[B. CALL TO ORDER] [00:00:07] GOOD EVENING. IT IS 5:30, AND THIS MEETING OF THE ROUND ROCK INDEPENDENT SCHOOL DISTRICT BOARD OF TRUSTEES PUBLIC HEARING ON THE 2026-2027 PROPOSED TAX RATE IS CALLED TO ORDER. IN ATTENDANCE TONIGHT, WE HAVE TRUSTEE ZÁRATE, TRUSTEE LANDRUM, TRUSTEE WEIR, TRUSTEE MARKUM, TRUSTEE ROSS AND TRUSTEE WEI. PLEASE STAND FOR THE PLEDGE. I PLEDGE ALLEGIANCE TO. HONOR THE TEXAS FLAG. OKAY. WE DO NOT HAVE ANY PUBLIC COMMENT FOR THIS PORTION OF THE NIGHT, SO WE WILL JUMP RIGHT INTO AGENDA ITEM E PUBLIC HEARING 2026-2027 [E. PUBLIC HEARING] PROPOSED TAX RATE AND I WILL TURN IT OVER TO DOCTOR AZAIEZ. GOOD EVENING EVERYONE. PRESIDENT MARKUM, BOARD MEMBERS, COMMUNITY MEMBERS AND STAFF. WELL WELCOME BACK OUR SUMMER. I HOPE YOUR SUMMER WASN'T AS SHORT AS OURS, BUT I KNOW OUR STAFF WORK REALLY HARD OVER THE SUMMER TO MAKE SURE OUR SCHOOLS, OUR BUILDINGS ARE READY TO WELCOME OUR TEACHERS, STAFF AND ALSO STUDENTS. AS YOU KNOW, OUR FIRST DAY IS NEXT WEEK ON THE 19TH. WELL, TONIGHT WE'RE GOING TO BE TALKING ABOUT PROPOSED TAX RATE. AND WITH US IS OUR NEW CFO. I DON'T KNOW IF YOU HAD A CHANCE TO MEET LUDIVINA CANSINO. MS. CANSINO COMES TO US WITH A LOT OF EXPERIENCE. SO THIS WILL BE OUR FIRST PRESENTATION. AND ALONG WITH HER, WE HAVE OUR FINANCE, OUR FINANCE DIRECTOR RHONDA, YOU'RE PROBABLY FAMILIAR WITH RHONDA. SHE DID SEVERAL PRESENTATIONS BEFORE, SO WITH NO MORE DELAY, IF YOU GUYS CAN TAKE IT OVER. THANK YOU. THANK YOU. GOOD EVENING EVERYONE. THANK YOU FOR BEING HERE TONIGHT. THE PURPOSE OF THIS PRESENTATION IS TO REVIEW THE PROPOSED TAX RATE FOR THE 2026 TAX YEAR AND EXPLAINED HOW THE RATE COMPARES TO THE PRECEDING YEAR, AND AS WELL AS THE IMPACT ON THE TAXPAYERS. WE ARE HAVING TECHNICAL DIFFICULTIES OH, THERE WE GO. ALL RIGHT. SO TONIGHT I'LL WALK YOU THROUGH TWO COMPONENTS OF THE DISTRICT'S TAX RATE THE M&O OR THE MAINTENANCE AND OPERATIONS AND THE INTEREST AND SINKING OR THE I&S TAX RATE. THE M&O PORTION OF THE TAX RATE IS WHAT WE USE TO OPERATE THE DISTRICT FOR OUR DAY TO DAY OPERATIONS, WHICH COVER MOST OF OUR SALARIES, SUPPLIES, TRANSPORTATION COSTS, UTILITIES AND STUDENT PROGRAMS. AND THE I&S PORTION IS USED TO PAY DOWN OUR DEBT SERVICE ON BONDS APPROVED BY THE TAXPAYERS OR BY THE VOTERS. SO HERE WE'LL FIRST DISCUSS THE MAINTENANCE AND OPERATIONS TAX RATE. WHAT DO YOU HAVE HERE IN THIS TABLE IS A COMPARISON OF THE PRECEDING YEAR TAX YEAR 25. AND THE CURRENT ONE IS TAX YEAR 26. SO THE TAX RATE FOR M&O IS COMPRISED OF THREE DIFFERENT