- Splendora Independent School District
- Bond 2022
Bond 2022
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April 21, 2023
Dear Splendora Community:We are speeding toward the finish line of another great year at Splendora ISD. The end-of-year brings banquets, field trips, and graduation ceremonies and we are looking forward to celebrating all of our students’ accomplishments. We are thankful for the opportunity to serve our community and provide the best facilities in which our students can showcase their talents and passions. We also understand and appreciate the need for consistent and transparent communication, and being accountable to our community.
Since the November 8th election, we have been busy laying the groundwork for the bond projects. At the end of November, we sent a bond election feedback survey to find out how we could do better. Many of you commented and wanted more communication. Here is our first update on what has happened since Proposition A passed.
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Received an AAA/A+ underlying rating, which was crucial for bond sales
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Sold $100 million bonds (expect to sell the remaining bonds in early 2024)
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Hired project managers to oversee and manage the following projects:
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Turner & Townsend Heery for the high school expansion and junior high school
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Lockwood, Andrews & Newnam, Inc. (LAN) for the Greenleaf and Peach Creek Elementary Schools
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Selected the following architects for the following projects:
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High School expansion - Stantec
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Junior High School - Huckabee
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Peach Creek Elementary replacement school - Huckabee
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Greenleaf Elementary replacement school - Huckabee
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Selected sites for the following projects:
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High School expansion - a 2-story expansion that will join the two wings on the east end of the current high school
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Junior High School – in contract negotiations for 47.6 acre tract (multi-campus site) in the Presswood Community located between State Highway 242 and FM 2090.
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Peach Creek Elementary - site negotiations are underway and will be announced soon.
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Greenleaf Elementary - site negotiations are underway and will be announced soon.
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We formed a Fine Arts Council to determine current needs and how to communicate future needs. If you want to join the council, please contact Troy Reynolds at treynolds@splendoraisd.org.
We are also reactivating our Community Bond Steering Committee. We will send an invitation soon to those who served on the committee, but if you want to join, please get in touch with Katie Key at kkey@splendoraisd.org.
As a district, we will continue to work hard to communicate how your money is being spent and are committed to being good stewards of your taxpayer dollars. Thank you for your continued support of Splendora ISD and for investing in our children's future.
Sincerely,
Jeff Burke, Ed.D.
Superintendent
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The Two Propositions
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Proposition A - $201M
- an expansion to the high school
- a junior high school
- two elementary schools to replace Greenleaf and Peach Creek Elementary Schools
- land purchases
- other district improvements
Proposition B - $24M
- 1000-seat performing arts facility and support spaces
What about the taxes?
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- It is estimated that the district's tax rate would increase from $1.3881 to $1.4055 if both props passed (less than 2 pennies).
- The 2022 Homestead Exemption increased from $25K to $40K.
- Homeowners over 65 who have filed their exemption will not see an increase in property taxes associated with this bond.
Tax Impact
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The maximum potential tax impact after all bonds are sold by Splendora ISD is less than a .0174 cents per $100 value of your home, taking the current SISD tax rate of 1.3881 to 1.4055. Use the calculator below to enter your home's value and find the estimated YEARLY increase in your taxes, once all bonds are sold.
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How do I know if I'm registered or where to vote?
Visit the Montgomery County Elections website. From there, you can enter your name and date of birth and find if you are registered, where to vote, and even a sample ballot.
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What were the most recent bond elections and what were they for?
2016 - $30 million
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New elementary campus (Timber Lakes Elementary)
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High school cafeteria expansion/fine arts conversion
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Additional space at the agricultural facility
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Athletic improvements
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Other District wide improvements
2012 - $13.5 million
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High school addition/expansion
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High school athletic annex, conversion of boys’ athletic spaces in high school into girls’ athletics, cheer, and dance dressing facilities
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High school agricultural building improvements
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Junior high expansion
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District improvements
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Land Purchase
2007 - $26 million
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New elementary school with purchase of land (Piney Woods Elementary)
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High school Career and Technical Education (CTE) building
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Peach Creek Elementary roof and renovations
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Splendora Intermediate roof and renovations (currently Instructional Support Services building)
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District wide technology upgrade
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Renovations at Greenleaf Elementary and Splendora Junior High
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Land purchase for future school sites
2002 - $18.7 million
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New high school
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What has the tax rate been over the last five years?
