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Frequently Asked Questions

FREQUENTLY ASKED QUESTIONS

What is a Bond?

A bond is similar to a home mortgage. It is a contract to repay borrowed money with a low-cost interest rate over time. Bonds are sold by a school district to competing lenders to raise funds. Most school districts in Texas utilize bonds to finance new building construction, renovations, equipment, land purchases, and other capital 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. Bonds cannot be used for salaries or operating costs such as utility bills, supplies, fuel and insurance.

How much is the District asking for?

The Board of Trustees has called a bond election in the amount of $59.75 Million to be brought before the District’s voters on May 6, 2017.

Why is a bond being proposed to pay for school facilities?

A bond is being proposed because the district does not have funds in the amount of $59.75 Million to pay for these proposed facilities, renovations. By using a bond, the district is able to spread the cost of the facilities over their useful life (similar to having a mortgage on a home) and allow future residents to assist in the payment of the facilities.

Will new residents help pay for the bond program?

As additional homes and other taxable properties are constructed within the district, additional tax dollars would be generated for the payment of the bonds. As the district’s tax base grows larger, the percentage of the bonds paid for by each taxpayer declines. The additional commercial, industrial and business growth that comes with the residential developments also will help reduce the overall tax base.


TAX IMPACT

How will the bond package affect residents who are 65 years old or older?

For residents, who are 65 or older and own their own home and have received an “over-65 homestead exemption,” there is a tax ceiling on the amount of school taxes that they pay.

Persons who have the over-65 exemption do not pay more taxes – even if the school district raises its tax rate or if the appraised value of their home increases.

School taxes on the home cannot increase as long as they own and live in that home. The tax ceiling is the amount paid in the year the taxpayer qualifies for the over-65 exemption. School taxes may be below the ceiling, but not above the ceiling amount.

If a couple owns a home together and only one is 65 or older, they both qualify for the over-65 exemption.

Taxes for those 65 and older can only go up if substantial home improvements are made on the home.

Example of Taxes for 65 or older who have filed tax exemption forms:

Current Interest and Sinking Taxes (I&S)

Value of Home: $100,000

Value of Home after $25,000 homestead exemption*: $75,000

I&S Taxes due to Bexar County Appraisal District for SISD I&S taxes: $149.85 per year

I&S Rate when 2017 School Bond Passes (Assuming no appraisal district change in appraisal):

Value of Home: $100,000

Value of Home after $25,000 homestead exemption*: $75,000

I&S Taxes due to Bexar County Appraisal District for SISD I&S taxes:  $149.85 per year

I&S Rate When 2017 School Bond Passes (Assuming appraisal district change in value of 8%)

Value of Home: $108,000

Value of Home after $25,000 homestead exemption*: $83,000

I&S Taxes due to Bexar County Appraisal District for SISD I&S taxes: $149.85 per year

*Texas State Law

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