Understanding the 2021 Bond Election Process
In the November 2021 bond election, voters approved funds for construction, repairs, and renovations of facilities within specific legal criteria. The tax rate is set by combining Maintenance & Operations (M&O) and Interest & Sinking (I&S) funds. The process involved discussions on safety, growth, facility age, TEA requirements, and a committee examining these needs. Community members, stakeholders, and staff met to review factors like facility tours and official data, identifying the need for new construction due to increasing enrollments and ongoing developments in the area.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
NOVEMBER 2021 BOND ELECTION
2021 BOND ELECTION What is a bond? A bond is a process where voters decide to approve funds to construct, repair, or renovate facilities Money approved by voters can only be used for projects that fit the legal criteria It is listed as the I&S portion of taxes Can the money be used for salaries etc.? NO only projects where there is construction, repairs to facilities, or renovations etc. and in some cases busses due to nature of transportations costs
HOW IS THE TAX RATE SET? Tax rate M&O + I&S = Total tax rate School district taxes are made up of two parts M&O and I&S. M&O is operational funding teacher salary, utilities, etc. It is based on a funding formula from the state and the district has very little if any control I&S funding is the bond funding. It is very limited to usage. Only the things that are listed in the bond itself. Again, it cannot be used for salaries etc.
2021 BOND ELECTIONWHAT WAS THE PROCESS THAT OCCURRED? Many factors have been discussed over the past 3-5 years by Board of Trustees and District officials Safety and security of our campuses are always evaluated Growth had been talked about and has been seen to occur Age of facilities and cost required to upkeep facilities past their prime Changes in requirements from TEA that necessitate more programs Process Board of trustees began to discuss, define, and address these needs A committee was created to examine these issues
2021 BOND ELECTION Process Members of the community, staff members, and other stake holders whom all live in the community began to meet during Spring 2021 The committee itself involved 15+ individuals at various times no administrators were a part of the committee one member of the board of trustees served on the committee They met 10+ times Factors reviewed The committee toured facilities Heard reports from experts in finance, school construction, district officials, etc. Reviewed official data of growth, attendance rates, capacity studies of current facilities
2021 BOND ELECTION Findings New subdivisions have already begun construction (Grand Ranch students already enrolling) and (Waverly Place between 250-300 homes 10 homes to be completed by end of calendar year 2021) Current enrollment approx. 1000. Census data show that for every 100 homes the average is 60+ school age students; using census data increase of nearly 200 students from one subdivision alone Age and condition of Intermediate school makes renovation questionable use of money High school and JH already have capacity issues with current enrollment
2021 BOND ELECTION Findings Safety and Security of Intermediate and Junior High were listed as major concerns by committee High school and Elementary are newest campuses to invest in based on infrastructure and long term flexibility Based on current property values and tax information NWISD could generate 24.5 million and keep the same tax rate of $0.19 (I&S) Additional district facilities (non campus) are unable to meet student need: AG shop, field house, AEP etc.
2021 BOND ELECTION Plan from committee A master plan of projects was developed Educational need and space were prioritized Projects were tiered in order of need with the goal of addressing an area of need for every campus (every age of NWISD student) The plan addressed as many goals as possible using only the approved amount of money The district will look to add to the money through use of grants, fund balance dedicated to construction, etc. if approved by voters
RECOMMENDED PLAN Tier 1 Creation of New Intermediate campus grades 4-6 Addition to occur at same site as elementary Both campuses would share cafeteria to be more cost effective and save possible positions Moving 6thgrade allows for expanded capacity at JH Allows a safe campus for grades 4-6 Retains current intermediate property for future use and can use existing buildings for non student needs
RECOMMENDED PLAN Tier 1 Addition of classrooms at elementary campus adds capacity for some growth Addition of classrooms at high school campus address current need of space Expand cafeteria at high school.
