Generally, a bond is an agreement to repay borrowed money with interest over time, similar to a mortgage on a home. Bonds are issued by school districts to investors to raise funds to pay for the costs of construction of new facilities, capital renovations and equipment. Bonds are repaid over a period of time not to exceed 40 years by law.

School districts finance the cost of constructing, making capital renovations to and equipping facilities by issuing bonds. School districts are required by law to ask voters for permission to issue bonds to investors. Districts borrow funds through the issuance of bonds and then pay the bonds back over an extended period of time, much like a family takes out a mortgage loan for their house.

Texas school districts, like Dripping Springs ISD, are funded by three primary revenue sources — local revenue, state revenue and federal revenue.

Local Revenue
Local revenue comes from property taxes paid by residential and commercial taxpayers within the boundaries of a school district. In Texas, the tax rate of a school district that shows up on a property owner’s tax bill is a combination of two rates that fund different portions of the school district’s budget. These rates are the Maintenance and Operation or M&O Tax Rate, and the Interest and Sinking, or I&S Tax Rate. 

The M&O Tax Rate funds the day-to-day maintenance and operations of the school district like teacher salaries, utilities, and classroom supplies. This is also known as a school district's General Operating Fund. The General Operating Fund is the larger of the two tax rates. 

The I&S Tax Rate can only be used to pay off debt incurred by issuing voter-approved bonds. School districts are required to set the I&S tax rate at the level necessary to make the annual debt payments on all outstanding voter-approved bonds.

Dripping Springs ISD's M&O Tax Rate is currently $0.9429, and its I&S Tax Rate is $0.35 cents, for a Total Tax Rate of $1.2929 per $100 of taxable value.

The I&S Tax Rate has been $0.35 since 2017-18. The taxes collected by the I&S Tax Rate is collected and set aside in its own account and used to pay back bonds.

State Revenue
School districts in Texas are allocated funds based on the number of students they serve. The basic allotment of $6,160 per student. This allotment is funded by local property taxes, sometimes known as the district’s local share, plus state provided revenue, sometimes referred to as the state’s share. With a larger number of students comes increased expenditures for additional teachers and related staff to serve those students. 

As a school district is able to fund more of the calculated basic allotment through its property tax base, the less state funds the school district receives. Conversely, if a community raises less money locally through taxes, the district receives more state funds. A district (such as DSISD) with property wealth that generates more than $6,160 per student is required to send excess local tax revenue to the state. The state calls this “Local Revenue in Excess of Entitlement” but you will often hear it referred to as “Recapture” or “Robinhood.”

Bond funds can be used to pay for new buildings, additions and renovations to existing buildings, land acquisition, technology, buses, and equipment, among other items. By law, bond funds may not be used to fund daily operating expenses, such as salaries or utilities, which are paid for out of the district’s Maintenance & Operation (M&O) budget.

In the state of Texas, the sale of bonds is the primary funding mechanism for school districts to raise funds for capital projects. When a district determines that it has needs beyond the capacity of the maintenance and operations budget, the Board of Trustees may issue a bond. DSISD does not receive assistance from the State of Texas to repay debt or build facilities.

The biggest differences between and November 2022 package and the May 2023 package are that the May package does not include construction of High School #2 (Prop B in the 2022 Bond) or Student & Staff Devices and Interactive Teacher Panels (Prop C). The May package includes the design of High School #2 but not construction. For the technology devices that were included in the November package, the district plans to utilize leases and fund balance to purchase those items. 

Bond proceeds cannot be used to pay teacher salaries. By state law, school districts can only issue bonds for the construction, acquisition, and equipment of school buildings; the acquisition of property or the refinancing of property; the purchase of the necessary sites for school buildings; the purchase of new school buses; the retrofitting of school buses with emergency, safety, or security equipment; and the purchase or retrofitting of vehicles to be used for emergency, safety, or security purposes. School districts in Texas are not able to use bond proceeds for items on the operational side of the budget such as salaries, utilities, or classroom supplies.

Yes, a detailed breakdown of estimated costs for proposed projects in the Dripping Springs ISD May 2023 Bond can be found here.

Bond funds are NOT subject to recapture, therefore, 100% of bond dollars stay in Dripping Springs ISD.

