Frequently Asked Questions
What is a bond?
A bond is similar to a home mortgage. It is a contract to repay borrowed money with interest 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. Most school districts in Texas utilize bonds to finance renovations and new facilities.
How can bond money be used?
Bond funds can be used to pay for new buildings, additions and renovations to existing facilities, land acquisition, technology infrastructure and equipment for new or existing buildings. Bonds cannot be used for salaries or operating costs such as utility bills, supplies, building maintenance, fuel and insurance.
What is a bond election and why did the district call for one?
Homeowners borrow money in the form of a mortgage to finance the purchase of a home. A school district borrows money in the form of bonds to finance new schools and renovation projects. Both are repaid over time, but in order for a school district to sell bonds (borrow money) it must go to the voters for approval. By law, bond funds may not be used to fund daily operating expenses or salaries. Bond funds may only be used for the projects described.
How am I financially impacted if I’m over 65 years of age?
The State Property Tax Code allows for school property taxes on an individual homestead to be “frozen” at the age of 65. If you are 65 years of age or older and you have filed for the “Over 65 Homestead Exemption”, there is a ceiling on the amount of school taxes to be paid. The only exception is if improvements are made to a home. As such, a tax increase from a new bond program cannot increase the applicable tax ceiling of a taxpayer that has qualified for the “Over 65 Homestead Exemption” unless improvements are made to the home.
Why does the ballot say “THIS IS A PROPERTY TAX INCREASE”?
State law requires this language on all school bond referendums. If economic conditions in the district became adverse, the district would be legally required to levy an I&S tax rate sufficient to repay the bonds. Equally if the conditions improve the I&S tax rate could be reduced accordingly.
Who is eligible to vote in this election?
Any registered voter who lives within the Pittsburg ISD boundaries — and whose voter registration is based on their current PISD residence — is eligible to vote in this bond election.
Can I still register to vote in time for this Election?
The deadline to apply for voter registration is April 4, 2024 in order to vote in the May 4, 2024 election. Register at VoteTexas.gov.
Information on the District’s 2013 and 2016 bonds and the District’s current bond indebtedness.
In 2013, the voters approved $10mm. The bonds were issued with a maximum amortization length of 18 years. The bond currently has seven (8) years remaining and will be paid off in 2031.
In 2016, the voters approved $11mm. The bonds were issued with a maximum amortization length of 20 years. The bond currently has fourteen (13) years remaining and will be paid off in 2036.
Prior to the 2016 election, the District estimated an I&S tax rate increase of 7.85 cents. After passing the election and issuing the bonds, the actual tax rate increase was 7.37 cents (from $0.1263 in 2015/16 to $0.2000 in 2016/17). The District has maintained $0.2000 ever since.
Historically, the District refinanced outstanding bonds in 2005 and 2012 for lower interest rates. Those refunding issuances have since been paid off.
Unlike personal finance, where families have one home and one mortgage. School districts have multiple buildings and therefore multiple financings for those buildings. It is very rare in Texas school finance for a school district to be able to pay off all prior financings before incurring another. The average amortization of Texas school bonds for renovations/additions is 20 years and 30 years for new construction. Texas schools cannot wait 20 to 30 years to have a bond election. The assets purchased from the last bond still have useful lives that will go well beyond the final maturity of the last bond. Likewise, the useful lives of the assets to be financed with this new bond will go well beyond the final maturity of this bond.
Summary of Work in the 2013 & 2016 Bond Programs:
o Primary School – Boys/Girls Toilets Additions
o Elementary School – Classrooms & Boys/Girls Toilets Additions
o Intermediate School – Cafeteria Improvements
o Intermediate School – Classrooms & Boys/Girls Toilets Additions
o Junior High School – Band Hall Addition
o High School – Gymnasium Dressing Room Addition
o High School – New Health Science Classroom Building
o High School – New Ag Classrooms/Shop Complex
o High School – Stadium Visitor Dressing Rooms
o Entry/Concessions/Bleachers/Press box/Scoreboard
o High School – Baseball Field Men/Women Restrooms
o High School – New Competition Gym
o Elementary School – Life Skills Building Addition