A bond is a type of low interest loan school districts use to pay for new school construction. It’s very similar to a home loan or mortgage, but for school buildings. Just like homeowners, the District borrows money and makes monthly payments typically over a 20- year period or until the loan is paid off. Bonding requires the approval of taxpayers through an election.
This is the least costly option for taxpayers to build school buildings. Tax payments for a bond typically go down each year as bond debt is paid off. Again, bonding is the best option for taxpayers because it offers the lowest interest rates. We could use traditional funding, but it has higher interest rates. This means a tax increase would be required to pay for the higher rates. Taxes would then go up but not come back down like they do when bond debt is paid off.
To learn more about the proposed bond visit our website at jordanbond.org.