- Coppell Independent School District
- Overview
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The learners of Coppell ISD are fortunate that the voters of our community share a passion for quality schools by passing the 2016 and previous bond referendums to provide the tools and facilities our students and teachers need to succeed. We appreciate the ongoing support of the CISD community and remain committed to making sure that the remaining bond savings funds are spent wisely and efficiently.
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What is a bond?
Texas independent school districts issue bonds to pay for capital expenditures. Districts repay the bonds through revenue generated from property taxes collected by the district. School district bonds are similar to a home mortgage in that the borrower repays the lender (in this case, investors) over time and in accordance to the terms of the bond sale. Another way to look at it is that a school bond is similar to a promissory note – it is a promise to pay back a certain amount of money that is being borrowed for a specific use, and it will be paid back with interest. There are state and federal laws and regulations on how school districts issue bonds and how the bond proceeds can be used. School districts may issue bonds to pay for construction, acquisition and renovations of school buildings; acquisition of sites for school buildings; purchasing equipment for school buildings and buying buses.
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How can bond dollars be used?
Under Texas law, proceeds of bond sales may only be used to pay for items with a useful life of more than one year. Texas law governs what revenue raised from school bonds may be used for. Texas Education Code §45.001(a)(1) says bonds may be issued for:
“(A) the construction, acquisition, and equipment of school buildings in the district;
(B) the acquisition of property or the refinancing of property financed under a contract entered under Subchapter A, Chapter 271, Local Government Code, regardless of whether payment obligations under the contract are due in the current year or a future
(C) the purchase of the necessary sites for school buildings; and
(D) the purchase of new school buses.”Bond proceeds may not be used for recurring expenses such as the district’s payroll or utilities.
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How do bonds impact the tax rate?
A district's property tax rate consists of a maintenance and operations (M&O) tax rate and an interest and sinking (I&S) tax rate. The M&O tax rate provides funds for maintenance and operations like salaries and utilities. The I&S tax rate, sometimes called the debt service tax rate, provides funds for payments on the debt that finances a district's facilities like bonds. The I&S tax rate is set at a rate that allows the district to pay the principal and interest payments due each year.
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How is the district’s overall debt structured?
When the district sells bonds to finance capital improvements the debt is structured in line with the life expectancy of the capital asset. For example, if the district sells bonds to pay for technology devices such as laptops or ipads, the payments for that debt is due within seven years. If the district sells bonds to pay for a new building, the payments for that debt are made over 30 years.
The district has issued bonds in various years and currently makes the principal and interest payments on all of that debt according to the debt schedule. As debt is paid off, the overall debt of the district is reduced. As new bonds are sold, the overall debt of the district is increased. The goal is to manage the amount of overall debt for the district while balancing the capital needs of the district.
The district has taken advantage of recent reductions in interest rates to refinance its debt through the issuance of refunding bonds. The district engaged in three bond refundings in 2020-2021. The results of these refundings is a $13.9 million savings in interest payments over the life of the bonds. -
Has Coppell ISD been a good steward of bond dollars?
Yes. Assigned in 2021, Coppell ISD’s bond ratings are Aaa/AA+, the highest ratings assigned to Texas school districts by Moody’s, Fitch Ratings, and Standard & Poor’s Rating Agencies. All items promised in the 2016 bond have been addressed and/or are in progress.
For 19 consecutive years, Coppell ISD has earned the highest rating of “Superior Achievement” in the state’s Schools FIRST (Financial Integrity Rating System of Texas) program. This rating shows that Coppell ISD’s schools are accountable not only for student learning, but also for achieving results cost effectively and efficiently. The report is based on staff, student and budget data that the financial services team submits annually to the Texas Education Agency.
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History of Bonds in Coppell ISD
History of Bonds in CISD
- 1985: $25 million - School Site/Buildings
- Phase one - built Austin Elementary and purchased land for school sites
- Phase two & three - construction of Coppell High School and equipped for additional elementary schools
- 1990: $29.5 million - School Buildings/Renovations
- Provided for construction of three elementary schools (Mockingbird, Wilson and Lakeside), additional classroom space at Old Lee Elementary, Intermediate School, Middle School, High School, improvements at various campuses (retrofit A/C, parking, traffic flow, reproofing), upgrade of Pinkerton Elementary, and acquisition of elementary sites.
- Provided for construction of three elementary schools (Mockingbird, Wilson and Lakeside), additional classroom space at Old Lee Elementary, Intermediate School, Middle School, High School, improvements at various campuses (retrofit A/C, parking, traffic flow, reproofing), upgrade of Pinkerton Elementary, and acquisition of elementary sites.
- 1994: $41.47 million - School Buildings/Renovations/Expansions
- Provided for construction of 4 elementary schools (Cottonwood Creek, Denton Creek, Town Center and Valley Ranch), 1 middle school (CMS North), classroom space at CHS, expansion of auxiliary services facilities, improvements at Old Lee, Austin & West; acquisition of 2 additional elementary sites, classroom technology.
- Provided for construction of 4 elementary schools (Cottonwood Creek, Denton Creek, Town Center and Valley Ranch), 1 middle school (CMS North), classroom space at CHS, expansion of auxiliary services facilities, improvements at Old Lee, Austin & West; acquisition of 2 additional elementary sites, classroom technology.
- 1999: $49.875 millionn - Expansions/Renovations/Technology
- Provided for CHS expansion, CMS West expansion and remodel, elementary school expansion, student support and instructional support facilities, technology improvements, air conditioning of elementary gyms and other maintenance projects.
- Provided for CHS expansion, CMS West expansion and remodel, elementary school expansion, student support and instructional support facilities, technology improvements, air conditioning of elementary gyms and other maintenance projects.
- 2006: $50 million - Land Acquisition/Technology/Renovations
- Provided for North Lake (Cypress Waters) land purchase, district-wide remodeling and renovation projects, security and safety upgrades, technology improvements, and other maintenance projects.
- Provided for North Lake (Cypress Waters) land purchase, district-wide remodeling and renovation projects, security and safety upgrades, technology improvements, and other maintenance projects.
- 2009: $55.9 millionn - Technology Equipment & Infrastructre, HAVC & Energy Management, Campus Improvements & Maintenance, Bond Note Conversion
- Phase one - renovations and repairs of facilities, technology updates, library materials and facilities, and playground equipment over the next five years
- Phase two - maintenance note conversion to finalize the purchase of CISD's 122 acres of North Lake (Cypress Waters) property
- 2013: $79.5 million - School Buildings/Renovations/Technology Equipment & Infrastructure
- Provided for construction of Richard J. Lee Elementary, technology infrastructure and equipment, campus safety and security, campus learning upgrades and renovations, band, library and classroom instructional materials and improvements, CHS expansion and renovations, campus maintenance projects and mechanical renovations.
- Provided for construction of Richard J. Lee Elementary, technology infrastructure and equipment, campus safety and security, campus learning upgrades and renovations, band, library and classroom instructional materials and improvements, CHS expansion and renovations, campus maintenance projects and mechanical renovations.
- 2016: $249 million - School Buildings/Renovations/Expansions/Technology Equipment & Infrastructure
- Provided for construction of CHS9, CMS West and Canon Ranch Elementary, expansion and improvements at CMS East, CMS North and CHS, security kiosks for all 18 schools, new bathrooms, repairs and updates at the nine footprint elementary schools, 200+ cameras for enhanced security across the district and technology infrastructure and equipment (including 1:1 technology devices for all students).
- 1985: $25 million - School Site/Buildings
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