Staats said district staff renegotiated utility contracts for 67 percent of the district. At the June 9 budget workshop, Staats said the reduction in utility expenses is partially offset by increases in utility costs to heat and cool additional portable classrooms.

Freeport Tax Exemption

The board also approved a tax exemption June 18  meant to facilitate business growth in Round Rock.

When it takes effect in the 2015-16 school year, the Freeport tax exemption will apply to companies with inventory that is brought into Texas for manufacturing and exported out of the state within 175 days.

Although the exemption will remove an estimated $6 million from the tax roll in its first year, the Greater Austin and Round Rock chambers helped the school district break even by setting up payments in lieu of taxes, or PILOTs, with the top 26 manufacturers in the district.

The tax exemption is expected to draw more businesses to Round Rock and keep existing businesses from relocating, thereby improving the economy in the city, which would ultimately benefit the school district. The city of Round Rock and Williamson County both exercise the exemption.

Staats said about 40 companies in the district manufacture freeport goods, including Dell. The exemption will likely result in a slight increase in residential property taxes—about $1 per month, he said.