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May 2023 Bond Information Presentation

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Agenda

May 6 Proposition
Growth/Student Enrollment
DSISD Bond Package
Processes and Bond Oversight
Taxes and Financial Impact
Election Information

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PARA OBTENER INFORMACIÓN EN ESPAÑOL, VISITE DSISDBOND.COM O LLAME AL 512.858.3001

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Bond Advocacy Laws in Texas

The purpose of this presentation is to provide factual information and answer questions about the bonds and the projects expected to be financed with the proceeds of the bonds.
According to Section 255.003 of the Election Code, after an election has been called, school districts are limited to sharing factual information only.

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November 2022	May 2023
3 Propositions for $481.1M	One Proposition for $223.7M
Growth and Lifecycle (New Schools and Capital Maintenance) Design & Construction of HS#2 Technology (Devices for Students and Staff)	Growth (New Elementary School and Expansion of Middle School), Capital Improvements and Renovations, Safety and Security, Design of New Schools, Technology Infrastructure, Land, Portables, and Equipment

May 2023 Key Differences:

Includes design only for HS#2
Reduced the total package amount by removing funds to construct HS#2
Eliminated Prop C and other items by utilizing leases and fund balance

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May 2023 Bond Proposition

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May 2023
$223,700,000

Projects	Estimate
Construct Elementary School #6	$66,265,000
Expand Sycamore Springs Middle School	$33,217,000
Design Middle School #3	$4,000,000
Design Elementary #7	$2,500,000
Design High School #2	$10,500,000
New 18+ Facility	$3,413,000
Land for Future Sites	$15,000,000
Capital Improvements (DSES, DSMS, DSHS, RSES) and Safety and Security for all campuses	$82,045,000
Technology Infrastructure	$2,353,000
Replacement Buses	$2,029,000
Portables	$1,114,000
Kitchen Equipment	$1,264,000

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Growth and Student Enrollment

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District Enrollment

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Percentage growth compares official snapshot in 2021 to present enrollment.

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Campus Enrollments

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Percentage growth compares official snapshot in 2021 to present enrollment.

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District Enrollment History by Grade Level

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Enrollment Capacity

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	Years District is projected to be over capacity
	Years New Schools are projected to open

Annual enrollment projections from PASA Demographic Study - May 2022

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Planned Housing Developments in DSISD

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Fastest Growing Single-Family Subdivisions, 2022

Source: PASA Demographic Study - May 2022

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5 Yr Change: 2016-2021 1 Yr Change: 2020-2021 to 2021-2022

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Source: PASA Demographic Study - May 2022

Growth Rate Percentage and Enrollment Comparison �for Area Districts

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May 2023 Package

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Construct Elementary #6

850-Student Capacity to open as soon as 2025-2026
The district is projected to exceed total elementary capacity in 2023
ES#6 Design Committee currently underway

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Expand Sycamore Springs Middle School

Increase Student Capacity from �850 to 1,200
Expansion to open as soon as �2024-2025

Current Enrollment is 1,019

Key Scope Details

Adds more classrooms
Expands cafeteria while maintaining outdoor seating
Expands electives spaces to create more program capacity

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Design Future Schools

Design Elementary School #7, �Middle School #3, and High School #2

Schools designed to district student �capacity standards:�ES = 850�MS = 1,200�HS = 2,500

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DSE Capital Improvements

Key Projects:

Replace HVAC for interior systems
Install fire sprinkler system and fire loop around building
Replace single pane windows
Replace lighting (fixtures, controls, switches, wire, etc.)
Replace VCT with resilient flooring
Repair plumbing
Repair building wastewater line
Install 6’ perimeter fence for security

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Campus Opened in 1987�Building Capacity: 900 �Current Enrollment: 1,006

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DSMS Capital Improvements

Key Projects:

Replace HVAC system �(some elements are 25+ years old)
Lighting (fixtures, controls, switches, wire, etc.)

Some electrical panels are no longer �serviceable (no longer able to source parts)

Install energy-efficient insulation
Replace auxiliary gym bleachers and athletic lockers (many are no longer functional)
Repair foundation in the middle of campus
Fix water drainage problem in main courtyard
Update restrooms

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Campus Opened in 1985�Building Capacity: 1,200 �Current Enrollment: 887 + WSE 5th Grade Classes

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High School Capital Improvements

Key Projects:

Replace 120,000 sf of roofing
Replace competition gym floor and retrofit �gyms with LED lighting
Repair civil site issue at tennis courts
Renovate Life Skills areas
Renovate Health Science classrooms
Update lockers in main building and fieldhouse
Outfit lab spaces for Chemistry

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Campus Opened in 1995�Building Capacity: 2,500 �Current Enrollment: 2,433

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Additional Projects Included

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Safety & Security	New 18+ Facility	Land for Future Sites
Technology Infrastructure	Replacement Buses	Portables
Kitchen Equipment

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Processes and Bond Oversight

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DSISD Long Range Planning Process

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Phase 1

Charged to deliver �a recommendation �to the BOT of district long range facility plan.

Board accepted the committee’s recommendation.

Community Feedback Collected to Validate Recommendation

CBSC took �approved �recommendation �and built proposed bond package.

Board modified the committee’s�recommendation.

