For the fourth consecutive year, patrons of the Boerne Independent School District will work with a lower tax rate after the board of trustees on Monday voted to adopt the 2022-23 budget.
By a unanimous vote, the trustees approved the $99.52 million maintenance and operations budget that includes across-the-board pay raises, as well as money for other necessities and a projected $5.7 million in recapture funds. The child nutrition fund and debt service budgets also unanimously were approved.
“The board is pleased that the district will reduce its tax rate for the fourth year in a row,” board of trustees President Rich Sena told The Star after the meeting. “Since 2019, the rate has declined from $1.354 to $1.178 and is lower than all neighboring school districts and significantly less than other fast-growth districts in the region.”
Chief Financial Officer Wesley Scott said the budget is not balanced, however, as revenue is projected to be about $98.5 million, or just over $1 million less than appropriations. The majority of the district revenue comes from local taxes and is determined through the tax levy.
“As with every budget, it is a team effort with (Superintendent Tom) Price, our executive leadership and our board of trustees,” Scott said, adding budget workshops take place throughout the year with the board of trustees.
“Although this year’s budget increased to a shade over $99 million, unfortunately due to Boerne ISD falling back into Robin Hood recapture to the tune of almost $6 million, we will be operating with a deficit budget,” he said. “As we always do, we will be extremely fiscally responsible and spend taxpayer money wisely.
“The budget focuses on needs and not wants as we do not have the luxury of having an influx of additional money. Every penny that that is spent is necessary for our district to provide the best-quality education for our students, as well to assist our staff with their needs.”
The primary funding resource is local tax revenue consisting of 87.79 percent of total resources, Scott said.
The proposed tax rate – which officially will be set in August after the district receives firm numbers from local appraisal districts – is projected to be $1.1786 for every $100 of assessed valuation. The adopted 2021-22 rate was $1.2046. The difference is 2.6 cents.
The adopted budget will fund three of the district’s top priorities heading into the new academic year, information stated, including the launching of PTECH (Pathway to Technology Early College High School).
Other key budget items adopted were the compensation increases, including teachers, nurses and librarians receiving a 3.5 percent salary increase as part of the annual step, equating to $2,020 more per year; paraprofessional and professional employees receiving 3.5 percent of their new pay grade midpoint; and auxiliary employees granted a $2-per-hour increase, equating to a 6.5 percent to 12 percent of the mid point increase for these employees.
In addition, the budget also includes five additional School Resource Officers from the Boerne and Fair Oaks Ranch police departments as well as the Kendall County Sheriff’s Office to strengthen safety and security measures at all Boerne ISD facilities. It was noted that each BISD campus will have an SRO beginning this fall.
The new approved budget is 13.9 percent higher than the final amended 2021- 22 budget and 15.1 percent higher than the 2021-22 budget adopted a year ago.
Robin Hood
“Unfortunately, due to large appraisal increases, 2022-23 will see a return of recapture, or Robin Hood, to Boerne ISD,” Sena said. “After paying no recapture this year, close to $6 million of local property taxes will be siphoned by the state into its general fund. We will work hard in the 2023 legislative session, as we have done in past sessions, and advocate for more property tax compression to relieve local property owners from this insidious Robin Hood tax.”
Recapture is the process through which school districts with higher levels of property wealth send some of their local property-tax revenue to the state. The process is often referred to as Robin Hood. The intent of recapture is to help all school districts have roughly similar amounts of money to spend per child.
“It is important to remember that even though appraisal values continue to rise, Boerne ISD will be forced to spend nearly $6 million to the state due to Robin Hood recapture, so we do not reap the benefits of rising appraisal values as one may be led to believe,” Scott said.
Details
As far as the general fund, more than half, or $54 million, will be spent on instruction, which includes teacher salaries. The next-highest chunk is $9.7 million in the plant services area. The next two highest line items are relatively close with the $5.7 million budgeted for recapture and $5.4 million going to school administration. General administration has been allotted almost $4 million and counseling $3.9 million.
Other higher-ticket expenditures are staff development, $3 million; co-curricular activities, $2.85 million; transportation, $2.8 million; data processing, $2.4 million; and instructional administration, $1.5 million.
The trustees also approved the $3.4 million child nutrition budget and a $33.86 million debt service fund budget. The child nutrition budget is balanced, but the debt service fund, as passed, is $1 million in the red. Both of those budgets also primarily are funded by local taxes.
In May, district patrons approved a $135.64 million bond package. It includes an eighth elementary school; expansions at Boerne and Champion high schools as well as at North and South middle schools; portable classrooms where the need exists or will exist; land acquisition; a second access point to Voss Middle School and design work for a third high school; general maintenance, including measures to keep BISD Stadium safe and useable in the short term; network infrastructure and an audio/visual “refresh;” an aquatics learning center; work on the old administration building and Boerne Academy; library hubs at four elementary schools; moving and expanding the district’s operations center; and money for planning, management and contingency fees; and student and staff devices in the eighth elementary school and expansions at the secondary campuses as well as refresh devices at all BISD campuses.
The three budgets combined total $136.8 million.
Tax rate
The projected tax rate is broken down into an 85.46-cent maintenance and operations levy and a 32.4-cent debt service levy. Last year, those amounts were 88.26 and 31.4 cents, respectively. The 1-cent debt service rate is the first time in several years it has been increased.
The levies are for every $100 of assessed valuation.
As late as 2018-19, BISD’s overall tax rate was $1.354. It dropped to $1.284 the following year and to $1.2519 two years ago.
Figures provided by BISD showed estimated total appraised value and total taxable value within BISD’s borders. The total appraised value of all property is $14.31 billion with $494 million of that new property. Total taxable value of all property is listed at $11.04 billion with taxable value of new property equaling $444 million.
All of those values are significantly higher than the preceding tax year.
The information states the average market value of residences this year is $538,597 compared to $446,954 in the preceding year. The average taxable value of residences is $427,879 this year compared to $412,751 the preceding year.
Scott said the proposed M&O levy is the lowest allowable by law. It again is lower this year because of the increased property values within the district.
The district uses five golden pennies in determining its M&O rate. The 5 cents is within the state’s compressed tax rate – the 85.46 cents.
Golden pennies are the first 6 cents of tax effort a district assesses above its compressed rate. These pennies are called golden because they are the pen nies of tax effort for which a district is able to generate the highest level of supplemental funding, information from the Texas Education Agency states.
BISD could use a sixth penny, but it would need voter approval.
What’s next?
In July, BISD should receive certified values from local appraisal districts, which then are forwarded to the Texas Education Agency.
TEA then will project what the state values will be and will compress the tax rate into what the district can adopt. The theory behind that is as property values rise, the tax rate falls – which does not compute to lower taxes.
The actual rate could vary slightly from the rate presented Monday.
The district then will conduct a tax rate hearing in August and formally adopt the final rate.
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