What is a bond? A bond is similar to a home mortgage. It is a contract to repay borrowed money with interest over time. Bonds are sold by a school district to competing lenders to raise funds to pay for the costs of construction. renovations and equipment Most school districts in Texas utilize bonds to finance renovations and new facilities
What is a bond election? School districts are required by state law to ask voters for permission to sell bonds to investors in order to raise the capital dollars required for projects such as renovation to existing buildings or building a new school. Essentially, the voters are giving permission for the District to take out a loan and pay that loan back over an extended period of time. much like a family takes out a mortgage loan for their home. A school board calls a bond election so voters can deci de whether or not they want to pay for proposed construction projects.
How can bond funds be used? Bond funds can only be used to repay debt for capital items such as new buildings, additions and renovations to existing facilities, land acquisition, transportation, technology infrastructure and equipment/furniture for new or existing buildings Bonds cannot be used for teacher salaries or operating costs such as util ity bills, supplies, building maintenance, fuel and insurance.
Why does Pflugerville ISD need a bond election? Pflugerville ISO has been classified as a fast growth school district for many years and ths rapid growth is projected to continue. Demographers projected that Pflugerville ISO could enroll approximately 700-800 new students annually, which is nearly the equivalent of an elementary school. This bond will allow Pflugerville ISD to continue to manage this enrollment growth as well as address some of its aging campuses and district-wide safety and security.
Exactly how much is the proposed bond package? The Board of Trustees called a bond election, Proposition A in the amount of $332 million to be brought before voters on November 6, 2018.
What exactly is included in the bond? The November 2018 Bond proposes to build new schools for growth, update aging campuses. purchase a new fleet of school buses, update safety and security systems, provide technology upgrades districtwide, purchase land for future school sites, update fine arts and athletic facilities and more. For a full list, visit Bond Breakdown by Category or Bond Breakdown by Campus. Informational videos about the proposed projects can be viewed here.
How was the bond package developed? The proposals come from a recommendation made by the Oistrict"s Citizens Facilities Advisory Committee made up of Pflugerville ISO taxpayers, including parents and other community leaders, who met over the course of several months, in meetings that were open to the public, to evaluate the needs of the district.
What is a Tax Ratification Election or the P11SD "Swap and Drop?" A school district must hold a Tax Ratification Election (TRE) when it is asking voters to consider raising its Maintenance & Operations (M&O) tax rate above $1.04. The election provides voters the opportunity to approve, or ratify, the higher rate Pflugerville ISD is proposing to increase the M&O tax rate by 2 cents, and at the same time, decrease the Interest and Sinking (l&S), or Debt Service, tax rate by 4 cents, resulting in a two cent decrease to the current tax rate. This type of TRE is often called a "Swap and Drop" because the exchange in pennies also results in a drop to the overall tax rate.
Why would Pflugerville ISO hold a Tax Ratification Election or "Swap and Drop?" The TRE "Swap and Drop" is designed to maximize state funding opportunities and reduce the local tax burden while funding school construction bonds. The state contributes funding based on the M&O rate but not the l&S rate, making pennies on the M&O rate worth more than pennies on the l&S rate. The "Swap and Drop" could allow the school district to receive an additional $4.1 million annually in state funding, which could be used for everyday expenses like salaries, utilities, etc.
What does Proposition B (TRE) say? The Proposition B ballot language is set by law and, for the most part, can't be changed by Pflugerville ISD. Proposition B asks voters to vote For or Against:
Approving the ad valorem tax rate of $1.52 per $100 valuation in Pflugerville Independent School District for the current year, the rate that is $0.02 higher per $100 valuation than the school district rollback tax rate, for the purpose of maintenance and operations, (including a maintenance and operations component of the ad valorem tax rate equal to $1.06 per $100 valuation, a rate that is $0.02 higher than the current maintenance and operations tax rate).
It can be confusing because the ballot language only addresses the Maintenance & Operations tax rate and does not explain that the Interest & Sinking rate will automatically be lowered by 4 cents.
