Bonds for school projects are very similar to a home mortgage. To finance construction projects or purchase land, the district sells bonds to investors who will be paid principal and interest over time. Payout is limited by law to 40 years. This bond's payout is expected to be for 30 years.
Bonds cannot be used for salaries or operating costs such as payroll, utilities, supplies, building maintenance, fuel, and insurance.
Bond funds can be used to pay for new buildings, additions, and renovations to existing facilities, land acquisition, technology infrastructure and equipment for new or existing buildings and large-ticket items such as school buses. Bonds cannot be used for salaries or operating costs such as payroll, utilities, supplies, building maintenance, fuel, and insurance.
School districts are required by state law to ask voters for permission to sell bonds to investors in order to raise capital dollars for the construction, renovation, and acquisition of school facilities, land, school buses, and other capital projects. Essentially, it’s permission to take out a loan to build and renovate and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home or home renovation. A school board calls a bond election so voters can decide whether or not they want to pay for proposed facility projects.
The Board of Trustees called a bond election in the amount of $65 million to be brought before voters on May 1, 2021.
FISD conducted a review and evaluation of current facilities to determine academic and program adequacy as we plan for the future. This review was led by District leadership and aided by demographers, engineers, architects, staff, and general contractors. Additionally, the District reviewed programmatic objectives for current and future academic and co-curricular instructional programs (i.e. Career & Technical Educational programs, Band, Fine Arts, Ag-Science, Athletics, etc.). This review also included the District’s financial position, facility limitations, and infrastructure.
Information regarding the District’s vision, facility capacity, and academic goals was shared, discussed, and analyzed with the FISD Board of Trustees, the District Facility Committee, and district staff. The Facility Committee was comprised of 31 members representing a cross-section of the Farmersville community. This process helped prioritize areas deemed most important to be recommended to the Board of Trustees for consideration leading to this called bond election.
A school district’s tax rate is comprised of two components or “buckets." The first bucket is the Maintenance and Operations budget (M&O), which funds daily costs and recurring or consumable expenditures such as teacher and staff salaries, supplies, software and utilities. The second bucket is the Interest and Sinking budget (I&S), also known as Debt Service, and that is for longer-term capital improvements approved by voters through bond elections. I&S funds cannot by law be used to pay M&O expenses, which means that voter-approved bonds cannot be used to increase teacher salaries or pay rising costs for utilities and services.
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|Tax Year||Total Tax Rate|
|2021 (proposed)||$1.393 (1)|
(1) Beginning in the year 2019-2020, the District's maintenance and operations tax rate is subject to compression pursuant to House Bill 3 that was enacted during the 2019 legislative session. This compression is not included in the proposed tax rate.
If you have applied for and received the Age 65+ Freeze on your homestead, by law, your school taxes cannot be raised above their frozen level. The appraised value can change and the tax rate can change, but the amount of school taxes on your homestead cannot increase. Normal repairs, maintenance and the economic impact of the market cannot increase the amount of taxes you will pay once a tax ceiling is in place on that homestead. Therefore, if this bond election is successful, it will not have an impact on the tax bill for homesteads having the 65 and Over Homestead Exemption or “TAX FREEZE", unless you make significant improvements to your home i.e. add square footage, pools, additions, etc. If you have questions about the Homestead Exemption or the 65+ "Tax Freeze" please contact Collin Co. CAD at 972-547-1990. They will send you a Homestead Application or it can be downloaded at collincad.org (Forms, Residential Exemptions, Residential Homestead Exemption Application).
Any registered voter that resides within the school district boundaries.
Most school districts in Texas use bonds to finance renovations, additions, and new facilities. Farmersville ISD does not receive money from the state for the construction of new school buildings or improvements. Since school buildings generally have a useful life of 50 or more years, school districts generally finance such facilities over time and not from the district's annual operating budget. The District expects to finance bonds with a 30-year maturity.
The deadline for voter registration is April 1, 2021. If you are not registered to vote by this deadline, then you are not eligible to vote in this election. You can pick up a registration card from your local post office or you can register online.
You should receive a Voter Registration Certificate within 30 days. On Election Day, please bring your certificate to your local polling place if you have it. However, all that is required is a valid form of photo ID.
The District expects to finance bonds with a 30-year maturity.
A specific timeline of projects will be finalized after a successful election. Tentatively, construction is expected to be completed before Fall of 2023 for all projects.