August 20, 2019 — Regular Meeting

Name: August 20, 2019 — Regular Meeting
Start: 2019-08-20

Conroe Independent School District Board of Trustees — Regular Meeting

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Conroe ISD Board Meeting — 2019-08-20

Regular Meeting — Unofficial Notes

Based on auto-generated transcript. Not an official record.

Generated 2026-03-27 22:08 UTC

Unofficial Meeting Notes

Conroe Independent School District Board of Trustees

Regular Meeting — August 20, 2019

These are unofficial notes based on an auto-generated transcript and may contain errors or omissions.

Budget Public Hearing

Presenter: Darrin Rice, Chief Financial Officer

Financial Highlights & District Awards

CISD received a Superior rating (highest possible) on the Financial Integrity Rating System of Texas (FIRST), scoring 100 out of 100
District received transparency awards from the State Comptroller's Office for traditional finances, debt obligations, and contract/procurement
CISD is one of only two districts out of 1,100+ to receive five stars on the Texas Smart Schools (formerly FAST) report for ten consecutive years
Ranked 2nd in the state among the 200 largest districts by the Education Resources Group (ERG) for combined academic and financial performance
District spends $7,965 per student, which is $916 less than the state average of $8,881
63.75% of budget spent on instruction vs. 57.69% state average
Central administration costs at 1.79% of budget vs. 4.86% state average

House Bill 3 (86th Texas Legislature) Impacts

Increases basic allotment from $5,140 to $6,160 per student
Requires full-day pre-K for eligible 4-year-olds (estimated cost: $5 million plus ~50 additional classrooms needed)
Moves to use of current year property values for state funding calculations
Provides 7-cent compression on the Tier 1 M&O tax rate
Prohibits school districts from increasing the M&O tax rate to create a surplus to buy down debt service — this eliminates CISD's longstanding practice of transferring ~$10 million annually from general fund to debt service

Key Budget Drivers

Enrollment: Projected increase of 1,350 students to a total of 64,187; using 94.3% ADA rate
Property values: Increased 6.56%, adding ~$2.34 billion for a total of $38.1 billion
Mr. Rice demonstrated that regardless of property value growth (5.5%, 6.56%, or 8%), the state reduces its funding dollar-for-dollar to offset local tax revenue increases, resulting in the same total available funding of $47.35 million for the district
Quoted State Comptroller Glenn Hegar stating that "rising property tax collections are actually reducing the state share of the total bill"

General Fund Balance

Projected fund balance at end of FY2019: $139.6 million
Includes $15 million identified by the board for technology purchases to support the November 2019 bond referendum
Unassigned fund balance at ~24.4% of annual budget (target range: 20–25%)

Proposed Tax Rate

|---|---|---|---|

| Maintenance & Operations | $1.04 | $0.97 | -$0.07 (state compression) |

| Debt Service | $0.24 | $0.26 | +$0.02 (due to HB3 prohibition on M&O transfers) |

| Total | $1.28 | $1.23 | -$0.05 |

The proposed rate of $1.23 is below the effective tax rate of $1.2344
CISD has the second-lowest tax rate in the Greater Houston area
14.7 cents below the average of peer districts (Katy, Spring, Humble, Cy-Fair, Klein, Fort Bend)
Debt service rate of $0.26 certified by Tammy McCray as required to service existing voter-approved debt from 2008 and 2015 bond referendums

Revenue Summary (2019-20)

Total estimated new available funding: $53.35 million (regardless of AV growth percentage)
Tax revenue increase: $5.9 million (includes $10M previously transferred to debt service)
State revenue increase: $41.45 million (based on student growth and HB3)
Investment income increase: $1 million
TRS in-kind funds: $5 million (required accounting entry)

Expenditure Summary (2019-20)

Salary Increases — Total: $14.05 million

Teachers, librarians, nurses, counselors: 3.5% raise plus $500 adjustment for 6+ years experience ($9.6M)
Pay grades A-E levels 1-3: 3.5% raise; levels 4-10: 3% raise ($1.75M)
Administrative/business: 3% raise ($266K)
Administrative support, instructional support, auxiliary, police: 3.5% raise
New teacher starting salary: $55,500

New Positions — Total: 209.4 positions ($10.98 million)

153 campus positions (107 teachers, 10 administrators, 9 professionals, 27 paraprofessionals)
56.4 support positions (transportation, police, maintenance, custodial)

Other Expenditures:

