Katy ISD voters will weigh in on record $840M bond
Katy ISD voters on Nov. 7 will decide whether to pass or reject the district’s largest proposed bond in history at $840 million.
The school bond would fund new buildings, building repairs, technology, safety and improvements to athletic facilities. Here’s what to know about the proposed bond.
Four propositions
By law, school bonds must be broken down into smaller propositions, with each proposition having its own spot on the ballot.
Proposition A has the largest share of the bond at about $723 million. Proposition A would fund four new schools, the purchase of future school sites, renovations to 26 aging campuses, safety and security upgrades, more buses and component replacements for 62 buildings, according to documents from the bond committee.
Proposition B, at about $84 million, calls for district-wide classroom and campus technology upgrades.
Proposition C, in the amount of about $4 million, would fund new natatoriums to schools that are currently lacking the competition swimming pools and will replace older components in existing pools.
Proposition D, which would fund improvements to district-wide campus athletic facilities and repairs to Rhodes Stadium, would cost about $30 million.
The proposed bond would create another 4,490 classroom seats over the next three years, bond committee documents state.
If the bond fails with voters, it will result in the overcrowding of students, potential construction inflation, possible increased interest rates and will place additional pressure on the district’s general operating fund, according to district documents.
Won’t raise taxes
Chris Smith, the district’s chief financial officer, said the bond would not result in a tax rate increase due to Katy’s prosperous housing market and increased property values.
Appraised property value in the district has seen a roughly $3 billion increase for the 2023-24 school year, Smith reported, which is expected to provide capacity for the proposed 2023 bond and possible future bonds.
“Using conservative tax base growth and interest rate assumptions, Katy ISD has the capacity to authorize $840 million in bonds in 2023 and $850 million in 2026 and stay at the current tax rate of 39 cents (per $100 valuation),” Smith said.
Backed by business
The Katy-Area Chamber of Commerce has publicly endorsed the bond, adding that investment in education is “paramount to our continued success and a positive impact on the economic and workforce development in the region,” a statement from the chamber said.
The passage of the bond will be a boon for the real estate industry, said Patti Lacy, a Katy realtor with 23 years of experience.
“From my experience, the No. 1 reason people move to Katy is because of our amazing school district,” Lacy said. “This bond package will help our district continue to be a destination district by ensuring our schools have everything they need to continue to teach our students at the highest level.”
Dissenter cites debt
Of the seven Katy ISD board members, only Morgan Calhoun voted against the measure when it went before the board in July.
Calhoun initially voted in favor of the bond but changed her vote after the measure was approved.
Calhoun said she changed her vote because she doesn’t want to add to the district’s debt. The district currently has a bonded debt of $2.1 billion, district documents show.
“We cannot continue to just kick this can down the road,” Calhoun said.
The requested bond is the highest in Katy ISD’s history. The previous record was the 2014 bond, which totaled $748 million.
The most recent school bond was in 2021 in the amount of $676 million.