Recent legislative action has mandated the publication of this statement. The statement relates only to the maintenance and operations (M&O) portion of the tax rate. It does not address the interest and sinking (I&S) portion of the tax rate.  I&S taxes are used for payment of bonds authorized by the voters of the District.

The Board of Trustees has adopted a total tax rate of $1.5925, of which $1.33 is for M&O and $0.2625 is for I&S.  The M&O portion of the tax is decreased by the statutory $0.17 as a result of House Bill 1.  The Board of Trustees elected not to access the additional 4 cents it had available to them under the House Bill.   The I&S portion of the total tax rate will decrease by $0.0125.  The total tax rate will decrease by 18.25 cents, the largest tax rate decrease in Bexar County.

Based on the information in our "Notice of Public Meeting to Discuss Budget and Proposed Tax Rate" published in the San Antonio Express-News on August 12, 2006, the average taxable value of a residence in the district last year was $110,077. This year, the average taxable value of a residence is $120,327. The decrease in the total tax rate, offset by the increase in taxable value, will reduce taxes on the average value home by $37.66 per year.

The M&O rate of $1.33 will support the General Fund budget. The 2006-07 Budget includes a General Fund budget of $548,216,804 in expenditures, a food service budget of $30,889,838 and a debt service budget of $82,026,853 in expenditures. Total estimated expenditures for all budgets are $878,303,390.

The I&S rate will support the $82 million debt service requirement. Debt service requirements are also supported by $21million of the state's existing debt allotment and instructional facilities allotment programs.

The adopted tax rate is 8.2 cents below projections when voters authorized the $439 million bond program in February 2004.