Despite Westlake residents voting down an $89.5 million bond in 2014, the Eanes ISD board of trustees is considering asking voters again to approve a bond in May. The board has discussed numerous topics related to a future bond, including the districts five-year financial forecast, tax rate implications, facilities assessments and other potential needs. Several public forums were held in January to present information and answer questions from district residents, of which 68 percent no longer have children in the school district, according to EISD. "As the board considers calling a bond referendum for a May 2015 election, we are interested in creating a dialogue with the community members from all sectors of the district," said Christy Bybee, chairwoman of the boards subcommittee on community engagement. "We want to engage our community in a more meaningful way and work together to identify strategies to communicate all of the wonderful things going on in our schools as well as the critical needs that we face." EISD Superintendent Tom Leonard stressed the need for another bond to those in attendance at the Jan. 22 forum at West Ridge Middle School. "Although the bond in May [2014] failed, it doesn't mean the needs went away," he said. "In fact, some of the needs have become more critical over time. You have an excellent school district, and I think there is a desire on the community's part to stay in that domain."

Retaining control

Leonard said one of the reasons the district is considering a May bond is the idea of local control. He said he wants the EISD community to be able to determine the quality of the schools, rather than have it be dictated at the state level. "By state law, local bond dollars are not subject to recapture," Leonard said, referring to the court-mandated school financing plan for all school districts in Texas. "Local bond dollars stay in the local school district and give more local control. I believe that is important." Bond money, according to state law, can be used for technology, facility upgrades, buses, new construction and certain infrastructure needs. These are also things that can be paid for using the maintenance and operations, or M&O, budget, which is funded by property taxes. In the 201415 school year the district collected $115,373,245 in property taxes, and $61,833,740, or nearly 54 percent, was recaptured by the state. The district projects recapture payments to increase to 63 percent of collected property taxes by the 201819 school year, which, despite increased valuations of property in the area, would lead to some tough decisions, Leonard said. "We have some critical facility and technology needs that will be funded one way or another," he said. "Our M&O is under stress, and it could affect class sizes. [A bond] is becoming more and more needed. We arent feeling the pressure yet, but it is a reality." Leonard said 85 percent of the M&O budget is used to pay salaries and benefits for EISD employees.

Potential bond items

Leonard stressed at the Jan. 22 forum that the district has not finalized anything for the bond or that a bond will even be called by the Feb. 27 deadline. "There are a lot of items we are looking at for this bond that were on the 2014 bond," he said. "The administration and staff reviewed the items from that bond along with the facilities master plan. We conducted further analysis and spoke with experts to provide insight. The big difference between this bond and the May 2014 bond is there is no new school on this list." The $89.5 million bond that failed in May 2014 included more than $35 million for the construction of a new elementary school. The board established selection criteria for its list of potential projects, including student safety and health, crucial or necessary items, cost-effective items, and items that add value or enrich the educational experience. Leonard presented four categories the board is discussing while contemplating a May bond: Technology, facilities, non-facilities and construction items. "We have to start somewhere," he said. "If something isn't listed, that doesn't mean it wont come up, and if it is listed, that doesn't mean it is under serious consideration."

Potential costs

The EISD tax rate is $1.2125 per $100 of property valuation$1.04 for M&O and 17.25 cents for debt repayments. According to estimates created by EISD the district could pass a $101.5 million bond while maintaining the current repayment rate. "We wanted to be conservative with our estimates," Leonard said. In these estimates the district assumed a growth rate of property valuation several percentage points less than current ratesdecreasing from 6 percent to 2 percent by 2028and a bond interest rate of 4.45 percent. "I believe you want financial sustainability in your district and that you want to match expenditures to revenues while maintaining a reasonable fund balance," he said. "We have stress on our M&O fund, and we are tapping into our fund balance to keep programs and pay staff. Decisions are going to have to be made." According to district projections, if the taxable property value growth rate stays at 7.5 percent, the district adds both students and teachers, increases salaries, pays benefits and includes other expenses, EISD will drop below the recommended fund balance by the 201718 school yearan amount equal to about 25 percent of what it takes to annually operate the district. "We are operating at a $4 million disconnect," Leonard said.

Going forward

Leonard said he believes there are other ways EISD could add revenue, such as seeking more donations, but those conversations haven't yet taken off. "We will always try to raise revenue so we don't have to cut programs," he said. "No decisions have been made about what would be cut, but those talks will be more difficult if a bond doesn't pass than if a bond does pass." The district must call for a bond by Feb. 27 for a May election. If called, early voting would begin April 27, and the election would be May 9.