School property tax rates will not increase as a result of this bond proposal.

The efficient management of BISD’s existing bond debt over the last ten years has allowed the District to refinance more than $142.2 million of its outstanding bonds at a lower interest rate, saving taxpayers $18.4 million in future interest costs. The District has also prepaid approximately $29 million of its bonds prior to scheduled maturity, saving an additional $20.2 million in interest for taxpayers. BISD will continue to carefully monitor its bond debt and related interest rates in an effort to save taxpayers additional dollars in the future. 

The District repays its bonds on an annual basis over a period of 25 years or less, while structuring its annual bond payments to decline over time creating additional bonding capacity for future bond proposals. Furthermore, the District repays its bonds based upon the useful life of the assets for which the District is financing. As an example, BISD repays bonds issued for new school buildings over a 25-year period, but repays bonds issued for technology and other short-term assets over a period of three to 10 years.

Birdville ISD will have the ability to sell these additional bonds with NO school tax rate increase due to bond prepayments and the refinancing of current bonds at lower interest rates.

If the bond package passes, BISD’s board of trustees will once again form a citizen’s Bond Oversight Committee to oversee the bond to ensure everything in the proposal is completed and within budget.  

The final reports of the 2006, 2014 and 2018 Bond Oversight Committees said, “In summary, the Oversight Committee commends the Birdville Board, administration, and staff for completing all projects promised to the voters of BISD, on time and within resources available for construction projects … .”

The law provides that a school district must hold an election and get permission from voters to sell bonds and to levy taxes to pay for them. Bonds are sold to provide funding for capital improvements that last for a number of years. Such investments are too large to be included in operating budgets. Just as an individual agrees to repay a new home loan, voters authorize the District to sell and repay bonds for making major capital improvements. School boards may only levy taxes in the amount necessary to repay the bonds.

Bond money can be used for new schools and facilities, expansion and renovations of existing facilities, furniture, technology, equipment, buses and other support vehicles, and new school sites.

Bond money may not be used for personnel, raises, utilities, and other such operating expenses. Bonds may only be used for capital improvements and related costs.

1. The Board calls for an election.
2. If a bond referendum is approved by voters, bonds are sold to investors.
3. Proceeds are used for approved capital projects.
4. Each year, the school board must set a tax rate in two parts: one to cover the operating costs (payroll, supplies and equipment, insurance, utilities, etc.) and the other to pay principal and interest due on voter-approved bonds. 
5. The District may only collect what is necessary to repay the debt.

If voters approve the bond referendum in November 2024, work would begin immediately to design and develop a schedule of when work on individual campuses will take place. It is anticipated it will take 12 to 18 months to complete all three projects.

The Texas Constitution provides homeowners an “Over 65” property tax exemption when they turn 65. Upon qualification for the exemption, a homeowner may file an application with the Tarrant Appraisal District (TAD). Once the exemption is granted, the homeowner property taxes will not increase above what they were the year the homeowner turned 65.

For further information, you may contact the TAD at 817-284-0024 or on the web at www.tad.org.