FAQs
GENERAL BOND QUESTIONS
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School districts are required by state law to ask voters for permission to sell bonds to investors in order to raise the capital dollars required to renovate existing buildings or build a new school. Essentially, it’s permission to take out a loan to build, renovate and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home. A school board calls a bond election so voters can decide whether or not they want to pay for proposed facility projects.
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Yes. Recent research by the Environmental Protection Agency suggests that a school’s physical environment can play a major role in academic performance. Leaky roofs and problems with heating, ventilation and air conditioning systems can trigger a host of health problems – including asthma and allergies – that increase absenteeism and reduce academic performance. Research links key environmental factors to health outcomes and students’ ability to perform.
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Big Spring ISD conducted a comprehensive Facilities assessment, demographic study and review of student enrollment projections. Based on the recommendation of results and information gathered through the Facility Planning Committee, a bond recommendation was made to the Board of Trustees.
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Without bond money, the district would need to redirect educational funds used for instructional programs and services to fund increased building maintenance costs.
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No, this bond does not include teacher salary increases. Teacher salary increases are determined by our Board of Trustees through a different process.
A school district’s tax rate is comprised of two components: the Maintenance & Operations tax (M&O) and the Interest & Sinking tax (I&S). M&O funds are used to operate the school district including teacher salaries, utilities, furniture, supplies, food, gas, etc. The I&S rate is used for capital projects such as school construction, infrastructure, renovations/additions, and technology . School bonds cannot be used for teacher salaries.
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Capital improvement projects for K-12 school districts in Texas are different than your typical construction project. In order to get a bid for a project, drawings are needed, and in order to get drawings, the district would need to hire and pay an architect’s fee to create construction documents – this includes going through an in-depth design process to ensure the facility being designed will support the end-users. Typically, before paying an architect to create construction documents districts want to put a bond measure before its voters, because while districts can hire an architect to begin design. It’s important to note that the money paid for this service – if done before the voters approve/reject a bond – would come out of the district’s operating budget and couldn’t be reimbursed if the voters do not approve the bond.
The amounts associated with the bond are created from project budgets that are “all-in” figures. Specifically, the proposed new High School’s budget is based off a rough scope of having 3 floors instead of 2 at approximately 260,000 square feet. It’s important to note that the district – in an attempt to keep costs lower – opted for a plan where the high school had a smaller ground footprint.
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Rental property does not have a homestead exemption. Therefore, it will be taxed at its Taxable Assessed Valuation assigned by the Howard County Central Appraisal District (CAD).
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Under Texas State Law, the district may ONLY use Bond proceeds for the purposes which the bonds are authorized by the voters. These purposes are included in the bond’s ballot language. Any variations to this are against the law and carry serious legal consequences.
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The district has been a partner with Howard College since 1956. The district currently has a long-term lease for use of the stadium that will be in effect until 2057. That current lease term is longer than the terms of the bond, but the agreement between Howard College and BSISD does not limit either party’s access, and allows for improvements to be made to the facility by Big Spring ISD.
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If the voters approve the bond and the project progresses, part of the programming and design process will be to get cost estimates for identified projects as well as the items within each project. These estimates won’t be real until construction documents are completed and a construction management firm’s bid is accepted by the district.
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See chart HERE.
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Yes, anyone 18 years or older who has registered to vote may vote.
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Yes. We will engage a geotechnical engineer for a soils report and a civil engineer to conduct a site boundary and topographical survey. Once we have this information back, we will be able to accurately study the finish floor elevations and drainage with the civil engineer and structural engineer. This is an important part of the design process which will be a collaborative process with the school district, architects, and engineers over the next year to ensure a successful project through construction and years to follow.
TAXES
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The property taxes of those 65 and older with a homestead exemption would not be affected if the bond referendum passes. Taxes of those receiving the 65 and older homestead exemption are frozen at their present rate for as long as they maintain their homestead. You must apply for this exemption.
Click Here for the Howard County Exemption Form
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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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The current bond proposal for $219,000,000 would have a total impact of 31.8 cents for both propositions. Each proposition on the ballot is voted on individually and has a defined amount, scope and tax impact.
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This requirement was a part of new laws coming from Austin after the legislative session in 2019. The Texas legislature wanted the ballot language to be clear, that voted bonds were the method that we use to finance school construction. Paying for these voted bonds requires tax revenues.
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School bonds allow districts to raise money to pay for capital improvement projects at low interest rates. They act much like the mortgage on a home or property. The district’s facilities planning committee recommended a bond package in the amount of $219,000,000 and the board voted to place that bond amount on the May 4, 2024 ballot. When putting the budget together, the district’s independent, third-party financial analyst used a rate of 4.8%. It won’t be possible to provide an accurate estimate on how much interest will be paid unless the voters approve the bond and the bonds are sold. Bonds are typically repaid over a 30-year period; however, the district’s leadership intends to pay any future debt down quicker than required.
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How did this chart get calculated?
See Tax Chart HEREThe Howard County Central Appraisal District (CAD) supplies the district with what is called the Net Taxable Assessed Valuation of all property in the district – this figure is the district’s tax base, and it has all exemptions removed. When calculating figures the district’s financial analyst used this tax base number and a proposed maximum tax rate.
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Under Texas State Law, the district may ONLY use Bond proceeds for the purposes which the bonds are authorized by the voters. These purposes are included in the bond’s ballot language. Any variations to this are against the law and carry serious legal consequences.
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The district works with financial advisors with decades of experience and institutional knowledge who specialize in this. We will be selling AAA bonds (highest rated), and the 4.8% number is an estimate. It may be closer to 4.5%; however, estimates tend to be conservative by nature.