Tax & Financial Information
School District Tax Rates
If approved by voters, the tax impact from this bond proposal could range from zero cents to one cent per $100 valuation, depending on the timing of the sale of bonds. The tax rate could also be less than projected if the district’s tax base grows more than anticipated and/or a lower interest rate is secured.
A variety of factors contribute to Georgetown’s ability to issue bonds with an estimated maximum tax increase of 1 cent:
Growth and Developments - With rapid growth, GISD 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 - GISD has a solid debt repayment plan with the maximum maturity on debt issued is 30 years. GISD also considers refinancing bonds when financially advantageous or beneficial.
Low Interest Rates - Based on current and projected market conditions, GISD can issue bonds at all-time low interest rates. This makes it less costly to finance new bonds.
Georgetown ISD has a rating of Aa1 from Moody’s, which reflects the district’s large and rapidly growing tax base and strong financial position, and an Aaaa rating based on the Texas Permanent School Fund (PSF) for timely payment.
Additionally, Georgetown ISD achieved an A-Superior Rating from the Financial Integrity Rating System of Texas (FIRST).
Georgetown ISD has a rating of Aa1 from Moody’s, which reflects the district’s large and rapidly growing tax base and strong financial position, and an Aaaa rating based on the Texas Permanent School Fund (PSF) for timely payment.
Additionally, Georgetown ISD achieved an A-Superior Rating from the Financial Integrity Rating System of Texas (FIRST).
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 click here.
Understanding the Tax Rate
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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 84% of Georgetown ISD’s M&O budget is spent on personnel salaries, benefits, daily operations 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.
Georgetown ISD’s current M&O rate is $0.6992 and the I&S rate is $0.3475, for a total district tax rate of $1.0467 per $100 of property value.