GOOD EVENING IT IS 5:30 ON THURSDAY, SEPTEMBER THE 19TH, 2024.
[B. CALL TO ORDER ]
[00:00:09]
I HEREBY CALL THIS MEETING OF THE ROUND ROCK INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES PUBLIC HEARING ON THE ROUND ROCK INDEPENDENT SCHOOL DISTRICT PROPOSED 2024-2025 TAX RATE TO ORDER.TONIGHT IN ATTENDANCE WE HAVE ALL SEVEN TRUSTEES, A QUORUM IS PRESENT.
PLEASE STAND FOR THE PLEDGE, AND WHILE YOU'RE DOING THAT, I AM THRILLED TO ANNOUNCE THAT IN RECOGNITION OF DEAF AWARENESS MONTH, STUDENTS FROM THE CAPITAL AREA REGIONAL DAY SCHOOL PROGRAM FOR THE DEAF AT MCNEIL HIGH SCHOOL WILL LEAD THE PLEDGE.
THANK YOU SO MUCH FOR BEING HERE AND WELCOME.
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.
HONOR THE TEXAS FLAG, I PLEDGE ALLEGIANCE TO THEE, TEXAS, ONE STATE UNDER GOD, ONE AND INDIVISIBLE.
THANK YOU AGAIN SO MUCH, STUDENTS, FOR BEING HERE TONIGHT.
ALL RIGHT. OUR NEXT ITEM ON THE AGENDA IS PUBLIC COMMENT.
[D. PUBLIC COMMENTS TO AGENDA ITEM E. ONLY ]
WE ASK THAT CONCERNS OR COMPLAINTS REGARDING SPECIFIC INDIVIDUALS NOT BE RAISED IN THIS PUBLIC FORUM.THE BOARD REQUESTS THAT COMMENTS, WHETHER POSITIVE OR NEGATIVE, BE COURTEOUS AND RESPECTFUL.
AS A SECOND REMINDER, THE BOARD ADOPTED AN ANTI-HATE RESOLUTION ON JANUARY 20TH, 2022, WHERE THE BOARD REAFFIRMED ITS COMMITMENT TO THE WELL-BEING AND SAFETY OF ALL PEOPLE, REGARDLESS OF RACE, COLOR, NATIONAL ORIGIN, RELIGION, SEX, GENDER IDENTITY, GENDER EXPRESSION, SEXUAL ORIENTATION, DISABILITY, AGE, OR POLITICAL BELIEFS, AND STANDS AGAINST SPEECH THAT INCITES HATRED AND VIOLENCE TOWARDS ANY PERSON.
PLEASE NOTE WHILE THE PUBLIC DOES HAVE THE RIGHT TO SPEAK, THAT RIGHT IS NOT UNLIMITED.
42.01 42.02 AND 42.05 AND TEXAS EDUCATION CODE 37.105.
NO AUDIENCE MEMBER OR SPEAKER WILL BE PERMITTED TO ENGAGE IN ANY CONDUCT THAT IS DISRUPTIVE OR THREATENING TOWARD ANY SPEAKER OR OTHER PERSON, OR TO VIOLATE THE PRIVACY RIGHTS OF ANOTHER PERSON.
THE BOARD SHALL NOT TOLERATE DISRUPTION OF THE MEETING BY MEMBERS OF THE AUDIENCE.
IF, AFTER ONE ADDITIONAL WARNING FROM THE PRESIDING OFFICER, ANY INDIVIDUAL CONTINUES TO DISRUPT THE MEETING BY HIS OR HER WORDS OR ACTIONS, THE PRESIDING OFFICER WILL REQUEST ASSISTANCE FROM LAW ENFORCEMENT OFFICIALS TO HAVE THE INDIVIDUAL REMOVED FROM THE MEETING.
THEREFORE, BOARD MEMBERS MAY NOT DISCUSS THE COMMENTS OF SPEAKERS.
EACH SPEAKER WILL BE GIVEN TWO MINUTES TO ADDRESS THE BOARD.
TRUSTEE HARRISON WILL BE THE DESIGNATED TIMEKEEPER AND THE FIRST SPEAKER IS DAVID SCHMIDT SPEAKING ON AGENDA ITEM E1 AND YOU DO LIVE IN THE COMMUNITY.
BEFORE I SPEAK THIS EVENING AND YOU START MY TIME, I'D LIKE A CLARIFICATION.
THIS IS A PUBLIC HEARING, NOT A BOARD MEETING.
I DON'T SEE HOW THE RULES FOR A BOARD MEETING APPLY AT A PUBLIC HEARING.
OKAY. WE CANNOT HAVE THAT DISCOURSE.
THANK YOU FOR THAT CLARIFICATION.
TRUSTEE AMY WEIR MAY HAVE BEEN AT THAT MEETING AS A PTA MOM WITH OTHER PTA MOMS FROM THE COMMUNITY WHO WERE ADVOCATING FOR THE DEFEAT OF THE 2017 BOND. SIR YOU HAVE TO STAY ON THE TAX RATE.
BRING IT BACK TO THE TAX RATE.
REFERRING TO THEMSELVES AS THE BOND GIRLS.
[00:05:06]
WHAT ROLE DOES THE 2019 SENATE BILL, SB THREE, PLAY IN CONTROLLING THE AMOUNT OF THE PROPOSED TAXES? WHAT ROLE DID THE CHANGES GOVERNOR ABBOTT MADE FOR THE PROPERTY TAX RELIEF PLAY? THE SUPERINTENDENT IS QUOTED AS SAYING, WE CAN PASS UP TO $1 BILLION DOLLAR BOND AND STILL LOWER THE TAX RATE.WHAT HE FAILS TO SAY IS THAT PASSING THIS BOND WILL MORE THAN DOUBLE OUR DEBT, ABOUT $20,000 PER STUDENT TO NEARLY $51,000 PER STUDENT. IN NOVEMBER OF 2023, THE DISTRICT PUT A BALLOT MEASURE FORWARD TO INCREASE PROPERTY PROPERTY TAXES PROP A [INAUDIBLE] VOTER APPROVED TAX RATE.
