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.
Can bond funds be used to increase teacher salaries?
Bond funds cannot be used for salaries or operating costs of the district such as utility bills, supplies, etc. These expenses must come from the district’s maintenance and operations budget.
Bond funds can only be used to finance new construction and additions, renovations, land purchase, large equipment replacement, technology infrastructure, etc. Bond funds come from the district’s interest and sinking budget.
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.
If the bond proposal is approved, can the money be used for any other purpose than specified?
The district can only use bond funds for the purposes described in the bond proposal. Should there be a cost savings from projects, the Board of Trustees will consult with its legal counsel to determine how any excess funds may be lawfully spent.
Who developed the bond proposal?
The bond proposal was developed by the Facilities Planning Committee. The committee included more than 70 community members made up of parents, staff, local residents and civic leaders. The committee reviewed a district-wide facility assessment, district financial information and tax impact scenarios, and also toured the high school before developing and prioritizing potential project options.
All committee meetings were advertised and open to the public allowing all Sinton residents an opportunity to participate in the planning process.
What is the financial impact of the bond proposal?
Regardless of the outcome of this bond election, the district’s tax rate will not increase due to the financial impacts (added property tax base) of Steel Dynamics.
How is it possible to fund a bond without increasing the tax rate?
On July 22, 2019, Steel Dynamics announced that Sinton, Texas will be the location of their newest and largest steel plant complex. The new complex will bring nearly 650 new jobs and other supporting businesses to Sinton. This will more than triple the district’s certified value allowing the district to maintain the current tax rate of $1.4483.
Who is eligible to vote in the bond election?
Any registered voter who resides within the Sinton ISD boundaries. If you don’t know if you’re eligible to vote in the SISD bond election, Click here and use the login to check your voter registration status, elections on your ballot, poll location, early voting locations, and key election dates.
Is there a deadline to register?
Yes. The deadline for voter registration is Monday, October 5, 2020. If you are not registered to vote by this deadline, then you are not eligible to vote in this election. The Texas Voter Registration Application can be found here.