February 1, 2022 — Regular Meeting
Conroe ISD Board Meeting — 2022-02-01
Regular Meeting — Unofficial Notes
Based on auto-generated transcript. Not an official record.
Generated 2026-03-28 14:16 UTC
Unofficial Meeting Notes
Conroe Independent School District Board Workshop
February 1, 2022
These are unofficial notes based on an auto-generated transcript of the board workshop. They are intended to help the public understand what occurred during the meeting and should not be considered official minutes.
Public Comment
No members of the public signed up to address the board.
Item 2: Bond Sale Results – Series 2022
Presenter: Darren Rice, Chief Financial Officer
Key Points:
- This was the third of five scheduled bond sales from the 2019 bond referendum, generating $177 million in proceeds
- Remaining scheduled sales: $105 million in 2023 and $59.6 million in 2024
- Bonds hit the market on January 11 at near historic lows on the Bond Buyer Index (2.12% vs. historic low of 2.02%)
- By 9:20 a.m. (20 minutes after market open), total commitment was achieved; some tranches were oversold by 2.5 times, enabling negotiation of even lower rates
- All-cost true interest rate: 2.332%
- Average bond life: 16.72 years; longest bond: 25 years
- Total district debt service requirement now stands at $2.193 billion (spanning 2022–2047)
- Bond closing scheduled for February 8, 2022
Board Discussion:
- Debt-to-value ratio has improved from approximately 5% fifteen years ago to approximately 3.8% currently, well below the 10% standard
- District's bond portfolio was described as straightforward ("straight bonds"), compared favorably to other districts that use more complex/risky structures (variable rate debt, capital appreciation bonds)
- Board members discussed why bonds are used rather than paying cash for buildings — buildings have 50-60 year lifespans, and debt allows future residents to share the cost
- Average age of CISD buildings: 33 years (Texas statewide average is over 40 years)
- Discussion of rising construction costs: A new high school estimated at ~$200 million (Grand Oaks was ~$150 million); elementary school costs increased $6 million in one year for identical buildings; the bond program's built-in cost escalation has kept the district on budget
Item 3: Health Plan Update
Presenter: Darren Rice
Financial Status:
- January results: Revenues $4.5M, Expenses $4.3M (net positive ~$300K for the month)
- Plan year to date: Revenues $22.5M, Expenses $25.2M (deficit of ~$2.7 million)
- Current fund balance: ~$7 million (described as strong)
- The board had previously approved using fund balance to absorb an anticipated one-time surge in claims (~$2.5 million) from deferred elective surgeries during COVID
Wellness Center:
- Average participation: 338 visits (needs to be 500+ to break even)
- Annual cost: approximately $600,000 (physician, staff costs; district provides building/infrastructure)
- Conroe satellite clinic has been closed; prior attempts to sustain Conroe clinics were unsuccessful
- Board discussion about viability of the wellness center vs. telehealth options — telehealth was made free to employees last year and usage has increased
- District exploring contracts with local urgent care facilities for discounted rates during daytime hours
Driving Factors for Health Plan Costs:
- Surge in elective surgeries deferred from COVID period
- Individuals with chronic conditions who delayed care becoming sicker
- Noticeable increase in cancer spend across all of Gallagher's clients
- Large claimants costing more and staying in hospitals longer
- Delta variant drove significant claims; Omicron less severe but more contagious
- COVID testing driving up lab/pharmacy spend
- New legislation allowing free OTC COVID tests to be reimbursed through the plan
Health Services Admin RFP:
- Currently in Year 3 of a 3-year agreement with United Healthcare
- Gallagher recommended going to bid for potentially better admin fee rates
- United Healthcare declined to renegotiate fees
- RFP bids received from: United Healthcare, Cigna, Blue Cross Blue Shield, Aetna, and Healthcare Highway
- Evaluation timeline:
- Evaluation committee (7 members, subset of Employee Benefits Committee) reviewing bids beginning February 2
- Finalists to present to full Employee Benefits Committee in February
- Recommendation to board at March board meeting
- September 1, 2022 effective date
- This is for admin services only (not pharmacy, which is separate through CoreTrust/Optum)
- Plan design (Kelsey, Charter/Memorial Hermann ACO structure) expected to remain similar regardless of administrator selected
Item 4: Preliminary 2022-2023 Budget Overview
Presenter: Darren Rice and Dr. Curtis Null (Superintendent)
Legislative Update:
- Senate Bill 1 (from special session): Permanent increase to mandatory homestead exemption from $25,000 to $40,000 (effective tax year 2022)
- State is holding districts harmless, but on the M&O side, CISD sees net zero benefit due to HB 3 formula
- Debt service side: approximately $400,000 in additional state funding
- Hold harmless is stated as perpetual but historically has been repealed in subsequent legislative sessions (2015 increase hold harmless was repealed in 2019)
Budget Framework:
Revenue Side:
| Item | Amount |
|------|--------|
| Beginning Revenue | $586.12M |
