VOL 12 No. 26
email: editor@fbindependent.com
Phone: 281-980-6745
www.fbindependent.com
FORT BEND FAIR. BALANCED. INFORMATIVE. WEDNESDAY, JUNE 26, 2019
P. O.BOX 623, SUGAR LAND, TX 77487-0623
Official newspaper of Fort Bend County & Missouri City
Fort Bend County finances not in a crisis; can borrow $450 million over 5 years with no hardship, says auditor By SESHADRI KUMAR Fort Bend County is not in any financial crisis and, without fiscal hardship, the county can borrow up to $450 million over the next five years, Fort Bend County Auditor Ed Sturdivant told the Commissioners Court at a workshop session last week, while discussing a facilities bond proposal, totaling about $286 million. Sturdivant and Budget Director Pamela Gubbels, by making the revenue projection, expenditures and the tax rate for the next five years, presented a rosy picture, suggesting that the commissioners court can safely borrow money without increasing the tax rate and keeping the total tax rate flat at the current level. According to Sturdivant and Gubbels, the increase in tax revenue yielded by new properties, which accounted for about 60 percent of the total annual tax revenue, will be sufficient to take care of the growth in expenditures and the debt service fee that will occur with the sale of new bonds. The optimistic projection includes a 5 percent annual growth in county’s budget and allocation of half-a-cent of tax revenue in a lock box to cover the employees retirement health care liability, said to be at $420 million. Since the county has a cushion for holding a bond election for $450 million, after the facilities bond this year, a mobility bond of about $200 million will be feasible and a distinct possibility as well. Sturdivant explained the project funding analysis and the net assessed value analysis with tax revenue projection. For example, in 2020, the county can issue nearly $100 million in bonds.
The total county tax rate will remain at 46.4 cents per $100 valuation, though the drainage district tax rate and debt service tax, within the total tax rate, will fluctuate. Fort Bend County has been continually reducing the property tax rate by three and a half cents over the last five years and that is no longer possible under the current scenario. Now that a facilities bond appears to be certain, the focus is on which projects should be included and what the bond amount should be.
Facilities Bond Projects Some of the big ticket items proposed include Juvenile Detention Center expansion ($30.4 million), a multi-purpose facility at the Fairgrounds ($27.3 million), County Judge’s Emergency Management Center ($23.2 million), New annex for Pct. 4 in Telfair ($7.2 million), Election Administration building ($6.3 million), Education and memorial building for the Sugar Land #95 cemetery ($3 million), Youth Sports Activity Center in Pct. 2 ($16 million), other park improvement and renovation projects in Pct. 2 ($9.5 million), other county park repairs and upgrades ($8 million), Fairgrounds offices ($2.2 million) and improvements to the EMS (3.2 million). These bond referendum projects total $237.3 million. The auditor has proposed $100 million in the bond referendum to cover the local match for the federal disaster recovery grants. The county already has federal grants for which about
$30 million is required to match. The countywide watershed study is costing about $3 million. And the projects arising from the study would require funds. If the federal grants are not available, the $70 million bond money will not be spent, and will go away, Sturdivant said. Meanwhile, County Judge KP George is keen on getting a state of the art Emergency Management Center, including the location of the Fire Marshall’s Office. The EMC building needs special design and material and costs nearly double compared to a conventional building. Commissioners Vincent Morales and Ken DeMerchant, who studied the Emergency Management Center facility need, are suggesting a scaled down version of the building, excluding the non-emergency services. Their proposal will bring down the cost from $23 million to $14 million. Morales is proposing the big multipurpose center with an eye on making this facility a shelter during natural disasters. The county has no such shelter now. Further, the county is looking at new voting equipment and the new voting machines are estimated to cost $11.3 million. Meanwhile, the county judge wants to introduce “electronic voting system” for the commissioners court, just as Sugar Land and Fort Bend ISD have. Currently, commissioners raise their hands and say aye or nay. With the installation of the electronic system, they will push the green or red button and the display board will show the green and red. The system is likely to cost about $30,000.
