Tax & Finance
PBTISD CAN FUND ALL PROPOSITIONS WHILE MAINTAINING THE CURRENT TAX RATE!!!
DISTRICT FINANCIAL TURNAROUND!
Over the last couple of years, PBTISD has corrected many issues that plagued the District and eroded trust in the community. Some fiscal highlights of the District are:
The last two audits, Fiscal Year 2021 and Fiscal Year 2022 have reported no findings.
For FY 2021 PBTISD has received a 98 from the Financial Integrity Rating System of Texas (FIRST). The District is projected to have a 100 on the 2022 FIRST report!
PBTISD has saved taxpayers over $56 million in interest and strategic bond positioning.
Over $89 million has been paid down on the May 2021 Bond in two years!
PBTISD is in excellent financial standing to fund all 2023 Bond propositions while maintaining the current tax rate! = NO TAX RATE INCREASE!!
TAX ASSESSED VALUATION
Current taxable assessed valuations from the Central Appraisal District (CAD) has the PBTISD area at $33,014,552,725!
97.83% of that valuation is attributed to Industrial, Oil, Gas, and Minerals. While only 2.17% is attributed to Residential, Commercial, and Land properties.
Source: Reeves and Ward County
SCHOOL FINANCE 101
M&O vs. I&S
All Texas schools operate on two budgets: Maintenance and Operations (M&O) & Interest and Sinking (I&S). Think of the two budgets as two piggy banks.
The M&O piggy bank is used for day-to-day expenses and operations. Much like your regular checking account that is used for groceries, gas, and minor repairs.
The I&S piggy bank is used for debt services and capital expenses. Much like a savings account used to make payments on your mortgage.
The most significant difference between M&O and I&S is that M&O is legally subject to Recapture, whereas I&S is not. I&S dollars can legally only be used for capital projects, they cannot be used for salaries. Through I&S, every dollar stays in PBTISD.
Understanding Recapture
Since almost 98% of PBTISD'S property revenue comes from Oil and Gas, the District is considered to be "Property Rich" by the state. Thus, PBTISD must give back 85% of this revenue each year to be redistributed to "property-poor" districts.
This is known as Recapture, or "Robin Hood".
With this year's Recapture payment, PBTISD will have paid almost half a billion back to the state.
What does ONE penny generate?
One penny can make all the difference in school finance!
TAX RATE HISTORY
Remember, no tax rate increase is needed to complete ANY of the projects included in the 2023 Bond!!!
REGIONAL & STATE TAX RATE COMPARISON
PBTISD has the 5th lowest tax rate in the region and is 12 cents less than the state average!
PBTISD 20% HOMESTEAD EXEMPTION
PBTISD residents are offered a 20% Homestead Exemption on their homes!
If you are 65 or older, your tax rate is frozen(no tax rate increase)!
