FREQUENTLY ASKED QUESTIONS

GENERAL

WHAT IS A BOND ELECTION?

School districts are required by state law to ask voters for permission to sell bonds to investors in order to raise the capital dollars required to renovate existing buildings or build a new school. Essentially, it’s permission to take out a loan to build, renovate, and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home. A school board calls a bond election so voters can decide whether or not they want to pay for proposed facility projects.

How did Community ISD determine which projects would be included in the bond package?

Community ISD hired Zonda Education to conduct a comprehensive demographic study and student enrollment projections for the next 10 years. Based on information gathered through the Facility Planning Committee, a bond recommendation was made to the Board of Trustees. Proposed bond projects are outlined below:

Proposition A - $595,604,000

• Four new elementary schools

• Two new middle schools

• Additions to high school

• Existing school renovations

• New Ag facility

• New support facilities, additions, and renovations

• Land and Project Manager
  

Proposition B - $19,338,000

• Stadium upgrades, press box, restrooms, seating capacity, and ADA requirements

• Additional parking for schools and athletics
  

Proposition C - $35,058,000

• Multi-Purpose Indoor Facility

  • Full length field, locker rooms, and classrooms

  • To be utilized by all extracurricular teams including, dance, campus events, field day, football, P.E. teams, band, cheer, soccer, track, and more

Is Community ISD Growing?

Yes. Over the next 10 years, CISD expects the student enrollment to reach 10,452 students. Right now, the total student enrollment is 3,479. In addition, CISD expects 7,500 new homes in the next 5 years, to be over capacity at all campuses within 2 years, and 6,000 total students within 5 years. 

Are we immediately going into $650 million of debt?

No. School bonds are sold based off of property values and growth. There is a preliminary evaluation each April and a certified evaluation every July that determines how many bonds Community ISD would sell. If growth slows and/or property values decrease, then CISD will sell fewer bonds. If growth speeds up and/or property values increase, then CISD will sell more bonds. These evaluations determine CISD's funding.

Will everything included in this bond be built at once?

No. If the bond is passed, it will be broken down into several phases. The first phase, which would start in the second or third quarter of 2022, is estimated to cost roughly $140 million, and would include two elementary schools, an additional middle school on the west side of CISD, and several other projects. Further phases would be used to fill future facility needs. More details will be announced at our town halls on March 22, April 6, and April 20.

Will CISD sell the full bond allowance if growth slows?

No. If growth slows or the housing market takes an unexpected turn or the facilities needed can be constructed for less than $650 million, then Community ISD will not sell the full $650 million amount. The bond election is just voting on whether or not to authorize the school district to sell a maximum of $650 million.

What if the bond doesn’t pass?

Based on current enrollment increased and projected enrollment numbers, the district will have to purchase portable buildings for each campus out of M&O funds by 2023/2024 school year.

Portables can cost anywhere from $1 million to $2 million per campus, and will increase student-to-teacher ratios and other operational expenses.

TAXES

How is the district’s 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.

What is the expected tax rate increase if the bonds are approved by voters?

There will be no I&S tax rate increase if the voters approve the bonds. Likewise, there will be no tax rate reduction if the voters do not approve the bonds. The debt service tax rate will remain at $0.50/per $100 of taxable value. Voters are voting on the issuance of new bonds. 

This requirement was a part of new laws coming from Austin after the legislative session in 2019.  The Texas legislature wanted the ballot language to be clear, that voted bonds were the method that we use to finance school construction. Paying for these voted bonds requires tax revenues.

There will be no tax rate increase associated with this bond but will continue the existing tax rate.  The new law requires every district in Texas to include this language on the ballot, regardless of the expected tax rate to be set.