HB3 program requirements (pre-K, CTE, bilingual, dyslexia, safety/security): $7.29M
Utilities, insurance, fuel, supplies: $1.81M
TRS in-kind offset: $5M
Capital maintenance fund transfer: $10 million (Board elected to fund $50M over 5 years, avoiding ~$40M in interest costs by paying maintenance items from cash rather than bonds)
Potential employee retention stipend: $5M (contingent on budget performance — ~$625/employee)

Total Proposed Budget: $549,580,294

Revenue: $555.62M
Expenditures: $549.58M
Estimated surplus: ~$6.04 million (to be reserved for FY2021 when a new junior high opens; pro forma shows potential $6.56M deficit that year)

Budget Composition

Payroll: 87.6%
Contracted services: 5%
Supplies/materials: 4.2%
Equipment/other: 1.4%
Capital maintenance fund: 1.8%

Public Comment — Budget Hearing

Eric Yollick — Woodlands resident. Argued the board should adopt at or below the effective tax rate ($1.2344). Stated the presentation omitted discussion of the effective tax rate. Shared that he walked through neighborhoods near Booker T. Washington Jr. High and spoke with residents struggling to pay property taxes on modestly valued homes. Argued that rising taxes are forcing parents to work more, reducing family time. Urged real tax relief beyond what the legislature mandated.

Joshua Jairus — Parent of two at Birnham Woods Elementary. Echoed concerns about maintaining at minimum the effective tax rate. Said taxpayers who own property will be paying more despite legislative promises of tax relief. Stated the legislature made property tax relief a priority and the district is "washing it away."

Kerry Freemeyer — Taxpayer and educator in CISD. Commended the finance department for their transparency and presentation. Said CISD is "by far without a doubt the best place to live" compared to other districts in the area.

Regular Meeting Called to Order — 6:33 PM

Board Members Present (Quorum confirmed): Maurer, Husbands, Kidd, Williams (President), Hubert, Sanders, Inman

Item 1: Invocation and Pledge

Mr. Kidd delivered the invocation

Item 2: Awards and Recognition

Texas Mutual Insurance Company Donation: Lisa Evans and Peppa Gates from Texas Mutual presented a check for $65,126 to support safety materials for Career and Technical Education (CTE) classrooms across the district, in partnership with Sol's Insurance Agency/Brokership
Texas Mutual received a PIE Award (Patrons Influencing Education) from the board
CTE department representative expressed gratitude, noting the donation allows full equipping of programs with personal protective equipment for safe learning environments; CISD is the first district to receive this support

Public Comment — Regular Meeting

Kerry Freemeyer — Introduced herself as newly elected president of TSTA (Texas State Teachers Association) Conroe chapter/NEA representative. Read the NEA's vision, mission, and core values statements emphasizing public education, equal opportunity, democracy, professionalism, partnership, and collective action. Introduced the TSTA Conroe executive board: Christy Swoboda (VP), Lori Boughs (Secretary), Danny Morris (ESP representative at-large, not present).

Joshua Jairus — Spoke about school lunch access for non-custodial parents. Referenced HB 3145 which went into effect allowing non-custodial parents to attend school lunches. Expressed disappointment that the board had previously prevented non-custodial parents from having lunch with their children. Noted that the district had allowed mentors/strangers to come in while barring parents. Distributed information about Wendy Perry, a TEA-approved presenter who provides seminars on handling divorced/separated parent situations in schools. Urged the district to address this issue more proactively.

Michael Clifton — Spoke in support of Joshua Jairus's school lunch issue. Stated the board "failed miserably" on this issue and noted it took both chambers of the Texas Legislature to unanimously pass a bill addressing the situation. Said this demonstrated that no legislator agreed with the board's prior position.

Eric Yollick — (Name called but no additional testimony recorded in transcript beyond budget hearing comments)

Lisa Evans — (Texas Mutual presentation, covered above under Awards)

Consent Agenda (Item 3)

Item 3H removed from consent agenda at the request of Mr. Hubert
Items 3A–3G: Approved as presented

- Vote: Passed unanimously (voice vote)

Item 3H (Pulled for Separate Discussion)

Consider Award of RFP 1808-02-D — Supplemental contracted education services and professional development services (over $75,000)
Mr. Hubert explained he pulled it due to the size of the bid and wanted brief clarification
Confirmed this was a supplement to a previously approved contract covering curriculum, A-Start, and special education departments — not a new award
Vote: Passed unanimously (voice vote)