RECOMMENDED PLAN Tier 2 projects Dedicated money to renovation of existing JH for safety and security Construct gym to allow all programs practice space (band, sports, UIL etc.) Expand AG shop and field house to allow for student space and safety Address roofing concerns on each campus Provide for general upkeep and repair of facilities
RECOMMENDED PLAN Tier 2 projects Consider additional parking Address other district facilities as possible Expand water lines where needed Address and update competition facilities for safety and security
2021 BOND ELECTION Recommendation A single proposition for a projected no tax rate increase should be considered to address general facility upgrades within the district to accommodate growth and renovation (recommended to the Board of Trustees) Rationale The committee believed that the data provided led to findings that justified the need for a bond issue. Further, a no tax rate increase should provide the district with approximately 24.5 million dollars to begin addressing issues The committee recommended the no tax rate increase plan because they fully believed that more construction will take place in the future. By holding the tax rate steady now they believed that was the wisest use of resources The board of trustees heard the plan and recommendations; at a subsequent board meeting they voted 7-0 in favor of putting this issue before the community to vote upon
HOW DOES A PROJECTED NO TAX RATE BOND WORK? How do we know what the projects will be? Only projects that meet the definition of the wording can be used. The district may only access 24.5 million (if approved). Tier 1 projects will be addressed first
HOW DOES A PROJECTED NO TAX RATE BOND WORK? How can this be for a projected no tax rate increase? Our current I&S rate is $0.19 this is voted on and discussed by the board publicly during the budgeting process. The rate is determined by what is takes to pay off current debts the actual tax rate can fluctuate depending on property values In our case, the board has voted to keep the tax rate steady to pay off previous debt faster thus saving tax payers millions of dollars in interest from past bond issues
HOW DOES A PROJECTED NO TAX RATE BOND WORK? How can this be for a projected no tax rate increase? Voters would be voting to keep the tax rate at the same level as it is now but because property values have increased, it would allow us to access 24.5 million in bonds According to financial projections, if NW only saw 2-3% growth for the next 30 years in values, the $0.19 could stay the same and still pay off the bond (currently we have had 10% growth or more the last 2 years thus it is possible that that rates could go down but that is NOT a guarantee
HOW DOES A PROJECTED NO TAX RATE BOND WORK? What is the wording on the Ballot? "THE ISSUANCE OF NOT TO EXCEED $24,500,000 OF NEW WAVERLY INDEPENDENT SCHOOL DISTRICT SCHOOL BUILDING BONDS FOR THE PURPOSES OF DESIGNING, CONSTRUCTING, RENOVATING, IMPROVING, UPGRADING, UPDATING, ACQUIRING, AND EQUIPPING SCHOOL FACILITIES, THE PURCHASE OF THE NECESSARY SITES FOR SCHOOL FACILITIES, AND THE PURCHASE OF NEW SCHOOL BUSES, AND THE LEVYING OF A TAX IN PAYMENT THEREOF. THIS IS A PROPERTY TAX INCREASE."
HOW DOES A PROJECTED NO TAX RATE BOND WORK? Why does the wording say tax increase? The amount of the tax rate should not increase but the length of time that the rate would be in effect will increase. It will be more money but the payment level on our end remains the same. Should values continue to increase there is possibility to pay bond off early or lower the rate New Waverly ISD had not raised the I&S tax rate since 2004 But we have no control over property values Residents 65 and older would see their tax rate frozen guaranteeing no change for them but in this case we project no increase for anyone
HOW DOES A NO TAX RATE BOND WORK? Voters decide In November voters will decide The superintendent can provide information and factual statements but is not allowed to advocate for or against. He is allowed to explain why it is being voted on and the data and decisions that went into the process All voters must decide whether or not this is a good idea
HOW DOES A NO TAX RATE BOND WORK? Time frame During the Fall of 2021, we will share information with community in various methods Architect will help design plans to meet as many of the master plan projects as possible Building costs can obviously impact the plan costs go down, more can get done, costs increase then we can get less done
HOW DOES A NO TAX RATE BOND WORK? Time frame Groups can form both in favor OR opposed to the bond and may work to speaking with the community to that end The district can not provide financial support to either group other than providing meeting space (as we would any group) In November the community will vote to accept this or reject this
HOW DOES A NO TAX RATE BOND WORK? Time frame If approved projects will continue to be finalized and planned during the spring with an anticipated start construction date of later Spring 2022 Hopefully projects are completed by 2024 (again if approved) and of course depending on costs, weather etc.