IT'S FUNNY TO SEE HOW THE WEALTHIEST AMONG US ARE EAGER TO SEE OUR TAXES INCREASE.
PARENTS WHO KNOW VOTE NO TO THE PROPOSED TAX RATE AND THE $1.3 BILLION OF NEW TAXES BECAUSE THAT TAX INCREASE IS UNAFFORDABLE AND UNJUSTIFIED FOR A DESTINATION DECLINATION DISTRICT.
THE DISTRICT'S OWN DEMOGRAPHIC REPORT FROM ZONDA EDUCATION FOURTH QUARTER 2023 SHOWS ON PAGE 25, FOUR CONSECUTIVE YEARS OF YEAR OVER YEAR ENROLLMENT DECLINES.
THE MATH PROVES THE DISTRICT IS LOSING ENROLLMENT OF SCHOOL AGED CHILDREN AT A RATE THREE TIMES HIGHER THAN THE SMALL DROP IN SCHOOL AGE CHILDREN WITH HOME SCHOOLS AND CHARTER AND PRIVATE SCHOOLS TAKING MORE STUDENTS.
AND THIS, IN SPITE OF THE DISTRICT'S EXPENSIVE ENROLLMENT ADVERTISING CAMPAIGN BEGGING FOR TRANSFERS OUTSIDE THE DISTRICT, THAT IS FROM AREAS NOT PAYING ARE UNAFFORDABLE AND UNJUSTIFIED TAXES.
OF COURSE, THAT WILL LEAD TO THE SELF-SERVING DISTRICT BUREAUCRATS TO DEMAND STILL MORE TAX INCREASES, AS THEY DID ONLY A YEAR AGO WITH THE DISHONEST VATR ELECTION, WHICH ILLEGALLY CLAIMED THAT $19 MILLION TAX REVENUE INCREASE WAS AN AMOUNT OF $0.
EVERYONE PAYS A HIGH TAX BILL, INCLUDING RENTERS, WHICH THE BOND ELECTION WOULD AUTHORIZE BY LAW THE PROPERTY TAX INCREASE YOU SEE ON THE NOVEMBER BALLOT AUTHORIZES ANOTHER $1.3 BILLION IN NEW TAXES, WHICH WE MUST PAY ON TOP OF $830 MILLION STILL OWED FOR DISTRICT FACILITIES THAT ARE ONLY 70% UTILIZED DUE TO DECLINING ENROLLMENT.
VOTE NO TO THE UNAFFORDABLE UNJUSTIFIED BOND INCREASE OF RENTS AND TAXES IN NOVEMBER.
SEE VOTENOBONDS.COM FOR MORE INFORMATION.
THAT CONCLUDES PUBLIC COMMENT.
[E. DISCUSSION ITEM ]
AND I WILL TURN IT OVER TO MR. COVINGTON TO GET US STARTED.MADAM CHAIR, SUPERINTENDENT AND BOARD OF TRUSTEES, TONIGHT WE ARE HERE AT THE PUBLIC HEARING ON SEPTEMBER 9TH, 2024 TO ADOPT THE TAX RATE FOR TAX YEAR 2024. OUR TOTAL TAX RATE IS BROKEN OUT INTO TWO CATEGORIES M&O AND I&S DEBT SERVICES.
SO LET'S EXAMINE BOTH PROPOSED RATES FOR TAX YEAR 24.
FIRST LET'S LOOK AT THE M&O TAX RATE.
LAST YEAR, OUR MCR WAS 0.6410 FOR THE TAX YEAR 2023.
BACK IN JUNE, WHEN WE ADOPTED THE BUDGET, THE MCR WAS 0.6169 AND AS YOU CAN SEE, THE PROPOSED MAXIMUM COMPRESSION RATE FOR TAX YEAR 2024 IS NOW 0.6301.
SO YOU SEE THE CHANGES IN THE MAXIMUM COMPRESSION RATE.
BUT WHAT DOES THAT MEAN? THE MAXIMUM COMPRESSION RATE IS ADJUSTED BASED ON THE PROPERTY VALUE CHANGES IN THE DISTRICT.
IF THE PROPERTY VALUE INCREASES, THE MAXIMUM COMPRESSION RATE DECREASES.
THE MCR IS USED TO LOWER THE TAX RATE FOR THE CITIZENS OF THE DISTRICT.
[00:10:06]
SO THE STATE INCREASED THE MCR FROM THAT 0.6169 TO 0.6301.BUT WHEN COMPARED TO LAST YEAR'S MCR, IT IS A DECREASE OF 0.0109.
NEXT YOU SEE OUR GOLDEN PENNIES, WHICH IS THE TIER TWO.
THOSE REMAIN THE SAME AT EIGHT PENNIES.
SO OUR TOTAL M&O TAX RATE IS 0.7101 PROPOSED FOR TAX YEAR 2024, COMPARED TO 0.7210 IN TAX YEAR 2023, AS AN OVERALL 0.0109 DECREASE.
THE OTHER CATEGORY OF OUR TOTAL TAX RATE IS I&S OR DEBT SERVICE FUND.
WE ARE PROPOSING TO SET THE I&S TAX RATE AT 0.1830 FOR TAX YEAR 24.
THIS IS A REDUCTION OF 1.5 PENNIES FROM THE TAX YEAR 2023 RATE, AND THE ADOPTED RATE OF 0.1980.
AT THIS RATE, OUR TAX COLLECTIONS WOULD DECREASE FROM THE PROJECTED OF THE $111,865 TO THE $93,828. THAT IS A REDUCTION OF APPROXIMATELY $18 MILLION.
OUR STATE REVENUE WILL INCREASE FROM THE $3.3 MILLION TO THE $5 MILLION.
GOING FURTHER DOWN THE CHART, YOU SEE OUR TOTAL REVENUE PROJECTED, AS AMENDED FOR THE BUDGET FOR 24-25 IT DECREASES FROM $118,215 TO $101,828.
