Updated 2:16 p.m. CST Sept. 4

For the third consecutive year the Leander ISD school board voted to keep a property tax rate of $1.51187 per $100 of valuation during its budget and tax rate hearing Aug. 28.

The tax rate is composed of $1.04 per $100 of valuation for maintenance and operations and $0.47187 per $100 of valuation for interest and sinking, or debt repayment. The average LISD residence valued at $271,330 will owe the district $4,102.16 per year, or $341.85 per month.

Board members debated raising the tax rate to pay off debt earlier than scheduled, which would create additional taxing and construction capacity in the future. Trustee Will Streit said taxing 50 cents for debt repayment, for a total tax rate of $1.54 per $100 of valuation, would allow the district to pay off an additional $4.4 million in debt during the 2014–15 school year. He also recommended using $4 million savings to pay off additional bonded debt.

Streit and board Vice President Aaron Johnson voted against the tax rate, which was approved on a vote of 5–2.

Trustee Don Hisle said because most homeowners are experiencing a property value increase of 10 percent or more, a higher tax rate would have a negative impact on residents and potentially future business.

"Let's try to help the community a little bit and not raise it as much this year. Now I may have a different opinion next year," he said. "The more we raise our taxes, the less opportunity [businesses] are going to see here. We could lose commercial properties and development if they can go somewhere else where it's cheaper like in Austin."

The tax rate supports a budget including $258 million for LISD operations as well as $74 million for debt service; the district's $13 million food service budget is self-sustaining. The general fund, or operating budget, is 4.5 percent more than the 2013–14 budget and reflects funding for 1,382 more students.

Editor's note: This story was updated from its original version to correct tax figures and the annual tax amount paid by an average LISD residence.