Bond Planning 

The Bond Planning Committee worked to put together a recommendation that allows voters to consider whether or not EMS ISD can sell bonds to:

• build schools to accommodate short-term enrollment growth
• purchase land for future instructional facilities to accommodate long-term enrollment growth and support expanding programs
• replace aging/inadequate systems 
• plan for contingencies

The Eagle Mountain-Saginaw community is experiencing rapid growth, especially when it comes to students who are enrolled in EMS ISD. EMS ISD increased by 1,088 students this fall for a 5.12% growth rate. The district has 35 actively building subdivisions and 19 future subdivisions in the planning stages. Groundwork is underway on more than 2,500 lots within 15 subdivisions

EMS ISD can expect to enroll more than 27,000 students by 2026-27 and more than 31,000 by 2031-32.

Bond Targets:

• Planning Target is for projects that can begin in 2024 through 2026 and ending by 2028
• Funding plan is for $275 million for next authorization
• Based on projected bond capacity
• Bond capacity is a function of the following factors
  • Projected Property Taxable Values – Projected increases based on new construction and revaluations of existing properties and impact of new homestead exemption
  • Projected Bond Interest Rates – Have dropped to near historic lows but are expected to increase by future issuances
  • Projected Interest and Sinking (I&S) Tax Rate – EMS ISD recently set the I&S tax rate at $0.50 to maximize bond issuances and lock in savings to taxpayers and that rate is assumed in the bond capacity projection

Financial Factors for Consideration:

• Construction Prices and Predicted Escalation
• Bond Interest Rates
• Taxable Assessed Values
• Cash Flow
• Enrollment Needs
• 50 Cent Test