Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 1 of 9 PageID #: 1230
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 1 of 9 PageID #: 1230
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`EXHIBIT F
`EXHIBIT F
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`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 1 of 9 PageID #: 1230
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`EXHIBIT F
`EXHIBIT F
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`Tax Info — Northwest ISD Bond 2021
`4/27/2021
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 2 of 9 PageID #: 1231
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`https://www.nisdtxbond.org/tax-info
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`1/8
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`No Change to the Tax
`Rate
`STATE LAW REQU IRES “PROPERTY TAX
`INCREASE ” LANGUAGE ON BALLOT FOR
`BOND PROPOS IT IONS DESP ITE N ISD ’S
`I&S TAX RATE NOT INCREAS ING .
`In compliance with a new state law, bond ballot
`propositions must include the following statement:
`THIS IS A PROPERTY TAX INCREASE. As a result
`of this new requirement, voters in NISD will see this
`language on all four bond propositions; however,
`the NISD tax rate will not increase as a result of the
`2021 bond election. In fact, the NISD Board of
`Fiscal
`Management
`
`Highlights
`• Bond interest
`rates are at an
`all-time low in
`the 41-year
`history of Bond
`Buyer Index.
`• NISD has
`historically taken
`advantage of
`bond refinancing
`TAX
`INFORMATION
`
`
`Tax Info — Northwest ISD Bond 2021
`4/27/2021
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 3 of 9 PageID #: 1232
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`https://www.nisdtxbond.org/tax-info
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`2/8
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`Trustees voted on August 10, 2020 to lower the I&S
`rate by $0.03.
`HOW IS THE D ISTR ICT ABLE TO ISSUE
`NEW BONDS W ITHOUT RA IS ING THE
`RATE?
`The main factor that allows NISD to issue new
`bonds without raising the Interest & Sinking (I&S)
`tax rate is growth in the district’s Taxable Assessed
`Value (TAV). The amount of taxes levied by NISD
`are calculated by multiplying the tax rate set by the
`district by the taxable value of the property within
`the district. The taxable values are set by the
`county appraisal districts. The district’s TAV
`increases each year as new commercial and
`residential development takes place. This additional
`tax base will generate more tax revenue, even if the
`tax rate remains the same.
`THEN WHY IS TH IS “PROPERTY TAX
`INCREASE ” LANGUAGE REQU IRED?
`State law requires this language on all school bond
`referendums. If economic conditions in the district
`became adverse, the district would be legally
`required to levy an I&S tax rate sufficient to repay
`the bonds.
`opportunities and
`has completed
`three refundings
`since Nov. 2019
`resulting in over
`$50 million in
`savings.
`• The $745.7
`million won’t be
`sold all at once
`and would not be
`spent until
`necessary
`growth occurs.
`Once bonds are
`authorized by
`voters they are
`sold in
`increments over
`time as needed
`to fund the
`projects.
`• State law allows
`for bonds to be
`financed up to 40
`years. NISD
`finances bonds
`for 25 years, and
`with refunding
`opportunities and
`tax base growth
`has paid off past
`bonds in 15-20
`years.
`• NISD maintains
`its high credit
`ratings from two
`agencies, AA
`
`
`Tax Info — Northwest ISD Bond 2021
`4/27/2021
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 4 of 9 PageID #: 1233
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`https://www.nisdtxbond.org/tax-info
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`3/8
`
`from Fitch and
`Aa2 from
`Moody’s.
`Understanding the Tax
`Rate
`Public school taxes involve two figures, which divide the school
`district budget into two “buckets.” The first bucket is the
`Maintenance and Operations budget (M&O), which funds daily
`costs and recurring or consumable expenditures such as teacher
`and staff salaries, supplies, food, gas and utilities. Approximately
`84 percent of the district’s M&O revenue goes to teacher and
`staff salaries. The second bucket is the Interest and Sinking
`budget (I&S), also known as Debt Service, and that is used to
`repay debt for longer-term capital improvements approved by
`voters through bond elections.
`Proceeds from a bond issue can be used for the construction
`and renovation of facilities, the acquisition of land and the
`purchase of capital items such as equipment, technology and
`transportation. I&S funds cannot by law be used to pay M&O
`expenses, which means that voter-approved bonds cannot be
`used to increase teacher salaries or pay rising costs for utilities
`and services.
