Debt service tax to rise slightly with new payment schedule

NEDERLAND — The Nederland Independent School District is looking to show its staff appreciation in a big way.

Included in the district’s budget for the 2015-16 fiscal year — which begins Tuesday and ends Aug. 31, 2016 — is a 4 percent salary increase for all NISD teachers, administrators, instructional support staff and administrative support staff.

Michael Laird, NISD assistant superintendent for personnel and auxiliary services, said under the new salary schedules, all teachers will benefit from a 4 percent step increase — the amount of which, of course, will vary depending on level of experience and advanced degree.

“We know student engagement and learning begins with a knowledgeable staff,” Laird said. “The latest Texas Academic Performance Report measured the statewide teacher turnover rate at 16.2 percent — ours was 9.8 percent. We had the second-lowest teacher turnover rate in the region. The package we’re presenting will allow us to attract knowledgeable staff and keep them in this district.

“You won’t find many districts putting their money where their mouth is like this. We’re talking about a minimum salary increase of $1,242 and a maximum salary increase of $5,642 over what they all made last year.”

Laird said in addition to teacher step increases, NISD administrative/professional and auxiliary personnel, as well as the instructional support and administrative support staff, will all receive a 4 percent general increase from the midpoint of their pay scales.

“Again, you can stack this up against anyone in our region,” Laird said. “We’re fortunate we’ve continued to attract such high-quality applicants. Packages like this help us retain our employees and stops people from poaching us.”

Laird said the district will also put in an additional $30,000 toward employee health insurance to offset the rising cost of coverage. Melissa Wong, NISD business manager, said the district is budgeting $32,571,000 for payroll expenses in 2015-16 — an increase of $2,042,000 over the same line item for 2014-15.

But even with the raises, Wong said, the district will still be able to start the 2015-16 financial year with a balanced budget. Increased property values, mostly commercial, will generate an additional $1.7 million and 145 new students will bring in $2.85 million from the state.

The district’s overall tax rate will increase slightly — by 1.5 cents per $100 valuation — because of an increase in the NISD Interest and Sinking rate from 10.5 cents to 12 cents.

The NISD Maintenance and Operations tax rate will remain at $1.04 per $100 valuation, bringing the district’s combined tax rate to $1.16.

“The Interest and Sinking tax is what pays off our debt service,” Wong said. “Over the next three years, 2016 through 2018, our debt service payments are all around $3 million. That’s quite a bit more than the $2.5 million we just paid for 2015. That very small increase of 1.5 cents will be enough to cover that extra $500,000 we need to make our debt service payments.”

NISD Superintendent Robert Madding said the proposed budget and tax increase “fit the needs of our district,” especially since the I&S tax rate can be adjusted once debt service payments drop back down as the district pays off its debt.

“Our rollback tax rate says we can adopt a maximum I&S rate of $0.1277. We’re only at $0.12, so we’re doing well there,” Wong said. “And we’re still well below the increase we told voters to expect when they passed our bond propositions in 2012.

“We told them to prepare for a 9 cent I&S tax increase and to date, we’ve raised taxes by 5.5 cents. We’re healthy right now, and I see no reason why we’d have to get any closer to that 9 cent projection we gave voters with our debt service payment schedule the way it is now. And when our payments drop back down closer to $2 million, I’m sure the board of trustees will want to revisit this issue.”

Twitter: @crhenderson90