Bond 18 Flyers

Frequently Asked Questions

What is a schoolhouse bond?

A schoolhouse bond is the primary method many school districts use to pay for capital improvements. It operates similar to a home mortgage. It allows districts to construct, improve, renovate and equip facilities, purchase technology and purchase school sites and then spread the cost over the life, or portion of the life, of the capital improvement.

How were the needs for this bond referendum identified and what amount is needed?

Needs for expanded facilities and renovations were determined through facility assessments by professional engineers and architects and through Citizens Facilities Planning Committee (CFPC) meetings. Priorities were developed by the community committee and the professionals prepared cost estimates for the needs. Many scenarios were evaluated, and consideration was given to additions, renovations, and new facilities. These volunteers were asked to consider the best long-term value to the district when making their recommendations. It was determined by the professionals and Facilities Planning Committee that $437.4 million would be required to fund the current proposed projects.

Who decided on the amount and specifics of the bond proposal?

The GCCISD Board of Trustees made the final determination on the amount and specifics of the bond proposal based on the recommendation of the Citizens Facilities Planning Committee.

What are the plans for the funds?

The funds will be used for many improvements across the District, including:

• construct a new junior school and two new elementary schools,
• replace San Jacinto Elementary,
• construct a new Special Education/Curriculum and Instruction Center,
• upgrade technology district-wide,
• build a Robotics practice arena,
• renovate the Robert E. Lee Auditorium,
• construct Phases 2 and 2A of Stuart Career Tech High School,
• renovate Stallworth Stadium,
• add athletic running tracks to the junior schools,
• upgrade campus security measures,
• build a multipurpose center, and
• add an athletic field house to Stallworth Stadium, as well as complete mechanical, electrical and plumbing projects throughout the district. A full list of projects included in the bond is available on gccisd.net.

How many propositions will be on the ballot?

There will be two propositions.

Proposition One

Proposition One includes projects that address district growth, 21st century learning and facilities needs and improvements. The total for Proposition One is $376,905,000.

Proposition Two

Proposition Two includes the construction of a multipurpose center for district offices, student competitions, graduation, convocation, prom, band, choir, and orchestra concerts and competitions, student learning opportunities and rental facilities. The total for Proposition Two is $60,500,000.

How will this affect me as a homeowner?

Below are the scenarios, based on an average taxable home value of $100,000: Current tax rate: $1.43 Taxes Due: $1,432 Proposition One: Projected Tax Rate: $1.53 Taxes Due: $1,532 Proposition One and Two: Projected Tax Rate: $1.55 Taxes Due: $1,552

In other words, if voters approve both propositions, the average taxpayer would see a tax increase of approximately $10 per month.

How will this affect the taxes of Goose Creek ISD residents older than 65?

School district taxes on resident homesteads are frozen in the year a taxpayer turns 65 years of age and will not increase because of this school bond election.

How can you be sure we will have the growth that is predicted?

The district hired a demographer, Population and Survey Analysts (PASA), to perform student growth projections. Coupled with predictions of 8,000 new homes in the area in the coming 10 years, the demographer predicts that 3,000 more students will be added to Goose Creek CISD schools over the next 10 years.

If the taxable value in the district continues to grow, why must we raise taxes and sell bonds?

The space shortage of the district requires that additional educational space be provided. The cost to provide this new and renovated space exceeds the available revenue at the current tax rate.

Was the 2013 bond successful?

Yes, it was very successful. The 2013 bond projects will be complete this year. The bond will be completed on time and almost $5 million under budget.

How can you be certain that the bond projects will be well managed?

The district’s Facilities Planning and Construction Department has full-time staff to facilitate every process of construction projects. The department has project inspectors, managers, and clerks for a complete oversite of every project.

Additionally, the Board and Administration support the utilization of local industry, business and community expertise, known as the Citizens Bond Advisory Committee (CBAC), in advising the district in the management of a bond program. This process was very successful in the 2005 and 2013 bond programs. A CBAC would be assembled to advise the district.

Why don’t we use the bond money to pay for teacher salaries?

The law is very specific about what bond funds can be used for. Bond money cannot be used for salaries.

Can the San Jacinto Elementary campus be remodeled instead of replaced?

San Jacinto Elementary is on a very small parcel of land – just over 2 acres, versus the average of 15 acres of land that’s necessary for an adequate elementary school. The facility requires ADA-compliant upgrades, the classrooms and library are much smaller than the district’s newer schools, the vehicle circulation is inefficient, and parking is limited. Given the school’s constricted site and outdated design approach, many issues would not be fully addressed by simply renovating the existing building. Renovating the existing campus is significantly more expensive than building a new school on district-owned property near the current location.