`
`
`Tax Info — Northwest ISD Bond 2021
`4/27/2021
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 5 of 9 PageID #: 1234
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`https://www.nisdtxbond.org/tax-info
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`4/8
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`Tax Rate History
`The current total tax rate in NISD is the lowest it has been in over
`10 years. The decrease shown in the M&O rate in 2019 and 2020
`is a result of the compression from House Bill 3, the state's
`property tax relief bill. In 2020, the NISD Board of Trustees also
`voted to lower the I&S rate by $0.03. Even with voter approval of
`the May 1 bond election, the I&S rate will remain at $0.42.
`NISD Compared to Fast-
`Growth Districts in North
`Texas
`Compared to these
`other fast-growth
`school districts,
`Northwest ISD has the:
`
`
`Tax Info — Northwest ISD Bond 2021
`4/27/2021
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 6 of 9 PageID #: 1235
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`https://www.nisdtxbond.org/tax-info
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`5/8
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`• Lowest overall
`tax rate
`($1.3363)
`• Largest
`geographic area
`(234 square
`miles)
`• Greatest
`potential for
`growth (25% built
`out)
`NISD Compared to
`Neighboring Districts
`(2020 Total Tax Rates)
`Understanding Your Tax
`Payment vs. Tax Rate
`
`
`Tax Info — Northwest ISD Bond 2021
`4/27/2021
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 7 of 9 PageID #: 1236
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`https://www.nisdtxbond.org/tax-info
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`6/8
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`Even though the NISD rate is the lowest it has been in 10 years,
`your taxes are higher due to the overall property value growth,
`not the tax rate.
`EXAMPLE TAX PAYMENT
`OVER 5 YEARS
`Scenario assumes 4% property value growth
`each year.
`The
`assesse
`d value is
`set by
`your
`county
`appraisal
`district.
`The
`amount
`of taxes
`paid by
`each
`taxpayer
`is
`calculate
`d by
`multiplyi
`ng the
`district
`tax rate
`by each
`$100 of
`taxable
`value of
`the
`property.
`
`
`Tax Info — Northwest ISD Bond 2021
`4/27/2021
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 8 of 9 PageID #: 1237
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`https://www.nisdtxbond.org/tax-info
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`7/8
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`WHY D ID I RECE IVE A REV ISED TAX B ILL AF TER
`THE NOVEMBER 2020 ELECT ION?
`There were two elections in November 2020: The Bond Election
`with Props A - D, and the Voter-Approval Tax Rate Election
`(VATRE) on Prop E. The bond election dealt only with funds on
`the I&S side, or the debt side, of the district’s tax rate while the
`VATRE dealt only with funds on the M&O side, the operations
`side.
` House Bill 3 further compressed the M&O tax rate in August of
`2020 to $0.9163 and the VATRE was the district’s way of asking
`for voter approval to return to the previous tax rate and avoid a
`$20 million operational budget shortfall. When the VATRE didn’t
`pass, it meant the M&O tax rate was returned to the compressed
`rate of $0.9163. The Denton County Tax Assessor/Collector, who
`handles all of NISD tax collections, issued amended tax
`statements at that time to reflect the adjusted M&O rate.
` When the bond propositions didn’t pass in November, it meant a
`delay in construction projects, but it did not affect the tax rate.
`Voters Over 65
`C IT IZENS 65 & OVER ARE EL IG IBLE FOR AN “OVER
`65 ” HOMESTEAD EXEMPT ION .
`
`
`Tax Info — Northwest ISD Bond 2021
`4/27/2021
`Case 2:21-cv-00072-JRG-RSP Document 63-6 Filed 05/25/21 Page 9 of 9 PageID #: 1238
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`https://www.nisdtxbond.org/tax-info
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`8/8
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`Northwest ISD property taxes for citizens age 65 or older would
`not be affected by the bond election. According to state law, the
`dollar amount of school taxes imposed on the residence
`homestead of a person 65 years of age or older cannot be
`increased above the amount paid in the first year after the
`person turned 65, regardless of changes in tax rate or property
`value unless significant improvements are made to the home. If
`you are 65 or older, you may file a homestead application at any
`time, or contact your local appraisal district to see if you already
`have the appropriate exemption on file.
`NISD HOME
`PAGE
`REGISTER TO
`VOTE
`NOTICE OF
`BOND
`ELECTION
`REG ISTER TO VOTE BY APR IL 1
`EARLY VOT ING : APR IL 19 -27 , 202 1
` ELECT ION DAY: SATURDAY, MAY 1 , 202 1
`© Northwest ISD
`
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