The Citizens’ Bond Committee, in its report to the AISD Board of Trustees, estimated that a $519.5 million bond authorization, if layered on the current outstanding debt of the District and sold in four issues, would result in an increase in the tax rate of approximately $.0465 per $100 of appraised valuation.

For an Austin homeowner with a median home appraisal of $157,000, the tax increase would be approximately $6.08 per month.

The District’s objective was to examine options to minimize the impact on the Austin ISD debt service (interest and sinking) tax rate of a bond authorization of $519 million. The current outstanding debt of the District was examined for the possibilities of refinancing and restructuring to take advantage of the current market conditions.

In making these projections, the following assumptions concerning growth, inflation, and other areas were used. These assumptions are conservative.

• Appraisal growth will continue but at a slower rate than in previous years.
• Appraisal values would be the net of homestead and over-65 exemptions.
• The $519.5 million bond authorization would be issued with 25-year maturities.
• Finally, it was assumed that the District would maintain its current AA bond rating and seek a Permanent School Fund (PSF) Guarantee.

The charts below and on page 9 provide current AISD financial information on revenue sources, tax rate history, and a tax rate comparison with other Central Texas public school districts.