December 7, 2007
Growth Impact supports $86.7 million

The Hays CISD Growth Impact Committee on Thursday gave a near unanimous endorsement of an $86.7 million bond package on a 30-year note, which includes two new elementary schools a new middle school, the purchase of land, buses and technology and $7.1 million in district-wide improvements. The tax rate impact of the package is projected to be zero.

The committee will make its recommendation to the School Board, along with a recommendation for elementary school attendance zones for the 2008-09 school year, at the December 17 meeting. A public hearing on both recommendations will be conducted prior to the January 28, 2008, School Board meeting, when the Board will vote on the recommendations.

Much of the discussion during the meeting centered on two package options—the one the committee selected and a larger package, $95.6 million, based on 35-year bonds.

“It’s been almost two years since I’ve really seen the negative articles, because we’ve done what we said we were going to do,” said Kevin Foley, a member of the committee. “I think people in Hays are starting to see the growth. All we’re doing (by going with the 35-year bonds) is allowing us a little room. We can make massive improvements to all campuses and that is something the community will see. I think we’re shooting ourselves short if we went for anything less.”

Foley proposed adding $2 million for district-wide improvements to the $86.7 million package and spreading the debt over 35 years.

“If we were not going to do another bond in five or seven years, the larger package is the way to go,” said Dr. Kirk London, Superintendent of Hays CISD. “But if we’re going to have to come back in two to three years, which is probably the case based on our enrollment projections, the next package could be $150 million and we may need the 35-year bonds. I may need those extra five years and those extra pennies. I’m looking long term.”

“When you look at what’s happening in the community in terms of growth, the perception is phenomenal,” said David Walsh, a member of the committee. “I’m kind of for looking at the package (that includes four new elementary schools) for a three or four-cent tax increase. I would hate to miss that opportunity to sell. The cost of building schools in the future is going to be more expensive that it is today.”

“Your comments are very good, but they’re one bond early,” Dr. London said. “This one, we can do for $80 or $90 million at no tax rate increase. The next one will have a high school in it and we’re going to need those pennies. We’re going to need them, but we’ll need them more in three years.”

The Growth Impact Committee is a group of 35 parents, members of the community and representatives of the district that has been meeting twice a month since October to determine recommendations to the School Board regarding attendance zone boundaries for elementary schools and a bond package to address increasing enrollment.

The elementary attendance zone map (pdf version) may be viewed at the following link: http://www.hayscisd.net/growth/AZmaps/Recommended_Elem_12_07.pdf

Input from parents and community members on the attendance zone proposal is welcome and encouraged. An email address: GrowthImpact@hayscisd.net is available. If you do not have access to the Internet and are interested in viewing a map or giving input, or both, please call 268.2141, ext. 6090.

back to top

November 30, 2007
Growth Impact looks at bond options

After considerable discussion on Thursday by the Hays CISD Growth Impact Committee, decisions about the next bond package really came down to one thing: 30-year or 35 year bonds.

“To me, the non-negotiables are three new schools—two elementaries and one middle,” said Dr. Kirk London, Superintendent of Hays CISD. “Basically, the amount of the bond package is determined by how we structure our debt. The first three options have zero tax rate impact. One option is 25-year bonds, one is 30-year bonds and one is 35-year bonds.”

The three options are: $75 million for two elementary schools, one middle school, purchase of land for future sites, buses, technology/security, and district-wide improvements on a 25-year bond; $86.7 million for the same package, plus additional funds for the purchase of land and district-wide improvements on a 30-year bond; and $95.6 million for the same package as Option 2, plus a $3.5 million transportation facility on the west side of Interstate 35, and additional funds for technology, purchase of sites for new schools and district-wide improvements. Whichever package the committee settles on, the ballot would probably reflect one proposition, Dr. London said.

The Growth Impact Committee is a group of 35 parents, members of the community and representatives of the district that has been meeting twice a month since October to determine recommendations to the School Board regarding attendance zone boundaries for elementary schools and a bond package to address increasing enrollment.

On Thursday, a fourth option for the bond package was also offered, for $130.6 million at a tax rate increase of 7 cents per $100 valuation, but the Growth Impact Committee agreed to eliminate it because of the tax rate increase.

“Because of our growth, we’re able to fund a lot of things without a tax rate impact,” Dr. London said. “It doesn’t make much sense to use up all of our capacity. Our School Board has said we would rather have another bond in two to three years, because of the growth in our tax base, the next bond package may also be at no additional tax impact.”

Dr. London addressed the specifics of the packages.

“We have to continue to buy land,” he said. “Even though we know we won’t need it for another 10 years, it is wise to purchase it now for either future school sites, or to sell and use the money for future school sites.”