Item 4: Curriculum & Instruction — Summer School Report

Presenters: Dr. Phillips and Mr. Greg Colson

Elementary Summer School

Coordinated by Dr. Shelley Winkler
7 programs offered at 8 locations with 269 teachers, 48 paraprofessionals, 11 administrators
Total elementary students served: 2,646

| Program | Students | Details |

|---|---|---|

| Passport to Learning (Title I) | 1,104 | K-6, half-day, June 5-27 |

| Tuition-based | 50 | K-6, half-day |

| Bilingual | 763 | Pre-K through 2nd grade, full day (federal law requires Pre-K/K; CISD extends to 1st-2nd) |

| ESL | 247 | Non-Spanish/English speakers, full day |

| Reading/Math Camp | 344 | 5th grade STAAR retake opportunity, half-day |

| Kid Quest Enrichment (Robotics) | 73 | Tuition-based, two sessions |

| Extended School Year (Special Ed) | 65 | Full day, two sessions |

Elementary Funding:

Title I: $626,000
Title III: $179,000
Title IV: $68,000
State LEP reimbursement: $52,000
Local funds supplemented bilingual, reading/math camp, and special ed
Tuition collected: $16,888

Secondary Summer School

3 locations: McCullough Jr. High, Washington Jr. High, Oak Ridge High School
Programs: initial credit, credit recovery, online accelerated math (Edgenuity), STAAR Academy (8th grade), GED (English and Spanish), ESL Academy, Extended School Year

Secondary Results:

1,566 total students served with 221 teachers, 28 paraprofessionals, 3 counselors, 5 nurses, 4 instructional coaches, 10 administrators
794 students attended junior high/high school programs taking 1,408 courses
176 students used online accelerated math (up ~50 from prior year)
438 students attended junior high summer school (increase over prior year)
58 students in extended school year; 17 in GED classes
83 students in ESL Academy (significant increase from prior year)
98% of high school courses completed successfully
356 initial credits earned; 521 repeat/recovery credits earned

Secondary Funding:

Title/federal funds: $11,724 (ESL academies)
Local: $75,923 (special ed, STAAR, tuition-based)
Tuition-based expenses: $330,935; tuition collected: $324,044

Grand Total K-12: 4,212 students served at 12 locations

Item 5A: Administration — School-Based Mental Health Clinics Update

Presenter: Representative from Tri-County Behavioral Healthcare (name not clearly captured)

Operated school-based mental health clinics at Armstrong Elementary and Grangeland Intermediate during 2018-19
Impacted over 100 students across both campuses
Positive outcomes included reduced school office visits (especially at intermediate level) and teacher reports of students using coping skills learned in sessions
Parents were positive; students required parental consent; confidentiality was maintained through consent-based information sharing
Expanding to two additional schools in the Caney Creek feeder system for 2019-20:

- Ben Milam Elementary (feeds Grangeland Intermediate)

- Moorhead Junior High (~50 students transitioned from Grangeland)

Will leverage Lone Star Family Health Center on-site clinic for cooperative physical/mental health services
Cost: Approximately $53,000 loss per campus in Year 1 (at no cost to CISD); funded through grants and expanded therapy billing
Exploring sustainability funding through Houston Methodist Foundation and other grant opportunities
Other school districts have expressed interest in replicating the model
Board members expressed strong support, noting the program supports classroom management, integrated safety/security, early intervention for at-risk students, and expanded counseling capacity

Item 5B: Capital Improvement Updates

Presenter: Mr. Foster

Suchma Elementary

Opened successfully for first day of school
Building complete; roads open around campus; county still working on road connection at FM 2432

Austin Elementary Renovation

Older portions of building removed from service after school ended in May
Interior classrooms coming together; contractor finishing details in evenings/weekends
Building significantly more finished for first day of school

Stockton Junior High (New Construction)

Scheduled to open August 2020
Construction on track: exterior masonry underway, interior walls being built
Athletic fields under construction — track visible; natural grass football field planted (needs full year to establish)
Solar photovoltaic field expected to produce power by end of September
Building will finish last year of construction partially powered by on-site solar

Conroe High School Renovation

Building addition opened previous winter break
Second floor renovation completed and opened for first day of school
Now moving to first floor/ground floor office renovations through end of December
Scheduled to complete and open when students return from winter break in January

Item 6A: Insurance Award

RFP 1904-04 — Property, Boiler & Machinery, Crime, and Active Shooter/Malicious Acts Insurance

Recommended award to Sol's Insurance for annual premium of $1,021,302
Effective September 1, 2019 to September 1, 2020; option to renew annually for 2 additional years (through 2022)
Three proposals received (one was a no-bid)
Joe Blasi (McGriff, Seibels & Williams) conducted analysis
Key changes from prior year:

- Loss limit reduced from $750M to $500M to mitigate cost increases

- Flood deductible increased on Gladys Elementary; 11 campuses now in high-hazard flood zones

