FREQUENTLY ASKED QUESTIONS

School districts are required by state law to ask voters for permission to sell bonds to investors in order to raise the capital dollars required to renovate existing buildings or build a new school. Essentially, it’s permission to take out a loan to build, renovate and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home. A school board calls a bond election so voters can decide whether or not they want to pay for proposed facility projects.

Yes. Recent research by the Environmental Protection Agency suggests that a school’s physical environment can play a major role in academic performance. Leaky roofs and problems with heating, ventilation and air conditioning systems can trigger a host of health problems – including asthma and allergies – that increase absenteeism and reduce academic performance. Research links key environmental factors to health outcomes and students’ ability to perform.

Lorena ISD conducted a comprehensive Facilities assessment, demographic study and review of student enrollment projections. Based on the recommendation of results and information gathered through the Facility Planning Committee, a bond recommendation was made to the Board of Trustees.

Without bond money, the district would need to redirect educational funds used for instructional programs and services to fund increased building maintenance costs.

No, this bond does not include teacher salary increases. Teacher salary increases are determined by our Board of Trustees through a different process.

A school district’s tax rate is comprised of two components: the Maintenance & Operations tax (M&O) and the Interest & Sinking tax (I&S). M&O funds are used to operate the school district including teacher salaries, utilities, furniture, supplies, food, gas, etc. The I&S rate is used for capital projects such as school construction, infrastructure, renovations/additions, and technology . School bonds cannot be used for teacher salaries.

Lorena Elementary School is committed to providing students with physical education (PE) every day. This could be accomplished by increasing staffing and/or adjusting staff schedules. Currently, the plans for expanding the existing elementary school include improvements to the playground space that can be used for PE time. Also, if the voters approve Proposition A, the district will explore how best to incorporate that play area during the project’s design phase.

Proposition A is in the amount of $37,640,000. It includes an addition to the existing elementary school that would allow for 220 more students – bringing total capacity at the elementary school to 800 – as well as renovations to the remainder of the existing elementary school.

This proposition also includes middle school locker room additions and renovations, ADA changes to the high school restrooms, dressing rooms at the Performing Arts Center, and expanding the existing high school band hall.

Proposition B includes a facility to house the district’s high school sports medicine program and activities.

Both propositions are stand-alone and Lorena ISD voters will have the opportunity to vote on each, independently, during Early Voting (April 22 – April 30) or on Election Day (May 4).

A sports medicine facility is where a high school’s athletic trainer is located and it is typically used by student athletes for preparation and rehabilitation efforts. It could also be used to support potential CTE programs in the future that have sports medicine or kinesiology as their focus.

If the voters approve the bond and the amount approved is more than what is needed to complete the projects being marketed the district is able to:

• Tackle additional projects that were identified and prioritized by the facilities planning committee

• Sell fewer bonds to avoid paying for funds that aren’t needed

• Pay down any outstanding bonds with the excess funds to lower the district’s (and its voters’) I&S rate

During the 2019 legislative session in Austin, legislation was passed that required school districts to have separate propositions for projects like stadiums, performing arts centers, natatoriums, etc. Based on this legislation the district’s bond counsel determined that the sports medicine facility project fell under one of the requirements to have a separate proposition.

Based on reports from the district’s independent demographer that showed anticipated growth in the surrounding communities, as well as increased enrollment at Lorena ISD – specifically in the Primary and Elementary Schools. Adding to both sites was determined [by the committee] to be cost-prohibitive due to the TEA requirement to expand, upgrade, and/or modify support spaces (e.g., libraries, cafeterias, kitchens, etc.) at both sites. For this reason, the facilities planning committee recommended moving second grade to the elementary school once the addition and renovations were completed.

Additionally, renovating and adding to the existing elementary school would extend the facility’s life (this is the oldest building in the district) and would also alleviate overcrowding at both sites.

Currently, the cost to design and build a brand-new elementary school is approximately $50+ million. While the district’s volunteer facilities planning committee expressed a desire to take this route, the district’s bonding capacity (i.e., the amount it is able to borrow on the I&S side of the tax rate) was approximately $38,950,000.

