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HomeMy WebLinkAboutLa Joya Independent School District - Public Financial Report 2 3 4 The La Joya Independent School District, located in the western portion of Hidalgo County consists of more than 225 square miles stretching west of Mission to Sullivan City, including the smaller communities of La Joya, Palmview and Peñitas. The District has a strong and rich educational history. The first schools were established during the 1800’s to provide educational opportunities for the people living in western Hidalgo County who did not have access to existing educational institutions. La Joya ISD is committed to providing educational excellence through rigor, relevance, relationships and personal responsibil- ity. We are the integral part of learning where students become successful and productive contributors to our global society. We embrace, with passion, the commitment to continuous improve- ment, collaboration and accountability that will allow our stu- dents to imprint the world. 23 Elementary 8 Middle Schools 3 High Schools 8 Special Campuses Total Number of Schools Enrollment 26,618 8,433 HS 6,079 MS 10,507 K-5th 1,533 Pre-K 66 Early Childhood Education Total Enrollment Ethnicity Hispanic 99.8% White 0.1% Other 0.1% Student Demographics Title I 98.1% Economically Disadvantaged 93.2% At Risk 80.4% Limited English Proficient Language Learners 57.0% Bilingual 55.2% Migrant 3.9% Gifted & Talented 10.3% Section 504 4.5% Special Education 10.8% Source: Texas Academic Performance Report/PEIMS La Joya ISD has an average daily membership of 26,618 stu- dents of which, Hispanic students account for over 99 percent of the enrollment. Overall, La Joya ISD boasts 42 campuses, (three comprehensive high schools, eight special campuses, eight middle schools, and 23 elementary schools) and employs over 4,200 individuals from all across the Rio Grande Valley and some from overseas. • La Joya ISD employs 1,885 teachers • Average Teacher Salary $59,872 • Average Teaching Experience 13 years • 22.7 % hold Master’s degrees • Full Time Staff 4,165 5 6 Citizens and Taxpayers of La Joya Independent School District: We are pleased to present the La Joya Independent School District’s Popular Annual Financial Report (PAFR) for 10 months ended June 30, 2021. During the 2020-2021 fiscal year, La Joya ISD Management team along with the support from the School Board of Trustees, made the decision to change fiscal year end from August 31st to June 30th. This report is designed to make the financial operations of our school district easier to un- derstand for our citizens and other potential users. The PAFR summarizes the financial activities and operating results of the District and was compiled from the financial information reported in our 2021 Comprehensive Annual Financial Report (CAFR). The CAFR is a more comprehensive document that is prepared in conformance with Generally Accepted Accounting Principles (GAAP) and was audited by our external auditor, Noel Garza, CPA, PC, receiving an “unmodified” (the highest) opinion. On the other hand, the PAFR is unaudited and presented on a GAAP basis. While the underlying accounting methods are similar to the CAFR, the PAFR simplifies reporting by not including all segregated funds, required presenta- tions and full disclosure of all material financial and non-financial events in the notes to the financial statements. Citi- zens desiring to review full disclosure financial statements may obtain a copy of the CAFR from the Business Office through an Open Records Request or may view it on the District’s website at https://www.lajoyaisd.com/214889-2. La Joya Independent School District is proud of this report and the support offered by the Board of Trustees. The District continuously strives to increase public confidence in the governing body of the District as well as increasing communication with the community. The PAFR should assist citizens and taxpayers understand how their tax dol- lars are being spent in educating our 26,000+ students. As you will see in this report, the District is directing your tax dollars into the classroom to maximize student achievements. Any questions, comments, or feedback regarding this report are welcomed and may be directed to the Business Office by calling 956-323-2000 or via e-mail at j.trevino5@lajoyaisd.net. Joel Treviño The Administration and Finance Department of La Joya Independent School District is charged with the maximization of fis- cal resources and utilization of sound financial management. Some of the accomplishments for the ten month period ended June 30, 2021 include: * Met the 98% tax collection rate goal. * No findings of questioned costs in the annual audit. * Received a “A” (Superior) under Schools FIRST (Financial Integrity Rating Systems of Texas). * Maintained its credit rating of “A1” from Moody’s, which allows for better opportunities when seeking financial