What is a bond?
A bond is similar to a home mortgage. It is a contract to repay borrowed money with a stated interest rate over time. In Texas, most school districts utilize bonds to finance construction, renovations, and equipment.
Why is the District holding a May 2022 bond election?
- To improve the safety and security of AISD facilities
- To modernize the 1966 building
- To enhance academic and extracurricular spaces
How was this bond developed?
Planning for this bond began with an independent facility assessment of the 1966 building. The Board studied the assessment findings, created facility priorities, and discussed potential solutions. A Facilities Committee, consisting of parents, staff, and community members, was formed to review the facility information and give the Board additional input on bond timing and projects.
How is the District’s tax rate configured?
A school district’s tax rate is comprised of two tax rates: 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 bonds. Bond sales only affect the I&S rate. Abbott ISD’s current M&O rate is $0.9321 and the I&S rate is $0.2824 for a total tax rate of $1.2145.
What will this bond cost?
For the average Abbott ISD home valued at $135,236 in 2021 this bond will cost about $10.48 a month. The projected impact includes the increased $40,000 state mandated homestead exemption amendment that is also on the May 2022 ballot.
Will this bond increase taxes for over-65 voters?
No. If a homeowner receives the Age-65 Freeze on his or her homestead, the school taxes are frozen and cannot be raised above the frozen level unless significant improvements beyond normal repairs or maintenance are made to the home. Examples of a “significant improvement” would be adding a garage, building a game room, or adding a swimming pool to your property.
How does the new solar farm impact bond payments?
Over the life of the bond and based on current projections, the solar farm will pay roughly 61% of all bond payments. The Board of Trustees is planning to structure the bond repayment so that larger payments are made at the beginning when the value of the solar plant is at its highest. As the plant depreciates, the bond payments with decrease, allowing the tax rate to remain about the same throughout the life of the bond.
When was the last bond election in Abbott ISD?
In 2006, voters approved a $5,000,000 bond to add on to the School Building and athletic facilities upgrades.
Have the proposed projects been designed yet?
No. The square footages and estimated costs have been determined, but the design would happen after voter approval with teacher, staff, and administrator input on how to best implement Abbott ISD’s program goals.
Can bond money be used to pay teacher salaries or give teachers a raise?
By law, bond funds cannot be used for payroll expenses or any daily operational costs such as utilities, supplies, fuel, and insurance. Instead, bond funds can only be used for new buildings, additions and renovations, land acquisition, technology infrastructure and equipment, or school buses.
What happens if the bond fails?
The Board would revise the proposal and try again in the future. In the meantime, the Administration would continue using money from our operations budget to repair and maintain our facilities.
Would the schools be open during construction?
Yes. The projects would be phased for minimal disruptions to the learning environment. AISD administration will create a plan to maintain student and staff safety during construction.
Who can vote in this bond election?
Anyone at least 18 years of age by May 7, 2022 and living within the boundaries of Abbott ISD is eligible to vote. You must be registered by Thursday, April 7 in order to participate in this election.
How do I know if I’m registered to vote?
You can check your voter registration status at www.votetexas.gov.
How will the ballot be worded?
There will be 1 proposition on the ballot. Voters will choose “for” or “against.”
The proposition will read:
“THE ISSUANCE OF $12,000,000 OF BONDS BY THE ABBOTT INDEPENDENT SCHOOL DISTRICT FOR SCHOOL FACILITIES, ANY NECESSARY OR RELATED REMOVAL OF EXISTING SCHOOL FACILITIES, THE PURCHASE OF ANY NECESSARY SITES FOR SCHOOL FACILITIES, AND THE PURCHASE OF NEW SCHOOL BUSES, AND THE LEVYING OF A TAX IN PAYMENT THEREOF. REQUIRED STATEMENT FOR ALL SCHOOL DISTRICT BOND PROPOSITIONS PURSUANT TO SECTION 45.003, TEXAS EDUCATION CODE: THIS IS A PROPERTY TAX INCREASE.”