Debt Capacity and Management

The district’s financial advisors forecast debt capacity and believe the district can manage up to $275 million by using a conservative debt repayment plan that takes advantage of taxes collected on new construction and rising property values. Keep in mind that the Tarrant Appraisal District sets property values, not EMS ISD. 

Bond capacity is a function of the following factors:

• Projected Property Taxable Values – Projected increases based on new construction and revaluations of existing properties and impact of new homestead exemption
• Projected Bond Interest Rates – Have dropped to near historic lows but are expected to increase by future issuances
• Projected Interest and Sinking (I&S) Tax Rate – EMS ISD recently set the I&S tax rate at $0.50 to maximize bond issuances and lock in savings to taxpayers and that rate is assumed in the bond capacity projection

When possible, the district pays down debt early. Since 2005, EMS ISD has completed 16 bond refunding programs at a lower interest rate, saving local taxpayers approximately $110.8 million in future interest costs.