assistance. * Received the Certificate of Excellence in Financial Reporting from the Association of School Business Officials (ASBO) for 11 consecutive years. * Received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for 10 consecutive years. * Received the Award for Outstanding Achievement in Popular Annual Financial Reporting from the Government Finance Officers Association (GFOA) for 10 consecutive years. * Received the Texas Association of School Business Officials (TASBO) Award of Merit for Purchasing Operations with Recognized distinction for 12 consecutive years. * Received the National Procurement Institute Achievement of Excellence in Procurement Award for 8 consecutive years. Chief Financial Officer 7 Government Finance Officers Association The Government Finance Officers Association of the United States and Cana- da (GFOA) has given an Award for Outstanding Achievement in Popular An- nual Financial Reporting to La Joya Independent School District for its Popu- lar Annual Financial Report for the fiscal year ended August 31, 2020. The Award for Outstanding Achievement in Popular Annual Financial Report- ing is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Finan- cial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Report- ing is valid for a period of one year. 8 The Texas Education Agency (TEA) prepares the Texas Academic Performance Report (TAPR), which includes information on student performance for every public school, district or region in Texas. The information in the tables on this page is from the 2020-2021 TAPR report which can be accessed at www.tea.state.tx.us. Goal 1- The district will implement a rigorous curricu- lum and instruction program to close achievement gaps which ensure that all students reach their aca- demic potential. Goal 2- The district will implement student support services that address the total well-being of each stu- dent by providing a safe and secure school environ- ment. Goal 3- The district will provide an administrative and finance system that supports student achievement. Fiscal Year Student Enrollment Teaching Staff Pupil- Teacher Ratio Average Teacher Salary Average Years of Experience % of Students Receiving Free or Reduced Meals 2021 26,618 1,885 14.1 $ 59,872 12.6 88% 2020 27,276 1,920 14.2 $ 59,148 12.1 88% 2019 27,734 1,879 14.9 $ 55,820 11.6 88% State Region District Attendance Rate 2019-2020 98.3% 98.3% 97.3% 2018-2019 95.4% 95.5% 94.1% Annual Dropout Rate (Grades 7-8) 2019-2020 0.5% 0.1% 0.0% 2018-2019 0.4% 0.2% 0.1% Annual Dropout Rate (Grades 9-12) 2019-2020 1.6% 0.9% 1.7% 2018-2019 1.9% 1.4% 3.2% 4-Year Completion Rate (Grades 9-12) - Class of 2020 Graduated 90.3% 92.1% 89.5% Received TxCHSE 0.4% 0.2% 0.1% Continued HS 3.9% 3.4% 3.8% Dropped Out 5.4% 4.3% 6.6% STAAR Percent at Approaches Grade Level or Above All Grades State Region District Reading 2021 68% 63% 54% 2019 75% 74% 66% Mathematics 2021 66% 53% 45% 2019 82% 85% 84% Writing 2021 58% 50% 36% 2019 68% 73% 67% Science 2021 71% 63% 53% 2019 81% 83% 78% Social Studies 2019 81% 81% 78% 2018 78% 79% 74% Disclosure: Due to the cancellation of spring 2020 STAAR, 2021 and 2019 STAAR data are shown. 9 Property Values Percent Collected (4) Fiscal Year Ended, Tax Year (1) Tax Rate (2) Per $100 Valuation Real Personal Less: Exemptions Adjustments Total Taxable Values Taxes Levied (3) Within Fiscal Year To Date 2017 2016 1.311000 $ 3,100,135,311 $ 321,760,424 $ 805,458,416 $ 363,047,217 $ 2,253,390,102 $ 28,846,235 91.37% 98.02% 2018 2017 1.311000 $ 3,137,321,243 $ 334,127,081 $ 809,615,791 $ 350,016,340 $ 2,311,816,193 $ 29,622,395 92.09% 97.79% 2019 2018 1.311000 $ 3,499,673,714 $ 333,493,048 $ 852,888,594 $ 421,565,088 $ 2,558,622,080 $ 32,691,071 91.76% 96.86% 2020 2019 1.311000 $ 3,570,516,236 $ 344,365,253 $ 878,118,259 $ 403,804,661 $ 2,632,958,569 $ 33,623,840 91.67% 95.42% 2021 2020 1.311000 $ 3,752,813,111 $ 314,281,802 $ 893,092,631 $ 404,072,961 $ 2,769,929,321 $ 35,234,673 91.84% 91.84% (1) The tax year begins January 1 and ends December 31st. (2) Tax rate is assessed on total taxable value. (3) Taxes levied net adjustments. (4) Tax collections are as of June 30, 2021. What are Property Taxes? Property taxes (also called ad valorem taxes) are locally assessed taxes, as authorized by Title 1, Subtitle C, Chapter 11 of the Texas Property Tax Code. The Hidalgo County Appraisal District appraises property located within district boundaries. While the District sets tax rates, Hidalgo County serves as collector of property taxes. Tax Rate The tax rate for the District for the 10-month period ended June 30, 2021 was 1.311, the same rate as the previous fiscal year. Property Taxable Values The 2021 tax year experienced an increase in tax- able value of $136.9 million. The Hidalgo County Appraisal District is in charge of certifying the ap- praised values of our District. Total taxable valua- tion for the 2020 tax year was $2,769,929,321, representing