OUR EXPENDITURES FOR PRINCIPAL PAYMENTS AND INTEREST PAYMENTS REMAIN THE SAME.
AND SO OUR TOTAL EXPENDITURES FOR THE ADOPTED BUDGET COMPARED TO THE AMENDED BUDGET, YOU SEE THE CHANGE FROM $118,000 TO $101,808, AND THE SURPLUS DROPPED FROM $207,000 TO $20,000.
AND YOU ASK, HOW ABOUT THAT DEFEASANCE PAYMENT? IF YOU LOOK ON TO THE RIGHT, YOU SEE WHERE OUR I&S FUND BALANCE IS BASED ON CURRENT FUND BALANCE OF $44 MILLION, PROJECTED REVENUE OF $101 MILLION, YOU GET $146,000.
OUR FEBRUARY INTEREST PAYMENT IS $14.6 MILLION AND BOND FEES OF $5.2.
OUR PROJECTED FUND BALANCE IN JUNE OF 2025 WILL BE $126 MILLION, SO IF THE BOARD CHOOSES, WE CAN STILL MAKE THE $25 MILLION DEFEASANCE PAYMENT AS PROJECTED IN THE 24-25 ADOPTED BUDGET.
THAT DECISION DOES NOT HAVE TO BE MADE TONIGHT.
THE DEFEASANCE PAYMENT IS A DECISION THAT WE WILL BRING BACK IN THE SPRING.
NOW LET'S LOOK AT THE TAX YEAR 24 TOTAL TAX RATE AND HOW IT COMPARES TO TAX YEAR 23 RATE.
THAT IS A .0109 DECREASE IN THE M&O TAX RATE.
THE INTEREST AND SINKING FUND SINKING FUND RATE REDUCED FROM 0.1980 TO 0.18304 A .0150 REDUCTION IN THE I&S TAX RATE.
SO OUR TOTAL TAX RATE WOULD DROP FROM 0.9190 TO 0.8931, WHICH IS A DECREASE IN THE TAX RATE OF 0.0259. OUR VOTER APPROVED TAX RATE FOR INFORMATION PURPOSES IS 0.9205.
LET'S LOOK AT HOW WE COMPARE TO OUR SURROUNDING DISTRICTS.
IN TAX YEAR 2023, WE WERE THE SECOND LOWEST TAX RATE, WITH AUSTIN ISD BEING AT 0.8595 AND ROUND ROCK AT 0.9190.
BUT FOR TAX YEAR 2024, WITH OUR REDUCTION OF THE 2.59 PENNIES, OUR TAX RATE WILL BE 0.8931 AND IT WILL BE THE LOWEST OF ALL THE SURROUNDING DISTRICTS.
BUT HOW DOES THAT LOOK AS A TAX LEVY FOR RESIDENTS? ACCORDING TO WILLIAMSON COUNTY CAD, THE AVERAGE PROPERTY TAXABLE VALUE OF HOMES IN ROUND ROCK ISD INCREASED BY AN AVERAGE OF 2%. SO BASED ON THOSE CALCULATIONS, IF YOU HAD A $750,000 HOME IN 2023 TAXABLE VALUE, 2% TAKES THE VALUE UP
[00:15:03]
TO $765,000.AND THIS IS AFTER THE HOMESTEAD.
YOUR TOTAL TAX LEVY WILL GO DOWN BY $60.28 FOR A $500,000 HOME SAME TYPE CALCULATION, YOUR TAX LEVY WILL GO DOWN ABOUT $40.19.
IN 2024, IT WILL BE $383,201, WHICH IS A 2%.
AND SO, AN AVERAGE HOME IN ROUND ROCK ISD WILL GO TAX LEVY WILL DECREASE BY $19.79.
AND THOSE ARE ALL SAVINGS TO ALL OUR RESIDENTS.
LET'S LOOK AT WHAT THE BOARD SUGGESTED MOTIONS AND ORDINANCE NEEDS TO BE.
ACCORDING TO TEXAS ACCORDING TO TEXAS TAX CODE 26.05B, WHEN THE PROPOSED M&O TAX RATE WOULD GENERATE MORE REVENUE THAN THE PRECEDING YEAR, OR THE PROPOSED TAX RATE EXCEEDS THE TOTAL NO NEW REVENUE TAX RATE SPECIFIC LANGUAGE MUST BE USED IN BOTH THE TAX RATE ORDINANCE AND THE ADOPTION MOTION.
SO FOR THE ORDINANCE, IT STATES THAT IN BOLD LETTERS WE MUST INCLUDE THE FOLLOWING STATEMENTS.
THE TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE, AND THE TOTAL TAX RATE THAT THE TAX RATE WOULD EFFECTIVELY BE RAISED BY 0.94%, AND WILL RAISE TAXES FOR THE MAINTENANCE AND OPERATIONS ON $100,000 HOME BY APPROXIMATELY $6.60.
SO, TO PROVE THOSE STATEMENTS, I PROVIDED THE FOLLOWING CALCULATIONS FOR TAX YEAR 23 OUR CERTIFIED PROPERTY VALUES WAS $51.2 BILLION FOR TAX YEAR 2024 THEY ARE $52.1 BILLION TIMES EACH OF THOSE M&O TAX RATES FROM THOSE YEARS YOU WILL SEE THAT BASED ON THAT CALCULATION, WE WILL TAKE IN $1.28 MILLION MORE IN REVENUE BASED ON THE M&O TAX RATE.
THE PROPOSED M&O TAX RATE IS 0.7101, A DIFFERENCE OF 0.0066.
THAT'S THE TAX RATE WILL EFFECTIVELY INCREASE BY 0.94%.
THE TAX INCREASE ON $100,000 HOME WHEN YOU LOOK AT THE NO NEW REVENUE RATE, THE PROPOSED M&O TAX RATE, THE DIFFERENCE OF THE .0066 ON $100,000 HOME RESULTS IN THE $6.60 AS OUTLINED IN THE TWO STATEMENTS.
AS FAR AS THE MOTION FOLLOWING THE SAME TEXAS TAX CODE 26.05B I RECOMMEND THAT THE BOARD MAKES THE FOLLOWING MOTION.
