According to a board report made by DSISD's financial advisor, using assumptions as of March 25, 2021, the district will have the capacity -- with voter authorization -- to issue approximately $218.7 million of new bonds in 2022 without increasing the current interest & sinking (“I&S”) fund tax rate of 35 cents. Any decisions related to bond packages that are presented to voters are made by the board following a process of long-range planning, then work by a Bond Steering Committee to develop a recommendation.
This projected debt capacity is largely a function of the following:
- Rapid property value growth in the district (additional growth beyond projections, if any, could create additional capacity);
- Historically low interest rates in the municipal bond market;
- The refinancing of existing debt (without extending final maturities) creating additional room under tax rate targets; and
- The district has maintained a stable I&S tax rate of 35 cents since tax year 2016.