ROISD lowers tax rate, Wilmer increases theirs

RED OAK

A Special Meeting of the Red Oak ISD School Board was on Aug. 29 was called due to the Texas Tax Code 26.05(b) which requires a supermajority vote for a tax rate that exceeds the sum of the no-new-revenue M&O tax rate and the current debt rate.

At the Aug. 18 board meeting, only five members were present and the vote to approve the tax rate was 4-1.

However, a supermajority vote requires 60-percent (5 of 7) of all members, not just members present, to be in favor of the order, ordinance, or resolution.

At the Aug. 29, meeting, required for the tax rate to be effective for this year, the motion for the tax rate was approved 6-1.

Overall, the ROISD tax rate has been reduced by more than 19-percent over the past four years.

This year, ROISD has lowered both the Maintenance and Operations tax rate which pays for all salaries, educational materials, and district operations and the Interest and Sinking tax rate which pays for debt.

The ROISD total tax rate was reduced from last year’s rate of $1.3256 to $1.2910 per $100 of certified property value.

The l&S reduction was established following the certified property values provided by Ellis County in July and concerns from citizens.

The required motion states the property tax rate be increased by the exact percentage of the proposed tax rate over the no-new-revenue rate, even if it is a reduction over the previous year.

The M&O NNR tax rate is 16.77-percent less ($.78476) than the proposed rate ROISD M&O rate of $.9429, which was reduced from $.9603 in 21-22.

While the District will receive more in taxes from local property value increases, even with a reduced ROISD tax rate, the local increase is proportionately matched by a reduction in state funding.

Red Oak ISD, in the end, does not receive a windfall of more funding based on local taxes increasing. In short, the more community taxpayers pay (approx. addition of $2M), the less the state gives the district (approx. reduction of $2M).

The approved M&O tax rate is at the lowest compressed rate authorized by TEA.

Any further reductions would result in additional loss of state funding, and the inability to adjust the M&O for increases in salaries, additional staffing needs, or other expenses.

WILMER

The city of Wilmer approved an agenda item at last week’s city council meeting to increase the property tax by the adoption of a tax rate of 0.498859, which is effectively a 20.67 percent increase in the tax rate.

The ordinance that passed established the city’s ad valorem tax rate as $0.498859, which is the voter-approval tax rate.

There were no residents at last week’s council meeting speaking for or against the adoption of the proposed tax rate prior to council’s approval.

According to staff notes, this year’s proposed tax rate exceeds the no-new-revenue tax rate.

The vote on the ordinance setting the tax rate must be a record vote and 60% of the governing body must vote in favor of the adoption of the tax rate.

The item passed in a 4–0 vote at the September 1 city council meeting.

The proposed tax rate of $0.498859 on each one hundred dollars ($100.00) assessed value of taxable property to be apportioned and distributed will be done as follows at $0.337157 for the purpose of maintenance and operations, and $0.161702 for interest and sinking fund requirements.