| Local Revenue Increase (capped at 2.5%) | +$10.37M |
| State Funding Decrease (Robin Hood/HB 3) | -$10.37M |
| Net from property value increase | $0 |
| State Funding from Student Growth | +$23.74M |
| Teacher Incentive Allotment (Year 1) | +$1.5M |
| TRS In-Kind Funds | +$1.75M |
| Estimated Total Revenue | $613.11M |
Expenditure Side:
| Item | Amount |
|------|--------|
| Beginning Expenditure | $596.12M |
| Salary Increase (~3.5%) | +$12.5M |
| Additional Personnel for Growth | +$10M |
| Teacher Incentive Allotment (corresponding expense) | +$1.5M |
| Backing out Retention Stipend (one-time, prior year) | -$10M |
| Backing out additional 2,900 students (budget adjustment) | +$2.99M |
| Estimated Total Expenditures | $613.11M |
Result: Balanced preliminary budget at $613.11 million
Critical Issues Discussed:
Average Daily Attendance (ADA) Funding Challenge:
- District must staff based on 100% enrollment but receives state funding based on ADA
- Budgeted at 94% ADA (historical norm), currently tracking at ~92%
- Every 1% drop = ~$4 million in lost revenue; 2% shortfall = $8 million gap
- Only two states still fund on ADA
- Dr. Null has been actively lobbying legislators to move to enrollment-based funding
- TEA considering broader relief beyond the current first-six-weeks hold harmless
- Estimated enrollment for 2022-23: 69,187 students (using 1,500 growth projection)
Projected Tax Rate for 2022-23: $1.1553 (down from $1.176)
- M&O: $0.8953
- Debt Service: $0.26 (unchanged)
- CISD remains third lowest tax rate in greater Houston area
Future Budget Warning:
- In fiscal year 2024-25, with no legislative changes, the district projects an ~$11 million deficit that would compound annually due to no mechanism for raises without additional state funding
Compensation Plan Discussion (Board Guidance Sought):
Current approach: 3.5% across-the-board raises (~$12.5M)
Key question posed to board: Should the district shift to a weighted approach favoring hourly/lower-wage employees who face the most competition from private sector?
Board feedback/positions expressed:
- Board Member Williams: Suggested a 70/30 split — 70% of funds directed to hourly employees, 30% to teachers/professional staff
- Board Member Swagman: Emphasized need for market-competitive wages, not just comparison to other school districts; need to compete with restaurants, retail, etc.
- Board Member Herman/Truman: Requested data on turnover rates for hourly employees; emphasized retention value vs. constant retraining costs
- Multiple board members agreed the district should be aggressive on hourly wages even if it means teachers receive closer to 3% rather than 3.5%
- Dr. Null noted that about 4,500 employees are teachers (over half); hourly pool is ~70 people, so significant hourly increases may only modestly reduce teacher raise percentages
- Board directed staff to have TASB conduct a market-based salary survey (including private sector comparisons, not just other school districts) and present scenarios at the April workshop
Retention Stipend:
- Not built into preliminary budget
- Could be funded from fund balance later in the year if budget permits
- This year's $1,500 flat stipend cost ~$10 million
- Board expressed interest in potentially continuing the flat-rate approach (benefits lower earners by percentage)
Teacher Incentive Allotment (TIA):
- ~245 teachers eligible/participating
- Estimated $1.5M revenue; 90% must go to teacher compensation
- This is the measurement year; actual payouts begin in 2023-24
- TIA is in addition to regular raises
Staffing Formula Changes Under Consideration:
| Level | Current Ratio | Proposed Ratio | Estimated Cost |
|-------|--------------|----------------|----------------|
| Pre-K | 22:1 | 18:1 | $1.3M |
| Intermediate (5th-6th) | 26:1 | 25:1 | $600K |
Fund Balance:
- Current unassigned fund balance: $171.4 million
- Target (25% of budget): $149 million
- Available above target: $22.4 million
- Potential uses: retention stipends, capital maintenance, land purchases
- Capital maintenance fund: $60 million ($50M earmarked for 2019 bond support; $10M available for separate projects)
Employee Leave:
- 10 days total leave (5 state + 5 local) — permanent going forward
- New: Employees can now bank local days (previously only state days could be banked)
- Extended sick leave (half-dock) will remain through next year, providing a "double parachute" during COVID era
Budget Timeline:
| Date | Action |
|------|--------|
| April 5 | Board workshop: TASB compensation study, benefits plan, budget update |
| June 7 | Board workshop (only if needed) |
| July 13 | District-level planning committee presentation |
| July 19 | Board meeting: budget recommendation |
| August 2 | First public hearing |
| August 16 | Second public hearing + budget/tax rate adoption |
Item 5: Student Enrollment Growth and Capacity Overview
Presenter: Dr. Chris Hines
District-Wide Capacity: 97% (including portable classrooms)
Key Statistics:
- Current enrollment: ~68,376 (as of late January 2022)
- District grew by 3,124 students this year (vs. typical 1,500/year)
- Likely to pass 75,000 students within five years
- 203 portable classroom buildings in use across the district (~4,400 student capacity, equivalent to ~4 elementary schools)
- A new demographic study is needed (last one was 2018)
High Schools:
| Campus | Notable Status |
