Ferris ISD seeking $12-million bond approval

FERRIS – With 2020 being one of the most unprecedented years on record, the upcoming election will likely be a series of twists and turns too.

One item Ferris residents will want to take note of on the ballot is a bond election being called by Ferris ISD.

The school district recently put out a Q&A answering questions residents might be asking about what these two propositions are all about.

Question: What is the reason Ferris ISD is calling a bond election during the Covid pandemic?

Answer: The pandemic is temporary. The community and District continue to grow despite COVID-19, and the district must look at both immediate and future needs. 

There are three major home builders in the district constructing new housing developments. 

Children living under those rooftops will need classrooms and support facilities beginning as early as next school year. 

Question: How will this impact taxes?

Answer: Even with approval of this bond, the tax rate is projected to decrease by $0.13 this fiscal year and continue to decrease approximately $0.02 per year thereafter for the next five years. 

Question: Why does the ballot read “This is a property tax increase,” on both propositions if the District is not raising the tax rate?

Answer: The Texas Legislature passed a law in 2019 that requires this phrase to be included on every bond election ballot. As such, we have included the phrase to comply with the law since there will be new bonds sold.  

Question: How can this bond proposal be accomplished without a tax rate increase? 

Answer: Interest Rates are at historic lows, which makes interest payments on bond principal much less than past bonds, the District is able to use flexibility built into an existing debt profile to level-out annual payments, much of the district’s existing debt is structured in callable bond series that will permit refinancing the old bonds at specific points along the 20 year span at reduced interest rates, the current value of existing property in the District continues to increase steadily over time and the additional value of new home construction in the District in the next 24-48 months is projected to add approximately $220 million to the tax base.

For more information go to: https://youtu.be/6SXzwiBej9w