With escalation associated with capital projects hovering around 1%, the district’s volunteer facilities planning committee felt that waiting to go out for a bond would only add cost to projects that it had identified.

If the bond is not approved by voters and more learning space is required, the district would have to place portables on campuses. Since there would be no bond funds to access, this would need to be done from the district’s M&O budget. This is the same budget used to pay for utilities, curriculum, teachers’ salaries, and maintaining existing facilities. Portables are not a viable long-term solution and present safety/security concerns.

Without bond money, the district would need to redirect educational funds used for instructional programs and services to fund increased building maintenance costs.

While specifics cannot be provided until the design process has been completed, Castleberry ISD’s Irma Marsh Middle School is an example of this type of project (i.e., adding onto an existing facility and upgrading the rest).

Projects similar to the ones included in the bond program – specifically the addition and renovation to the existing elementary school – can be phased to minimize interrupting instructional learning.

If the voters approve the bond, and the project moves forward, a detailed phasing plan will be established between district personnel and the construction design team to ensure a safe and smooth transition.

The May 2024 bond is based on the recommendation from the district’s volunteer facilities planning committee and was based on research conducted by that group. They looked at enrollment projections, demographic reports, facilities assessments, and the district’s financial situation. Based on enrollment projections, the Primary School is anticipated to be at capacity next year, and the Elementary School is expected to be at capacity in the near future. The committee felt the projects included in this bond provided the district with the ability to address that anticipated overcrowding at two schools while still not “maxing out” the district’s bond capacity. Adding to the existing elementary school will alleviate overcrowding for at least ten years and should extend the life of the facility for an additional 30+ years.

Capital improvement projects for K-12 school districts in Texas are different than your typical construction project. In order to get a bid for a project, drawings are needed, and in order to get drawings the district would need to hire and pay an architect’s fee to create construction documents – this includes going through an in-depth design process to ensure the facility being designed will support the end-users. Typically, before paying an architect to create construction documents districts want to put a bond measure before its voters because while districts can hire an architect to begin design, the money paid for this service – if done before the voters approve/reject a bond – would come out of the district’s operating budget and couldn’t be reimbursed if the voters do not approve the bond. In an effort to be fiscally responsible, Lorena ISD is working on cost-effective conceptual plans to share with the community.

Each proposition included projects identified by the district’s volunteer facilities planning committee. Each proposition was given a budget that is based on existing construction costs in the market with escalation and inflation added to them.

The following items are anticipated to be included in the elementary school additions and renovations:

• Classroom Space for 200 students per grade level

• Additional small group space

• Art with storage

• Music with storage

• STEM lab with storage

• Cafeteria expansion

• New library

• New Restrooms

• New corridor with wider dimensions

• Reconfigured office spaces

Through strategic placement of grade levels in relation to PE and specials, the flow of students will become much more efficient reducing travel times and congestion in hallways.

The property taxes of those 65 and older with a homestead exemption would not be affected if the bond referendum passes. Taxes of those receiving the 65 and older homestead exemption are frozen at their present rate for as long as they maintain their homestead.

You must apply for this exemption.

Click Here for the McLennan County Exemption Form

A school district’s tax rate is comprised of two components: the Maintenance & Operations tax (M&O) and the Interest & Sinking tax (I&S). The M&O rate is used to operate the school district including salaries, utilities, furniture, supplies, food, gas, etc. The I&S rate is used to pay off school construction bonds. Bond sales only affect the I&S rate.

The current bond proposal for $38.9 Million would have a total impact of 20.73 cents for all propositions. Each proposition on the ballot is voted on individually and has a defined amount, scope and tax impact.

TAX CALCULATOR

This requirement was a part of new laws coming from Austin after the legislative session in 2019. The Texas legislature wanted the ballot language to be clear, that voted bonds were the method that we use to finance school construction. Paying for these voted bonds requires tax revenues.