This total rate is made up of a $0.8546 maintenance and operations, or M&O, rate, and a $0.208 interest and sinking, or I&S, rate that goes toward debt service. These combined rates will fund the district's budget as well as cover its debt payments.
While the proposed rate is $0.071, or 6.26%, lower than the rate of $1.1336 ratified for fiscal year 2021-22, it will result in a 3.1% higher tax bill than the rate approved for the previous fiscal year as taxable property value in RRISD has increased by 8.8%, according to the district.
The board approved a budget in June based on the assumption of a 13% increase in taxable value, according to the district, as certified values from the Williamson and Travis central appraisal districts were not yet available. However, the higher values did not impact the maximum compressed rate, a base M&O rate set by the state. This rate for FY 2022-23 is $0.8046 with the district adding $0.05 in golden pennies. Revenue generated by golden pennies in a district's tax rate are not subject to recapture, or "Robin Hood" payments, of which RRISD is expected to make over $70 million to the state for FY 2022-23.
Taxpayers with a home value of $440,000 can expect to see their annual tax bill increase by $141 in 2023 if the proposed rate is ratified, district documents show.