a 5.20% increase in appraised values from 2019 tax year. Tax Collections The Hidalgo County Tax Office collected $32,359,998, or 91.84% of the tax levied for the 10-month period ended June 30, 2021. Tax Levy The District had an adjusted tax levy of $35,234,673 for the 10-month period ended June 30, 2021, a 4.79% increase from the previous fiscal year. Principal Property Taxpayers for Tax Year 2020 Rank Taxpayers Assessed Valuation % of Total Assessed Valuation 1 AEP Texas Inc. 61,076,690 2.23% 2 Frontera Generation Ltd. Partnership 37,147,690 1.36% 3 Wonderful Citrus Packing LLC 21,078,459 0.77% 4 Houston Pipeline Co. LP 16,259,860 0.59% 5 Wonderful Citrus II Packing LLC 14,671,692 0.54% 6 Wal-Mart Real Estate Business Trust 14,252,514 0.52% 7 Merit Energy Company 10,886,283 0.40% 8 Electric Transmission of Texas 10,423,300 0.38% 9 H E Butt Grocery Company 8,204,766 0.30% 10 Wal-Mart Stores Texas LLC 6,190,946 0.23% Total 139,115,510 5.08% Source: La Joya ISD Continuing Disclosure Report 10 The District received $314,323,238 in revenue for the general fund during the 10-month period ended June 30, 2021, an increase of 8.22% from the previous fiscal year. Most of the increase is attributed to collection of property taxes and state aid. The general fund is the District’s operating fund and accounts for 84% of the District’s total revenues. This fund includes the following oper- ating funds: Child Nutrition Services, State Career and Technology Education , State Compensatory , State Bilingual, Athletics, State Special Education, Early Education Allotment, College Career, Military Ready Allotment and General Operating. The District’s reve- nues from local, state, and federal sources are summarized below. Disclosure – The information presented in this page is for the General Fund only. Individuals who wish to review the complete financial statements should refer to the District’s Comprehensive Annual Report for the 10-month period ended June 30, 2021. For school year 2020-2021, fiscal year changed end date to June 30th, instead of August 31st. Local Sources Local Sources of revenue generated 10.06% of all sources of revenue and increased by 5.67% over the previous fiscal year. Some of the revenues included in local sources are: taxes, earning on investments, rentals, extracurricular activities, and other contributions. 93.44% of local revenues come from the collection of property taxes (what you, as a citizen, pay for educating our students). Other revenues from local sources represent 6.56% of total local revenues. State Revenues State sources of revenue that support the general fund are the most significant for the District, representing 81% of all available sources of funding. There was a 8.99% increase in State Revenues from the previous fiscal year. Districts receive state aid based on their property wealth per student; the higher the district’s property wealth, the less state money that the district receives. The District experienced a $21,076,526 increase compared to last year. Federal Sources Revenues received from federal sources constitute 8.68%. Federal revenues for fiscal year 2021 experienced a 4.21% increase compared to last fiscal year. Resources from Operating Funds FY 2019 FY 2020 10-month period ending June 30, 2021 % Change Local Real & Personal Property Taxes $ 30,193,802 $ 28,055,934 $ 29,553,280 5.34% Other Revenues from Local Sources $ 2,884,610 $ 1,873,900 $ 2,074,233 10.69% State Revenues $ 236,401,471 $ 234,351,390 $ 255,427,916 8.99% Federal Revenues (includes Child Nutrition) $ 27,001,738 $ 26,165,597 $ 27,267,809 4.21% Total Revenues $ 296,481,621 $ 290,446,821 $ 314,323,238 8.22% 11 The District had $291 million in general fund expenditures during the 10-month period ended June 30, 2021, a decrease of $22.8 million or 7.27% compared to fiscal year 2020. The decrease in expenditures is attributed to a change of fiscal year end from August 31 to June 30. These expenditures include the following operating funds: Child Nutrition Fund, State Career and Tech Education Fund, State Com- pensatory Fund, Athletic Fund, State Special Education Fund, Early Education Allotment, College Career , Military Ready Allotment, and General Operating Fund. The primary use of money in the general fund is for instruction and instructional related services, which togeth- er account for 55.09% of total expenditures. The District is spending its funds where it matters most, in the classroom. Payroll costs of $225,023,421 include the gross salaries and wages and benefit costs for employee services. Professional & Contracted Services costs of $18,500,200 were used for services rendered to the school dis- trict by firms, individuals, and/or other organizations. Supplies & Materials amounted to $23,300,539. Other Operating Costs of $4,862,240 were spent on student and staff travel and other miscellaneous costs. Debt Services of $4,830,883 were spent on bond principal, interest and other issuance costs. Capital Outlay of $14,580,983 was spent on building and land improvements, buses and vehicles, furniture, and equipment with a unit cost greater than $5,000. The pie chart below depicts expenditures for the general fund by object. 