GCISD Board Hears Bond Possibilities
Jeff Roberts of Southwest Securities gave a presentation to the GCISD Board Oct. 10, explaining how a bond election might benefit the school district. He said because of the way state recapture regulations are written, school districts can save part of their WADA money and reduce taxes by using bond issues to pay for capital expenditures. Roberts said if the state changes its regulations, he thinks GCISD would be grandfathered.
Roberts used examples based on a hypothetical $2 million bond at 3.50 percent interest and a 3-year issue. He said by issuing bonds to pay for capital items, rather than paying for them out of the schools maintenance and operation budget, the school district could save taxpayers approximately $0.1986 per year in tax rate and the district would not have to send $2.5 million to the state in the form of recapture. Interest on such a bond issue would be slightly over $163,000.
He said his company works with school districts across the state. He said Reagan County recently passed a $3 million bond issue and were able to lower their tax rate from $1.50 to $1.32. He said they would spend the money over three years.
The board decided to form a committee with representatives from the board, faculty, PTO and the community to research what capital items are needed throughout the school system, and then decide where to go from there.
Grounds Maintenance Bids Taken
James Schwartz had the low bid ($960 per month) for 2005-06 school grounds maintenance. Other bids were: Oscar Trevino $1,200, Martha Traga $975 and Sam Clifton $1,016.66 per month.
Superintendent Steve Long reported that the school did not get the bid on the house it recently tried to buy. He said a new clock in the boardroom was a gift from the Hico school district as a thank-you for WADA money from GCISD.