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Western Refining's valuation win is loss for El Paso Independent School District

Thu. October 29, 2009; Posted: 02:48 AM
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EL PASO, Oct 29, 2009 (El Paso Times - McClatchy-Tribune Information Services via COMTEX) -- WNR | Quote | Chart | News | PowerRating -- The El Paso Independent School District will receive $2.7 million less from Western Refining in tax revenue after the refinery challenged its property valuation.

Not getting that much money will force the district to hold off on filling many vacancies for up to nine months at its administrative offices and could put off large purchases, school officials said.

"I was pretty well surprised by this," EPISD Superintendent Lorenzo Garcia said about receiving a notice in September that the district would receive less money from the refinery.

The school district recently wrapped up an agreement with the refinery over the issue.

Four other taxing entities -- the city, county, El Paso Community College and University Medical Center of El Paso -- also will be affected.

The county government this year will have about $800,000 less in property tax revenue from Western Refining.

The refinery filed a lawsuit against the El Paso Central Appraisal District challenging its property valuation for the property taxes it paid from 2006 to 2008.

This summer, the Central Appraisal District reached an agreement with the refinery that lowered its property valuation for those years.

That agreement was voted on by the Central Appraisal District's board, which includes two trustees from the EPISD.

EPISD school board Trustee Carlos Flores, an attorney, said he recused himself when the matter came before the Central Appraisal District's board.

He said the law firm for

which he works has represented the refinery in other cases.

Trustee Isela Castanon-Williams said she could not recall how she stood on the issue as a board member of the Central Appraisal District.

The school district will deduct the money from the refinery's $5.4 million property tax bill this year, said Kenneth Parker, chief business officer for the El Paso district.

The legal agreement between Western Refining and the appraisal district dated Aug. 26 allows the refinery to charge taxing entities interest if the money is not returned within 60 days.

But Parker said the refinery would not charge the district interest.

He said the school district would have to tighten its belt again after going through a difficult economic period.

If the school district cannot cut enough costs, it might have to dip into its rainy-day fund, Parker added.

The school district this year has already dipped into about $7.6 million in savings and could pull an additional $2 million from its rainy-day fund to pay for health insurance costs.

Garcia said not getting the expected money comes during a school year in which the district is opening four new campuses.

He said not getting the money from the refinery would not cut into money already set aside for educational programs and other school resources.

Michael D. Hernandez may be reached at mhernandez@elpasotimes.com; 546-6151.

To see more of the El Paso Times, or to subscribe to the newspaper, go to
http://www.elpasotimes.com. Copyright (c) 2009, El Paso Times, Texas Distributed
by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.
For full details on Western Refining Inc (WNR) click here. Western Refining Inc (WNR) has Short Term PowerRatings of 5. Details on Western Refining Inc (WNR) Short Term PowerRatings is available at This Link.

    


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