What will happen if the bond election does not pass?

The needs will not go away. They will continue and increase in costs (inflation), and the District anticipates it would have to call for another bond election in the future. Note: current interest rates (the cost of borrowing money) have remained at all-time historical lows, providing an optimal time to sell school bonds. It is expected to cost more in the future to finance the capital improvements needed.

Where will the new schools be located?

The junior school will be located near Goose Creek Memorial High School. We anticipate needing one elementary school north of I-10 and another elementary school south of I-10, although both schools are needed to accommodate growth in the northern portion of our community.

What is the timeline for the completion of all bond projects?

Construction projects would likely begin in mid-2018 as design work progresses. The time table for construction will depend in large part on the availability of land, materials and an adequate construction work force. We would make every effort to complete all projects within five years.

Will this bond issue eliminate the need for portable buildings in our district?

It will go a long way in reducing the number of portables being used in the district; however, due to our student growth rate and high mobility rate, we will likely have some portable buildings at some campuses.

Why can’t the district pay for new buildings and improvements out of the operating budget?

School districts in Texas operate under a budget consisting of two tax supported portions. One is the maintenance and operations fund and the other is the debt fund. Tax rates to support both funds are limited by State Law. The maintenance and operations fund support not only maintenance and operations of buildings but also teacher salaries, benefits and supporting programs. The I & S (debt fund) supports larger capital improvements where it is not feasible to pay for an improvement within a given fiscal budget year. The debt is spread out over an extended period much like a homeowner’s mortgage.

How does the bond process work?

Following voter approval of a bond referendum, and only then, with approval of the Board of Trustees, bonds are sold from time to time to investors at a competitive or negotiated sale.

• Bond proceeds are delivered to the school district about five weeks after the bond sale and are invested until spent during the construction process.
• Bond proceeds can be used only for capital improvements and related costs.
• Each year, the Board of Trustees sets a tax rate in two parts. The maintenance and operations rate is used to cover operating costs (salaries, supplies, equipment, insurance, utilities, etc.) while the debt service rate pays off principal and interest due on bonds.

Why do new schools cost so much?

All construction costs for any district facility built, are subject to Gulf Coast market commercial construction rates. Construction inflation typically outpaces general annual inflation as has been reflected in our 2013 bond school construction.

How long does the district have to repay the bonds?

The District can choose an amortization schedule for repayment. Typical pay back periods range from 20 to 30 years. The district currently intends to use a 30-year amortization schedule for this proposed bond, although the final amortization will be determined at the time of issuance for each series of bonds.

Does the district currently owe for any previous schoolhouse bonds?

What is the retirement schedule?

The total outstanding debt as of August 31, 2018 is $639,923,921. This is comprised of outstanding principal payments of $455,177,591 plus outstanding interest payments of $194,746,330. The current debt outstanding is scheduled for retirement in the year 2041.

What is current enrollment for the entire district?

23,539 (as of February 2018)

What is the benefit of having two propositions, as opposed to one larger proposition?

Completing one project out of several does not solve the District’s needs. Thus, all major projects are combined on Proposition One on the ballot. Given the public interest in the multipurpose center, the Board decided to allow the voters to separately vote on that facility.

Will one contractor be hired to do all the work?

Historically, GCCISD has hired several general contractors to construct projects, based on a submission of qualifications and thorough evaluation. This allows the district to select contractors with project-specific experience and for flexibility of project scheduling throughout the bond.

Will one architect be hired for all the design?

Historically, GCCISD has hired several architecture firms to design projects, based on a submission of qualifications and thorough evaluation. This allows the district to select firms with project-specific experience and for flexibility of project scheduling throughout the bond.

Could you provide an estimated breakdown of what funding is potentially available from the state that could offset construction costs included in the proposed bond and the estimated potential impact to the tax rate?

Lawmakers have designated funds to assist local school districts in financing bonds. However, the state has not contributed historically to the GCCISD annual obligation to pay back the bonds.

Will local contractors be allowed to participate in the renovation or construction of facilities proposed in the bond?

Absolutely! It has been the district’s practice to hire any professionals that meet the state and local policies. The School District will follow all state law and local policy in seeking and accepting bids and proposals for professional services related to all areas of the bond projects. This has been common-practice for our current and all previous bond referendums.