TO: Dr. Fonte

FROM: Jerry Miller

DATE: December 17, 1999

RE: Revenue Increase Forecast for FY 2001

The following is a listing a significant increases in revenue for fiscal year 2001. It does not include assumptions for changes in enrollment or tuition. The amounts represent changes when compared to the previous year. For example, state funding will provide $933,692 more revenue in FY2001 than it did in FY2000.

Assumptions:

State Funding.

The second year of the base period. The Co-Board funds at a high rate during the second year.

Tuition.

Policy E-8(2) Tuition and Fee Rates. Assuming a $2 increase per semester for out of district and out of state students.

No projection included for enrollment increase. An increase of 1% in enrollment equals $305,000 of new revenue.

Property Tax.

Appraised values will increase by 4.5%. New construction will equal the leve1 set in 1999. In 1999 new construction was 35% more than 1998. The FY2000 figure includes the tax revenue increases for both Manor ISD of $682,256 and the 35% jump in appraised value for new construction equaling $200,000 tax revenue. The fy2001 forecast is in line when these combined amounts of $882,256 are factored out of fy2000. Tax rate will be .05 per $100 of assessed value.

If a one million-dollar bond is sold, it requires $90,000 of yearly debt service.

If tuition is increased by one dollar it produces $500,000 of new revenue per year.