The Bond in Bond Program is a form of long-term borrowing that allows the school district to fund large capital projects immediately, which are then paid back over time with interest by the district.
Capital projects may include projects such as the construction of new school buildings, renovation of existing facilities, or acquisition of land and equipment. Bond's allow school districts to address their long-term infrastructure needs and provide essential facilities for the education and well-being of their students and communities.
How does a Bond Work in the context of an ISD Bond Program?
Practically, these 'Bond Programs' involve issuing bonds, a financial instrument which is essentially loans obtained by the school district from investors or financial institutions. The bonds are sold to investors who receive periodic interest payments until the bonds mature, at which point the principal amount is repaid to the bondholders.
The funds generated from the sale of bonds are used to finance the approved projects outlined in the approved Bond Program. ISD Bond Programs are often subject to voter approval through ballot measures, as they usually require the district to levy taxes or allocate existing revenue streams to repay the borrowed funds over time.
