Tax value gains could lower bond rate

Grapevine-Colleyville district officials said the recent increase in property tax appraisals would likely lead to a lower tax rate increase with the proposed $249 million bond package, if residents vote May 7 in favor of the plan.

DaiAnn Mooney, chief financial officer, said that the district’s financial advisor calculated a 12.81 cent tax rate increase to pay for the bond on a conservative 3 percent growth rate for this year. Based on the increases GCISD homeowners are seeing in their property values, Mooney expects the actual growth to be more than double the projected amount.

The growth coupled with low interest rates could produce a lower tax rate increase to fund the approved amount. Mooney said officials used a 4.5 percent interest rate in planning the bond, but a recent GCISD bond refunding was at 2.5 percent interest.

In February, trustees decided to put a $248,975,000 bond package on the May ballot.

The new facilities on the list include $33.6 million to rebuild most of Cannon Elementary School, $32.8 million for indoor practice buildings at Colleyville Heritage and Grapevine high schools and $9.1 million for additions at Grapevine Elementary, Timberline Elementary and Grapevine Middle School.

The rest of the package is composed of $30.9 million in security and safety upgrades like controlled entry and surveillance cameras; $76.4 million for infrastructure improvements that include replacing aging HVAC units, upgrading technology networks, improving disability access and new playgrounds, buses and kitchen equipment; and $62.2 million for classroom enhancements like technology, collaborative spaces and new furniture.

The proposal is almost double the amount of the last bond, a $124.5 million issue approved by voters in 2011.

Grapevine-Colleyville is a “Robin Hood” district, which means it is subject to the state’s recapture policy where property wealthy districts send money back to be redistributed to less prosperous districts.

Mooney said that the district sends about 19 cents of every dollar raised by taxes for daily operations back to the state. Most of the remaining funds are needed to pay employee salaries. That’s why bond packages are helpful for Robin Hood districts to fund long-term maintenance, equipment replacement and technology upgrades.

GCISD gets to keep 100 percent of the funds raised by bond issues, but that money must go to capital improvements, she said.

If the district were to levy the extra 12.81 cents on every $100 of taxable value to fund the bond, the annual increase for a resident with a home valued at $300,000 would be about $384.

Mooney said the actual increase could be less, but taxpayers may not notice because of the rise in home values.

“Anything we can do to lower the tax rate that taxpayers are going to see could help offset the increased values,” she said.

For more information, go to gcisdbond2016.com. Early voting for the May election begins April 25.

This story was originally published April 19, 2016 at 3:21 PM with the headline "Tax value gains could lower bond rate."