FREQUENTLY ASKED QUESTIONS
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.
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.
My property tax bill is higher than ever; why can't the District use the district taxes I already pay to cover new construction and renovations?
When your property values increase, the District receives less funding. The state legislature has established a basic per-student allotment for general operating expenses. Any tax revenue collected above this allotment goes to the state's general budget. If the bond is approved, the increased tax funds would be allocated to the District specifically for capital improvements outlined in the bond proposals. No additional funding is provided to the schools unless tax rates are raised or average daily attendance increases.
Do my taxes pay for children outside of the District? If so why do we keep letting transfers attend our school.
When students from other districts enroll in the District through the open enrollment process, the funds the state allotted for those students come to our District, not the District they're from. These students must provide their own transportation, and they fill empty seats. They increase our enrollment and provide additional revenue for the District. This is a clear benefit of the open enrollment system, and it's actually beneficial for our District to have these students.
Can the district sell bonds in one or more series?
In a discussion item on a recent board meeting agenda, the Anderson-Shiro CISD school board and Superintendent Dr. Sarah Borowicz received guidance from the district’s financial advisor, Mr. Lewis Wilks, with U.S. Capital Advisors, LLC, on the District’s plan to sell bonds as needed, should the 2024 bond election pass in November. Mr. Wilks cited verbiage directly from the proposition, beginning on page 3 of the official election order, that states, “…the Anderson-Shiro Consolidated Independent School District be authorized to issue and sell bonds of the District, in ONE OR MORE series, in the aggregate principal amount not to exceed $60,000,000….”
Is Anderson Shiro CISD actually growing?
Yes, it is. According to a recent demographic report, Anderson-Shiro CISD currently has an enrollment of 978 students, which already exceeds the projected total enrollment for the 2027-2028 school year.
Why was the administration building project undertaken?
To provide more educational space at the elementary school, the maintenance building was repurposed as an administration building. This project was approved by the ASCISD Board on December 11, 2023, and funded through the fund balance.
What changed from the May 2023 bond?
Following the May 2023 bond, the committee, which was diverse and represented a cross-section of our community, evaluated what was previously included and ultimately prioritized the new elementary school, the driveway, and renovations to the current elementary school for the November 2024 bond.
How will this bond affect renters?
Renters are not directly impacted, as they are not the ones paying the property tax bills; that responsibility falls to the property owner or management company. Whether or not the property owner passes along any potential increase would ultimately be up to them.
How will the bond impact special education students?
The construction of the new elementary school and renovations at the current elementary school will create specialized instructional spaces that will address the needs of our special education population. Anderson-Shiro CISD has experienced a 187% increase in the number of special education students.
Is this something 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 the Board call the bond election.
How will the projects included be done within budget?
Both the Anderson-Shiro CISD Facility Committee and the ASCISD Board of Trustees have worked to create a plan that is transparent and conservative. Careful consideration has been given to the budget, design, and construction processes. Continuous updates on planning, progress, and the timeline will be shared with the community.
What happens if the Bond does not pass?
Anderson-Shiro CISD will continue to educate all kids and teach them to be proud Owls.