Regardless of the outcome of this bond election, there is no tax rate increase for taxpayers due to the financial impacts (added property tax base) of Steel Dynamics.
Steel Dynamics, Inc.
On July 22, 2019, Steel Dynamics announced that Sinton, Texas will be the location of their newest and largest steel plant complex. Construction is underway with a projected schedule to be operational by mid-2021.
The new complex will bring nearly 650 new jobs and other supporting businesses to Sinton. This will more than triple the district's certified value, allowing the district to access the full bond proposal amount of $111,060,000 and not raise the current tax rate of $1.4483.
Over the past 15 years, SISD has seen substantial growth in property values, with the tax base doubling at 3% of growth per year. Regardless of additional industry and businesses outside of Steel Dynamics, this growth rate is projected to continue, if not increase.
PUBLIC SCHOOL FINANCE
A school district's budget is generated from three sources: federal, state, and local funding.
Local funding from property taxes makes up the largest source for school districts.
A school district's total tax rate is made up of two parts: the maintenance and operations (M&O) rate and the interest and sinking (I&S) rate. Each has a designated purpose and budget.
M&O Tax Rate vs. I&S Tax Rate:
The M&O budget is used for daily operations of the district, including utilities, salaries,
furniture, supplies, food, and gas.
The I&S budget is used to repay debt for capital improvements through voter-approved bonds. These improvements include new construction, renovations, HVAC and roofing replacements, land purchase, furniture, and technology.
Bond elections only affect the I&S tax rate. Funds from a bond CANNOT be used as part of the M&O budget or to increase salaries.