[Note: The “Background” section for both of the Florence ISD propositions is the same.]
Florence ISD faces budgetary challenges common to many Texas public school districts, especially with Maintenance and Operations (M&O) budgets. M&O tax revenues pay for day-to-day operations of school districts, including salaries of teachers, administrators, and support staff. Inflation and mandates from the State Legislature have increased operating costs. The State Legislature’s limited increase to the Basic Student Allotment during the last legislative session (after six years of no increases) has not kept pace with inflation. The Legislature’s continuing tax rate compression measures and a higher homestead exemption keep tax rates lower for property owners, but make it difficult for school districts to raise enough money to cover their operating expenses. Additionally, Florence ISD plans to give teachers and staff a 2% raise to help staff affected by inflation and to keep the district competitive in hiring.
Florence ISD has proposed two ballot propositions to deal with these budget challenges. Proposition A would increase the district’s M&O revenue by raising the M&O tax rate. Proposition B would reduce expenditures from M&O funds by refinancing a debt obligation so the district can service it from its Interest and Sinking (I&S) funds, instead of from M&O funds.
THIS IS A PROPERTY TAX INCREASE.
The issuance of $1,450,000 of refunding bonds for the purpose of refinancing the principal of, interest on, and any redemption premium on that certain previously issued maintenance tax and revenue note of the District designated as the "Florence Independent School District Maintenance Tax and Revenue Note, Series 2015", and the levy and imposition of taxes sufficient to pay the principal of and interest on the bonds.
In Proposition B, Florence ISD proposes issuing refunding bonds to refinance a 2015 debt obligation for capital repairs, renovations, and improvements. This debt was structured as a School Maintenance Tax and Revenue Note, which was scheduled to be serviced using M&O funds.
If Proposition B passes, the $1,380,000 of remaining principal on the original note will be serviced in annual payments of $199,000 to $204,000 over eight years. These payments would be made using I&S funds, rather than M&O funds. This would reduce demands on the district’s M&O budget and allow the district to implement the proposed 2% pay raise for district teachers and staff.
If Proposition B fails, the district will continue to service the 2015 debt using M&O funds. The district would not be able to implement the 2% pay raise for teachers and staff, and the payments for the original obligation would continue to draw on M&O funds.
Website: https://aptg.co/BqzFdp
[Note: The “Background” section for both of the Florence ISD propositions is the same.]
Florence ISD faces budgetary challenges common to many Texas public school districts, especially with Maintenance and Operations (M&O) budgets. M&O tax revenues pay for day-to-day operations of school districts, including salaries of teachers, administrators, and support staff. Inflation and mandates from the State Legislature have increased operating costs. The State Legislature’s limited increase to the Basic Student Allotment during the last legislative session (after six years of no increases) has not kept pace with inflation. The Legislature’s continuing tax rate compression measures and a higher homestead exemption keep tax rates lower for property owners, but make it difficult for school districts to raise enough money to cover their operating expenses. Additionally, Florence ISD plans to give teachers and staff a 2% raise to help staff affected by inflation and to keep the district competitive in hiring.
Florence ISD has proposed two ballot propositions to deal with these budget challenges. Proposition A would increase the district’s M&O revenue by raising the M&O tax rate. Proposition B would reduce expenditures from M&O funds by refinancing a debt obligation so the district can service it from its Interest and Sinking (I&S) funds, instead of from M&O funds.
THIS IS A PROPERTY TAX INCREASE.
The issuance of $1,450,000 of refunding bonds for the purpose of refinancing the principal of, interest on, and any redemption premium on that certain previously issued maintenance tax and revenue note of the District designated as the "Florence Independent School District Maintenance Tax and Revenue Note, Series 2015", and the levy and imposition of taxes sufficient to pay the principal of and interest on the bonds.
In Proposition B, Florence ISD proposes issuing refunding bonds to refinance a 2015 debt obligation for capital repairs, renovations, and improvements. This debt was structured as a School Maintenance Tax and Revenue Note, which was scheduled to be serviced using M&O funds.
If Proposition B passes, the $1,380,000 of remaining principal on the original note will be serviced in annual payments of $199,000 to $204,000 over eight years. These payments would be made using I&S funds, rather than M&O funds. This would reduce demands on the district’s M&O budget and allow the district to implement the proposed 2% pay raise for district teachers and staff.
If Proposition B fails, the district will continue to service the 2015 debt using M&O funds. The district would not be able to implement the 2% pay raise for teachers and staff, and the payments for the original obligation would continue to draw on M&O funds.
Website: https://aptg.co/BqzFdp
