Frequently Asked Questions
What is a bond election?
Just as 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 construction, renovation and other capital projects. Both are repaid over time, but in order for a school district to sell bonds, it must go to the voters for approval.
How can bond funds be used?
Bond funds can be used to pay for new buildings, additions and renovations to existing buildings, land acquisition, technology, buses, and equipment, among other items. By law, bond funds may not be used to fund daily operating expenses, such as salaries or utilities, which are paid for out of the district’s Maintenance & Operation (M&O) budget.
How were the projects in the proposal decided?
The bond proposal was developed and recommended by the Strategic Planning Committee, a group made up of Canton ISD parents, staff, and local community and business leaders. They met during the 2022-2023 school year to study and prioritize the needs of the district.
If approved, when would the new campus open?
Designs are in progress and we could begin construction very quickly. The new school could be open by the fall of 2026.
What is the total amount of the 2023 bond?
The total bond amount is $114,700,000.
How will the bond affect my taxes?
If the bond is approved by voters, there would be no changes to the current Canton ISD tax rate.
How can our taxes not increase with the passage of a bond?
Canton ISD has set its I&S tax rate at $.431 cents. With current property values and with the existing rate, Canton ISD can make its bond payments on its existing and future debt payments. By law, $.50 cents is the maximum I&S tax rate a school district can set.
What is the difference between M&O & I&S tax rates?
Taxpayers pay a combined tax rate to Canton ISD that supports two different funds. The maintenance and operations (M&O) tax rate funds the general operations of the District. This is like the part of a household budget that pays for utilities, food, clothing and gasoline. As schools are a people-intensive business, approximately 80 percent of these funds go to salary and personnel costs.
The interest and sinking tax rate (I&S), often called the debt service tax rate, funds the debt generated by the issuance of schoolhouse bonds. This is like the part of a household budget that pays for the home mortgage, the car loan or a financed expenditure for a computer or other large item. Canton ISD must seek the approval of voters to authorize the issuance of bonds.
Our interest and sinking rate WILL NOT increase. With an increase in homestead exemption and compressed tax rate homeowners could see a decrease.
Why does the ballot say "This is a Tax Increase" if the tax rate will not increase?
Due to a new state law, you will see “This Is a Property Tax Increase” on your ballot. However, the CISD tax rate will not increase as a result of this bond election. This is standard language required on all school bonds, meaning taxes will have to be levied in order to repay the bonds. However, CISD can make all existing and new bond payments with the $0.431 I&S tax rate residents are currently paying.
What if I'm over 65 and receive the "Senior Citizen Exemption" and my home value goes up? Will my school taxes increase?
No, according to state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older cannot be increased above the amount paid in the first year after the person turned 65 – regardless of changes in tax rate or property value – unless significant improvements are made to the home. 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.