San Felipe Del Rio Consolidated Independent School District trustees voted unanimously Aug. 11 to call a $50 million bond election for Nov. 4, 2025, and approved a contract not to exceed $70,000 with the Val Verde County elections officer to provide election services.

The bond package presented by district staff and advisors funds four capital projects: a new Del Real Freshman Center on the existing high school campus; a new brick-and-mortar Roberto “Bobby” Pereira Elementary STEM Magnet School; a tech-center construction and gym expansion at San Felipe Memorial Middle School; and classroom, administrative and cafeteria expansions at Buena Vista Elementary.

District financial adviser David Gonzales of PFM told trustees the district could issue $50 million without increasing its interest-and-sinking tax rate because “you’re going to have debt coming off the books significantly” between 2025 and 2026, and the district would stage sales (about $25 million in 2026 and $25 million in 2028) so the current I&S rate of 0.1877 would be maintained. Gonzales also said his analysis used a conservative 5% interest assumption and a 30-year term; he noted the Federal Reserve has signaled cuts that could lower rates, saying there is “a really good chance that rates are going to be much lower of December this year and next year even lower than where we are today.”

Bond counsel Dan (Daniel) Martinez of Winstead PC told the board that state law passed in the most recent legislative session requires language on ballot propositions that can read as a property tax increase even when the district does not plan a tax-rate hike. “We actually, they passed a new law this session. ... We actually have to move that language that says a property tax increase to the top,” Martinez said, adding the district’s prior efforts to qualify that language were rejected by the legislature.

Trustees and presenters described the projects as aimed at replacing aging buildings and expanding capacity and program space. Gonzales presented the district’s credit profile — a AA3/AA-minus rating and an estimated state assistance level near 17.8% — and explained how declining debt service in later years creates the capacity to layer $50 million in new bonds without raising the I&S rate. He also said the district trimmed the proposed package from $60 million to $50 million after recent changes in homestead exemption and new appraisal numbers reduced available capacity.

The board approved an order calling the election (motion by Ms. Orville; second by Mr. Morales) and then approved the election-services contract: “a contract and purchase order over $25,000 with the elections officer of Val Verde County, Texas in an amount not to exceed $70,000,” funded from Fund 199, General Funds (motion by Michelle Lindo; second by Amy Haines). Both motions carried unanimously.

What happens next: the district’s bond counsel and financial adviser will coordinate with election officials and the county on the election timeline and voter information; presenters recommended public outreach (pamphlets, mailers, website materials and town halls) to explain the ballot language and the district’s claim that the proposal will not raise the tax rate. The board did not adopt any changes to the ballot language during the meeting; Martinez and staff said the statutory wording is required by law.