Board of Trustees Called for a Bond

Phase 2

LRFP Committee Convened

50 members met 11 times since 2019

Citizens’ �Bond Steering Committee (CBSC) Formed

17 members met 6 times over 2 months

CBSC Recommended a bond package to the Board

LRFPC Recommendation

Presented �to Board

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The Road to Get Here

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Feb 15

Dec 14

Jan 4

Jan 24

Feb 10

Board Workshop #1: Discuss Short- and Long-Term Next Steps	Board Workshop #2: Baselice Presents Results of 3rd-Party Voter Survey	Board Workshop #3: PCR Presents Results of 3rd-Party Project Cost Analysis	Board Workshop #4: Review / Discussion of Package Options	Board of Trustees Unanimously Called a May 2023 Bond Election

May 6�Election Day

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Oversight for Costs & Approvals

Board �Oversight �Process

Bond �Advisory Committee

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Bond Advisory Committee

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Membership

Appointed by the Board
9 voting members
2 alternate members

Purpose

Monitor progress of Bond Projects
Provide transparency and enhance public confidence

Duties and Responsibilities

Advisory to the Board;
Review current status and planned implementation of the Bond program;
Determine whether status and implementation are consistent with the program approved by the voters;
Review reports that track budgets, encumbrances, expenditures, estimated costs, and estimated timelines for completion of each bond project;
Review proposed scope changes of bond projects (including use of unspent bond funds); and
Make recommendations on scope changes and unspent bond funds to the Board.

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Board Project Oversight & Approvals for New Construction/Expansions

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Charrette�to identify instructional & program parameters for the facility

Design Charrette to create a schematic design

Schematic Design�with floor plan and basic imagery

Design Development and refinement

Construction Documents to bid & build from

Guaranteed Maximum Price Developed

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Taxes & Financial Impact

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About School District Bonds

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Texas law provides that a school district must hold an election and get approval from voters to sell bonds and to levy taxes to pay for them.

Bonds are sold to provide funding for capital improvements/ buildings and equipment. The district receives no state assistance for building facilities.

Bond money can be used for new schools/ facilities, expansion and capital renovations, furniture, technology, equipment, buses, new school sites and other necessary land parcels.

Bond money CANNOT be used to fund daily operating costs, (salaries, utilities, supplies, etc.)

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Texas Property Taxes

There is no state income tax in Texas.�
Property taxes provide the largest source of money that local governments use to pay for schools, streets, roads, police, fire protection and many other services.

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Source: Texas State Comptroller website

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The Two Sides of a School District’s Tax Rate

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I&S

Interest & �Sinking

M&O

Maintenance & Operations

DAY-TO-DAY�OPERATIONS

Staff Salaries

Classroom Supplies

Utilities

Programming

Recapture

New Construction

Capital Renovations

Land Purchases

Technology

Equipment

No Recapture

DEBT �SERVICE

DSISD 2022-2023 Total Tax Rate: $1.2929 per $100 of value.

$0.9429�per $100 of value

$0.35�per $100 of value

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DSISD I&S Tax Rate History

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2014 Bond

2018 Bond

2023

Bond

2005

Bond

2007

Bond

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Tax Impact

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2022 I&S Rate	Expected 2023 I&S Rate
$0.35�per $100 of Property Value	$0.35�per $100 of Property Value

With the influx of new properties and increased property values, DSISD expects to finance this bond proposition without increasing the tax rate.

Whether the bond passes or fails, the I&S �tax rate is expected to remain the same.

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Impact on Individual Property Owners

School taxes are a function of property valuations and the school district’s tax rate.
A homeowner’s tax bill may increase as a function of increased �property values.
Property owners should research their own individual taxes to �understand how school district taxes impact their individual tax bills.

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Potential legislative changes regarding property taxes:

Increase to homestead exemption?
Reduction to school M&O tax rates?
Appraisal limits from 10% to 5%?

Any and all of these proposals could impact a property owner’s �tax bill.

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Available Exemptions

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General

Homestead Exemption

$40,000 for School District Taxes

Over 65 Ceiling

Subject to Certain Exceptions, School Taxes are Frozen for Taxpayers who are 65 and over and have a General Homestead Exemption. Property Owners must provide proof of age to the County Appraisal District.

Disabled & Over 65 Resident Homeowners Qualify for an Additional $10,000 for the General Homestead Exemption

Over 65 Ceiling

In general, exemptions require action by property owners to apply and receive the exemption with the County.

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Election Information

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Ballot Language

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State law requires all school bond elections to include in the ballot language “THIS IS A PROPERTY TAX INCREASE.” ��This is because the bond would add debt for the district which will need to be repaid by taxpayers. The passage of the DSISD bond is not expected to result in an increase in the tax rate.

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Election Information

Early Voting

Monday, April 24 - Tuesday, May 2

Election Day�Saturday, May 6, 2023

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Election Locations

Early Voting Locations in the District

Headwaters Amenities Center & Hub

708 Headwaters Blvd.

Election Day Locations in the District

Headwaters Amenities Center & Hub

708 Headwaters Blvd.

Precinct 4 Office, Hays County �195 Roger Hanks Parkway
Fire Station at Belterra Dr. and �Sawyer Ranch

Voters in Hays and Travis Counties can vote at any early voting or election day polling place throughout their county.

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www.DSISDBond.com