CATEGORIES. THE FIRST ONE IS THE MAXIMUM COMPRESSED TAX RATE OR THE MCR WHICH IS ASSIGNED BY TEA. AND THEN WE HAVE THE GOLDEN PENNIES. AND THEN WE HAVE ANYTHING ADDITIONAL ABOVE THE EIGHT GOLDEN PENNIES ARE CALLED COPPER PENNIES. AND THEN THAT MAKES UP THE TOTAL M&O TAX RATE. SO FOR LAST YEAR THE MAXIMUM COMPRESSED TAX RATE WAS 0.6301. AND FOR THIS YEAR THERE IS A SLIGHT DECREASE TO 0.6254. FOR GOLDEN PENNIES LAST YEAR THE DISTRICT HAD EIGHT GOLDEN PENNIES. AND FOR THIS YEAR WE KEEP THE SAME EIGHT GOLDEN PENNIES. AND WHAT WE HAVE NEW FROM THIS YEAR THAT WE DIDN'T HAVE LAST YEAR IS THAT WE DO HAVE AN ADDITIONAL SIX PENNIES BEING PROPOSED COPPER PENNIES BEING PROPOSED. SO THAT WILL BRING THE TOTAL TAX RATE TO 7654 COMPARED TO LAST YEAR AT 7101. THE VOTER APPROVAL TAX RATE IS THE FIRST TWO PENNIES, WHICH IS A 6254 AND THE EIGHT GOLDEN PENNY. SO THOSE ARE THE 7054. BECAUSE THE PROPOSED M&O TAX RATE IS GOING ABOVE THE VOTER APPROVAL TAX RATE, THAT AUTOMATICALLY TRIGGERS A VOTER APPROVAL TAX RATE ELECTION. SO THE IMPACT THAT IT HAS ON THE GENERAL FUND COMPARISON HERE IS OUR CURRENT BUDGET AS ADOPTED DURING THE MONTH OF JUNE. YOU SEE THAT INCREASE IN OUR CURRENT TAX COLLECTIONS FROM $374.7 MILLION TO $505.9 MILLION. [00:05:01] THAT IS AN ADDITIONAL $31.2 MILLION IN ADDITIONAL TAX COLLECTIONS. AND THAT IS DUE TO THOSE SIX ADDITIONAL COPPER PENNIES. THE STATE REVENUE REMAINS THE SAME. SO DOES FEDERAL. SO TOTAL REVENUE AT THE BOTTOM, YOU SEE IS 486. THAT WAS CURRENTLY ADOPTED TO IF THE VATRE IS APPROVED AND THIS TAX RATE IS APPROVED, IT WOULD GO UP TO $517.5 MILLION. ON THE EXPENDITURE SIDE, THE IMPACT THAT THESE ADDITIONAL SIX COPPER PENNIES HAVE IS THAT BECAUSE WE ARE A PROPERTY, WEALTHY SCHOOL DISTRICT, IT WILL GENERATE RECAPTURE A RECAPTURE PAYMENT. IF YOU LOOK THERE AT TOTAL EXPENDITURES IT'S AT CURRENTLY ADOPTED BUDGET, IT'S AT $486.2 MILLION, AND IT WILL GO UP TO $498 MILLION. AND THAT IS IT'S DUE TO AN INCREASE IN SALARIES AND BENEFITS OF $12 MILLION. THE REST OF THAT WILL BE IN A RECAPTURE. IF YOU NOTICE, IN THE ADOPTED BUDGET, WE WERE NOT ANTICIPATING HAVING TO MAKE A RECAPTURE PAYMENT, BUT BECAUSE THOSE SIX COPPER PENNIES ARE SUBJECT TO RECAPTURE, THEY WILL INCREASE THAT TO $15 MILLION WITH A TRANSFER OUT TO HEALTH INSURANCE AT $4,169,000. BRINGING THE TOTAL OF RECAPTURE AND TRANSFER OUT TO $19.3 MILLION. SO IN SUMMARY, AND THE IMPACT IT HAS ON THE BUDGET, IF YOU SEE THEIR REVENUES, THEY WILL INCREASE TO THE $517.5 MILLION. THE EXPENDITURES