12 The table below and the pie chart identify all expenditures for the general fund by function. Disclosure: Fiscal year changed from August 2021 to June 2021. 13 Instructional Leadership (1.27%) Expenditures directly used for managing, directing, supervising and providing leader- ship for staff who provide general and spe- cific instructional services. School Leadership (5.40%) Expenditures used to direct and manage a school and include the activities performed by administrative staff at campus. Guidance & Counseling Services (3.79%) Costs of psychological services, identification of individual characteristics, testing, educational counseling, student evaluation and occupational counseling. Health Services (1.20%) Expenditures directly used for providing physical health services which are not direct instruction. This includes activities that provide students with appropriate medical, dental, and nursing services. Facilities Maintenance and Operations (11.17%) Expenditures for activities to keep the phys- ical plant and grounds open, clean, comfort- able and in effective working condition and state of repair. Security & Monitoring Services (1.56%) Expenditures used for activities to keep students and staff surroundings safe, whether in transit to or from school, on a campus or participating in school-sponsored events at other locations. Data Processing Services (0.42%) Expenditures used for computer facility management, computer processing, sys- tems development, analysis and design, and those interfacing costs associated with gen- eral types of technical assistance to data users. Debt Service (1.6%) Costs associated with the issuance of bond costs. Facilities Acquisition and Construction (1.74%) Expenditures used for acquiring, equipping, and/or making additions to real property and sites, including lease and capital lease transactions. Instruction (51.78%) This function is used for activities that deal directly with the interaction between teach- ers and students. Instructional Resources & Media Services (2.04%) Costs that are directly and exclusively used for resource centers, establishing and main- taining libraries, and other major facilities dealing with educational resources and me- dia. Curriculum & Instructional Staff Develop- ment (1.28%) Expenditures used exclusively to aid instruc- tional staff in planning, developing and eval- uating the process of providing learning experiences for students. This includes in- service training and other staff development for instructional or instructional-related personnel. Student (Pupil) Transportation (4.11%) Expenditures that are incurred for transporting students to and from school. Food Service (6.72%) These are food service operation expenditures, including the cost of food, labor and other ex- penses necessary for the preparation, transpor- tation, and storage of food to provide to our students. Extracurricular Activities (2.57%) Expenditures for school-sponsored activities outside of the school day. These activities are generally designed to provide students with experiences such as motivation and the enjoy- ment and improvement of skills in either a com- petitive or non-competitive setting. General Administration (2.69%) Costs associated with the overall general admin- istrative support services of the school district. 14 the 10-month period ended June 30, 2021 compared to the two previous fiscal years. Federal funding in- creased due to more availability of federal program funding. Grant funding plays an important role as a re- source to supplement regular funding and to expand programs needed for greater academic achievement. Special Revenue Funds are used to account for resources restricted to, or designated for, specific purposes by a grantor. The total revenues for Special Revenue Funds (excluding Campus Activity Fund) for the 10-month period ended June 30, 2021 were $37,764,624. During the 10-month period ended June 30, 2021, the Dis- trict received $37,764,624 in grants from federal, state, and local grantors; this represented a 2.70% increase in revenues from the previous fiscal year. Federal grants received were $36,214,474 or 95.90%. State and local grants received were $1,493,262 and $56,888, respectively. The table to the right shows the amounts received from federal, state and local grants during The Debt Service Fund accounts for the accu- mulation of resources for, and the payment of, general long-term debt principal and interest. Revenues for this fund come from local sources in the form of taxes and interest earned on checking accounts, investments and from state aid received from the Texas Education Agency for Existing Debt Allotment (EDA) and Instruc- tional