|--------|---------------|
| Grand Oaks HS | Projected at 3,650 next year (capacity 3,200); already past 2028 projections |
| Conroe HS | Combined 9-12 projected near 5,100 next year; projected ~7,000 by 2028 |
| Woodlands HS | 103% capacity (even with new 200-seat wing) |
| College Park HS | Over capacity (even with new 200-seat wing; portables removed) |
| Oak Ridge HS | Under construction; appears to have room but space unavailable due to construction |
| Caney Creek HS | Currently ~80% but projected 125% by 2028 |
- 29 portable classrooms at high school level
- #1 priority identified: Plan for a new Conroe High School
- May need as many as 3,000 additional high school seats by 2028
- Discussion of converting Conroe HS 9th grade campus back to a junior high if new high school is built
- High school takes approximately 3-4 years to build (could be shortened by 1 year with pre-construction work funded from fund balance, as was done with Grand Oaks)
Junior Highs:
- District-wide at 102% capacity
- 37 portable classrooms in use
- York JH: Just added 475 seats, already at 103% capacity — already past 2028 projections
- Stockton JH: Open only 2 years, already at 102%
- Moorhead JH replacement opening in 2023 will add 550 seats
- By 2028: projected 112% capacity (~1,400 seats short = at least one large junior high needed)
- Estimated cost of a new junior high: ~$90 million
Intermediates (5th-6th Grade):
- District-wide at 97% capacity
- 6 portable classrooms in use
- Veterans Memorial Intermediate opening in 2023 (relief for Grangerland, currently at 110%)
- Gordon Reed Elementary will add 300 intermediate seats on west side of Conroe
- ~2,000+ additional intermediate seats needed in next few years
- Clark Intermediate (opened recently) already at 108%
- Board member raised concern about elementary enrollment (26,000+) flowing into intermediates that are already at/over capacity
Elementaries:
- Current enrollment: 26,395 students
- 121 portable classrooms across elementary campuses
- 17 campuses at or above 100% capacity
- Notable overcrowding:
- Broadway: 137%
- Snyder: 133%
- Ford: 132%
- Creighton: 132%
- Giesinger: 127%
- Bush: 116% (limited site, few portable options, no current solution)
Upcoming Relief:
- Gordon Reed Elementary opening (650 elementary + 300 intermediate seats, west Conroe)
- Flex 22 Elementary (Lexington Blvd, Grand Oaks area) opening 2023 — 925 seats for Broadway/Snyder relief
- Flex 23 (last elementary in 2019 bond, opening 2024 or 2025)
- Dr. Hines recommended placement north of SH 105, east of the loop to serve Creighton, Austin, and provide relief for Runyon, Anderson, and Patterson
Pre-K Impact:
- District moved to full-day Pre-K starting 2021-22
- Pre-K enrollment: 1,751 students requiring 95 classrooms (up from 45 classrooms for 1,522 half-day students pre-COVID)
- This effectively requires one entire school's worth of additional space not planned for in the 2019 bond
- If universal Pre-K is enacted: Would require an additional 153 classrooms (~3 more schools, ~$150 million in construction) with no state building funding anticipated
Grand Oaks Feeder Pattern:
- Identified as the most crowded feeder pattern district-wide
- Over capacity at virtually every level (elementary through high school, except Cox Intermediate)
- Significant undeveloped green space remains in the feeder zone; future development expected
Areas of Concern Being Monitored:
- Bush Elementary (rapid growth, limited site, no current solution)
- Reeves Elementary (large multi-family housing developments incoming)
- Ford Elementary (apartment complexes, reduced actual capacity)
- Oak Ridge Elementary area (increasing density)
- Suchma Elementary (rapid increase, K-6 model attracting larger families)
- Entire Grand Oaks feeder pattern
- Oak Ridge feeder area generally
Future Capital Needs Summary (Preliminary):
Dr. Hines outlined anticipated future facility needs:
| Facility Type | Estimated Need |
|--------------|----------------|
| High School (Conroe) | 1 |
| 9th Grade Campus or Large Addition (Grand Oaks) | 1 |
| Junior Highs | 1-2 (possibly 1 if CHS 9 converts) |
| Intermediate Schools | At least 2 |
| Elementary Schools | At least 2-3 (possibly more with Pre-K expansion) |
Estimated total cost: ~$850+ million (compared to 2019 bond of $657 million)
- Dr. Null noted for context: Montgomery ISD is anticipating a $326M bond while being 1/7th the size of CISD; proportionally, that would be equivalent to a $2.4B bond for CISD
- The district is still a few years from a bond election but beginning preparation, including commissioning a new demographic study
Other Facility Notes:
- District developing new educational specifications for future facility planning (year-long process ongoing with Easy Foster's team)
- Adding gyms at two intermediates this year (all intermediates will then have gyms); older elementaries still lack gyms, creating scheduling constraints
- Portable building costs: ~$231,000 for new double portable (turnkey); ~$175,000 for used double portable (turnkey)
- Portable buildings are funded from operating budget, not bond funds
Adjournment
The meeting adjourned at 8:17 p.m.
No formal votes were taken during this workshop session. The meeting was conversational in nature, focused on providing information and receiving board guidance on budget and facility planning priorities.