There is no tax impact for homeowners over the age of 65 who have a general homestead exemption and whose taxes are frozen. The tax ceiling applies to school taxes only. 

School district taxes on resident homesteads may be frozen in the year the taxpayer turns 65 years of age and will not increase because of a school district bond election, unless improvements have been made to the property. The tax amount is frozen, not the rate, so regardless of property valuations, school taxes will remain the same. 

In order to qualify for this exemption, you must meet the same qualifications as the general homestead exemption along with proof that you are 65 years old or older. You may apply for this exemption by providing the Hays or Travis County Appraisal District proof of your age either with a birth certificate or driver's license.

Dripping Springs ISD voters rejected the November 2022 bond package.

Voters approved a $132 million bond referendum on May 5, 2018. The bond package included funding for expansion of Dripping Springs HS to capacity for 2,500 students, construction of Cypress Springs Elementary, construction of a new Walnut Springs Elementary (WSE) adjacent to Dripping Springs MS, conversion of the current WSE campus into space for the district administration and daycare facility, miscellaneous projects at Dripping Springs MS, Dripping Springs Elementary and Rooster Springs Elementary, turf and track improvements at Dripping Springs HS and Dripping Springs MS, improvements and expansion of the District Transportation facility, district-wide technology infrastructure improvements and maintenance upgrades, and land acquisition. All projects are complete except for conversion of the current WSE campus into space for the district administration and daycare facility which is currently under construction.

If not approved by voters, Dripping Springs ISD will continue to serve the students and families who live in and are moving into the district. This would most likely be achieved through a combination of rezoning attendance boundaries, examining class size models and utilizing portables on campuses that are over capacity.

DSISD cannot confirm when or if the Board of Trustees would call for another bond election if this bond does not pass. Under current state law, school districts in Texas can hold bond elections twice during a calendar year - in May and November. Elections must be called by the Board of Trustees at least 78 days before election day. 

If approved, taxpayers in Dripping Springs ISD are not expected to see a tax rate increase as a result of this bond. The I&S tax rate of $0.35 per $100 in property value is expected to be sufficient to pay debt service on any bonds issued pursuant to the proposition. Irrespective of the passage of the proposition, taxpayers may see an increase in their tax bill as a function of their increased property value. 

Taxpayers are not expected to see an increase to the tax rate from the bonds. A few combined factors have put Dripping Springs ISD in this position, including continued growth and development in the District, and the practice of paying down debt early.

In 2019, the Texas Legislature passed a law requiring the ballots for all school bond elections to include a sentence that states “THIS IS A PROPERTY TAX INCREASE.” The sentence is required even if no actual tax rate increase is expected to occur.

Dripping Springs ISD taxpayers are not expected to see an increase to the tax rate if voters approve the proposition on the May 6, 2023 ballot. No increase in the total tax rate is expected to pay off the bonds. Irrespective of the passage of the proposition, an increase in property value may increase a homeowner’s tax bill.

Dripping Springs ISD total property tax rate is $1.2929 per $100 of assessed value.

The Board of Trustees have authority to decide how any unspent funds are used. Historically, funds available from project savings have been repurposed for other bond order authorized spending. Project savings have occurred in past authorizations due primarily to favorable pricing on construction projects and efficient project management. 

The Bond Advisory Committee (BAC) is a nine-member committee appointed by the DSISD Board of Trustees that monitors the progress of bond projects. Responsibilities of the committee are: reviewing bond expenditures and timelines, reviewing possible scope changes and making recommendations to the board, and making semi-annual public reports to the board. 

The Board of Trustees reviews applications for committee membership from residents of Dripping Springs ISD and selects members based in part on geographic representation and professional expertise.

The District routinely monitors its outstanding debt to take advantage of opportunities to refinance or refund for savings when it would be beneficial. More information regarding the district’s debt management practices is available here.

