• October 21, 2021
 Canutillo ISD: 2021 Bond expected to result in 0 Total Tax Rate Increase for taxpayers

Canutillo ISD: 2021 Bond expected to result in 0 Total Tax Rate Increase for taxpayers

If approved by the District’s voters, the 2021 Canutillo ISD Bond will address certain of the District’s most critical school facility needs with no expected increase to the total tax rate for the 2022-2023 tax year when compared to the current tax rates.

“This bond is a very unique opportunity for Canutillo ISD students,” said Superintendent of Schools, Dr. Pedro Galaviz. “Many people ask me how are you paying this debt but keeping the tax rate level? Due to the current economic and political climate, it places our District at an advantage so we can address the most critical infrastructure needs. Compared to last year, Canutillo taxpayers’ rate is currently lower. Not only did the board adopt a lower tax rate for this school year, but if voters approve this bond, they will not see an increase in their total tax rate for the upcoming year, according to district projections. Our trustees have been very mindful of not increasing the financial burden on Canutillo ISD residents.”

Recently, the Canutillo ISD Board of Trustees voted to reduce the total tax rate for the 2021 -2022 school year from $1.39 to $1.34, an average savings of $75 on property taxes for homes valued at $150,000.

Based on current projections, the District expects that the Canutillo ISD bond, if approved by the voters, would provide funds to allow the District to substantially modernize aging educational facilities without increasing the District’s total tax rate for the 2022-2023 tax year from the total tax rate for the 2021-2022 tax year.

Factors affecting such property tax rate projections include the following:

  • Canutillo ISD is benefiting from rapid growth in far west El Paso, adding millions to the district’s tax base.  According to the most recent projections available to the District, this residential and commercial expansion in far west El Paso is expected to continue through the next decade.  Of course, the growth in the tax base does come with additional demands to provide educational opportunities to thousands of more families who call the Canutillo ISD home.
  • Over the last several years, the District has reduced its level of outstanding debt, freeing up capacity for the 2021 bond.
  • Interest rates are still at historically low rates.  Assuming such rates continue to be low for a period of time following a successful election, the District would be in a position to address certain District school facility needs by issuing bonds at very favorable rates.

Additionally, property taxes on homesteads of persons sixty-five (65) years of age or older and the disabled are limited by state law.  Except for increases attributable to certain home improvements, the District is prohibited from increasing the total property tax on the homestead of persons sixty-five (65) years of age or older or of disabled persons above the amount of tax imposed in the year such homestead qualified for such exemption.

Officials say this freeze is transferable to a different homestead if a qualifying taxpayer moves and, under certain circumstances, is also transferable to the surviving spouse of persons sixty-five (65) years of age or older.  In addition, State law grants an additional $10,000 exemption of the appraised value of the homesteads of persons sixty-five (65) years of age or older and the disabled.

Some of the projects included in the 2021 bond are intended to meet the growing needs of far west El Paso, where hundreds of new families are moving into Canutillo ISD’s boundaries every year. While the bond will significantly modernize most of the district’s existing elementary, middle, and high school facilities, the bond will also support the construction of a new Alderete Middle School.

Public schools in Texas are mostly funded by the state and by local property tax revenue. School district property tax includes two separate rates that account for the district’s total tax rate.

The first is the Maintenance and Operations (M&O) tax rate that are revenues that go into a district’s general operating fund, which pays for salaries, supplies, utilities, insurance, equipment and other day-to-day expenses. The second is the Interest and Sinking tax rate (I&S) that funds debt repayment that finances a district’s facilities.

To schedule an informative presentation for your community, organization, or civic club, call 877-7482. To find out more information on the bond, click here.

For all things Canutillo ISD, click here; for our previous coverage, click here.

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