Tax & Financial
Information

If approved by voters, the 2023 Bond will not result in a tax rate increase.

ZERO Tax Rate Increase

✦

ZERO Tax Rate Increase ✦

Factors that contribute to Liberty Hill’s ability to issue bonds without increasing the district’s tax rate:

  • GROWTH AND DEVELOPMENTS

    With rapid growth, LHISD is forecasting property values for new homes and developments. As property values increase, tax revenue is projected to increase which will help finance new bonds.

  • PAYING DOWN DEBT

    LHISD has a solid debt repayment plan with the maximum maturity on debt issued is 35 years. LHISD also considers bond refundings when financially advantageous or beneficial.

  • FISCAL RESPONSIBILITY

    LHISD has had great success in utilizing the market conditions to pay and restructure debt, and secure low interest rates.

Finance 101

Do you want to know how your Liberty Hill ISD is keeping your tax dollars in check? Check out this short clip from our CFO, Rosanna Guerrero, as she shares how LHISD has prioritized responsible spending!

Explaining the Ballot:

In 2019, a New law for School Districts was imposed in Education Code §45.003(b-1), which adds an additional sentence to the ballot proposition:
“THIS IS A PROPERTY TAX INCREASE.”

The Texas Attorney General said this statement cannot be modified.

The LHISD I&S tax rate will NOT be increased by the proposed 2023 bond propositions and will remain at $.50

  • Bonds are supported by the Interest & Sinking (I&S) fund portion of the tax rate.

  • Based on the current debt structure, LHISD has maintained the $0.50 in 22-23.

BALLOT EXAMPLE:

PROPOSITION A

THE ISSUANCE OF $_________________ OF BONDS BY THE LIBERTY HILL INDEPENDENT SCHOOL DISTRICT FOR SCHOOL FACILITIES AND THE LEVYING OF A TAX IN PAYMENT THEREOF. THIS IS A PROPERTY TAX INCREASE.

Homestead
Exemptions

For residents 65-years and older, their school district tax bill will not increase, even if their property values increase (excluding property improvements) as long as an approved Homestead and Over-65 Exemption application is on file with the Williamson Central Appraisal District, and the property has been owned as of Jan. 1 of the tax year.

For more information about Homestead and Over-65 Exemptions, call 512-930-3787 or visit the site linked below.

Understanding the Tax Rate

Public school taxes involve two figures which divide the school district’s budget into two “buckets.” The first is the Maintenance & Operations (M&O) budget, also known as the General Fund. The M&O fund is used to pay for the day-to-day operations of a district and includes items such as salaries, utilities, food, gas, supplies, etc. Approximately 86% of Liberty Hill ISD’s M&O budget is spent on personnel salaries, benefits, and related costs.

The second is the Interest & Sinking (I&S) budget or Debt Service. This fund is used to repay debt for capital improvements approved by voters through bond elections. As a comparison, this fund is similar to a mortgage or home improvement loan. I&S funds may only be used to repay debt.

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. By law, I&S funds cannot be used for the M&O budget, which means voter-approved bonds cannot be used to increase salaries or to pay rising costs of utilities or services.

Liberty Hill ISD’s current M&O rate is $0.84 and the I&S rate is $0.50, for a total district tax rate of $1.34 per $100 of property value.

LHISD’s I&S tax rate is capped at $0.50 and, by law, cannot be increased.
If this bond package is approved by voters, the district’s tax rate will not increase.
The district can make all existing and new bond payments with the current school district tax rate.

50-Cent Debt Test

School Districts must demonstrate to the Texas Attorney General that, with respect to the proposed bonds, the district has the projected ability to pay the principal and interest on the proposed, as well as outstanding bonds, from a tax rate not to exceed $0.50. Liberty Hill passes this test.