Boerne ISD board backs three "golden pennies," approves defeasance and calls Nov. 4 tax ratification election

Boerne Independent School District trustees voted Aug. 18 to adopt a proposed tax rate that includes three "golden pennies" to the maintenance-and-operations portion of the levy, approved a district defeasance to retire roughly $13,875,000 in outstanding debt and set a Nov. 4 voter-approved tax ratification election.

The board’s finance presentation described the "golden pennies" as tier-2 rate increments that are not subject to state recapture and generate additional state matching funds. District staff said three golden pennies would produce approximately $4.8 million in total yield, roughly $2.85 million from local property tax collections and about $1.95 million from state-guaranteed matching. "For every dollar that we raise in local property tax revenue, that's 68.4¢ that the state matches on each dollar," Trustee (voice at the meeting) said during the finance discussion.

Finance staff also presented a defeasance resolution authorizing officials to redeem or defease certain currently outstanding district obligations as part of a debt-management strategy. Bond counsel and the district’s finance lead said the recommended defeasance — targeted at callable issues such as the 2016 bonds — would lower interest costs over time; staff estimated an approximate $7 million reduction in lifetime interest by pursuing early payoff on higher-interest series. Trustee Garrett Wilson moved to approve the defeasance resolution; the board carried the motion.

Board members emphasized that rising state funding from House Bill 2 did not close a previously identified budget gap: administration said the district faces an estimated approximately $10 million funding shortfall relative to projected needs, with House Bill 2 contributing about $3.8 million toward that amount. Trustees described a multi-step approach: identify internal savings (the administration cited about $1.4 million of reductions), leverage available state funding, and ask voters to consider local revenue options through the golden-penny additions.

The tax-rate action triggers a required voter-approved tax ratification election because the adopted rate is above the statutory rollback threshold; the board formally adopted an order calling the election for Nov. 4, 2025. The district’s administration said if the election succeeds, the board will lower the interest-and-sinking rate by one penny, which will be used as part of the plan to reduce taxpayer interest costs while funding pay and other priorities if voters approve the measure.

Board members repeatedly framed the package as primarily aimed at recruiting and retaining teachers, supporting ongoing capital needs and protecting classroom funding. "The objective is real simple: recruiting and retaining talent, it's taking care of capital expenditures, ongoing maintenance, and student programs," one trustee said during the debate.

What happens next: the board posted required resolutions to its website and will proceed with election logistics. If the TREx fails, the administration said previously implemented pay adjustments will remain at the lower preparatory level and additional planned pay increases tied to the election would not be funded.