A debt investment in which an investor loans money to a district for a defined period of time. The funds are used for construction, renovations, land acquisition and the purchase of equipment. A bond is similar to a home mortgage.
Most school districts in Texas use bonds to finance renovations, additions and new facilities. Springtown ISD does not receive any money from the state for the construction of new school buildings or improvements. Since school buildings serve the community for 50 or more years, it is well reasoned that taxpayers would pay for them over a period of 30 years and not from the district's annual operating budget.
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 and large-ticket items such as school buses. Bonds cannot be used for salaries or operating costs such as payroll, utilities, supplies, building maintenance, fuel and insurance.
School districts are required by state law to ask voters for permission to sell bonds to investors in order to raise capital dollars to renovate existing buildings or build a new school. Essentially, it’s permission to take out a loan to build and renovate and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home or home renovation. A school board calls a bond election so voters can decide whether or not they want to pay for proposed facility projects.
The Board of Trustees called a bond election in the amount of $38.5 million to be brought before voters on May 1, 2021.
The Board of Trustees called a $38.5M bond election for May 1, 2021 to address student growth and to relieve overcrowding. The proposed bond projects are the result of the board of trustees, district leadership and community reviewing academic programs adequacy, campus related capacity and community input as related to the issues the district is facing due to increased student growth. The District is constantly monitoring the growth in student enrollment as outlined in the updated demographic report and the number of current residential developments that are currently in the planning, platting and construction process. Springtown ISD is growing faster than anticipated as more students move into the District. All campuses, except for the high school, are nearing 100% capacity.
The proposed projects will include building a new Elementary campus, adding classrooms at the Intermediate and Junior High campuses along with an expanded CTE Welding Shop at the High School.
The Board of Trustees conducted a special called meeting on February 11, 2021 to formally called a bond election for May 1, 2021.
A school district’s tax rate is comprised of two components or “buckets”. The first bucket is the Maintenance and Operations budget (M&O), which funds daily costs and recurring or consumable expenditures such as teacher and staff salaries, supplies, software and utilities. The second bucket is the Interest and Sinking budget (I&S), also known as Debt Service, and that is for longer-term capital improvements approved by voters through bond elections. I&S funds cannot by law be used to pay M&O expenses, which means that voter-approved bonds cannot be used to increase teacher salaries or pay rising costs for utilities and services.
If the bond election passes, the projected tax impact is an additional 11.80 cents, resulting in a total tax rate of $1.3622. This represents a monthly increase of approximately $14.56 a month for a $173,033 home less its $25,000 Homestead Exemption, with a taxable value of $148,033 in Springtown ISD.
You can use the tax calculator on the Tax Impact page to calculate your personal tax impact found at Springtownisdbond.com. Enter your home value, the calculator deducts the $25K Homestead Exemption and will calculate your approximate monthly tax impact.
If you have applied for and received the Age 65 Homestead “Freeze” on your homestead, by law, your school taxes cannot be raised above their frozen dollar level, unless new improvements (adding square footage, outbuildings, swimming pools, etc…) are made, such as additions or renovations that increase the value of the home. For questions on Age 65 & Over Homestead Exemptions or property values call your County Appraisal District: Parker CAD at 817-596-0077 / parkercad.org or Wise CAD at 940-627-3081 / wise-cad.com Homestead Exemptions can downloaded under the FORMS tab: Age 65 & Over Homestead Exemption.
WHAT IF I AM OVER 65 YEARS OLD AND RECEIVE THE “SENIOR CITIZEN EXEMPTION” AND MY HOME VALUE GOES UP, WILL MY TAXES INCREASE?
The appraised value can change and the tax rate will change, but the amount of school taxes on your homestead cannot increase. Normal repairs, maintenance and the economic impact of the market cannot increase the amount of taxes you will pay once a tax ceiling is in place on that homestead. Therefore, if this bond election is successful, it will not have an impact on the tax bill for homesteads that are receiving the senior citizen exemption or “FREEZE”, unless you make significant improvements to your home by adding square footage or additional structures.
Any registered voter that resides within the Springtown Independent School District boundaries.
The deadline for voter registration is April 1 2021. If you are not registered to vote by this deadline, then you are not eligible to vote in this election. You can pick up a registration card from your local post office or you can register online.
You should receive a Voter Registration Certificate within 30 days. On Election Day, please bring your certificate to your local polling place if you have it. However, all that is required is a valid form of photo ID.
The district will issue bonds to be paid in 30 years.
WHEN WILL THE TAX RATE GO INTO EFFECT, AND IF A RESIDENT TURNS 65 DURING THE YEAR THIS YEAR, DOES THAT MEAN THEY ARE EXEMPT FROM ANY INCREASE?
By law, tax statements are sent out the end of October and due the following January. If voters approve the bond referendum on May 1, 2021, they will see an impact on their tax bill in January, 2022.
The 65 and Over Homestead Exemption goes into effect the year in which the property owner becomes age 65 and has applied for this exemption. If a taxpayer had an over-65 exemption in place by December 31, 2021, there will be no impact from the increased rate.