Bond Management

  • Dripping Springs ISD is committed to responsible fiscal management in all areas, including management of bond programs. As a fast-growth district, DSISD has funded construction of new facilities to serve students through bond programs that are presented to the voters. Since 2005, Dripping Springs ISD taxpayers have approved four bonds with the latest being the $132 million bond passed in 2018. In May of 2014, voters approved a $92,410,000 bond referendum, while a $96,170,000 million bond was approved in 2007 and a $28,520,000 bond was voted on in 2005.

    A school district’s tax rate consists of two parts: Maintenance and Operations (M&O) and Debt Service/Interest & Sinking fund (I&S). Maintenance and Operations taxes fund the General Operating Fund, which pays for salaries, supplies, utilities, insurance, equipment and the other costs of day-today operations. The Debt Service tax pays off school bonds, somewhat like paying off the mortgage on a house. Revenue from the Debt Service tax rate can be used only to retire bonds sold for specific purposes: construction, renovations, buses, land, technology, and the cost of issuing bonds. 

    The district’s current bond rating by S&P Global Ratings (“S&P”) is “AA” without regard to credit enhancement and “AAA” when combined with the Texas Permanent School Fund Guarantee Program. S&P’s report dated August 12, 2020 highlights the district’s access to the broad and diverse Austin area, very strong income and wealth levels, and very strong available fund balance.