Lewisville ISD
Lewisville Independent School District
Bonds 101
What is a bond?
A bond is a debt investment in which an investor loans money to a school district, with interest, for a defined period of time. Essentially, it’s similar to a family taking out a mortgage for the purchase of their home.
School districts issue bonds to pay for “big ticket” capital needs (i.e. new facilities, renovations, land, technology, etc.)
School Finance: The Big Picture
A school district’s budget is generated from three sources:
- Federal funding
- State funding
- Local tax effort (generated from property taxes, not sales tax)
We UnRAPPed more on this topic at LISD.net/unrapped.
M&O Tax Rate
Maintenance and Operations (the general fund)
Funds the day-to-day maintenance and operations of the district:
- Salaries (for teachers and other staff)
- Bus repairs, maintenance and fuel
- School supplies and materials
- Utilities (electricity, water, etc.)
For the average citizen, this is similar to:
- House repairs
- Car fuel
- Routine services
- Groceries
- Cleaning Supplies
- Utilities
School district M&O budgets support personnel salaries and related costs.
The Annual District Budget is passed by the School Board of Trustees.
The state caps the M&O tax rate at various amounts per $100 of property value.
If a district wants to raise the rate beyond the current cap, it requires voter approval through the holding of a Voter-Approval Tax Rate Election (VATRE).
Current LISD M&O Tax Rate:
$0.8559
I&S Tax Rate
Interest and Sinking (debt service)
Funds debt repayment for “big ticket” items:
- New building construction
- Existing building renovations
- Land purchases
- Program-specific equipment
- Technology
- School buses
For the average citizen, this is similar to:
- New home purchase
- House renovations
- Land for a home
- New appliances
- New home computer
- New car
I&S funds may only be used to repay debt.
They cannot be used for salaries, utilities or other day-to-day expenses.
Current LISD I&S Tax Rate:
$0.3809