School districts are required by state law to ask voters for permission to sell bonds to investors in order to raise the capital dollars required for projects such as the renovation of existing buildings or building a new school. Essentially, the voters are giving permission for the District to take out a loan and pay that loan back over an extended period of time, much like a family takes out a mortgage loan for their home. A school board calls a bond election so voters can decide whether or not they want to pay for proposed facility projects. School boards then have the authority to sell bonds when facilities are needed.

Bond funds can be used to pay for new buildings, additions, and renovations to existing facilities, land acquisition, technology infrastructure, and equipment for new or existing buildings. Bonds cannot be used for salaries or operating costs such as utility bills, supplies, building maintenance, fuel, and insurance.

While the Mesquite ISD Board of Trustees sets the school property tax rate each year, the district does not determine the market value of homes and business property within the district. Values are determined each year by the Dallas County Appraisal District. 

Mesquite ISD actively maintains multiple aging facilities, some of which are more than 60 years old. While the district conducts regular maintenance on its older facilities, this bond would allow for more extensive projects to our existing facilities and maintain their good condition as they age. 

Last fall, Mesquite ISD formed a Facility Planning Committee comprised of over 45 community members, business leaders, students, staff, and parents. The committee was tasked with evaluating and prioritizing the current and future needs of the District while also assessing our current and projected growth in the southern section of the district. In January, representatives from the Facility Planning Committee presented their findings and recommendations to the Board of Trustees. 

On February 10, the Mesquite ISD School Board voted unanimously to adopt an order calling a $600 million bond election. The bond proposal will appear on the ballot as two separate propositions for various projects, including safety and security improvements,  safety and security, growth in the southern section of the district, and renovations and updates to aging facilities and equipment.

No. Bond funds can only be used to pay for certain things, like new buildings, additions/renovations to existing facilities, land acquisition, and technology infrastructure/equipment for new or existing buildings.

A school bond can have several impacts on local businesses, both directly and indirectly.

1. Increased Local Spending

• Construction and renovation projects funded by school bonds often involve local contractors, suppliers, and service providers.

• Local businesses that sell building materials, furniture, or employ the local trade pool can a boost in revenue.

2. Long-Term Economic Benefits

• Improved schools can lead to a better-educated workforce, which benefits local employers.

• Enhanced school facilities can attract families to the area, which increases demand for local goods and services.

3. Real Estate and Retail Growth

• Better schools often boost property values, which can drive residential growth.

• As more families move in, there’s a greater customer base for local businesses (retail, restaurants, healthcare, etc.).

Mesquite ISD employees may not advocate for or against the bond during work hours, on district property, or using district resources. Staff members are encouraged to educate themselves about the proposal. They can discuss their support or opposition with family and friends outside their work hours and professional duties. Staff may always share factual information—including posts or information from Mesquite ISD’s official channels (social media, bond website, staff newsletter, etc.)—to help others make informed decisions and encourage voter participation. However, they cannot encourage others how to vote.

A school district’s tax rate is comprised of two components: the Maintenance and Operations tax (M&O) and the Interest and Sinking tax (I&S). The M&O rate is used to operate the school district, including salaries, utilities, furniture, supplies, food, gas, etc. The I&S rate is used to pay off school bonds.

• In November 2022, Mesquite ISD voters approved a 3-cent increase to the maintenance and operations portion of the school district’s tax rate as part of the VATRE (Voter-Approval Tax Rate Election). The additional revenue generated by the additional M&O tax provided increased teacher and staff compensation, safety and security upgrades, and more academic opportunities and choices for students. Increases to the M&O tax revenue via the VATRE cannot be used for capital improvement projects. 

• Bond dollars are not allowed to be used for operational or salary costs. 

Construction costs have steadily increased year over year and are predicted to continue to rise. The district has accounted for anticipated inflation when planning costs associated with each project included in the bond.

The District is planning to repay bonds over a 25-year period and take opportunities to pay down debt, when appropriate. 

Interest rates are set at the time of pricing and are based on several factors, including:
 

1) District’s credit, which is called Bond rating

2) Permanent School Fund  (PSF) Guarantee

3) Current market environment

• The district can refinance existing debt at lower interest rates if the market environment is conducive (similar to refinancing a home mortgage)

• Since 2012, the District has refinanced debt at lower interest rates, resulting in over $60.6 million in gross savings.

• In 2024, the District refinanced its variable-rate debt into fixed-rate debt.

The district will evaluate land on both sites to determine the best location for the new building. Both the Motley and Lawrence campuses will remain open during construction. Once the new consolidated campus is complete, students from both campuses will start the new year at the new campus. Both of the old buildings will be torn down.