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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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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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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How will this impact me if I am over 65?

Benavides 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 Duval County CAD at 
https://duvalcad.org//

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Why did the district decide to move all students to one centralized location?

We know change is complex, and the decision to consolidate campuses was not made lightly. Due to a steady decline in student enrollment, this consolidation will allow for a safe and cost-effective district operation. By consolidating, we can better allocate resources, support our teachers, and ensure every child can access continued public education. We understand this impact on families and are committed to making this transition as smooth as possible.

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How will this affect that average citizen in Benavides ISD?

For more information on how this will affect the average taxpayer, we encourage you to visit our bond website and tax calculator to calculate how this will individually impact you.

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What is the district doing with the elementary school?

The district plans to explore options for repurposing the elementary campus following the consolidation
of campuses. This will occur regardless of the bond election outcome. The consolidation and migration
into one campus is already underway and will go into full effect in the fall of 2025.