Can you please explain to me why we have difficulty selling bonds on occasion?
Well, the answer is complicated yet simple. The I&S (Interest and Sinking) tax rate is the portion of the rate that is applied for the debt incurred by selling bonds and is capped by the State at 50 cents. PISD is currently at the cap of 50 cents; therefore, in order to access more bond money, we must be able to apply that 50-cent rate to NEW value (homes, commercial, retail, etc.). ISDs are allowed to use 5-year projections in order to pass the 50-cent test and PISD continues to evaluate all possibilities in an effort to pass the required 50-cent test to sell additional bonds for construction projects. All sales must ultimately be approved by the Office of the Attorney General.