Do you care about the election bond? If you don’t, here’s why you should. A bond is a debt instrument in which an investor or group of investors loan money to the district. The District then repays the principal of the bonds, along with interest, over a period of time. On the day of the sale, interested investors submitted orders for the bonds, which had been priced according to market demands. Most bonds are purchased by large institutional investors or pension funds. Some may be purchased by retail institutions that sell them to individuals in the secondary market. Interest that was earned on municipal bonds by purchasers of the bonds are exempt from Federal Income Taxation.

                    Bond proceeds can only be used for the construction, acquisition, and renovation of school buildings, the acquisition being of land & purchase of capital equipment such as technology and school buses. The school finance formulas no longer provide the necessary funds that would allow the purchase of non-facility capital items through the General Operating Fund and still meet the ongoing day-to-day expenditures of educating students and running a large organization. In addition, it is an advantage to the district to pay for capital items such as technology, buses, land, and portable buildings with bond money rather than from the General Fund, as the cost can be spread over the life of the asset rather than a single purchase diluting the General Operating Fund. The voter approval was an authorization for the district to issue bonds so the bonds are sold in the future only when funds are needed.

                    So now we can talk about the district tax rate: a school district’s total tax rate consists of two parts. The first one is Maintenance and Operations and the second one is Debt Service, or Interest & Sinking. Maintenance and Operations taxes fund the General Operating Fund, which pays for regular operating expenditures of the district such as salaries, supplies, utilities, insurance, equipment, and other costs. Now for the people who are 65 or above, theirs will not increase as a result of a school election bond.

If you are looking for more information, visit website.https://www.cfisd.net/en/bond/ for a better understanding.