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I would like to know the status of all the old bonds the school has. When will they be retired?
The District currently has seven series of bonds outstanding in a total aggregate principal amount of $94,023,565. While each series of bonds will be retired at different times, the final maturity of the District’s existing debt portfolio is August 1, 2035. The District’s total debt portfolio has been structured to allow for approximately equal annual debt service payments each year. Therefore, there is not a decline in the District’s annual debt service requirements as each series of bonds is retired.
For a more detailed view of the District’s outstanding bonds, please see page 4 of the “Preliminary Tax Rate Impact Analysis - New Bond Program” located on the District’s Web site:
http://www.a1edo.k12.rx.us/aisdweb/PDF/Aledo%20ISD%20Prelim%202008%20Bond%20Program.pdf
If they are due to be retired in the next few years, do we need to fully fund the entire project with new bonds? Why not only partially fund the new project and redirect the money that would be freed up from those paid off debts?
Pursuant to State law, the District may only levy an Interest & Sinking Fund tax rate for the repayment of bonds or other debt obligations approved by the voters of the District. Therefore, the District does not have the legal authority to levy an Interest & Sinking Fund tax rate for the direct repayment of project costs.
What will be the financial impact of the bonds on property owners who are under 65 years of age?
The cost of the 2008 bond program will be reflected on the District’s Interest & Sinking Fund tax rate, the portion of the District’s tax rate used for the payment of bonds. The District’s Interest & Sinking Fund tax rate is projected to increase by 4.15 cents per year in each of the next two years (i.e. years 2008/09 and 2009/10), for a total tax increase of 8.3 cents. Based upon the average market home value of $225,360 within the District, the projected
Interest & Sinking Fund tax impact of the 2008 bond program is $87.30 in year 2008/09 and an additional $87.30 in year 2009/10, for a total impact of $174.60. This equates to an approximate tax increase of $14.55 per month or 48 cents per day once the 2008 bond program is completely phased-in.
What impact do experts predict the development of the Walsh Ranch will have on the school district?
According to projections provided by the North Central Texas Council of Governments the population of Parker County is projected to increase by 243 percent from a 2005 population of 95,630 to 328,420 by 2030. Economics Research Associates projected the population of the Walsh Ranch at build-out to be more than 46,000 people with a taxable value of over $4.5 billion.
The Aledo ISD and Malcolm Louden, president of Walsh Ranches Ltd., have agreed on nine elementary and two middle school sites to serve the portion of the Walsh Ranch that is located in the AISD.
Other developments with approved or submitted concept plans include: the Brown Ranch (4,100 residences), Mary’s Creek Ranch (2,116 residences), Dean Ranch Center (3,600 single family and 630 multi-family residences for a projected population of 12,060). School sites to serve the population of these developments have been requested. The economic impact of these and other developments occurring within the Aledo ISD will offset the financial burden created by the increased population.
What is the overall vision of the Board to handle this growth? Is the goal for all high schools (present and future) to remain at a 4A level? Is there a benefit of staying at 4A instead of 3A or 5A?
A. While other districts have chosen to pass larger bond proposals to deal with growth, the Aledo ISD Board of Trustees believes it can provide quality facilities at a better price by proposing smaller more frequent bond elections to accommodate the district’s growth.
For example, the Prosper ISD, a small 3A District east of Denton, recently passed a $710 million bond proposal to fund future construction projects.
While having the financial flexibility available to meet the needs of a growing district has merit, the inflation factor alone makes it next to impossible to project the cost of an elementary school in 2018. According to the February, 2008, issue of “School Planning and Management,” the cost per square foot has increased 65 percent for high schools, 62.5 percent for middle schools and 63.7 percent for elementary schools since 1995. The same article states that the one-year increase from schools completed in 2006 ($151.52 per square foot) to those completed in 2007 ($171.43 per sq. ft.) was a whopping 13 percent. Based on the current inflation rate, an elementary school that costs $15 million to build today would cost $46.5 million in 2018.
It is the Aledo Board of Trustees’ vision to provide every child with a quality education in a warm, caring, safe and clean environment while minimizing the financial impact to the tax payer.
B. The University Interscholastic League (UIL) determines what classification a high school will compete in based on the total number of students enrolled in grades 9-12. Classifications range from 1A (99 students and below) to 5A (2,085 students and up). The enrollment for class 4A ranges from 980 to 2,084. The top figure of 2,084 represents a 12 percent increase from the top enrollment of 1,864 in 2000. The top 4A enrollment figure is predicted to reach 2,500 by 2015. The Aledo ISD Board of Trustees has adopted a feeder plan (shown below) that provides for a maximum high school enrollment of approximately 2,400 students.
