Bond FAQs
Frequently Asked Questions
This section addresses the topics and questions we’ve heard most often from across the NEISD community. If you’re looking for quick answers to common concerns about the 2025 bond, this is the best place to start.
What is a bond election?
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 annual 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 can only levy I&S taxes in the amount necessary to repay the bonds. If the amount needed to pay the bonds is less, the district taxes less.
How will the proposed bond affect my taxes?
State law (Texas Education Code § 45.003(b-1) and Election Code § 52.072(e)(1)(B)) require that all school bond propositions on the ballot include the statement “THIS IS A PROPERTY TAX INCREASE”—However, the District anticipates no increase to the current tax rate due to sound financial planning and debt restructuring.
For taxpayers age 65 and older
- Taxpayers who qualify for the Age 65 & Older Exemption already have their school district taxes frozen. These taxes will not increase as long as you live in the home and do not make significant improvements, such as adding a garage or additional living space.
- The Age 65 & Older Exemption reduces the taxable value of your home, which may lower your property taxes.
- In addition to the school district tax ceiling, other taxing entities—such as the City of San Antonio and the Alamo College District—also provide a tax ceiling for qualifying homeowners.
To qualify for the Age 65 & Older Exemption:
- You must be 65 years of age or older.
- You must own and live in the home.
- A surviving spouse, aged 55 or older at the time of the spouse’s passing, may continue the exemption if their spouse was claiming it at the time of passing.
How did the District determine the bond projects?
The Facilities Steering Committee, a diverse steering committee made up of parents, staff, and community members, met over several months to study data and prioritize projects. This bond proposal is based on their recommendations. You can review the committee’s work here.
What is the role of the school district during a bond election?
By law, the role for any school district during a bond election is to share factual information with the voters so the community may make an informed choice as to whether they wish to support or oppose a bond proposition. The district should also be responsive to citizens’ questions related to the bond issue and to ensure voters know when and where they have an opportunity to vote.
How does the bond process work?
- The Board of Trustees call for an election.
- If bonds are approved by voters, bonds are sold to investors.
- Bond proceeds are used for voter-approved capital projects.
- The tax rate is set in two parts: one to cover the operating costs (payroll, supplies, equipment, insurance, utilities, etc.) and the other to pay principal & interest due on the bonds each year.
How can bond funds be used?
Bond funds can be used to pay for capital expenditures, such as new buildings, additions and renovations to existing buildings, land acquisition, technology, buses, and equipment, among other items. By law, bond funds may not be used to fund daily operating expenses, such as salaries or utilities, which are paid for out of the district’s Maintenance & Operation (M&O) budget.
How do Texas school districts fund major capital projects?
In the State of Texas, the sale of bonds is the funding mechanism for school districts to raise funds for capital projects. When a district determines that it has needs beyond the capacity of the maintenance and operations budget, the Board of Trustees may call for a bond election. If voters approve the bond package, then bonds are issued to pay for the approved projects. NEISD does not receive assistance from the State of Texas to repay debt or build facilities.
Can bond funds pay for teachers?
Bond funds cannot be used for employee salaries. The Maintenance & Operations (M&O) tax rate funds the district’s day-to-day operations, including salaries.
Additional Questions
Here, we share and respond to unique questions submitted by community members. These may be about a specific facility, a particular project detail, or an individual situation. While not every question here has been asked by many people, we believe it’s important to acknowledge and answer the diverse range of input we’ve received.
Regarding the Madison high school improvements, Specifically, the upgrade main building water distribution piping. Will that cover the installation of new water fountains, and will water bottle fillers be a part of this upgrade?
Will the improvements to BAC parking lot include lighting? I work at the tennis center and we have had multiple car break ins at night during our tennis leagues.
How will this bond effect iCSI?
On the webpage, you can filter by campus in the project list. Select iCSI to see the projects for that program.
When will the original Churchill Main Building (ABC) be torn down and replaced?
Regarding the Madison high school improvements, specifically, the upgrade main building water distribution piping. Will that cover the installation of new water fountains, and will water bottle fillers be a part of this upgrade?
