Voters shoot down Waelder ISD bond proposals a second time

Waelder ISD voters again rejected two bond proposals totaling a combined $13.745 million in complete but unofficial returns Tuesday, Nov. 8.

Proposition A was expected to have the best chance of success for Waelder ISD, but was defeated by a 289-261 margin. Meanwhile, Proposition B was defeated by a 315-239 margin.

The proposals by Waelder ISD would have allowed the district to build new campus classrooms and make upgrades to existing structures while repaying some of the district’s previous outstanding debt at a savings.

The first proposition, or Prop A, would have called for the issuance of $10.3 million in bonds for “construction, acquisition and equipment of school buildings in the district, including district-wide renovations, and the purchase of necessary sites for school buildings.” 

Proposition B would have called for the issuance of $3.445 million in refunding bonds for the purpose of refunding all or a portion of the principal and interest on previously issued maintenance tax obligation bonds. This moves that debt from the maintenance and operations side to the debt service side while hopefully taking advantage of lower interest rates to save the district money over the life of the bond.

Prop A was expected to cost a total of $17,614,888, including estimated interest of $7,314,888. The estimated maximum annual tax increase imposed on a $100,000 residence by Prop A would be about $101.86, assuming an interest rate of about 4.25 percent.

Prop B was expected to cost a total of $6,348,813, including estimated interest of $2,903,813. The estimated maximum annual tax increase imposed on a $100,000 residence by Prop B would be about $20.48, assuming an interest rate of about 4.25 percent. Altogether, that would create an annual tax increase of about $122.34, or just under $10.20 per month.

Waelder ISD tried in May to pass a total combined $13.6 million bond election, but voters rejected the measure by a 165-98 vote that sent officials at this small, rural school district back to the drawing board.

Waelder ISD has only passed two bond issues in the past 55 years; the last was for $3.8 million in 2007 that was used to build the current gymnasium and administrative offices. Prior to that, it had been 1967 since the district had a bond issue.