Bond Information

Approximate Cost to Homeowner

The Leon Valley City Council ordered a Special Bond Election, held in May 2012, to allow the qualified voters of the City of Leon Valley to consider the following proposition ballot language:

“THE ISSUANCE OF NOT TO EXCEED $7,000,000 OF THE CITY OF LEON VALLEY TEXAS GENERAL OBLIGATION BONDS FOR DESIGNING, ACQUIRING, CONSTRUCTING, IMPROVING, RENOVATING, DEMOLISHING, EXPANDING, AND EQUIPPING A PUBLIC SAFETY AND SUPPORT SERVICES COMPLEX.”

The bond was approved by a margin of 66%.

To pay for the bond program, it is projected the tax rate for debt service will increase by approximately $0.0497 cents per $100 valuation, based on conservative interest rate assumptions and no growth in the City’s Taxable Assessed Valuation.

The table below illustrates the projected annual and monthly tax impact on the homes valued as shown.

Projected Home Value
(After any Exemptions)

Projected Annual Impact
on Leon Valley Tax Payers

Projected Monthly Impact
on Leon Valley Tax Payers

$100,000

$49.73

$4.14

$125,000

$62.16

$5.18

$150,000

$74.59

$6.22

$200,000

$99.45

$8.29

$250,000

$124.31

$10.36

 

The median taxable value of a home in Leon Valley is $106,800.

The City of Leon Valley recently completed financing of $7,000,000 of general obligations bonds for the construction of the Public Safety and Administrative Support Facility. At the May City Council meeting, the City Council directed city management and its financial advisors to monitor financial markets for favorable conditions to finance the project. The City Council’s intent was to generate savings in debt requirements with lower interest rates. The financial markets for municipal bonds have been favorable to the City’s benefit; therefore, the Bond transaction was held on June 27, 2012.

The City received a remarkable 2.49% interest on the bond sale and was able to save $1.2 million dollars in interest charges. Also important is Standard & Poors (S&P) Investment Services rated the City’s municipal bonds at ‘AA’. This rating is only one level below ‘AA+’ which is typically S&P’s highest rating for small municipalities. Although there were many variables associated with the strong credit rating, a major component for the upgrade is Leon Valley’s strong management practices and financial conditions. The City’s credit rating contributed significantly to the savings generated by the bond financing interest rate.

ESPANOL