review of district’s debt position and capacity monday...

Review of District’s Debt Position and Capacity

Monday, September 24, 2012

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1

Texas School District Bond Elections – Historical Approval RatesTexas School District Bond Elections – Historical Approval Rates

Historical Texas School District Bond Election Results – Years 2007 Through May 2012

No. Of Dollar Amount Dollar Amount Approved Dollar Amount Failed Year Elections Of Bond Elections Dollar Amount Percentage Dollar Amount Percentage

2007 165 $12,757,680,479 $11,148,410,479 87.4% $1,609,270,000 12.6% 2008 131 $9,960,307,101 $8,686,683,101 87.2% $1,273,624,000 12.8% 2009 79 $2,447,569,995 $1,601,039,995 65.4% $846,530,000 34.6% 2010 110 $4,584,668,000 $3,231,587,000 70.5% $1,353,081,000 29.5% 2011 94 $3,943,308,215 $3,302,979,215 83.8% $640,329,000 16.2%

May 2012 45 $842,232,339 $635,747,339 75.5% $206,485,000 24.5%

Totals 624 $34,535,766,129 $28,606,447,129 82.8% $5,929,319,000 17.2%

Source: The Municipal Advisory Council of Texas, The Bond Review Board and other various sources.

Historical Texas School District Bond Election Results

87.4% 87.2%

65.4%70.5%

83.8%

75.5%

82.8%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

App

rova

l Rat

e

Year 2007 Year 2008 Year 2009 Year 2010 Year 2011 Year 2012 Average

2

Approximately 75.5% of the proposed $842.2 million of Texas school district bonds were approved by voters on May 12, 2012 and 77.2% of all propositions were approved by voters.

Texas School District Bond Election Results –May 2012 – By Dollar Amount of Election

Texas School District Bond Election Results –May 2012 – By Dollar Amount of Election

Texas School District Bond Election Results –May 2012 – By Number of Propositions

Texas School District Bond Election Results –May 2012 – By Number of Propositions

Approved Failed

$635,747,33975.50%

$206,485,00024.50%

Summary of May 12, 2012 Bond Election Results

Approved Failed

44 Propositions77.19%

13 Propositions22.81%

3

Texas School District Bond Elections Over $100 Million

Source: The Municipal Advisory Council of Texas.

Texas School District Bond Elections Over $100 Million Since Year 2007

No. Issuer Election Amount Election Date Bonds Failed

1 Houston ISD $ 1,890,000,000 November 6, 2012 TBD 2 Dallas ISD 1,350,000,000 May 10, 2008 $ - 3 San Antonio ISD 807,000,000 November 6, 2007 - 4 Katy ISD 805,000,000 November 6, 2007 - 5 North East ISD 776,670,000 May 10, 2008 79,000,000 6 Socorro ISD 646,900,000 May 10, 2008 - 7 Pasadena ISD 597,150,000 November 6, 2007 - 8 Lamar CISD 593,600,000 November 6, 2007 - 9 Judson ISD 559,000,000 November 6, 2007 - 10 Mansfield ISD 535,142,000 May 8, 2010 - 11 Lubbock ISD 527,000,000 May 10, 2008 - 12 Arlington ISD 515,000,000 November 2, 2010 - 13 McKinney ISD 490,000,000 May 10, 2008 - 14 Richardson ISD 459,795,000 November 2, 2010 - 15 Brazosport ISD 428,000,000 November 6, 2007 - 16 Ysleta ISD 400,000,000 May 12, 2007 400,000,000 17 Deer Park ISD 399,410,000 November 8, 2011 - 18 Eanes ISD 397,000,000 November 6, 2007 397,000,000 19 College Station ISD 394,000,000 May 10, 2008 - 20 Carroll ISD 388,600,000 November 6, 2007 - 21 Georgetown ISD 343,717,819 May 10, 2008 - 22 Hurst-Euless-Bedford ISD 297,400,000 May 14, 2011 - 23 Corpus Christi ISD 293,940,000 November 4, 2008 - 24 Grapevine-Colleyville ISD 282,000,000 November 6, 2007 - 25 Nederland ISD 280,000,000 May 12, 2007 - 26 Allen ISD 270,100,000 November 8, 2011 - 27 Channelview ISD 266,875,000 May 10, 2008 - 28 Georgetown ISD 260,000,000 May 10, 2008 - 29 Northwest ISD 255,000,000 November 6, 2012 TBD 30 Hurst-Euless-Bedford ISD 250,980,000 November 6, 2007 - 31 Corpus Christi ISD 249,159,215 November 8, 2011 - 32 Grapevine-Colleyville ISD 244,920,000 May 10, 2008 - 33 Nederland ISD 230,000,000 May 12, 2007 - 34 Allen ISD 222,000,000 May 12, 2007 - 35 Channelview ISD 219,000,000 November 4, 2008 - 36 Pharr-San Juan-Alamo ISD 205,850,000 May 10, 2008 -

