School district plans $80M bond sale without increasing tax rates

El Campo Independent School District (ISD) is gearing up for a significant bond sale, projected to raise approximately $80.9 million for district improvements without increasing the current tax rate. During a recent special board meeting on February 5, 2025, financial experts outlined a conservative growth estimate of 2% for the district, alongside an interest rate projection of 4.5%. This cautious approach aims to ensure fiscal responsibility while planning for future developments.

The bond sale, expected to occur in phases over the next few years, will allow the district to fund essential projects while maintaining the existing tax burden for homeowners. "If a person is paying property tax on a house at a hundred thousand dollars right now, we’re not going to change what that person's taxes would be based upon this," a financial representative confirmed, emphasizing the commitment to keep tax rates stable.

The board discussed the potential impact of interest rates on the bond sale, noting that if rates were to drop to around 4%, it could result in a slight decrease in tax rates over time. Historical data shows that the district has experienced an average growth rate of 6.2% over the past five years, suggesting that if this trend continues, there may be opportunities to lower tax rates in the future.

In addition to the bond sale, the board plans to proceed with a defeasance strategy to pay off older bonds, further enhancing the district's financial health. As the district prepares for the upcoming election in May, officials remain optimistic about the bond's approval and its potential benefits for the community.