What is our current debt for bonds?
As of June 30, 2017, the district owed outstanding principal balance of $617.9 million. As of June 30, 2016, the ratio of net bonded debt to assessed value was 2.56 percent.
What is the limit on bonded indebtedness for school districts?
School districts must pass a $0.50 test with the Attorney General’s office in order to issue debt. There is a calculation that based on current values the debt tax rate will not exceed $0.50.
Can we afford to finance $898.4 million?
Yes. The ratio of debt service to assessed property values in Spring Branch is low. As debt/principal from prior bond authorizations has been paid, there is capacity for the new bond authorization without increasing the tax rate.
How long will the bond money last?
It is expected that the money will pay for improvements over the next 10 years.
How much does the state of Texas and the federal government pay toward building new facilities or improving existing schools in SBISD?
Not one cent. All funds for school sites and construction must come from the sale of bonds approved by residents of the district.
When will the bonds be sold?
Bonds will be sold through competitive bidding and in installments as funds are needed over the ten-year period.
Can the bond money be used for teacher salaries?
No. Under state law, proceeds from bond sales can be used only for constructing and equipping new buildings and improvements to existing facilities and certain other capital expenditures. The money cannot be used for ongoing or regular operating expenses, such as teacher and administrator salaries. Bond dollars must be expended for items with a useful longer life than one year.
If approved by voters, how and when will bonds be sold?
Bonds are sold through advertised competitive bidding or through an underwriter selected by the Board. Bonds are sold only as they are needed to begin work on the various Board-approved projects. No debt is incurred by the district until the bonds are sold and work is ready to begin.
How long will this bond money last?
The administration anticipates bonds would be sold and construction/renovation would occur over a 10-year period of time.
Will any school boundaries be changed as a result of this bond election?
There are no plans to change any school boundaries in Spring Branch ISD.
Are any schools being combined as a result of the bond program?
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