However, district information states the board will ultimately adopt a lower rate in August or September due to the growth of taxable values within PfISD in addition to other proposed measures likely to move forward later this summer.
"We are using last year's tax rate because that is the maximum tax rate that we believe that we will set for the district," PfISD Chief Financial Officer Jennifer Land said.
Place 5 Trustee Brian Allen clarified that the tax rate approved July 14 means the district cannot later propose a higher rate.
"I want the community to understand that this is the max rate," Allen said.
One topic of discussion at the meeting involved the initiation of a voter approved tax ratification election, or VATRE, that Land said would help reduce the looming multimillion-dollar deficit projected within the 2022-23 PfISD budget.
During a June board meeting, Land projected roughly $271.4 million in expenses for the next school year, which would result in a roughly $11.3 million deficit overall without a VATRE and less than $4 million with a specific VATRE.
In June, Land explained there are several different scenarios within a VATRE that would result in varying deficits for the district.
At the July meeting, Land said the scenario district staff is preparing to present to the board in August involves a decrease of about $0.10 within the interest and sinking portion of the tax rate.
Land explained that even though that specific scenario would lower the total district tax rate from $1.338 to about $1.264, it would also allow a shift of funds called "golden pennies" that would not be subject to state recapture, thereby resulting in more money for the district and a reduced tax bill for property owners.
"It would provide $7.6 million in net additional revenue to the school district," Land said. "And, with this rate, it's actually $40 less to the average homeowner per year."
District officials said the deadline to set the tax rate and call a VATRE is Aug. 22, but during the July meeting the board set the date to approve the budget and set the tax rate for Aug.18.
