Tioga voters approved a lease-purchase deal Saturday for a new high school campus.

Tioga voters approved a lease-purchase deal Saturday for a new high school campus.

With 195 votes for and 144 against those in the Tioga Independent School District signed off on allowing the district to enter into an agreement with the Tioga ISD Public Facility Corporation, a nonprofit that is separate from the school district.

The nonprofit was created by the school district in December to assist with financing the new high school. The corporation will finance the purchase of the land and the construction projects through the issuance of lease revenue bonds, giving the school district the ability to establish a lease-purchase agreement.

The corporation will be responsible for accepting annual payments from the district and a board member would make payments to the bondholders on behalf of the corporation. During the lease-purchase agreement, the corporation would also hold the title to the land and facility. At the end of the payment period, the title to the land and facility would be transferred back to the district.

"The risk solely relies on the person who bought the bonds, because they now own the asset," Board President Rick Staples said in an interview earlier this year.

According to the Texas Legislature, school districts are able to use lease-purchase agreements to gain some flexibility in funding facilities. All lease-purchase agreements and the funding sources to pay for the facilities are reviewed for approval by the Texas Attorney General.

Other schools districts such as the Houston Independent School District have formed a public facilities corporation within the last two years. Any time a district is going to do a lease-purchase agreement, TEA information specialist Lauren Callahan said the district would form a public facilities corporation to do so.