What is a bond?
A bond is similar to a home mortgage. It is a contract to repay borrowed money with an interest rate over time. Bonds are sold by a school district to competing lenders to raise funds to pay for the costs of construction, renovations, and equipment.
FREQUENTLY ASKED QUESTIONS
What is a bond election?
It's like asking for permission to take out a loan. School districts, as per state law, need to get approval from voters to sell bonds to investors. This money is then used to renovate existing buildings or build new schools. Just like a family takes out a mortgage loan for their home, a school board calls a bond election for voters to decide if they want to pay for proposed facility projects.
Why do school districts need to sell bonds?
Most school districts in Texas use bonds to finance renovations and new facilities. This bond would allow the District to renovate and build District infrastructure, including school buildings, without impacting the District’s Maintenance and Operations funds, which funds cover such things as school programs, teachers, and staff.
How can bond funds be used?
Bond funds can be used to pay for new buildings, additions, and renovations to existing facilities, land acquisition, technology infrastructure, and equipment, new or existing buildings, and large-ticket items such as school buses. Bonds cannot be used for salaries or operating costs such as utility bills, supplies, building maintenance, fuel, and insurance.
How is the District tax rate configured?
A school district's tax rate is comprised of two components: the Maintenance & Operations tax (M&O) and the Interest & Sinking tax (I&S). The M&O rate is used to operate the school district, including salaries, utilities, furniture, supplies, food, gas, etc. The I&S rate is used to pay off school construction bonds. Bond sales only affect the I&S rate.
Where and how is the money going to be spent?
The bond funds will be used for the Construction, renovation, and equipment of school buildings in the districts, including renovations to the Junior High School and Gymnasium.
What actual improvements are going to be made?
The bond proposes renovations to JR High School, including new flooring and painting walls, and adjusting the classroom space to provide unique and flexible classroom spaces for hands-on, collaborative learning environments. These upgrades, such as a new carpet in the halls, a new HVAC Unit, and a complete renovation of the bathrooms, will enhance the learning and teaching experience. The Auditorium will also receive renovation for UIL competitions.
How much is going to each spot, and what are the priorities of that money spent?
How does the tax affect each of us? When does the tax go into effect?
An additional $0.17 of I&S tax rate will be levied per $100 value of taxable property. The charts show how the increased tax affects homesteads in the district. The tax will go into effect next fiscal year, and property owners will be expected to pay the tax in January-February 2026 if the bond passes.
When does Construction start, and what are its phases?
Construction will start in 2025.
What was the cost of building another new building and or gym, and why aren't we doing more?
The district looked at new buildings that cost $25m or higher. The decision to renovate rather than build a new school was made after a thorough evaluation of the district's available resources.
Why didn't the new school have enough capacity for everyone?
While the district is currently over capacity for the elementary school, the building was only intended to cater to the elementary students for instruction. The entire district would utilize the cafeteria and library, a role it will continue to fulfill. We host various events at JR High School. Renovating this building would allow us to use it for instruction as well, as the current elementary school will not.
Are they sure this will cover all construction costs, and we won't have to do a second bond like Rotan?
Gallagher did an estimated budget for the project which is conservative. The reason Rotan ISD had to restructure its project was due to COVID-19.