey (General Counsel)
- In June, the board approved the Superintendent's recommendation for proposed non-renewal/termination of term contract teacher M. Rodriguez
- Rodriguez requested a hearing as allowed under Chapter 21
- A hearing officer has been appointed; district is prepared to go to hearing
- Board authorized Dr. Stockton to negotiate and execute a settlement/resignation and release agreement if the opportunity presents itself before the hearing
Vote: Approved unanimously
Meeting Adjourned
Time: 7:24 PM
These notes are unofficial and based on an auto-generated transcript. They are intended to help the public understand what occurred at the meeting. For official minutes, please consult the Conroe ISD Board of Trustees.