Tidehaven ISD
District Program and Facilities Advisory
Planning Committee Meeting
November 27, 2007 

Summary of Meeting 

Mr. Jones began the meeting at 6:50 p.m..  There were 22 members and 3 guests present..  After a short review of the past meetings, Mr. Jones explained that Region IV did not have an interim report ready concerning the condition of our facilities.  Since this report was not available, Mr. Jones moved to the next item on the agenda, which was a presentation by Mr. Herbert Ressler, the Chief Financial Officer of Palacios ISD. 

Mr. Ressler, who has 17 years of experience as the CFO of Palacios ISD, shared his experiences of being a Chapter 41 school district and the ways in which Palacios ISD has been able to utilize the Chapter 41 status to the benefit of the school district.  Mr. Ressler’s presentation included examples using the current estimates for Tidehaven ISD’s property value.  Mr. Ressler explained how factors, such as the weighted daily attendance (WADA), the “wealth level” of the district, the district’s use of Maintenance and Operations (M & O) funds and the district’s possible use of Interest and Sinking funds (I & S) can impact the amount of dollars the state is able to “recapture” (sent back to the state).  Currently, Tidehaven ISD sends back to the state approximately 6% of its local tax revenue.  With the expected growth of business expected in Tidehaven ISD, Mr. Ressler presented figures showing that in the future Tidehaven ISD can expect to send back a much higher percentage of their revenue to the state.  If the district’s estimated tax revenue was to double, the percentage that the district would have to send back to the state, with no changes in how we utilize our funds, could be as high as 44%.  Mr. Ressler gave examples of how to minimize the effects of the “Robin Hood” plan.  Palacios currently utilizes bond funds (I & S funds), property tax “abatements”, and the increased WADA.  I & S funds are not subject to “recapture”, which means those dollars stay in the district.  “Abatements” (financial agreements between qualifying businesses and the school district) that meet Tax Code 313 also allow the district to keep money that might otherwise be sent to the state.  An increase in student population generally provides a higher WADA, when calculated in with the district’s tax value, allows the district to keep more of their tax revenue.  Palacios ISD has been utilizing bond funds (I & S) for many years.  In closing, Mr. Ressler reminded the committee to remember that the Texas Legislature could and may re-write the laws in their next session, changing how “Robin Hood” impacts school districts. 

Mr. Jones and the committee discussed a possible time frame for presenting a recommendation to the board, but it was decided that without the report from Region IV it is too early to set a date.  Mr. Jones asked for volunteers to join him to meet with the representatives of the family that owns land adjoining the high school.  Robert Dannels, Karen Hickl and Gerald Wendel volunteered to be on this committee.  The committee discussed the need to meet with campus Parent/Teacher organizations and other groups once the report from Region IV is ready.  The committee reviewed a list of the ten taxpayers in the district, all of which are businesses.  The prospect of two new businesses locating in the district and the impact that will have on tax revenues was also part of the discussion.  Mr. Jones presented several slides (can be viewed in PowerPoint below) that showed various exemptions for homeowners, ranchers, and farmers, giving the committee a better understanding of how much is contributed by homeowners.  In an effort to have the committee better understand the impact a bond election would have on the homeowner’s taxes, Mr. Jones had slides (can be viewed in Powerpoint below) showing various amounts of possible bonds and the amount the bonds could possibly increase taxes on properties.  Among the discussion that followed, it was brought to the committee’s attention that any property owners age  65 or older would not be impacted by a bond election, they are considered “grandfathered”.  Mr. Jones was asked if he could prepare estimated figures on what Tidehaven ISD could expect to receive and/or send back to the state with the addition of the two businesses, with estimated values of $150 million and $330 million, expected in the district.  Mr. Jones said he will prepare these figures for the next meeting. 

After some closing comments from committee members, it was decided that the next meeting will be January 15, 2008.  The meeting adjourned at 9:25 p.m.

PowerPoint Presentation for November 26, 2007 Meeting (pages 1-24)
PowerPoint Presentation for November 26, 2007 Meeting (page 25-47)

PowerPoint Presentation for November 26, 2007 Meeting (pages 1-24) pdf
PowerPoint Presentation for November 26, 2007 Meeting (page 25-47) pdf