Bond Package 2007 FAQs

What is a school bond?

A school bond is a contract to repay borrowed money on a given date and to pay interest at an agreed rate, similar to a home mortgage. Long-term financing is essential in the construction of school facilities.

Why do we need to have a school bond election?

Our fast-paced growth averages approximately 900 to 1,000 new students per school year. Our student enrollment has more than doubled during the last 10 years. Over half of the funds in the proposed bond are designated for new facilities to address PISD’s continued growth.

Who decided on the amount and specifics of the bond program?

The Citizens’ Bond Committee was formed in April 2007 to provide guidance to the district as the bond package was developed. The committee is comprised of community members from across the district, representing a diverse cross-section of PISD stakeholders, including parents, concerned citizens and senior citizens. The committee analyzed enrollment projections, funding priorities, campus needs and long-range planning. The committee made its final recommendation to the Board of Trustees, which called the bond election at its August 16 meeting.

How will the bonds be sold and paid?

The bonds will be sold over a period of years to coincide with the cash-flow requirements of various construction projects. In other words, the bonds will not be sold until they are needed.

How will my tax rate be affected if voters approve the bond?

PISD does not anticipate the need to raise the tax rate in order to fund the 2007 bond proposal. The district was recently able to retire $5 million in bond debt early, saving taxpayers nearly $2 million in interest expenses over the next 10 years. Based on those savings, and the assumption that the district’s tax base will continue to increase, PISD plans to fund the bond proposal without increasing the tax rate.

Will the bond referendum increase my taxes if I am 65 or older?

Although PISD anticipates no increase in taxes to fund the 2007 bond proposal, senior citizens who are 65 years old or older, and who have filed for a “freeze” or “ceiling” to be placed on their homestead school taxes, will not be impacted by a tax rate increase. Seniors can contact their tax appraisal district to receive the senior citizen exemption.

How well does PISD manage its money?

In 2006, PISD received credit ratings from two leading independent credit rating agencies, Moody’s Investors Service and Standard & Poor’s Rating Services. With the guarantee of the state’s Permanent School Fund, PISD was assigned the highest possible bond rating by both firms. Both services cited PISD’s effective management practices, growing tax base, competitive local property tax rate and stable financial performance as factors in the rating.

If the bond package is approved, can we use the money to hire more teachers or give our current teachers higher salaries?

No, the bonds that are sold cannot be used to pay teacher salaries. By law, bond money can only be used for new facility construction, facility renovation, technology, buses and major capital improvements.

How far into the future will this bond package support the district?

The 2007 bond package is designed to fund PISD’s capital improvements for the next three years.

How does this bond affect me if I don’t have children in school?

Public schools are a vital part of every community. Providing and maintaining educational excellence builds a more vibrant community where people want to live and businesses want to operate.

Have more questions?

Contact the Pflugerville ISD Community Relations Department at 594-0090