Financial Impact Tab Facts

How the Debt Will be Issued and the Tax Increase Implemented

Should the bond election be approved, the project plans will be completed and the project will be bid.  Once the actual cost of the project is known the amount of debt needed to construct the project will be issued.  Should the cost not total the full $25.5 million, only the amount needed to construct the project will be issued.   

The estimated maximum tax rate increase needed for the proposed Fairview Municipal Complex bond proposition is $0.075 (7.5 cents) per $100 of assessed valuation. At the time the debt is issued, the actual tax rate needed to pay for the debt will be determined based on the actual tax base and based on the actual amount of debt that is issued. 

The Town Council has determined that the debt will be structured so that the full impact of any needed tax increase will be phased in over 3 years.  This is done by structuring the debt payments so that they are less for the first 2 years, requiring a lower tax rate to pay the debt those years, with the full cost and maximum tax rate reached the 3rd year.   Growth in the tax base will impact the actual tax rate needed to pay the debt.  

Currently the Town offers a $60,000 property value exemption to residents over 65.  Recognizing the impact this project would have on senior residents, the Town Council has agreed that the current senior property tax exemption of $60,000 would be increased to $73,000 at the time the increased taxes are implemented. In the chart located below are examples of the impact a property tax increase of 7.5 cents could potentially have on values. 

Financial Impact Tab Average Financial Impact Final Version

Property Tax Rate Comparison

The Town of Fairview is a full-service local government, which means that tax dollars are used to provide citizens with core government services such as police, fire, EMS, public works, parks, and other administrative services.  Compared to other full-service local governments in Collin County, the Town has historically had the lowest or one of the lowest property tax rates. The chart below compares the Town's 2016 property tax rate with other full-service local governments in Collin County. The chart also shows how a Town tax rate with a 7.5 cent increase would compare with those same local governments.

Bond Election FI Tab Rate Comp ChartWhy Now?

The Town Council's decision to ask voters to consider authorizing a maximum of $25.5 million in general obligation bonds for the construction of the Municipal Complex was the result of careful planning and thoroughly analyzing the financial impact to town taxpayers. The proposed municipal complex was programed early in Fairview's 10-year Capital Improvement Plan due to the current lack of adequate facilities.  The Town Council wanted to ensure that the funds that are expended would meet tomorrow's needs as well as today's needs.  The cost to add on to facilities in the future would be much more expensive to undertake. Construction inflation costs since planning efforts began in 2014 have increased by 19%.

 

Event calendar

 

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