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Deer Park School District Using Network Cameras to Enhance School and Student Safety

School District Reduces Safety Incidents; Increases Ability to Resolve Student Issues

Deer Park Independent School District in Texas is using its network cameras to enhance the security and safety of public school students and facilities.

Located about 20 miles south of Houston, the school district serves more than 12,000 students. More than 700 fixed, fixed dome and PTZ network cameras have been installed in 16 of the district’s elementary, middle and high school hallway interiors as well as some exteriors. In addition, the district has placed network cameras in several support buildings. The school selected the Axis’ integrator and application developer partner Lensec for this project because of its vast public school experience.

According to Deputy Superintendent for Administration Don Dean, “Like any public school, we want to ensure that non-students aren’t in our facilities and that our students and staff remain safe. Axis network cameras provide us with high-resolution images and the flexibility to access images from any location required. From experience, we know that our schools are safer and we can resolve student issues much more quickly and accurately than before. In addition, taxpayers appreciate how cost-effective the system has been while keeping students and staff safer. I give LenSec high marks for examining our situation and making the system work well.”

Nearly ten years ago, Deer Park installed analog cameras in many of its schools. While that system provided some benefits, it could take hours to track down specific incidents on VHS tapes, and the image quality made it difficult to identify students. Since the school district implemented network video systems, school personnel can get at specific incidents of interest within minutes. In addition, higher quality images enable staff to clearly identify students. Video is often archived for several weeks to enable the school to view incidents that aren’t reported or uncovered immediately.

Before school, between classes, at lunch and after school staff monitor school activities real time. Rather than deploying dedicated safety staff, the district makes it the responsibility of individual assistant principals, secretaries and other paraprofessionals to observe small segments of each school campus via multiple camera views on each monitor during peak times. Should any incidents occur, they can report them immediately to roaming staff. In this manner, the school can often stop inappropriate activity before it becomes a problem. This also serves as a deterrent, since students know that bullying or vandalism can be identified immediately. In addition, the school has resolved break-ins, including identifying a contract worker who stole musical instruments from a middle school (The instruments were recovered and he was later charged with a felony.).

In addition to indoor activity, the school mounted outdoor cameras to view sports fields and an area along the nearby shipping canal in case of an industrial event that might require an evacuation. The district’s schools are networked together via fiber, which enables key staff, including Dean, to monitor schools at any time from any school facility.

Dean noted that when he learns of serious incidents, he can also have videos emailed immediately to him so that he can review them and take appropriate action. Being able to clearly identify what has taken place and who was involved has enabled him to resolve issues quickly and fairly.

Deer Park Independent School District’s future plans include expanding its network video system to include all district facilities, including the administration building, transportation department and school kitchens.

Lewisville ISD

Located about 20 miles northwest of Dallas in Denton County, the district encompasses 127 square miles serving all or portions of 13 growing residential communities including the cities of Lewisville, Flower Mound, Carrollton, and The Colony. As the district's service area has matured, both enrollment gains and growth in taxable assessed valuation (TAV) have moderated. Enrollment growth rates have slowed to less than 3% annually since fiscal 2004 compared with over 5% annual growth in the prior decade. The district's student population surpassed 50,000 in fiscal 2009. District officials estimate reaching build-out by about 2020 with an estimated enrollment of 65,000 students. Tax base growth is strong, averaging a compound annual growth rate of 7.5% in the last five fiscal years. Mostly attributed to commercial expansion, TAV increased 8.7% in fiscal 2009 despite the sluggish residential growth. For fiscal 2010, the district's tax assessor's preliminary reviews show residential values to hold steady, but commercial valuation declines may result in flat TAV growth.

Although slowing enrollment growth has offered a measure of relief, the district nonetheless has faced mounting budgetary pressures while contending with wealth equalization transfers and compression of its operations tax rate. Despite these pressures, financial performance has been consistently strong with positive operating results in nine of the last 10 fiscal years, enabling the district to build substantial reserves. Fiscal 2008 was the second year of implementation of the new state school finance structure which required the district to compress its operations tax rate to $1.00 per $100 of TAV. The district also adopted the four enrichment pennies for fiscal 2008 as permitted by law. Since TAV growth in fiscal 2008 outpaced enrollment gains (resulting in wealth per student in excess of the $319,500 threshold), the district is considered 'property-rich' and is thereby subject to reduced state support.

