Tax rate hike for PAISD

Homepage

Discussion

August 26, 2010

Mary Meaux The Port Arthur News The Port Arthur News Thu Aug 26, 2010, 09:11 PM CDT

PORT ARTHUR — Trustees in Port Arthur ISD adopted a balanced budget while setting a tax rate slightly higher than the previous year on Thursday.

The $1.37 per $100 valuation is 3 cents higher than the 2009-2010 rate of $1.33 per $100 valuation.

Superintendent Johnny Brown explained the effect the new rate would have on homeowners; a home valued at $50,000 would see an additional $8.40 in taxes per year, a home valued at $75,000 would see about a $14 increase per year while a home valued $250,000 would see an increase of about $56 per year on the tax bill.

The tax rate, which is broken down into two portions, tallies out to $1.04 per $100 valuation for maintenance and operations — the same as the previous year, while the interest and sinking fund comes in at .33 cents per $100 valuation.

A major expenditure for PAISD, as well as all districts across the state, comes in the form of payroll costs. Last year the district opted to provide teachers with a stipend of $1,700. This year the district has added a $1,700 permanent increase to the base pay which equates to about 3.5 percent, Phyllis Geans, assistant superintendent for business and finance, said.

All non-exempt employees, such as custodians and bus drivers, will see a 3 percent raise while exempt employees, such as those in administration, will see a 2.5 percent increase.

The newly adopted budget also includes stipends of $2,500 to $4,500 for new and current employees in the following areas: Bilingual/English as a Second Language and special education, elementary through high school; math, science and foreign language, middle and high school.

Superintendent Johnny Brown, in a letter to the board of trustees published in the budget draft booklet, said even though the district has reduced costs in some areas to offset funds needed for salaries and other operational needs, the first priority of the budget is to maintain the resource allocations to schools. Budget reductions were accomplished through analysis/review of expenses anticipated at the redesign of some business processes.

The balanced budget includes revenues and expenditures of $74.5 million.

In other business, Clarence Grier, vice president municipal finance for RBC Capital Markets Corporation, gave board members some a piece of good news.

“On Aug. 11 we secured historical interest rates,” Grier said regarding the recent sales of unlimited tax school building bonds and the rate of 4.21 percent.

Grier credits two factors for the interest rates; good timing and diligence of the board and staff on planning and policies.

PAISD’s credit rating was upgraded from A1 to Aa3, meaning high grade/high quality as designated by Moody’s Investors Service. Another investor service, Fitch, gave PAISD an upgrade from AA- to A+. The reasons include the district’s significantly improved financial position that is evidenced by a consistent build-up of general fund reserves and a stabilized enrollment situation.

mmeaux@panews.com

Text Only

Severe weather possible over weekend

Homepage

Search Results

Discussion

Tax rate hike for PAISD

Contact Us