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SHINER ISD 2020 BOND ELECTION

2020 Shiner ISD Bond Information    
 
Quick Facts     
  1. This is a special type of refinancing bond election that will transfer the lease/purchase payments currently being paid by the Maintenance & Operations budget to the Interest & Sinking budget.
  2. Shiner ISD will free up $1.8 million dollars of their budget through the 2025 school year should the bond pass.
  3. This election will not be a new loan for facilities, but rather a refinancing that is intended to provide no new tax increases.
  4. Shiner ISD has lowered school district tax rates by $.07 since the 2018-2019 school year. 
  5. People over the age of 65 are EXEMPT from any homestead tax increase, so voting for or against the bond will not impact your tax rate.
 
     On Nov. 3, 2020, voters within the Shiner Independent School District will have the opportunity to vote on a bond for the purpose of refinancing existing debt. Currently, Shiner ISD is designated as a property wealthy school district. This means that a portion of local Maintenance & Operations (M&O) tax dollars are recaptured by the State of Texas to be redistributed to property poor districts across the state under the state's wealth equalization program. Currently, Shiner ISD is making debt payments on existing facilities out of the M&O budget side of the school's budget. Shiner ISD has a $.9644 M&O tax rate. M&O taxes are primarily used for staff salaries and the cost to run and maintain existing buildings within the school district. 
     If the bond election passes, the debt on existing facilities will be moved from the Maintenance & Operations side of the annual budget and paid back out of the Interest and Sinking (I&S) side of the Shiner ISD budget.  The Interest and Sinking budget is primarily used to pay down debt on new construction, buses, etc... (Large ticket items).  Local I&S tax collections are NOT subject to the state's wealth equalization program. This means that Shiner ISD would be able to pay down the existing debt on the I&S side of the annual budget that is utilized for debt services, and would not pay down the debt on the M&O side of the budget that is utilized for daily operations and maintenance of the school district.
     It is the intent of Shiner ISD that the issuance of the bonds WILL NOT require an increase in the tax rate on any taxpayer in the district. The district intends to maintain the I&S tax rate at or under the current 2020-2021 I&S tax rate of $.0701. The new bond amounts would be wrapped around existing debt on the I&S side of the budget, and would extend the number of years to pay off the existing debt from 7 to 10 years. This can be accomplished due to the current low interest rates and appropriately restructuring the bonds to stay at or under the current $.0701 tax rate.
     Due to COVID-19, all school bond elections in Texas were postponed from May, 2020. As a result, the district will likely issue LESS bonds than on the ballot as there is less principal to pay down on the existing debt. Though authorized if passed, those excess bonds would remain unissued - and cannot be sold for any other purpose.
 
Summary of Information
1.  Shiner ISD will free up approximately $1.8 million of the Maintenance & Operations budget through 2025 if the bond were to pass.
2.  The election WILL NOT be for a loan for new facilities but rather a refinancing that will hopefully result in NO new tax increases.
3.  The new debt will be paid from the Interest & Sinking budget, which is not subject to state recapture laws.  Your tax dollars will stay local.
4.  This amount could be paid off sooner with low interest rates and increased property values moving forward.
 
 
Important Information
*Shiner ISD cannot promise to keep tax rates the same during the bond election. Tax rates may fluctuate based on current and future property valuation. Shiner ISD has every intention of maintaining the current rate for its constituents. 
 
*Shiner ISD has lowered its tax rate by $.07 since the 2018-2019 school year. It is always our priority to be good stewards of the Shiner Community's tax dollars. 
 
*The ballot will state that by voting for the bond, you are voting for a tax increase. It is Shiner ISD's intent to keep tax rates static with the refinancing bond. The length of payoff may be extended, but the tax rate is expected to remain the same.
 
*If you are over the age of 65, your home property taxes WILL NOT increase if you have filed for the "OVER 65" homestead exemption. This tax freeze is on the homestead only and may be adjusted up if major renovations are done to the property. To qualify, Senior Citizens must request this status in order for their taxes to be frozen. The request is made through the Lavaca County or Gonzales County Appraisal Districts.