While the district budgeted a $12.8 million revenue shortfall for fiscal 2008 due to the full implementation of the state's new funding formula, the actual drawdown totaled a more modest $2.4 million. Beyond fiscal 2008, with implementation of the state funding formula, the district expects to have a per-pupil deficit and anticipates using general fund reserves to balance operations; however, the district has adopted a formal fund balance policy requiring the maintenance of a minimum of $45 million in general fund balance reserves, equivalent to 13% of fiscal 2008 spending levels. The fiscal 2009 budget gap is estimated at $22 million, which, if realized, would reduce the fund balance levels to approximately $109 million, or 29% of fiscal 2008 spending levels.

Approved by 58% of the voters in May 2008, the district's nearly $700 million bond package includes construction of five new schools, facilities expansions, school site acquisitions, and technology improvements. The district sold the first installment of $170 million in January 2009. The district's debt service tax rate for fiscal 2009 was increased by one cent to $0.34 per $100 of TAV and officials anticipate that this rate will increase by another three cents over the next several fiscal years due to the current bond package. Direct and overall debt ratios are high and principal amortization is below average with 45% of principal maturing in 10 years.

Expanding service and manufacturing development continues to diversify the district's economic base, which historically has been primarily residential. Unemployment rates in Denton County are consistently below regional, state, and national averages and local wealth measures exceed state and national levels.

Needville ISD

The district is located approximately 14 miles south of Richmond in Fort Bend County, Texas. Richmond is located southwest of Sugarland, which is southwest suburban Houston; downtown Houston is a 30-40 minute drive from Needville. District enrollment totals about 2,600, which is down (1.8%) from the prior year, but has been growing at an average of 0.7% annually since fiscal 2004. The district expects continued residential and some commercial development in the near term, with residential development continuing in parts of the district. The district experienced a fire in April 2007 at its high school, which destroyed the main building and the science building. The new high school will replace this school, and the existing high school will be converted into a new middle school for the district.

Debt levels are very high, and principal amortization is slow. This is primarily due to the 2007 bond authorization for the construction of the new high school, renovations to the middle school, and existing high school, and technology improvements. This $60 million authorization, which was approved in May 2007, is expected to be sufficient to meet the district's capital needs for the next five to 10 years, during which time Fitch expects the district debt ratios to decline. With the current bonds, direct debt is 7.4% of TAV and $3,631 per capita including state support for debt service. Including overlapping debt, these levels rise to 8.5% of TAV and $4,149 per capita. Overall debt ratios include overlapping debt of approximately $6.3 million, composed mostly of the debt of Fort Bend County.

Despite the high debt levels, financial performance remains favorable. Fund balances and liquidity levels are healthy and the district has experienced operating surpluses four of the past five years. Fiscal 2008 resulted in a surplus of $1.4 million, and an unreserved general fund balance of $5.8 million, or a very solid 30.6% of spending. In fiscal 2009, the district expects a $400,000-$500,000 surplus, which will improve general fund balance levels further.

The district has a diverse tax base, with some oil and gas exposure. Wealth levels are moderate with a market value per capita of about $49,000. The per capita income of Fort Bend County is above both the state and national averages.

Clear Creek ISD

Straddling Harris and Galveston counties and located along the upper Texas Gulf Coast, the district encompasses 120 square miles and includes several cities; the largest of which is League City with an estimated population of roughly 68,000 in 2007. Much of the local area was recently impacted by Hurricane Ike, incurring predominately wind damage. While primarily residential with a sizable number of residents commuting to jobs in the Houston metropolitan area, the district also supports aerospace, petrochemical, shipping, and higher education sectors. The National Aeronautics and Space Administration's Johnson Space Center (NASA) is in the district and employs more than 16,000 civil service workers and contractors. The Bayport Industrial Park (Bayport) also is in the district, offering a deepwater port and channel facility connected to the Houston Ship Channel to its more than 60 industrial plants.

