As the old saying goes, “A million here, a million there; sooner or later you are talking about real money.”
During its regular meeting June 16, the San Angelo Independent School District Board of Trustees took a vote that will save local taxpayers a projected $80 million.
In the just-completed session, the Legislature passed the largest increase of the homestead-tax exemption in Texas history. It was signed by Gov. Abbott and will be on the ballot for approval by the voters in November.
The measure increased the homestead exemption on ad valorem property taxes from $100,000 to $140,000. It’s a safe bet the voters will approve at the next election.
There is a downside for school districts though. It will reduce the taxable value of property in every school district.
This will hit property-poor districts like San Angelo ISD harder than property-rich districts like Highland Park.
It is projected that the impact on SAISD will be to reduce the taxable value of property in the district by $700 million.
However, the bill also provides a hold-harmless provision for districts facing bond projects like SAISD.
Hold Harmless Would Save Local Taxpayers $80 Million
If SAISD can sell all $370 million worth of bonds by Sept. 1, the state will indemnify the district $80 million to offset the impact of the increased exemption.
Indemnification means the state agrees to protect the district from financial loss.
The catch is that the bonds must be sold, and the first payment on them made, by Sept. 1, 2025.
Any bonds issued after that date are ineligible to receive the hold-harmless payment.
District officials discussed that they had originally planned to have multiple issuances of bonds, not issue them all at once. But the hold-harmless provision changed their timetable.
As Board President Dr. Taylor Kingman said, “The $80 million dollars are the 80 million reasons why we are going to do this all at once…so the local taxpayer and their homestead is not what’s covering the entirety of this.”
The board approved a parameter order, which sets certain maximum terms the superintendent may not exceed to sell the bonds quickly, in order to be eligible for the hold-harmless payment.
The parameters include maximum true-interest cost of 5.75 percent, with a final maturity date of Feb. 15, 2055.
It also gives the district the most flexibility on trying to get the lowest interest rate possible.
Crockett Elementary Addition
The first capital project being financed by the recently passed school-bond election, an addition to Crockett Elementary, opens for bids next week.
San Angelo Independent School District Director of Purchasing Jason Henry presented an update on construction projects. These included updates on the Lake View chiller replacement, renovation of the Alta Loma Data Center, the sewer line replacement at the Oakes campus and the Crockett Elementary addition.
Bids for the Crockett Elementary Addition open June 24. The project includes construction of a new cafeteria, new kitchen, six new classrooms, bathrooms and an alternate two additional classrooms.
All parts and equipment needed for installation of the new chiller at Lake View High School are expected to be on site in August to begin installation.
Conversion of the former Alta Loma Elementary into the district’s new data center are coming along. The district anticipates moving the servers into the facility the week of July the 4th.
The sewer line replacement is proceeding at the Oakes Street Campus and is expected to be completed ahead of schedule.
The board also received an update on academic programs which will be the subject of a separate article next week.
In other business:
- The board was informed that the district was in the process of completing a new lease agreement with the Concho Valley Council of Governments for Head Start. Head Start will use the newer buildings at the recently closed San Jacinto Elementary and cease using Day and Rio Vista Elementary buildings. As part of this, the district has posted four new early childhood part-time positions and Head Start staff will be attending the Learning Palooza this summer with District teachers. Once the transition is complete, the district will take over from Head Start in the afternoon and instruct the children from 1:45 p.m. to 3:15 p.m.
- The district held a public hearing giving notice of its intent to apply for the Federal Every Student Succeeds Act (ESSA) consolidated grant for the 2025-2026 school year. No one was present to speak in opposition. For all three areas of the grant (Title I, Title II and Title III), the district’s total application will be for a grant in the amount of $4,660,583
- The board was informed that the San Angelo Coliseum will not be available for graduation ceremonies for the next two year since the City Bond passed, and the facility will be under renovation. Lake View’s graduation will take place at the Junell Center for the next two years. Dr. Moran mentioned the possibility of moving both high school graduations to the new coliseum once the renovations are complete.
