Debt Obligations

As part of our continuing commitment to transparency and accountability to our community, and in accordance with the Texas Comptroller's Transparency Star Program criteria for local governments, Huffman ISD maintains summary information about its outstanding debt.

Huffman Independent School District Dept Transparency:

Texas school districts' debt takes the form of bonds. School districts use bonds to pay for capital expenses such as facilities due to increased student enrollment, repairs/renovation of aging buildings, and/or evolving needs due to changing expectations. A bond is a debt investment in which an investor loans money to a school district, with interest, for a defined period of time. The repayment of the bonds are usually structured to match the life of the asset financed. 

School districts are required by law to ask their local voters for approval to sell bonds. A school board calls a bond election, and voters decide if the district will issue bonds (debt) for the identified needs. If the voters approve the bond election, the school district then may raise the I&S tax rate to repay the debt to the investors. The Debt Service/Interest & Sinking tax rate is set each year to generate tax revenue sufficient to repay debt payments for the year.

The second part of a district's tax rate, the General Operating/Maintenance & Operations tax rate, is used to pay for the day-to-day operations of the District. As part of our continuing commitment to transparency and accountability to our community, and in accordance with the Texas Comptroller's Transparency Star Program criteria for local governments, Huffman ISD maintains summary information about its outstanding debt.