District Chief Financial Officer Amber Petree presented high-level information about the possibility of a VATRE to the board of trustees during its Nov. 14 meeting. A VATRE is an election required by the state if a district is going to ask voters to approve modifying the tax rate to increase revenue. The district held its last VATRE in September 2016.
Friendswood ISD adopted a tax rate of $1.2094 per $100 valuation for FY 2022-23. With an estimated 7% increase in property values, the district’s tax rate for FY 2023-24 would be $1.195 per $100 valuation. If approved, the VATRE would increase the FY 2023-24 rate to $1.2526 per $100 valuation.
“This is just a first glance,” Petree said.
In FY 2022-23, the board adopted a budget deficit of $3.1M. The district projects a $4.1M deficit for FY 2023-24’s budget, which includes a 2% salary increase and salary band roll-ups. The increased rate would raise a net revenue of $1.7M and reduce the projected deficit to under $2.5M.
The district wouldn’t decide on whether to hold the VATRE until August 2023, Petree said. The state legislative session and property appraisals still stand between now and the time when the district would need to decide if a VATRE is necessary.
“There’s going to be a lot of things changed between now and the time that we really have to make a decision on this,” Superintendent Thad Roher said.
If it decides to hold a VATRE, the district would hold an open meeting Aug. 21, 2023 and request the adoption of the budget and tax rate and order the election. The VATRE would then be held on Nov. 7, 2023 during the uniform election.
