Debt Obligations

Joshua ISD Financial Transparency

Debt Obligations

Debt Overview

Government entities such as school districts issue bonds to finance major capital expenditures. These include the construction and equipping of school buildings and other district facilities, building additions, renovations, improvements, etc. Bonds authorized by voters by a majority vote in a bond election are issued by the district based on financing needs for the projects. School districts use the issuance of bonds to finance facilities in the same manner a homeowner uses a mortgage to finance a home. The Debt Service/ Interest & Sinking (I&S) Fund is used to repay the principal and interest of bonded debt over time. The school district tax rate is made up of two parts, maintenance and operations (M&O) and debt service/interest & sinking (I&S). The revenue from the M&O portion of the tax rate is used to fund day-to-day district operations such as payroll expenses, utilities, and building maintenance. The I&S portion of the tax rate is set each year to generate tax revenue sufficient to meet the debt payments for the year. Joshua ISD is committed to providing taxpayers and community members with transparent and easy-to-understand sources of financial information. The material below is intended to provide useful information related to the district's debt obligations.