Texas School District Bond Elections Over $100 Million Since Year 2007 (Continued)

No. Issuer Election Amount Election Date Bonds Failed

37 Judson ISD $ 198,800,000 November 2, 2010 $ 198,800,000 38 Mansfield ISD 198,530,000 November 8, 2011 - 39 Rockwall ISD 198,150,000 May 12, 2007 - 40 Tomball ISD 198,000,000 May 12, 2007 - 41 Lubbock ISD 198,000,000 November 2, 2010 - 42 Arlington ISD 197,500,000 November 3, 2009 - 43 Corpus Christi ISD 192,000,000 November 4, 2008 - 44 McKinney ISD 191,000,000 May 14, 2011 - 45 Clear Creek ISD 183,125,000 May 12, 2007 - 46 Mesquite ISD 180,000,000 May 12, 2007 - 47 Waco ISD 172,500,000 May 10, 2008 - 48 Richardson ISD 170,000,000 May 14, 2011 - 49 Keller ISD 167,900,000 November 4, 2008 25,600,000 50 Brazosport ISD 166,000,000 November 3, 2009 166,000,000 51 Midland ISD 163,100,000 November 6, 2012 TBD 52 Ysleta ISD 160,000,000 May 8, 2010 160,000,000 53 Lake Travis ISD 158,455,000 November 8, 2011 - 54 Eanes ISD 149,500,000 November 2, 2010 149,500,000 55 San Angelo ISD 149,000,000 November 4, 2008 32,000,000 56 College Station ISD 144,200,000 May 9, 2009 - 57 Angleton ISD 139,900,000 November 6, 2007 - 58 Carroll ISD 138,000,000 May 9, 2009 - 59 Georgetown ISD 137,300,000 November 2, 2010 - 60 Hurst-Euless-Bedford ISD 136,495,000 May 14, 2011 - 61 San Angelo ISD 130,000,000 May 12, 2007 130,000,000 62 Ector County ISD 129,750,000 November 6, 2012 TBD 63 Corpus Christi ISD 125,000,000 November 2, 2010 - 64 Tyler ISD 124,877,000 November 4, 2008 - 65 Grapevine-Colleyville ISD 124,500,000 May 14, 2011 - 66 Allen ISD 119,400,000 May 9, 2009 - 67 Channelview ISD 113,145,000 November 3, 2009 - 68 Manor ISD 111,530,000 May 12, 2007 - 69 Pharr-San Juan-Alamo ISD 108,000,000 May 8, 2010 - 70 Dickinson ISD 107,500,000 November 6, 2007 - 71 Pharr-San Juan-Alamo ISD 105,800,000 May 10, 2008 - 72 Midlothian ISD 103,000,000 November 6, 2007 100,500,000

5

Listing of Texas School District’s with an I&S Tax Rate of 40.0 Cents or More – Year 2011/12