- Flood limit for those locations decreased to $10M

- National Flood Insurance Policy (NFIP) purchased on one campus (~$500K max, erodes deductible)

- Market described as "very limited" post-Harvey

Vote: Passed unanimously (voice vote)

Item 6B: Budget Adoption

Motion to approve the 2019-2020 official school budget of $549,580,294 as presented in public hearing and recommended by the District Level Planning and Decision-Making Committee
Brief discussion: Mr. Inman raised concern about ensuring actual tax bill relief for residents, noting constituent complaints about rising tax bills; was advised the tax rate would be addressed in the next item
Vote: Passed unanimously (voice vote)

Item 6C: Tax Rate Adoption

Mr. Rice presented a revised tax rate proposal that improved upon the budget hearing presentation:

The district identified $1,749,657 from debt service fund balance to supplement the debt service tax rate
This allowed reducing the proposed debt service rate from $0.265 to $0.26
Mr. Rice acknowledged this approach is "more aggressive but not irresponsible," developed with the district's financial adviser
Specifically thanked Mr. Skeeter Hubert for direct assistance

Final Adopted Tax Rate:

| Component | Rate |

|---|---|

| Maintenance & Operations | $0.97 |

| Debt Service | $0.26 |

| Total | $1.23 |

5 cents lower than the prior year's $1.28
Below the effective tax rate of $1.2344 (meaning actual tax relief for existing property owners)
Mr. Rice confirmed the proposed November bond election would not require an increase to the debt service tax rate based on forecasting models

Board Discussion:

President Williams commended the board, administration, and finance department for achieving a rate below the effective tax rate, delivering actual tax bill relief beyond what the state mandated
Praised CISD's financial transparency and stewardship
Noted this is the third tax rate reduction during his tenure on the board
Mr. Rice confirmed no impact from the proposed bond election on future tax rates

Vote: Passed unanimously (voice vote)

Item 6D: Financial Statements — Month of July

Presenter: Mr. Rice

General Fund Cash & Investments:

| Category | Amount |

|---|---|

| Cash on hand | $14,100 |

| Bank deposits | $1,329,000 |

| State investment pool | $32M |

| Woodforest National Bank | $120.2M |

| TCG Investment Advisors (longer-term) | $51.2M |

| Total | $204.8M |

2015 Bond Referendum Status:

Nearly complete; only Stockton Junior High and small technology purchases remaining
Estimated to complete with $17.47M spent and ~$9.5M remaining contingency

Self-Funded Insurance:

Total revenues: $45.5M
Total expenditures: $44.3M
Revenues over expenditures: $1.2M
Wellness center averaging ~525 employee visits/month
Mr. Rice noted August will be a challenging month; already over $3M in claims by August 20th; expects it to be "close" but manageable with the $1.2M cushion

Investment Portfolio:

Par value: $346.5M
Pool yield: 2.446%
Woodforest National Bank: 2.37%
TCG Investment Advisors: 2.214%
Combined portfolio WAM: 59 days, yielding 2.377%
Discussion noted that as interest rates decline, pool yields will drop while longer-term TCG investments will benefit from locked-in rates

Executive Session — 7:39 PM

Board convened in closed session under Texas Government Code sections 551.071, 551.074, and 551.0821 for:

1. Complaint appeal hearing — Parents (Miss LJ and Mr. DR) regarding a staff member in the transportation department (closed due to employee personnel and student privacy matters)

2. Consultation with board attorney

Action Following Executive Session:

Motion: The board voted to uphold the Level 2 hearing officer's decision but expressed concern about the "appearance of the behavior" of the employee (Miss Kramer). The board directed further conversations with the superintendent regarding this employee, stating "her actions are not in keeping with the culture of CISD."

Vote: Passed unanimously (voice vote)
The district will send written notice of the decision to the parties

Key Takeaways

1. Budget adopted at $549.58M with a projected $6.04M surplus reserved for FY2021 needs

2. Tax rate reduced 5 cents to $1.23 per $100 valuation — below the effective tax rate, providing actual tax bill relief to property owners

3. HB3 impacts significantly restructured district finances, particularly the prohibition on M&O-to-debt-service transfers (~$10M annual impact)

4. Capital maintenance fund established at $10M/year for 5 years ($50M total), avoiding ~$40M in interest costs

5. School-based mental health clinics expanding from 2 to 4 campuses

6. Insurance market remains challenging post-Hurricane Harvey with limited competition

7. November bond election confirmed to have no projected impact on future debt service tax rate

8. Summer school served 4,212 students district-wide across 12 locations