On buses, technology and security, he said, “we know we’re going to have to do that. In our situation as a Chapter 42 district, it is much better to pay for things through a bond. This doesn’t have any additional tax impact. Otherwise we have to raise taxes on the M&O (maintenance and operations) side.”

Dr. London was queried about specifics of the district-wide improvements.

“A lot of schools have some really serious parking and traffic issues,” he said, citing Dahlstrom Middle School, Elm Grove Elementary School, Fuentes Elementary School and Wallace Middle School. “We need to do some things to improve this.”

Other improvements include: upgrades to all of the middle school tracks except Chapa, to competition level, HVAC improvements, roof replacements, and athletic facilities improvements. The list of facilities needs was developed by the superintendent, chief financial officer and the district construction director, with input from campus administrators, architects and engineers.

“We shot ourselves short last time,” said Kevin Foley, who served on the Growth Impact Committee for the November 2006 bond. Foley urged the committee to consider the $95.6 million package at zero tax rate impact, over 35 years. “It’s foolish, when we have a chance to expand (the bond package) as much as we can at zero tax impact now. I would rather see us do as much as we can with zero tax impact and get this school district not just up to par, but ahead of par, and build on that.”

“I like the 30-year package because I know we’re going to have to come back in three years,” Dr. London said. “If we take it a little more conservatively, that saves five years worth of capacity that we can use in the next bond. I want to do the next bond at no tax rate impact. We never lose the capacity.”

“We have to consider the psychology of voting in this community,” said Eugene Lusby, who also served on the November 2006 Growth Impact Committee. “$90 million turns some people off.”

“We need to prove that we have been responsible all of the time with earlier bond packages,” said Merideth Keller, who also served on the November 2006 Growth Impact Committee. “We need to show that we have done a good job and have stayed within the budget.”

“We wouldn’t be in the positive situation we’re in now if we were being irresponsible with our money and finances,” Foley said. “No one can question what we’re doing.”

The Growth Impact Committee decided to meet on December 6, to come to consensus on a bond package to recommend to the School Board.

At the beginning of the meeting, the committee agreed to a map of elementary school attendance zone boundaries to recommend to the School Board. A public hearing on the elementary attendance zone recommendation will be conducted prior to the January 28, 2008, School Board meeting. No middle school or high school boundaries change. The elementary attendance zone map may be viewed by using this link.  

Input from parents and community members on the attendance zone proposal is welcome and encouraged. An email address: GrowthImpact@hayscisd.net is available. If you do not have access to the Internet and are interested in viewing a map or giving input, or both, please call 268.2141, ext. 6090.

back to top

November 9, 2007
Growth Impact Committee hears financial overview

The district’s Growth Impact Committee on Thursday learned that based on conservative financial assumptions, Hays CISD can take on a $75-$86 million bond package with no increase in the tax rate.

Bill Gumbert, with RBC Capital Markets, the district’s financial advisor, told the committee on Thursday that $75 - $86 million in new bonds for construction could be issued over a 25-30 year loan with zero tax rate impact.

“Most districts in the state don’t have the capacity we do, have the enrollment growth and have the economic development we have,” said Dr. Kirk London, Superintendent of Hays CISD. “If we continue to have our commercial side grow faster than our student side, it builds more capacity in our system. We can use it for future bonds, or pay off the bonds faster.”

Gumbert noted the $46.3 million in bonds approved by voters in November 2006 were sold in January 2007 at an interest rate “which is among the lowest I’ve seen in 20 years.”

As taxable valuations in the district grew and as state funding occurred, we wanted the ability to pre-pay those bonds without penalty,” Gumbert said. “We were able to redeem $1 million just this year. The district has been very active in managing their debt portfolio and minimizing the amount to the taxpayer.”

Gumbert said the district remains in an excellent position to maximize state funding assistance; currently about 33 percent of the debt service is paid through state funding.

“The maximum tax rate is declining in future years, which puts the district in an excellent position for a new bond program without impacting the tax rate,” he said.

Dr. London endorsed the advisor’s conservative scenario, which includes: an interest rate of 5.5 percent, no planned funding assistance from the state, and a property tax base increase of $300 million only for five years.

“You need to feel good about what we’re doing,” Dr. London said. “We’re not causing problems for future generations of our schools. We’re being more conservative than we even thought about. Our enrollment numbers may slow down, but I have no indications that our economic values will go down.”

“As more people have come into the district, now you’re seeing more commercial taxable value,” Gumbert said. “We’ve only assumed $300 million of growth per year, which is what the average has been.”

 “Knowing this community, the longer we can go to take care of our growth at no additional tax impact, the better,” said Mike Blackwell, a member of the Growth Impact Committee.

“One of the things we have to do is get our community out to vote,” said Kevin Foley, a member of the Growth Impact Committee. “We would hate to lose something like this at no tax increase because people are lackadaisical about voting.”