Royal ISD (54.50 Cents) Del Valle ISD (49.00 Cents) Freer ISD (43.17 Cents) Needville ISD (53.96 Cents) Denton ISD (49.00 Cents) Canton ISD (43.10 Cents) Spring ISD (53.00 Cents) Crandall ISD (48.36 Cents) Huffman ISD (43.00 Cents) Bishop Consolidated ISD (51.66 Cents) Robstown ISD (48.00 Cents) Rockwall ISD (43.00 Cents) Joaquin ISD (50.70 Cents) Floresville ISD (47.58 Cents) North Forest ISD (42.93 Cents) Skidmore-Tynan ISD (50.51 Cents) Bloomington ISD (47.50 Cents) Commerce ISD (42.65 Cents) Allen ISD (50.00 Cents) Lovejoy ISD (47.50 Cents) Channelview ISD (42.55 Cents) Anna ISD (50.00 Cents) Manor ISD (47.50 Cents) Grand Prairie ISD (42.50 Cents) Aubrey ISD (50.00 Cents) Longview ISD (47.30 Cents) Irving ISD (42.50 Cents) Blue Ridge ISD (50.00 Cents) Banquete ISD (47.22 Cents) Kingsville ISD (42.38 Cents) Burleson ISD (50.00 Cents) Newcastle ISD (47.00 Cents) Hays Consolidated ISD (42.13 Cents) Caddo Mills ISD (50.00 Cents) Wylie ISD (47.00 Cents) Springtown ISD (42.03 Cents) Celina ISD (50.00 Cents) Overton ISD (46.43 Cents) Argyle ISD (42.00 Cents) Dickinson ISD (50.00 Cents) Bland ISD (46.00 Cents) Frisco ISD (42.00 Cents) Eagle Mountain-Saginaw ISD (50.00 Cents) Forney ISD (46.00 Cents) Hidalgo ISD (41.64 Cents) Ennis ISD (50.00 Cents) Frenship ISD (46.00 Cents) Santa Getrudis ISD (41.57 Cents) Hitchcock ISD (50.00 Cents) Jacksboro ISD (46.00 Cents) Angleton ISD (41.52 Cents) Hutto ISD (50.00 Cents) Hubbard ISD (45.99 Cents) South San Antonio ISD (41.49 Cents) Keller ISD (50.00 Cents) Leander ISD (45.98 Cents) Giddings ISD (41.00 Cents) Krum ISD (50.00 Cents) Lubbock-Cooper ISD (45.90 Cents) Gunter ISD (41.00 Cents) Lake Dallas ISD (50.00 Cents) Mansfield ISD (45.60 Cents) Taylor ISD (41.00 Cents) Lake Worth ISD (50.00 Cents) Community ISD (45.50 Cents) Winona ISD (40.67 Cents) Little Elm ISD (50.00 Cents) Santa Fe ISD (45.50 Cents) San Diego ISD (40.48 Cents) McKinney ISD (50.00 Cents) Dripping Springs ISD (45.00 Cents) Cedar Hill ISD (40.00 Cents) Melissa ISD (50.00 Cents) Bastrop ISD (44.10 Cents) DeSoto ISD (40.00 Cents) Midlothian ISD (50.00 Cents) Panhandle ISD (44.00 Cents) Katy ISD (40.00 Cents) New Caney ISD (50.00 Cents) Pflugerville ISD (44.00 Cents) Lefors ISD (40.00 Cents) Prosper ISD (50.00 Cents) Robert Lee ISD (44.00 Cents) Sherman ISD (40.00 Cents) Spring Hill ISD (50.00 Cents) Royse City ISD (44.00 Cents) Tioga ISD (40.00 Cents) White Settlement ISD (50.00 Cents) Woodsboro ISD (43.47 Cents) Van Alstyne ISD (40.00 Cents) Crowley ISD (49.50 Cents) Iola ISD (43.39 Cents) Waller ISD (40.00 Cents) Millsap ISD (49.50 Cents) Princeton ISD (43.36 Cents)

I&S Tax Rates of 40.0 Cents or Higher – Year 2011/12

Source: Texas Comptroller of Public Accounts – Property Tax Assistance Division.

6

District’s Historical Tax RatesDistrict’s Historical Tax Rates

Historical Tax Rates

$1.465

$0.152

$1.617

$1.339

$0.226

$1.565

$1.040

$0.365

$1.405

$1.040

$0.370

$1.410

$1.040

$0.365

$1.405

$1.040

$0.385

$1.425

$1.040

$0.395

$1.435

$1.040

$0.395

$1.435

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

Tax

Rat

e

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Maintenance & Operations Tax Rate Interest & Sinking Fund Tax Rate

The District's total tax rate has declined by 18.2 cents or 11.3% over the last 7-years.

