NO TAX RATE IMPACT
If voters approve the $59,470,000 bond package, there will be NO tax rate impact.
How can the school district pay for bonds without increasing my taxes?
Growth.
As our community grows rapidly, the taxes generated from new homes and businesses help cover the costs. This way, existing taxpayers won’t have to shoulder the full burden of repaying the bonds.
If there is NO TAX RATE INCREASE, why will the ballot read “THIS IS A PROPERTY TAX INCREASE”?
This requirement was a part of new laws coming from Austin after the legislative session in 2019. The Texas legislature wanted the ballot language to be clear, that voted bonds were the method that we use to finance school construction. Paying for these voted bonds requires tax revenues.
There will be no tax rate increase associated with this bond but will continue the existing tax rate. The new law requires every district in Texas to include this language on the ballot, regardless of the expected tax rate to be set.
School Finance 101
A school district’s tax rate is comprised of two components: the Maintenance & Operations tax (M&O) and the Interest & Sinking tax (I&S). Bond sales only affect the I&S rate.
How is Blue Ridge ISD’s tax rate configured?
Maintenance and Operation (M&O) funds are primarily used for the ongoing operational needs of the district. These funds ensure that the schools can function on a day-to-day basis. They include:
Utilities
Supplies
Salaries
Interest and Sinking (I&S) funds are used for paying off debt incurred by the school district, typically for:
Construction of new school buildings
Renovation or major repairs of existing facilities
Purchase of large equipment or other capital investments