DISTRICT GROWTH PROJECTS

• Build Elementary School #6 (850 Student Capacity)
• Expand Sycamore Springs MS to 1,200 Student Capacity
• Build New Facility for Special Education 18+ Program
• Design Elementary School #7, Middle School #3, and High School #2
• Land for Future Facilities 
• Classroom Portables

CAPITAL IMPROVEMENT & RENOVATION PROJECTS

• Security Updates for All Campuses
• Americans with Disability Act (ADA) Updates
• Capital Improvements & Renovations at Dripping Springs Elementary, Dripping Springs Middle School, and Dripping Springs High School
• Reconfigure Center for Learning & Innovation and Maker Space at Rooster Springs Elementary and Dripping Springs Elementary
• Update Sound and Lighting Systems at Several Campuses
• Replace Pressure Reducing Valves at Several Campuses
• 13 Replacement Buses for Aging Fleet
• Child Nutrition Services (Kitchen) Equipment Replacements
• Technology Infrastructure (Network, Servers, Firewall, AV)

Creating secure entry vestibules and safe office designs. Adding and updating access control and other security features. Adding features on exterior doors and updating and standardizing locks. Adding protective features for building exterior and playgrounds within all District campuses.

Dripping Springs ISD currently owns 64 acres in the Headwaters neighborhood, which can accommodate an elementary and middle school.

Having the design done first will allow the district to share visuals of the campus and details about campus programming (such as what CTE programs will be offered at High School #2) with the community. The design process for a comprehensive high school can take about two years to complete and will involve significant community input. Additionally, separating design and construction gives the district more flexibility with future bond timing. 

While this bond proposition would not approve construction of a new high school, Dripping Springs ISD owns more than 120 acres on Darden Hill Road that could accommodate a second comprehensive high school.  

The flooring in the competition gym at Dripping Springs High School was originally installed in 2010. The competition gym wood floor was refinished and repainted during the summer of 2021 as part of the normal maintenance cycle and had been refinished several times previously. Wood flooring can sustain a limited number of refinishes and this floor is nearing end of life. 

As required by federal law, the 18+ program is for certain qualifying populations within the special education program. It currently has eight students and is projected to almost double in size next year. These are 18-22-year-old students who need to continue with educational programming for independence, job coaching and life skills. The program is currently housed in a portable building by the baseball field. If the proposition is approved by voters, the district plans to construct a new facility or a remodel of an already-built facility for the program that is centrally located in the community, because the students are usually receiving job coaching in the workplace.

Some work will occur during the school year. When selecting a contractor, the district includes experience in completing projects on an active campus as part of the selection process. Recent examples of similar projects on active campuses in DSISD include the DSHS expansion and the new Walnut Springs Elementary (on the DSMS site). These projects were completed successfully with very minimal impact/disruption to campus operations.

The Long-Range Facility Planning Committee considered the following factors in determining to recommend expansion of the middle school to the Board of Trustees:  (1) 1,200 students was the optimal capacity for middle schools; (2) leaving SSMS at 850 would create challenges in maintaining equity among middle school campuses (program offerings, etc.), and in maintaining elementary to middle school feeder patterns and (3) expansion of SSMS delays the need for middle school #3 for several years, which is beneficial for managing enrollment growth and future bond planning.

To see if you are registered to vote, click here.

Anyone who is a registered voter and lives within the Dripping Springs ISD boundaries is eligible to vote in this election.

Voter registration applications are available in most government buildings. Online applications can be found on the Hays County Voter Registration Website and the Travis County Voter Registration Website. To be eligible to vote in an upcoming election, your application must be received at least 30 days prior to the posted election date.  

Early voting begins Monday, April 24, 2023 and ends Tuesday, May 2, 2023.   

Election day is Saturday, May 6, 2023.

Hays County Voting Locations

Travis County Voting Locations

Please email DSISDCommunications@dsisdtx.us if you have any additional questions. 

DSISD has entered into a Joint Election Agreement and Contract for Election Services with each of Hays and Travis Counties. Pursuant to these contracts (and the Election Code), the District has designated the Elections Administrator of each County as the District’s voting clerk to administer the District’s May 2023 elections. In this role, each County Elections Administrator is responsible for the conduct of the election, including determining early voting and election day voting polling place locations, furnishing materials and equipment for the election, appointing elections staff, and providing training. 

Both Hays and Travis Counties use countywide polling place programs, meaning residents of that County can vote at any early voting or election day polling place location throughout the County. Each County’s polling place locations are available on the County’s election website, links to which are provided elsewhere in this FAQ.