No Tax Rate Increase Anticipated with Bond 2021

  • 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 all or a portion of the 2023 bond propositions. This analysis outlines the district’s projected bonding capacity for the May 6, 2023 bond election: 

    • Assumes Net Frozen TAV for fiscal year 2023 (“FY2023”) is $14,396,768,852
    • Assumes that I&S levy from frozen values is $5,700,000 annually and remains constant thereafter (this amount is not included in the TAV above).
    • Assumes TAV remains constant.
    • Assumes a tax collection rate of 99%.
    • Assumes authorized bonds are sold in August 2023 and August 2024.
    • Assumes an interest rate equal to approximately 100 bps (1%) over current market rate on bonds issued in August 2023 and bonds sold in August 2024.
    • Assumes bonds with a maximum amortization of 25 years.

    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 2023 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.”

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