NBISD Bond 2021

Tax and Financial Information

Year

Projected M&O
Tax Rate

Projected
I&S Tax Rate

Total
Tax Rate

Estimated Change
in Total Tax Rate

Bond Funds Available in February of Corresponding Year

2021-22

$0.872

$0.3258

$1.1978*

 

$113.1 M

2022-23

$0.8546

$0.3408

$1.1954

-$0.0024

2023-24

$0.8402

$0.3408

$1.181

-$0.0144

$124.7M

2024-25

$0.8261

$0.3408

$1.1669

-$0.0141

$75M

2025-26

To be determined

$0.3408

 

$0.0

$32.2M

2026-27

To be determined

$0.3408

 

>$0.00


1 cent increase equals to $10 more in I&S taxes per year for every $100,000 of appraised value of your home.

* Adopted by the Board on August. 9, 2021

Voters over 65 are eligible for an Over 65 Homestead exemption

For residents 65-years and older, their school district tax bill will not increase, even if their property values increase (excluding property improvements) as long as an approved Homestead and Over-65 Exemption application is on file with the Comal or Guadalupe Appraisal District, and the property has been owned as of Jan. 1 of the tax year. The over-65 population pay what is termed frozen taxes. Meaning, the amount of school taxes paid when they turn 65 will be the same, frozen amount every year thereafter.

 

Understanding Your Tax Payment vs. Tax Rate

  • Up to a 1.5-cent tax increase per $100 valuation of residence on Interest & Sinking (I&S) tax rate is projected with the passage of this bond
  • Increase due to the bond does not impact Maintenance & Operation (M&O) tax rate
  • Projections show district tax rate decreasing each year due to tax compressing of the M&O tax rate

  

Impact of Change in Total Tax Rate from 2021-22 to 2022-23

 

Please note that the average homeowner's property value has increases each year, but the District's tax rate is projected to decrease. As your home value increases so does your taxable value causing your taxes to increase regardless if the District's tax rate. The District Tax Rate is a multiplier; therefore, if the taxable value of your resident goes up so will your taxes.

 

EXAMPLE:

The Jones Family residence is currently valued at $289,243 (an increase of $21,500 over last year). They have a homestead exemption lowering their taxable value to $264,243. The NBISD Tax rate (M&O + I&S) was lowered this year to $1.1978 . Based on these circumstances, their taxes will amount to $3,165.10. Since the value of their property increase from last year, they will pay $196 more this year even though the NBISD tax rate was lowered.

 

2021 Taxable Values & Taxes:

Average Home Market Value = $289,243

Average Home Taxable Value = $264,243

Average Homeowner Taxes @ $1.1978 = $3,165.10

This represents an increase for the average homeowner of a little over $196 because the "Average Home" increased in value by $21,500 in 2021.

 

Understanding the School Tax Rate

General Operating (M&O) Debt Service (I&S) Total Tax Rate
2018 $1.04 $0.3258 $1.36580
2019 $0.97 $0.3358 $1.30580
2020 $0.8975 $0.3258 $1.2233
2021 $0.872 $0.3258 $1.1978*

 

*Adopted August 9, 2021


The school district tax rate involves two figures, which divides the budget into two figures or “buckets.” The first is the Maintenance & Operations (M&O) budget, also known as the General Fund. The M&O fund is used to pay for the day-to-day operations of a district and includes items such as salaries, utilities, food, gas, supplies, etc. 

The second is the Interest & Sinking (I&S) budget or Debt Service. This fund is used to repay debt for capital improvements approved by voters through bond elections. As a comparison, this fund is similar to a mortgage or home improvement loan. I&S funds may only be used to repay debt. State law caps the I&S tax rate at $0.50 in order to issue bonds. So, if this bond package is approved by voters, the District’s tax rate will not increase even with a 1 1/2 cent increase on the I&S side. The District's tax rate next year is actually projected to remain at the same rate with a slight decrease of $0.0024 (nearly a 1/4 of a cent).

Proceeds from a bond issue can be used for the construction and renovation of facilities, the acquisition of land and the purchase of capital items, such as equipment, technology and transportation. Please keep in mind that we match up our asset life to the term of the bonds so for the shorter-term assets such as technology, buses and vehicles are repaid in 5 years.

By law, I&S funds cannot be used for the M&O budget, which means voter-approved bonds cannot be used to increase salaries or to pay rising costs of utilities or services. 

New Braunfels ISD’s current M&O tax rate is $0.872 and the I&S rate is $0.3258, for a total district tax rate of $1.1978 per $100 of property value. As the chart indicates, the District has been able to lower the total tax rate the last couple of years including this year by $0.0255 (2 1/2 cents).

General Operating Fund

(Maintenance & Operations)

Day-to-day operations and expenses

M and O Bucket


For School Districts, this includes: Staff Salaries, Utilities, Supplies, Repairs, Fuel

For the Average Citizen, this is similar to: Groceries, Utilities, Minor Home Repairs, Routine Services, Car Fuel

Debt Services Fund

(Interest & Sinking)

Principal and interest payments on debt issued

I and S bucket

 

For School Districts, this includes: New Construction, Renovations, HVAC Systems, Roofing, Technology

For the Average Citizen, this is similar to: Mortgage, Home Renovations, Major Appliances, Land, Car

This bond election will not increase the District Tax Rate since the M&O rate is projected to be lowered for the next 3 years.

Fiscal Management Highlights

Bond interest rates are at an all-time low range in the 41-year history of Bond Buyer index.

NBISD has historically taken advantage of bond refinancing opportunities and has completed 12 refundings since 2005 resulting in more than $23.5 million in savings.

The $348 million will be sold in increments and not all at once to keep the tax rate as low as possible.

State law allows for bonds to be financed up to 40 years. NBISD plans to finances these bonds for 28 years or less. With past refunding opportunities and tax base growth, NBISD has been able to pay off bonds in less than 25 years.

NBISD maintains its high credit rating from two agencies, AA+ from S&P and AA from Moody's. NBISD also expects to receive the Permanent School Fund Guarantee from the Texas Education Agency which will provide an enhanced rating of AAA on the proposed sale of the bonds. 

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