Frequently Asked Questions

What is a school bond?

A bond is similar to a home mortgage. It is a contract to repay borrowed money with an interest rate over time. Bonds are sold by a school district to competing investors to raise funds to pay for the costs of construction, renovations and equipment. Most school districts in Texas utilize bonds to finance new facilities and renovations.

What is a bond election?

School districts are required by State law to ask voters for permission to sell bonds to investors in order to raise the capital dollars required to build a new school or renovate existing buildings. 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. A school board calls a bond election so voters can decide whether or not they want to pay for proposed facility projects.

How can bond funds 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 and large‐ticket items such as school buses. Bonds cannot be used for salaries or operating costs such as utility bills, supplies, building maintenance, fuel and insurance.

Why pass a bond now?

Interest rates are at their lowest. HISD has worked proactively to develop a Facilities Improvement Plan. This plan identified both the current state of the District’s facilities as well as its future needs. In order to protect facilities and maximize their utility, HISD must conscientiously maintain and renovate its buildings and sites.

What does the Bond include?

This plan includes improvements and construction of our VoAg Expansion which includes a Livestock Facility Addition, Metal Fabrication Addition, and Remodeling of the Existing VoAg Building, Band Hall Expansion and Renovation, Athletic Improvements, and District-Wide Needs.

The District-Wide Needs Include: two buses, replacing 50 HVAC systems, technology infrastructure, two Marquees, and the Elementary School playground. The HVAC systems are reaching the end of their useful life. (Age, maintenance, cost/repair...energy efficient units.)

How much is the Bond and how long will it be financed?

The bond will have two propositions: Proposition A is for $9,600,000.00 and Proposition B is for 2,175,000.00. Proposition B includes athletic improvements.

Total bond proposal is: $11,775,000.00

The bond will be financed in a 30-year bond level structure.

Items that have a short life will be paid out first- multipurpose field, buses, etc.

What is the age of our bus fleet?

1- 2003; 1- 2005; 2 - 2006; 1 - 2011, 3-2014, 2-2017, 2-2020

How are funds used for the District?

School district finance operates out of two funds: Maintenance and Operations (M&O) and Interest and Sinking (I&S).

M&O funds are for salaries, instructional materials, utilities, and daily operations. I&S funds (Bond money)can only be used for capital improvements, not for salaries or daily operations.