Just as homeowners borrow money in the form of a mortgage to finance the purchase of a home, a school district borrows money in the form of bonds to finance construction,  renovation  and other capital projects. Both are repaid over time, but in order for a school district to sell tax supported bonds, it must go to the voters for approval. 

School districts are required by law to ask voters for permission to issue bonds in order to pay for capital expenditures for projects like building a new school or making renovations to existing facilities. Districts take out a loan and then pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their house. 

Bond funds can be used to pay for 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.  

The Kenedy ISD bond was developed by the Community Advisory Committee of parents, teachers, campus administrators, and community members. The committee met over the course six months to study district needs at all grade levels and campuses and discussed the future vision for Kenedy ISD students.  The group studied campus safety, a district-wide facilities assessment, demographic projections, and other data and made their recommendation to the Kenedy ISD Board of Trustees for consideration.  Their recommendation was approved unanimously by the Board. 

As state agencies, school districts rely on M&O funds to pay for the day-to-day education of the district's children.  

Bonds allow districts to spread the cost of expensive projects across time without affecting the district’s normal educational operations. Also, bond funds all stay with the district, and they are not subject to state recapture, fluctuations in revenue due to state mandates, or other negative economic influences.  

In short, bonds allow a school district to pay for facility construction or renovations or other capital expenses without impacting its education operations (M&O) fund.

The proposed bond package will focus on three areas: safety and security improvements, such as adding a security vestibule to the elementary school and upgrading access controls to better manage building access, as well as addressing priority infrastructure and facility conditions.

The bond package will NOT increase the current property tax rate for Kenedy ISD homeowners or businesses.

Whether or not this bond package is approved by voters, the district’s tax rate will remain the same.

Homeowners 65 years of age and older will see no increase in their tax rate as long as they have filed for their senior citizen homestead exemption.

However, significant improvements to your existing homestead can affect your bill.

A school district’s tax rate consists of two parts:

• Maintenance and Operations (M&O) which funds the General Operating Fund, which pays for salaries, supplies, utilities, insurance, equipment, and the other costs of day-to-day operations; and

• Debt Service (Interest & Sinking or I&S) can be used for a variety of special purposes, assuming voter approval. For example, they may finance facility construction and renovation projects, acquire land, or purchase capital equipment, such as technology, and transportation, such as buses.