Pasadena ISD trustees ask for $135M bond

Despite promises of no tax increases, a 9.6 percent hike is now being sought

Twice in the past seven years, Pasadena ISD voters have gone to the polls to approve bond measures totalling $445.6 million for campus renovations, technology, six new schools and eight “replacement campuses.”

District officials promised that both bond measures wouldn’t carry a property tax rate increase. Construction cost overruns meant one promised intermediate school was never built, officials said.

With more than $700 million in existing debt, trustees now are planning to ask voters to approve another $135 million in school bonds with scant information as to how the bond proceeds would be spent. And despite promises of no tax increases during the 2011 and 2014 bond elections, trustees at a meeting Wednesday approved a rollback election for Nov. 7 to authorize increasing the property tax rate by 13 cents to $1.48 per $100 of valuation, effectively a 9.6 percent tax-rate hike.

Pasadena ISD spokesman Art Del Barrio stressed that revenues from this bond would go toward operations, not debt payments.

“That portion of the rate isn’t being increased,” Del Barrio said.

The district said in a statement late Wednesday that a 13-cent property tax rate would generate not only $16 million in local funds but an additional $20.7 million in matching state funds. The news release didn’t explain why.

Exceeding budgets

Del Barrio said that no decisions on projects had been made but a committee in the coming weeks would consider a list of projects and district needs from those not included in the 2014 bond.

In February 2016, trustees discussed problems with higher-than-anticipated construction costs and overruns that threatened construction of an intermediate school funded as part of a $175.5 million bond. The proposed $29.5 million intermediate school was needed to ease overcrowding at Thompson, Bondy and Beverly Hills intermediate schools and was to be built in the southern part of the Riverstone Ranch subdivision.

“I know asking to postpone a project is not popular. We’ve promised our citizens and the community this is what we’re going to do,” Superintendent DeeAnn Powell told trustees in 2016. “I’m not going to say we don’t do a project. I just want to have time to see how these other projects come in.”

Powell told Pasadena ISD trustees that recent demographic data showed the need for the intermediate school was not as pressing as the need for another new campus funded by the 2014 bond: The Dobie Ninth Grade Center, now expected to open this year.

Original estimates for construction of the 170,000-square-foot center for ninth-graders were $27 million. But the following month, trustees approved a $35.8 million construction contract to Drymalla Construction that exceeded that budget estimate by $8.8 million, documents show.

‘Soaked up’ workers

Cost overruns also were associated with the L. F. Smith Elementary replacement school. Trustees approved a $19.85 million contract with Drymalla Construction that was more than $4.3 million over original budget estimates. And a $25.45 million contract with Durotech Construction for the Pomeroy Elementary replacement school was roughly $8.3 million higher than original budget estimates.

At the time, trustees were told worker shortages were driving up construction costs.

Plans for construction of the proposed intermediate school remain on hold — and it’s unclear if the newly proposed bond would fund its construction.

Ballot language for the recently approved $135 million bond measure says the funds will be used for “construction, acquisition and equipment of school buildings.” However, the bond proposal doesn’t say how many schools will be built or renovated. The proposal also says bond funds will be used to purchase land for new schools, renovate and expand existing schools and purchase equipment and school buses — again, with no specifics.

Increased property tax

Trustees also agreed this week to ask voters to increase the current property tax rate of $1.35 per $100 of assessed value. It has two parts — $1.07 for maintenance and operations and $.28 for debt payments. The district’s rate has remained unchanged for over a decade and is among the lowest in the greater Houston area.

According to state law, a tax ratification election is required if the district proposes a maintenanceand-operations rate higher than $1.07. Trustees hope voters will approve a 13cent increase to the portion needed to fund daily operations; the portion for debt payments will stay the same.

District officials say the tax-rate increase is needed to cover increasing utility costs, to maintain competitive salaries for teachers, to deal with increased student enrollment and to pay for unfunded mandates from state lawmakers. Pasadena ISD officials say they must currently comply with more than 100 mandates in nine categories, such as criminal background checks for employees and volunteers, end-of-course exams and school-breakfast and lunch programs, among others.