Mobirise

Bond FAQs

What is a Bond?

A municipal bond is similar to a home mortgage. It is a contract to repay borrowed money with interest over time. Bonds are sold by a school district to investors to raise funds to pay for the costs of construction, renovations, 
and equipment.

Why can’t BDISD pay for these projects with their current budget?

The District does not have sufficient fund balance to cover the costs of the proposed projects. In the current school financial system, large capital improvement projects are typically funded through bonds. This allows for voters to have a say in the process. Bonds also allow for costs to be spread across the useful life of the improvements so that current taxpayers do not bear the entire cost.

How is the District’s 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 tax is used to operate the school district, including salaries, utilities, supplies, food, gas, etc. The I&S tax can only be used for the repayment of bonds. Bond sales only directly affect the I&S rate.

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, and large-ticket items such as school buses. Bonds cannot be used for operating costs, such as salaries, utility bills, supplies, fuel, and insurance.

Mobirise

How does the BDISD tax rate compare to similar districts?

For more information, contact 254-728-3277 or visit bdisd.net