Bond Planning Committee convenes for second time

Bond Planning Committee convenes for second time

Nearly 100 members learn about preventive maintenance, finance issues

April 5, 2023 — Nearly 100 members of the Midland ISD Bond Planning Committee met for the second time Monday, April 3, to discuss a number of topics as it works to recommend a bond package to the Board of Trustees.

Deferred Maintenance

Among the topics was deferred maintenance. In total, MISD has about $237 million in deferred maintenance and is working toward a preventive maintenance plan recommended by the Facilities and Long-Range Planning committees. MISD has been allocating funds toward this list of items and on Monday shared with Bond Planning Committee members its progress on what is being addressed without a bond.

One example has been the timely replacement of HVAC systems at campuses districtwide to ensure comfortable learning environments. During the recent spring break, crews installed a new cooling tower at Goddard Junior High, and more replacements are planned.

Finance

Committee members also heard a presentation about district finances and what major projects recommended by the Long-Range Planning Committee a school bond could fund.

For many years, the state has considered MISD to be a property-rich district. Because of this, the district must pay back its “excess revenue” to the state as part of Chapter 49 recapture (sometimes referred to as Robin Hood).

This school year, it is currently estimated MISD will pay $161 million in recapture — about 35 cents for every dollar MISD receives through the Maintenance and Operations (M&O) tax rate from local taxpayers. The Interest and Sinking (I&S) tax rate is not subject to recapture and can only be used for bond debt repayment.

Recapture constrains what MISD can fund in terms of capital improvements, particularly large projects such as the construction of new schools.

School bonds are the major method to address capital improvements and the construction of new schools, particularly in fast-growing districts such as MISD, which is predicted have 32,146 students enrolled in the 2032-33 school year — a 16% increase above this year’s 27,821 students. MISD has seen a 5% increase in enrollment this year alone.

Committee members learned that through refinancing and early payment of principal, MISD has saved the district and taxpayers more than $55.4 million in future interest payments on current bonds. Estimates were presented on different bond amounts along with the estimated tax rates

MISD is watching several bills this legislative session that would affect property taxes and school finance. However, none would alleviate the financial needs to address the Long-Range Planning Committee’s capital improvement recommendations that include the construction of new Midland and Legacy high schools; the construction of a new elementary school to serve the Lone Star Trails area in northeast Midland; and general campus improvements that include the repurposing of the Midland Freshman and Legacy High campuses into middle schools that serve grades six through eight.

The Bond Planning Committee’s goal is to develop and recommend to the Midland ISD Board of Trustees a bond plan that addresses these facilities issues and prepares the district for future enrollment growth, evolving instructional programs and preventive maintenance.

The committee was formed after MISD’s Long-Range Planning Committee recommended to the board nearly unanimously Feb. 9 that one should be formed. Their conclusion was informed in part by a demographic study showing that MISD's aging facilities, particularly its high schools, cannot support the rapid and persistent growth the community is facing. The Long-Range Planning Committee began its work in August 2021 and presented initial recommendations to the Board of Trustees in November 2022.

Save the Date

Bond Planning Committee meetings are open to the public. Here are upcoming meetings.

All meetings begin at 6 p.m.

More Information 

MISD’s Bond Planning Committee website will be updated with more information as the process continues. You can find it at midlandisd.net/bond.

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Media Relations Contact:

Trevor Hawes

Communications Specialist

432-240-1044 | trevor.hawes@midlandisd.net