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Leander ISD Bonds & Debt Analysis: Financial Strength & Future Prospects

Explore Leander Independent School District's robust financial profile, successful bond election outcomes, and promising future growth opportunities. Learn about their excellent academic reputation, seasoned executive team, favorable location, and favorable demographics.

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Leander ISD Bonds & Debt Analysis: Financial Strength & Future Prospects

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  1. Leander Independent School DistrictBonds and Debt Analysis May 23, 2019

  2. Topics of Interest • What Matters to Rating Agencies? • We Passed a Bond Election, What is Next? • Future of Financial Leadership LISD

  3. What Matters toRating Agencies?

  4. Excellent Academic Reputation – A Destination District • Continue to outpace the State and Nation in both ACT and SAT score performance • Continue to offer IB World Schools • Continue to have one of the highest STAAR passing rates in State • Continue to have one of the highest graduation rates

  5. Seasoned Executive Team • Core finance staff possess a strong understanding of the intricacies of Texas school funding • Proven ability to effectively manage a growing school district • Dr. Dan Troxell hired as Superintendent in Aug. 2016 – upon unanimous approval by the Board – to lead Leander ISD after superintendent Bret Champion departed amicably for an opportunity at Klein ISD

  6. Favorable Location in Austin MSA - District is Poised for Continued Growth • Leander ISD is predominantly located in Williamson County, with the southern portion extending into Travis County • Ideal location west / northwest of Austin along a transportation corridor (Hwy 183) – District is positioned for continued development and enrollment gains as the Austin MSA continues to grow • Offers proximity to Austin, a major employment center and one of the fastest growing cities in the U.S. • Median household income of $72,118 for Williamson County is 137% of the statewide and 135% of the US average1 ______________________ 1 US Census Bureau

  7. FY 2017 TAV Reaches $20 Billion, Establishing New Peak • The District’s tax base is comprised of primarily residential properties; this sector has demonstrated solid growth over the last decade and development activity remains robust • Top 10 taxpayers, combined, represent less than 4% of TAV TAV % change

  8. Enrollment Continues to Climb at a Manageable Rate • District enrollment grew by 2.25% this year (fiscal 2017) and over the past five years has grown by a compound annual growth rate (“CAGR”) of 2.56% • Enrollment growth has slowed from larger growth rates – from 2008-2012 the enrollment CAGR was 5.86% • Key Drivers • Quality of schools/education • Relative affordability of housing • Location ______________________ Source: Texas Education Agency, PEIMS data; Leander ISD.

  9. Favorable Demographics • Low economically disadvantaged population of 19% • 59% in Texas • Leander ISD ranked 3rd in Texas among ISDs with more than 20,000 students • High STAAR passage rate of 83% • 71% in Texas • Leander ISD ranked 11th in Texas among ISDs with more than 20,000 students • Highly educated population - 51% have a bachelor’s degree • 29% in Texas • 43% in Austin • High median household income level of $102,782 • Austin metro area is $71,000 http://www.leanderisd.org/users/0001/docs/Demographics/2015/Demog-Pres_2015.pdf

  10. Enrollment Continues to Climb ______________________ Source: Leander ISD 2017 Demographic Report.

  11. 2018 Budget Development • Increase of 138 positions in General Fund Budget (125 campus, 13 non-campus) • Salary increase of 3.0% off midpoint for all employees • Maintain 2-cents of the M&O tax rate for major maintenance levy • Increase for implementation of new student information system • Start-up funding for Akin Elementary School scheduled for opening in August 2017

  12. Tax Rates Unchanged from Prior Year • The I&S tax rate remains at $0.47 ($0.47187, truncated in table below) per $100 of TAV • District currently over levying to early retire bonds • The M&O tax rate remains at $1.04 per $100 of TAV • District maintains 2-cents of the M&O rate for “major maintenance” • The M&O rate could increase to $1.17 (12.5%) with voter approval; though not currently contemplated by management

  13. Evolving Debt Structure

  14. District Compares Favorably to Other Highly-RatedFast-Growth Districts

  15. We Passed a BondElection, What is Next?

  16. Tax Rate to Remain Unchanged • Issued $83 million through conventional bonds for ES #27, technology, buses, and other assets • Debt life matches asset life • Interest (prior to future refinancing) is $50,096,882 • Sold bonds June 2018 • Issued $64.4 million through a commercial paper program (similar to a line of credit) • Finance land acquisitions • Interest only accrues on amount borrowed • Nominal carrying costs to have access to CP • No draws on the CP as of May 23, 2019 • Access to CP started in July 2018

  17. Tax Rate to Remain Unchanged • Issued $99.42 million through conventional bonds for MS #9, technology, buses, and other assets • Debt life matches asset life • Final maturity is 2041 • 86.5% of principal paid off by 2031 • Interest (prior to future refinancing) is $37,700,167 • Sold bonds May 2019

  18. $83 million Bond Sale Funds Projects Beginning in Summer 2018

  19. Other Bond Projects

  20. $99.42 million Bond Sale Funds Projects Beginning in Summer 2019

  21. Future of Financial Leadership LISD

  22. Thank you forServing on this Committee!

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