What is a Bond?

What is a bond?


Bonds are a debt tool issued over a period of time for the purpose of raising capital by borrowing from investors. Bonds are sold by a school district to competing lenders to pay for the costs of large capital projects such as new construction, renovations of existing structures, or large equipment replacement.




Why hold a bond election?


Bonds are paid from ad valorem (property) taxes and, therefore, school districts are required by Texas state law to ask voters for permission to borrow money. If voters approve, the district will essentially take out a loan and pay back that loan with interest over time as designated by the agreed bond term limits (up to 40 year terms). This process is similar to taking out a home mortgage.





Finance

What is a bond?


Bonds are a debt tool issued over a period of time for the purpose of raising capital by borrowing from investors. Bonds are sold by a school district to competing lenders to pay for the costs of large capital projects such as new construction, renovations of existing structures, or large equipment replacement.




Why hold a bond election?


Bonds are paid from ad valorem (property) taxes and, therefore, school districts are required by Texas state law to ask voters for permission to borrow money. If voters approve, the district will essentially take out a loan and pay back that loan with interest over time as designated by the agreed bond term limits (up to 40 year terms). This process is similar to taking out a home mortgage.





Creation of a Bond Proposal

Who developed the bond proposal?


Project Kids was reconvened in April 2021 to assess and prioritize Allen ISD’s current and long-term facility and capital projects. All members who served on the 2020 Project Kids Committee were invited to serve on the 2021 committee. The 60-member citizen committee represented a cross-section of the Allen community and included parents, grandparents, parents with children who have already graduated from high school, individuals without children, teachers, and Allen High School students. The application process to join 2020 Project Kids was open to the community, and participants provided a wide range of viewpoints. Representatives from Project Kids presented a bond proposal recommendation to the Allen ISD Board of Trustees on May 24.





Voting

Who is eligible to vote in the bond election?


Any registered voter who resides within the Allen ISD boundaries. If you don’t know if you’re eligible to vote in the Allen ISD bond election, click here and use the login to check your voter registration status, elections on your ballot, poll location, early voting locations, and key election dates.




Is there a deadline to register?


Yes. The deadline for voter registration is Monday, October 4, 2021. If you are not registered to vote by this deadline, then you are not eligible to vote in this election. The Texas Voter Registration Application can be found here.




Can I vote on both propositions?


Yes. Voters should record their vote in each of the bond propositions on the ballot.





Ballot Specific Questions

Why does the ballot language say “This is a property tax increase” despite Allen ISD saying the tax rate will not increase?


In compliance with a new state law, ballot propositions must include the following statement: THIS IS A PROPERTY TAX INCREASE. As a result of this new requirement, voters in Allen ISD will see this language on both propositions; however, the district’s tax rate will not increase as a result of the 2021 bond election.




Why will there be two propositions on the ballot?


Allen ISD is complying with a new state law that was passed during the last legislative session. Senate Bill 30 requires school districts to offer certain projects on separate propositions.




What if I am over 65 years old and receive the senior citizen exemption and my home values go up, will my taxes increase?


The appraised value can change, but the amount of school taxes on your homestead cannot increase. 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. Therefore, if this bond election is successful, it will not have an impact on the tax bill for homesteads that are receiving the senior citizen exemption, unless you make significant improvements to your home.





Selling Bonds

Who developed the bond proposal?


Project Kids was reconvened in April 2021 to assess and prioritize Allen ISD’s current and long-term facility and capital projects. All members who served on the 2020 Project Kids Committee were invited to serve on the 2021 committee. The 60-member citizen committee represented a cross-section of the Allen community and included parents, grandparents, parents with children who have already graduated from high school, individuals without children, teachers, and Allen High School students. The application process to join 2020 Project Kids was open to the community, and participants provided a wide range of viewpoints. Representatives from Project Kids presented a bond proposal recommendation to the Allen ISD Board of Trustees on May 24.





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