I&S

Interest & Sinking

Funds from this portion of the tax rate can only be used 1) to pay off bonds sold for construction and capital improvements to facilities and 2) to buy furniture, equipment and/or to purchase land. I&S funds cannot be used for operational costs, such as salaries and benefits, nor can these funds be used to construct facilities. They can only be used to pay down outstanding debt. A school district can only take on new debt through a voter-approved bond election.

I&S funds cannot be used for operational costs, such as salaries and benefits, nor can these funds be used to construct facilities. They can only be used to pay down outstanding debt.

To relate this to the average community member, this is similar to the purchase of big-ticket items like a new home, house renovations, kitchen appliances, new mechanical systems or a new car.

Revenue generated from this portion of the tax rate is not subject to recapture and is directly linked to property value growth without a cap. Because of this, an increase in property values does equal an increase in total revenues for debt repayment.

Cannot Use Toward …

• Construct facilities

• Capital improvements to facilities

• Employee salaries

• Employee benefits

• Student educational resources

• Supplies and equipment

• Utilities

• Insurance

• Legal and audit services