There is a separate project on the list to replace drinking water fountains with fillable water bottle options at multiple schools.
What if a school is closed that has approved projects pending? Can money be moved to another project?
The proposed bond package was developed by a Facilities Steering Committee that reviewed District facilities, enrollment trends, building capacity, and instructional needs. Projects identified by the Facilities Steering Committee and recommended to the Board of Trustees are preliminary and subject to change, especially the estimated costs for projects (which are based on consultant estimates) and the timing of projects due to contractor availability, disruption of a campus, supply chain limitations, among others. The project list is available on this web site under the Projects List section. Funds can be spent on projects within the same proposition, but funds may not be moved from one proposition to a different proposition (Proposition A, Proposition B, Proposition C, Proposition D, and Proposition E). When NEISD consolidated three campuses for the 2025-2026 school year, those facilities were not closed and remain in use by our District. Additionally, the walking tracks and/or playgrounds at the consolidated campuses remain open for community use.
Can the bond be used to phase out the portables and build an additional building at Harmony Hills?
The proposed bond package was developed by a Facilities Steering Committee that reviewed District facilities, enrollment trends, building capacity, and instructional needs. A portable replacement project at Harmony Hills Elementary is not an identified project.
Why aren't you using your existing budget to address these items?
Our District’s Maintenance and Operations (M&O) budget provides funds for daily expenses such as payroll, supplies, equipment, insurance, and utilities. The M&O budget also covers routine maintenance of our facilities. The Interest and Sinking (I&S) portion of our District’s tax rate generates funds that can only be used to repay bonds authorized by the voters and issued by the District to finance capital improvements, such as renovations and improvements to address aging facilities and infrastructure along with safety and security improvements.
Will schools such as Huebner finally get a secure vestibule?
If approved by voters, all schools will have a secure vestibule at the conclusion of Bond 2025.
How many Bonds are still active? Will we still be paying on past bonds with our property taxes if these are approved? How long do we have until all past bonds expire? Is there a link to this information?
If approved, when would work begin on these projects?
If voters approve the bond propositions, a five-year Capital Improvement Bond schedule will be released after Board approval and will show the timeline for each phase of the program and its projects—planning, design, bidding, construction, and warranty. The start of project schedule will depend upon when funds are secured.
Would we be able to purchase these bonds?
Yes, but you must purchase through your broker.
Financial Transparency
How will the proposed bond affect my taxes?
Through careful financial management, NEISD has lowered overall debt costs by strategically refinancing bonds at lower interest rates and using defeasance to retire higher-cost debt early. Since 2012, these practices have saved taxpayers nearly $193 million. By actively monitoring market conditions and responsibly managing repayment schedules, the District has reduced long-term obligations while continuing to invest in safe, modern facilities for students.
What is FIRST?
The Financial Integrity Rating System of Texas (FIRST) evaluates how responsibly school districts manage public funds. Superior Achievement is the highest rating.
NEISD has received a “Superior Achievement” rating on TEA’s Financial Integrity Rating System of Texas (FIRST) 22 years in a row (1)
What is defeasance?
Paying off or setting aside funds to retire higher-cost bonds earlier than scheduled to reduce interest costs.
Think of defeasance like making an extra mortgage payment. When a homeowner sends in extra payments, those funds go directly toward paying down the principal balance, which reduces the total interest owed over the life of the loan. Similarly, when NEISD uses defeasance, the District sets aside money early to retire higher-cost bonds ahead of schedule. This reduces the overall interest paid and saves taxpayers money in the long run.
What is refunding?
Replacing existing debt with new bonds at lower interest rates to save money over time.
Refunding bonds is like refinancing your home loan. Just as a homeowner might refinance their mortgage to take advantage of lower interest rates and reduce monthly payments, NEISD refinances bonds when market conditions allow. By replacing older, higher-interest debt with new bonds at lower rates, the District lowers the total cost of repayment and saves taxpayers money over time.
What is the administrative cost ratio?
A Texas Education Agency (TEA) metric used in the Financial Integrity Rating System of Texas (FIRST) which measures the percentage of their budget that Texas school districts spent on administration.