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.
What is a bond election?
Bond elections are called by school districts to ask voters for permission to sell bonds in order to obtain money required for capital projects such as renovations or building a new school. Essentially, when voters approve a bond election, they give the school district permission to take out a loan and pay that loan back over an extended period of time, much like a family takes out a mortgage for their home.
How can bond funds be used?
Bond funds can be used to pay for new buildings, additions and renovations to existing facilities, land acquisition, new buses, 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.
Exactly what and how much is the proposed bond package?
The bond proposal includes two propositions totaling $275,000,000.
Proposition A is for $244,700,000 and includes the following projects.
An addition to the Krum Early Education Center
A new elementary school
Renovations to the Hattie Dyer Elementary Campus
A new high school
Proposition B is $30,300,000 for new district stadium.
How will this impact the tax rate and the amount of taxes I pay?
If approved, the sale of bonds will require a tax increase not to exceed $0.115 per $100 of property value. This Tax Impact Calculator will help you understand the monthly impact.
What if I am over 65 years old? What is the tax rate I pay?
Residents 65 and over are eligible for an “over 65” exemption. If you have applied for and received the age 65 and older exemption on your homestead, by law, your school taxes cannot be raised above their frozen level. The amount of taxes you pay is determined by the tax amount at the time your taxes were frozen.
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, 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. The school district tax rate will not change as a result of this bond election.
How was the bond package developed?
The bond package was developed after months of studying project options, potential construction costs and gathering community input. Visit the Process page to learn more.