Texas Voters Slap Down Some of Largest Bond Proposals

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DALLAS — Texas voters rejected more than $1.2 billion of the $4.8 billion of bonds on local ballots Saturday, according to preliminary estimates.

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Some of the largest proposals, including $450 million for Ysleta Independent School District near El Paso, $350 million for roads in booming Montgomery County near Houston, and $297 million for McAllen ISD in the Rio Grande Valley went down to defeat.

Another $150 million proposal for the Cleburne ISD south of Fort Worth also failed.

Results were mixed in Montgomery County, where more than $1 billion of bonds appeared on ballots. The burgeoning suburban county north of Houston approved Saturday's largest bond proposal in the state, $495 million of school bonds for the Klein ISD. They also supported $350 million of bonds for Montgomery ISD, and $173 million for New Caney ISD. Both serve Montgomery County, including The Woodlands, home of Exxon Mobil's new headquarters campus.

Klein ISD's bonds would finance the district's fifth high school, tenth intermediate campus and another elementary school and districtwide renovations. Preliminary election results showed overwhelming support for the debt.

With a record turnout in the county, voting was particularly heavy in The Woodlands, according to local reports. Preliminary results indicate that the road bonds were opposed by 58% of the voters, while more than 70% favored the Montgomery ISD bonds.

Backers of the road bonds noted that approval would not require a tax increase. But opponents objected to one particular project called the Woodlands Parkway would channel 6,000 additional motorists per day into the master-planned development and, they said, threaten its community feel.

The Parkway proposal came as a Texas Department of Transportation toll project known as the Grand Parkway develops in the area. The Grand Parkway is an outer loop around the Houston metro area.

The defeat was the second defeat of a road bond proposal in the last decade. In 2011, voters rejected a $200 million proposal that opponents said lacked a specific list of projects. County voters last approved a $100 million proposal in 2005.

Among the opponents of the project was Woodlands Township director Gordy Bunch, who called the vote "historic," given the high turnout on Mother's Day weekend.

West of Houston, about 72% of voters in the Alief ISD approved $341 million bond of school bonds in the first referendum since 2003.

In far west Texas, voters in the Ysleta ISD serving greater El Paso, defeated the second-largest bond proposal of $450 million.

The vote was close, with 51% opposing the bonds, which would have required a 10% property increase.

"Ultimately, the kids and students were the ones that lost tonight," said YISD Board of Trustees President Patricia McClean.

Superintendent Xavier De La Torre said officials will analyze the vote in hopes of success the next time.

Some districts did succeed on their second try. Wichita Falls ISD voters approved $59 million of bonds after rejecting a proposal in 2014, and the Eanes ISD near Austin approved $52 million after a previous rejection.

More than 70% of voters in the McAllen ISD opposed issuing bonds that would have required a tax increase. Two school board incumbents who favored the bonds were also voted out of office.

McAllen ISD's $297 million of bonds would have increased school property taxes by 17 cents per $100 in assessed value, translating to $218 per year for the owner of a $128,000 home.

The district had planned to call a Tax Ratification Election to allow an additional levy of 13 cents per $100 valuation for maintenance and operations. Now, the prospects for that are dim.

In North Texas, Frisco voters approved all eight proposals totaling $268 million by wide margins. Projects include roads, parks, city hall expansion and a $10 million performing arts center. Frisco is expecting even faster growth with the development of Toyota Motors' campus in neighboring Plano.

The city of Frisco's successful bond election came a year after voters in the Frisco Independent School District approved $775 million of bonds to build 14 schools.

Frisco's population nearly tripled from 2000 to 2010 to 116,989 residents. Situated in the affluent suburbs north of Dallas, Frisco's median family income is 181% of the national average.

Fiscal year 2014 net taxable values grew 8.0% over the prior year to $15.9 billion from new property, according to Moody's Investors Service.

South of Dallas, about 77% of voters in the Mesquite ISD favored issuing $280 million of bonds for the suburban school district.

In the outer suburbs of San Antonio, voters in the Comal ISD approved nearly $150 million of bonds.

In the West Texas city of Abilene, voters approved nine propositions valued at nearly $81 million.

The state legislature is considers measures that would affect school districts' ability to issue debt.

Two bills are proposing a limit or ban on capital appreciation bonds, used by rapidly growing districts to forestall debt service to the later maturity date of the bonds. Another would allow fast-growing districts to raise tax rates to support debt beyond current limits.


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