ONE I MAKE A MOTION TO ADOPT THE RESULTING TAX.
THIS IS A RESOLUTION SETTING TAX RATE, WHICH INCLUDES A MAINTENANCE AND OPERATIONS RATE OF 0.7101 PER $100 OF TAXABLE ASSESSED VALUATION, AND AN INTEREST AND SINKING FUND RATE OF 0.1830 OF $100 OF TAXABLE ASSESSED VALUE FOR OVERALL TAX RATE OF 0.893141 PER $100 OF TAXABLE ASSESSED VALUATION.
THE SECOND MOTION BEING THAT I MOVE THAT THE BOARD APPROVE THE PROPERTY TAX RATE, BE INCREASED BY THE ADOPTION OF A TAX RATE OF 0.8931, WHICH IS EFFECTIVELY A -0.23% INCREASE IN THE TOTAL TAX RATE.
SO IF YOU LOOK AT THE CALCULATIONS BELOW, YOU'LL SEE THE TOTAL NO NEW REVENUE RATE IS 0.8952.
AND OUR PROPOSED TAX RATE TOTAL IS 0.8931, WHICH IS A DIFFERENCE OF 0.0021, WHICH IS THE -0.23%.
MADAM CHAIR, THAT IS WHAT I PROPOSE FOR THE TAX RATE FOR THE 24 FOR ROUND ROCK ISD.
TRUSTEES AS A REMINDER, THIS IS JUST A DISCUSSION ITEM SINCE IT'S A PUBLIC HEARING.
SO THERE'LL BE NO MOTIONS MADE DURING THIS.
WHEN WE GET TO THE NEXT BOARD MEETING, ITEM I1 IS WHERE WE WILL ADDRESS MOTIONS FOR OUR TAX RATE.
DO I HAVE ANY QUESTIONS FOR MR. COVINGTON OR ADMINISTRATION BASED ON THE PRESENTATION THAT WE JUST SAW? TRUSTEE WESTON.
SO OBVIOUSLY, THE PUBLIC DOES NOT VOTE TO SET THE TAX RATE IN ROUND ROCK ISD, THE BOARD DOES.
SO CAN YOU JUST CLARIFY WHAT THAT MEANS? THAT IS A CALCULATION THAT IS DONE BY WILSON COUNTY CAD AS TO WHAT OUR VOTER APPROVED TAX RATE WOULD BE BASED ON THE PROPERTY VALUES HERE IN
[00:20:08]
ROUND ROCK ISD.WHAT DO YOU MEAN? VOTERS DON'T SET THE TAX RATE IN THE SCHOOL DISTRICT, SO WHAT DOES THAT MEAN? IT HAS TO DO WITH THE VATR THAT THEY APPROVED VIA VOTE.
YES. IF IF WE WERE TO ADOPT THE TAX RATE, THAT'S HIGHER THAN WHAT THE CALCULATED VOTER APPROVED TAX RATE IS, THERE'S SPECIFIC THINGS THAT WILL BE INVOLVED IN SETTING THE TAX RATE.
BUT BEING THAT OUR TAX RATE THAT WE'RE PROPOSING IS BELOW THAT 0.9205 THERE'S NOT A PARTICULAR VOTE THAT'S REQUIRED. OKAY.
AND THEN ON SLIDE 11, NO SLIDE 12. THE FIRST THERE'S TWO MOTIONS WRITTEN HERE, BUT THEY SEEM TO KIND OF CONTRADICT EACH OTHER.
SO IS IT THAT BECAUSE THEY'RE BECAUSE YOU GUYS ARE PROPOSING AN I&S RATE THAT'S HIGHER THAT IT CHANGES THAT STATEMENT? BECAUSE NUMBER ONE JUST PERTAINS TO MAINTENANCE AND NOT THE M&O RATE.
BUT THEN NUMBER TWO IS THAT THAT'S THE OVERALL M&O AND I&S.
THAT'S CORRECT. JUST FOR CLARIFICATION.
MOTION ONE TALKS ABOUT THE I&S RATE AS WELL AT THE SECOND HALF OF THAT MOTION.
THE I&S WILL ACTUALLY DECREASE IN NO NEW REVENUE.
SO OUR TOTAL TAX RATE IS ADDRESSED IN MOTION NUMBER TWO, WHICH IS A DECREASE OF NEGATIVE.
BUT LEGISLATORS DON'T IMPLEMENT ALWAYS THE CLEAREST THINGS.
AND SO IT IS AN INCREASE OF NEGATIVE AMOUNT.
SO IT'S EFFECTIVELY A DECREASE IN TAXES.
SO THERE'S NO NEW THE NO NEW REVENUE RATE.
DOES IT INCLUDE M&O AND INS? YES. THE TOTAL DOES.
OKAY. BUT THEN THEY ALSO PARSE IT OUT.
YES. THE THAT SLIDE 11 TOTALLY TALKS THE EFFECT OF THE M&O TAX RATE.
OKAY. THANK YOU. ANY OTHER QUESTIONS TRUSTEES? TRUSTEE BONE. THANK YOU.
SO I HAVE SOME QUESTIONS ABOUT THE MAXIMUM TAX RATE THAT WE GET FROM TEA.
AND FOR THE PUBLIC, CAN YOU JUST EXPLAIN THE TAX COMPRESSION? I BELIEVE THIS WAS BACK ON ONE OF THE EARLIER SLIDES.
AND CAN YOU EXPLAIN HOW THE MAXIMUM COMPRESSED RATE, WHAT THAT IS, HOW THAT PLAYS INTO THE FORMULA, HOW THAT PLAYS INTO OUR NUMBERS AND HOW IT AFFECTS PROPERTY TAXES THAT THE COMMUNITY PAYS? IN THE STATE OF TEXAS.
THEY TAKE A LOOK AT WHAT THE CHANGE IS IN THE PROPERTY VALUE FROM YEAR TO YEAR.
