In the first post on the district’s 2016-2017 budget, we looked at the Maintenance and Operation’s side of the budget. Today, we will look at the Interest and Sinking (I & S) portion of the budget.
The I & S budget serves one purpose: it pays for the voter approved bonds that were issued for construction projects. Currently, the district has an outstanding debt amount of $10,060,000. The proceeds from these bonds were used to fund renovations throughout the district a few years ago and to build the Kirk Gym and the new transportation facility. The last payment on these bonds will be made on August 15, 2030. That date could change if any of these bonds are refinanced again. Since the original issuance of these bonds, the district has refinanced them at a lower interest rate that has literally saved the district, and the taxpayers of this district, hundreds of thousands of dollars.
EISD’s adopted tax rate for 2016-2017 is $1.23. Of that overall rate, $0.19 is used to pay for the bonds. The money raised by the $0.19 tax can only be used to pay for voter approved bonds. The proceeds of this I & S tax are kept in a totally different fund than the funds raised through the $1.04 M & O rate. For the 2016-2017 school year, EISD will be required to make a principal payment of $565,000 and an interest payment of $336,825. The principal amount and a portion of the interest amount is paid in February. The remaining interest amount is paid in August.
As always, if you have any questions, concerns, or comments about how our I & S funds work, please do not hesitate to contact me at firstname.lastname@example.org.