Brazosport Independent School District officials are asking voters to approve $167 million in bond debt to pay for “essential” improvements.
District officials say the bonds—estimated to cost $258 million with interest—would require “zero” property tax rate increase, even though the full amount must be repaid with local property taxes.
Two bond propositions are on the May 3 ballot:
—Prop A: $160.9 million ($251.7 million with interest) would be spent on campus renovations, security upgrades, classroom equipment, and new buses.
—Prop B: $6.1 million ($6.8 million with interest) would be spent on technology devices for students and staff, including Chromebooks for testing.
As with all bond propositions, Brazosport ISD’s ballot measures authorize the district to collect property taxes “sufficient, without limit as to rate or amount, to pay the principal and interest on the bonds.”
Brazosport ISD taxpayers currently owe $376 million in outstanding bond debt principal and interest.
The debt repayment (I&S) tax rate is about $0.22 per $100 of taxable assessed valuation. Because I&S taxes are not subject to recapture by the state, the district has an incentive to finance purchases with borrowed bond money.
In pitching the bonds to voters, the district emphasizes that “no tax rate increase” would be required to repay the debt. “Zero.”
“We are proud to propose a plan that addresses critical needs while respecting our taxpayers by maintaining a flat tax rate,” said Superintendent Danny Massey in a press release announcing the bond election.
However, at the same tax rate, residents’ property tax bills will increase as their home values increase.
The district benefits from the presence of big companies like Dow Chemical and Freeport LNG, ostensibly lured to the area with Chapter 313 agreements. The businesses receive breaks on the maintenance and operations portion of their property taxes (with the state replacing the district’s lost revenue), but the breaks don’t apply to the I&S taxes used to repay bonds.
Brazosport ISD credited these “strong industrial investments” for allowing the district to “maximize revenue from bonds without raising the tax rate for our residents.”
Regardless of the tax rate, bonds increase local property tax burdens by the amount of the combined principal and interest.
Thus, Texas law requires school districts to advise voters of the tax impact of bonds by stating on the ballot: “THIS IS A PROPERTY TAX INCREASE.”
Election Day is Saturday, May 3. Early voting is ongoing through Tuesday, April 29.
No ads. No paywalls. No government grants. No corporate masters.
Just real news for real Texans.
Support Texas Scorecard to keep it that way!