SO WHEN WE LOOKED AT THE BUDGET ADOPTION IN BACK IN JUNE, THEY HAD PROJECTED THAT OUR PROPERTY VALUES WOULD INCREASE BY A CERTAIN SUM.
AND SO THEY GAVE US A PRELIMINARY MAXIMUM COMPRESSION RATE OF THAT 0.610.
BUT WHEN IT CAME DOWN TO THE CERTIFIED PROPERTY VALUES, THEY DID NOT INCREASE AS PROJECTED.
SO BASED ON HOW TEXAS DOES OR TRIES TO CONTROL LEVIES APPLY TO OUR CITIZENS, THEY USE THE MAXIMUM COMPRESSION RATE TO SORT OF DICTATE HOW MUCH TAXES A TAXING AUTHORITY CAN ADD TO THE LEVY.
DENNIS, CAN YOU ALSO TALK ABOUT, EXCUSE ME, THE MAXIMUM COMPRESSION RATE? WHAT DOES THAT MEAN? WHAT IS THE MEANING? LIKE CAN WE GO LOWER THAN THE MAXIMUM COMPRESSION RATE? THAT'S THE LOWEST AUTHORITY TO CHANGE IT.
WITH THE EXCEPTION OF GOLDEN PENNIES, THAT'S THE MAXIMUM.
OKAY, SO THIS WEEK I WAS LISTENING TO A SENATE HEARING ON, I BELIEVE IT WAS THE THE FINANCE.
AND THEY TALKED ABOUT IN 2023, THEY WERE THE STATE WAS ACTUALLY BUYING DOWN THE SCHOOL DISTRICTS TAXES SO THAT WE COULD PASS THAT ALONG TO OUR COMMUNITY. AND THAT WAS THE SAME YEAR THAT WE WENT OUT FOR VATR AND IT GOT APPROVED BY OUR CITIZENS.
[00:25:07]
BUT I JUST WANT CAN YOU EXPLAIN FROM 2023, WHICH WAS JUST LAST YEAR TO THIS YEAR, REGARDING THE TAX RATE THAT WE HAD, THE TAX RATE THAT WE COULD HAVE HAD IF THE STATE DIDN'T LOWER AND DIDN'T PUT IN MORE MONEY BECAUSE THE STATE DID PUT IN IS THAT TRUE THAT THE STATE PUT IN MORE MONEY TO THE SCHOOL DISTRICTS TO BUY DOWN OUR COMPRESSION? SO INSTEAD OF THE TAXPAYERS MONEY, RIGHT, COLLECTED BY THE SCHOOL DISTRICT, THEY SAID DON'T COLLECT MORE FROM THE LOCAL TAXPAYERS, PROPERTY OR PROPERTY OWNERS, THE STATE, BECAUSE OF ALL THE EXTRA $33 BILLION THEY HAVE IN SURPLUS, SOME OF IT ACTUALLY PART OF RECAPTURE MONEY THEY COLLECTED FROM OUR OWN TAXPAYERS MONEY.THEY SAID, WE'RE GOING TO GIVE YOU THAT MONEY INSTEAD.
NO MORE MONEY, NO NEW MONEY, BUT EXCHANGE IT.
SO DON'T COLLECT FROM OUR TAXPAYERS.
SO THE STATE PUT IN A HIGHER PERCENTAGE.
SO THE LOWER IF YOU REMEMBER, DR.
I THINK WE WENT DOWN BY 12 PENNIES, IF I REMEMBER CORRECTLY.
WE'RE GOING TO LOOK IT UP AGAIN, BUT WE LOWERED ABOUT 12 PENNIES.
AGAIN, BASED ON THAT $30 BILLION SURPLUS.
SO THEY DID NOT GIVE US NEW MONEY.
THEY JUST PRETTY MUCH GAVE THE MONEY.
LEAVE THE MONEY WITH OUR TAXPAYERS DON'T COLLECT AS MUCH.
WE CAN PAY. WE MAKE UP THE DIFFERENCE.
AND WAS THEIR GOAL I MEAN, WAS THEIR GOAL TO GIVE THAT BACK TO THE HOMEOWNERS? THAT'S CORRECT. SO SO THAT IF YOU LOWER IF WE LOWER THE TAX, IF WE LOWER LIKE, WE LOWER IT BY.
AGAIN, I DON'T WANT TO GIVE YOU THE WRONG NUMBER.
I'M GOING TO PULL IT UP RIGHT NOW.
IF WE LOWER BY 12 PENNIES, THAT MEANS THAT WE'RE COLLECTING LESS MONEY FROM OUR TAXPAYERS.
THAT MEANS THAT OUR TAX LEVY WENT DOWN.
CAN YOU GO BACK TO PAGE FIVE? CAN YOU CLARIFY THAT STATEMENT, SINCE WE'RE IN A PUBLIC HEARING OF THAT, OUR TAXPAYERS TAXES ARE NOT GOING DOWN AS MUCH AS THE STATE WANTS.
AND, YOU KNOW, UPWARDS OF HUNDREDS OF DOLLARS WHERE MY FAMILY AND I, YOU KNOW, JUST DID SOME WCAD, YOU KNOW, DIFFERENT PEOPLE'S HOUSES AND, YOU KNOW, WE'RE JUST SAVING A FEW HUNDRED A LITTLE BIT LIKE TINY BIT COMPARED TO WHAT THEY WERE EXPECTING, THE AVERAGE HOUSE.
SO IT WAS A CALCULATION ERROR BY THE STATE, NOT BY SOMETHING THAT WE AS A DISTRICT DID.
NO, ACTUALLY NO, ACTUALLY IT IS.
IT'S BECAUSE WE WENT OUT THE STATE WASN'T EXPECTING SCHOOL DISTRICTS IN THE CITY AND THE COUNTIES TO IMMEDIATELY HOODWINK THE COMMUNITY AND SAY, WE'RE GOING TO GO STEAL THAT MONEY. POINT OF ORDER.
LET'S MAKE SURE WE'RE KEEPING THIS PROFESSIONAL.
NO, I MEAN, THAT'S WHAT THAT'S WHAT'S HAPPENED.