Although approximately 70% built-out, the district continues to benefit from development primarily in and around the southern portion of the district (League City) with additional commercial development along the Interstate 45 corridor. Enrollment, which is currently around 37,000 students, is expected to grow at about 700-800 students annually over the near term due to the district's many highly rated schools. Growth in TAV declined somewhat from prior years' rates at not quite 4% in fiscal 2009, but has steadily expanded overall at an average annual rate approaching 7% since fiscal 2004, despite the considerable amount of tax-exempt land in the district that includes NASA, the University of Houston at Clear Lake, and the San Jacinto Junior College District campuses.

Financial performance remains favorable, as the district recorded an operating surplus for the sixth straight year in fiscal 2008. The district has historically made substantial pay-go capital outlays from the general fund, while striving to maintain a roughly $20 million capital replacement fund for ongoing rehabilitation needs. The district also maintains a disaster recovery fund and a $5 million insurance reserve fund to help pay for increasing property and casualty insurance costs. Even with these outlays and ongoing cost pressures associated with an expanding student population, the district has managed since fiscal 2004 to post unreserved balances of no less than 20% of spending, which exceeds the district's operating reserve policy amount of at least two months of expenditures. The district adopted a balanced budget for fiscal 2009, and it is anticipated that the district will add approximately $3-$5 million to general fund reserves by the close of the year, even with the hurricane's impact on district facilities. However, in light of cost and growth pressures, initial budget projections for fiscal 2010 anticipate a deficit budget and the one-time use of roughly half of the district's capital reserves for operational purposes. Based on the current school funding formula, the district will most likely seek an additional, discretionary operating tax levy from voters sometime in 2010 or 2011.

To meet expanding capital needs, district debt levels rose in recent years, but are expected to moderate somewhat since most of the facility needs at the high school level will be met with the current authorization and the school district uses substantial amounts of pay-go for capital projects. The current issuance is the third and final installment of a $183 million authorization approved by 72% of voters in May 2007. Despite the recent hurricane damage to facilities, district officials anticipate this will meet facility needs until 2012, at which time the district expects to approach voters with additional bond package request, most likely smaller in size. The district also anticipates it will be in the final phases of its capital plan with use of its next authorization. Including a sizable amount of overlapping debt from municipal utility districts, typical of the Houston area, overall debt levels are very high at 9.3% of TAV. The pace of debt retirement is slow with about 33% maturing in 10 years.

Beaumont ISD

The district includes the City of Beaumont, a major commercial and industrial center in the 'Golden Triangle' of Southeast Texas that also includes Port Arthur and Orange. The district's enrollment declined by 1,000 students or 5% over a two-year period due to damage from Hurricane Rita in 2005. Building permits surged in 2006 and 2007 due to housing stock repairs and replacement.

The district is characterized by high petrochemical and refining concentration, led by ExxonMobil which comprises a high 23% of the district's tax base. However, there is some diversity between upstream (oil exploration and refining) and downstream users (chemical manufacturing) that helps stabilize the impact of oil price swings. Additionally, oil refineries' key role in the national economy mitigates the credit concern over their long-term prospects.

The current offering represents the third installment of the $386 million authorization approved by 57% of voters in November 2007. The bond program will fund nine new elementary schools and one middle school, a multi-purpose student center, and district-wide campus improvements and additions. Due to the advanced age of its schools and population shifts within the district, the bond program has been designed to replace or consolidate eight existing schools. The projected tax rate impact totals almost $0.19 per $100 taxable assessed valuation (TAV). Given the low existing rate of under $0.06 per 100 TAV, the total tax rate will still be low to moderate. Such projections include a $1 billion tax base boost in fiscal 2009 due to the planned construction of $1.6 billion industrial gasification plant by Eastman Chemical Co. (Issuer Default Rating 'BBB' by Fitch). The project is estimated to generate 1,300 construction jobs and 250 permanent jobs.

The district has a history of solid and steady reserves at or above its fund balance goal of 12% (1.5 months) of spending, having increased general fund reserves in each of the last six fiscal years. Audited results for fiscal 2008 reflect an operating deficit of $1.6 million that was offset by a transfer from the health insurance fund to offset increased general fund contributions for health insurance. The net result was an $824,000 increase to reserves, and the general fund closed the fiscal year with a strong unreserved balance totaling $33.5 million or 22% of spending; liquidity exceeded three months of operating expenditures. The fiscal 2009 budget is balanced based on level enrollment and a flat operations and maintenance (O&M) tax levy of $1.04 per $100 TAV.

