In determining the amount for the 2008 Bond Program, the District examined options to minimize the impact on the Austin ISD debt service (interest and sinking) tax rate. The Austin ISD Board of Trustees estimates that a $343.7 million bond authorization, if layered on outstanding debt of the District and sold in three issues, would result in a maximum increase in the tax rate of approximately 1.7¢ per $100 of appraised valuation

For an Austin homeowner with a median home appraisal of $200,000, the tax increase would be approximately $2.83 per month or $34 annually. Under state law and the District's policy, there would be no tax increase for homeowners age 65 and older.

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

• Property value growth will continue at an estimated rate of seven percent annually.
• Interest notes to be "PSF (Permanent School Fund) Insured," and rates are assumed to increase by 25 basis points for each series of bonds, and
• The tax collection rate is estimated to be 98 percent.