2. Public School Finance 101
Greg Cartwright, Chief Financial Officer Allen Independent School District
7:45 – 7:55 Tim Carroll
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3. Public School Finance 101 Texas Education Code - Chapter 45
The governing board of an independent school district may levy, assess, and collect annual ad valorem taxes:
For the maintenance of public schools in the district; and
For the payment of principal of and interest on bonds.
Ad Valorem Taxes
“According to Value”
A tax based on the assessed value of property within a jurisdiction.
7:45 – 7:55 Tim Carroll
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4. Public School Finance 101 Two Types of Tax Rates
Maintenance & Operations (M&O)
For payroll, utilities, supplies, equipment, furniture, fees, travel, etc.
Allen ISD M&O Rate for is $1.16 per $100 taxable value
Board approval up to $1.04; Voter approval up to $1.17 Maximum
Can be used to pay for Capital projects or Debt Service costs
Interest & Sinking (I&S)
For payment of annual principal and interest on bond debt along with related fees
Allen ISD I&S Rate for is $0.48 per $100 taxable value
Board approval up to $0.50 Maximum
Not allowed to pay for M & O expenses
7:45 – 7:55 Tim Carroll
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5. Public School Finance 101 Bond Debt - Use of Funds
Construction, acquisition, and equipping of school buildings
Purchase of necessary sites for school buildings
Purchase of new school buses
7:45 – 7:55 Tim Carroll
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6. Public School Finance 101 Bond Debt - Other Factors
Maximum of 40 Year Maturity Value on Bonds Sold
Taxes are “Frozen” on 65 & Over and Disabled – Homestead Exemption
Ratings Can Impact Interest Rate Paid on Bonds Sold
- PSF Guarantee at AAA
- Moody’s Underlying of Aa2
- S&P Underlying of AA
7:45 – 7:55 Tim Carroll
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7. Public School Finance 101 Texas Education Code - Chapter 45
Bonds may not be issued and taxes may not be levied unless authorized by a majority of the qualified voters of the district, voting at an election held for that purpose, at the expense of the district, in accordance with the Election Code.
Each election must be called by resolution or order of the governing board. The resolution or order must state the date of the election, the proposition or propositions to be submitted and voted on, the polling place or places, and any other matters considered necessary or advisable by the governing board.
7:45 – 7:55 Tim Carroll
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8. Public School Finance 101 Total Property Values
7:45 – 7:55 Tim Carroll
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9. Public School Finance 101 Debt Service - Principal & Interest
7:45 – 7:55 Tim Carroll
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10. Public School Finance 101
7:45 – 7:55 Tim Carroll
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