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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. All school districts in Texas utilize bonds to finance renovations and new facilities.
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. Bonds cannot be used for salaries or operating costs such as utility bills, supplies, building maintenance, fuel and insurance.
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 for projects such as renovation to existing buildings or building a new school. Essentially, the voters are giving permission for the District to take out a loan and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home.
HOW MUCH IN BONDS DOES THE DISTRICT NEED TO SELL?
The estimated cost to complete all of the proposed projects is $282,400,000. Proposition A is $278,500,000 for capital improvements and Proposition B is $3,900,000 for technology devices.
WHAT IS THE IMPACT ON SENIOR CITIZENS IN THE DISTRICT?
Homeowners 65 years of age and older will see no increase in their school property taxes as long as they have filed for their senior citizen homestead exemption.
IS THE ENTIRE AMOUNT ISSUED ALL AT ONCE?
No. The district will only issue bonds to cover the cost of projects at the time they are needed and approved by the School Board.
WHO DO WE CONTACT IF WE WANT MORE INFORMATION ABOUT THE BOND REFERENDUM?
Email bondupdate@chisd.net or visit chisd.net/bond
WHAT WAS THE PROCESS IN DEVELOPING THIS BOND PACKAGE?
Campus and department leaders participated in small focus groups and one-on-one interviews to identify and submit facility-related items that they felt were needed and/or would enhance security or student experiences. In the spring and summer of 2023, the Longhorn Futures Committee was tasked with prioritizing the suggested projects for a long-range plan. This committee was made up of a combination of Cedar Hill ISD staff, parents and residents. In February 2024, the Board voted to call for a $282.4 million bond election to include the priority projects identified by the Longhorn Futures Committee.
IS CHISD IN A REASONABLE FINANCIAL SITUATION TO HAVE THE BEST BOND RATING TO ENSURE MAXIMUM FUNDS OBTAINED?
There are several factors that ensure Cedar Hill ISD can get good buying power and low interest rates from their bonds.
- School districts can borrow money at lower, tax-exempt interest rates
- Texas school district bond issues can also receive the State Permanent School Fund Guarantee (“PSF”). This guarantee allows for the bonds to receive the highest credit rating of 'A’.
- With the PSF Guarantee, Cedar Hill ISD bonds will be priced at or near the lowest available interest rates at issuance.
WHAT ARE THE POSSIBLE TAX EXEMPTIONS AVAILABLE TO PROPERTY OWNERS?
Texas offers full or partial property tax exemptions for Residence Homestead, Age 65 or Older or Disabled Persons, Disabled Veterans and Surviving Spouses of Disabled Veterans, and Surviving Spouses of First Responders Killed in the Line of Duty. Most residents in Cedar Hill ISD receive the residence homestead exemption of $100,000 which reduces the market value of a home by $100,000. The reduced value after the Homestead Exemption is applied is called the taxable value, which is the value used to determine the tax owed. In November 2023 voters approved a ballot proposition that increased the homestead exemption from $40,000 to $100,000. That exemption means most Cedar Hill ISD taxpayers will have a lower tax bill this year.
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