School district plans $80M bond sale without increasing current tax rates

On February 5, 2025, the El Campo Independent School District (ISD) held a special meeting to discuss a significant bond proposal aimed at funding construction and equipment acquisition for school buildings. The meeting highlighted the district's financial strategy and projected growth, which are crucial for the community's educational infrastructure.

The district's financial advisor presented conservative estimates for projected growth at 2%, despite a historical average of 6.2% over the past five years. This cautious approach is intended to ensure fiscal responsibility as the district considers issuing bonds totaling approximately $80.9 million. The advisor noted that the current interest rate is projected at 4.5%, with hopes that it may decrease slightly by the time the bonds are sold, likely in mid-July following the upcoming election.

A key point of discussion was the impact of the bond on local property taxes. The financial advisor assured the board that the bond issuance would not raise the current tax rate, which is particularly significant for homeowners. For example, a homeowner with a property valued at $100,000 would not see an increase in their taxes due to this bond. This assurance extends to higher-valued homes as well, with the district aiming to maintain the tax rate at its current level throughout the bond's life.

In addition to the financial aspects, the meeting included a legal overview of the election order necessary for the bond proposal. The legal representative confirmed that the documentation was prepared and ready for the board's review, emphasizing the importance of a clear and structured approach to the bond issuance process.

Overall, the discussions during the meeting underscored the district's commitment to enhancing educational facilities while maintaining financial stability for its residents. As the community prepares for the upcoming election, the board's careful planning and transparent communication will be vital in garnering support for the bond initiative. The next steps will involve finalizing the election order and continuing to engage with the community about the benefits of the proposed funding.