Trustees set tax rate and save millions with early bond debt payments
![Picture of board room meeting]([{"url":"https://resources.finalsite.net/images/f_auto,q_auto,t_image_size_1/v1755893066/misdgs/gf3mrqkyoqhxvxgfw0bq/BoardMeetingUpdateThumbnail.png","width":256},{"url":"https://resources.finalsite.net/images/f_auto,q_auto,t_image_size_2/v1755893066/misdgs/gf3mrqkyoqhxvxgfw0bq/BoardMeetingUpdateThumbnail.png","width":512},{"url":"https://resources.finalsite.net/images/f_auto,q_auto/v1755893066/misdgs/gf3mrqkyoqhxvxgfw0bq/BoardMeetingUpdateThumbnail.png","width":600}])
Trustees set tax rate and save millions with early bond debt payments
Early bond debt payments result in $16.1 million in savings to taxpayers
The Midlothian ISD Board of Trustees approved another round of early bond debt payments at its August board meeting. The early bond payment of $19,155,000 will save taxpayers approximately $16.1 million in future interest costs. This latest defeasement payment brings MISD’s total savings to taxpayers over the past 15 years to approximately $127 million in interest savings.
The district's Interest and Sinking (I&S) tax rate for debt service is $0.41 per $100 valuation. With this tax rate, the District can defease bonds in the 2025-26 fiscal year and maintain bonding capacity for the proposed bond projects recommended by the Facility Planning Committee and approved 7-0 by the Board for the November 4 General Election.
Trustees adopt a tax rate without calling a VATRE
The Midlothian ISD Board of Trustees voted 7-0 to adopt a total tax rate of $1.0708 per $100 valuation, with a maintenance and operation (M&O) rate of $0.6608 and an interest and sinking (I&S) rate of $0.41. The adopted tax rate is slightly lower than last year’s rate and does not include the option to put a voter approval tax election on the November ballot.
Over the last five years, the MISD M&O tax rate has decreased by 22 pennies and the I&S by eight. Part of that reduction is due to the state maximum compressed M&O rate. The adopted debt service rate of 41 cents allows the district to continue to defease and maintain bonding capacity for the proposed projects slated for the 2025 bond election, which is on the November ballot.
Trustees expressed an interest in focusing on the proposed bond program and the potential projects recommended in the three bond proposal propositions that will be on the November election ballot. Trustees may reconsider the option of a voter approval tax rate election in the future. The adopted 2025-26 fiscal year budget, coupled with no VATRE is estimated to be a $3.3 million deficit.