ESTIMATED TAX IMPACT

If voters approve the proposed bond, the estimated maximum tax impact of this bond is anticipated to be 9.8 cents (under the Assumptions listed below). Given our current combined tax rate for 2015-16, this would represent an increase to a total tax rate of $1.248 per $100 in assessed value. For the average market home value in the district of $118,779 (including the current $25,000 homestead exemption), this would represent an increase of approximately $7.70 per month in local property taxes paid to Era ISD.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSUMPTIONS
The projected cost of the new bond program is based upon the assumptions detailed below: 

• Assumes the Bonds are sold in July 2016 (Bond Election May 2016).

• Assumes the first interest payment date on the Bonds will be February 15, 2017.

• Assumes the District's Year 2015/16 Interest & Sinking Fund tax rate is 11.0 cents. Any tax rate increase is based off of this amount and will take place in fiscal year 2016/17. 

• Assumes a tax collection rate of 97.0%.

• Assumes the District's 2015/16 gross taxable assessed valuation is $188,575,620 and will remain constant. 

• Assumes the District's 2015/16 net taxable assessed valuation is $173,727,682 and will remain constant. 

• Assumes the District receives $12,975 in 2015/16 for the I&S portion of its frozen levy revenues, and that amount will grow as a percentage of debt service in future years.

• Assumes the Bonds are amortized over a 20-year period with a final maturity of August 15, 2036.

• Assumes current market bank qualified interest rates plus 75 basis points (0.75%). (Subject to change.)

• Assumes the Bonds are sold with a 10-year call option. 

• Assumes the District receives the Permanent School Fund (PSF) guarantee for the Bonds. PSF approval has not been confirmed by TEA.

• The District's 2015/16 refined average daily attendance of 448 and 2014 CPTD of $205,012,074 have been projected to remain constant. Assumes the Bonds will not receive Existing Debt Allotment or Instructional Facilities Allotment assistance. 

• The District must be able to demonstrate at the time of issuance of new bonds that it can levy an Interest & Sinking Fund tax rate of no more that $0.50 for all Bonds issued after September 1, 1992, based upon its current taxable assessed valuation. Note the Subchapter B portion of the District's Tier I funds may be used to comply with this test. 

 

IMPACT ON SENIOR CITIZENS' PROPERTY TAXES

Era ISD property taxes for citizens aged 65 or older or for disabled citizens would not be affected by the bond election as long as a homestead and Over 65 exemption application has been filed with the local appraisal district.

 

Under state law, the dollar amount of school taxes imposed on the residence homestead of a person 65 years of age or older cannot be increased above the amount paid in the first year after the person turned 65 – regardless of changes in tax rate or property value – unless there are new improvements to the homestead that increase the value of the home.

 

HISTORICAL TAX RATES FOR ERA ISD (COMBINED M&0 AND I&S)