Mesquite ISD trustees approve $600 million bond proposal

This May, the Mesquite Independent School District board of trustees will ask voters to approve a $600 million bond to address safety, security, and aging facilities and equipment.

The Mesquite ISD said the bond package was created through a monthslong community effort with the assistance of a Bond Facility Planning Committee of community members, district employees, teachers, parents, and students.

The package is presented as two propositions:

• Proposition A is a $578.5 million proposal addressing security enhancements, growth, and aging facilities. The prop plans for security upgrades, storm shelters, the consolidation of two older elementary schools, a new pre-K center, bus replacements, campus improvements, and upgrades to the transportation center.
• Proposition B is a $21.5 million proposal for district-wide technology replacements.

Mesquite ISD said if voters approve both propositions on the ballot, the estimated tax impact will be .01 per $100 of home valuation. The average home price in Mesquite ISD is $270,653, but with a homestead exemption, the taxable value is $170,653. This would mean an increase of about $1.42 per month. Residents over 65 or disabled who have an approved homestead exemption will not have their tax rate changed.

For more information, please visit mesquiteisdbond.com.

The election will be held on May 3, and early voting will be held April 22-29. The last day to register to vote is April 3. Check your status here.

HOW ARE TEXAS SCHOOL DISTRICTS FUNDED?

Texas school districts are funded by three sources: Federal money, state money and local taxes. Local taxes comprise two tax rates, Maintenance and Operations (M&O) and Interest and Sinking (I&S), set by the school board. M&O is the money used to pay for the day-to-day operations of a school district, including salaries and professional development, utilities, curriculum, building maintenance, and student services. I&S is the money generated from bonds to pay for new buildings, renovations, security, buses and other large expenses. The I&S tax rate is used to repay the bonds. Funding approved for M&O and I&S projects can't be mixed.

HOW CAN BOND MONEY BE SPENT?

Bond money can only be spent on capital projects like new buildings, renovations, security upgrades, land acquisition, and other non-recurring costs. It can't be spent on salaries, staff, utilities, fuel, or other recurring costs. The money repaid from a bond will include interest over time, generally 30 years. Many districts try to repay their bonds early to save on the interest obligation.

WHAT IS A VATRE?

VATRE stands for Voter Approval Tax Rate Elections. If a district needs to increase funding for salaries, daily operating expenses, or other recurring costs, then they have to ask voters to approve of an increase of the M&O Voter Approved Tax Rate (VATR). Many districts hold VATREs to increase M&O funding because they have a deficit. State legislators have not increased funding for schools since 2019, and with inflation and the addition of unfunded mandates, such as adding an armed officer on each campus, many school districts say they are strapped for cash.

'THIS IS A PROPERTY TAX INCREASE'

A state law requires Texas school districts to include the statement, “This is a property tax increase,” on every ballot proposition. That is true even if the proposition does not increase the tax rate. In their proposals, many Texas school districts say they can issue bonds without increasing the I&S rate. This is often done by taking on new bond debt as old, declining debt is paid off. Read the district's proposal thoroughly to understand whether voting for the bond package will result in a tax rate change. Even without an increase in the tax rate, changes in property tax appraisals could result in a larger tax bill for the property owner.