Gumbert said the major reason bond elections fail is voter apathy.

“I’ve got two districts I talked with on the way up here, nothing controversial, but it was on a Tuesday and voter apathy set in.”

“If you think about what we’re achieving for no tax rate increase,” Foley said. “That’s why I volunteered to serve and will continue to volunteer. The kids are coming and they’re not going to stop. We’ve actually caught up, and started going forward ahead of the growth.

At the next meeting, November 29 at Science Hall Elementary School, Dr. London said, he will bring four options to the committee to consider.

“Three of the options will be with these scenarios at no tax rate impact and the fourth option will raise the tax rate somewhat,” he said. “I recommend right now that we do something with no tax impact and save that capacity for future bonds when we need to build a new high school. We can do everything we need to do at no tax impact. Tax rates are lower than they have been in forever.”

Dr. London said the options will include two new elementary schools, a new middle school plus district improvements to be discussed and decided upon by the Growth Impact Committee.

On Thursday, the committee also looked at a revised map of attendance zones for elementary schools for the 2008-09 school year. They will consider a recommendation on attendance zones for the School Board at the November 29 meeting.

back to top

October 26, 2007
GIC reviews elementary attendance zones

The district’s Growth Impact Committee on Thursday looked at a proposal by School District Strategies, the district demographer, for 11 elementary attendance zones, beginning with the 2008-09 school year.

Committee members made adjustments to the proposal, which will be reflected in a new map to be distributed at the next meeting on Nov. 8. The demographer’s proposal may be viewed on the district’s website.  
link to 10-25-07 GIC meeting minutes with proposal & additional documents

The elementary zones are being redrawn to accommodate the opening of two new schools, Blanco Vista Elementary, which is located about one-half mile across Old Stagecoach Road from the Blanco River’s 5-Mile Dam, and Camino Real Elementary School, which is located on Rohde Road, off FM 2001. Blanco Vista Elementary is in the city limits of San Marcos and Camino Real is in the city limits of Niederwald. Both are in the boundaries of Hays CISD.

The committee looked at enrollment projections district-wide, particularly at the elementary level.

“For the five years I’ve been here, the projections are much closer to the high-growth scenario, even with the recent downturn in housing,” said Dr. Kirk London, Superintendent of Hays CISD.

High-growth scenario places district enrollment at 17,216 in 2010, a 32 percent rise from the district’s current enrollment of 13,000. Based on home closing projections, elementary school enrollment is expected to be 8,850, compared to a current elementary enrollment of 6,652.

Dr. London said the Growth Impact Committee’s attendance zone recommendations would correct some of the overcrowding at Tobias Elementary, Hemphill Elementary, Science Hall Elementary and Green Elementary, with the opening of Camino Real and Blanco Vista elementary schools.

He said the enrollment at Tobias Elementary is of great concern, because it’s growing so fast. Blanco Vista Elementary will relieve Tobias Elementary greatly, he said, and it is the district’s desire to move more students from Kyle Elementary into Blanco Vista, too.

The committee looked at future growth beyond the two new elementary schools. Dr. London said the growth spurts will be in the Elm Grove/Buda Elementary area and near Green Elementary. The Sunfield development, which is very close to Green Elementary, includes more than 7,000 new homes over the next 15 years. He said projections have three elementary schools and one middle school in that subdivision over the next 15 years, and the developer is working closely with the school district in terms of donation of sites for schools. Dr. London suggested the committee consider keeping the Sunfield development inside the Green Elementary attendance zone boundaries.

“There are very few people in that area now,” he said. “If we move them to Camino Real, we’ll have to turn right around in two years and move them again.”

He said that while Camino Real will provide relief to Green, Science Hall and Hemphill elementary schools, it can also serve as an overflow school for Elm Grove and Buda elementary schools until another elementary school is built in that area.

“We really do try to allow elementary students to go where they want to go as long as there’s room,” he said. “The majority of our parents were excited to go to Science Hall Elementary School (when it opened in August 2006), and they are doing very well. Negley Elementary is the same way and I expect Camino Real and Blanco Vista to be the same. “

The proposed Blanco Vista lines include students on both sides of Interstate 35, he noted. With the Yarrington Road overpass complete, travel from the east side of I-35 to the west side (where Blanco Vista is located) will include much less time on the interstate and will be quicker, he said. Also, students who live on Lime Kiln Road, who currently ride the bus from 45 minutes to an hour to get to and from Tobias Elementary School, will have their travel time cut in half to get to Blanco Vista Elementary School.

The Growth Impact Committee will begin the Nov. 8 meeting reviewing the latest elementary attendance zone map, and work toward consensus on a recommendation to the School Board. A public hearing will be scheduled prior to the School Board meeting when the recommendation will be made.

back to top