Charlotte ISD

The district is located in the southwestern portion of Atascosa County and includes the city of Charlotte, which lies approximately 40 miles south of San Antonio. The district serves a sizable area, which includes farming and ranching. Petroleum production and petroleum-related services provide additional income to the district's economy.

Fiscal 2007 results indicate a moderate operating deficit, due primarily to a 7% salary increase as well as a reduction in the number of instructional days, resulting in less state aid. Approximately 75% of general fund operating revenues come from the state, down from 80% in prior years due to steady growth in taxable values. Despite the drawdown, the unreserved general fund balance stood at nearly $1.1 million or 23.4% of expenditures and transfers out. For the close of fiscal 2008, a small operating deficit is anticipated, with balanced operations projected for fiscal 2009.

The district's tax base is small at just under $100 million, but continues to record double-digit gains. Officials project additional growth for the coming year. There is tax base concentration, with the largest district taxpayers representing oil and gas entities as well as utilities. The county's unemployment rate remains below those of the state and nation. Enrollment count has declined over time, although average daily attendance (the basis for state aid) has remained at approximately 500. The district has initiated an open enrollment program which may boost headcount.

Debt levels are moderate, even after including planned issuance. However, payout is slow, with approximately 30% of principal repaid within the next 10 years. District residents recently approved a $2 million authorization for construction and expansion projects and equipment. Issuance is planned for later this year.

Northside ISD

Serving the rapidly growing northwest portion of Bexar County and surrounding areas, the district continues to record sizeable gains in taxable assessed valuation (TAV), rising by a compound average annual rate of over 13% over the last five fiscal years, including a nearly 13% increase in fiscal 2009. To accommodate its rapid enrollment growth, averaging 3,000 students per year, an impressive 70% of voters approved the largest bond election in district history for $693 million in May 2007. The favorable prospect for continued, albeit more moderate, tax base growth and the strong voter support for the bonds moderate the credit impact to the district's debt profile. However, Fitch notes the district's variable-rate debt is high at 19% of total debt, although the risks associated with variable-rate exposure are somewhat mitigated by the district's use of annual term modes and their past practice of converting much of it to fixed-rate in the near to medium term.

Annual enrollment growth has averaged almost 5% per year over the last five years although growth has moderated in the current year. The district's fiscal 2009 enrollment grew by over 2,400 or 2.8% for a total enrollment base of 87,956 students, making it the state's fourth largest district. This high-growth mode led the district to seek and obtain nearly $1.8 billion in bond authorizations since 1998. The May 2007 authorization funds growth-related needs that include nine elementary schools, two middle schools, and one high school plus classroom additions, campus renovations, science labs, and technology and transportation needs. Slowing enrollment growth has led the district to delay the construction of one elementary school which was planned for the northern part of the district.

The current offering represents the fifth installment of the aforementioned authorization. The district's current direct debt burden has risen substantially and now totals over $3,370 per capita and 4.8% of TAV, due in part to declining amounts of state support for outstanding debt. Overall debt ratios are also above average at over $5,100 per capita and 7.4% of TAV. The district's principal amortization rate is slow at 32% in 10 years, but is not unusual for rapidly growing districts. The May 2007 bond authorization is projected to increase the district's debt service tax rate to a moderate $0.38 per $100 TAV by fiscal 2012.

Despite pressures associated with consistent enrollment growth, financial performance has been solid as evidenced by undesignated fund balances of 10% or better of expenditures since fiscal 1995, which exceed management's goal of one month of expenditures. For fiscal 2008, the district posted a planned $21 million general fund draw down of designated reserves for the opening of three new schools. The district's steady financial cushion is impressive, comprised of a $41.6 million unreserved fund balance and $56 million in additional reserves, totaling $97.7 million or 16.4% of spending in fiscal 2008. Projected fiscal 2009 results point to a similar cushion net of a planned $10 million draw down of designated reserves for new school openings. The proposed fiscal 2010 budget, based on current law, projects a modest operating draw down in the worst case scenario, based on reduced enrollment growth of 2,200 and $21 million in new growth expenditures for the opening of four new schools. Notably, for fiscal 2010, the district will have $24 million in reserves for the opening of new schools, to purchase furniture, equipment, and for pre-design costs which it will draw down over the next two years.