Bond Information

Tax Impact/Bond Financing

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 vote on the Bond issue at a cost of $7,000,000. 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 City of Leon Valley financed $7,000,000 of general obligations bonds for the construction of the Public Safety and Administrative Support Facility.

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.