DO YOU KNOW IF THEY'VE BEEN INCREASING TAXES ALSO? THAT'S A GOOD. I'M NOT, WHAT I KNOW IS THAT THE CITY OF ROUND ROCK, IF YOU LIVE IN THE CITY OF ROUND ROCK BECAUSE THEY PASSED A BOND I THINK A YEAR AGO LAST YEAR, I THINK THEY'RE EITHER WOULD BE PROPOSED OR PROPOSING A 2 OR 3 PENNIES INCREASE IN THEIR TAX RATE, THE CITY OF ROUND ROCK I MEAN, I'M NOT SURE.
I'M NOT FAMILIAR ABOUT THE WORK.
HONESTLY, I DON'T KNOW WHAT WILLIAMSON COUNTY IS DOING, BUT I KNOW THE CITY.
I THINK THEY'RE INCREASING IT.
HERE'S THE HERE'S THE WHAT I WANT TO SHARE WITH YOU, DR.
BONE. IF YOU CAN TAKE A LOOK BACK IN 2020, OUR TAX RATE WAS 1.221, THE TOTAL TAX RATE.
AND THEN IT DROPPED 2021 TO 1.136 AND THEN DROPPED AGAIN 2022 1.626.
WHAT IS THAT? I'M DOING THE MATH $0.15, I GUESS.
A LITTLE BIT $0.14 AND SOME CHANGE.
SO WE DROPPED OUR TAX RATE FROM THAT TO 0.919.
[00:30:04]
SO I THINK THAT'S GOOD TO ACKNOWLEDGE.BUT TO GO BACK TO PRESIDENT LANDRUM'S QUESTION, PRESIDENT LANDRUM, WHAT'S HAPPENED AND WHAT I HAVE SEEN IN MY PERSONAL PROPERTY TAXES, WHICH I THINK IS RELEVANT TO MANY PEOPLE IN THIS ROOM, IS THAT MY CITY, MY COUNTY AND MY SCHOOL DISTRICT HAS ACTUALLY INCREASED THE TAXES THAT I PAY COMPARED TO WHAT THE STATE FIGURED I WOULD DO BECAUSE THE STATE DIDN'T SEE.
THEY DIDN'T KNOW SCHOOL DISTRICTS WERE GOING JUST FOR BONDS.
AND THAT'S THAT'S AN INACCURATE STATEMENT WHEN YOU LOOK AT OUR.
SO WHEN YOU LOOK AT NUMBERS, I THINK I THINK THE IT'S IN THE SEMANTICS.
THE STATE DID NOT EXPECT THAT THEY WERE GOING.
BUT THEN THE THE CHILD GOES BACK AND SAYS, NO, I WANT $20 FROM MY PARENTS TOO.
SO YOU'RE RIGHT, IT'S STILL A $20, RIGHT? STILL $20 FROM THE PARENTS, $20 FROM THE STATE.
AND SO WHEN I SAY MORE TAXES, YOU'RE RIGHT THAT $20 IS STILL $20.
BUT NOW THE CHILD HAS MORE MONEY, WHICH IS EXACTLY WHAT'S HAPPENING.
BECAUSE YOU DID SAY WE'RE ACTUALLY INCREASING TAXES WITH THIS TAX RATE.
IS THAT A CORRECT STATEMENT? NO, NO.
WE'RE DECREASING THE TAX RATE BY TWO AND A HALF PENNIES.
BUT THE OTHER OTHER FACTOR IN THAT, DOES THAT MEAN THE PROPERTY VALUES.
AND AS YOU KNOW, WE DON'T CONTROL PROPERTY VALUES.
CAN YOU EXPLAIN THEN IS THAT POSSIBLE THEN THAT THERE ARE PEOPLE SAY THEY DON'T HAVE A HOMESTEAD.
SAY THEY HAVE RENTALS, SAY THEY HAVE A BUSINESS.
WILL THEY BE IT IS POSSIBLE THAT SOME PEOPLE MAY PAY MORE TAXES? YES, BECAUSE THE AVERAGE REMEMBER THE AVERAGE IS 2%.
SO INDIVIDUALLY IF YOUR IF YOUR TAXABLE VALUE ON YOUR HOME IS GREATER THAN TWO OR LESS THAN TWO, BUT WE HAVE TO CALCULATE ON THE AVERAGE TO GET WHAT WE PROJECT, OUR TOTAL REVENUE WOULD BE.
SO ON AN INDIVIDUAL HOMEOWNER IT MAY GO UP RIGHT.
BECAUSE BUT I DON'T KNOW THE TAXABLE VALUE OF EVERYBODY'S HOME.
YOUR RATE THOUGH IS GOING DOWN.
WE'RE COLLECTING MORE TAXES OVERALL THOUGH.
THAT WAS MY QUESTION. LET ME LET ME EXPLAIN SOMETHING.
DENNIS LET ME LET ME TAKE THIS.
SO WHEN WE SAY THERE IS A THERE IS AN INCREASE IN OUR, OUR TAX, THE TAXABLE PROPERTIES.
WE'RE TALKING ABOUT RESIDENTIAL.
WE'RE TALKING ABOUT COMMERCIAL, RIGHT.
WE HAVE A BIG PERCENTAGE OF OUR TAX TAXABLE STUFF IS ACTUALLY LIKE DELL IS HERE, RIGHT? APPLE IS HERE. THERE ARE MANY OTHER ORGANIZATIONS, BIG CORPORATIONS.
AND SO WE COLLECT TAXES FROM THEM AS WELL AS FROM OUR, OUR HOMEOWNERS.
RIGHT. SO WHEN, WHEN, WHEN THE WILLIAMSON COUNTY WCAD SAID THAT THERE'S AN INCREASE BY 2% OVERALL, THEY DON'T NECESSARILY MEAN THAT THE HOMES WILL GO UP BY 2%.