Facilities Allotment (IFA), these are grants for the purpose of financing the principal and interest payments for eligible bonds for the construction and repair of schools. The District received revenues of $20,554,496 in the 10-month period ended June 30, 2021. Local Sources totaled $6,558,904 and State revenues totaled $13,995,592. Out of the 2021 total debt service expenditures of $18,765,869, La Joya ISD paid $14,810,000 in principal and $3,257,738 in inter- est and $698,131 in bond issuance costs and fees on outstanding bonded debt. The District has a ratio of total debt to estimated actual property value of 6.07%. As of the 10-month period ended June 30, 2021, the District had a balance of $181,352,680 in general obligation bonds issued and outstanding. The table presented above is a schedule of required payments for these general obligation bonds. Year Ending August 31, 2020 Principal Interest Total 2022 13,880,000 7,602,776 21,482,776 2023 14,535,000 7,006,351 21,541,351 2024 12,145,000 6,308,501 18,453,501 2025 12,745,000 5,714,951 18,459,951 2026 10,245,000 5,091,801 15,336,801 2027-2031 45,602,680 32,233,173 77,835,853 2032-2036 61,635,000 7,652,879 69,287,879 2037-2038 10,565,000 477,750 11,042,750 Total 181,352,680 72,088,182 253,440,862 15 The mission of the Facilities & Physical Plant Operations Departments is to provide quality facilities management and maintenance support to La Joya ISD campuses and departments. This mission will be accomplished through effective, safe and efficient service in the areas of construction, building maintenance, housekeeping and grounds maintenance. Benavides Elementary Renovations Project The La Joya ISD School Board of Trustees has selected CG5 Architect LLC to assist in the design and develop specifications required for the Rosendo Benavides Ele- mentary School building renovation project. This pro- ject encompasses of a complete re-roof and new roof drainage system. The new roof system has been up- graded to a modern membrane material and construc- tion methods for a new 20 year warranty. In addition to the new roof, new metal wall panels at the exterior walls were also replaced to provide a new building en- velope that is tied into the roof system. The interior finish renovations includes new wall finish and paint, new ceiling tiles, and new flooring in a new color scheme and interior design. La Joya ISD Stadium Turf & Track The existing synthetic turf at the La Joya ISD Stadium had been in exist- ence for approximately 13 years. Turfs are recommended to be evalu- ated and replaced every 10 years due to weathering and life of use. Different areas of the existing turf had visible distresses and relevant conditions. Some of the edges were already starting to weave out and grow grass between the grass and the synthetic turf. In addition, the existing electrical conduit located on the north side of the football field was completely inoperable. The La Joya ISD School Board of Trustees selected Hellas Construction Inc. to remove and replace existing artifi- cial turf and track in the La Joya ISD stadium. This project is slated for completion March 2022. Kika De La Garza Elementary Renovation On July 28, 2021, the School Board of Trustees ap- proved SLR Building Contractors for the Roof & Interior Renovations project. The contractor will be installing a roof overlay and a new roof drainage system. In addi- tion, the contractor will also be installing new wall finishes, new ceiling tiles, and new flooring with a new color scheme and interior design. This project is ap- proximately 98% complete. Guillermo Flores Elementary Renovation La Joya ISD School Board of Trustees has selected CG5 Architect LLC to assist in the design and develop specifications required for the Flores Elementary project. On the exterior, the contractor has in- stalled a new roof overlay and new roof drainage system. In addi- tion, the interior will be upgraded with new wall finishes, new tiles and new flooring in a new color scheme and interior design as well. This project is approximately 75% complete. 16 Individuals who wish to review the full disclosure financial statements should refer to the school district’s CAFR, which is available at the Office of Administra- tion and Finance (956) 323-2000 or on the website at www.lajoyaisd.com For questions, comments or suggestions regarding this report or any other matter pertaining to La Joya Independent School District, contact (956) 323-2051. We would like to acknowledge the following departments for the development of this report: • Administration and Finance • Facilities • Print Shop • Public Information • Evaluation and Accountability It is the policy of the La Joya Independent School District not to discriminate on the basis of sex, age, handicap, religion, race, color, or national origin in its educational programs. La Joya Independent School District • 201 East Expressway 83 • La Joya, TX 78560 • 956-323-2000