Tax rates for homeowners in Katy ISD are expected to be one cent lower when final Harris County tax appraisal numbers are issued at the end of August, according to KISD Chief Financial Officer Christopher J. Smith. At the Aug. 17 board of trustees meeting Smith said property tax appraisal numbers from Fort Bend and Waller counties were 2 percent higher than expected and the same is anticipated from Harris County at the end of the month.

Higher appraisal values mean the district can lower the debt service fund portion of the district tax rate by .01 and still meet debt repayment schedules. Smith estimated the average homeowner would see a $40-50 reduction in taxes under the new rate.

“It happened in large part because of the [lower] interest rate situation we’re in and the debt reduction the board authorized [earlier in the year],” Smith said.

Fiscal year 2014-15 appraisal values set KISD taxes at $1.5266 per $100 valuation for homes within the district. The new tax rate would reduce the debt service fund portion of that bill from .40 to .39, setting the new rate at $1.5166 per $100 valuation.

“We’ve had the same tax rate for eight or nine years, as long as I’ve been here,” Superintendent Alton Frailey said after the meeting.  "But with good fiscal management we can do this."

Early bond repayments and construction cost negotiations that favored the district were key reasons for the reduction, he said.

A public hearing on the proposed budget and tax rate will be held Aug. 25 at 6:30 p.m. at 6301 S. Stadium Lane in the board of trustees meeting room. The final budget is adopted on Aug. 31 and goes into effect Sept. 1. Additional details on the budget, tax rate and taxable assessed values are available at www.katyisd.org.