Lovejoy ISD WILL NOT disclose financial information!

Since February 2002, Lovejoy ISD has refused to disclose how they are spending taxpayers dollars.

Archived posts below:

Lovejoy residents petition Legislative Budget Board
  (Jan 2005) Petition to require Lovejoy to give public secondary operations budget.
More than 100 people have spoken – they want to know how Lovejoy plans to finance secondary operations. It's a reasonable question that deserves an answer.

Carol Ray, Lovejoy superintendent resigns immediately after these Letter to the Editor are published. Carol Ray lead the district in building secondary without any financial proof of promises made.

Superintendent retires
(Feb 2005)

  (May 2005) Ted Moore from McKinney ISD announced as new Lovejoy superintendent. Welcome Mr. Moore!
  (Jan 2005) Shortly after these letters were published Carol Ray, the Lovejoy superintendent who led the community to build secondary schools retired.

February 2005
After three years of multiple requests for a secondary operations budget, multiple Open Records Acts, and one hundred+ citizens petitioning the Texas Legislative Budget Board, Lovejoy ISD has finally released some financial information about secondary operations. While the information did not comply with the petition request, it is a beginning....

Financial information Lovejoy provided after budget petition
  Only after the Legislative Budget Board was petitioned to require Lovejoy to provide a secondary operations budget did Lovejoy shared this financial information. Lovejoy's current financial asst. superintendent's cover letter clearly distances her financial calculations from those used by the school board in their decision to expand Lovejoy from an elementary-only district to a K-12 district. This information is not the pro forma budget requested by the petition and does not detail costs of operating a secondary school.
Feb 2005 Presentation on Growth, Bonds, and Operating Budget

Lovejoy ISD tax rate will start at $1.96 the first year the high school opens and reach $1.99 year 2008-2009.

Lovejoy ISD continues to thumb nose at taxpayers

  (Oct 2005) Lovejoy ISD continues to refuse to provide a secondary operations budget to the public, despite taxpayers requests for information for almost four years. Lovejoy never completed the financial studies recommended by Moak & Casey before voting to build secondary schools. The financial studies shared with the public were very inadequate as proof of promises made.

December 2004
Twenty five months after Lovejoy ISD told residents that a secondary operating budget was available, Lovejoy residents are still waiting for it. One hundred taxpayers have petitioned the Legislative Budget Board to require Lovejoy to provide the public with secondary financial planning.

Lovejoy ISD has a building budget which covers the cost of constructing buildings not operation costs.

The Lovejoy ISD secondary school operating budget covers teacher, janitor, counselor, principal, cafeteria worker, and libertarian salaries in addition to a multitude of other costs to operate a school. It is important because it will show how many academic and extracurricular activities can be offered to secondary students when the Lovejoy high school opens Fall 2006. It will also show the impact the secondary schools will have on the elementary.

Return on investment

The 2002-2003 Lovejoy board voted unanimously to build secondary schools Nov 2002 without completing a pro forma budget for Lovejoy secondary schools.
Numerous citizens asked the Lovejoy board to complete a pro forma budget before voting to build secondary schools.
The financial studies available to the 2002-2003 Lovejoy board were inadequate to determine what could be offered to secondary students.

There is a loophole in the Texas Education Code that allows school boards to decide to build secondary systems without ANY financial substantiation for its operations viability.

2002-2003 Lovejoy board that led the community to build secondary schools without a secondary operations budget.

Rich Hickman - reelected 2005

John Walsh - Allegedly made almost $400,000 selling office supplies to the Lovejoy district

Sue Hoffman - Voted to build the high school, which is located right next to her 5 acre home site that she is allegedly under contract to sell as Outstanding Potential Commercial Property.

Vacated seat at term end
Scott Drablos 2003,

Gary Rodenbaugh 2003, while serving on Collin County Tax Appraisal Board

John Helm 2004, served as Chairman of Lucas P&Z simultaneously

Bettye Petree - moved out of district 2004

Official financial information from
Lovejoy Independent School District
Jan 13 & 14, 2003 Meetings
(transcribed notes from video)

Revenues will not cover operating expenses the first 3 years.
Lovejoy stated that the board's financial projections were based on today's "best" information but were not a certainty and any predictions which failed to come true would severely impact the financial picture. Lovejoy said the school budget was "doable" but that finances would be "extremely tight especially during the transition phase and would remain tight". Lovejoy projected from their figures the school would run in the "red" for the first 3 years at least and use up $3.5 million (half) of the district's reserve funds. Lovejoy stated in a bad economy, additional reserve funds may be needed.

LovejoyISD school financial success is tied to meeting property assessed value growth goals. This means that either property values increase to meet these goals or new construction must meet the goals.

In the event of either "flat" or "declining" property values or growth, the district estimated it might possibly survive 3 years.

Informational Meetings January 13th & 14th, 2003
(video tape of meeting available upon request)


Lovejoy ISD tax rate

Lovejoy tax rate has increased 14% in two years from $1.60 to $1.8234.
Lovejoy has yet to provide a secondary operations budget to explain the tax increase.

Lovejoy's Maintenance & Operations Tax Rate (M&O) is currently capped at $1.50.
All future tax increases will be for the Interest & Sinking (I&S) Fund which covers the cost of bond payments.

The tax rate was increased from $1.60 to $1.703000 in the Lovejoy ISD Board of Trustees Meeting, August 26, 2003.
Just a few short months before this tax increase, prior to the successful bond election, letters from the Lovejoy school district promised voters that if the bond passed there would be no tax increase this year. No secondary budget was provided to explain the need for the 8% increase.

Official Lovejoy ISD letters and unofficial letters to the Lovejoy community concerning the tax rate.

Tax rate 2003-2004
The proposed tax rate 2004-2005
was increased to $1.8234 after the Lovejoy board.

Lovejoy ISD Bond information
$61 Million Bond passed.
This will enable Lovejoy ISD to build a $30 million high school. An initial $10 million bond has been sold at historically low bond rates.

The bond issuance for the $20 million middle school and $11 million elementary school will be contingent on assessed property value growth.

Additional bonds can only be issued as long as they stay under the 50-cent property value cap.

Bond Presentation from official Lovejoy ISD web site.

Bond Sale of 23,190,000 on Sept. 21, 2004
True Interest Cost (TIC) of 4.4596%
Bond Documents on file for Lovejoy
Bond Preliminary Official Statement
Bond Final Official Statement

"TAX RATE LIMITATION. . . For debt service of unlimited tax debt: there is no limitation on the tax rate (Sections 45.001, 45.003(b)(1) and 45.003(e), Texas Education Code), provided, however, with respect to "new debt", the District must demonstrate to the Attorney General of Texas that it has the ability to pay all "new debt" with a debt service tax not to exceed $0.50 per $100 assessed valuation.

Once the prospective ability to pay such tax has been shown and the bonds are issued, a district may levy an unlimited tax to pay debt service, if required. In addition, taxes levied to pay debt service on bonds approved by district voters at an election held on or before April 1, 1991 and issued before September 1, 1992 (or debt issued to refund such bonds) are not subject to the foregoing threshold tax rate test. The Bonds are "new debt" and are subject to the $0.50 threshold tax rate test."






Unofficial Lovejoy website -
the only website that provides taxpayers with comprehensive financial and scholastic information at no charge.

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