2022 - $1.3881 per $100 valuation
2021 - $1.40552 per $100 valuation
2020 - $1.4051 per $100 valuation
2019 - $1.4984 per $100 valuation
2018 - $1.60 per $100 valuation
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What happens if the Bond doesn't pass?
If the bond doesn't pass, the District will have to purchase portable buildings for classrooms. Portable buildings cost approximately $150,000 each and include electricity and a porch. These can hold two classrooms, approximately 50 students. Money to purchase these buildings will have to be taken out of the Maintenance & Operations (M&O) funds. Four portable buildings (with additional costs of technology and safety/security) will cost approximately $1M, which is equal to a 3% pay increase for our teachers.
The District will have to prioritize the needs of our aging facilities - Greenleaf and Peach Creek Elementary Schools. Funds for these improvements will be taken out of M&O or possibly our fund balance.
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What about owners of ag-exempt property?
For owners of ag-exempt property, taxable value per acre is usually around $180 per acre, not the $10,000-plus that it may be appraised for. If the tax rate would go up 1.7 cents, this would mean on a 500 acre farm that property taxes would go up roughly $15 a year.
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I pay more and more in school taxes every year, so why do you need more?
When more in taxes are received, the State actually lowers their share of our funding and SISD does not see any benefit.
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How will this bond election affect homeowners who are over 65?
School district taxes on resident homesteads may be frozen in the year the taxpayer turns 65 year of age and will not increase as a result of a school bond election.
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What is the difference between the M&O and the Debt Service tax rates?
M&O taxes are used for day-to-day operations; to pay for salaries, supplies, utilities, insurance, fuel, etc. Revenue from the Debt Service tax rate can be used only to retire bonds sold for specific purposes: construction, renovations, buses, portable buildings, land, technology, and the cost of issuing bonds.
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How do taxes pay for school?
A school district’s tax rate consists of two parts: 1) Maintenance and Operations (M&O) and 2) Debt Service (I&S). Maintenance and operations taxes fund the General Operating Fund, which pays for salaries, supplies, utilities, insurance, equipment, and the other costs of day-to-day operations. The Debt Service tax pays off school bonds, somewhat like paying off the mortgage on a house.
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Will my district be able to sell its bonds at a favorable rate?
Your district’s bonds should receive a high rating due primarily to the guarantee by the Texas Permanent School fund. Whether the market will be favorable for your district’s bonds depends on both your district’s bond rating and the current interest rates.
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If the bonds are approved, is the district obligated to spend the money?
No. Voter approval is an authorization for the district to issue bonds. They will be sold in the future only when funds are needed.
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If the bond election is successful, does the school district immediately incur the debt?
The bonds do not cost the district anything until they are sold. Even though the voters approve the bond issue, there are no costs incurred until the bonds are sold.
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What is the difference between a bond authorization and bond sales?
A bond authorization specifies the amount of bonds the district is authorized by the voters to sell. Bond sales may occur over a period of time with the date and amount of each sale determined by the Board on an as-needed basis.
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What is a bond election?
A school bond election gives individuals an opportunity to vote on paying for the construction and renovation of school facilities. It is a request to give the elected Board of Trustees the authority to sell bonds when facilities are needed.
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How can bond money be used?
Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land, and the purchase of equipment, school buses, or vehicles for security purposes.
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How do bonds work?
The sale of bonds begins with an election to authorize a specific amount—the maximum the district is allowed to sell without another election. The school district sells them as municipal bonds when funds are needed for capital projects, usually once or twice a year. The interest rate paid is based on the district’s bond rating: the higher the bond rating, the lower the interest rate to sell the bonds. Principal and interest on the bonds are repaid over an extended period of time with funds from the Debt Service tax rate.
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What are bonds? How long does it take to pay them off?
Bonds for school projects are very similar to a mortgage on a home. To finance construction projects, the district sells bonds to investors who will be paid principal and interest. Payout is limited by law to 40 years. Splendora ISD normally issues bonds in 20-30 year maturities.