Frequently asked questions
What is a bond?
Bonds are a debt tool issued over a period of time for the purpose of raising capital by borrowing from investors. Bonds are sold by a school district to competing lenders to pay for the costs of large capital projects such as new construction, renovations of existing structures, or large equipment replacement.
Why hold a bond election?
Bonds are paid from ad valorem (property) taxes and, therefore, school districts are required by Texas state law to ask voters for permission to borrow money. If voters approve, the district will essentially take out a loan and pay back that loan with interest over time as designated by the agreed bond term limits (up to 40 year terms). This process is similar to taking out a home mortgage.