7

Historical Taxes – For a $116,497 Average Home ValueHistorical Taxes – For a $116,497 Average Home Value

$1,486.93

$154.28

$1,641.21

$1,359.04

$229.39

$1,588.43

$1,055.57

$370.46

$1,426.03

$1,055.57

$375.54

$1,431.11

$1,055.57

$370.46

$1,426.03

$1,055.57

$390.76

$1,446.33

$1,055.57

$400.91

$1,456.48

$1,055.57

$400.91

$1,456.48

$0

$500

$1,000

$1,500

$2,000

$2,500

Tax

es

2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13

Maintenance & Operations Taxes Interest & Sinking Fund Taxes

Based upon a constant home value, a homeowner's school property taxes have declined by $184.73 or 11.3% over the last 7-years.

Historical Taxes for a $116,497 Average Home Value

Source: Tarrant Appraisal District.

8

Comparison Of Student Enrollment – Year 2011/12

School District

Year 2011/12

Student Enrollment

1.) Mesquite ISD 38,287 2.) Richardson ISD 37,044 3.) Irving ISD 34,770 4.) Keller ISD 33,130 5.) Mansfield ISD 32,564 6.) Grand Prairie ISD 26,607 7.) Carrollton-Farmers Branch ISD 26,423 8.) Birdville ISD 23,711

9.) Hurst-Euless-Bedford ISD 21,570 10.) Eagle Mountain-Saginaw ISD 17,155 11.) Crowley ISD 15,101 12.) Grapevine-Colleyville ISD 13,510 13.) Duncanville ISD 13,079

Comparison of Selected DFW Texas School Districts –Enrollment Between 12,500-40,000

Source: Texas Education Agency.

9

Comparison Of Debt Per Taxable Assessed Valuation

School District

Principal

Amount Of Outstanding &

Authorized Bonds

Year 2011/12 Taxable

Valuation

Debt As A Percent Of

Taxable Valuation

1.) Crowley ISD $ 632,092,522 $ 4,616,783,628 13.69% 2.) Eagle Mountain-Saginaw ISD 767,981,431 6,063,064,387 12.67% 3.) Grand Prairie ISD 492,045,763 4,743,995,233 10.37% 4.) Mansfield ISD 872,809,963 9,407,039,073 9.28% 5.) Mesquite ISD 451,273,025 6,052,684,984 7.46% 6.) Irving ISD 554,091,600 8,745,558,574 6.34% 7.) Keller ISD 700,087,011 11,200,638,123 6.25% 8.) Hurst-Euless-Bedford ISD 449,433,426 8,508,099,394 5.28% 9.) Duncanville ISD 150,421,348 3,153,422,793 4.77% 10.) Richardson ISD 509,569,988 15,533,848,816 3.28% 11.) Grapevine-Colleyville ISD 354,381,492 10,880,609,668 3.26% 12.) Birdville ISD 213,969,754 7,018,286,448 3.05%

13.) Carrollton-Farmers Branch ISD 363,045,000 13,477,170,228 2.69%

Source: The Municipal Advisory Council of Texas – As of August 31, 2012.


10

Comparison Of Debt Per Student

School District

Principal

Amount Of Outstanding &

Authorized Bonds

Year 2011/12 Student

Enrollment

Debt Per Student

1.) Eagle Mountain-Saginaw ISD $ 767,981,431 17,155 44,767 2.) Crowley ISD 632,092,522 15,101 41,858 3.) Mansfield ISD 872,809,963 32,564 26,803 4.) Grapevine-Colleyville ISD 354,381,492 13,510 26,231 5.) Keller ISD 700,087,011 33,130 21,132 6.) Hurst-Euless-Bedford ISD 449,433,426 21,570 20,836 7.) Grand Prairie ISD 492,045,763 26,607 18,493 8.) Irving ISD 554,091,600 34,770 15,936 9.) Richardson ISD 509,569,988 37,044 13,756 10.) Carrollton-Farmers Branch ISD 363,045,000 26,423 13,740 11.) Mesquite ISD 451,273,025 38,287 11,787 12.) Duncanville ISD 150,421,348 13,079 11,501 13.) Birdville ISD 213,969,754 23,711 9,024

Source: The Municipal Advisory Council of Texas and Texas Education Agency – As of August 31, 2012.


