Frequently Asked Questions
What are the different types of municipal bonds and how are those funds used for specific projects?
Municipal bonds are debt securities issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways or sewer systems. Municipal bonds issued by Texas school districts have several unique characteristics that differentiate them from other issuers of municipal bonds. Here is a brief explanation of how they differ:
Municipal bonds issued by Texas school districts ("school bonds") are used to fund capital projects, such as building new schools, renovating old ones, or purchasing equipment. Principal and interest on school bonds in Texas are repaid through property taxes, specifically from the Interest and Sinking Fund (I&S) tax. These school bonds are backed by the full faith and credit of the issuer, meaning the school district is obligated to levy a tax which is sufficient to make the yearly principal and interest payments on the bonds. Schools can also apply for and receive the backing of the Texas Permanent School Fund (PSF) Program, which is a state endowment that guarantees the repayment of school debt in case of default by the original issuer. The PSF is one of the largest educational endowments in the country, and has a AAA rating from all major credit rating agencies. School bonds are usually tax-exempt at the federal level, and the interest may also be exempt from state and local taxes if you reside in the state where the bond is issued.
Municipal bonds can also be issued by cities, counties, or other local governments that provide various services and amenities to residents within their limits. These municipal bonds are used to fund various municipal projects, such as airports, roads, parks, libraries, police, fire, and sanitation. Municipal bonds are also backed by the full faith and credit of the issuer, meaning that the issuer pledges to use its taxing power or other revenue streams to repay the debt. Municipal bonds of this type may be secured by multiple sources of revenue, such as property taxes, sales taxes, utility fees, or tolls. Most municipal bonds are usually tax-exempt at the federal level, and the interest may also be exempt from state and local taxes if you reside in the state where the bond is issued.
Therefore, there are some differences between school bonds and other issuers of municipal bonds in Texas that serve different functions and have different risks and rewards. To be clear, bonds authorized and issued by one municipal entity (i.e. a school district) can not be used by a separate municipal entity (i.e. a city or county). Bonds approved by voters of a municipality for use on specific projects can be assured that the funds will only be used on the projects of that municipality.
Who would be able to use the new complex?
The new complex would be used by DISD students and be available to Dawson parents, staff and community members.
What is the name of the new complex?
The new complex would be named the “Ed Mitchell Field”
Where would it be located?
Northeast of the Baseball/Softball Complex
How would the bond affect me?
Regardless of the outcome of the bond, the tax rate will be lower. If the $100,000 homestead exemption passes in November, your tax bill would also decrease.
Where can I vote?
You can find early voting and election day polling places by visiting the Navarro County website, or by following this link: Polling Places