Victoria ISD Disaster relief tax increase July/August 2018

Background

Background Related Expenses Total Construction Costs Depleted Fund Balance

Fund Balance over Time

Tax Code Section 26.08 (a) “When increased expenditure of money by a school district is necessary to respond to a disaster, including a tornado, hurricane, flood, or other calamity, but not including a drought, that has impacted a school district and the governor has requested federal disaster assistance for the area in which the school district is located, an election is not required under this section to approve the tax rate adopted by the governing body for the year following the year in which the disaster occurs.”

Increase M&O* Tax Rate $0.13 per $100 assessed valuation for one year Total M&O* Tax Rate = $1.17 Revenue Increase for VISD = $5,657,652 Tax Relief *Maintenance & Operations tax rate

How will taxes be impacted? Residence Value $ 50,000 $ 100,000 $ 150,000 $ 200,000 $ 250,000 $ 300,000 Total M&O Tax Rate $ 1.04 Current Taxes Due $ 520 $ 1,040 $ 1,560 $ 2,080 $ 2,600 $ 3,120   *2019 Annual Impact $ 65 $ 130 $ 195 $ 260 $ 325 $ 390 *2019 Monthly Impact $ 5.41 $ 10.83 $ 16.25 $ 21.67 $ 27.08 $ 32.50 *Based on Projected Tax Rate Increase of $0.13

When will the tax rate be affected? The increased rate will be on your next tax bill, payable by January 2019. When will the tax rate be affected? The M&O tax rate increase to $1.17 will be for only the 2019 tax year. How long will the tax rate be affected?

Why $0.13? (why not more or less?) Burden on the community Current M&O tax rate is $1.04, House Bill 1 sets a cap at $1.17 Estimated total cost from Hurricane Harvey to the district is approximately $10 Million Tax rate increase will allow VISD to recover approximately $5.6 Million Why $0.13? (why not more or less?)

How much money is required in VISD’s fund balance? TEA recommends at least 2 months of cash reserve in unassigned fund balance. (Approximately $18.5 Million for VISD) Our current Unassigned Fund Balance is $6,670,345

Next Steps? July 23 Community informational meetings: July 30 July 26 Board budget review and discussion: July 26 August 2 Board adoption of the budget: August 23

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