Spring Branch ISD issues bonds (debt or borrowing) to pay for expensive long-lived assets which include land, school buildings, equipment, buses, and technology. Borrowing allows cost to be spread over the useful life of the asset. As a result, tax payers who realize the benefit of the asset help pay for it which promotes intergenerational equity. Borrowing also makes purchases more affordable by reducing the pressure on the district’s budget in any given year. However, borrowing does increase overall cost as interest is paid.
Bond payments are supported by a dedicated Interest and Sinking Tax Rate. District officials manage debt to ensure timely payments as due while minimizing interest costs and maintaining the highest possible debt ratings from Moody’s Investors Services and Standard & Poor’s Rating Services.