JISD 'upside down' $327,000 on debt service
Jacksboro ISD is looking at a $235,000 drop in property values for the upcoming school year. The certified tax values have decreased from $1.19 billion for the district to $950 million.
Superintendent Dwain Milam presented preliminary budget information to the school board at its regular meeting this week.
Milam said the administration has calculated the budget conservatively using an average daily attendance of 890 students or 15 less than the previous year.
He recommended proposing a tax rate of $1.50 — $1.04 for maintenance and operations and 46 cents for interest and sinking (debt service).
“In our case, our values are well above what we should be getting per student, so we’re only going to get this amount and whatever extra we’re sending back (to the state) in recapture,” Milam said. “As our values have dropped, the amount we’re sending back to recapture will be less for the upcoming school year.”
The district will not see a difference on a cost per student basis.
Milam said he is anticipating a decrease in expenditures based on some cost-savings measures being implemented.
He said there is the purchase of a new school bus outlined in the expenditures.
“We haven’t bought one in two or three years, so I think we should get that done,” he said.
Milam expressed some concern for the debt service fund. He said with the decrease in values, the revenue anticipated for debt service is $4,172,000. The bond payment this year will be $4,490,000.
“We’re upside down about $327,000 on that bond payment,” he said. “I’m not worried about that because we do have a bit of a fund balance on the I&S side. I think we could weather that for a couple of years before we have to get too significantly concerned, but if the values continue to drop, it may be time to restructure the payments on those bonds.”
To read the complete article, see the Aug. 12 edition of the Herald-Gazette.