How is a school district's tax rate comprised? Local public school taxes in Texas are comprised of two different rates: Maintenance and Operations, capped at $1.17 (voter approval required to adopt a rate above $1.04), and Interest and Sinking, capped at $0.50. Pflugerville lSD has a current M&O tax rate of $1.04 and l&S tax rate of $0.50 for a total tax rate of $1.54 per $100 of certified property value.
How can Interest and Sinking funds be used? The Interest and Sinking (l&S) rate can only be used for payments associated with voter-approved bonds, which are used to fund longer-term capital improvements like the construction of new schools, facility renovations and transportation.
How can Maintenance and Operations funds be used? The Maintenance and Operations (M&O) rate funds daily costs and reoccurring or consumable expenditures such as teacher salaries, electricity, fuel. supplies. etc. M&O funds have more flexib ility and can also be used to pay back bonds for the construction of schools.
How do increases to property appraisals impact school revenue? Local property appraisals are set by the County Appraisal District, not Pflugerville ISD. Per school finance laws, when local property values increase, the amount of state funding the District receives decreases to equalize the revenue per student. It is meant to ensure that all school districts, regardless of property wealth, receive "substantially equal access to similar revenue per student at similar tax enort." So even though your home value goes up and it seems like the school district should be receiving more money, the district continues to receive essentialty the same funding per student.
How will the proposed Bond and TRE affect my taxes? If voters approve both propositions, there will be a two cent decrease to the current Pflugerville ISO tax rate.
If I am 65 years of age or older how will my taxes be affected? If both propositions are approved, the overall tax rate will drop for everyone. The tax rate will not go up regardless of the election results. However, the tax rate will go down two pennies if the TRE is approved. For people who qualify for an Over-65 or Disabled Person Homestead Exemption, school taxes on their homes will not increase as long as the exemption is in place. School taxes may go below the ceiling, but never above. unless major improvements are made to the homes. For questions about the "Over 65" exemption, contact your local appraisal district.
How does a TRE result in more state funding? A Tax Ratification Election is a provision in school finance to ensure equity for school districts across the state. If a school district has a Maintenance and Operations tax rate above $1.04, the state ensures the district will receive a guaranteed amount of money per student. For Pflugerville ISD, that means the district would receive additional state revenue, approximately $4.1 million annually.
How would an approved TRE affect Pflugerville 15D's payments from previous bonds? Pflugerville ISD's bond payment schedule would not be lengthened as a result of the TRE or "Swap and Drop." The "Swap and Drop" would allow the Board of Trustees to simply change where the pennies are located within the overall tax rate. PflSD has historically assessed an l&S tax rate that provided funding in excess of current legal obligations, allowing for early repayment of debt and savings of interest. Even with a 4-cent reduction in the l&S rate, the district would be able to make early repayments of debt. (Note: Funding generated from the I&S tax rate can only be used to make bond payments. Conversely, funds generated on the M&O side can be used for the maintenance and operations of the school district.) In other words, the bond payments would continue just as they always have. However, following the swap, the state would contribute increased funding that would then also be used to make bond payments (specifically the payments associated with the currently proposed bond package. should it be approved by voters).
Who is eligible to vote in this election? Any registered voter who lives within the school district's boundaries.
How do I know if I'm registered? Look up your voter registration here.
Can I still register to vote in the election? The deadline to register to be eligible to vote in the November 6 election is Tuesday, October 9.
After I have registered, when will I receive my Voter Registration Certificate? You should receive a Voter Registration Certificate within 30 days. On Election Day, please bring your certificate to your local polling place if you have it. However, all that is required is a valid driver's license or photo ID.
When and where can I vote? Early voting begins Monday, Oct. 22 and runs through Friday, Nov. 2 and Election Day is Tuesday, Nov. 6
TRAVIS COUNTY: Early Voting: Registered voters may vote at ANY Early Voting Vote Center in the county. Election Day: Registered voters may vote at ANY Election Day Vote Center in the county.
WILLIAMSON COUNTY: Early Voting: Registered voters may vote at ANY Early Voting Vote Center in the county. Election Day: Registered voters must vote at the location designated for their precinct.
What do I need to bring when I vote? Voters are required to present an acceptable form of photo identification like a driver's license, in order to vote in person in all Texas elections. Read more about photo ID requirements here.