BECAUSE REMEMBER, THERE ARE ALSO NEW DEVELOPMENTS, RIGHT? SO AS THEY BUILD NEW NEW NEW CORPORATION COMING HERE TO OUR AREA OR THERE ARE NEW SUBDIVISION, NEW HOMES ARE BUILT, ARE BUILT WITHIN ROUND ROCK ISD THAT ADDS VALUE TO OUR OVERALL TAXABLE ENTITIES.
AS THEY MOVE AND START THEIR BUSINESS HERE, THEY START PAYING TAXES TO ROUND ROCK ISD.
THANK YOU. SO GOING BACK TO SLIDE, ACTUALLY, CAN WE GO TO SLIDE NINE? BECAUSE I JUST WANTED TO BE CLEAR ON THIS.
BECAUSE I DON'T THINK IT'S ON HERE.
MAYBE I'M MISSING IT, BUT THIS IS FOR SOMEBODY THAT HAS A HOMESTEAD EXEMPTION, RIGHT? THIS IS AFTER THE HOMESTEAD HAS BEEN TAKEN OUT.
SO THAT MAY NOT APPLY TO PEOPLE THAT ARE RENTING A HOME.
SO THE EXEMPTION DON'T QUALIFY.
THEY DON'T QUALIFY FOR EXEMPTIONS.
HOWEVER AGAIN THE IF THEY LAST YEAR THEY DID NOT HAVE EXEMPTION EITHER.
SO IT'S PRETTY MUCH TO COMPARE.
YOU PROBABLY PAY MORE BECAUSE IT'S A IT'S A, IT'S A RENTAL PROPERTY.
[00:35:02]
THAT MEANS THEY PAID MORE BECAUSE THEY DON'T HAVE EXEMPTION.BUT THEIR TAX LEVY WAS HIGHER LAST YEAR.
IT'S GOING TO BE HIGHER THAN THAT THIS YEAR.
BUT THEY WILL SEE SOME SAVING.
NOW THE QUESTION IS WHEN PROPERTY OWNERS WHO HAVE PROPERTY LIKE THE OWNED PROPERTIES FOR LIKE RENTAL PROPERTIES, IT'S GOING TO BE UP TO THOSE RENTERS, TO THOSE FOLKS, TO HOMEOWNERS, IF THEY WANT TO PASS THE SAVING TO THE PEOPLE WHO ARE RENTING OR NOT.
WE CANNOT OBVIOUSLY DETERMINE THAT, BUT IT'S GOING TO BE UP TO THAT HOMEOWNER OR LANDLORD TO MAKE A DECISION WHETHER THEY WANT TO PASS THAT SAVING TO THE PERSON WHO'S RENTING THEIR HOUSE. THANK YOU.
THAT'S WHY I WAS ASKING, BECAUSE IT'S REALLY IT'S VERY IMPORTANT TO ME THAT WE HAVE AFFORDABLE HOUSING IN OUR AREA AND THAT WE DON'T, YOU KNOW, INCREASE TAXES SO MUCH THAT PEOPLE CAN'T PAY. AND WE ARE HEARING THAT.
SO I JUST WANT TO MAKE SURE THAT I UNDERSTOOD THAT.
DR. BONE, TO YOUR POINT, I'M ACTUALLY PROUD IF YOU GO BACK TO THE LAST SLIDE, WHEN YOU COMPARE THE TAXES, THE TAX RATES, I MEAN, I'M ACTUALLY PROUD OF THIS. I MEAN, WE WE ARE A DESTINATION DISTRICT.
WE OFFER SO MANY OPPORTUNITIES FOR OUR STUDENTS.
AND, AND I HAVE A LOT OF RESPECT FOR FOR THE EDUCATORS WHO WORK IN THOSE DISTRICTS.
OUR STUDENTS DO BETTER BECAUSE OF THE COLLECTIVE EFFORTS THAT OUR PARENTS, OUR STUDENTS, OUR STAFF, OUR TEACHERS, OUR PTA BUSINESS PARTNERS ALL COMING TOGETHER, FOR US TO BE ABLE TO DO ALL THE GREAT THINGS.
AND NOW HAVING THE LOWEST TAX RATE IN THE ENTIRE AREA.
THAT'S AMAZING. THAT'S SOMETHING TO CELEBRATE.
I MEAN, AUSTIN ISD ABOUT TO GO FOR EIGHT GOLDEN PENNIES.
NOW ON THE THEY'RE GOING TO GO FOR A VATR.
I'M SORRY RIGHT NOW IN NOVEMBER AND THE I&S IS ABOUT TO GO ANOTHER PENNY.
SO THAT'S WHY LOOK HOW HOW HIGH THAT RATE WILL BE COMPARED TO OURS.
AND SO WE'RE PROUD OF WHAT WE DO HERE.
AND AT THE SAME TIME BE GOOD STEWARDS OF OUR TAXPAYERS MONEY.
BECAUSE I TAKE PRIDE OF LIKE, WE WANT TO DO THAT TO THEM.
WE WANT TO TAKE CARE OF OUR FAMILIES TOO, AND THEIR MONIES TOO.
WE'RE NOT SURE WE ARE GOOD STEWARDS OF THEIR MONEY.
SO THEY ACTUALLY PAY A HUGE PART IN WHAT WE'RE THAT'S THAT'S RIGHT.
AND THAT'S PART OF THEIR RECAPTURE.
WE SENT $150 MILLION LAST YEAR.
I MEAN, IF IT WAS UP TO US, WE WOULD MAYBE WE UNDERSTAND WE HAVE HELP EACH OTHER.
THERE ARE OTHER SCHOOL DISTRICTS MAY NEED SOME MONEY, BUT I THINK I VENTURE TO SAY $150.
THAT'S A LOT OF MONEY FROM OUR TAXPAYERS THAT THEY'RE PAYING.
MAYBE, MAYBE LOWER THAT MONEY IF WE CAN.
CAN YOU CLARIFY THAT NUMBER THOUGH? BECAUSE I'VE BEEN WATCHING THAT NUMBER.
WHAT IS OUR RECAPTURE NUMBER FOR? YOU'RE TALKING ABOUT LAST YEAR AGO, LAST YEAR, $150.