11

Comparison of Standard & Poor’s Bond Ratings

School District

Bond Rating

1.) Hurst-Euless-Bedford ISD AA+ 2.) Irving ISD AA+ 3.) Richardson ISD AA+ 4.) Birdville ISD AA

5.) Carrollton-Farmers Branch ISD AA 6.) Grapevine-Colleyville ISD AA 7.) Keller ISD AA 8.) Mansfield ISD AA 9.) Mesquite ISD AA 10.) Duncanville ISD AA- 11.) Eagle Mountain-Saginaw ISD AA- 12.) Grand Prairie ISD AA- 13.) Crowley ISD A+

Source: The Municipal Advisory Council of Texas.


12

Example Of Bond Repayment Periods

School District

Bond Series

Year Of

Final Maturity

RepaymentPeriod

Birdville ISD 2007 2032 25 Years Carrollton-Farmers Branch ISD 2012 2032 20 Years Crowley ISD 2008 2039 31 Years Duncanville ISD 2003 2033 30 Years Eagle Mountain-Saginaw ISD 2011 2050 39 Years Grand Prairie ISD 2008 2037 29 Years Grapevine-Colleyville ISD 2011 2036 25 Years Hurst-Euless-Bedford ISD 2011 2036 25 Years Irving ISD 2010 2040 30 Years Keller ISD 2009 2035 26 Years Mansfield ISD 2012 2042 30 Years Mesquite ISD 2010 2035 25 Years Richardson ISD 2012 2037 25 Years

Example Bond Repayment Periods for Texas School Districts

Generally speaking, Texas school districts repay bonds issued for long-term capital improvements over a period of 20 to 40 years.

13

$0

$2,500,000

$5,000,000

$7,500,000

$10,000,000

$12,500,000

$15,000,000

$17,500,000

$20,000,000

$22,500,000

$25,000,000

$27,500,000

$30,000,000

An

nu

al D

ebt

Serv

ice

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

2029

/30

2030

/31

2031

/32

Unlimited Tax School Building & Refunding Bonds, Series 1997 Unlimited Tax School Building Bonds, Series 1998Unlimited Tax School Building & Refunding Bonds, Series 1999 Unlimited Tax School Building Bonds, Series 2000Unlimited Tax School Building & Refunding Bonds, Series 2002 Unlimited Tax Refunding Bonds, Series 2004Unlimited Tax School Building Bonds, Series 2006 Unlimited Tax School Building & Refunding Bonds, Series 2007Unlimited Tax School Building Bonds, Series 2008-A Unlimited Tax Refunding Bonds, Series 2008-BUnlimited Tax Refunding Bonds, Series 2012

__________Note: Debt service payments reflect payments from September 1 through August 31.

Existing Bonds – Debt Service by Series

The District has a total principal amount of existing bonds equal to $213,969,753.59.

District's I&S tax rate is 39.5 cents. Beginning in Year 2021/22, the

District’s bond payments decline by approximately $14.5 million –

Providing bond capacity for a new bond program.

14

Over the last 10-years, the District has actively managed its debt portfolio to lower its borrowing cost. For example, the District has achieved $9,600,706 of savings by refunding its outstanding bonds at a lower interest rate as summarized below.

Summary of Interest Cost Savings Achieved By Managing the District’s Debt Portfolio

Summary of Interest Cost Savings Achieved By The District

Bond Sale

Principal Amount

Refunded

Series

Refunded

Savings

Unlimited Tax Refunding Bonds, Series 2002A $ 22,725,000 1994 & 1996 $ 808,894

Unlimited Tax Refunding Bonds, Series 2003 20,247,779 1994 1,647,365

Unlimited Tax Refunding Bonds, Series 2004 25,701,186 1994, 1997 & 1997A 1,157,110

Unlimited Tax School Building & Refunding Bonds, Series 2007 7,400,565 1997 3,276,700

Unlimited Tax Refunding Bonds, Series 2008-B 4,765,000 1997A 358,349

Unlimited Tax Refunding Bonds, Series 2012 23,215,000 2006 2,352,288

Totals $104,054,530 --- $9,600,706

15

Where Do The District’s Property Taxes Come From?

Residential Real Estate, 53.4%

Commercial / Industrial Real

Estate & Personal Property, 45.4%

Mineral Lease & Agriculture

Properties, 1.2%

45.4% of the District’s property taxes are received from Commercial / Industrial properties.

53.4% of the District’s property taxes are received from residential properties.

Source: Tarrant Appraisal District – Year 2012/13.

