School bond election set for May 4

Funds earmarked for new construction, facilities renovation, new school buses

Sulphur Bluff ISD has called for a bond election, set for Saturday, May 4, to fund “the construction, renovation, improvement, acquisition and equipment of school buildings in the district, including necessary sites, and the purchase of new school buses, and the levying of a tax sufficient, without limit as to rate or amount, to pay the principal of and interest of the bonds and to pay the costs of any credit agreements executed or authorized in anticipation of, in relation to, or in connection with the bonds; this is a property tax increase.”

The total amount for the 2024 bond is $6 million.

“This is a once in a lifetime opportunity,” said Superintendent Dustin Carr. “It’s the best time possible, since solar farm values have doubled the district’s tax base, which allows us to minimize the impact on our taxpayers.”

What’s the bond for?

The proposed bond will address the following items:

„ Purchase of approximately 11 acres, located directly behind the campus, which will house the planned agriculture mechanics pavilion, along with a running track that will be for both school and community use. Carr said track students currently run on FM 3550 during after school pickup, which is a safety issue;

„ Construction of a career and technical education addition, which will contain a culinary area and classrooms, as well as a forensic education space with classrooms and labs and a health technology area;

„ Updating the elementary school playground equipment, which is approximately 20 years old:

„ Upgraded parking;

„ Updating the current agriculture ventilation system. Carr said the only way to vent the ag shop now is to open the bay doors, which creates a security issue;

„ A secured entry vestibule, now required under the 2023 TEA mandate requiring that all public and open-enrollment charter schools install entry-resistant security films on ground level windows, doors and glass entranceways. Between the bond and a grant from Texas Education Agency, SBISD will also upgrade its security cameras, doors and fencing; and

„ General repairs and upgrades to facilities.

Timeline of events

Officials began exploring options to address existing facility needs in June 2023. According to information on the district website, the completion of the Hopkins Energy factored into the decision, allowing the district to address the proposed projects at a significantly reduced tax rate impact. Recent Maintenance and Operations (M&O) tax rate compression reduced the district’s tax rate by $0.2189 in August 2023, which further reduces the total tax impact of a potential bond election.

After consulting with the district’s financial advisor, the Board of Trustees formally called the bond election in the amount of $6 million at the Feb. 15, 2024 regular meeting.

A community town hall meeting will be held on Thursday, April 18 at 5:30 p.m. in the school cafeteria.

Financial implications

SBISD currently has $235,000 of outstanding principal on prior voted debt obligations and $10,785 of outstanding interest at the ad valorem debt service tax rate of $0.0700 per $100 of taxable assessed valuation.

If the proposed bonds are approved and issued, the total tax rate is estimated to be $0.2200 per $100 of taxable assessed valuation — the current debt service rate $0.0700 plus an expected additional tax rate of $0.1500 attributable to the bonds.

If the bonds are issued, the district’s overall tax rate is expected to be $1.0055 per $100 of taxable assessed valuation, which is comprised of the expected debt service tax rate of $0.2200 per $100 of taxable assessed valuation, plus the most recently adopted maintenance and operations tax rate of $0.7855. The total tax rate with the proposed bond is $0.0689 less than the 2023 rate.

If the bond proposition passes, the 2024 breakdown will be as follows:

2024 Bond

„ Principal amount, $6,000,000.00

„ Estimated interest, $4,127,222.22

„ Combined estimated amount, $10,127,222.22

Existing Debt

„ Principal amount, $235,000

„ Estimated interest, $10,785

„ Combined Estimated Amount For Existing Debt, $245,785,000 The estimated debt will be split between three types of taxes — Local Resident Values at 57.86%, Solar Farm Values at 18.38% and Commercial, Utility and Industrial Values at 23.76%.

Voting dates and times

Thursday, April 4 is the last day to register to vote in the May 4 election. Early voting begins Monday, April 22 and will run each weekday through Tuesday, April 30 from 8 a.m. to 5 p.m. at the Sulphur Bluff ISD Administration office, located at 1027 County Road 3550 in Sulphur Bluff, Texas. Election Day voting on Saturday, May 4 will be held in the gymnasium foyer from 7 a.m. to 7 p.m. at the same address.

Download or view SBISD’s bond presentation at https://www.sulphurbluffisd. net/375825_2.