CAD(LEGAL) - APPROPRIATIONS AND REVENUE SOURCES: BOND ISSUES

Tax Bonds and Maintenance Tax

General Obligation Bonds

Use of Unspent Proceeds

  1. The specific purposes are accomplished or abandoned; and
  2. A majority of the votes cast in an election held in the political subdivision approve the use of the proceeds for the proposed purpose.

Capital Appreciation Bonds

  1. The bonds have a scheduled maturity date that is not later than 20 years after the date of issuance;
  2. The governing body of the political subdivision has received a written estimate of the cost of the issuance, including:
    1. The amount of principal and interest to be paid until maturity;
    2. The amount of fees to be paid to outside vendors, including vendors who sell products to be financed by the bond issuance;
    3. The amount of fees to be paid to each financing team member; and
    4. The projected tax impact of the bonds and the assumptions on which the calculation of the projected tax impact is based;
  3. The governing body of the political subdivision has determined in writing whether any personal or financial relationship exists between the members of the governing body and any financial adviser, bond counsel, bond underwriter, or other professional associated with the bond issuance. The governing body of a political subdivision that makes a determination that a personal or financial relationship exists shall submit the determination to the Texas Ethics Commission; and
  4. The governing body of the political subdivision posts prominently on the political subdivision's internet website and enters in the minutes of the governing body:
    1. The total amount of the proposed bonds;
    2. The length of maturity of the proposed bonds;
    3. The projects to be financed with bond proceeds;
    4. The intended use of bond proceeds not spent after completion of the projects identified in paragraph c;
    5. The total amount of the political subdivision's outstanding bonded indebtedness at the time of the election on the bonds, including the amount of principal and interest to be paid on existing bond indebtedness until maturity;
    6. The total amount of the political subdivision's outstanding bonded indebtedness, including the amount of principal and interest to be paid until maturity; and
    7. The information received under item 2 and determined under item 3.

Gov't Code 1201.0245(a)–(d), (g)

Exclusions

  1. Items more regularly considered maintenance items, including replacement HVAC units, upgraded plumbing, or similar items; or
  2. Transportation-related items, including buses.

Gov't Code 1201.0245(e), (j)

Unspent Proceeds

Extension of Maturity Date

Exception
  1. The extension of the maturity date will decrease the total amount of projected principal and interest to maturity; or
  2. The political subdivision is a school district and:
    1. The maximum legally allowable tax rate for indebtedness has been adopted; and
    2. TEA certifies in writing that the solvency of the permanent school fund's bond guarantee program would be threatened without the extension.

Gov't Code 1201.0245(i)

Credit Agreements

Limits

  1. Twenty-five percent of the sum of:
    1. The aggregate principal amount of all district debt payable from ad valorem taxes that is outstanding at the time the bonds are issued; and
    2. The aggregate principal amount of all bonds payable from ad valorem taxes that have been authorized but not issued;
  2. Twenty-five million dollars, in a district that has at least 3,500 but not more than 15,000 full-time students or the equivalent; or
  3. Fifty million dollars, in a district that has more than 15,000 full-time students or the equivalent.

Education Code 130.1221

Elections

Call for Election

Notice of Election

Posting Notice of Election

Election Order

  1. The proposition language that will appear on the ballot;
  2. The purpose for which the debt obligations are to be authorized;
  3. The principal amount of the debt obligations to be authorized;
  4. That taxes sufficient to pay the principal of and interest on the debt obligations may be imposed;
  5. A statement of the estimated tax rate if the debt obligations are authorized or of the maximum interest rate of the debt obligations or any series of the debt obligations, based on the market conditions at the time of the election order;
  6. The maximum maturity date of the debt obligations to be authorized or that the debt obligations may be issued to mature over a specified number of years not to exceed the maximum number of years authorized by law;
  7. The aggregate amount of the outstanding principal of the political subdivision's debt obligations as of the date the election is ordered;
  8. The aggregate amount of the outstanding interest on the debt obligations of the political subdivision as of the date the election is ordered, which may be based on the political subdivision's expectations relative to variable rate debt obligations; and
  9. The ad valorem debt service tax rate for the political subdivision at the time the election is ordered, expressed as an amount per $100 valuation of taxable property.

Election Code 3.009

Posting the Election Order

Propositions

  1. A general description of the purposes for which the debt obligations are to be authorized;
  2. A plain language description of the single specific purposes for which the debt obligations are to be authorized;
  3. The total principal amount of the debt obligations to be authorized; and
  4. That taxes sufficient to pay the principal of and interest on the debt obligations will be imposed.

Gov't Code 1251.052(a)–(a-1); Election Code 52.072(f)

Voter Information Document

  1. The language that will appear on the ballot;
  2. The following information formatted as a table:
    1. The principal of the debt obligations to be authorized;
    2. The estimated interest for the debt obligations to be authorized;
    3. The estimated combined principal and interest required to pay on time and in full the debt obligations to be authorized; and
    4. As of the date the political subdivision adopts the debt obligation election order:
      1. The principal of all outstanding debt obligations of the political subdivision;
      2. The estimated remaining interest on all outstanding debt obligations of the political subdivision, which may be based on the political subdivision's expectations relative to the interest due on any variable rate debt obligations; and
      3. The estimated combined principal and interest required to pay on time and in full all outstanding debt obligations of the political subdivision, which may be based on the political subdivision's expectations relative to the interest due on any variable rate debt obligations;
  3. The estimated maximum annual increase in the amount of taxes that would be imposed on a residence homestead in the political subdivision with an appraised value of $100,000 to repay the debt obligations to be authorized, if approved, based upon assumptions made by the governing body of the political subdivision; and
  4. Any other information that the political subdivision considers relevant or necessary to explain the required information.
  1. The amortization of the political subdivision's debt obligations, including outstanding debt obligations and the proposed debt obligations;
  2. Changes in estimated future appraised values within the political subdivision; and
  3. The assumed interest rate on the proposed debt obligations.

Canvass

Political Advertising

  1. The officer or employee knows is false; and
  2. Is sufficiently substantial and important as to be reasonably likely to influence a voter to vote for or against the measure.

Newsletters

  1. It includes no more than two pictures of a public officer per page and if the total amount of area covered by the pictures is no more than 20 percent of the page on which the pictures appear;
  2. It includes no more than eight personally phrased references (such as the public officer's name, "I", "me", "the city council member") on a page that is 8 1/2" x 11" or larger, with a reasonable reduction of the number of such personally phrased references in pages smaller than 8 1/2" x 11"; and
  3. When viewed as a whole and in the proper context:
    1. Is informational rather than self-promotional;
    2. Does not advocate passage or defeat of a measure; and
    3. Does not support or oppose a candidate for nomination or election to a public office or office of political party, a political party, or a public officer.

Refunds

Gov't Code 1207.002; Education Code 130.122(c)

Authorized Unissued Bonds

North Central Texas College

CAD(LEGAL)-LJC

UPDATE 37

DATE ISSUED: 12/16/2019