16

The Bond Buyer 20-Bond Index –

A Tax-Exempt General Obligation Bond Yield Index

January 1, 1999 To The Present

The Bond Buyer 20-Bond Index –

A Tax-Exempt General Obligation Bond Yield Index

January 1, 1999 To The Present

Current Market Review

Based upon a $150.0 million bond program repaid over 25-years, an interest rate difference of 0.50% changes the District’s interest cost by approximately $13,500,000.

Based upon a $150.0 million bond program repaid over 25-years, an interest rate difference of 0.50% changes the District’s interest cost by approximately $13,500,000.

3.50

3.75

4.00

4.25

4.50

4.75

5.00

5.25

5.50

5.75

6.00

6.25

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Yie

ld (

%)

Average = 4.74%

High = 6.09%

2012 Refunding

Low = 3.60%

Fixed interest rates have been volatile and are currently within 0.16% of a historical low.

Decrease of 1.65%

17

This Preliminary Tax Rate Impact Analysis is based upon the assumptions detailed herein. To the extent the District’s actual results differ from the assumptions herein, the financial impact to the District will correspondingly change.

This Preliminary Tax Rate Impact Analysis is based upon the assumptions detailed herein. To the extent the District’s actual results differ from the assumptions herein, the financial impact to the District will correspondingly change.

Preliminary Tax Rate Impact Analysis

Scenario 1: $150.0 Million Bond Program – Issued in 3 Installments.

$42.0 Million – August 2013 Bond Sale; $54.0 Million – March 2014 Bond Sale; $54.0 Million – March 2015 Bond Sale.

Scenario 2: $175.0 Million Bond Program – Issued in 3 Installments.

$49.0 Million – August 2013 Bond Sale; $63.0 Million – March 2014 Bond Sale; $63.0 Million – March 2015 Bond Sale.

Scenario Presented Scenario Presented

18

Assumptions Assumptions

Preliminary Tax Rate Impact Analysis (Continued)

Any I&S tax rate increase associated with the bond program occurs in year 2013/14.

The bond program is sold at an average interest rate of 4.12% during years 2013/14 – 2020/21.

Bonds are repaid over a 25-year period and are structured to allow the District to prepay the bonds on an annual basis, without penalty.

District will receive State funding assistance for the repayment of the new bond program beginning in year 2015/16.

District’s year 2011/12 student enrollment of 23,711 students will increase by 150 students annually for 6-years (i.e. year 2012/13 through 2017/18) and remain constant thereafter.

Tax collection rate of 98.0%.

19

Average Annual Increase – Years Fiscal Year 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2007/08 – 2012/13 Taxable Assessed Valuation $6,194,793,155 $6,439,031,190 $6,635,705,539 $6,619,053,695 $6,290,467,185 $6,346,131,107 $6,546,131,107 --- Dollar Change $283,725,719 $244,238,035 $196,674,349 ($16,651,844) ($328,586,510) $55,663,922 $200,000,000 $58,556,325 Percentage Change 4.80% 3.94% 3.05% (0.25%) (4.96%) 0.88% 3.15% 0.97%

Average Annual Increase – Years Fiscal Year 2013/14 2014/15 2015/16 2016/17 2017/18 2013/14 – 2017/18 Taxable Assessed Valuation $6,626,131,107 $6,706,131,107 $6,786,131,107 $6,866,131,107 $6,946,131,107 --- Dollar Change $80,000,000 $80,000,000 $80,000,000 $80,000,000 $80,000,000 $80,000,000 Percentage Change 1.22% 1.21% 1.19% 1.18% 1.17% 1.19%

Preliminary Tax Rate Impact Analysis (Continued)

Source: Tarrant Appraisal District.

