On the evening of March28 (after press deadline for this issue), Patton Springs Independent School District was to hold a town hall to begin a dialogue with its community about the $9.2 million bond proposition that will appear on a May 6 ballot.
Local assessed values have increased for PISD over the past 17 years. However, compression in the schools M&O (Maintenance & Operations) property tax rate has taken place in years 2018–2021, and the district was forced to lower its M&O rate from $1.17 down to $0.9429, thus creating a need to increase the I&S tax rate through a bond in order to bring the total tax rate back to a level nearer to its $ 1.1700 in 2018. The district has given up $0.2271 total pennies in tax rate since 2018, according to a presentation shared by a consulting firm, Live Oak, whose representatives were expected to be on hand to field stakeholders’ questions.
Compression occurs, the presentation explains, when tax rates exceed tax limitations and assessed values and real market values inch closer together. The M&O Tax rate covers teacher salaries, utility bills, learning materials and other ongoing expenses. The I&S tax rate is used exclusively for debt (mostly related to building projects) related to Patton Springs ISD. Taxpayers dictate how that money is spent.
PSID Superintendent Bryan White provided The Texas Spur in advance with the presentation the district was to use Tuesday night ahead of the meeting and answered additional questions for the newspaper about the bond.
According to materials White provided, the bond is divided into two parts: Proposition A, valued at $8.4 million will address district-wide safety and security and additional classrooms; Proposition B, valued at $800,000 will address teacher housing and land acquisition.
How will the bond impact safety and security? The bond will address school safety and security by adding new construction to create connectivity so the students and staff can remain primarily under one roof during the majority of the school day.
Relies heavily on taxable valuations of Galaxy and Cottonwood Solar.
The multi-year bond relies heavily on the expected taxable valuations of Galaxy Digital (successor to Argo Blockchain) and Cottonwood Solar. The district expects taxable valuations from Galaxy Digital to begin in the 23-24 tax year and for Cottonwood Solar in the 2627 tax year.
In the proposed bond election expenses, Galaxy will generate 73 percent of the taxes needed for the bond in 23-24, and by the 26-27 tax year, the combination of Galaxy and Cottonwood Solar will generate 84 percent of the bond revenues.
No tax increase on homesteads for those having Age 65 Homestead Exemption in place. For questions on how to apply, contact Dickens CAD at (806) 623-5228 or file online at dickenscad.org Since much of the taxable valuation will be driven by the two new key industries in the Patton Springs area, if the bond election passes, bonds for the total amount of $9.4 million would not be sold all at once. They will be sold in increments as needed, according to White.
Tax impact on average home value in Patton
Springs ISD area.
If you live in the Patton Springs school district area and your home is valued at $50,000, the monthly increase will be $2.50. The average home in the PSISD area is valued at $93,687. (See chart for a scale of other sample home values.)
One of the key components of the bond election is that there will be no tax increase on homesteads for those having Age 65 Homestead Exemption in place. For questions on how to apply, homeowners should contact Dickens Central Appraisal District at (806) 623-5228 or file online at dickenscad.org.
PSISD is working with consulting firm Live Oak Public Finance, LLC on the bond election. The deadline to register to vote for those 18 and older in the district is April 6.
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