5 Elementary Schools – 100 to 120 fifth grade students from each elementary campus to;
1 Sixth Grade – 500 to 600 sixth grade students to;
1 Middle School – 1,000 to1,200 seventh and eighth grade students to;
1 Ninth Grade – 500 to 600 ninth grade students to;
1 High School – 1,500 to 1,800 10th-12th grade students.
The feeder pattern for future high schools will follow the same design.
C. The benefits of remaining at the 4A classification include:
Course Offerings – Student enrollment is sufficient to support advanced course offerings in English, math, science and social studies as well as multiple offerings in foreign languages, technology, fine arts and vocational education.
Student-Teacher Relationships – With a smaller student body, the staff has the benefit of knowing each students needs. Relationships are developed which creates a sense of belonging and promotes a common purpose-Student Success.
Participation – Students have a greater opportunity to participate in school activities. Regardless if there are 1,500 students or 3,500 students, there is still just one valedictorian, 10 members of the top 10 and five starters in basketball. Research shows that students who participate in school activities are more motivated to achieve and experience greater academic success.
What is the time line for a second high school? What about other schools (elementary and middle)?
A. The Board of Trustees purchased 132 acres on Old Weatherford Road in December, 2007. The property will be utilized for the second high school campus which is projected for 2017.
B. A second middle school, sixth grade intermediate and at least two additional elementary schools are projected for construction between 2012 and 2015.
Will the ninth grade center service the second high school?
The District’s instructional feeder pattern includes a ninth grade campus at each high school. Ninth grade students participate in band, choir, theater arts and athletics with other high school students, but benefit from more individualized instruction and smaller classes void of upper class men that may be repeating the course for the second or third time. The alternative to a ninth grade campus is to super-size the high school to accommodate 2,400 students. Ninth graders then become 1 of 2,400 instead of 1 to 600.
If growth is dictating a ninth grade center, how long will it be before the middle school is at capacity?
The current middle school enrollment is 695 with a maximum capacity of 1,200. A second middle school is projected for 2012 to be 1,015 students.
What is the dollar impact of the proposed bond issue on those residents 65 and over?
Under current law residents over the age of 65 who have filed for the “Over 65 Homestead Exemption” will not see a tax increase. Increases in property value will no longer result in a tax increase for these tax payers. The new ceiling is on the dollar amount paid, not the rate or taxable value. The only exception is if improvements are made to a home.
Some school districts have handled growth by the use of portable buildings. I would assume that those are a more cost effective approach to handling growth than building new facilities. Has the board considered this option?
Portable buildings are utilized by most school districts, including the Aledo I.S.D., as a short term solution to rapid growth. Portables are not, however, a viable long-term solution for student growth. While portables temporarily fill the need for classroom space, core facilities, such as, library, cafeteria, and gyms, will not accommodate the increased student population. In addition, new state facility standards require the inclusion of restrooms in all portables, which creates the need to extend water and sewer to each portable, driving the cost per portable (2 classrooms) to over $100,000, excluding the cost to run electricity, covered sidewalks, construct handicapped ramps, and purchase furniture for the facility.
The manner in which portables must be purchased creates a huge negative impact on the District’s M & O (maintenance and operation) budget. The M & O budget is funded from revenue raised by that portion of the District’s local property tax ($1.04 maximum allowed by the state) designed to operate and maintain the District’s schools. The Governor of Texas has mandated that 65% of a District’s general operating budget be expensed directly for instruction. The remaining 35% of the general operating budget must cover all other costs, such as student health services, teacher training, school buses and fuel, maintenance and repair of facilities, utility costs, child nutrition services, data processing, and more. When purchasing temporary portable buildings, the District must make room in the available 35% of its general budget to purchase, transport and set-up these structures. The expense of portable buildings reduces the amount of available resources needed in many areas of the District’s daily operation and the impact can be dramatic, resulting in the elimination or reduction of programs, services and creating a situation where the District is unable to maintain the 65 to 35 expenditure ratio required by the state.
Why not just add on to the current high school?
Additional classrooms could be added to the high school, but like with portables, the core facilities, library, cafeteria, gyms, band hall and restrooms, would have to be duplicated or expanded to accommodate the additional students and meet state facility standards. The cost to expand the facility ends up costing more because it takes longer to complete with students in the building and the educational benefits a ninth grade campus creates for our students would be lost.
