Fayetteville ISD Community Bond Committee August 8, 2016

How does a bond work? A Bond is similar to a home mortgage A bond is made up of principal (amount of money borrowed) and interest (the cost of borrowing the money) A district decides how much it would like to spend constructing and/or renovating a facility, purchasing land, buses, technology, or other equipment The district then makes a decision on how long they want to take to pay off the bond considering the following: Tax rate increase Interest expense

homestead exemption Tax Code Section 11.13(b) requires school districts to offer a $25,000 exemption on residence homesteads. There are no specific qualifications for the general homestead exemption other than the owner has an ownership interest in the property and uses the property as the owner’s principal residence. An applicant is required to state that he or she does not claim an exemption on another residence homestead in or outside of Texas. http://comptroller.texas.gov/taxinfo/proptax/exemptions.htm l

Over-65 homestead exemption There will not be an increase over the ceiling established when a homeowner 65 or older turned 65 or after they have moved to a new home after turning 65. The over-65 state mandated homestead exemption DOES apply to school bond elections. http://comptroller.texas.gov/taxinfo/proptax/exemptions/age65older_disabled_faq .html

ag exempt land Ag exempt land is taxed on production value rather than appraised market value Values are determined by USDA each year

It is currently historically inexpensive to borrow money Why is now a good time?

Tax implications In order to pay for the new track project, additional taxes will need to be levied to pay for the bond. The project would require a 7c tax rate increase for 15 years. **Average market value in FISD is $149051

Tax implications In order to pay for the school and gym renovation projects, additional taxes will need to be levied to pay for the bond. The project would require a 10c tax rate increase for 15 years. **Average market value in FISD is $149051

Tax implications In order to pay for the new gym, additional taxes will need to be levied to pay for the bond. The project would require a 12c tax rate increase for 30 years. **Average market value in FISD is $149051

Questions? Christian Merritt cmerritt@liveoakpubfin.com (817) 480-4998