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Brownsville ISD approves slightly lower 2024–25 tax rate, authorizes defeasance to speed bond payoff
Summary
The Brownsville ISD Board on Sept. 3 adopted a $1.028664 tax rate for 2024–25 and approved a defeasance resolution to accelerate repayment of refunding bonds, a move administrators say will save interest and preserve borrowing capacity for future bond measures.
The Brownsville Independent School District Board of Trustees voted 6–1 on Sept. 3 to adopt a 2024–25 tax rate of not more than $1.028664 per $100 of valuation — composed of a maintenance and operations (M&O) rate of $0.78690 and an interest and sinking (I&S) rate of $0.241764 — and to approve a defeasance resolution enabling the district to pay certain refunding bonds early.
Chief Financial Officer Alejandro Cespedes told trustees the total rate "that we would bring to the Board for approval would be 1.028664," and explained the defeasance is intended to reduce interest costs and free capacity for future capital plans. Cespedes said last year’s defeasance paid off a Refunding Bond Series 2015 and generated nearly $1 million in savings; with the current action the district plans to defease the remaining 2020A/2020B refunding series so long‑term debt obligations are retired sooner.
Board members asked how the change affects taxpayers. Cespedes said the rate is slightly lower than last year’s 1.030964 and that taxpayer savings depend on individual property values and exemptions. Board President Jessica Gonzalez closed the public hearing before the vote after no members of the public signed up to speak during the hearing portion.
The motion to adopt the tax rate and related defeasance resolution passed with six trustees in favor; Trustee Carlos Elizondo cast the lone dissent. Administrators said the defeasance preserves the district's capacity to propose future bonds without further expanding I&S rate pressures, and that the district expects to complete the targeted payoffs within the coming year.
