NO TAX RATE IMPACT
Based on growth of Taxable Assessed Values, CFBISD can issue the $716.4 million worth of bonds without a change to the I&S tax rate.
The Citizen’s Bond Planning Committee intentionally brought forward a recommendation for a bond package that could be issued at the current tax rate.
The Board of Trustees voted to approve the amount recommended by the citizen’s committee and stated in the February 2, 2023 board meeting that they do not plan to increase the tax rate.
The district’s Financial Advisor and Chief Financial Officer agree that the bonds can be issued without changing the tax rate based on current assumptions.
The total tax rate may drop again in 2023, if the state continues to compress the Maintenance & Operations rate.
REQUIRED BALLOT LANGUAGE CAN BE MISLEADING.
By law, the ballot must include this statement: “THIS IS A PROPERTY TAX INCREASE” even though experts agree that the $716.4 million can be funded at the current 20 cent I&S tax rate.
CFBISD HAS LOWEST TOTAL TAX RATE SINCE 1992
SCHOOL TAXES INCLUDE TWO TAX RATES
Public school taxes involve two figures, which divide the school district budget into two “buckets.”
The first bucket is the Maintenance and Operations budget (M&O), which funds daily costs and recurring or consumable expenditures such as teacher and staff salaries, supplies, food and utilities. Approximately 82 percent of the district’s M&O budget goes to teacher and staff salaries.
The second bucket is the Interest and Sinking Fund (I&S), also known as Debt Service, and that is used to repay debt for capital improvements approved by voters through bond elections. 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 infrastructure. By law, I&S funds cannot be used to pay M&O expenses, which means that voter-approved bonds cannot be used to increase teacher salaries or pay rising costs for utilities and services.
TAX CEILING FOR RESIDENTS OVER 65
CFBISD property taxes for citizens age 65 or older will not be affected by this – or any – school bond election as long as a homestead and over 65 exemption application have been filed with the local appraisal district.
The school district tax rate will not change for anyone as a result of this bond election.
Citizens 65 and older are eligible for an “over 65” homestead exemption.
According to 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 improvements are made to the home.
Why is my tax bill higher if the tax rate has gone down?
Even though the CFBISD tax rate is the lowest it has been in 31 years, your taxes are or may be higher due to the overall property value growth, not the tax rate. Your home value is set by the Dallas Central Appraisal District, and when your home value increases, so does your bill.