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Birdville ISD finance official says $48 million bond can be proposed without raising tax rate
Summary
Katie Bowman, Birdville ISD's associate superintendent for finance, explained that prior refinancings and early debt payments have created capacity under the district's I&S (interest and sinking) tax rate, allowing a proposed $48 million bond for multipurpose indoor facilities without increasing the tax rate. Early voting and election dates were announced.
Katie Bowman, associate superintendent for finance at the Birdville Independent School District, told listeners the district can propose a $48 million bond package to fund multipurpose indoor facilities without increasing the tax rate.
"We have created enough capacity under the existing I&S tax rate to propose $48 million in new bonds...all without increasing the district's tax rate," Bowman said. She framed the explanation as a response to questions about how a bond election could proceed without a tax-rate increase.
Bowman outlined the basic distinction between the two school tax rates used in Texas: the maintenance and operations (M&O) rate, which supports day-to-day costs such as teacher salaries, supplies and utilities, and the interest and sinking (I&S) rate, which is dedicated to repaying debt. She noted the Texas Education Agency determines aspects of the M&O rate and that M&O funds are combined with other state dollars for operations.
She said rising property values can prompt the state to reduce its financial support, leaving districts short for capital needs. For major projects — new buildings, renovations and modern facilities — districts rely on voter-approved, tax-exempt bonds; bond proceeds, she said, are used exclusively for the voter-approved facility projects and I&S revenue may be used only to repay the debt voters approved.
Bowman said Birdville has managed prior debt strategically. "Since 2012 Birdville has been strategic, refinancing portions of voter-approved debt as interest rates dropped," she said, adding that the district has paid some debt ahead of schedule and that those steps have saved taxpayers money and produced capacity under the existing I&S rate.
She announced voting logistics: early voting runs Oct. 21 through Nov. 1, and election day is Tuesday, Nov. 5; voters may cast ballots anywhere in the county, and the district encouraged residents to vote early.
The presentation was informational; Bowman did not present a final board action or vote during the remarks. The next procedural step for any bond proposal would be formal placement of an item on a board agenda for consideration and, if advanced, certification of the election schedule by the district.