CAN YOU CLARIFY HOW OUR TWO MINUTES IS BEING ACCORDING TO BOARD TIMES BECAUSE LIKE PEOPLE WERE INTERRUPTING ME AND I'M GOING TO ADDRESS THAT TO THE THE CHAIR BECAUSE THAT'S WHAT THE BOARD OPERATING PROCEDURES.
BUT I HAVE NOT BEEN COUNTING WHEN SHE ASKED YOU A QUESTION, OR WHEN WE'RE WAITING ON TIME FOR THEM TO FLIP TO THE SLIDE YEAH, ONLY WHEN YOU'RE WHEN YOU'RE ASKING QUESTIONS.
OKAY. ANY OTHER QUESTIONS TRUSTEES? I WOULD ASK IF I COULD HAVE MAYBE TWO MINUTES.
I DID HAVE TWO EXTRA QUESTIONS.
SO WE'RE GOING TO GO TO ITEM I2 I MEAN I1 TO PASS THIS RATE.
SO WOULD YOU LIKE TO DO THAT THEN.
I REALLY HAVE LIKE ONE QUESTION.
YOU'D HAVE TO MAKE A MOTION FOR THAT SINCE IT'S IN POLICY.
SO YOU'D HAVE TO MAKE A MOTION.
SO I MOVE TO GIVE ME MARY BONE ONE EXTRA MINUTE TO ASK QUESTIONS.
SECOND, WE HAVE A MOTION AND A SECOND.
ANY COMMENTS? SEEING NO LIGHTS ON.
ALL IN FAVOR, RAISE YOUR HAND.
ALL OPPOSED? ABSTAINING. MOTION CARRIES FIVE ONE ONE.
THANK YOU. THE ONLY OTHER QUESTION I HAD WAS ON PAGE FIVE.
AND CAN YOU JUST EXPLAIN IS THAT $5.2 MILLION FOR BOND FEES THERE ON THE $5.2 IS THAT? THAT'S AN ARBITRAGE PAYMENT.
CAN YOU EXPLAIN THAT PAYMENT? ARBITRAGE IS WHEN YOU DON'T EXPEND THE CASH THAT YOU RECEIVE FROM A BOND IN A TIMELY MANNER, YOU HAVE TO PAY ARBITRAGE ON THE FUNDS THAT YOU STILL HAVE.
[00:40:01]
THAT'S THE PROJECTED COST.AND DO YOU KNOW WHAT BOND THAT IS FROM? I'M NOT SURE WE'RE POSTED TO DISCUSS THAT.
WELL IT'S ON I MEAN IT'S IT'S IN PART OF THE PRESENTATION.
I THINK IF IT'S TIED TO THE PRESENTATION, IT'S TIED.
THANK YOU FOR THE CLARIFICATION.
THE 2018 BOND WE HAVEN'T SPENT ENOUGH MONEY, SO WE'RE HAVING TO PAY SOME OF IT BACK.
WELL WE EARNED QUITE A BIT IN INTEREST.
AND SO EVERY FIVE YEARS THEY RECALCULATE.
SO THE BOND WE SOLD, EVEN THOUGH WE PASSED IT IN 2018, WE SOLD A PIECE IN EARLY 2019 AND WE SOLD ANOTHER PIECE LATER, I BELIEVE, IN 2019.
AND SO FIVE YEARS, WE'RE AT OUR FIVE YEAR MARK.
AND SO WE'VE EARNED A LOT OF MONEY ON THE THE CASH PROCEEDS THAT WE'VE HAD THAT WE'VE BEEN SPENDING ON THE PROJECTS THAT WE'VE BEEN DOING, BUT WE'VE WE'VE HIT OUR CAP.
AND WHO DOES THAT GO BACK TO? IT GOES BACK TO THE FEDERAL GOVERNMENT GOES BACK TO THE FEDERAL GOVERNMENT.
AND THANK YOU ALL FOR LETTING ME HAVE THAT QUESTION.
ABSOLUTELY. ANY ADDITIONAL QUESTIONS, TRUSTEES? I DON'T SEE ANY LIGHTS ON.
THANK YOU FOR THE PRESENTATION.
AND WHILE WE'VE DISCUSSED THAT WE DON'T CONTROL ASSESSED VALUE.
IT'S IT'S NICE TO KNOW THAT WITH THE PROJECTIONS OF THE AVERAGE HOMEOWNERS VALUE GOING UP AT 2%, THAT NOT ONLY HAVE WE REDUCED THE RATE, BUT IT LOOKS LIKE THAT ACTUALLY YOU WILL BE PAYING LESS MONEY AS WELL.
AND SO IT HAS NOT ALIGNED THAT WAY AS LONG AS I'VE BEEN ON THE BOARD.
AND THANK YOU FOR THE MANAGEMENT OF OUR FUNDS THAT HAVE ALLOWED US TO WHEN YOU LOOK AT SLIDE OH, WHERE'S THE ONE WITH THE DISTRICTS, ALL THE DIFFERENT DISTRICTS, WE'RE THE ONLY DISTRICT ON THAT LIST THAT PASSED A BALANCED BUDGET.
AND WE ARE ALSO THE ONLY WE ARE THE LOWEST TAXING ENTITY OF ALL OF THOSE.
SO I THINK THAT SPEAKS A LOT TO THE FINANCIAL MANAGEMENT OF OUR DISTRICT.
SO THANK YOU VERY MUCH TO YOU AND YOUR STAFF FOR THE WAY THAT YOU'RE MANAGING THAT.
OKAY. THAT CONCLUDES PUBLIC HEARING.
DO I HAVE ANY ADDITIONAL COMMENTS? OKAY. SEEING PUBLIC SPEAKING, PUBLIC COMMENTS ARE OPEN TILL THE END OF A PUBLIC HEARING, BUT SEEING NO OTHER BODY HAS SIGNED UP, IT IS 6:12 AND WE ARE ADJOURNED.
WE WILL START OUR SECOND MEETING IN ABOUT FIVE MINUTES.
GIVE US A BREAK.
* This transcript was compiled from uncorrected Closed Captioning.