AT 498 WITH A RECAPTURE PAYMENT OF $15.2 MILLION AND A TRANSFER OUT OF ALMOST 4.2. LEAVING US WITH A WITH A BALANCED BUDGET. FOR THE INTEREST AND SINKING PORTION OF THE TAX RATE. WE HAVE THE I&S CURRENTLY AT 0.1830, AND IT IS PROPOSED TO REMAIN THE SAME. IT WILL GENERATE A LITTLE BIT OF ADDITIONAL REVENUES COMPARED TO WHAT WE HAD BEFORE, BECAUSE WHEN IT WAS ADOPTED, WE DID NOT HAVE CERTIFIED PROPERTY VALUES. SINCE THEN WE RECEIVED CERTIFIED PROPERTY VALUE, SO THERE IS A SLIGHT INCREASE ADJUSTMENT THERE ON THE LOCAL REVENUES. IT WILL GENERATE ABOUT $3 MILLION IN A SURPLUS. SO HERE IS A TOTAL TAX RATE COMPARISON. WHEN WE LOOK AT THE M&O TAX RATE AT LAST YEAR 0.7101 THIS YEAR AT 7654 FOR THE I&S WE'RE REMAINING THE SAME. AND THE TOTAL TAX RATE COMPARED TO LAST YEAR IS 8931 AND 9484. AND IT HAS AN INCREASE OF FIVE AND A HALF PENNIES. WHEN LOOKING AT THE TAX LEVY COMPARISON AND THE IMPACT IT HAS ON OUR TAX. TAXPAYERS WE HAVE HERE THE TAXABLE. TOTAL TAXABLE. EXCUSE ME, TOTAL TAX RATE OF THE 8931 COMPARED TO WHAT IS BEING PROPOSED WITH THE 9484 FOR A HOME VALUED AT 500,000. IT LEAVES A TAX LEVY OF 4,466 AND 4,742. WITH THE CURRENT. WITH THE PROPOSED TAX RATE FOR A DIFFERENCE OF $276. AND THAT CONCLUDES MY PRESENTATION. ARE THERE ANY QUESTIONS? TRUSTEE LANDRUM. SO JUST CLARIFICATION. I'M PRETTY SURE I KNOW THE ANSWER TO THIS. BUT ON SLIDE. THERE'S NO SLIDE NUMBERS ON THIS. IF YOU GO TO THE TOTAL TAX RATE COMPARISON PAGE. TOTAL TAX RATE. YEP. RIGHT THERE. THIS IS ASSUMING THAT THE VATRE VOTE GOES THROUGH TONIGHT. CORRECT. AND THAT THE VOTER, THE VOTERS APPROVE THE VATRE IN NOVEMBER. CORRECT. OKAY. SO WHAT, IF ANY, ARE THERE ANY IMPLICATIONS FOR ADOPTING A TAX RATE AT 0.9484 IF THE VATRE DOESN'T PASS? IS THERE? IT WILL REVERT BACK TO. DELETE. WE WOULD DECREASE THE SIX COPPER PENNIES THAT WE'RE ADDING. OKAY. YES, MA'AM. SO IT WOULD ACTUALLY RESULT IN A LOWER TAX. MEETING WILL BE APPROVING A TAX RATE BASICALLY UP TO 0.9484? YES MA'AM. AND WE DON'T HAVE TO GO ALL THE WAY UP TO THAT IF THE VATRE FAILS. CORRECT. IS THAT THE. OKAY. YES. THANK YOU VERY MUCH FOR THAT CLARIFICATION. [00:10:02] I DON'T SEE ANYONE ELSE IN THE QUEUE UNLESS BUTTONS AREN'T WORKING. I JUST WANT TO MAKE ONE LAST CHECK FOR PUBLIC COMMENT. WE'RE GOOD? OKAY. IT LOOKS LIKE. THAT'S IT. THANK YOU SO MUCH. ALL RIGHT. THANK YOU. WE DON'T HAVE ANYTHING ELSE ON THE AGENDA. WE WILL START OUR NEXT MEETING AT 6:00 P.M. IT IS 5:41, AND WE ARE ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.