Lake Travis ISD board of trustees tonight set the fiscal year 2017-18 tax rate, triggering a tax ratification election for Nov. 7.
The board action was the first step in conducting a “penny exchange,” which—with voter approval—would move 2 cents to the district's maintenance and operating tax rate from its debt service tax rate “to maximize the state finance system,” said Johnny Hill, the LTISD assistant superintendent of business.
A successful tax ratification election would allow the district retain about $2.1 million dollars that
would otherwise be subject to the state recapture program, without increasing the overall tax rate.
“Whether you vote for the tax ratification or not, the district’s overall tax rate will remain at $1.4075 [per $100 valuation],” Hill said.
With a successful election, voters would ratify the maintenance and operating tax rate of $1.06 per $100 valuation, Hill said. This would trigger a decrease in the debt service tax rate to $0.3475 per $100 valuation, maintaining last year's total tax rate, he said.
If the election were to fail, however, by law the district would roll back the maintenance and operating tax rate to its 2016-17 level of $1.04 per $100 valuation, and the debt service tax rate would stay at the 2016-17 rate of $0.3675 per $100 valuation, Hill said.
The board also approved the fiscal year 2017-18 budget, which reflected the potential ratification of the tax rate, he said. The budget estimated revenue for the fiscal year as $161,663,233 and expenditures as the same amount.
“It is a balanced budget,” Hill said. “The last time the board adopted a balanced budget was 10 years ago, for [fiscal year] 2007-08.”