2023 Bond Information

 

A school district tax rate is made up of two different tax rates. The first is Maintenance & Operations (M&O) which covers the day-to-day costs of running a school district with most going towards salaries and utilities. The second is Interest & Sinking (I&S) which is solely used for paying down debt. Together, those two rates make up the total rate. Abernathy ISD has decreased the tax rate by 35 cents over the past 5 years resulting in a 2023 total tax rate of $1.1467.

How is the District able to issue a bond without an M&O or I&S Tax Rate Increase?
The District was able to pay off debt early due to savings accumulated over the last several years. That along with growth of our overall tax base increased our bond capacity to pay for additional bonds and corresponding facility improvements without any M&O or I&S tax rate increases to Abernathy ISD tax payers. Following a successful bond election of all three propositions, the District intends to issue the $3.35 million (Propositions A&B) with no M&O or I&S changes.

Proposition C includes a 50%, or $2 million dollar, inflation adjustment that might be avoided when the time comes to build. The District only intends to issue the amount needed up to $5.9 million (Proposition C) if it can do so without an M&O or I&S combined tax rate change.

Abernathy ISD does not determine your property values. Local county appraisal districts set property values. Abernathy ISD sets the school district tax rate based on detailed guidance from TEA and current property tax law. This is the maximum rate that can be set without seeking voter approval.

 

Why does the ballot state, “This is a property tax increase.”?
This statement is required by law regardless of whether the tax rate is expected to increase or decrease.

Also on your ballot in November, voters will see the largest tax relief bill go to a vote. The state is proposing increasing the homestead exemption from $40,000 to $100,000 which would save the average property owner roughly between $900 and $1,200 on their annual tax bill.