Good evening Falcons,
Over the past several weeks, we have shared numerous messages with our community about Bond 2020. As early voting winds down, we wanted to provide a few more resources to allow Royal voters to research the bond propositions and to vote for the ones that they feel best meet the needs to Royal students and their families. Social media is frequently filled with incorrect information, and the Royal ISD team wants to ensure that our voters are informed during Early Voting and on Election Day.
It is our hope that the facts included in this announcement will provide additional insight to assist voters in making an informed choice. Do Your Research, Get the Facts, and VOTE!
Tax Rate and Debt
The district’s appraised taxable values have a large impact on its ability to pay back debt sooner. Royal ISD’s tax base has been on the rise in recent years with new commercial development that has come to the area. The district has averaged 11% growth per year the past 5 years and, in tax year 2020 alone, experienced 19.1% growth in assessed taxable valuation. In addition to tax revenue from Royal ISD homes, the area has a strong business presence, including Amazon, Grundfos, Igloo, Goya, Rooms-to-Go, and many more. This puts Royal in a unique position to leverage increasing revenue from industry tax collections while reducing the tax burden of local residents. This growth is what will allow Royal to pay back the 2020 bond with no increase in the Interest & Sinking (debt repayment) portion of the RISD tax rate. We will not need to increase the tax rate for district property owners because the funds will be covered by current and future district growth.
On top of the large industry footprint in RISD, the district has excellent financial ratings that will enable us to obtain excellent financing rates. The district also refinanced its outstanding debt during 2013 through 2018 to save $14.7 million of interest without increasing the length of the loans. Standard & Poor’s (S&P) maintains a “A+” underlying rating on Royal ISD and a “AAA” rating pursuant to the PSF Bond Guarantee Program. The District has seen strong and steady growth in its assessed valuation over the past several years and maintains strong reserve levels. Additionally, Royal ISD has been receiving “Superior” ratings by TEA’s Financial Integrity Rating System of Texas (FIRST). Therefore, it is very likely the outstanding ratings from S&P will be affirmed with the addition of $37.3 million of additional debt.
Ballot Language
Bryan ISD, San Antonio ISD, and Allen ISD are just a few of the districts also holding bond elections with no subsequent tax rate increase. Those districts face the same challenges as Royal with the new required ballot language. We have included links and posts that those districts have shared on their websites and social media to highlight the similarities.
Additional resources: Click here to view a list of all 2020 school district bond elections. To compare their bond proposals and the tax impact, visit the district web pages to see how Royal’s proposal compares. Source: Bond Review Board Database
Bryan ISD message: "As part of House Bill 3 passed by the 86th Texas Legislature in 2019, all ballot language for school bond elections MUST include the statement, "This is a property tax increase." However, the Bryan ISD 2020 Bond will NOT increase the district's current tax rate. (The current tax rate is $1.2325 and the tax rate with the 2020 Bond would be $1.2325.)"
Allen ISD message: "Have you voted yet? If you're headed to the polls soon, remember to go to the bottom of the ballot to vote in the Allen ISD Bond Election. Due to new state law, all school district bond propositions throughout the state will include the following text: "This is a property tax increase" even if there is no expected increase to the school district tax rate. By paying off previous bonds early and refinancing bonds for better interest rates, Allen ISD has the capacity to layer in $222 million of new issuance with no increase to the tax rate."
Additional Resources
We strongly urge our Falcon voters to research the bond propositions and to vote for the ones that they feel best meet the needs to Royal students and their families. Social media is frequently filled with incorrect information, and the Royal ISD team wants to ensure that our voters are informed during Early Voting and on Election Day. Below are some additional resources on Texas school finance and on Royal ISD Bond 2020 that may provide additional insight to assist voters in making an informed choice. Once you’ve done your research, VOTE.
- Royal ISD Bond Website – In particular, please review the FAQs and Straight Talk tabs.
- Texas Education Agency State Funding
- Texas Education Agency School Finance Topics
- House Bill 3
- Visit www.votetexas.gov for voting information.
Still Have Questions?
We are here. If you still have questions after reviewing this information, please do not hesitate to reach out to the Bond Communications Team via email (cginn@royal-isd.net or rkershner@royal-isd.net) or via phone at 281-934-2248 (ask for Christi Ginn). The current administration is dedicated to transparency and positive change, and we welcome your questions.
We encourage you to get involved with the schools by attending school board meetings, asking questions, volunteering (once we are able to do so again) and staying in contact with your child’s campus. It takes a village! Royal ISD thanks you for partnering with us to promote a positive learning environment for all Falcon students.
Your partner in learning,
Royal ISD