Both Eanes and Lake Travis ISDs set tax rates for fiscal year 2017-18 and ordered Nov. 7 tax ratification elections for district residents to approve or deny an increase of each district’s maintenance and operations, or M&O, portion of the tax rate.
By combining a "penny exchange" (see sidebar) with a drop in the district’s interest and sinking, or I&S, tax rate, Leonard said the board is giving the community a chance to lower its overall tax rate while saving the district about $2.8 million per year. The savings would otherwise be subject to the state’s recapture system, he said.
Through the penny exchange, the board increased the district’s M&O tax rate by 2 “unrecaptureable” cents, or golden pennies, Leonard said. At the same time, the district’s I&S tax rate was lowered by 3.25 cents, decreasing the overall tax rate, he said.
Lake Travis ISD
LTISD set its tax rate Aug. 15, maintaining its total FY 2016-17 tax rate of $1.4075 per $100 valuation. The district executed a penny exchange, moving 2 cents to its M&O tax rate from its I&S.
A successful election would allow the district to retain about $2.1 million dollars that would otherwise be subject to the state recapture program, said Johnny Hill, LTISD assistant superintendent of business, financial and auxiliary services.
“Whether you vote for the tax ratification or not, the district’s overall tax rate will remain at $1.4075 [per $100 valuation],” he said.