Historical and Assumed Taxable Valuations(Net of Frozen Levy)

Historical and Assumed Taxable Valuations(Net of Frozen Levy)

$6,1

94,7

93,1

55

$6,4

39,0

31,1

90

$6,6

35,7

05,5

39

$6,6

19,0

53,6

95

$6,2

90,4

67,1

85

$6,3

46,1

31,1

07

$6,5

46,1

31,1

07

$6,6

26,1

31,1

07

$6,7

06,1

31,1

07

$6,7

86,1

31,1

07

$6,8

66,1

31,1

07

$6,9

46,1

31,1

07

$0

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

$7,000,000,000

$8,000,000,000

Tax

able

Ass

esse

d V

alua

tion

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 &Thereafter

20

New Bond Program – Projected Annual Interest & Sinking FundTax Rate Increase For Various Taxable Home Values

New Bond Program – Projected Annual Interest & Sinking FundTax Rate Increase For Various Taxable Home Values

Note: The State Property Tax Code allows for school property taxes on an individual homestead to be “frozen” at the age of 65. If you are 65 years of age or older, a new bond program will not affect the school property taxes on your residential homestead, if you have filed for the “Over 65 Homestead Exemption” as there is a ceiling on the amount of school taxes to be paid by such taxpayers. The only exception is if improvements are made to a home.


Preliminary Tax Rate Impact Analysis –New Bond Program

$21.84$33.12 $36.94

$56.03$67.34

$102.12 $103.74

$157.32

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

Ann

ual I

&S

Tax

Inc

reas

e

$75,000 Home Value $116,497 AverageHome Value

$200,000 Home Value $300,000 Home Value

$150.0 Million Bond Program - 3.64-Cent Tax Rate Increase


21

New Bond Program – Projected Monthly Interest & Sinking FundTax Rate Increase For Various Taxable Home Values

New Bond Program – Projected Monthly Interest & Sinking FundTax Rate Increase For Various Taxable Home Values



Preliminary Tax Rate Impact Analysis –New Bond Program

$1.82$2.76 $3.08

$4.67$5.61

$8.51 $8.65

$13.11

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

Mon

thly

I&

S T

ax I

ncre

ase

$75,000 Home Value $116,497 AverageHome Value

$200,000 Home Value $300,000 Home Value



22

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

An

nu

al D

ebt

Serv

ice

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

2029

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2030

/31

2031

/32

2032

/33

2033

/34

2034

/35

2035

/36

2036

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2037

/38

Total Existing Bond Payments $42.0 Million - August 2013 Bond Sale$54.0 Million - March 2014 Bond Sale $54.0 Million - March 2015 Bond Sale


Scenario 1 – $150.0 Million Bond Program

A $150.0 Million Bond Program is structured to repay technology related items with

shorter-term bonds and to provide additional bond capacity for future bond programs.

23

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

An

nu

al D

ebt

Serv

ice

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

2029

/30

2030

/31

2031

/32

2032

/33

2033

/34

2034

/35

2035

/36

2036

/37

2037

/38

Total Existing Bond Payments $49.0 Million - August 2013 Bond Sale$63.0 Million - March 2014 Bond Sale $63.0 Million - March 2015 Bond Sale


Scenario 2 – $175.0 Million Bond Program

A $175.0 Million Bond Program is structured to repay technology related items with

shorter-term bonds and to provide additional bond capacity for future bond programs.

24

William J. Gumbert Managing Director, Director of Texas Public Finance

333 West Campbell Road, Suite 350 │ Richardson, Texas 75080 E-Mail: [email protected] Direct: 214.576.0880 │ Mobile: 214.212.3153 │ Fax: 214.576.0890

Securities offered by BOSC, Inc., Registered Investment Advisor, a registered Broker/Dealer, Member FINRA/SIPC

Alison M. Long Associate, Texas Public Finance



Dr. Cathy Bryce Investment Banker, Texas Public finance

333 West Campbell Road, Suite 350 │ Richardson, Texas 75080 E-Mail: [email protected] Mobile: 214.477.5972 │ Fax: 214.576.0890


Mike Jolly Investment Banker, Texas Public Finance



Omar Garcia Investment Banker, Texas Public Finance



Joshua M. McLaughlin Investment Banker, Texas Public Finance



Specialized Texas School District Finance Team

Ryan O’Hara Managing Director, Texas Public Finance

1401 McKinney Street, Suite 1650 │ Houston, Texas 77010 E-Mail: [email protected] Direct: 713.289.5898 │ Mobile: 713.584.5788 │ Fax: 713.354.0258


Mark Pryce Director, Municipal Institutional Underwriting

333 West Campbell Road, Suite 350 │ Richardson, Texas 75080 E-Mail: [email protected] Direct: 214.576.0872 │ Fax: 214.576.0890


review of district’s debt position and capacity monday...

Documents