Previous Bonds and I&S Debt Info

The City of College Station is growing, and so is its school enrollment.  Depending on the year, CSISD enrolls 300 to 400 more students annually.  With this growth comes the need for more instructional space, technology, buses, and a host of other capital items which make a school district function at maximum efficiency.


In order to provide new buildings and infrastructure, school districts rely on selling municipal bonds.  These bonds are purchased by investors.  The district pays back the investor's original investment with interest.  It is akin to a family borrowing money to purchase a house or a vehicle.


CSISD is certainly not alone in experiencing rapid growth.  There are several school districts in Texas which are high-growth districts and have recently built a second comprehensive high school, just like CSISD.


See the chart below to see how CSISD’s I&S tax rate and total debt service obligations stack up against comparable districts.


School District

I&S Tax Rate

 

School District

I&S Debt

(principal + interest)

College Station ISD

$0.28

 

Magnolia ISD

$229,299,684

Georgetown ISD

$0.318

 

College Station ISD

$302,183,887

Tomball ISD

$0.35

 

Georgetown ISD

$326,836,795

Magnolia ISD

$0.3595

 

Bastrop ISD

$383,545,322

Northwest ISD

$0.4125

 

Rockwall ISD

$411,797,589

Rockwall ISD

$0.43

 

New Caney ISD

$437,468,698

Bastrop ISD

$0.441

 

Tomball ISD

$473,533,234

Burleson ISD

$0.50

 

Forney ISD

$553,076,112

Forney ISD

$0.50

 

Burleson ISD

$635,900,804

New Caney ISD

$0.50

 

Northwest ISD

$1,100,132,667


There are two tax rates CSISD residents pay each year in property taxes which go toward supporting the school district.


The first tax rate is the maintenance and operations (M&O) tax rate, which is currently set at $1.04 per $100 of valuation.  CSISD, or any other school district for that matter, does not borrow money for daily operations, which include employee salaries, paying the electricity bill, purchasing supplies, and any other day-to-day operations costs.  These items are covered solely through the money generated via M&O taxes.


The second tax rate is the interest and sinking (I&S) rate, which was reduced from $0.295 to $0.28 per $100 of valuation for this year.  The reduction is due to an approximate five percent increase in taxable values, as well as the district paying down its debt.  The district sets the I&S tax rate each year to coincide with the amount of money necessary to make payments on its bonds.  This money is not used for operations and, by law, can only be used for capital projects.  All debt service tax rate increases must be approved by voters and the maximum rate allowed by law is $0.50.


Big-ticket items, like school buildings and renovations, are financed for periods of 20-30 years, while items with a shorter shelf-life, like technology and vehicles, are financed for 5-10 years.


Additionally, school districts occasionally refinance bonds to get better terms and interest rates.  These refinances save the taxpayers a considerable amount of money.


The chart below outlines all of CSISD’s current bond obligations, including original bond sales as well as refinanced packages.  The chart also shows when each bond package is scheduled to be paid off and includes those obligations that have already been paid in full.


Bond Sale/

Refinance Year

Amount of Sale

Principal + Interest Owed

Payoff Date

1996

$20,000,000

$0

Paid Off / 2006

1997

$29,550,000

$0

Paid Off / 2007

1999

$8,000,000

$0

Paid Off / 2011

2002

$12,700,000

$0

Paid Off / 2012

2004

$32,000,000

$16,845,300

2024

2006

$9,350,000

$10,967,488

2019

2007

$67,420,000

$72,205,775

2027

2009

$37,500,000

$52,557,575

2034

2010

$65,000,000

$87,672,750

2035

2011

$41,700,000

$61,934,999

2036

 

 

 

TOTAL Principal + Interest

$302,183,887

 

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1812 Welsh College Station, TX 77840 Phone: (979) 764-5400 Fax:
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