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.

 

What is a bond election?

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 cover things such 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, 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.

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If the bond election is passed, does the school district immediately incur the debt?

The bonds do not cost the District anything until they are sold. Even though the voters approve the bond issue, no costs are incurred until the bonds are sold. This ensures that the District only incurs debt once it approves the sale of the bonds after the election.

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What changed from the 2023 bond?

After the unsuccessful November 2023 bond, the district developed a committee open to the community. This committee, comprised of a cross-section of residents, evaluated and assessed the facilities and ultimately prioritized the projects outlined for the May 2025 bond.

 

How will this bond affect renters?

Renters are not directly impacted, as they are not the ones paying the property tax bills; that responsibility falls to the property owners or management company. Whether or not the property owners pass along any potential increase would ultimately be up to them.

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How will the projects included be done within budget?

Both the Ingleside ISD facility committee and the IISD board of trustees have worked to create a plan that addresses the budget, design, and construction processes. Continuous updates on planning, progress, and the timeline will be shared with the community.

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Is this something that the board or superintendent decided?

No. While the board of trustees participated in the planning, a citizens committee was established to give the community a voice in the process. Ultimately, it was the committee that recommended that the board call the bond election.

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Why can’t the district use its fund balance to pay for the projects?

Although the district has a healthy fund balance, it is not sufficient to cover multi-million-dollar projects. The fund balance is designated for operating expenses, including teacher salaries and other routine costs. Texas law anticipates that capital projects be funded by bonds, not savings.

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Can bond dollars be used for salaries?

No, by law, the I&S rate cannot be used for salaries or ongoing operating expenses. The M&O tax rate funds salaries, utilities, student learning supplies, and other operational expenses. The state dictates the M&O tax rate and the amount of money the district receives from it.

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If the state determines the M&O tax rate, do they have a say in the I&S rate?

No, the only input the state has on the I&S tax rate is that school districts cannot pass or sell bonds that would require the board of trustees to set an I&S rate of more than $.50. Outside of that, I&S tax dollars stay within the district.

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It seems like the school keeps raising the value of my home. How do they expect me to live?

Property values are determined by your county’s appraisal district (CAD). Ingleside ISD and the CAD are not affiliated, and they are governed by separate boards of trustees. IISD plays no role in determining property values.

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My property values continue to rise. Can’t the district just use my extra taxes to pay for this?

IISD receives funding through local property tax collections and state funding. Since the state determines the district’s operating budget, any increase in local collections results in a corresponding decrease in state funding. Therefore, Ingleside ISD’s operating budget does not increase with additional tax revenue.

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How will this impact me if I am over 65?

Ingleside ISD residents 65 and older, who have properly applied and qualified for the exemption, will have their tax bill frozen, unaffected by future appraisal or tax rate increases. However, significant improvements to your homestead may impact your bill. For information on how to apply, visit the San Patricio County CAD website at sanpatcad.org