No Tax Rate Increase Anticipated with Bond 2022
Preliminary Bond Election Capacity Analysis/Summary of Assumptions
The following information supports the Hays CISD statement that the district does not anticipate a tax rate increase should voters approve the 2022 bond proposition. This analysis outlines the district’s projected bonding capacity for the May 7, 2022 bond election:
- Assumes Net Frozen TAV for fiscal year 2022 (“FY2022”) is $10,576,425,535
- Assumes that the I&S levy from frozen values is $4,665,000 and remains constant thereafter (this amount is not included in the TAV above)
- Assumes TAV grows at $600,000,000 per year in 2022/23 and 2023/24 and remains constant thereafter
- Assumes a tax collection rate of 99%.
- Assumes an interest rate equal to approximately 75 bps (3/4 of 1%) over current market rate on bonds issued in August 2022. If bonds were issued today, we would expect the interest rate would be below 3.25%.
- Assumes bonds with a maximum amortization of 25 years. Assumes authorized bonds are sold in August 2022 and August 2023.
If the assumptions are met, the district does not anticipate the need for a tax rate increase to pay debt service on bonds issued for bond projects approved by voters as part of the 2022 bond. However, whenever the district issues bonds, additional property taxes must be levied and collected to pay debt service on the bonds, and Section 45.003, Texas Education Code, requires that the following statement appear on the ballot for all school district bond propositions: “THIS IS A PROPERTY TAX INCREASE.”
Click on the image above to download the district's recent historical tax rate chart in English and Spanish.