FBEF awards $811,341 to Fort Bend ISD teachers, schools
This year, the Fort Bend Education Foundation awarded 344 grants for $555,661 to support the Grants to Teachers and Schools program. Additionally, 166 New Teacher Gifts for $16,600, $43,500 in Professional Development Grants, and $195,630 in pass-thru grants. Since its inception, the Education Foundation has awarded nearly $36 million in grants to FBISD teachers and schools. Pictured: Front Row (l-r) Lina Sabouni, FBEF Board Member; Peggy Jackson, FBEF Board Member; Dr. Charles Dupre, FBISD Superintendent; Terri Wang, FBEF V.P. Community Affairs; Dustin Fessler, FBEF Board President; Lynn Halford, FBEF Board Member; Shefali Jhaveri, FBEF Member; Second Row: Stacy Bynes, FBEF Past President and Board Member; Jonathan Pursch, FBEF Board Member; John Wantuch, FBEF Board Member; Gena Horak, FBEF V.P. Allocations; Noreen Covey, FBEF Board Member; Brenna Cosby, FBEF Executive Director
While the county judge is keen on getting this gadget, other commissioners do not feel tired of raising their hands to vote. Pct. 3 Commissioner Andy Meyers was skeptical of a facilities bond issue, while mobility needs in his precinct were a priority. He remained a skeptic until the auditor presented a positive financial scenario. Consequently, Precinct 3 had not submitted any projects for the proposed facilities bond issue. Meyers was surprised to see “the greatly elevated number that was 9 figures higher than what he was expecting.” He also thought “it would be a slap in the face to the people who sit in traffic and who face repeated flooding concerns if that wasn’t the first step. “I don’t disagree that the county has facilities needs for a new OEM building, Juvenile Detention expansion, etc., but my fellow court members seem to be in favor of prioritizing a larger facilities bond beyond our necessities,” Meyers said. “Precinct 3 needs roads and we need flood mitigation. These are things that we must have, and I reiterated this to my fellow court members when they presented this draft list at the workshop,” he said. Meyers will be holding a series of public events to receive direct citizens feedback on the proposed facilities bond. The first of these meetings will be on Thursday, June 27th from 6-8 p.m at the Cinco Ranch Branch Library in Katy. Additionally, his office has created an online survey for Citizens Feedback on the proposed bond referendum.
Fort Bend Chamber wins Best Website award
Jessica Huble, Keri Schmidt and Melissa Raju The Texas Chamber of Commerce Executives (TCCE) conference held its annual conference in El Paso, Texas, June 18 to 20. The TCCE is the oldest and most prestigious organization committed to providing relevant professional development for the Chamber of Commerce profession. Texas Chamber of Commerce executives gathered to attend educational sessions, meet their peers in the industry and to represent their communities. Fort Bend Chamber President and CEO Keri Schmidt served as the Chair of the Conference, which included a media contest. Competing against the largest chambers in the State of Texas, the Chamber took the top award for Best Website. “We were extremely excited to be recognized at the conference. This is a reflection of the talent and enthusiasm represented by our Fort Bend Chamber team and our web designer Christina Hawkins of GlobalSpex,” says Schmidt. Additionally, Melissa Raju and Jessica Huble represented Visit Sugar Land and gave conference goers many reasons to visit Sugar Land. The five-star accredited Fort Bend Chamber of Commerce was established in 1972 to provide an important resource for all businesses and organizations in Fort Bend County. Visit www. FortBendChamber.com
FBISD drops tax rate by five cents, thanks to HB 3 By SESHADRI KUMAR Fort Bend ISD has dropped the proposed tax rate for 2019-20 by five cents, thanks to the education funding bill (HB 3) adopted by the Texas Legislature. The total tax rate for 2019-20 will be $1.29 per $100 property valuation instead of the planned $1.34. Current total tax rate is $1.32 and the district advertised a maximum tax rate of $1.06 for M & O and 28 cents for debt service for next year. On May 29, prior to the adoption of HB 3, the district contemplated a tax rate increase of as much as 13 cents, citing a likely shortfall of funding from the state. Subsequently, it canceled the June 3 public hearing and held a public hearing on June 17 with a potential two cent increase in debt service tax rate. How did the district manage to lower the tax rate? Based on passage of House Bill 3, the maintenance and operations rate for the district is being compressed by seven cents (from $1.06 to $0.99). The debt service rate is being increased by two from 26 cents to 28 cents. Voters authorized up to an additional 3 cents on the tax rate
as part of the 2018 bond package; this increase utilizes two cents of that authorization. The average tax bill for a home owner in FBISD will decrease by about $46 annually, based on a home with an average taxable value of $261,013. The average valuation increased by 2.52 percent this year compared to last year. The Maintenance & Operations tax rate remained at $1.04 from 2007-08 and the state has accomplished a reduction in the school tax rate after 12 years. In 2007-08, the total tax rate was $1.25, with a 21-cent debt service tax rate. From 2000 to 2006, the M & O rate was $1.50 and in 2006-07 it dropped to $1.33. At the June 17, 2019 Regular Board meeting, the board adopted the budget for the 2019-20 school year, at $716,864,705, or $9,283 per student. The student enrollment for the upcoming school year is projected to be 77,226. In the 2019-20 school year, the District will open the James Reese Career and Technical Center and Malala Yousafzai Elementary, and will strengthen its student support services. The majority of the budget, eighty-one percent, will support
instruction and instructional support, including classroom teachers and aides, health services, guidance counseling, and mental health support. Seventeen percent will be allocated for District operations, including transportation, maintenance and repairs, information technology, and police services. Staff compensation increases are included in the budget. The Texas Legislature mandated raises for teachers, and FBISD teachers will receive $3,000 or $3,500, based on their years of teaching experience. All other non-teaching staff will receive five percent of their midpoint. Though teachers received a step increase and staff received a retention payment in the 201819 school year, there were no districtwide raises. The staff raises approved will ensure that FBISD remains competitive for recruiting and retaining talented staff to support student growth and achievement. With the passage of House Bill 3, starting in the 2019-20 school year, FBISD will offer full-day prekindergarten for eligible students, and there are projected to be nearly 3,000 students enrolled next school year.