Posted 1:28 am Friday, July 23, 2010
TISD Mulls Next Bond Issue
$100 Million Package Adds Middle School; Tax Rate Would Remain Steady
By EMILY GUEVARA
Staff Writer
Staff Writer
The Tyler ISD board of trustees will consider calling a bond election as early as November.
The $100 million bond package as discussed during a board workshop Thursday would call for the renovation or rebuilding of both Rice and Dixie elementary schools as well as the construction of a large middle school in southwest Tyler.
No decision has been made at this point, however the board has until Aug. 24 to make a decision if they want the bond package to be on the November ballot. The district planned to discuss the issue further at several upcoming meetings.
Superintendent Dr. Randy Reid said he understands that both the district and the community members are in the midst of tough economic times. However, he said, if a bond election is called, it would essentially ask voters to maintain the existing tax rate.
"The economy is a huge concern to both us and our community," Reid said during the workshop. "We know that money is very tight for everyone and it will be a challenging few years ahead of us."
Reid said that by paying down debt on the 2008 bonds, the district has saved an estimated $4 million in future bond payments. This means that if a new bond was approved, the district would be retiring debt at a rate equal than or greater to the debt they will take on, thereby eliminating the need to increase the tax rate.
However, without another bond, the district could effectively lower the tax rate because they are retiring debt, Reid said.
When the district created the original facilities plan in 2004, they planned to address first the elementary schools, then the middle schools and finally the high schools.
In the past six years, 12 elementary schools have been replaced with new buildings. One school, Jack Elementary, was built new. It did not exist before the 2004 bond.
And the district is scheduled to complete renovations to Birdwell and Owens elementary schools by next summer, Reid said.
"We feel tremendous about how we've been able to honor the taxpayers' wishes with this bond," Reid told the board and those in attendance. "… We feel it's a good time for us to consider in the near future a bond election that would allow us to finish our elementary work and take the first step in our secondary work."
Last month, the district approved the purchase of 29 acres of land in the southwest part of Tyler for a potential middle school. The new school could be built for as many as 1,200 students, Reid said.
Although the population likely would not start out that large, it is an area of high growth and "for us to build anything that didn't have capacity for growth would be crazy," Reid said.
If the board decided to call a November election, the new school likely could be opened in 2012. However, if they call a May election, it likely would be opened in 2013.
Reid demonstrated in essence that the district had done its homework. He said the district's financial advisors have looked at the numbers - both interest rates and construction pricing. Given the district's savings under the current bond and the positive market, he said it is a good time to move forward.
In addition, he said, he has consulted with several key members of the community and feels like a solid level of support exists in the community.
BUDGET
Board members also discussed this year's budget. Reid opened the discussion by briefing the board on the challenges. He said the combination of soon to be gone stimulus funds, the cap on the maintenance and operations tax rate, and the state's budget shortfall mean "this is going to be a very lean year for us."
Like so many other entities such as the county, colleges and universities, the district is cutting back where it can. This includes curtailing travel, delaying hires when possible, and enacting energy saving measures.
In light of this situation, the district does not plan to give raises to any employees.
However, the district will award the "step increases" required by law to teachers, librarians and registered nurses.
These increases vary in amount from $200 to $1,061 depending on years of experience. Some 62 employees with the 31 to 35 years of experience are in the window where they get no step increase.
These pay increases will cost the district $680,000.
Chief Financial Officer Tosha Bjork said the district has saved $830,000 in a fund in order to pay for these step increases.
Bjork recommended that the district use the remainder of the funds, $150,000, to help pay for increases to the district's health care costs.
Employees also likely will see increases to their healthcare costs in order to cover the additional expenses. It is still unclear whether that increase will come on their premiums or benefits side.
The board will vote on this issue at an upcoming board meeting.
