The following policies shall apply to determinations of bond allowable and annual tax funds available for debt retirement.

1. (1) All districts, authorities, and political subdivisions, other than cities, towns, counties, hospital districts, and limited tax school districts, for which special policy provisions are herein made, should not incur gross tax obligation debt service requirements (bond allowable) in excess of two-thirds of the maximum tax rate permitted by law for such district, authority, or political subdivision to levy.
2. (2) General law cities of under 5,000 population shall have a total tax allowable of $1.50 per $100 valuation, and a bond allowable of $1.00 per $100 valuation.
3. (3) Home rule cities and general law cities of over 5,000 population shall have a total tax allowable of $2.50 and shall have a bond allowable of $1.50 per $100 valuation (unless city charter provides less).
4. (4) Limited tax school districts existing prior to the enactment of the Texas Education Code and which have not adopted the Texas Education Code, §20.04(b)(1), or Texas Civil Statutes, Article 2784e-1, shall have a bond allowable of $.50 and those operating under Texas Education Code, §20.04(b)(2), shall have a bond allowable of $1.00.
5. (5) Unlimited tax school districts are limited to 10% of their assessed taxable value according to the last approved tax rolls in the amount of debt which they can incur.
6. (6) Counties have a total tax available of $.80 per $100 valuation and shall have a bond allowable of $.40 per $100 valuation. (Exceptions are taxes of counties afforded benefits of Texas Constitution, Article 9, §11, and Article 11, §9. Also, additional allowable of one-half of the tax rate voted will be made for debt service for "further maintenance of public roads" authorized by the Texas Constitution Article 8, §9, permitting a maximum additional tax of $.15 per $100 as may be authorized by the legislature.)
7. (7) Up to two-thirds of hospital district taxes for debt service will be allowed except for higher rates on a showing of good cause.
8. (8) All the allowables above shall be computed based on 90% collection.
9. (9) As used above, "total tax" means the sum of taxes at the prescribed rate produced on $100 assessed valuation authorized by the constitution, statute, or charter.
10. (10) As used above, "bond allowable" means the portion of the total tax available for debt service. The allowable amounts apply to all tax-supported indebtedness, including bonds, warrants, certificates of obligation or other contractual indebtedness, whether a direct or indirect, a certain or contingent, obligation. Accordingly, combination tax and revenue securities will have the potential tax indebtedness applied to the above coverage limitation.

Source Note:The provisions of this §53.5 adopted to be effective January 1, 1976.